Document:

<PAGE>

                                                                    EXHIBIT 10.6

THIS LEASE is made on the date specified in the Lease Details between the
Landlord, the Tenant, the Surety and the Head Landlord.

THIS DEED WITNESSES as follows.

1.    INTERPRETATION

1.1   In this Lease, except where the context otherwise requires:

      "THE BUILDING" means the land and building at 1 Oliver's Yard, London EC2
      demised by the Head Lease of which the demised premises form part;

      "CONDUITS" means tanks, pipes, sprinklers, wires, cables, drains, meters,
      ducts, trunking, sewers, gutters and associated apparatus and other
      similar items;

      "THE DEMISED PREMISES" means the Premises specified in the Lease Details
      as more particularly described in Part 1 of Schedule 1;

      "THE ENDING OF THE TERM" means the coming to an end of the term in any way
      including expiration, termination, surrender, frustration and forfeiture;

      "THE FIRST LEASE" means a Lease of part of the Second Floor of the
      Building dated 9th September 2004 and made between the Landlord (1) the
      Tenant (2) Penson Financial Services Inc (3) and Derwent Valley Central
      Limited (4);

      "GROUP COMPANY" means a body corporate which is a member of the same group
      of companies as the Tenant within the meaning of Section 42 of the
      Landlord and Tenant Act 1954;

      "THE HEAD LANDLORD" means the party so described in the Lease Details and
      includes the person for the time being entitled to the reversion
      immediately expectant on the determination of the term of years created by
      the Head Lease or if the Head Lease comes to an end (howsoever caused) the
      Landlord;

      "THE HEAD LEASE" means a lease dated 27th March, 2001 and made between
      Colebrook Estates Limited (1) and Globix Limited and Globix Corporation
      (2) whereby the Building was demised to Globix Limited and Globix
      Corporation for a term of 30 years commencing on 19th March, 2001 subject
      to the payment of the rent thereby reserved and the observance and
      performance of the lessee's covenants and conditions therein contained and
      under which the Landlord holds the Building at the date of this Lease;

      "THE INSURED RISKS" means the risks against which the Head Landlord
      covenants to insure pursuant to the Head Lease;

      "THE LANDLORD" means the Landlord specified in the Lease Details or such
      other person as may for the time being be entitled to the reversion
      immediately expectant on the ending of the term;

<PAGE>

                                       2

      "THIS LEASE" means this deed and any instrument made under it or
      supplemental to it;

      "OPEN MARKET RENTAL VALUE" means the annual rent at which the demised
      premises could reasonably be expected to be let as a whole on the open
      market at the review date assuming that at that date:

      (i)    the demised premises are fully carpeted and fit for the immediate
             occupation and use of the hypothetical tenant and all services are
             available;

      (ii)   any concession or consideration which might reasonably be given to
             the hypothetical tenant on a new letting in the open market for
             fitting out has been given and has been exhausted and no reduction
             is to be made to take account of it;

      (iii)  any rent free period which might reasonably be given to the
             hypothetical tenant on a new letting in the open market for fitting
             out has been given and has expired and no reduction is to be made
             to take account of it;

      (iv)   no work has been carried out to the Building or its services
             (unless by the Landlord or the Head Landlord) which has diminished
             the rental value of the demised premises;

      (v)    if the Building or any of its services have been destroyed or
             damaged it has been fully restored;

      (vi)   the demised premises are available to let by a willing landlord to
             a willing tenant with vacant possession without a premium but
             subject to the provisions of this Lease (other than the amount of
             the principal yearly rent but including the provisions for review)
             for a term of ten years commencing on the review date; and

      (vii)  the covenants in this Lease on the part of the tenant have been
             fully performed and observed

      there being disregarded:

      (viii) any goodwill attached to the Building by reason of the carrying on
             there of business by the Tenant any lawful undertenant any lawful
             occupier or any of their predecessors in title;

      (ix)   any effect on rent of any improvement carried out to the demised
             premises with the consent of the Landlord (where required and
             otherwise than in pursuance of an obligation to the Landlord or its
             predecessors in title) to the extent only that such improvement or
             works were completed either during the Term or during any period of
             occupation prior to the commencement of the Term arising out of an
             agreement to grant this Lease provided that any works carried out
             pursuant to a statute or legal obligation shall not be regarded as
             having been carried out in pursuance of an obligation to the
             Landlord;

<PAGE>

                                       3

      (x)   any effect on rent of the fact that the Tenant any lawful
            undertenant any lawful occupier or any of their respective
            predecessors in title have been in occupation of the demised
            premises or any other part of the Building;

      (xi)  so far as may be permitted by law all Statutes which would otherwise
            restrict or reduce the amount of rent payable;

      "PERMITTED USE" means in respect of the second floor, use within Class
      B1(a) of the Schedule to the Town and Country Planning (Use Classes) Order
      1987 and in respect of the basement, ancillary storage;

      "THE PRINCIPAL YEARLY RENT" means the Yearly Rent specified in the Lease
      Details or else the principal yearly rent ascertained in accordance with
      Schedule 4;

      "THE REVIEW DATE" means the Review Date specified in the Lease Details;

      "THE SERVICE CHARGE RENT" has the meaning ascribed to it in Schedule 7;

      "STATUTE" means:

      (i)   an Act of Parliament and sub-ordinate legislation; and

      (ii)  a law, decree or direction of the European Community or other
            supranational body having effect as law in the United Kingdom

      now or from time to time in force;

      "THE SURETY" means the party so described in the Lease Details;

      "THE TENANT" means the Tenant specified in the Lease Details and its
      successors in title and assigns; and

      "THE TERM" means the term of years granted by this Lease.

1.2   In this Lease, unless otherwise specified:

(A)   a reference to a clause or a schedule is a reference to a clause of or a
      schedule to this Lease;

(B)   a reference to a paragraph is a reference to a paragraph of the schedule
      in which the reference appears and a reference to a sub-paragraph is to a
      sub-paragraph of the paragraph in which the reference appears;

(C)   headings to clauses and paragraphs are for convenience only and do not
      affect the interpretation of this Lease;

(D)   a covenant by the Tenant not to do any act, matter or thing includes a
      covenant not to cause or knowingly permit the doing of it;

<PAGE>

                                       4

(E)   a reference to a particular Statute (other than the Town and Country
      Planning (Use Classes) Order 1987) shall be construed as a reference to
      that Statute as it may have been or may in the future be amended, modified
      or re-enacted and to any regulation, statutory instrument, order, byelaw,
      direction or other provision that may have been made or may in the future
      be made under it;

(F)   where a party consists of two or more persons the obligations of such
      persons are joint and several;

(G)   land shown edged or coloured on the Plans is shown for the purpose of
      identification only;

(H)   a reference to any right reserved to or exercisable by the Landlord or any
      right exercisable by the Tenant in common with the Landlord shall be
      construed as including (where appropriate) the exercise of such right:

      (i)   by the Head Landlord and any mortgagee of the Landlord or the Head
            Landlord and all persons authorised by them; and

      (ii)  in common with all other persons having a like right.

1.3   This Lease incorporates the Lease Details first before written.

2.    DEMISE

      In consideration of the rents reserved by this Lease and the covenants on
      the part of the Tenant and the Surety the Landlord demises with full title
      guarantee (but excluding any covenant that the obligations contained in
      the Head Lease relating to the state and condition of the demised premises
      have been complied with) unto the Tenant all those the demised premises
      subject to the matters contained or referred to in the deeds and documents
      listed in Schedule 8 and to hold the demised premises unto the Tenant for
      the Term specified in the Lease Details together with the easements and
      rights specified in Part 2 of Schedule 1 except and reserved to the
      Landlord and all persons authorised by the Landlord or otherwise entitled
      the easements and rights specified in Part 3 of Schedule 1 yielding and
      paying to the Landlord:

      (i)   the principal yearly rent by equal quarterly payments in advance on
            the usual quarter days in every year such payments to be made by
            banker's order or otherwise as the Landlord may reasonably require,
            the first payment in respect of the period commencing on the Rent
            Commencement Date specified in the Lease Details upto the quarter
            day next thereafter to be made on such Rent Commencement Date;

      (ii)  the relevant proportion of the costs and expenses incurred by the
            Landlord in connection with its obligations under Schedule 5 such
            payment to be made within fourteen days of written demand, the first
            payment in respect of the period commencing on the date of this
            Lease to be made on the date of this Lease; and

<PAGE>

                                       5

      (iii) the service charge rent at the times set out in Schedule 7, the
            first payment in respect of the period commencing on the date of
            this Lease upto the quarter day next thereafter to be made on the
            date of this Lease.

