Document:

Exhibit 10.20

                          FOREIGN EXCHANGE AND OPTIONS

                                MASTER AGREEMENT
                                     (FEOMA)

      MASTER AGREEMENT dated as of September 27, 2004 by and between Morgan
Stanley Capital Group Inc., a Delaware corporation and Morgan Stanley Spectrum
Strategic, L.P., a Delaware Limited Partnership.

SECTION 1.  DEFINITIONS
            -----------

      Unless otherwise required by the context, the following terms shall have
the following meanings in the Agreement:

      "Agreement" has the meaning given to it in Section 2.2.

      "American Style Option" means an Option which may be exercised on any
Business Day up to and including the Expiration Time.

      "Base Currency", as to a Party, means the Currency agreed to as such in
relation to it in Part VII of the Schedule.

      "Business Day" means for purposes of: (i) Section 3.2, a day which is a
Local Banking Day for the applicable Designated Office of the Buyer; (ii)
Section 5.1 and the definition of American Style Option, a day which is a Local
Banking Day for the applicable Designated Office of the Seller; (iii) clauses
(i), (viii) and (xii) of the definition of Event of Default, a day which is a
Local Banking Day for the Non-Defaulting Party; (iv) solely in relation to
delivery of a Currency, a day which is a Local Banking Day in relation to that
Currency; and (v) any other provision of the Agreement, a day which is a Local
Banking Day for the applicable Designated Offices of both Parties; provided,
however, that neither Saturday nor Sunday shall be considered a Business Day for
any purpose.

      "Buyer" means the owner of an Option.

      "Call" means an Option entitling, but not obligating (except upon
exercise), the Buyer to purchase from the Seller at the Strike Price a specified
quantity of the Call Currency.

      "Call Currency" means the Currency agreed to as such at the time an Option
is entered into, as evidenced in a Confirmation.

      "Close-Out Amount" has the meaning given to it in Section 8.1.

      "Close-Out Date" means a day on which, pursuant to the provisions of
Section 8.1, the Non-Defaulting Party closes out Currency Obligations and/or
Options or such close-out occurs automatically.

      "Closing Gain", as to the Non-Defaulting Party, means the difference
described as such in relation to a particular Value Date under the provisions of
Section 8.1.

      "Closing Loss", as to the Non-Defaulting Party, means the difference
described as such in relation to a particular Value Date under the provisions of
Section 8.1.

      "Confirmation" means a writing (including telex, facsimile or other
electronic means from which it is possible to produce a hard copy) evidencing an
FX Transaction or an Option, and specifying:

      (A) in the case of an FX Transaction, the following information:

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            (i)     the Parties thereto and the Designated Offices through which
                    they are respectively acting,

            (ii)    the amounts of the Currencies being bought or sold and by
                    which Party,

            (iii)   the Value Date, and

            (iv)    any other term generally included in such a writing in
                    accordance with the practice of the relevant foreign
                    exchange market; and

      (B) in the case of an Option, the following information:

            (i)     the Parties thereto and the Designated Offices through which
                    they are respectively acting,

            (ii)    whether the Option is a Call or a Put,

            (iii)   the Call Currency and the Put Currency that are the subject
                    of the Option and their respective quantities,

            (iv)    which Party is the Seller and which is the Buyer,

            (v)     the Strike Price,

            (vi)    the Premium and the Premium Payment Date,

            (vii)   the Expiration Date,

            (viii)  the Expiration Time,

            (ix)    whether the Option is an American Style Option or a European
                    Style Option, and

            (x)     such other matters, if any, as the Parties may agree.

      "Credit Support" has the meaning given to it in Section 8.2.

      "Credit Support Document", as to a Party (the "first Party"), means a
guaranty, hypothecation agreement, margin or security agreement or document, or
any other document containing an obligation of a third party ("Credit Support
Provider") or of the first Party in favor of the other Party supporting any
obligations of the first Party under the Agreement.

      "Credit Support Provider" has the meaning given to it in the definition of
Credit Support Document.

      "Currency" means money denominated in the lawful currency of any country
or the Ecu.

      "Currency Obligation" means any obligation of a Party to deliver a
Currency pursuant to an FX Transaction, the application of Section 6.3(a) or
(b), or an exercised Option (except, for the purposes of Section 8.1 only, one
that is to be settled at its In-the-Money Amount under Section 5.5).

      "Currency Pair" means the two Currencies which potentially may be
exchanged in connection with an FX Transaction or upon the exercise of an
Option, one of which shall be the Put Currency and the other the Call Currency.

      "Custodian" has the meaning given to it in the definition of Insolvency
Proceeding.

      "Defaulting Party" has the meaning given to it in the definition of Event
of Default.

      "Designated Office(s)", as to a Party, means the office or offices
specified in Part II of the Schedule.

      "Effective Date" means the date of this Master Agreement.

      "European Style Option" means an Option for which Notice of Exercise may
be given only on the Option's Expiration Date up to and including the Expiration
Time, unless otherwise agreed.

      "Event of Default" means the occurrence of any of the following with
respect to a Party (the "Defaulting Party", the other Party being the
"Non-Defaulting Party"):

      (i) the Defaulting Party shall (A) default in any payment when due under
the Agreement (including, but not limited to, a Premium payment) to the
Non-Defaulting Party with respect to any Currency Obligation or Option and such

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failure shall continue for two (2) Business Days after the Non-Defaulting Party
has given the Defaulting Party written notice of non-payment, or (B) fail to
perform or comply with any other obligation assumed by it under the Agreement
and such failure is continuing thirty (30) days after the Non-Defaulting Party
has given the Defaulting Party written notice thereof;

      (ii) the Defaulting Party shall commence a voluntary Insolvency Proceeding
or shall take any corporate action to authorize any such Insolvency Proceeding;

      (iii) a governmental authority or self-regulatory organization having
jurisdiction over either the Defaulting Party or its assets in the country of
its organization or principal office (A) shall commence an Insolvency Proceeding
with respect to the Defaulting Party or its assets or (B) shall take any action
under any bankruptcy, insolvency or other similar law or any banking, insurance
or similar law or regulation governing the operation of the Defaulting Party
which may prevent the Defaulting Party from performing its obligations under the
Agreement as and when due;

      (iv) an involuntary Insolvency Proceeding shall be commenced with respect
to the Defaulting Party or its assets by a person other than a governmental
authority or self-regulatory organization having jurisdiction over either the
Defaulting Party or its assets in the country of its organization or principal
office and such Insolvency Proceeding (A) results in the appointment of a
Custodian or a judgment of insolvency or bankruptcy or the entry of an order for
winding-up, liquidation, reorganization or other similar relief, or (B) is not
dismissed within five (5) days of its institution or presentation;

      (v) the Defaulting Party is bankrupt or insolvent, as defined under any
bankruptcy or insolvency law applicable to it;

      (vi) the Defaulting Party fails, or shall otherwise be unable, to pay its
debts as they become due;

      (vii) the Defaulting Party or any Custodian acting on behalf of the
Defaulting Party shall disaffirm, disclaim or repudiate any Currency Obligation
or Option;

      (viii) any representation or warranty made or given or deemed made or
given by the Defaulting Party pursuant to the Agreement or any Credit Support
Document shall prove to have been false or misleading in any material respect as
at the time it was made or given or deemed made or given and one (1) Business
Day has elapsed after the Non-Defaulting Party has given the Defaulting Party
written notice thereof;

      (ix) the Defaulting Party consolidates or amalgamates with or merges into
or transfers all or substantially all its assets to another entity and (A) the
creditworthiness of the resulting, surviving or transferee entity is materially
weaker than that of the Defaulting Party prior to such action, or (B) at the
time of such consolidation, amalgamation, merger or transfer the resulting,
surviving or transferee entity fails to assume all the obligations of the
Defaulting Party under the Agreement by operation of law or pursuant to an
agreement satisfactory to the Non-Defaulting Party;

      (x) by reason of any default, or event of default or other similar
condition or event, any Specified Indebtedness (being Specified Indebtedness of
an amount which, when expressed in the Currency of the Threshold Amount, is in
aggregate equal to or in excess of the Threshold Amount) of the Defaulting Party
or any Credit Support Provider in relation to it: (A) is not paid on the due
date therefor and remains unpaid after any applicable grace period has elapsed,
or (B) becomes, or becomes capable at any time of being declared, due and
payable under agreements or instruments evidencing such Specified Indebtedness
before it would otherwise have been due and payable;

      (xi) the Defaulting Party is in breach of or default under any Specified
Transaction and any applicable grace period has elapsed, and there occurs any
liquidation or early termination of, or acceleration of obligations under, that
Specified Transaction or the Defaulting Party (or any Custodian on its behalf)
disaffirms, disclaims or repudiates the whole or any part of a Specified
Transaction;

      (xii) (A) any Credit Support Provider of the Defaulting Party or the
Defaulting Party itself fails to comply with or perform any agreement or
obligation to be complied with or performed by it in accordance with the
applicable Credit Support Document and such failure is continuing after any
applicable grace period has elapsed; (B) any Credit Support

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Document relating to the Defaulting Party expires or ceases to be in full force
and effect prior to the satisfaction of all obligations of the Defaulting Party
under the Agreement, unless otherwise agreed in writing by the Non-Defaulting
Party; (C) the Defaulting Party or any Credit Support Provider of the Defaulting
Party (or, in either case, any Custodian acting on its behalf) disaffirms,
disclaims or repudiates, in whole or in part, or challenges the validity of, any
Credit Support Document; (D) any representation or warranty made or given or
deemed made or given by any Credit Support Provider of the Defaulting Party
pursuant to any Credit Support Document shall prove to have been false or
misleading in any material respect as at the time it was made or given or deemed
made or given and one (1) Business Day has elapsed after the Non-Defaulting
Party has given the Defaulting Party written notice thereof; or (E) any event
set out in (ii) to (vii) or (ix) to (xi) above occurs in respect of any Credit
Support Provider of the Defaulting Party; or

      (xiii) any other condition or event specified in Part IX of the Schedule
or in Section 11.14 if made applicable to the Agreement in Part XI of the
Schedule.

      "Exercise Date", in respect of any Option, means the day on which a Notice
of Exercise received by the applicable Designated Office of the Seller becomes
effective pursuant to Section 5.1.

      "Expiration Date", in respect of any Option, means the date agreed to as
such at the time the Option is entered into, as evidenced in a Confirmation.

      "Expiration Time", in respect of any Option, means the latest time on the
Expiration Date on which the Seller must accept a Notice of Exercise as agreed
to at the time the Option is entered into, as evidenced in a Confirmation.

      "FX Transaction" means any transaction between the Parties for the
purchase by one Party of an agreed amount in one Currency against the sale by it
to the other of an agreed amount in another Currency, both such amounts either
being deliverable on the same Value Date or, if the Parties have so agreed in
Part VI of the Schedule, being cash-settled in a single Currency, which is or
shall become subject to the Agreement and in respect of which transaction the
Parties have agreed (whether orally, electronically or in writing): the
Currencies involved, the amounts of such Currencies to be purchased and sold,
which Party will purchase which Currency and the Value Date.

      "In-the-Money Amount" means (i) in the case of a Call, the excess of the
Spot Price over the Strike Price, multiplied by the aggregate amount of the Call
Currency to be purchased under the Call, where both prices are quoted in terms
of the amount of the Put Currency to be paid for one unit of the Call Currency;
and (ii) in the case of a Put, the excess of the Strike Price over the Spot
Price, multiplied by the aggregate amount of the Put Currency to be sold under
the Put, where both prices are quoted in terms of the amount of the Call
Currency to be paid for one unit of the Put Currency.

      "Insolvency Proceeding" means a case or proceeding seeking a judgment of
or arrangement for insolvency, bankruptcy, composition, rehabilitation,
reorganization, administration, winding-up, liquidation or other similar relief
with respect to the Defaulting Party or its debts or assets, or seeking the
appointment of a trustee, receiver, liquidator, conservator, administrator,
custodian or other similar official (each, a "Custodian") of the Defaulting
Party or any substantial part of its assets, under any bankruptcy, insolvency or
other similar law or any banking, insurance or similar law governing the
operation of the Defaulting Party.

      "LIBOR", with respect to any Currency and date, means the average rate at
which deposits in the Currency for the relevant amount and time period are
offered by major banks in the London interbank market as of 11:00 a.m. (London
time) on such date, or, if major banks do not offer deposits in such Currency in
the London interbank market on such date, the average rate at which deposits in
the Currency for the relevant amount and time period are offered by major banks
in the relevant foreign exchange market at such time on such date as may be
determined by the Party making the determination.

      "Local Banking Day" means (i) for any Currency, a day on which commercial
banks effect deliveries of that Currency in accordance with the market practice
of the relevant foreign exchange market, and (ii) for any Party, a day in the
location of the applicable Designated Office of such Party on which commercial
banks in that location are not authorized or required by law to close.

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      "Master Agreement" means the terms and conditions set forth in this Master
Agreement, including the Schedule.

      "Matched Pair Novation Netting Office(s)", in respect of a Party, means
the Designated Office(s) specified in Part V of the Schedule.

      "Non-Defaulting Party" has the meaning given to it in the definition of
Event of Default.

      "Notice of Exercise" means telex, telephonic or other electronic
notification (excluding facsimile transmission) providing assurance of receipt,
given by the Buyer prior to or at the Expiration Time, of the exercise of an
Option, which notification shall be irrevocable.

      "Novation Netting Office(s)", in respect of a Party, means the Designated
Office(s) specified in Part V of the Schedule.

      "Option" means a currency option which is or shall become subject to the
Agreement.

      "Parties" means the parties to the Agreement, including their successors
and permitted assigns (but without prejudice to the application of clause (ix)
of the definition of Event of Default); and the term "Party" shall mean
whichever of the Parties is appropriate in the context in which such expression
may be used.

      "Premium", in respect of any Option, means the purchase price of the
Option as agreed upon by the Parties, and payable by the Buyer to the Seller
thereof.

      "Premium Payment Date", in respect of any Option, means the date on which
the Premium is due and payable, as agreed to at the time the Option is entered
into, as evidenced in a Confirmation.

      "Proceedings" means any suit, action or other proceedings relating to the
Agreement, any FX Transaction or any Option.

      "Put" means an Option entitling, but not obligating (except upon
exercise), the Buyer to sell to the Seller at the Strike Price a specified
quantity of the Put Currency.

      "Put Currency" means the Currency agreed to as such at the time an Option
is entered into, as evidenced in a Confirmation.

      "Schedule" means the Schedule attached to and part of this Master
Agreement, as it may be amended from time to time by agreement of the Parties.