3.    TENANT'S COVENANT

      The Tenant covenants with the Landlord in accordance with Schedule 2.

4.    LANDLORD'S COVENANTS

      The Landlord covenants with the Tenant:-

4.1   that subject to the Tenant paying the rents reserved by this Lease and
      observing and performing the covenants on its part the Tenant may
      peaceably hold and enjoy the demised premises during the term without any
      interruption by the Landlord or any person lawfully claiming under or in
      trust for it;

4.2   to pay the rents reserved by the Head Lease and to perform the covenants
      and conditions on the part of the lessee contained in the Head Lease (save
      insofar as the same are the responsibility of the Tenant under this Lease)
      and to indemnify and keep indemnified the Tenant against all actions
      claims proceedings costs and demands arising out of any breach of such
      covenant;

4.3   at the request of the Tenant to use all reasonable endeavours to enforce
      the covenants on the part of the lessor contained in the Head Lease;

4.4   to use reasonable endeavours to obtain any consent required under the Head
      Lease where the Tenant makes application for consent under the Lease; and

4.5   to provide the services referred to in parts 2 and 3 of schedule 7 in
      accordance with, and save as mentioned in, such schedule.

5.    RE-ENTRY

      Without prejudice to any other rights or remedies of the Landlord if:

      (i)   any of the rent reserved by this Lease is in arrears for twenty one
            days after it becomes due (whether or not in the case of the
            principal yearly rent it has been legally demanded); or

      (ii)  there is any breach of any of the Tenant's covenants in this Lease;
            or

      (iii) any of the rents reserved by the First Lease is in arrears for
            twenty one days after it becomes due (whether or not in the case of
            the principal yearly rent it has been legally demanded), or there is
            any breach of the tenant's covenants in the First Lease or any of
            the surety's covenants in the First Lease.

      (iv)  the Tenant:

<PAGE>

                                       6

            (a)   proposes or enters into any scheme, compromise, moratorium or
                  arrangement with any of its creditors; or

            (b)   has an execution, distress, sequestration or other process
                  levied on any of its assets which is not discharged within
                  fourteen days;

      (v)   the Tenant being a company incorporated in the United Kingdom:

            (a)   is struck off the register of companies; or

            (b)   being an unlimited company is registered with limited
                  liability; or

            (c)   has an administrator appointed; or

            (d)   has a petition presented for its winding up or has a winding
                  up order made against it or it otherwise enters into a
                  voluntary winding up or a meeting is convened for the purpose
                  of considering a resolution for its winding up (other than a
                  voluntary winding up of a solvent company for the purpose of
                  amalgamation or reconstruction); or

            (e)   has a receiver or administrative receiver appointed over all
                  or any of its assets or has an encumbrancer take possession or
                  exercise any power of sale over all or any of its assets; or

            (f)   is deemed to be unable to pay its debts within the meaning of
                  section 123 of the Insolvency Act 1986;

      (vi)  the Tenant or any such surety being an individual:

            (a)   has a bankruptcy order made against him; or

            (b)   is the subject of an order or appointment under section 253,
                  273 or 286 of the Insolvency Act 1986; or

            (c)   appears to be unable to pay or to have any reasonable prospect
                  of being able to pay his debts within the meaning of sections
                  267 and 268 of the Insolvency Act 1986;

      (vii) the Tenant being an overseas company, any circumstances exist or
            event occurs with respect to the Tenant or any such surety in any
            jurisdiction which has an effect equivalent or similar to any of
            those mentioned in this clause

      then the Landlord may at any time re-enter the demised premises or any
      part in the name of the whole and forfeit this Lease whereupon this Lease
      and the term created by it shall come to an end.
<PAGE>

                                       7

6.    PROVISIONS

      This Lease incorporates:

      (i)   the insurance provisions in Schedule 5;

      (ii)  the further provisions in Schedule 6; and

      (iii) the service charge provisions in Schedule 7

      and the Landlord and the Tenant covenant with one another to comply with
      their respective obligations in such schedules.

7.    CERTIFICATE

      The parties certify that this Lease is a new tenancy for the purposes of
      the Landlord and Tenant (Covenants) Act 1995.

8.    AGENT FOR SERVICE

8.1   This clause applies to any writ, summons, order, judgment or other process
      issued out of the courts of England and Wales in connection with any
      proceeding, suit or action arising out of or in connection with this Lease
      to the exclusion of any other provision of this Lease relating to the
      service of notices.

8.2   Penson Worldwide, Inc irrevocably agrees that any document to which this
      clause applies may be sufficiently and effectively served on it by service
      on its agent Penson Financial Services Limited, if no replacement agent
      has been appointed and notified to the Landlord pursuant to clause 8.5, or
      on the replacement agent if one has been appointed and notified to the
      Landlord.

8.3   Any such document served pursuant to this clause shall be marked for the
      attention of:

      (i)   Penson Financial Services Limited at the demised premises or such
            other address within England or Wales as may be notified to the
            Landlord by Penson Worldwide, Inc;

      (ii)  such other person as is appointed as agent for service pursuant to
            clause 8.5 at the address notified pursuant to clause 8.5.

8.4   Any such document addressed in accordance with clause 8.3 shall be deemed
      to have been duly served if:

      (i)         left at the specified address, when it is left; or

      (ii)        sent by first class post, three clear days after the date of
                  posting.

<PAGE>
                                       8

8.5   If the agent referred to in clause 8.2 (or any replacement agent appointed
      pursuant to this sub-clause) at any time ceases for any reason to act as
      such, Penson Worldwide, Inc shall appoint a replacement agent to accept
      service having an address for service in England or Wales and shall notify
      the Landlord of the name and address of the replacement agent; failing
      such appointment and notification, the Landlord may by notice to Penson
      Worldwide, Inc appoint such a replacement agent to act on Penson
      Worldwide, Inc's behalf.

8.6   A copy of any document served on an agent pursuant to this clause shall be
      sent by post to Penson Worldwide, Inc at its address for the time being
      for the service of notices and other communications under this Lease, but
      no failure or delay in so doing shall prejudice the effectiveness of the
      service of the document in accordance with the provisions of this clause.

9.    JURISDICTION

9.1   The parties irrevocably agree for the exclusive benefit of the Landlord
      that the courts of England shall have jurisdiction to settle any disputes
      which may arise out of or in connection with this Lease and that
      accordingly any proceedings, suit or action in connection with this Lease
      may be brought in such courts.

9.2   Without prejudice to clause 9.1, Penson Worldwide, Inc further irrevocably
      agrees that any such proceedings, suit or action may be brought in the
      courts of California and submits (and agrees to submit) to the
      non-exclusive jurisdiction of such courts.

9.3   Nothing contained in this clause shall limit the right of the Landlord to
      take such proceedings, suit or action against Penson Worldwide, Inc in any
      other court of competent jurisdiction, nor shall the taking of
      proceedings, suit or action in one or more jurisdictions preclude the
      taking of such proceedings, suit or action in any other jurisdiction,
      whether concurrently or not, to the extent permitted by the law of such
      other jurisdiction.

9.4   Penson Worldwide, Inc irrevocably waives (and irrevocably agrees not to
      raise) any objection which it may have now or hereafter to the laying of
      the venue of any such proceedings, suit or action in any such court as is
      referred to in clause 9.1 or 9.2 and any claim that any such proceedings,
      suit or action have been brought in an inconvenient forum and further
      irrevocably agrees that a judgment in any such proceedings, suit or action
      brought in any court referred to in this clause shall be conclusive and
      binding upon Penson Worldwide, Inc and may be enforced in the courts of
      any other jurisdiction.

9.5   This Lease shall be governed by and construed in accordance with English
      law.

10.   BREAK CLAUSE

10.1  If the Tenant (in this clause 10 meaning Penson Financial Services
      Limited) wishes to determine the Lease on 23rd June 2009 and shall give to
      the Landlord not less than nine months' prior notice in writing and shall
      up to the time of such determination pay the

<PAGE>
                                       9

      rents reserved by this Lease (save for any service charge rent unpaid in
      the case of a bona fide dispute between the parties) then upon the expiry
      of such notice and the delivery up of vacant possession to the Landlord
      this Lease shall immediately cease and determine but without prejudice to
      the respective rights of either party in respect of any antecedent claim
      or breach of covenant provided that any notice served pursuant to this
      clause shall only have effect where it simultaneously serves a notice
      terminating the First Lease in accordance with its terms.

10.2  Time is of the essence in relation to this clause 10.

11.   EXCLUSION ORDER

11.1  By a statutory declaration made on the       day of               2005 in
      the form, or substantially in the form, set out in paragraph 8 of schedule
      2 to the Regulatory Reform (Business Tenancies) (England and Wales) Order
      2003 the Tenant acknowledges that it has been served with a notice in the
      form, or substantially in the form, set out in schedule 1 to that Order.

11.2  Having complied with the requirements of section 38A(3) of the Landlord
      and Tenant Act 1954 the Landlord and Tenant agree that the provisions of
      sections 24 to 28 of that Act are excluded in relation to this Lease.

12.   CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      The parties to this Lease do not intend that any term of this Lease is to
      be enforceable, by virtue of the Contracts (Rights of Third Parties) Act
      1999, by any person who is not a party to this Lease.

13.   HEAD LANDLORD'S CONSENT

      The Head Landlord grants licence for the Landlord to grant this Lease to
      the Tenant.

14.   SURETY'S COVENANT

      The Surety covenants with the Landlord in accordance with Schedule 3.

IN WITNESS whereof the Head Landlord, the Landlord, the Tenant and the Surety
have executed this document as a deed the day and year first before written.

<PAGE>
                                       10

                                   SCHEDULE 1

                                     PART 1

                              THE DEMISED PREMISES

All those internal parts of the second floor of the Building shown edged red on
Plan 1 annexed hereto including:-

(i)    the entrance doors from the common parts of the Building;

(ii)   the doors, frames, equipment and fitments and any glass in the doors of
       the demised premises;

(iii)  the internal plaster or other surfaces of load bearing walls and columns
       within the demised premises and of walls which form boundaries of the
       demised premises;

(iv)   the whole of all non-bearing walls within the demised premises;

(v)    the surfaces of the floor slab and ceiling slab;

(vi)   the raised floor and supports and the void between the floor slab and the
       raised floor;

(vii)  the false ceiling and supports and the void between the ceiling slab and
       the false ceiling;

(viii) all conduits, plant and machinery now or after the date of this deed
       installed in any part of the Building and exclusively serving the demised
       premises;

(ix)   all fixtures and fittings from time to time on the demised premises; and

(x)    all additions and improvements to the demised premises;

but excluding the structural parts, loadbearing framework, roof, foundations,
external walls and the conduits, plant and machinery within but not exclusively
serving the demised premises.

<PAGE>
                                       11

                                     PART 2

                          EASEMENTS AND RIGHTS GRANTED

1.    The right of passage and running of water, soil, gas, electricity in and
      through the conduits in the Building at the date of this Lease and
      presently serving the demised premises and any replacement of such
      conduits.

2.    The right to pass and repass over and along the entrance hall, landings,
      passages and staircases of the Building serving the demised premises and
      intended for the common use of the occupiers of the Building.

3.    The right to use the lifts, plant and machinery in the Building and any
      replacement of such lifts, plant and machinery.

4.    The right to use the male and female lavatory accommodation on the same
      floor of the Building as the demised premises.

5.    The right to have the names of the lawful occupiers of the demised
      premises displayed on the notice board provided by the Landlord for the
      purpose in the ground floor reception hall of the Building and on or
      adjacent to the entrance doors to the demised premises.

6.    The right to pass and repass on foot for emergency purposes only over and
      along the roadway known as Winters Mews to the rear of the Building.

7.    The right (to the extent and is so far as the Landlord is able to grant
      the same) to pass and repass either by foot or with vehicles over and
      along the roadway adjoining the Building and known as Oliver's Yard.

8.    The right to place plant, machinery and telecommunications and other
      communications apparatus (including one domestic sized satellite dish, one
      aerial and one condenser unit) on the roof of the Building within
      designated plant areas subject to compliance with Statute and subject to
      the approval of the Landlord as to the nature, size and location of such
      plant, machinery and telecommunications and other communication apparatus,
      such approval not to be unreasonably withheld or delayed.

<PAGE>
                                       12

                                     PART 3

                         EXCEPTIONS AND RIGHTS RESERVED

1.    The right to erect or alter or to consent to the erection or alteration of
      any building now or from time to time on any adjoining or neighbouring
      property notwithstanding that such erection or alteration may diminish the
      access of light and air enjoyed by the demised premises and the right to
      deal with any such property as it may think fit.

2.    The right of passage and running of water, soil, gas, electricity and of
      all other services or supplies through such conduits as are now or may
      after the date of this Lease be installed in the demised premises and
      serving or capable of serving other parts of the Building or adjoining or
      neighbouring property or any buildings now or after the date of this deed
      erected on such property together with the right to enter upon the demised
      premises to inspect, repair or maintain any such conduits.

3.    The right to enter upon the demised premises in connection with the
      erection, alteration, improvement, repair or maintenance of any such parts
      or property or building or any adjoining or neighbouring property and for
      such purpose to underpin, shore up and bond and tie into the structure of
      the demised premises subject to the persons entering causing as little
      disturbance as reasonably practicable and promptly making good any damage
      caused.

4.    The right to lay or construct new conduits in the demised premises and to
      connect into such conduits as are now or may after the date of this Lease
      be installed in the demised premises (other than conduits capable of
      serving only the demised premises subject to the persons entering causing
      as little disturbance as reasonably practicable and promptly making good
      any damage caused.).

5.    The rights and liberties to enter upon the demised premises in the
      circumstances in which in the covenants by the Tenant contained in this
      Lease the Tenant covenants to permit such entry.

6.    The right temporarily to close any part of the Building other than the
      demised premises, but not so as to deny the Tenant access to and use of
      the demised premises or (so far as is reasonably practicable) the roof.

<PAGE>
                                       13

                                   SCHEDULE 2

                               TENANT'S COVENANTS

2.1   RENT

(A)   To pay the rents reserved by this Lease at the times and in the manner
      specified without any deduction save as may be required by law.

(B)   Not to exercise or seek to exercise any right or claim to withhold rent or
      any right or claim to set-off save as may be required by law.

2.2   OUTGOINGS

      To pay and discharge all existing and future rates, taxes, duties,
      charges, assessments, outgoings and impositions (whether parliamentary,
      local or otherwise and whether of a capital, revenue, non-recurring or
      wholly novel nature) which are now or may at any time be assessed, charged
      or imposed upon the demised premises or on the owner or occupier in
      respect of them or anything done on them or pending separate assessment of
      the demised premises a fair proportion to be reasonably determined by the
      Landlord of any sum payable in respect of the Building but excluding any
      taxes or other fiscal impositions relating to or generated by the grant of
      this Lease or any dealing with any interest expectant in reversion on the
      ending of the term or by reason of the receipt by the Landlord or its
      agents of the rents and other sums payable pursuant to this Lease.

2.3   REPAIR

(A)   Save in the case of damage by insured risks (except to the extent the
      insurance effected by the Landlord is vitiated, avoided or forfeited or
      the payment of the policy monies is refused or withheld by reason of the
      act or omission of the Tenant or any person deriving title under the
      Tenant or their respective servants, agents or licensees):

      (i)   to keep the demised premises in good and substantial repair and
            condition and in whole or in part replace or renew them as
            necessary; and

      (ii)  to repair or (when beyond economic repair) replace with others of
            modern and up to date design all lessor's fixtures and fittings
            which become obsolete or unusable.

(B)   To keep in good and substantial repair all conduits within the demised
      premises which are used by the owner or occupier of the demised premises.

2.4   DECORATION

      In 2009 or more frequently if necessary and also in the six months
      immediately before the ending of the term to paint, clean or otherwise
      treat as the case may be all the inside

<PAGE>
                                       14

      structure and other internal parts of the demised premises usually or
      requiring to be painted, cleaned or otherwise treated with two coats of
      good quality paint or other suitable material of good quality in a proper
      and workmanlike manner and generally to redecorate the interior of the
      demised premises and afterwards grain, varnish, wash, strip, stop,
      distemper, colour, paper or otherwise decorate in the usual manner all
      parts usually or requiring to be so dealt with the colour and method of
      all such painting and other works of decoration to be approved by the
      Landlord.