      "Seller" means the Party granting an Option.

      "Settlement Date" means, in respect of: (i) an American Style Option, the
Spot Date of the Currency Pair on the Exercise Date of such Option, and (ii) a
European Style Option, the Spot Date of the Currency Pair on the Expiration Date
of such Option; and, where market practice in the relevant foreign exchange
market in relation to the two Currencies involved provides for delivery of one
Currency on one date which is a Local Banking Day in relation to that Currency
but not to the other Currency and for delivery of the other Currency on the next
Local Banking Day in relation to that other Currency, "Settlement Date" means
such two (2) Local Banking Days.

      "Settlement Netting Office(s)", in respect of a Party, means the
Designated Office(s) specified in Part V of the Schedule.

      "Specified Indebtedness" means any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money, other than in respect of deposits received.

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      "Specified Transaction" means any transaction (including an agreement with
respect thereto) between one Party to the Agreement (or any Credit Support
Provider of such Party) and the other Party to the Agreement (or any Credit
Support Provider of such Party) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity
linked swap, equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap transaction, floor transaction, collar
transaction, currency swap transaction, cross-currency rate swap transaction,
currency option or any other similar transaction (including any option with
respect to any of these transactions) or any combination of any of the
foregoing.

      "Spot Date" means the spot delivery day for the relevant Currency Pair as
generally used by the relevant foreign exchange market.

      "Spot Price" means the rate of exchange at the time at which such price is
to be determined for foreign exchange transactions in the relevant Currency Pair
for value on the Spot Date, as determined in good faith: (i) by the Seller, for
purposes of Section 5, and (ii) by the Non-Defaulting Party, for purposes of
Section 8.

      "Strike Price", in respect of any Option, means the price at which the
Currency Pair may be exchanged, as agreed to at the time the Option is entered
into, as evidenced in a Confirmation.

      "Threshold Amount" means the amount specified as such for each Party in
Part VIII of the Schedule.

      "Value Date" means, with respect to any FX Transaction, the Business Day
(or where market practice in the relevant foreign exchange market in relation to
the two Currencies involved provides for delivery of one Currency on one date
which is a Local Banking Day in relation to that Currency but not to the other
Currency and for delivery of the other Currency on the next Local Banking Day in
relation to that other Currency ("Split Settlement") the two (2) Local Banking
Days in accordance with that market practice) agreed by the Parties for delivery
of the Currencies to be purchased and sold pursuant to such FX Transaction, and,
with respect to any Currency Obligation, the Business Day (or, in the case of
Split Settlement, Local Banking Day) upon which the obligation to deliver
Currency pursuant to such Currency Obligation is to be performed.

SECTION 2.  FX TRANSACTIONS AND OPTIONS
            ---------------------------

      2.1 Scope of the Agreement. The Parties (through their respective
Designated Offices) may enter into (i) FX Transactions, for such quantities of
such Currencies, as may be agreed subject to the terms of the Agreement, and
(ii) Options, for such Premiums, with such Expiration Dates, at such Strike
Prices and for the purchase or sale of such quantities of such Currencies, as
may be agreed subject to the terms of the Agreement; provided that neither Party
shall be required to enter into any FX Transaction or Option with the other
Party (other than in connection with an exercised Option). Unless otherwise
agreed in writing by the Parties, each FX Transaction and Option entered into
between Designated Offices of the Parties on or after the Effective Date shall
be governed by the Agreement. Each FX Transaction and Option between any two
Designated Offices of the Parties outstanding on the Effective Date which is
identified in Part I of the Schedule shall also be governed by the Agreement.

      2.2 Single Agreement. This Master Agreement, the terms agreed between the
Parties with respect to each FX Transaction and Option (and, to the extent
recorded in a Confirmation, each such Confirmation), and all amendments to any
of such items shall together form the agreement between the Parties (the
"Agreement") and shall together constitute a single agreement between the
Parties. The Parties acknowledge that all FX Transactions and Options are
entered into in reliance upon such fact, it being understood that the Parties
would not otherwise enter into any FX Transaction or Option.

      2.3 Confirmations. FX Transactions and Options shall be promptly confirmed
by the Parties by Confirmations exchanged by mail, telex, facsimile or other
electronic means from which it is possible to produce a hard copy. The failure
by a Party to issue a Confirmation shall not prejudice or invalidate the terms
of any FX Transaction or Option.

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      2.4 Inconsistencies. In the event of any inconsistency between the
provisions of the Schedule and the other provisions of the Agreement, the
Schedule will prevail. In the event of any inconsistency between the terms of a
Confirmation and the other provisions of the Agreement, (i) in the case of an FX
Transaction, the other provisions of the Agreement shall prevail, and the
Confirmation shall not modify the other terms of the Agreement and (ii) in the
case of an Option, the terms of the Confirmation shall prevail, and the other
terms of the Agreement shall be deemed modified with respect to such Option,
except for the manner of confirmation under Section 2.3 and, if applicable,
discharge of Options under Section 4.

SECTION 3.  OPTION PREMIUM
            --------------

      3.1 Payment of Premium. Unless otherwise agreed in writing by the Parties,
the Buyer shall be obligated to pay the Premium related to an Option no later
than its Premium Payment Date.

      3.2 Late Payment or Non-Payment of Premium. If any Premium is not received
on or before the Premium Payment Date, the Seller may elect: (i) to accept a
late payment of such Premium; (ii) to give written notice of such non-payment
and, if such payment shall not be received within two (2) Business Days of such
notice, treat the related Option as void; or (iii) to give written notice of
such non-payment and, if such payment shall not be received within two (2)
Business Days of such notice, treat such non-payment as an Event of Default
under clause (i) of the definition of Event of Default. If the Seller elects to
act under either clause (i) or (ii) of the preceding sentence, the Buyer shall
pay all out-of-pocket costs and actual damages incurred in connection with such
unpaid or late Premium or void Option, including, without limitation, interest
on such Premium from and including the Premium Payment Date to but excluding the
late payment date in the same Currency as such Premium at overnight LIBOR and
any other losses, costs or expenses incurred by the Seller in connection with
such terminated Option, for the loss of its bargain, its cost of funding, or the
loss incurred as a result of terminating, liquidating, obtaining or
re-establishing a delta hedge or related trading position with respect to such
Option.

SECTION 4.  DISCHARGE AND TERMINATION OF OPTIONS; NETTING OF OPTION PREMIUMS
            ----------------------------------------------------------------

      4.1 Discharge and Termination. If agreed in Part V of the Schedule, any
Call or any Put written by a Party will automatically be discharged and
terminated, in whole or in part, as applicable, against a Call or a Put,
respectively, written by the other Party, such discharge and termination to
occur automatically upon the payment in full of the last Premium payable in
respect of such Options; provided that such discharge and termination may only
occur in respect of Options:

      (i)   each being with respect to the same Put Currency and the same Call
            Currency;

      (ii)  each having the same Expiration Date and Expiration Time;

      (iii) each being of the same style, i.e. either both being American Style
            Options or both being European Style Options;

      (iv)  each having the same Strike Price;

      (v)   each being transacted by the same pair of Designated Offices of
            Buyer and Seller; and

      (vi)  neither of which shall have been exercised by delivery of a Notice
            of Exercise;

and, upon the occurrence of such discharge and termination, neither Party shall
have any further obligation to the other Party in respect of the relevant
Options or, as the case may be, parts thereof so discharged and terminated. Such
discharge and termination shall be effective notwithstanding that either Party
may fail to record such discharge and termination in its books. In the case of a
partial discharge and termination (i.e., where the relevant Options are for
different amounts of the Currency Pair), the remaining portion of the Option
which is partially discharged and terminated shall continue to be an Option for
all purposes of the Agreement, including this Section 4.1.

      4.2 Netting of Option Premiums. If agreed in Part V of the Schedule and
if, on any date, Premiums would otherwise be payable under the Agreement in the
same Currency between the same respective Designated Offices of the Parties,
then, on such date, each Party's obligation to make payment of any such Premium
will be automatically satisfied and discharged and, if the aggregate Premium(s)
that would otherwise have been payable by such Designated Office of one Party
exceeds the aggregate Premium(s) that would otherwise have been payable by such
Designated

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Office of the other Party, replaced by an obligation upon the Party by whom the
larger aggregate Premium(s) would have been payable to pay the other Party the
excess of the larger aggregate Premium(s) over the smaller aggregate Premium(s)
and, if the aggregate Premiums are equal, no payment shall be made.

SECTION 5.  EXERCISE AND SETTLEMENT OF OPTIONS
            ----------------------------------

      5.1 Exercise of Options. The Buyer may exercise an Option by delivery to
the Seller of a Notice of Exercise. Subject to Section 5.3, if a Notice of
Exercise with respect to an Option has not been received by the Seller prior to
or at the Expiration Time, the Option shall expire and become void and of no
effect. Any Notice of Exercise shall (unless otherwise agreed):

      (i) in respect of an American Style Option, (A) if received at or prior to
3:00 p.m. on a Business Day, be effective upon receipt thereof by the Seller,
and (B) if received after 3:00 p.m. on a Business Day, be effective only as of
the opening of business of the Seller on the first Business Day subsequent to
its receipt; and

      (ii) in respect of a European Style Option, if received on or, if the
parties have so agreed, before the Expiration Date, prior to or at the
Expiration Time, be effective upon receipt thereof by the Seller.

      5.2 No Partial Exercise. Unless otherwise agreed by the Parties, an Option
may be exercised only in whole.

      5.3 Automatic Exercise. Unless otherwise agreed in Part VI of the Schedule
or unless the Seller is otherwise instructed by the Buyer, if an Option has an
In-the-Money Amount at its Expiration Time that equals or exceeds the product of
(x) 1% of the Strike Price (or such other percentage or amount as may have been
agreed by the Parties) and (y) the amount of the Call Currency or Put Currency,
as appropriate, then the Option shall be deemed automatically exercised. In such
case, the Seller may elect to settle such Option either in accordance with
Section 5.4 or by payment to the Buyer on the Settlement Date for such Option of
the In-the-Money Amount, as determined at the Expiration Time or as soon
thereafter as practicable. In the latter case, the sole obligations of the
Parties with respect to settlement of such Option shall be to deliver or receive
the In-the-Money Amount of such Option on the Settlement Date. The Seller shall
notify the Buyer of its election of the method of settlement of an automatically
exercised Option as soon as practicable after the Expiration Time.

      5.4 Settlement of Exercised Options. An exercised Option shall settle on
its Settlement Date. Subject to Section 5.3 and 5.5, on the Settlement Date, the
Buyer shall pay the Put Currency to the Seller for value on the Settlement Date
and the Seller shall pay the Call Currency to the Buyer for value on the
Settlement Date. An exercised Option shall be treated as an FX Transaction and a
Currency Obligation (except, for the purposes of Section 8.1 only, if it is to
be settled at its In-the-Money Amount), and for this purpose the relevant
Settlement Date shall be treated as the Value Date of the FX Transaction.

      5.5 Settlement at In-the-Money Amount. An Option shall be settled at its
In-the-Money Amount if so agreed by the Parties at the time such Option is
entered into. In such case, the In-the-Money Amount shall be determined based
upon the Spot Price at the time of exercise or as soon thereafter as
practicable. The sole obligations of the Parties with respect to settlement of
such Option shall be to deliver or receive the In-the-Money Amount of such
Option on the Settlement Date.

SECTION 6.  SETTLEMENT AND NETTING OF FX TRANSACTIONS
            -----------------------------------------

      6.1 Settlement of FX Transactions. Subject to Sections 6.2 and 6.3, each
Party shall deliver to the other Party the amount of the Currency to be
delivered by it under each Currency Obligation on the Value Date for such
Currency Obligation.

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      6.2 Settlement Netting. If, on any date, more than one delivery of a
particular Currency under Currency Obligations is to be made between a pair of
Settlement Netting Offices, then each Party shall aggregate the amounts of such
Currency deliverable by it and only the difference between these aggregate
amounts shall be delivered by the Party owing the larger aggregate amount to the
other Party, and, if the aggregate amounts are equal, no delivery of the
Currency shall be made.

      6.3 Novation Netting. (a) By Currency. If the Parties enter into an FX
Transaction through a pair of Novation Netting Offices giving rise to a Currency
Obligation for the same Value Date and in the same Currency as a then existing
Currency Obligation between the same pair of Novation Netting Offices, then
immediately upon entering into such FX Transaction, each such Currency
Obligation shall automatically and without further action be individually
canceled and simultaneously replaced by a new Currency Obligation for such Value
Date determined as follows: the amounts of such Currency that would otherwise
have been deliverable by each Party on such Value Date shall be aggregated and
the Party with the larger aggregate amount shall have a new Currency Obligation
to deliver to the other Party the amount of such Currency by which its aggregate
amount exceeds the other Party's aggregate amount, provided that if the
aggregate amounts are equal, no new Currency Obligation shall arise. This
Section 6.3 shall not affect any other Currency Obligation of a Party to deliver
any different Currency on the same Value Date.

      (b) By Matched Pair. If the Parties enter into an FX Transaction between a
pair of Matched Pair Novation Netting Offices then the provisions of Section
6.3(a) shall apply only in respect of Currency Obligations arising by virtue of
FX Transactions entered into between such pair of Matched Pair Novation Netting
Offices and involving the same pair of Currencies and the same Value Date.

      6.4 General (a) Inapplicability of Sections 6.2 and 6.3. The provisions of
Sections 6.2 and 6.3 shall not apply if a Close-Out Date has occurred or a
voluntary or involuntary Insolvency Proceeding or action of the kind described
in clause (ii), (iii) or (iv) of the definition of Event of Default has occurred
without being dismissed in relation to either Party.

      (b) Failure to Record. The provisions of Section 6.3 shall apply
notwithstanding that either Party may fail to record the new Currency Obligation
in its books.

      (c) Cut-off Date and Time. The provisions of Section 6.3 are subject to
any cut-off date and cut-off time agreed between the applicable Novation Netting
Offices and Matched Pair Novation Netting Offices of the Parties.

SECTION 7.  REPRESENTATIONS, WARRANTIES AND COVENANTS
            -----------------------------------------

      7.1 Representations and Warranties. Each Party represents and warrants to
the other Party as of the Effective Date and as of the date of each FX
Transaction and each Option that: (i) it has authority to enter into the
Agreement (including such FX Transaction or Option, as the case may be); (ii)
the persons entering into the Agreement (including such FX Transaction or
Option, as the case may be) on its behalf have been duly authorized to do so;
(iii) the Agreement (including such FX Transaction or Option, as the case may
be) is binding upon it and enforceable against it in accordance with its terms
(subject to applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting creditors' rights generally and applicable principles of
equity) and does not and will not violate the terms of any agreements to which
such Party is bound; (iv) no Event of Default, or event which, with notice or
lapse of time or both, would constitute an Event of Default, has occurred and is
continuing with respect to it; (v) it acts as principal in entering into each FX
Transaction and Option and exercising each and every Option; and (vi) if the
Parties have so specified in Part XV of the Schedule, it makes the
representations and warranties set forth in such Part XV.

      7.2 Covenants. Each Party covenants to the other Party that: (i) it will
at all times obtain and comply with the terms of and do all that is necessary to
maintain in full force and effect all authorizations, approvals, licenses and
consents required to enable it lawfully to perform its obligations under the
Agreement; (ii) it will promptly notify the other Party of the occurrence of any
Event of Default with respect to itself or any Credit Support Provider in
relation to it; and (iii) if the Parties have set forth additional covenants in
Part XVI of the Schedule, it makes the covenants set forth in such Part XVI.

                                       9
<PAGE>

SECTION 8.  CLOSE-OUT AND LIQUIDATION
            -------------------------

      8.1 Manner of Close-Out and Liquidation. (a) Close-Out. If an Event of
Default has occurred and is continuing, then the Non-Defaulting Party shall have
the right to close out all, but not less than all, outstanding Currency
Obligations (including any Currency Obligation which has not been performed and
in respect of which the Value Date is on or precedes the Close-Out Date) and
Options, except to the extent that in the good faith opinion of the
Non-Defaulting Party certain of such Currency Obligations or Options may not be
closed out under applicable law. Such close-out shall be effective upon receipt
by the Defaulting Party of notice that the Non-Defaulting Party is terminating
such Currency Obligations and Options. Notwithstanding the foregoing, unless
otherwise agreed by the Parties in Part X of the Schedule, in the case of an
Event of Default in clause (ii), (iii) or (iv) of the definition thereof with
respect to a Party and, if agreed by the Parties in Part IX of the Schedule, in
the case of any other Event of Default specified and so agreed in Part IX with
respect to a Party, close-out shall be automatic as to all outstanding Currency
Obligations and Options, as of the time immediately preceding the institution of
the relevant Insolvency Proceeding or action. The Non-Defaulting Party shall
have the right to liquidate such closed-out Currency Obligations and Options as
provided below.

      (b) Liquidation of Currency Obligations. Liquidation of Currency
Obligations terminated by close-out shall be effected as follows:

      (i) Calculating Closing Gain or Loss. The Non-Defaulting Party shall
calculate in good faith, with respect to each such terminated Currency
Obligation, except to the extent that in the good faith opinion of the
Non-Defaulting Party certain of such Currency Obligations may not be liquidated
as provided herein under applicable law, as of the Close-Out Date or as soon
thereafter as reasonably practicable, the Closing Gain, or, as appropriate, the
Closing Loss, as follows:

            (A) for each Currency Obligation calculate a "Close-Out Amount" as
follows:

                  (1) in the case of a Currency Obligation whose Value Date is
the same as or is later than the Close-Out Date, the amount of such Currency
Obligation; or

                  (2) in the case of a Currency Obligation whose Value Date
precedes the Close-Out Date, the amount of such Currency Obligation increased,
to the extent permitted by applicable law, by adding interest thereto from and
including the Value Date to but excluding the Close-Out Date at overnight LIBOR;
and

                  (3) for each such amount in a Currency other than the
Non-Defaulting Party's Base Currency, convert such amount into the
Non-Defaulting Party's Base Currency at the rate of exchange at which, at the
time of the calculation, the Non-Defaulting Party can buy such Base Currency
with or against the Currency of the relevant Currency Obligation for delivery
(x) if the Value Date of such Currency Obligation is on or after the Spot Date
as of such time of calculation for the Base Currency, on the Value Date of that
Currency Obligation or (y) if such Value Date precedes such Spot Date, for
delivery on such Spot Date (or, in either case, if such rate of exchange is not
available, conversion shall be accomplished by the Non-Defaulting Party using
any commercially reasonable method); and

            (B) determine in relation to each Value Date: (1) the sum of all
Close-Out Amounts relating to Currency Obligations under which the
Non-Defaulting Party would otherwise have been entitled to receive the relevant
amount on that Value Date; and (2) the sum of all Close-Out Amounts relating to
Currency Obligations under which the Non-Defaulting Party would otherwise have
been obliged to deliver the relevant amount to the Defaulting Party on that
Value Date; and

            (C) if the sum determined under (B)(1) is greater than the sum
determined under (B)(2), the difference shall be the Closing Gain for such Value
Date; if the sum determined under (B)(1) is less than the sum determined under
(B)(2), the difference shall be the Closing Loss for such Value Date.

                                       10
<PAGE>

      (ii) Determining Present Value. To the extent permitted by applicable law,
the Non-Defaulting Party shall adjust the Closing Gain or Closing Loss for each
Value Date falling after the Close-Out Date to present value by discounting the
Closing Gain or Closing Loss from and including the Value Date to but excluding
the Close-Out Date, at LIBOR with respect to the Non-Defaulting Party's Base
Currency as at the Close-Out Date or at such other rate as may be prescribed by
applicable law.

      (iii) Netting. The Non-Defaulting Party shall aggregate the following
amounts so that all such amounts are netted into a single liquidated amount
payable to or by the Non-Defaulting Party: (x) the sum of the Closing Gains for
all Value Dates (discounted to present value, where appropriate, in accordance
with the provisions of Section 8.1(b)(ii)) (which for the purposes of the
aggregation shall be a positive figure); and (y) the sum of the Closing Losses
for all Value Dates (discounted to present value, where appropriate, in
accordance with the provisions of Section 8.1(b)(ii)) (which for the purposes of
the aggregation shall be a negative figure).

      (c) Liquidation of Options. To liquidate unexercised Options and exercised
Options to be settled at their In-the-Money Amounts that have been terminated by
close-out, the Non-Defaulting Party shall:

      (i) Calculating Settlement Amount. Calculate in good faith with respect to
each such terminated Option, except to the extent that in the good faith opinion
of the Non-Defaulting Party certain of such Options may not be liquidated as
provided herein under applicable law, as of the Close-Out Date or as soon as
reasonably practicable thereafter a settlement amount for each Party equal to
the aggregate of:

            (A) with respect to each Option purchased by such Party, and which
the other Party has not elected to treat as void pursuant to Section 3.2(ii) for
lack of payment of the Premium, the current market premium for such Option;

            (B) with respect to each Option sold by such Party and which such
Party has not elected to treat as void pursuant to Section 3.2(ii) for lack of
payment of the Premium, any unpaid Premium, provided that, if the Close-Out Date
occurs before the Premium Payment Date, such amount shall be discounted from and
including the Premium Payment Date to but excluding the Close-Out Date at a rate
equal to LIBOR on the Close-Out Date and, if the Close-Out Date occurs after the
Premium Payment Date, to the extent permitted by applicable law, the settlement
amount shall include interest on any unpaid Premium from and including the
Premium Payment Date to but excluding the Close-Out Date in the same Currency as
such Premium at overnight LIBOR;

            (C) with respect to any exercised Option to be settled at its
In-the-Money Amount (whether or not the Close-Out Date occurs before the
Settlement Date for such Option), any unpaid amount due to such Party in
settlement of such Option and, if the Close-Out Date occurs after the Settlement
Date for such Option, to the extent permitted by applicable law, interest
thereon from and including the applicable Settlement Date to but excluding the
Close-Out Date at overnight LIBOR; and

            (D) without duplication, the amount that the Non-Defaulting Party
reasonably determines in good faith, as of the Close-Out Date or as of the
earliest date thereafter that is reasonably practicable, to be its additional
losses, costs and expenses in connection with such terminated Option, for the
loss of its bargain, its cost of funding, or the loss incurred as a result of
terminating, liquidating, obtaining or re-establishing a delta hedge or related
trading position with respect to such Option;

      (ii) Converting to Base Currency. Convert any settlement amount calculated
in accordance with clause (i) above in a Currency other than the Non-Defaulting
Party's Base Currency into such Base Currency at the Spot Price at which, at the
time of the calculation, the Non-Defaulting Party could enter into a contract in
the foreign exchange market to buy the Non-Defaulting Party's Base Currency in
exchange for such Currency (or, if such Spot Price is not available, conversion
shall be accomplished by the Non-Defaulting Party using any commercially
reasonable method); and

      (iii) Netting. Net such settlement amounts with respect to each Party so
that all such amounts are netted to a single liquidated amount payable by one
Party to the other Party.

                                       11
<PAGE>

      (d) Final Netting. The Non-Defaulting Party shall net (or, if both are
payable by one Party, add) the liquidated amounts payable under Sections 8.1(b)
and 8.1(c) with respect to each Party so that such amounts are netted (or added)
to a single liquidated amount payable by one Party to the other Party as a
settlement payment.

      8.2 Set-Off Against Credit Support. Where close-out and liquidation occurs
in accordance with Section 8.1, the Non-Defaulting Party shall also be entitled
(i) to set off the net payment calculated in accordance with Section 8.1(d)
which the Non-Defaulting Party owes to the Defaulting Party, if any, against any
credit support or other collateral ("Credit Support") held by the Defaulting
Party pursuant to a Credit Support Document or otherwise (including the
liquidated value of any non-cash Credit Support) in respect of the
Non-Defaulting Party's obligations under the Agreement or (ii) to set off the
net payment calculated in accordance with Section 8.1(d) which the Defaulting
Party owes to the Non-Defaulting Party, if any, against any Credit Support held
by the Non-Defaulting Party (including the liquidated value of any non-cash
Credit Support) in respect of the Defaulting Party's obligations under the
Agreement; provided that, for purposes of either such set-off, any Credit
Support denominated in a Currency other than the Non-Defaulting Party's Base
Currency shall be converted into such Base Currency at the rate specified in
Section 8.1(c)(ii).

      8.3 Other Foreign Exchange Transactions and Currency Options. Where
close-out and liquidation occurs in accordance with Section 8.1, the
Non-Defaulting Party shall also be entitled to close-out and liquidate, to the
extent permitted by applicable law, any other foreign exchange transaction or
currency option entered into between the Parties which is then outstanding in
accordance with the provisions of Section 8.1, with each obligation of a Party
to deliver a Currency under such a foreign exchange transaction being treated as
if it were a Currency Obligation (including exercised options, provided that
cash-settled options shall be treated analogously to Options to be settled at
their In-the-Money Amount) and each unexercised option being treated as if it
were an Option under the Agreement.

      8.4 Payment and Late Interest. The net amount payable by one Party to the
other Party pursuant to the provisions of Sections 8.1 and 8.3 above shall be
paid by the close of business on the Business Day following the receipt by the
Defaulting Party of notice of the Non-Defaulting Party's settlement calculation,
with interest at overnight LIBOR from and including the Close-Out Date to but
excluding such Business Day (and converted as required by applicable law into
any other Currency, any costs of conversion to be borne by, and deducted from
any payment to, the Defaulting Party). To the extent permitted by applicable
law, any amounts owed but not paid when due under this Section 8 shall bear
interest at overnight LIBOR (or, if conversion is required by applicable law
into some other Currency, either overnight LIBOR with respect to such other
Currency or such other rate as may be prescribed by such applicable law) for
each day for which such amount remains unpaid. Any addition of interest or
discounting required under this Section 8 shall be calculated on the basis of a
year of such number of days as is customary for transactions involving the
relevant Currency in the relevant foreign exchange market.

      8.5 Suspension of Obligations. Without prejudice to the foregoing, so long
as a Party shall be in default in payment or performance to the other Party
under the Agreement and the other Party has not exercised its rights under this
Section 8, or, if "Adequate Assurances" is specified as applying to the
Agreement in Part XI of the Schedule, during the pendency of a reasonable
request to a Party for adequate assurances of its ability to perform its
obligations under the Agreement, the other Party may, at its election and
without penalty, suspend its obligation to perform under the Agreement.

      8.6 Expenses. The Defaulting Party shall reimburse the Non-Defaulting
Party in respect of all out-of-pocket expenses incurred by the Non-Defaulting
Party (including fees and disbursements of counsel, including attorneys who may
be employees of the Non-Defaulting Party) in connection with any reasonable
collection or other enforcement proceedings related to the payments required
under the Agreement.

      8.7 Reasonable Pre-Estimate. The Parties agree that the amounts
recoverable under this Section 8 are a reasonable pre-estimate of loss and not a
penalty. Such amounts are payable for the loss of bargain and the loss of
protection against future risks and, except as otherwise provided in the
Agreement, neither Party will be entitled to recover any additional damages as a
consequence of such losses.

      8.8 No Limitation of Other Rights; Set-Off. The Non-Defaulting Party's
rights under this Section 8 shall be in addition to, and not in limitation or
exclusion of, any other rights which the Non-Defaulting Party may have (whether
by agreement, operation of law or otherwise), and, to the extent not prohibited
by law, the Non-Defaulting Party

                                       12
<PAGE>

shall have a general right of set-off with respect to all amounts owed by each
Party to the other Party, whether due and payable or not due and payable
(provided that any amount not due and payable at the time of such set-off shall,
if appropriate, be discounted to present value in a commercially reasonable
manner by the Non-Defaulting Party). The Non-Defaulting Party's rights under
this Section 8.8 are subject to Section 8.7.

SECTION 9.  FORCE MAJEURE, ACT OF STATE, ILLEGALITY AND IMPOSSIBILITY
            ---------------------------------------------------------

      9.1 Force Majeure, Act of State, Illegality and Impossibility. If either
Party is prevented from or hindered or delayed by reason of force majeure or act
of state in the delivery or receipt of any Currency in respect of a Currency
Obligation or Option or if it becomes or, in the good faith judgment of one of
the Parties, may become unlawful or impossible for either Party to make or
receive any payment in respect of a Currency Obligation or Option, then the
Party for whom such performance has been prevented, hindered or delayed or has
become illegal or impossible shall promptly give notice thereof to the other
Party and either Party may, by notice to the other Party, require the close-out
and liquidation of each affected Currency Obligation and Option in accordance
with the provisions of Section 8.1 and, for such purposes, the Party unaffected
by such force majeure, act of state, illegality or impossibility (or, if both
Parties are so affected, whichever Party gave the relevant notice) shall perform
the calculation required under Section 8.1 as if it were the Non-Defaulting
Party. Nothing in this Section 9.1 shall be taken as indicating that the Party
treated as the Defaulting Party for the purpose of calculations required by
Section 8.1 has committed any breach or default.