2.5   YIELDING UP

(A)   At the ending of the term:

      (i)   quietly to yield up the demised premises (except lessee's and trade
            fixtures and fittings which shall at the request of the Landlord but
            not otherwise be removed prior to the ending of the term) in a
            condition consistent with the due performance and observance by the
            Tenant of its covenants in this Lease;

      (ii)  if any alterations or additions have been made to the Building by
            the Tenant or any person deriving title under the Tenant to
            reinstate the Building (if so required by the Landlord but not
            otherwise) to the state and condition it was in prior to the making
            of the alterations and additions;

      (iii) to remove from the Building every sign, notice or other notification
            belonging to the Tenant or any person deriving title under the
            Tenant; and

      (iv)  to make good all damage caused to the Building by the removal of
            fittings, furniture and effects

      to the reasonable satisfaction of the Landlord.

(B)   If the Tenant fails to leave the Building in such condition, to pay to the
      Landlord the proper cost remedying such default.

2.6   STATUTES

(A)   To comply with all Statutes and the requirements or directions of any
      government department, local authority or other competent authority
      affecting the demised premises or their use and occupation.

(B)   To execute all works and obtain all certificates and licences and provide
      and maintain all arrangements which by or under any Statute or any such
      requirement or direction are or may be directed or required to be
      executed, obtained, provided or maintained upon or in respect of the
      demised premises whether by the Landlord or the Tenant.

(C)   Not to do or omit to do in the Building anything by reason of which the
      Landlord may under any Statute or any such requirement or direction incur
      or have imposed upon it or

<PAGE>
                                       15

      become liable to pay any penalty, damages, compensation, costs, levies,
      charges or expenses.

(D)   Upon receipt to deliver to the Landlord a copy of any communication from a
      government department, local authority or other competent authority
      affecting the demised premises and at the cost of the Landlord to make or
      join in making such objections, representations or appeals against or in
      respect of it as the Landlord may reasonably require.

2.7   PLANNING

(A)   To obtain from the relevant planning authority on its own behalf and on
      behalf of the Landlord all permissions and to serve such notices as may be
      required for the carrying out of any development on the demised premises
      or the institution or continuance of any use.

(B)   Notwithstanding any other approval granted under this Lease, not to make
      any application for such permission or to implement such permission once
      granted without the consent of the Landlord (such consent not to be
      unreasonably withheld or delayed) provided that the Tenant is not
      permitted to make any application in relation to a change of use.

(C)   Before the ending of the term and unless the Landlord shall otherwise
      reasonably direct, to carry out in a good and workmanlike manner with
      suitable materials of good quality any works stipulated to be carried out
      by a date after the ending of the term as a condition of any planning
      permission granted during the term and implemented by the Tenant in whole
      or in part.

2.8   ENTRY UPON THE DEMISED PREMISES

(A)   To permit the Landlord, the Head Landlord and persons authorised by them
      to enter the demised premises at reasonable times after 48 hours prior
      written notice (except in an emergency) and where requisite to remain with
      or without workmen, materials and equipment:

      (i)   to alter, maintain or repair any other part of the Building or any
            adjoining property;

      (ii)  in connection with the development of such property;

      (iii) in connection with the easements and rights reserved by this Lease;

      (iv)  to comply with such covenants, conditions and restrictions (if any)
            as may affect any reversion on the term;

<PAGE>
                                       16

      (v)    to inspect the demised premises and any alterations or additions
             being carried out;

      (vi)   to complete an inventory of the lessor's fixtures and fittings;

      (vii)  to measure or value the demised premises;

      (viii) to remedy any breach of the Tenant's covenants in this Lease; and

      (ix)   in connection with the provision of the services referred to in
             Schedule 7

      without payment for any nuisance, annoyance, damage or inconvenience
      caused to the occupiers of the demised premises but subject to the
      Landlord causing as little disturbance as reasonably practicable and
      making good to the reasonable satisfaction of the Tenant any damage caused
      to the demised premises without delay.

(B)   To give notice to the Landlord upon becoming aware of the same of any
      destruction or damage to the demised premises and of any defect which
      would or might give rise to any obligation on the Landlord's part to do or
      refrain from doing any act or thing in order to comply with the duty of
      care imposed by the Defective Premises Act 1972.

2.9   BREACHES

(A)   To make good all breaches of the Tenant's covenants in this Lease within
      two months after the giving of written notice by the Landlord to the
      Tenant or sooner if requisite.

(B)   If the Tenant continues to default in the performance of any of such
      covenants of which notice has been given, to permit the Landlord and all
      persons authorised by the Landlord to take steps to remedy the breaches.

2.10  COSTS

      To indemnify the Landlord against all properly incurred costs arising from
      or in reasonable and direct contemplation of:

      (i)   the enforcement of the Tenant's covenants in this Lease or of the
            obligations of any person who at any time guarantees the obligations
            of the Tenant;

      (ii)  the preparation and service of any notices or proceedings under
            sections 146 and 147 of the Law of Property Act 1925 or the
            Leasehold Property (Repairs) Act 1938 and the inspection and
            supervision of any works required to be done;

      (iii) the taking of steps subsequent to any such notice notwithstanding
            forfeiture is avoided otherwise than by relief granted by the Court;

      (iv)  the effecting of any forfeiture not requiring such notice;

<PAGE>
                                       17

      (v)    the recovery of sums due under this Lease including the levy or
             attempted levy of any distress;

      (vi)   the preparation and service of all notices and schedules (whether
             statutory or otherwise) relating to wants of repair to the demised
             premises or other breaches of any of the Tenant's covenants in this
             Lease and the inspection and supervision of any works required to
             be done whether served during the term or after its ending;

      (vii)  the preparation and service of any notices, applications or
             proceedings under the Landlord and Tenant (Covenants) Act 1995 (but
             excluding any whereby the Landlord is seeking a release in respect
             of its obligations hereunder); and

      (viii) any application for a consent, licence or approval whether it is
             granted or refused or proffered subject to any qualification or
             condition or whether the application is withdrawn or abandoned
             unless such refusal qualification or condition is held by a court
             of competent jurisdiction to be unlawful whether because it is
             unreasonable or otherwise.

2.11  ALTERATIONS

(A)   Not without the consent of the Landlord (such consent not to be
      unreasonably withheld or delayed) to make any internal non-structural
      alterations or additions to the demised premises but so that (except in
      the case of the Tenant's initial fitting out works) consent shall not be
      required for the removal, modification, alteration or erection of
      demountable partitioning of a specification approved by the Landlord if
      drawings showing the proposed layout or any revisions to the layout are
      deposited with the Landlord prior to work commencing.

(B)   Not to make any alterations or additions to the Building or any
      installations, conduits, plant or machinery serving it otherwise than in
      accordance with sub-paragraph (A).

(C)   Not to commence any alterations or additions before all necessary
      licences, approvals, permissions and consents from all relevant government
      departments, local authorities and other competent authorities and the
      insurers have been produced to the Landlord and approved by it such
      approval not to be unreasonably withheld or delayed.

(D)   To procure in respect of any alterations to the air conditioning systems
      that the contractors carrying out alterations or additions and the
      architects, engineers or other persons engaged in a consultative capacity
      in connection with their design or supervision enter into collateral
      assurances with the Landlord acknowledging in terms acceptable to the
      Landlord a duty of care to the Landlord in connection with the carrying
      out, design or supervision as the case may be.

(E)   To carry out all alterations and additions in a good and workmanlike
      manner with suitable materials of good quality to the satisfaction of the
      Landlord in accordance with

<PAGE>
                                       18

      all such licences, approvals, permissions and consents and the plans and
      specifications approved by the Landlord without causing any undue
      nuisance, damage or inconvenience to the Landlord or the owners or
      occupiers of any other part of the Building or any neighbouring property.

(F)   To remove on demand all alterations and additions made in contravention of
      this paragraph or in respect of which any licence, approval, permission or
      consent is withdrawn or lapses and make good all damage caused by such
      removal and restore all parts of the demised premises affected to a good
      and substantial condition and properly decorated under the supervision and
      to the reasonable satisfaction of the Landlord.

2.12  USE

(A)   Not to use the demised premises for any dangerous, noxious, noisy,
      offensive, illegal or immoral purpose.

(B)   Not to use the demised premises for any purpose which causes a nuisance,
      damage or inconvenience to the Landlord or the owners or occupiers of any
      other part of the Building or any neighbouring property.

(C)   Not to hold any auction, public meeting, entertainment or exhibition on
      the demised premises.

(D)   Not to use the demised premises as a betting shop or a betting office.

(E)   Not to use the demised premises for the sale of alcohol for consumption
      either on or off the demised premises.

(F)   Not to allow any person to sleep in the demised premises nor to use the
      demised premises for residential purposes.

(G)   Not without the consent of the Landlord to use the demised premises
      otherwise than for the Permitted Use specified in the Lease Details.

2.13  SIGNS

      Subject to the rights granted in Schedule 1 Part 2 of this Lease, not to
      display on the demised premises so as to be visible from outside any sign,
      fascia, poster, blind or advertisement other than a sign of a size and a
      kind approved by the Landlord (acting reasonably) showing the name and
      business of the permitted occupier.

2.14  "FOR SALE" AND "TO LET" SIGNS

      To permit all persons authorised by the Landlord or its agents to view the
      demised premises at reasonable times in connection with any proposed
      disposal or reletting without interruption.

<PAGE>
                                       19

2.15  SECURITY ARRANGEMENTS

      Not to leave the demised premises continuously unoccupied for more than
      one month without notifying the Landlord and providing security and
      caretaking arrangements approved by the Landlord (acting reasonably) and
      the insurers.

2.16  OVERLOADING

(A)   Not to submit any part of the Building to any excessive load nor to
      suspend any excessive weight from the ceilings or structure.

(B)   Not to overload or obstruct the conduits serving the Building or to
      discharge into any pipes, drains, or sewers any trade effluent or any
      harmful matter or substance.

2.17  ENTRANCES AND SERVICE AREAS

      Not to load or unload or receive delivery of or dispatch goods otherwise
      than in the areas and through the entrances, designated by the Landlord
      nor to leave any article or vehicle so that such areas or the entrances,
      roadways or means of access to the Building are blocked to trade or other
      vehicles or so that access by others is precluded, hindered or
      inconvenienced.

2.18  RIGHTS OF LIGHT

(A)   Not to darken or obstruct any windows belonging to the Building nor to
      accept payment or other consideration for consenting to anyone else doing
      so.

(B)   To give notice to the Landlord of any third party making or acquiring or
      attempting to make or acquire any encroachment or easement against the
      Building and at the request of the Landlord to take such steps as the
      Landlord may reasonably require to prevent any such encroachment or
      easement being acquired.

2.19  ALIENATION

(A)   Not to assign or charge any part (as distinct from the whole) of the
      demised premises.

(B)   Not to assign the whole of the demised premises or underlet, hold upon
      trust for another or part with or share possession or occupation of the
      whole or any part of the demised premises except as provided in the
      following paragraphs.

(C)   Not to assign the whole of the demised premises nor to underlet the whole
      or any part to a person entitled to claim diplomatic or sovereign
      immunity.

(D)   Not to part with or share possession or occupation of the whole or any
      part of the demised premises otherwise than to companies which are Group
      Companies of the Tenant upon terms such that:

<PAGE>
                                       20

      (i)   no assignment or sub-letting is effected and no right to exclusive
            possession is conferred; and

      (ii)  any rights of occupation or possession come to an end immediately
            the relevant company ceases to be a Group Company.

(E)   Not to assign the whole of the demised premises without:-

      (i)   simultaneously assigning the First Lease to the same person; and

      (ii)  first providing copies of the audited accounts of the intended
            assignee (being a body corporate) for the three immediately
            preceding accounting periods if available, taking into account the
            date of incorportation of the proposed assignee (including the
            accounting period last expired), and management accounts of the
            intended assignee (being a body corporate) for the immediately
            preceding 12 months;

(F)   Upon any assignment of the First Lease simultaneously to assign the
      demised premises to the person becoming as a result of the first mentioned
      disposition the tenant under the First Lease

2.20  ASSIGNMENT

(A)   Not to assign the whole of the demised premises without first entering
      into an authorised guarantee agreement with the Landlord in accordance
      with section 16 of the Landlord and Tenant (Covenants) Act 1995 in such
      form as the Landlord may lawfully require:

      (i)   imposing liability on the Tenant as principal debtor in respect of
            the obligations owed by the assignee under the covenants in this
            Lease falling to be complied with by the tenant of the demised
            premises;

      (ii)  imposing liability on the Tenant as guarantor in respect of the
            assignee's performance of the covenants which is equivalent to that
            to which the Tenant would be subject as sole or principal debtor in
            respect of the obligations owed by the assignee under the covenants;

      (iii) requiring the Tenant, in the event of this Lease being disclaimed,
            to enter into a new lease of the demised premises:

            (a)   whose term expires not later than the Term specified in the
                  Lease Details; and

            (b)   whose covenants falling to be complied with by the tenant of
                  the demised premises are equivalent to those of this Lease;
                  and

<PAGE>
                                       21

      (iv)  making provision incidental or supplementary to any provision made
            by virtue of (i) to (iii) of this sub-paragraph.

(B)   Subject to sub-paragraph (A), not to assign the whole of the demised
      premises without the consent of the Landlord (such consent not to be
      unreasonably withheld or delayed) provided that for the purposes of
      section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may:

      (i)   withhold its consent in circumstances where the Tenant has been
            unable to satisfy the Landlord (acting reasonably) within one month
            of the original application for such consent that the intended
            assignee is of appropriate financial standing to be able to comply
            with the Tenant's covenants contained in this Lease;

      (ii)  withhold its consent unless prior to the date of the proposed
            assignment the Tenant has paid all sums which have fallen due for
            payment under this Lease before that date and has remedied any
            outstanding breaches of the Tenant's covenants in this Lease
            provided that if there shall be a bona fide dispute as to any sum
            payable the Tenant shall discharge this condition by depositing such
            sum as an escrow account pending resolution of such dispute;

      (iii) make it a condition of its consent that the intended assignee enters
            into direct covenants with the Landlord to pay the rents reserved by
            this Lease and to observe and perform the Tenant's covenants in this
            Lease throughout the term; and

      (iv)  make it a condition of its consent that such surety or sureties as
            the Landlord reasonably requires covenant by deed directly with the
            Landlord as principal debtors or covenantors in the terms set out in
            Schedule 3 by reference to the intended assignee.

2.21  UNDERLETTING

(A)   Not to underlet the whole of the demised premises otherwise than by an
      instrument in writing approved by the Landlord such approval not to be
      unreasonably withheld or delayed on the same terms and conditions as this
      Lease so far as applicable to the premises underlet:

      (i)   containing an absolute prohibition against the underlessee
            underletting, charging, parting with possession or sharing the
            occupation of the premises underlet or any part of them or assigning
            part of them;

      (ii)  at the rent which can reasonably be obtained without taking a fine
            or premium;

      (iii) containing provisions for the rent reserved by the underlease to be
            reviewed in an upwards direction only with effect from the same
            dates as the principal yearly
<PAGE>

                                       22

            rent under this Lease is liable to be reviewed and upon the same
            principles of ascertainment; and

      (iv)  containing or having endorsed upon it.

            (a)   a reference to the notice served on the undertenant in the
                  form, or substantially in the form, set out in schedule 1 to
                  the Regulatory Reform (Business Tenancies) (England and Wales)
                  Order 2003;

            (b)   a reference to the declaration or statutory declaration made
                  by the undertenant in the form, or substantially in the form,
                  set out in paragraph 7 or paragraph 8 as appropriate of
                  schedule 2 to that Order; and

            (c)   a valid agreement under section 38(A)(1) of the Landlord and
                  Tenant Act 1954 excluding sections 24 to 28 of that Act.

(B)   Subject to sub-paragraph (A), not to underlet the whole of the demised
      premises without the consent of the Landlord (such consent not to be
      unreasonably withheld or delayed) provided that for the purposes of
      section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may:

      (i)   withhold its consent in circumstances where the Tenant has been
            unable to satisfy the Landlord (acting reasonably) that the intended
            underlessee is of appropriate financial standing to be able to
            comply with the covenants contained in the Underlease;

      (ii)  withhold its consent unless prior to the date of the proposed
            underletting the Tenant has paid all sums which have fallen due for
            payment under this Lease before that date and has remedied any
            outstanding breaches of the Tenant's covenants in this Lease
            provided that if there shall be a bona fide dispute as to any sum
            payable the Tenant shall discharge this condition by depositing such
            sum in an escrow account pending resolution of such dispute;

      (iii) make it a condition of its consent that the intended underlessee
            enters into direct covenants with the Landlord;

            (a)   to observe and perform the Tenant's covenants in this Lease
                  (other than as to the payment of rent) insofar as they relate
                  to the premises to be underlet;

            (b)   to pay the rents reserved by the proposed underlease and to
                  observe and perform the underlessee's covenants in such
                  underlease; and

            (c)   not to assign the premises to be underlet without the prior
                  consent of the Landlord under this Lease, such consent not to
                  be unreasonably withheld or delayed.