      9.2 Transfer to Avoid Force Majeure, Act of State, Illegality or
Impossibility. If Section 9.1 becomes applicable, unless prohibited by law, the
Party which has been prevented, hindered or delayed from performing shall, as a
condition to its right to designate a close-out and liquidation of any affected
Currency Obligation or Option, use all reasonable efforts (which will not
require such Party to incur a loss, excluding immaterial, incidental expenses)
to transfer as soon as practicable, and in any event before the earlier to occur
of the expiration date of the affected Options or twenty (20) days after it
gives notice under Section 9.1, all its rights and obligations under the
Agreement in respect of the affected Currency Obligations and Options to another
of its Designated Offices so that such force majeure, act of state, illegality
or impossibility ceases to exist. Any such transfer will be subject to the prior
written consent of the other Party, which consent will not be withheld if such
other Party's policies in effect at such time would permit it to enter into
transactions with the transferee Designated Office on the terms proposed, unless
such transfer would cause the other Party to incur a material tax or other cost.

SECTION 10. PARTIES TO RELY ON THEIR OWN EXPERTISE
            --------------------------------------

      Each Party will be deemed to represent to the other Party on the date on
which it enters into an FX Transaction or Option that (absent a written
agreement between the Parties that expressly imposes affirmative obligations to
the contrary for that FX Transaction or Option): (i)(A) it is acting for its own
account, and it has made its own independent decisions to enter into that FX
Transaction or Option and as to whether that FX Transaction or Option is
appropriate or proper for it based upon its own judgment and upon advice from
such advisors as it has deemed necessary; (B) it is not relying on any
communication (written or oral) of the other Party as investment advice or as a
recommendation to enter into that FX Transaction or Option, it being understood
that information and explanations related to the terms and conditions of an FX
Transaction or Option shall not be considered investment advice or a
recommendation to enter into that FX Transaction or Option; and (C) it has not
received from the other Party any assurance or guarantee as to the expected
results of that FX Transaction or Option; (ii) it is capable of evaluating and
understanding (on its own behalf or through independent professional advice),
and understands and accepts, the terms, conditions and risks of that FX
Transaction or Option; and (iii) the other Party is not acting as a fiduciary or
an advisor for it in respect of that FX Transaction or Option.

SECTION 11. MISCELLANEOUS
            -------------

      11.1 Currency Indemnity. The receipt or recovery by either Party (the
"first Party") of any amount in respect of an obligation of the other Party (the
"second Party") in a Currency other than that in which such amount was due,
whether pursuant to a judgment of any court or pursuant to Section 8 or 9, shall
discharge such obligation only to the extent that, on the first day on which the
first Party is open for business immediately following such receipt or

                                       13
<PAGE>

recovery, the first Party shall be able, in accordance with normal banking
practice, to purchase the Currency in which such amount was due with the
Currency received or recovered. If the amount so purchasable shall be less than
the original amount of the Currency in which such amount was due, the second
Party shall, as a separate obligation and notwithstanding any judgment of any
court, indemnify the first Party against any loss sustained by it. The second
Party shall in any event indemnify the first Party against any costs incurred by
it in making any such purchase of Currency.

      11.2 Assignment. Neither Party may assign, transfer or charge or purport
to assign, transfer or charge its rights or obligations under the Agreement to a
third party without the prior written consent of the other Party and any
purported assignment, transfer or charge in violation of this Section 11.2 shall
be void.

      11.3 Telephonic Recording. The Parties agree that each may electronically
record all telephonic conversations between them and that any such recordings
may be submitted in evidence to any court or in any Proceedings for the purpose
of establishing any matters pertinent to the Agreement.

      11.4 Notices. Unless otherwise agreed, all notices, instructions and other
communications to be given to a Party under the Agreement shall be given to the
address, telex (if confirmed by the appropriate answerback), facsimile
(confirmed if requested) or telephone number and to the individual or department
specified by such Party in Part III of the Schedule. Unless otherwise specified,
any notice, instruction or other communication given in accordance with this
Section 11.4 shall be effective upon receipt.

      11.5 Termination. Each of the Parties may terminate the Agreement at any
time by seven (7) days' prior written notice to the other Party delivered as
prescribed in Section 11.4, and termination shall be effective at the end of
such seventh day; provided, however, that any such termination shall not affect
any outstanding Currency Obligations or Options, and the provisions of the
Agreement shall continue to apply until all the obligations of each Party to the
other under the Agreement have been fully performed.

      11.6 Severability. In the event any one or more of the provisions
contained in the Agreement should be held invalid, illegal or unenforceable in
any respect under the law of any jurisdiction, the validity, legality and
enforceability of the remaining provisions contained in the Agreement under the
law of such jurisdiction, and the validity, legality and enforceability of such
and any other provisions under the law of any other jurisdiction shall not in
any way be affected or impaired thereby. The Parties shall endeavor in good
faith negotiations to replace the invalid, illegal or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

      11.7 No Waiver. No indulgence or concession granted by a Party and no
omission or delay on the part of a Party in exercising any right, power or
privilege under the Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.

      11.8 Master Agreement. Where one of the Parties to the Agreement is
domiciled in the United States, the Parties intend that the Agreement shall be a
master agreement, as referred to in 11 U.S.C. Section 101(53B)(C) and 12 U.S.C.
Section 1821(e)(8)(D)(vii).

      11.9 Time of Essence, Etc. Time shall be of the essence in the Agreement.
Unless otherwise agreed, the times referred to in the Agreement with respect to
Options shall in each case refer to the local time of the relevant Designated
Office of the Seller of the relevant Option.

      11.10 Headings. Headings in the Agreement are for ease of reference only.

      11.11 Payments Generally. All payments to be made under the Agreement
shall be made in same day (or immediately available) and freely transferable
funds and, unless otherwise specified, shall be delivered to such office of such
bank, and in favor of such account as shall be specified by the Party entitled
to receive such payment in Part IV of the Schedule or in a notice given in
accordance with Section 11.4.

                                       14
<PAGE>

      11.12 Amendments. No amendment, modification or waiver of the Agreement
will be effective unless in writing executed by each of the Parties; provided
that the Parties may agree in a Confirmation that complies with Section 2.3 to
amend the Agreement solely with respect to the Option that is the subject of the
Confirmation.

      11.13 Credit Support. A Credit Support Document between the Parties may
apply to obligations governed by the Agreement. If the Parties have executed a
Credit Support Document, such Credit Support Document shall be subject to the
terms of the Agreement and is hereby incorporated by reference in the Agreement.
In the event of any conflict between a Credit Support Document and the
Agreement, the Agreement shall prevail, except for any provision in such Credit
Support Document in respect of governing law.

      11.14 Adequate Assurances. If the Parties have so agreed in Part XI of the
Schedule, the failure by a Party to give adequate assurances of its ability to
perform any of its obligations under the Agreement within two (2) Business Days
of a written request to do so when the other Party has reasonable grounds for
insecurity shall be an Event of Default under the Agreement.

      11.15 Correction of Confirmations. Unless either Party objects to the
terms contained in any Confirmation sent by the other Party or sends a corrected
Confirmation within three (3) Business Days of receipt of such Confirmation, or
such shorter time as may be appropriate given the Value Date of an FX
Transaction, the terms of such Confirmation shall be deemed correct and accepted
absent manifest error. If the Party receiving a Confirmation sends a corrected
Confirmation within such three (3) Business Days, or shorter period, as
appropriate, then the Party receiving such corrected Confirmation shall have
three (3) Business Days, or shorter period, as appropriate, after receipt
thereof to object to the terms contained in such corrected Confirmation.

SECTION 12. LAW AND JURISDICTION
            --------------------

      12.1 Governing Law. The Agreement shall be governed by, and construed in
accordance with, the laws of the jurisdiction set forth in Part XII of the
Schedule without giving effect to conflict of laws principles.

      12.2 Consent to Jurisdiction. (a) With respect to any Proceedings, each
Party irrevocably (i) submits to the non-exclusive jurisdiction of the courts of
the jurisdiction set forth in Part XIII of the Schedule and (ii) waives any
objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have
jurisdiction over such Party. Nothing in the Agreement precludes either Party
from bringing Proceedings in any other jurisdiction nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

      (b) Each Party irrevocably appoints the agent for service of process (if
any) specified with respect to it in Part XIV of the Schedule. If for any reason
any Party's process agent is unable to act as such, such Party will promptly
notify the other Party and within thirty (30) days will appoint a substitute
process agent acceptable to the other Party.

      12.3 Waiver of Jury Trial. Each Party irrevocably waives any and all right
to trial by jury in any Proceedings.

      12.4 Waiver of Immunities. Each Party irrevocably waives, to the fullest
extent permitted by applicable law, with respect to itself and its revenues and
assets (irrespective of their use or intended use), all immunity on the grounds
of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any
court, (iii) relief by way of injunction, order for specific performance or for
recovery of property, (iv) attachment of its assets (whether before or after
judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by
applicable law, that it will not claim any such immunity in any Proceedings.

MORGAN STANLEY CAPITAL GROUP INC.

                                       15
<PAGE>

By_________________________________________
Name:
Title:

Morgan Stanley Spectrum Strategic, L.P.
By: Demeter Management Corporation

By_______________________________
Name:
Title:

                                       16
<PAGE>

                                    SCHEDULE

        Schedule to the International Foreign Exchange and Options Master
           Agreement dated as of September 27, 2004 (the "Agreement")
              between Morgan Stanley Capital Group Inc. ("Party A")
            and Morgan Stanley Spectrum Strategic, L.P. ("Party B").

Part I.     Scope of the Agreement
            ----------------------

            The Agreement shall apply to all FX Transactions outstanding between
            any two Designated Offices of the Parties on the Effective Date.

Part II.    Designated Offices
            ------------------

            Each of the following shall be a Designated Office:

            Party A: New York

            Party B: New York

            Each Party (the "first Party") that enters into an FX Transaction
            through a Designated Office other than its head or home office
            represents to the other Party (the "second Party") that,
            notwithstanding the place of booking office or jurisdiction of
            incorporation or organization of the first Party, the obligations of
            the first Party are the same as if it had entered into the FX
            Transaction through its head or home office. This representation
            will be deemed to be repeated by the first Party on each date on
            which it enters into an FX Transaction.

Part III.   Notices
            -------

            If sent to Party A:

            Address:  Morgan Stanley & Co. Incorporated
                      1585 Broadway, 3rd floor
                      New York, New York 10036

            Telephone Number:    (212) 761-2700
            Telex Number:        6801048    (Answerback: FXMS)
            Facsimile Number:    (212) 761-0296
            SWIFT Number:        MSNYUS33
            Name of Individual or Department
            to whom Notices are to be sent:  Foreign Exchange Trading Department

            If sent to Party B:

           Address:
           Telephone Number:
           Facsimile Number:
           Name of Individual or Department to whom Notices are to be sent

Part IV.   Payment Instructions
           --------------------

            [X] Name of Bank and Office, Account Number and Reference with
            respect to relevant Currencies: As specified in the relevant
            Confirmation or as otherwise advised.

                                       17
<PAGE>

            [X] With respect to each Party, as may be set forth in such Standard
            Settlement Instructions as may be specified by such Party in a
            notice given in accordance with Section 11.4.

Part V.     Netting
            -------

A.          Discharge of Options
            --------------------

            Not Applicable

B.          Netting of Premiums
            -------------------

            Not Applicable

C.          Settlement Netting Offices
            --------------------------

            Each of the following shall be a Settlement Netting Office:

            Party A: Same as Part II.

            Party B: Same as Part II.

            Party A and Party B agree that, notwithstanding Section 6.2 of the
            Agreement, obligations to make payments pursuant to FX Transactions
            shall only be netted, satisfied and discharged against obligations
            to make payments arising out of the same or other FX Transactions
            between a pair of Settlement Netting Offices.

D.          Novation Netting Offices
            ------------------------

            Each of the following shall be a Novation Netting Office: Not
            applicable.

E.          Matched Pair Novation Netting Offices
            -------------------------------------

            Each of the following shall be a Matched Pair Novation Netting
            Office:

            Not applicable.

Part VI.    Automatic Exercise of Options; Cash Settlement of FX Transactions
            -----------------------------------------------------------------

A.          Automatic Exercise of Options
            -----------------------------

            Not Applicable

B.         Cash Settlement of FX Transactions
           ----------------------------------

            The following provision shall apply:

            The definition of FX Transaction in Section 1 shall include foreign
            exchange transactions for the purchase and sale of one Currency
            against another but which shall be settled by the delivery of only
            one Currency based on the difference between exchange rates as
            agreed by the Parties as evidenced in a Confirmation. Section 6.1 is
            modified so that only one Currency shall be delivered for any such
            FX Transaction in accordance with the formula agreed by the Parties.
            Section 8.1(b)(i)(A) is modified so that the Close-Out Amount for
            any such FX Transaction for which the cash settlement amount has
            been fixed on or before the Close-Out Date pursuant to the terms of
            such FX Transaction shall be equal to the Currency Obligation

                                       18
<PAGE>

            arising therefrom (increased by adding interest in the manner
            provided in clause (A)(2) if the Value Date precedes the Close-Out
            Date) and for any such FX Transaction for which the cash settlement
            amount has not yet been fixed on the Close-Out Date pursuant to the
            terms of such FX Transaction, the Close-Out Amount shall be as
            reasonably determined by Party A in accordance with market practice.

Part VII.   Base Currency
            -------------

            Party A's Base Currency is U.S. Dollars.

            Party B's Base Currency is U.S. Dollars.

Part VIII.  Threshold Amount
            ----------------

            For purposes of clause (x) of the definition of Event of Default:

            Party A's Threshold Amount is U.S.D. $10,000,000.

            Party B's Threshold Amount is U.S.D. $10,000,000.

Part IX.    Additional Events of Default
            ----------------------------

            Clause (x) of the definition of Event of Default shall be modified
            by deleting the words ", or becomes capable at any time of being
            declared," after the words "and remains unpaid after any applicable
            grace period has elapsed, or (B) becomes".

            The following provisions which are checked shall constitute Events
            of Default:

            [ ] (a) occurrence of garnishment or provisional garnishment against
            a claim against the Defaulting Party acquired by the Non-Defaulting
            Party. The automatic termination provision of Section 8.1
            [shall][shall not] apply to either Party that is a Defaulting Party
            in respect of this Event of Default.

            [ ] (b) suspension of payment by the Defaulting Party or any Credit
            Support Provider in accordance with the Bankruptcy Law or the
            Corporate Reorganization Law in Japan. The automatic termination
            provision of Section 8.1 [shall][shall not] apply to either Party
            that is a Defaulting Party in respect of this Event of Default.

            [ ] (c) disqualification of the Defaulting Party or any Credit
            Support Provider by any relevant bill clearing house located in
            Japan. The automatic termination provision of Section 8.1
            [shall][shall not] apply to either Party that is a Defaulting Party
            in respect of this Event of Default.

Part X.     Automatic Termination
            ---------------------

            The automatic termination provision of Section 8.1 shall not apply
            to Party A as Defaulting Party in respect of clause (ii), (iii) or
            (iv) of the definition of Event of Default.

            The automatic termination provision of Section 8.1 shall not apply
            to Party B as Defaulting Party in respect of clause (ii), (iii) or
            (iv) of the definition of Event of Default.

Part XI.    Adequate Assurances
            -------------------

            Adequate Assurances under Section 11.14 shall not apply to the
            Agreement.

                                       19
<PAGE>

Part XII.   Governing Law
            -------------

            In accordance with Section 12.1 of the Agreement, the Agreement
            shall be governed by the laws of the State of New York.

Part XIII.  Consent to Jurisdiction
            -----------------------

            In accordance with Section 12.2 of the Agreement, each Party
            irrevocably submits to the non-exclusive jurisdiction of the courts
            of the State of New York and the United States District Court
            located in the Borough of Manhattan in New York City.

Part XIV.   Agent for Service of Process
            ----------------------------

            Party A appoints the following as its agent for service of process
            in any Proceedings in the State of New York: Not applicable.

            Party B appoints the following as its agent for service of process
            in any Proceedings in State of New York: Not applicable.

Part XV.    Certain Regulatory Representations
            ----------------------------------

A.          The following FDICIA representation shall apply:

        1.  Party A represents and warrants that it qualifies as a "financial
            institution" within the meaning of the Federal Deposit Insurance
            Corporation Improvement Act of 1991 ("FDICIA") by virtue of being a:

            [X] broker or dealer within the meaning of FDICIA;

            [ ] depository institution within the meaning of FDICIA;

            [X] futures commission merchant within the meaning of FDICIA;

            [ ] "financial institution" within the meaning of Regulation EE
                (see below).

        2.  Party B hereby represents and warrants that it qualifies as a
            "financial institution" by virtue of being a:

            [ ] broker or dealer within the meaning of FDICIA;

            [ ] depository institution within the meaning of FDICIA;

            [ ] futures commission merchant within the meaning of FDICIA;

            [ ] "financial institution" within the meaning of Regulation EE
                (see below).

        3.  A Party representing that it is a "financial institution" as that
            term is defined in 12 C.F.R. Section 231.3 of Regulation EE issued
            by the Board of Governors of the Federal Reserve System ("Regulation
            EE") represents that:

            (a) it is willing to enter into "financial contracts" as a
                counterparty "on both sides of one or more financial markets" as
                those terms are used in Section 231.3 of Regulation EE; and

                                       20
<PAGE>

            (b) during the 15-month period immediately preceding the date it
                makes or is deemed to make this representation, it has had on at
                least one (1) day during such period, with counterparties that
                are not its affiliates (as defined in Section 231.2(b) of
                Regulation EE) either:

                  (i)   one or more financial contracts of a total gross
                        notional principal amount of $1 billion outstanding; or

                  (ii)  total gross mark-to-market positions (aggregated across
                        counterparties) of $100 million; and

            (c) agrees that it will notify the other Party if it no longer meets
                the requirements for status as a financial institution under
                Regulation EE.

        4.  If both Parties are financial institutions in accordance with the
            above, the Parties agree that the Agreement shall be a netting
            contract, as defined in 12 U.S.C. Section 4402(14), and each receipt
            or payment or delivery obligation under the Agreement shall be a
            covered contractual payment entitlement or covered contractual
            payment obligation, respectively, as defined in FDICIA.

B.         The following ERISA representation shall apply:
           ----------------------------------------------

            Party B continuously represents that it is not (i) an employee
            benefit plan (hereinafter an "ERISA Plan"), as defined in Section
            3(3) of the Employee Retirement Income Security Act of 1974, as
            amended ("ERISA"), subject to Tittle I of ERISA or Section 4975 of
            the Internal Revenue Code of 1986, as amended, (ii) a person acting
            on behalf of an ERISA Plan or (iii) a person the assets of whom
            constitute assets of an ERISA Plan. Party B will provide notice to
            Party A in the event that Party B is aware that it is in breach of
            any aspect of this representation or is aware that with the passing
            of time, giving of notice or expiry of any applicable grace period
            Party B will breach this representation.

C.          The following Commodity Exchange Act representation shall apply:
            ---------------------------------------------------------------

            Each Party represents and warrants that it is an "eligible contract
            participant" under, and as defined in, Section 1(a)(12) of the
            Commodity Exchange Act, and was not formed solely for the purposes
            of constituting an "eligible contract participant."

Part XVI.   Representations and Warranties:
            ------------------------------

            In addition to the representations and warranties set forth in
            Section 7.1 of this Schedule, each Party hereby represents and
            warrants to the other Party on the date hereof and on the date of
            each FX Transaction, as the case may be, that: (a) it is a
            sophisticated investor able to evaluate and assume the risks
            associated with transactions in currencies as contemplated by the
            Agreement; (b) it is not relying upon any representations (whether
            written or oral) of the other Party other than the representations
            expressly set forth in the Agreement, this Schedule, any Credit
            Support Document or in any Confirmation; (c) its execution and
            delivery of the Agreement, and its performance of its obligations
            hereunder, do not and will not conflict with any law or regulation
            of the jurisdiction of its organization or other law or regulation
            applicable to it, and do not and will not violate, constitute a
            default under, or result in the creation or imposition of any lien
            or encumbrance on any of its property or assets under any agreement
            or instrument to which it is a party or by which its assets are
            bound; (d) no consent, authorization or approval (including exchange
            control approval) or other action by, and no notice to or filing
            with, any person or entity, including any governmental authority or
            regulatory body, other than any already obtained, made or filed and
            remaining in full force and effect, and the conditions of which have
            been duly complied with, is required in connection with the
            performance of its obligations under the Agreement; and (e) there
            are no actions, proceedings or claims pending or, to the best of its
            knowledge, threatened, the adverse determination of which might have
            a materially adverse effect on its ability to perform its
            obligations under, or affect the validity or enforceability of, the
            Agreement.

                                       21
<PAGE>

Part XVII.  Agreement Superseding
            ---------------------

            A new Section 11.16 shall be added to the Agreement which shall read
            as follows: "The Agreement shall supersede any other agreement
            between the Parties with respect to the subject matter hereof."

Part XVIII.  1998 FX and Currency Option Definitions.
             ---------------------------------------

            The 1998 FX and Currency Option Definitions as published by ISDA,
            EMTA and The Foreign Exchange Committee (the "Definitions") shall be
            applicable to each FX Transaction under the Agreement, including any
            FX Transaction outstanding on the date hereof, subject to the
            following:

A.          Definitions
            -----------

            1.    The term "Agreement" in Section 2.2 of the Agreement shall
                  include the Agreement as modified and supplemented by this
                  Part.

            2.    The term "FX Transaction" in the Definitions or in a
                  Confirmation shall in all cases be considered references to an
                  "FX Transaction" under the Agreement.

            3.    All terms in this Part shall have the meanings given them
                  above or in the Definitions, unless not defined above or in
                  the Definitions, in which case the term shall have the meaning
                  given in the Agreement.

B.          Scope
            -----

            1.    Notwithstanding the absence of any reference to the
                  Definitions in a Confirmation, this Part and the Definitions
                  shall be applicable to any FX Transaction covered by the
                  Agreement; provided that the Parties may agree otherwise for
                  any Transaction as evidenced by a Confirmation that complies
                  with Section 2.3 of the Agreement.

            2.    In the event of any inconsistency between the Definitions and
                  a Confirmation, the terms of the Confirmation shall govern for
                  the purpose of the relevant Transaction. In the event of any
                  inconsistency between the Definitions and the Agreement, the
                  Definitions shall prevail.

C.          Confirmations
            -------------

            Notwithstanding Sections 2.4 and 11.12 of the Agreement, in the
            event of any inconsistency between the terms of a Confirmation for
            an FX Transaction and the Agreement, the terms of the Confirmation
            shall prevail.

D.          Disruption Events
            -----------------

            With respect to any Disruption Event that is applicable to an FX
            Transaction pursuant to the Definitions or as otherwise agreed by
            the Parties as evidenced by a Confirmation, Section 9 of the
            Agreement shall not be applicable in respect of such FX Transaction,
            and the Parties shall be subject to the Disruption Fallbacks
            (including but not limited to No Fault Termination) specified as
            applicable pursuant to the Definitions or such Confirmation.

E.          Miscellaneous
            -------------

            The provisions of Part VI.B of this Schedule relating to cash
            settlement of FX Transactions shall apply to Non-Deliverable FX
            Transactions.

                                       22
<PAGE>

Part XIX.   Force Majeure, Act of State, Illegality and Impossibility
            ---------------------------------------------------------

            Section 9 of the Agreement is hereby amended by deleting it in its
            entirety and inserting in its place the following replacement
            Section:

                  "9.1 Liquidation Rights. If a Force Majeure Event occurs and
            is still in effect, then (but subject to Section 9.2) either Party
            may, by notice to the other Party on any day or days after the
            Waiting Period expires, require the close-out and liquidation of the
            Currency Obligations under any or all of the Affected Transactions
            in accordance with the provisions of Section 8.1 and, for such
            purposes, the Party unaffected by such Force Majeure Event shall
            perform the calculation required under Section 8.1 as if it were the
            Non-Defaulting Party (or, if both Parties are Affected Parties, but
            Parties shall so calculate in respect of all Affected Transactions
            which either Party determines to liquidate and the average of the
            amounts so determined shall be the relevant amount in respect of
            each Affected Transaction, except that if a Party fails to so
            determine an amount, the amount determined by the other Party shall
            govern). If a Party elects to so liquidate less than all Affected
            Transactions, it may liquidate additional Affected Transactions on a
            later day or days if the relevant Force Majeure Event is still in
            effect.

                  9.2 Waiting Period. If the Value Date of an FX Transaction
            which is an Affected Transaction, under Section 9.1 falls during the
            Waiting Period of the relevant Force Majeure Event, then such Value
            Date will be deferred to the first Business Day (or the first day
            which, but for such event, would have been a Business Day) after the
            end of that Waiting Period (or, in the case of Split Settlement, the
            first Local Banking Day or the first day which, but for such event,
            would have been a Local Banking Day, after the end of the Waiting
            Period). Compensation for this deferral shall be at then current
            market rates as determined in a commercially reasonable manner by
            the calculating Party or Parties under Section 9.

                  9.3 Notice by Affected Party. If a Force Majeure Event has
            occurred, an Affected Party shall promptly give notice thereof to
            the other Party.

                  9.4 Force Majeure Event and Event of Default. Nothing in this
            Section 9 shall be taken as indicating that the Party treated as the
            Defaulting Party for the purpose of calculations required by Section
            8.1 has committed any breach or default. If an event occurs that
            would otherwise constitute both a Force Majeure Event and an Event
            of Default, that event will be treated as a Force Majeure Event and
            will not constitute an Event of Default."

            In addition, the following definitions shall be added to Section 1
            of the Agreement:

                  ""Force Majeure Event", on any day determined as if such day
            were a Value Date of an FX Transaction (even if it is not), means
            (i) either Party, by reason of force majeure or act of state, is
            prevented from or hindered or delayed in delivering or receiving, or
            it is impossible to deliver or receive, any Currency in respect of a
            Currency Obligation, and which event is beyond the control of such
            Party and which such Party, with reasonable diligence, cannot
            overcome, or (ii) it is unlawful for either Party to deliver or
            receive a payment of any Currency in respect of a Currency
            Obligation. A Party whose delivery or receipt of Currency has been
            or would be so prevented, hindered or delayed or made unlawful or
            impossible is an "Affected Party", and an FX Transaction under which
            performance has been or would be so prevented, hindered or delayed
            or made unlawful or impossible is an "Affected Transaction", unless
            the Parties have expressly agreed in an Agreement, another writing
            or in regard to a particular FX Transaction that other disruption
            events or disruption fallbacks will apply to that FX Transaction; in
            such event, that FX Transaction will be subject to such disruption
            events or disruption fallbacks as the Parties have otherwise agreed.

                  "Waiting Period", in respect of a Force Majeure Event, means
            that first three days after such event occurs which are Business
            Days or which, but for such event, would have been Business Days.""

                                       23
<PAGE>

Part XX.    Margin and Security
            -------------------

A.          Party B shall at all times maintain with Dean Witter Reynolds Inc.
            (the "Custodian"), for and on behalf of Party A, cash and securities
            acceptable to Party A (together, the "Margin") in order to secure
            the obligations of Party B under all open FX Transactions entered
            into under the Agreement. The amount of Margin which Party B shall
            maintain with Party A shall be determined by Party A in its
            reasonable judgment (which determination shall be conclusive in the
            absence of manifest error), on a risk adjusted basis, taking into
            account historical volatility, imputed volatility and/or such other
            factors as Party A reasonably deems relevant to this determination
            (the "Aggregate Margin Requirement"). On or prior to the date of the
            Agreement, Party B shall have established a pledge account with the
            Custodian (the "Account") for the purpose of holding custody of the
            Margin for and on behalf of Party A, in accordance with the
            provisions of the Custodian Account Addendum, dated the date hereof,
            and the Agreement. Party B's failure to deposit Margin or to
            establish the Account as required herein shall be an Event of
            Default for all purposes under the Agreement (it being understood
            that there shall be no grace period with respect to obligations of
            Party B pursuant to this Part XX. Party A shall settle all FX
            Transactions with Party B on a secured basis only, such that Party
            A's payment obligations to Party B shall be made (a) prior to
            receipt of Party B's counterpayment thereunder, only to the extent
            that the amount by which Margin in the Account exceeds the Aggregate
            Margin Requirement is greater than such counterpayment or the U.S.
            Dollar equivalent thereof, or (b) after Party A has confirmed
            receipt of Party B's counterpayment thereunder.

B.          Whenever such Aggregate Margin Requirement shall exceed the market
            value of Margin on deposit with the Custodian in the Account as
            determined by Party A at such time in its reasonable judgment and
            which determination shall be conclusive in the absence of manifest
            error (the "Margin Balance", and the difference between such
            Aggregate Margin Requirement and the Margin Balance being the
            "Shortfall"), then Party B shall deposit immediately upon Party A's
            request, additional Margin in an amount at least equal to such
            Shortfall.