<PAGE>

                                       23

      (iv)  (if it is reasonable to do so) make it a condition of its consent
            that such surety or sureties as the Landlord requires covenant by
            deed directly with the Landlord as principal debtors or covenantors
            in such form as the Landlord requires:

            (a)   that the underlessee will pay the rent reserved by the
                  proposed underlease and observe and perform the underlessee's
                  covenants in the proposed underlease; and

            (b)   to pay to the Landlord all losses, costs and expenses arising
                  out of or incidental to any failure by such underlessee to
                  comply with its obligations to the Landlord from time to time.

(C)   To enforce the observance and performance of and not to vary or waive the
      covenants on the part of any underlessee or surety and the provisions for
      review of rent contained in any underlease.

(D)   Not to defer or accelerate the payment of rent under any underlease.

(E)   Not to agree any review of rent or the appointment of any expert or
      arbitrator under any underlease without the consent of the Landlord under
      this Lease such consent not to be unreasonably withheld or delayed.

2.22  REGISTRATION

      Within fourteen days after any assignment, underletting, assent, mortgage
      or charge or release or vacation of any mortgage or charge or devolution
      of or other instrument relating to the demised premises or any estate or
      interest in the demised premises however remote or inferior to give notice
      to the Landlord and produce to it for its retention a certified copy of
      the deed or instrument effecting the transaction.

2.23  INDEMNITY

      To indemnify the Landlord against:

      (i)   any tax or imposition which becomes payable either during the term
            or after its ending by reason of any act or default of the Tenant or
            any person deriving title under the Tenant or their respective
            agents, servants or licensees and which but for such act or default
            would not have been payable; and

      (ii)  all actions, costs, claims, demands and expenses arising as a result
            of any breach of the Tenant's covenants in this Lease or by reason
            of any act or default of the Tenant or any person deriving title
            under the Tenant or their respective agents, servants or licensees.

<PAGE>

                                       24

2.24  PRODUCTION OF INFORMATION

      To produce within 14 days of written demand such evidence as the Landlord
      may reasonably require to satisfy itself that the Tenant's covenants in
      this Lease have been complied with and particulars of all derivative or
      occupational rights existing in respect of the demised premises however
      remote or inferior.

2.25  INTEREST

      To pay to the Landlord if so required and without prejudice to the
      Landlord's other remedies (as well after as before any judgment) interest
      at the rate of four per centum per annum above the base rate of HSBC Bank
      Plc from time to time on any sum becoming due under this Lease (whether or
      not formally demanded) and not paid within fourteen days of its becoming
      due from the date it becomes due until the date of payment and on any sum
      due under this Lease but not accepted by the Landlord from the date of its
      becoming due until the date of acceptance (where acceptance of rent would
      prejudice any right of the Landlord).

2.26  VALUE ADDED TAX

      To pay an amount equal to all value added tax or other tax of a similar
      nature payable in respect of any sum payable under this Lease so that any
      such sum is deemed to be tax exclusive provided that the Landlord shall
      provide to the Tenant a valid VAT invoice in respect of any such sums as
      soon as reasonably practicable following receipt thereof.

2.27  MATTERS AFFECTING THE REVERSION

      Not to cause the Landlord to be in breach of the Head Lease or any
      covenants, conditions and restrictions (if any) to which any reversion
      immediately or mediately expectant on the term may be subject.

2.28  REGULATIONS

      To observe and perform and cause all persons deriving title under it and
      their respective servants, agents and licensees to observe and perform any
      reasonable rules and regulations made by the Landlord from time to time
      for the orderly and safe use of the Building and its facilities.

2.29  SURETY

      If in respect of any surety who at any time hereafter shall have
      guaranteed the obligations of the Tenant in this Lease any of the events
      specified in Clause 5 (iii) (iv) (v) or (vi) above shall occur or if such
      surety shall cease to exist then provided that such surety's obligations
      to the Landlord remain extant the Tenant for the time being shall give
      written notice to the Landlord within seven working days of any such event
      and, if so

<PAGE>

                                       25

        required in writing by the Landlord and at the expense of the Tenant,
        shall within two months after notification of the Landlord's
        requirements:-

      (A)   procure some other person, reasonably acceptable to the Landlord, to
            covenant by deed directly with the Landlord in the manner provided
            for at paragraph 2.20(B)(iv) above, or

      (B)   provide such other security for the performance of the tenant's
            obligations in this Lease as is reasonably acceptable to the
            Landlord.

<PAGE>

                                       26

                                   SCHEDULE 3

                               SURETY'S COVENANTS

3.1   PAYMENT

      The Surety in consideration of the demise contained in this Lease having
      been made at its request covenants with the Landlord that:

      (i)   the Tenant will throughout the term as well after as before any
            disclaimer of this Lease pay the rents reserved by this Lease as
            from time to time reviewed and will observe and perform the Tenant's
            covenants in this Lease;

      (ii)  in case of default or delay on the part of the Tenant the Surety
            will by way of primary obligation and not merely as a guarantor or
            as collateral to the Tenant's obligation pay to the Landlord any
            proper sum which ought to be paid and make good any breaches of the
            Tenant's covenants in this Lease including all losses, damages,
            costs and expenses arising or incurred by the Landlord; and

      (iii) the Surety will indemnify the Landlord against all proper costs
            arising from or in contemplation of the enforcement of the Surety's
            covenants in this Lease.

3.2   NEW LEASE

(A)   The Surety further covenants with the Landlord that if any event or
      default occurs rendering this Lease liable to forfeiture or disclaimer
      (and the Landlord forfeits it or it is disclaimed) the Surety or such of
      the persons for the time being comprising the Surety as the Landlord may
      choose shall upon being required so to do by the Landlord by written
      notice given at any time within 3 months of such forfeiture or disclaimer
      take up a new lease of the demised premises and deliver a duly executed
      counterpart to the Landlord upon the same terms as this Lease save that:

      (i)   the term will commence on the date of such notice and expire on the
            date the Term specified in the Lease Details is due to expire or
            would have expired but for its having already ended;

      (ii)  so far as there are outstanding breaches of the Tenant's covenants
            in this Lease, the Landlord may require without prejudice to its
            other remedies that such lease contains a covenant that they will be
            remedied promptly at the cost of the Surety to the satisfaction of
            the Landlord.

<PAGE>

                                       27

(B)   The Surety will:

      (i)   join in any consent, approval or licence required by any other
            person interested in the demised premises in connection with the
            grant of the lease; and

      (ii)  on completion of such lease indemnify the Landlord against its
            proper costs in connection with the obtaining of any such consent,
            approval or licence and the grant of the lease.

3.3   RANKING OF CLAIMS

(A)   The Surety will only be entitled to enforce its rights in respect of any
      sums it pays or liabilities it incurs under the Surety's covenants in this
      Lease or in any new lease it is required to take up under this schedule
      after the Surety's obligations under all such covenants have been
      observed, performed and discharged in full and the Surety shall not:

      (i)   seek to recover from the Tenant or any third party whether directly
            or by way of set-off, lien, counter-claim or otherwise or accept any
            money or other property or security or exercise any rights in
            respect of any sum which may be or become due to the Surety on
            account of failure by the Tenant to observe, perform or discharge
            the Tenant's covenants in this Lease;

      (ii)  claim, prove for or accept any payment in any composition by or
            winding up or liquidation of the Tenant or any third party in
            competition with the Landlord for any amount owing to the Surety on
            any account; and

      (iii) exercise any right or remedy in respect of any amount paid by the
            Surety under the Surety's covenants in this Lease.

(B)   The Surety warrants to the Landlord that it has not taken and will not
      take any security from the Tenant or any third party in connection with
      the Surety's covenants in this Lease or in any new lease it is required to
      take up under this schedule and any such security so taken shall be held
      in trust for the Landlord as security for the respective liabilities of
      the Surety and the Tenant.