C.          In furtherance of the foregoing, as security for the prompt and
            complete payment when due and the performance by Party B of all of
            its obligations to Party A under the Agreement, Party B hereby
            grants to Party A a continuing first priority security interest in
            and to all of Party B's right, title and interest in and to the
            Margin, the Account, all financial assets, investment property and
            other property and assets which are deposited from time to time in,
            or credited from time to time to, the Account, all security
            entitlements in respect thereof, all income and profits thereon, all
            interest, dividends and other payments and distributions with
            respect thereto, and all proceeds of any of the foregoing (the
            "Margin Collateral"). In addition, Party B hereby grants to Party A
            and its affiliates a first priority security interest in and to any
            property of Party B at any time held by Party A or any affiliate of
            Party A for any purpose, including, without limitation, any property
            of Party B held in any account with Party A or any affiliate of
            Party A or with the Custodian, any financial assets, investment
            property and other property and assets which are deposited from time
            to time in, or credited from time to time to, any such account, all
            security entitlements in respect thereof, all income and profits
            thereon, all interest, dividends and other payments and
            distributions with respect thereto, and all proceeds of any of the
            foregoing (the "Collateral"), to secure all obligations of Party B
            to Party A. If Collateral was delivered in connection with a
            particular agreement between Party B and Party A or any of its
            affiliates, then such Collateral shall secure first the obligations
            of Party B with respect to such agreement and second all other
            obligations of Party B to Party A or any of its affiliates (in such
            order as Party A shall determine in its sole discretion). Party A,
            its affiliates and the Custodian and Party B hereby each acknowledge
            and agree that (a) each of Party A and its affiliates which holds
            Collateral holds such Collateral for itself and also as agent and
            bailee for all other of Party A and its affiliates which are secured
            parties hereunder or under any agreement between Party B and Party A
            or any of its affiliates, and (b) the Custodian which holds
            Collateral for and on behalf of Party A holds such Collateral as
            agent and bailee for Party A and its affiliates which are secured
            parties hereunder and under any agreement between Party B and Party
            A or any of its affiliates. If an Event of Default hereunder shall
            occur, then each of Party A and its affiliates shall be entitled to
            retain or sell all Collateral as security for Party B's obligations,
            even if otherwise required pursuant to the terms of an agreement or
            otherwise to deliver any Collateral to Party B or Party B's order.
            The parties agree that Party A and its affiliates shall have the
            rights and remedies of a secured creditor under the New York Uniform
            Commercial Code (the "UCC") and under

                                       24
<PAGE>

            any other applicable law or agreement to exercise any right with
            respect to the Margin Collateral and the Collateral subject to the
            security interest granted under the Agreement. Each of Party A or
            any of its affiliates shall have free and unrestricted use of any
            Margin Collateral and/or Collateral which it holds hereunder,
            including, without limitation, the right, from time to time and
            without notice to Party B, to sell, pledge, repledge, hypothecate,
            rehypothecate, assign, invest, use, commingle or otherwise dispose
            of, or otherwise use in its business any Margin Collateral and/or
            Collateral separately or in common with other securities,
            commodities or other property, for the sum due to any of Party A or
            any of its affiliates or for a greater sum on terms which may
            otherwise impair the right of Party B to redeem such Margin
            Collateral and/or Collateral, and free from any other right of claim
            of any nature whatsoever of Party B, and without retaining
            possession and control for delivery a like amount of similar
            securities, commodities, or other property.

D.          Party B represents and warrants that it owns the Margin Collateral
            and the Collateral to be pledged and assigned to each of Party A and
            its affiliates hereunder and under any other agreement between Party
            B and Party A or any of its affiliates, free and clear of any liens,
            equities, claims (including, without limitation, participation
            interests) and transfer restrictions. Party B covenants and agrees
            that it will not sell, assign, transfer, exchange or otherwise
            dispose of, or grant any option with respect to, any of the Margin
            Collateral or the Collateral, nor will it create, incur or permit to
            exist any lien on or with respect to any of the Margin Collateral or
            the Collateral, any interest therein, or any proceeds thereof,
            except for the security interests created under this Agreement or
            otherwise under any agreement between Party B and Party A or any of
            its affiliates. Any purported sale, assignment, transfer, exchange,
            disposition, grant or lien of the Margin Collateral or the
            Collateral by Party B that is not permitted under the foregoing
            sentence shall be null and void and shall constitute an Event of
            Default hereunder and under any agreement between Party B and Party
            A or any of its affiliates immediately prior to the taking of any
            such action, if Party A so deems (it being understood that there
            shall be no grace period with respect to obligations of Party B
            pursuant to this Part XX.

E.          Party B shall, in its sole expense and as Party A in its sole
            discretion may deem necessary or advisable from time to time, (i) to
            create, preserve, protect and perfect the security interests granted
            under the Agreement and (ii) to enable Party A to exercise and
            enforce its rights with respect to such security interests, do all
            acts and things and execute and deliver all documents and
            instruments in such manner and form as Party A may require,
            including without limitation UCC financing statements and
            continuation statements. Party B hereby appoints Party A as its true
            and lawful attorney-in-fact, including without limitation, to sign
            and file such documents and instruments on Party B's behalf and
            without Party B's signature; such appointment, being coupled with an
            interest, shall be irrevocable. Without limitation on the foregoing,
            Party B agrees to take such action as Party A in its sole discretion
            may deem necessary or advisable in the event of any change in
            applicable law, including, without limitation, Articles 8 and 9 of
            the UCC and the Regulations of the Department of the Treasury and
            other governmental bodies governing transfers of interests in U.S.
            marketable treasury securities in book-entry form.

F.          The parties hereto agree that each of the Account and any account in
            which any Collateral is held or to which any Collateral is credited
            (a "Collateral Account") is a "securities account" within the
            meaning of Article 8 of the UCC and that all property and assets
            (including, without limitation, cash) held in or credited to (i) the
            Account or (ii) any Collateral Account shall be treated as a
            "financial asset" for purposes of Article 8 of the UCC.

Part XXI.   Miscellaneous
            -------------

            Trading Authorization for FX Transactions and Options

            Party B hereby makes the following additional representations and
            warranties, which shall continue during the term of any FX
            Transaction and Option:

            (i)   Party B has duly authorized Demeter Management Corporation
                  (the "Agent") to enter into FX Transactions and Options on its
                  behalf and to take all requisite action on behalf of Party B

                                       25
<PAGE>

                  contemplated by and in connection with the Agreement. Party B
                  has designated the Agent as its agent for performance of its
                  obligations to Party A and for receipt of performance by Party
                  A of I`ts obligations to Party B in connection with any FX
                  Transactions and Options under the Agreement (including, among
                  other things, as agent for Party B in connection with
                  transfers of cash or other property and as agent for giving
                  and receiving of all notices under the Agreement). Party B
                  hereby agrees that it shall have in connection with any FX
                  Transaction and Option entered into by the Agent on its
                  behalf, the rights, responsibilities, privileges and
                  obligations of a "Party" directly entering into such FX
                  Transactions with Party A under the Agreement.

            (ii)  Party B shall indemnify Party A against any damages incurred
                  by Party A as a consequence of the failure of the above
                  representations made by Party B to be true at any time made or
                  deemed to be made, or for Agent's failure to act as
                  contemplated by the Agreement.

            (iii) This authorization shall continue in full force and effect,
                  and may be relied upon by Party A, unless terminated by Party
                  B by giving two (2) Business Day's written notice (by telex or
                  facsimile) of such termination to Party A. Party B will remain
                  fully responsible for any transactions effected by Party A for
                  Party B prior to the valid termination of this authority.

MORGAN STANLEY CAPITAL GROUP INC., as Party A

By     /S/ G William Brown, Jr.
   ----------------------------
     Name:
     Title:

Morgan Stanley Spectrum Strategic, L.P., as Party B
By Demeter Management Corporation

       /s/ Jeffrey A. Rothman
   ----------------------------
     Name:
     Title:

                                       26
<PAGE>

October 4, 2004

                           CUSTODIAN ACCOUNT ADDENDUM
                           --------------------------

      This Addendum supplements, forms part of, and is subject in all respects
to, the Foreign Exchange and Options Master Agreement (FEOMA) including the
Schedule thereto (the "Schedule") dated as of September 27, 2004 by and between
Morgan Stanley Capital Group Inc. and Demeter Management Corporation on behalf
of Morgan Stanley Spectrum Strategic, L.P. (collectively, the "Agreement"), and
is a part of the Schedule with respect to each party; provided, however, as used
herein, "Pledgor" means Party B and "Secured Party" means Party A (as defined in
the Agreement). Other capitalized terms used herein, unless otherwise defined,
have the meanings specified in the Agreement. With respect to the rights or
obligations of the Secured Party or the Pledgor, in the event of any
inconsistencies between this Addendum and the Agreement, the Agreement will
prevail.

      Having appointed Morgan Stanley DW Inc. (the "Custodian") to hold Margin
for and on behalf of the Secured Party, the Secured Party, the Pledgor and the
Custodian (solely to the extent of the duties it has agreed to undertake and
perform hereunder) agree as follows:

      In all respects, the rights of the Secured Party under the Schedule with
respect to Margin shall not be affected by the appointment of a Custodian
hereunder. The provisions of this Addendum in no way diminish or otherwise
affect the rights of the Secured Party under the Agreement.

      The Secured Party, by written notice to the Custodian, may exercise all
powers, and exercise any and all rights and remedies permitted under the
Schedule as though the Secured Party was taking such action directly, and the
Custodian will comply with, and be entitled to rely on, all such instructions
(including, without limitation, entitlement orders) as if such instructions were
provided by the parties jointly.

      As used herein, the following terms have the following meaning:

      "Advice from the Secured Party" or "Advice" means a written notice sent to
the Pledgor and/or the Custodian or transmitted by a facsimile sending device by
any of those individuals designated by the Secured Party, except that for any of
the following purposes it shall mean notice by telephone to a person designated
by the Pledgor in writing as authorized to receive such advice or, in the event
that no such person is available, to any officer of the Pledgor and confirmed
promptly in writing thereafter: (i) for initial or additional Margin; (ii) that
the Secured Party has issued a Notice of Exercise with respect to an Option ; or
(iii) that the Pledgor has failed to give notice of intent to make payment of
amounts or deliveries as required under Paragraph 5 of this Addendum. With
respect to any covering purchase transaction, the Advice from the Secured Party
shall mean a Confirmation in use by the Secured Party and sent or transmitted to
the Pledgor and/or the Custodian. When used herein the term "Advise" means the
act of sending an Advice from the Secured Party.

                                        1
<PAGE>

      The Custodian shall open an account on its books entitled "Special Custody
Account for Morgan Stanley Alternative Managed Futures Limited (referred to
herein as the "Special Custody Account").

      The parties hereto agree that all property and assets held in or credited
to the Special Custody Account will be treated as financial assets under Article
8 of the Uniform Commercial Code as in effect in the State of New York (the
"UCC"). The parties hereto further agree that the securities intermediary's
jurisdiction, within the meaning of Section 8-110(e) of the UCC, in respect of
the Special Custody Account and the Margin is the State of New York and agree
that none of them has or will enter into any agreement to the contrary.

      Anything in this Addendum notwithstanding, the Custodian hereby agrees to
comply with entitlement orders and other instructions of the Secured Party with
respect to the Special Custody Account and any Margin without further consent of
the Pledgor. The Pledgor hereby consents to such agreement.

      The Custodian represents and warrants that it has not, and agrees that it
will not, agree to comply with entitlement orders concerning the Special Custody
Account or any Margin that are originated by any person other than the Secured
Party.

      The Pledgor agrees to inform the Custodian in writing that cash and
securities specified by the Pledgor as qualifying as Margin and equal in value
to the Aggregate Margin Requirement are to be identified on the Custodian's
books and records as pledged to the Secured Party. The Custodian will hold the
Margin in, and credit the Margin to, the Special Custody Account, separate and
apart from any other property of the Pledgor that may be held by the Custodian,
subject to the interest therein of the Secured Party as the Pledgee thereof in
accordance with the terms of the Agreement. The Custodian continuously
represents that Margin will not be subject to any other lien, charge, security
interest or other right or claim of the Custodian or any person claiming through
the Custodian. The Custodian will confirm in writing to the Secured Party and
the Pledgor all pledges, releases, substitutions or distributions of Margin
permitted under the Agreement, and will inform the Secured Party upon request of
the kind and amount of Margin pledged to the Secured Party.

      In the event that (i) the Secured Party advises the Pledgor in an Advice
from the Secured Party that the Secured Party has exercised an Option sold by
the Pledgor and the Pledgor does not promptly notify the Secured Party by
telephone of the Pledgor's intention to comply with the Notice of Exercise by
making payment or delivery, as the case may be, as required under the terms of
such Option plus payment of applicable commissions or other charges; or (ii) the
Pledgor, having received such Notice of Exercise, fails to make such payment or
delivery, or cause such payment or delivery to be made, then the Secured Party
will immediately notify the Pledgor in an Advice from the Secured Party of such
failure to give telephone notice or failure to make payment or delivery, as
applicable, and may, after transmittal of an Advice from the Secured Party of
its intention to do so and only if the Pledgor does not promptly make payment or
delivery to the Secured Party, direct the Custodian to take any action necessary
to fully satisfy Pledgor's obligations to the Secured Party, including any of
the Secured Party's rights and remedies under Part XX of the Schedule.

      With respect to any losses or liabilities, the Custodian shall be
protected in acting pursuant to any instructions from the Pledgor or Advices
from the Secured Party believed by the Custodian in good faith to be genuine and
authorized. The Pledgor agrees to indemnify the Custodian for, and hold it
harmless against, any loss, liability or expense incurred by the Custodian,
without negligence or bad faith on the part of the Custodian, arising out of
this Addendum.

      The Secured Party shall not be liable for any losses, costs, damages,
liabilities or expenses suffered or incurred by the Pledgor as a result of any
actions taken under this Addendum, or any other action taken or not taken by the
Secured Party hereunder for the Pledgor's account at the Pledgor's direction or
otherwise, except to the extent that such loss, cost, damage, liability or
expense is the result of the Secured Party's own recklessness, willful
misconduct or bad faith.

      The Pledgor continuously represents and warrants to the Secured Party that
securities included at any time in the Margin shall be in good deliverable form
(or Custodian shall have the unrestricted power to put such securities into

                                        2
<PAGE>

good deliverable form) in accordance with the requirements of such exchanges as
may be the primary market or markets for such securities. Each of the Pledgor,
the Secured Party and the Custodian continuously represents and warrants that:

a)    it has duly executed and delivered this Addendum, and has all requisite
      power, authority and approvals to enter into and perform its obligations
      hereunder; and

b)    this Addendum is its valid and legally binding obligation, enforceable
      against it in accordance with its terms, subject to the effect of
      bankruptcy, insolvency, reorganization, moratorium and other similar laws
      relating to or affecting creditors' rights generally and to general
      equitable principles.

      The Secured Party and the Pledgor hereby acknowledge that the Custodian
holds securities and cash as custodian for its customers through sub-custodians,
depositaries and deposit-taking banks which maintain omnibus accounts on behalf
of customers of the Custodian. Securities held in the Special Custody Account
may be held at the Depository Trust Company or other book-entry depository
systems in the account of the Custodian, save that Margin denominated in
currencies other than US Dollars may be held by a sub-custodian for the
Custodian other than in book-entry form. U.S. Treasury securities shall be held
in a Treasury/Reserve Automated Debt Entry System ("TRADES") Participant's
securities account of the Custodian or of the Custodian's sub-custodian for the
account of the Custodian at the Federal Reserve Bank.

      A monthly statement will be provided by the Custodian to the Secured Party
and the Pledgor listing all Margin held in the Special Custody Account. The
Custodian will also advise the Secured Party upon request, at any time, of the
kind and amount of Margin pledged to the Secured Party. It is agreed that,
notwithstanding any language to the contrary in Custodian's form of
confirmation, the Custodian holds the Margin as agent of the Secured Party as
pledgee hereunder, not as escrow agent. The Custodian makes no representations
as to the existence, perfection or enforceability of any security interest,
charge, lien or other rights of the Pledgor in or to the Margin.

      The Pledgor shall pay the Custodian as compensation for its services
pursuant to this Addendum such compensation as may from time to time be agreed
upon in writing between the Pledgor and the Custodian.

      No amendment to this Addendum shall be effective unless in writing and
signed by an authorized officer of each of the Secured Party, the Pledgor, and
the Custodian.

      This Addendum may be executed in one or more counterparts, all of which
together shall constitute but one and the same instrument.

      Any of the parties hereto may terminate the custodial relationship by
notice, given at least 10 business days prior to the date of such intended
termination, in writing to the other parties hereto; provided, however, that
should the Custodian or the Pledgor seek to terminate, then the Pledgor must
designate a replacement Custodian, which the Secured Party has, in the exercise
of its sole discretion, approved. Custodian agrees to remain as the Custodian
until such time as a replacement Custodian has been approved and such
replacement Custodian has agreed to the terms of its service hereunder and under
the Agreement.

                                        3
<PAGE>

Written communications hereunder shall be sent in the manner specified in the
Agreement addressed:

      (a)   If to Custodian, to:
            Morgan Stanley DW, Inc.
            [please provide]

      (b)   If to the Pledgor, to:
            Demeter Management Corporation on behalf of
            Morgan Stanley Spectrum Strategic, L.P.
            [please provide]

      (c)   If to the Secured Party, to:
            Morgan Stanley & Co. Incorporated
            1585 Broadway
            4th floor New York, New York 10036
            Attention: Foreign Exchange Trading Desk
            Phone: (212) 761-2700
            Fax:   (212) 761-0296

      This Addendum will be governed by the laws of the State of New York
applicable to transactions entered into and to be performed wholly within the
State of New York.

                                    MORGAN STANLEY SPECTRUM STRATEGIC, L.P.
                                    By: Demeter Management Corporation

                                    /s/ Jeffrey A. Rothman
                                    ------------------------------------------
                                    Name:
                                         -------------------------------------
                                    Title:
                                          ------------------------------------

                                    MORGAN STANLEY CAPITAL GROUP INC.

                                    By: /s/ G. William Brown, Jr.
                                    Name:
                                         -------------------------------------
                                    Title:
                                          ------------------------------------

                                    MORGAN STANLEY DW, INC.
                                    (for purposes of this Addendum)

                                    By:/s/ Jeffrey A. Rothman
                                       ---------------------------------------
                                    Name:
                                         -------------------------------------
                                    Title:
                                          ------------------------------------

                                        4EXHIBIT 10.56
                                  -------------

                     DIRECTOR INCENTIVE RETIREMENT AGREEMENT

      THIS AGREEMENT is made this 1st day of September, 2004, by and between The
First  National Bank of  Litchfield,  a national  bank,  located in  Litchfield,
Connecticut (the "Company"), and KATHLEEN A. KELLEY (the "Director").

                                  INTRODUCTION

      In an effort to reward past service,  encourage  continued  service on the
Company's Board of Directors,  and as a method to attract future Directors,  the
Company is willing to provide to the Director a deferred incentive  opportunity.
The Company will pay the benefits from its general assets.

                                    AGREEMENT

      The Director and the Company agree as follows:

                                    Article 1
                                   Definitions

      1.1 Definitions.  Whenever used in this Agreement, the following words and
phrases shall have the meanings specified:

            1.1.1 "Annual Fees" means the Board of Director  retainer  fees, the
      Board of Director  meeting fees and the Board of Director  committee  fees
      earned by the Director during the Plan Year.

            1.1.2   "Change  of  Control"   means  a   reorganization,   merger,
      consolidation or sale of  substantially  all of the assets of the Company,
      or a similar transaction in which the Company is not the resulting entity;
      or individuals  who constitute the Incumbent  Board (as herein defined) of
      the Company  cease for any reason to  constitute a majority  thereof.  For
      these  purposes,  "Incumbent  Board"  means  the  members  of the Board of
      Directors of the Company on the effective date of the Plan,  provided that
      any person becoming a member of the Board of Directors  subsequent to such
      effective  date,  whose  election  was  approved  by a  vote  of at  least
      three-quarters  of the members of the Board of  Directors  comprising  the
      Incumbent   Board,  or  whose   nomination  for  election  by  members  or
      stockholders was approved by the same nominating  committee  serving under
      an Incumbent Board,  shall be considered as though he were a member of the
      Incumbent Board.

            1.1.3 "Code" means the Internal Revenue Code of 1986, as amended.

            1.1.4  "Deferral  Account"  means the  Company's  accounting  of the
      Director's accumulated Deferrals plus accrued interest.

            1.1.5  "Disability"  means  the  Director's   inability  to  perform
      substantially all normal duties of the Director's position,  as determined
      by the Company's Board of Directors in its sole discretion. As a condition
      to any  benefits,  the Company may require the  Director to submit to such
      physical or mental  evaluations  and tests as the Board of Directors deems
      appropriate.

                                       38
<PAGE>

            1.1.6 "Early  Retirement  Date" means the date that the Director has
      terminated  service before his 72nd birthday  provided he has completed at
      least 10 Years of Service.

            1.1.7  "Earnings"  means the  Company's  reported  Net Income  after
      taxes.

            1.1.8 "Earnings Growth" means the percentage change in the Company's
      Earnings over a one-year period, measured on December 31 of each year.

            1.1.9 "Effective Date" means the date first written above.

            1.1.10 "Election Form" means the Form attached as Exhibit 1.

            1.1.11   "Extraordinary  Items"  means  those  items  recognized  by
      Generally   Accepted   Accounting   Principles   as   extraordinary   that
      substantially  affect  shareholder  equity  and/or the  Company's  assets.
      Examples of such items are mergers,  acquisitions,  stock splits and other
      items of that nature.

            1.1.12  "Growth of Stock  Rate" means the  percentage  change in the
      Company's fair market value common stock price ("Stock  Price") over a one
      year  period,  measured  on December  31 of each year,  with a  guaranteed
      minimum of 4% and a maximum of 15%, cumulatively.

            1.1.13 "Return On Equity" means the Company's Earnings, adjusted for
      Extraordinary  Items,  divided by the Company's common stock equity at the
      end of the same fiscal year.

            1.1.14 "Normal Retirement Age" means the Director's 72nd birthday.

            1.1.15  "Normal  Retirement  Date"  means  the  later of the  Normal
      Retirement Age or Termination of Service.

            1.1.16  "Plan Year" means the calendar  year.  The initial Plan Year
      shall be a short Plan Year  commencing on the Effective Date and ending on
      December 31 of the same year.

            1.1.17  "Termination of Service" means the Director  ceasing to be a
      member of the Company's Board of Directors for any reason whatsoever.

            1.1.18  "Years of Service"  means the total  number of  twelve-month
      periods  during  which  the  Director  served  on the  Company's  Board of
      Directors  on a  full-time  basis,  inclusive  of any  approved  leave  of
      absence.

                                       39
<PAGE>

                                    Article 2
                                    Incentive

      2.1  Incentive  Award.  Return On Equity (the "ROE") and  Earnings  Growth
determined as of December 31 of each plan year shall  determine  the  Director's
Incentive  Award  Percentage,  in accordance  with the attached  Schedule A. The
chart on  Schedule  A is  specifically  subject to change  annually  at the sole
discretion  of  the  Company's  Board  of  Directors.  The  Incentive  Award  is
calculated  annually by taking the  Director's  Annual Fees for the Plan Year in
which the ROE and  Earnings  Growth was  calculated  times the  Incentive  Award
Percentage.

      2.2 Incentive  Deferral.  On March 1 following each Plan Year, the Company
shall declare and pay the Incentive  Award in the form of  compensation  and the
Director shall defer such amount to the Deferral Account.

                                    Article 3
                                Deferral Account

      3.1  Establishing  and Crediting.  The Company shall  establish a Deferral
Account on its books for the Director,  and shall credit to the Deferral Account
the following amounts:

            3.1.1 Deferrals.  The Incentive Deferral as determined under Article
      2.

            3.1.2 Interest.  On March 1 following each Plan Year and immediately
      prior to the payment of any  benefits,  interest  on the  account  balance
      since the preceding  credit under this Section  3.1.2,  at an annual rate,
      compounded  annually,  equal  to the  Growth  of  Stock  Rate for the same
      period.

      3.2 Statement of Accounts. The Company shall provide to the Director,
within one hundred twenty (120) days after each Plan Year, a statement setting
forth the Deferral Account balance.

      3.3 Accounting  Device Only.  The Deferral  Account is solely a device for
measuring amounts to be paid under this Agreement. The Deferral Account is not a
trust fund of any kind.  The  Director  is a general  unsecured  creditor of the
Company for the payment of  benefits.  The benefits  represent  the mere Company
promise to pay such  benefits.  The  Director's  rights  are not  subject in any
manner  to  anticipation,   alienation,  sale,  transfer,   assignment,  pledge,
encumbrance, attachment, or garnishment by the Director's creditors.

      3.4 Hardship.  If an unforeseeable  financial  emergency  arising from the
death of a family  member,  divorce,  sickness,  injury,  catastrophe or similar
event  outside the control of the  Director  occurs,  the  Director,  by written
instructions to the Company, may reduce future deferrals under this Agreement.

                                    Article 4
                                Lifetime Benefits

      4.1 Normal Retirement  Benefit.  If the Director  terminates service on or
after the Normal  Retirement Age for reasons other than death, the Company shall
pay to the Director the benefit described in this Section

                                       40
<PAGE>

4.1 in lieu of any other benefit under this Agreement.

            4.1.1 Amount of Benefit.  The benefit  under this Section 4.1 is the
      Deferral Account balance on the Director's Normal Retirement Date.

            4.1.2  Payment of Benefit.  The Company shall pay the benefit to the
      Director commencing on the first day of the month following the Director's
      Normal Retirement Date in the form elected by the Director on the Election
      Form.  If the  Director  elects  to  receive  payments  in  equal  monthly
      installments,  the  Company  shall  continue  to  credit  interest  on the
      remaining account balance during any applicable  installment  period fixed
      at the rate in effect under  Section  3.1.2 on the date of the  Director's
      Termination of Service.

      4.2 Early Retirement  Benefit.  If the Director  terminates  service on or
after the Early  Retirement  Date and before the Normal  Retirement Age, and for
reasons other than Change of Control, death or Disability, the Company shall pay
to the Director the benefit  described in this 4.2 in lieu of any other  benefit
under this Agreement.

            4.2.1 Amount of Benefit.  The benefit  under this Section 4.2 is the
      Deferral Account balance on the Director's Early Retirement Date.

            4.2.2  Payment of Benefit.  The Company shall pay the benefit to the
      Director  in the form  and on the  date  elected  by the  Director  on the
      Election  Form. If the Director  elects the Deferred  Payment Option or to
      receive payments in equal monthly installments, the Company shall continue
      to credit interest on the remaining  account balance during any applicable
      installment  period fixed at the rate in effect under Section 3.1.2 on the
      date of the Director's Termination of Service.

            4.2.3 Deferred Payment Option.  Under this Section 4.2, the Director
      may elect to defer payment of his Early Retirement  Benefit until the date
      elected by the Director on the Election  Form, not to exceed the first day
      of the month following his Normal Retirement Age.

      4.3 Early Termination  Benefit.  If the Director terminates service before
the Early Retirement Age or Normal  Retirement Age for reasons other than Change
of Control,  death or  Disability,  the Company  shall pay to the  Director  the
benefit described in the 4.3 in lieu of any other benefits under this Agreement.

            4.3.1 Amount of Benefit.  The benefit  under this Section 4.3 is the
      vested  portion  of  the  Deferral   Account  balance  on  the  Director's
      Termination of Service.

            4.3.2 Vesting of Awards. For purposes of this Section 4.3, Incentive
      Awards  will vest 20% per year from the date the award was  declared.  The
      Interest credited to each Incentive Award will also vest 20% per year from
      the date the award was declared.

            4.3.3  Payment of Benefit.  The Company shall pay the benefit to the
      Director in a single lump sum within 60 days after Termination of Service.

      4.4 Disability  Benefit. If the Director terminates service for Disability
prior to the Early  Retirement Age or Normal  Retirement  Age, the Company shall
pay to the  Director  the benefit  described  in this Section 4.4 in lieu of any
other benefit under this Agreement.

                                       41
<PAGE>

            4.4.1 Amount of Benefit.  The benefit  under this Section 4.4 is the
      Deferral Account balance at Termination of Service.

            4.4.2  Payment of Benefit.  The Company shall pay the benefit to the
      Director commencing on the first day of the month following the Director's
      Normal  Retirement Age in the form elected by the Director on the Election
      Form.  If the  Director  elects  to  receive  payments  in  equal  monthly
      installments,  the  Company  shall  continue  to  credit  interest  on the
      remaining account balance during any applicable  installment  period fixed
      at the rate in effect under  Section  3.1.2 on the date of the  Director's
      Termination of Service.