3.4   SOLE OR PRINCIPAL DEBTOR

      Without prejudice to the rights of the Landlord against the Tenant as
      principal the Surety as a separate and independent stipulation agrees that
      any liability mentioned in this schedule which may not be recoverable on
      the footing of a guarantee whether by reason of any legal limitation,
      disability or incapacity on or of the Tenant or any other fact or
      circumstance and whether known to the Landlord or not will nevertheless be
      recoverable from the Surety as though it had been incurred by the Surety
      and the Surety was the

<PAGE>

                                       28

      sole or principal debtor in respect of it and will be paid by the Surety
      on demand together with interest (as well after as before any judgment) at
      the rate of four per centum per annum above the base rate of HSBC Bank Plc
      from time to time from the date of demand until payment.

3.5   IMMEDIATE RECOURSE

      The provisions of this schedule are in addition to and not in substitution
      for any other rights which the Landlord may have and may be enforced
      against the Surety whether or not recourse has been had to any such rights
      and whether or not any steps or proceedings have been taken against the
      Tenant.

3.6   OBLIGATIONS TO SUBSIST

      The rights of the Landlord and the obligations of the Surety will continue
      to subsist notwithstanding:

      (i)         the neglect or forbearance of the Landlord in endeavouring to
                  obtain payment of the rents reserved by this Lease or
                  enforcing the observance and performance of the Tenant's
                  covenants in this Lease whether from or by the Tenant, the
                  Surety or any other person;

      (ii)        any time which may be given by the Landlord for the payment of
                  the rents reserved by this Lease or the observance and
                  performance of the Tenant's covenants in this Lease whether
                  from or by the Tenant, the Surety or any other person;

      (iii)       the demand or acceptance of sums at a time when the Landlord
                  has notice of a breach of the Tenant's covenants in this
                  Lease;

      (iv)        the refusal by the Landlord to accept rent tendered by or on
                  behalf of the Tenant, the Surety or any other person;

      (v)         the grant of any licence, consent or approval by the Landlord;

      (vi)        any variation of this Lease agreed between the Landlord and
                  the Tenant for the time being;

      (vii)       the disposition of the Landlord's reversion or any part of it
                  or any disposition of the demised premises by the Tenant;

      (viii)      the release of any one or more persons for the time being
                  constituting the Tenant or the Surety; or

      (ix)        any other act omission, matter or thing by which (but for this
                  provision) the Tenant or the Surety would be exonerated either
                  wholly or in part from its

<PAGE>

                                       29

                  obligations to the Landlord other than a release under seal
                  given by the Landlord.

3.7   SUPPLEMENTAL

      If so required by the Landlord the Surety will join in any instrument made
      under or supplemental to this deed for the purpose of acknowledging it is
      bound by it and that the obligations in this schedule extend to it.

3.8   STATUTORY AVOIDANCE

      No assurance, security or payment which may be avoided under any Statute
      nor any release, settlement or discharge of the Surety which may have been
      given or made on the faith of any such assurance, security or payment
      shall prejudice or affect the right of the Landlord to recover from the
      Surety to the full extent of this schedule as if such release, settlement
      or discharge had not occurred.

<PAGE>

                                       30

                                   SCHEDULE 4

                                   RENT REVIEW

4.1   RENT REVIEW

      With effect from the review date, the principal yearly rent payable by the
      Tenant shall be which ever is the greater of:

      (i)   the principal yearly rent payable immediately before the review
            date; and

      (ii)  the open market rental value at the review date.

4.2   REFERRAL OF DISPUTES

      The Landlord and the Tenant shall endeavour to agree the open market
      rental value as at the review date but if it has not been agreed by the
      day three months before the review date the question may be referred by
      the Landlord or the Tenant to the determination of a referee acting as an
      arbitrator pursuant to the Arbitration Act 1996.

4.3   REFEREE

(A)   The referee (who is to have substantial recent experience of the valuation
      and letting of property such as the demised premises and in their
      vicinity) may be agreed on by the Landlord and the Tenant or if not agreed
      on by them within two weeks from the nomination in writing of a referee by
      one party to the other is to be appointed on the application of either
      party by the President for the time being of the Royal Institution of
      Chartered Surveyors.

(B)   If the referee relinquishes his appointment or dies or if it becomes
      apparent that he will be unable or unwilling to complete his duties the
      Landlord and the Tenant may agree upon or either of them may apply to the
      President for a substitute in his place which procedure may be repeated as
      many times as necessary.

(C)   If the President is unable or unwilling to make an appointment at the time
      of application the appointment may be made by the Vice-President or next
      senior officer of the Institution then able and willing to make it or if
      no such officer is available by such officer of such professional body as
      the Landlord reasonably designates.

(D)   The referee shall give reasons for his award and may provide for the
      manner in which the costs of the determination are to be borne and for the
      payment of costs by one party to the other.

(E)   If either the Landlord or the Tenant fails to pay the fees and expenses of
      the referee payable by it within seven days of demand the other party may
      pay them and the amount so paid shall be repaid by the party chargeable on
      demand.

<PAGE>

                                       31

4.4   INTERIM PERIOD

(A)   In respect of the period beginning with the review date and ending on the
      day preceding such one of the quarter days as immediately follows the date
      on which the increased rent is ascertained the principal yearly rent will
      continue to be paid at the yearly rate payable immediately before the
      review date.

(B)   At the expiration of the period, the Tenant shall pay to the Landlord a
      sum equal to the aggregate of:

      (i)   the amount (if any) by which the increased rent for the period
            exceeds the rent paid for the period; and

      (ii)  interest at the rate of the base rate of HSBC Bank Plc on the
            difference between the increased rent for the period and the rent
            paid for the period calculated from the relevant review date until
            the actual payment of such difference (as well after as before any
            judgment).

4.5   RENT REVIEW MEMORANDUM

      For information and record purposes only, once the increased rent (if any)
      has from time to time been ascertained the Landlord and the Tenant shall
      execute a memorandum in duplicate specifying such rent which shall be
      prepared by the Landlord's solicitors and attached to the original and
      counterpart of this Lease.

4.6   RESTRICTIONS ON PAYMENT

      If the Landlord is restricted, prevented or constrained by any limitation
      (which expression in this paragraph includes any Statute, public policy or
      imposition by any means whatsoever (whether legally binding or not) of
      control over rents) from obtaining, demanding or accepting from the Tenant
      or the Tenant is similarly restricted, prevented or constrained from
      paying to the Landlord the full rent for the time being reserved by this
      Lease the Tenant shall pay rent at the highest level from time to time
      recoverable and the monies passing under this Lease by way of rent are to
      be increased by such amounts and at such times as may be permitted until
      such full rent passes and the Landlord will not be prevented from
      requiring a revision of rent in accordance with this Lease on the ground
      that the revised rent or any previous revised rent will not or has not yet
      become payable in full.

4.7   RESTRICTIONS ON REVIEW

      If the Landlord is similarly restricted, prevented or constrained from
      requiring a revision of the principal yearly rent in accordance with this
      schedule then the Landlord may after each modification, removal or
      relaxation on giving notice to the Tenant introduce an intermediate review
      date and the principal yearly rent payable by the Tenant with effect

<PAGE>

                                       32

      from the intermediate review date to the next succeeding review date will
      be whichever is the greater of:

      (i)   the principal yearly rent payable immediately before the
            intermediate review date; and

      (ii)  the open market rental value at the intermediate review date

      to the intent that this schedule shall apply (mutatis mutandis) as though
      the intermediate review date were a Review Date specified in the Lease
      Details.

4.8   TIME NOT OF THE ESSENCE

      Time is not of the essence for the purpose of this schedule.

<PAGE>

                                       33

                                   SCHEDULE 5

                              INSURANCE PROVISIONS

5.1   INSURANCE PARTICULARS

(A)   The Landlord covenants with the Tenant to supply to the Tenant annually
      and on the occasion of any material change a summary of the insurance
      effected under the Head Lease sufficient to enable the Tenant to know the
      extent of the cover provided and the sums insured and any exclusions,
      excesses, conditions or limitations.

(B)   The Landlord shall not be obliged to insure any fixtures or fittings which
      may be installed by the Tenant (whether landlord's or tenant's fixtures
      and fittings).