      4.5 Change of Control Benefit. Upon a Change of Control while the Director
is in the active  service of the Company,  the Company shall pay to the Director
the benefit  described  in this Section 4.5 in lieu of any other  benefit  under
this Agreement.

            4.5.1  Amount of  Benefit.  The  benefit  under  Section  4.5 is the
      Deferral  Account  balance on the date of the  Director's  Termination  of
      Service.

            4.5.2  Payment of Benefit.  The Company shall pay the benefit to the
      Director in a lump-sum  payment no later than 60 days after the Director's
      Termination of Service.

      4.6 Hardship  Distribution.  Upon the Company's  determination  (following
petition by the  Director)  that the  Director  has  suffered  an  unforeseeable
financial emergency as described in Section 3.4, the Company shall distribute to
the Director 100% of the vested portion of the Deferral Account balance.

                                    Article 5
                                 Death Benefits

      5.1 Death During Active Service.  If the Director dies while in the active
service of the Company, the Company shall pay to the Director's  beneficiary the
benefit described in this Section 5.1.

            5.1.1  Amount of  Benefit.  The  benefit  under  Section  5.1 is the
      greater  of the  Deferral  Account  balance  or the  projected  retirement
      benefit as per the attached Schedule B.

            5.1.2  Payment of Benefit.  The Company shall pay the benefit to the
      beneficiary  in the form elected by the Director on the Election  Form. If
      the Director  elects payments in equal monthly  installments,  the Company
      shall continue to credit interest on the remaining  account balance during
      any  applicable  installment  period  fixed  at the rate in  effect  under
      Section 3.1.2 on the date of the Director's Termination of Service.

      5.2 Death  During  Benefit  Period.  If the  Director  dies after  benefit
payments  have  commenced  under this  Agreement  but before  receiving all such
payments,  the  Company  shall  pay the  remaining  benefits  to the  Director's
beneficiary  at the same time and in the same  amounts they would have been paid
to the Director had the Director survived.

      5.3 Death  After  Termination  of  Service  But  Before  Benefit  Payments
Commence.  If the Director is entitled to benefit payments under this Agreement,
but dies prior to the commencement of said benefit  payments,  the Company shall
pay the benefit  payments to the  Director's  beneficiary  that the Director was
entitled to prior to death except that the benefit  payments  shall  commence on
the first day of the month

                                       42
<PAGE>

following the date of the Director's death.

                                    Article 6
                                  Beneficiaries

      6.1 Beneficiary  Designations.  The Director shall designate a beneficiary
by filing a written  designation  with the  Company.  The Director may revoke or
modify  the  designation  at any  time by  filing  a new  designation.  However,
designations  will only be  effective  if signed by the Director and accepted by
the  Company  during  the  Director's  lifetime.   The  Director's   beneficiary
designation shall be deemed automatically revoked if the beneficiary predeceases
the Director,  or if the Director names a spouse as beneficiary and the marriage
is  subsequently  dissolved.  If the Director  dies without a valid  beneficiary
designation, all payments shall be made to the Director's estate in a lump sum.

      6.2 Facility of Payment.  If a benefit is payable to a minor,  to a person
declared  incompetent,  or to a person  incapable of handling the disposition of
his or her  property,  the Company may pay such benefit to the  guardian,  legal
representative  or person having the care or custody of such minor,  incompetent
person or  incapable  person.  The Company may  require  proof of  incompetence,
minority or guardianship as it may deem appropriate prior to distribution of the
benefit.  Such  distribution  shall  completely  discharge  the Company from all
liability with respect to such benefit.

                                    Article 7
                               General Limitations

      Notwithstanding  any  provision  of this  Agreement to the  contrary,  the
Company shall not pay any benefit under this Agreement:

      7.1 Excess  Parachute  Payment.  To the extent the benefit would create an
excise tax under the excess parachute rules of Section 280G of the Code.

      7.2 Suicide.  If the Director  commits  suicide within two years after the
date of this Agreement, or if the Director has made any material misstatement of
fact on any application for life insurance purchased by the Company.

                                    Article 8
                          Claims and Review Procedures

      8.1 Claims  Procedure.  The Company shall notify any person or entity that
makes a claim against the Agreement (the  "Claimant") in writing,  within ninety
(90)  days  of  Claimant's  written  application  for  benefits,  of  his or her
eligibility or noneligibility  for benefits under the Agreement.  If the Company
determines that the Claimant is not eligible for benefits or full benefits,  the
notice shall set forth (1) the specific reasons for such denial,  (2) a specific
reference to the provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the Claimant
to perfect his or her claim,  and a description of why it is needed,  and (4) an
explanation of the  Agreement's  claims review  procedure and other  appropriate
information as to the steps to be taken if the Claimant wishes

                                       43
<PAGE>

to have the claim  reviewed.  If the Company  determines  that there are special
circumstances  requiring  additional time to make a decision,  the Company shall
notify  the  Claimant  of the  special  circumstances  and the  date by  which a
decision is expected to be made, and may extend the time for up to an additional
ninety-day period.

      8.2 Review Procedure.  If the Claimant is determined by the Company not to
be eligible for benefits, or if the Claimant believes that he or she is entitled
to greater or different  benefits,  the Claimant  shall have the  opportunity to
have such claim reviewed by the Company by filing a petition for review with the
Company  within  sixty  (60) days  after  receipt  of the  notice  issued by the
Company.  Said  petition  shall state the  specific  reasons  which the Claimant
believes  entitle him or her to benefits  or to greater or  different  benefits.
Within sixty (60) days after receipt by the Company of the petition, the Company
shall afford the Claimant (and counsel, if any) an opportunity to present his or
her position to the Company orally or in writing,  and the Claimant (or counsel)
shall have the right to review the pertinent documents. The Company shall notify
the Claimant of its decision in writing  within the  sixty-day  period,  stating
specifically  the basis of its  decision,  written in a manner  calculated to be
understood by the Claimant and the specific provisions of the Agreement on which
the  decision is based.  If,  because of the need for a hearing,  the  sixty-day
period  is not  sufficient,  the  decision  may be  deferred  for up to  another
sixty-day  period at the  election of the Company,  but notice of this  deferral
shall be given to the Claimant.

                                    Article 9
                           Amendments and Termination

      This  Agreement may be amended or terminated  only by a written  agreement
signed by the Company.

                                   Article 10
                                  Miscellaneous

      10.1  Binding  Effect.  This  Agreement  shall bind the  Director  and the
Company,   and   their   beneficiaries,    survivors,   executors,   successors,
administrators and transferees.

      10.2 No  Guarantee  of  Service.  This  Agreement  is not a  contract  for
services.  It does not give the  Director  the right to remain a Director of the
Company,  nor does it  interfere  with the  shareholders'  rights to replace the
Director.  It also  does not  require  the  Director  to remain a  Director  nor
interfere with the Director's right to terminate services at any time.

      10.3  Non-Transferability.  Benefits under this Agreement  cannot be sold,
transferred, assigned, pledged, attached or encumbered in any manner.

      10.4  Reorganization.  The Company shall not merge or consolidate  into or
with another company, or reorganize,  or sell substantially all of its assets to
another company,  firm, or person unless such succeeding or continuing  company,
firm, or person agrees to assume and  discharge the  obligations  of the Company
under this Agreement.  Upon the occurrence of such event,  the term "Company" as
used in this  Agreement  shall be deemed to refer to the  successor  or survivor
company.

      10.5 Tax  Withholding.  The  Company  shall  withhold  any taxes  that are
required to be withheld from the benefits provided under this Agreement.

      10.6 Applicable  Law. The Plan and all rights  hereunder shall be governed
by and construed

                                       44
<PAGE>

according to the laws of Connecticut, except to the extent preempted by the laws
of the United States of America.

      10.7  Unfunded  Arrangement.  The  Director  and  beneficiary  are general
unsecured  creditors  of the  Company  for the  payment of  benefits  under this
Agreement.  The benefits  represent  the mere promise by the Company to pay such
benefits.  The rights to benefits are not subject in any manner to anticipation,
alienation,  sale, transfer,  assignment,  pledge,  encumbrance,  attachment, or
garnishment  by  creditors.  Any insurance on the  Director's  life is a general
asset of the Company to which the Director and beneficiary  have no preferred or
secured claim.

      10.8 Recovery of Estate Taxes. If the Director's  gross estate for federal
estate tax  purposes  includes  any amount  determined  by  reference  to and on
account of this  Agreement,  and if the beneficiary is other than the Director's
estate,  then the  Director's  estate  shall be  entitled  to  recover  from the
beneficiary  receiving such benefit under the terms of the Agreement,  an amount
by which the total estate tax due by the  Director's  estate,  exceeds the total
estate tax which  would have been  payable if the value of such  benefit had not
been included in the Director's  gross estate.  If there is more than one person
receiving such benefit, the right of recovery shall be against each such person.
In the event the  beneficiary  has a liability  hereunder,  the  beneficiary may
petition  the  Company  for a lump sum  payment  in an amount  not to exceed the
beneficiary's liability hereunder.

      10.9 Entire  Agreement.  This Agreement  constitutes the entire  agreement
between the Company and the Director as to the subject matter hereof.  No rights
are  granted  to the  Director  by virtue of this  Agreement  other  than  those
specifically set forth herein.

      10.10 Administration. The Company shall have powers which are necessary to
administer this Agreement, including but not limited to:

            10.10.1  Interpreting the provisions of the Agreement;

            10.10.2  Establishing  and revising the method of accounting for the
                     Agreement;

            10.10.3  Maintaining a record of benefit payments; and

            10.10.4  Establishing  rules and  prescribing any forms necessary or
                     desirable to administer the Agreement.

      10.11 Designated Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if  applicable,  the Company shall be the named  fiduciary
and plan administrator under the Agreement.  The named fiduciary may delegate to
others certain aspects of the management and operation  responsibilities  of the
plan including the service of advisors and the delegation of ministerial  duties
to qualified individuals.

      IN WITNESS  WHEREOF,  the Director and a duly  authorized  Company officer
have signed this Agreement.

DIRECTOR:                           COMPANY:

                                    The First National Bank of Litchfield

/s/ Kathleen A. Kelley              By /s/ Joseph J. Greco
------------------------------      -----------------------------------
KATHLEEN A. KELLEY                  Joseph J. Greco
                                    Title  President and Chief Executive Officer

                                       45
<PAGE>

                                  EXHIBIT 1 TO

DIRECTOR INCENTIVE RETIREMENT AGREEMENT

                           Normal Retirement Benefits
                           --------------------------

I elect to receive my Normal Retirement Benefits under Section 4.1.2 of the
Agreement in the following form:

[Initial One]

|X| Lump sum

|_| Equal monthly installments for 120 months.

                            Early Retirement Benefits
                            -------------------------

I elect to receive my Early Retirement Benefits under Section 4.2.2 of the
Agreement in the following form:

[Initial One]

|X| Lump sum, payable on the first day of the month following my Early
Retirement Date.

|_| Deferred Lump sum, payable on _____________________________.

|_| Equal monthly installments for 120 months commencing on the first day of the
month following my Early Retirement Date.

|_| Deferred Equal monthly installments for 120 months commencing on
____________________.

                               Disability Benefits
                               -------------------

I elect to receive my Disability Benefits under Section 4.4.2 of the Agreement
in the following form:

[Initial One]

|X| Lump sum

|_| Equal monthly installments for 120 months.

                                 Death Benefits
                                 --------------

I elect to have my Death Benefit paid under Section 5.1.2 of the Agreement in
the following form:

[Initial One]

|X| Lump sum

|_| Equal monthly installments for 120 months.

Signature /s/ Kathleen A. Kelley
         -----------------------

Date 9/1/04

Accepted by the Company this 1st day of September , 2004.

By /s/ Joseph J. Greco .
   -------------------
Title President and Chief Executive Officer .
      ---------------------------------------

                                       46
<PAGE>

                             BENEFICIARY DESIGNATION

                      The First National Bank of Litchfield
                     DIRECTOR INCENTIVE RETIREMENT AGREEMENT

                               KATHLEEN A. KELLEY

I  designate  the  following  as  beneficiary  of any death  benefits  under the
Director Incentive Retirement Agreement:

Primary: Maureen K. Perugini
         -----------------------------------------------------------------------
Contingent: Lisa M. Perugini
            --------------------------------------------------------------------

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

Note: To name a trust as beneficiary,  please provide the name of the trustee(s)
      and the exact name and date of the trust agreement.

I understand  that I may change these  beneficiary  designations by filing a new
written designation with the Company. I further understand that the designations
will be automatically  revoked if the beneficiary  predeceases me, or, if I have
named my spouse as beneficiary and our marriage is subsequently dissolved.

Signature /s/ Kathleen A. Kelley
          ----------------------------

Date September 1, 2004
     ----------------------------------

Accepted by the Company this 1st day of September, 2004.

By /s/ Joseph J. Greco .
   ---------------------

Title President and Chief Executive Officer .
      ---------------------------------------

11/11/04 9:22 AM

                                       47
<PAGE>

                                   Schedule A

                      Deferred Bonus as a % of Annual Fees

<TABLE>
<CAPTION>
                      -------------------------------------------------------------------------------
<S>                       <C>           <C>          <C>          <C>          <C>          <C>
            14.0%         34.5          37.8         40.8         43.9         47.1         50.2
                      -------------------------------------------------------------------------------
            13.0%         32.3          34.9         38.2         41.1         44.0         47.0
                      -------------------------------------------------------------------------------
            12.0%         30.1          32.6         35.5         38.3         41.0         43.7
Earnings              -------------------------------------------------------------------------------
 Growth     11.0%         27.8          30.3         32.9         35.4         38.0         40.5
                      -------------------------------------------------------------------------------
            10.0%         25.6          28.0         30.3         32.6         34.9         37.2
                      -------------------------------------------------------------------------------
             9.0%         23.4          25.8         27.6         29.8         31.9         34.0
                      -------------------------------------------------------------------------------
             8.0%         21.2          22.5         25.0         26.9         28.8         30.8
                      -------------------------------------------------------------------------------
             7.0%         18.9          19.6         22.4         24.1         25.8         27.5
                      -------------------------------------------------------------------------------
             6.0%         16.7          17.6         19.7         21.3         22.8         24.3
                      -------------------------------------------------------------------------------
             5.0%         14.5          15.8         17.1         18.4         19.7         21.1
                      -------------------------------------------------------------------------------
                          11.0%         12.0%        13.0%        14.0%        15.0%        16.0%
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]