5.2   TENANT'S OBLIGATIONS

      The Tenant covenants with the Landlord:

      (i)   not knowingly to do or bring or keep in the Building anything which
            might increase the risk of damage by any of the insured risks;

      (ii)  not knowingly to do anything to cause the insurance effected on the
            Building to become void or voidable or the premium to be increased;

      (iii) to comply with the requirements or reasonable recommendations of the
            insurers of the Building and the local fire officer;

      (iv)  if the demised premises or any other part of the Building is damaged
            or destroyed by any risk insured against by the Head Landlord and
            the policy of insurance in respect of it is vitiated, avoided or
            forfeited or the payment of the policy monies or any part of them is
            refused or withheld by reason of the act or default of the Tenant or
            any person deriving title under the Tenant or their respective
            agents, servants or licensees then and in every such case to pay to
            the Landlord on the date when the policy monies would otherwise have
            been paid an amount equal to the sum so refused or withheld;

      (v)   not knowingly to insure the demised premises against any risks which
            are from time to time insured against by the Head Landlord and to
            hold any monies received from any policy effected in breach of this
            paragraph upon trust for the Landlord; and

5.3   CESSER OF RENT

(A)   If the whole or any part of the Building is damaged by any of the insured
      risks so as to render the demised premises unfit for occupation and use
      and the insurance effected by the Head Landlord is not vitiated, avoided
      or forfeited or the payment of the insurance

<PAGE>

                                       34

      proceeds or of any part of them refused or withheld by reason of any act
      or default of the Tenant or any person deriving title under the Tenant or
      their respective agents, servants or licensees then the rents hereby
      reserved or a fair proportion of them according to the nature and extent
      of the damage sustained will be suspended until the demised premises are
      again fit for occupation and use.

(B)   Any dispute arising under sub-paragraph (A) is to be determined by a
      single arbitrator in accordance with Arbitration Act 1996.

5.4   TERMINATION

      If the Head Landlord is unable or unwilling to rebuild or reinstate the
      demised premises after loss or damage by an insured risk and within
      thirty-six months of the happening of the loss or damage so notifies the
      Tenant in writing the Head Landlord's obligation in that respect and this
      Lease will determine and the Head Landlord will be entitled to retain the
      whole of the insurance moneys without prejudice to any further right or
      remedy of any party hereto.

5.5   INSURANCE RENT

      The Landlord covenants to pay the insurance rent reserved by clause 2 (iv)
      of the Head Lease.

<PAGE>

                                       35

                                   SCHEDULE 6

                               FURTHER PROVISIONS

6.1   LICENCES TO BE OBTAINED

(A)   Any licence, consent or approval required from the Landlord under this
      Lease is to be obtained before the act or event to which it applies is
      carried out or done and is effective only when given in writing.

(B)   Whether or not it says so expressly any such licence, consent or approval
      is conditional on the Tenant obtaining all requisite licences, consents,
      permissions or approvals from the relevant government department, local
      authority or other competent authorities and from the insurers and any
      other person interested in the demised premises.

6.2   NO IMPLIED WARRANTY

      Nothing contained or implied in this Lease or in any such licence, consent
      or approval is to be taken to be a covenant, warranty or representation by
      the Landlord or its agents that the demised premises can be or are fit to
      be used for the Permitted Use or any other purpose or that any alteration
      or addition or change of use which the Tenant may intend to carry out will
      not require the approval of the relevant government department, local
      authority or other competent authority or the insurers or any other person
      interested in the demised premises.

6.3   UNWANTED PROPERTY

      If after the ending of the term any property remains on the demised
      premises the Landlord may either in so far as the same is annexed to the
      demised premises treat it as having reverted to the Landlord or as the
      agent of the Tenant (and the Landlord is appointed by the Tenant to act in
      that behalf) remove, store, and sell such property and then hold the
      proceeds of sale after deducting the costs and expenses of removal,
      storage and sale incurred by it to the order of the Tenant provided that
      the Tenant shall indemnify the Landlord against liability incurred by it
      to any third party whose property is dealt with by the Landlord.

6.4   NO IMPLIED EASEMENTS

      This Lease does not confer upon or include by implication or otherwise in
      favour of the Tenant any right, privilege, estate or interest not
      expressly set out in, through, over or upon any other part of the Building
      or any land or premises adjoining or near to the Building or the air space
      over it.

<PAGE>

                                       36

6.5   COSTS

      Costs payable to the Landlord or against which the Landlord is entitled to
      be indemnified include but are not limited to all solicitors', surveyors',
      architects' and other fees, disbursements and irrecoverable value added
      tax and other expenditure incurred by the Landlord on its own account or
      by the insurers or any other person interested in the demised premises.

6.6   ADJOINING PROPERTY

      Nothing contained or implied in this Lease imposes or is to be deemed to
      impose any restriction on the use of any other part of the Building or any
      adjoining or neighbouring property or give the Tenant the benefit of or
      the right to enforce or to have enforced or to prevent the release or
      modification of any covenant, agreement or condition or to prevent or
      restrict its development.

6.7   INTEREST RATES

      If it ceases to be practicable to determine interest rates by reference to
      the base rate of HSBC Bank Plc the Landlord may specify a reasonable
      alternative.

6.8   COMPENSATION

      The Tenant will not be or become entitled to any compensation under
      section 37 or 59 of the Landlord and Tenant Act 1954 unless the conditions
      set out in section 38(2) of that Act are satisfied in relation to the
      tenant claiming compensation.

6.9   NOTICES

      Any notice, request, demand or other instrument under this Lease shall be
      in writing and may be served either in accordance with section 23 of the
      Landlord and Tenant Act 1927 or, in the case of service on a person who is
      for the time being the Tenant or any surety for the Tenant by sending it
      by first class letter post addressed to that person at the demised
      premises.

6.10  POWER TO DEAL WITH NEIGHBOURING LAND

      Notwithstanding anything contained in this Lease other than in Part 1 of
      Schedule 1 the Head Landlord and the Landlord and all persons authorised
      by either of them shall have power without obtaining any consent from or
      making any compensation to the Tenant to deal as it or they may think fit
      with the adjoining property or any of the lands buildings or parts of
      buildings and hereditaments adjacent adjoining or near to the demised
      premises or any part thereof and to erect or suffer to be erected thereon
      or on any part thereof any buildings whatsoever and to make any
      alterations or additions and carry out any demolition or rebuilding
      whatsoever which it or they may think fit or desire to do to such land or
      buildings of any part or parts thereof and without prejudice to the
      generality of the
<PAGE>

                                       37

foregoing whether such buildings alterations or additions shall or shall not
affect or diminish the light or air which may now or at any time during the term
be enjoyed by the Tenant or the tenants or occupiers of the demised premises.

<PAGE>

                                       38

                                   SCHEDULE 7

                            SERVICE CHARGE PROVISIONS

                                     PART 1

7.1   INTERPRETATION

(A)   In this schedule, except where the context otherwise requires:

      "THE DUE PROPORTION" means the property attributed share of the total
      costs attributable to the demised premises by the Landlord acting
      reasonably;

      "SERVICE CHARGE PERIOD" means the period of twelve months ending on and
      including 31st December in each year or such other period as the Landlord
      may reasonably determine from time to time;

      "THE SERVICE CHARGE RENT" means the due proportion for the service charge
      period concerned as appearing from the summary submitted in accordance
      with this schedule; and

      "THE TOTAL COSTS" means the aggregate of the costs and expenses properly
      incurred by the Landlord in:

      (i)   complying with its obligations under the Head Lease (other than as
            to the payment of the principal yearly rent thereunder);

      (ii)  meeting the proper cost of valuations of the Building for insurance
            purposes (no more frequently than once a year);

      (iii) meeting the excess on the policy of insurance in respect of the
            Building in case of damage by an insured risk;

      (iv)  providing the services specified in Parts 2 and 3 of this schedule;

      (v)   engaging managing agents for the Building;

      (vi)  engaging independent accountants to audit the total costs and to
            provide other accounting services in connection with the calculation
            and collection of the service charge;

      (vii) in the event the Head Lease comes to an end (howsoever caused),
            performing the like obligations as those of the Head Landlord under
            Schedule 6 ("Insurance Provisions") thereof subject to the like
            terms and conditions; and

<PAGE>

                                       39

      (viii) providing and supplying such other services or facilities, making
             such other payments or carrying out such other repairs and works
             (including the provision or replacement of plant and machinery) as
             in the reasonable opinion of the Landlord may be necessary or
             expedient to maintain the Building to a high standard and may be
             for the benefit of the Tenant or occupiers of the Building

      and defraying incidental and associated costs, charges and overheads.

(B)   In calculating the due proportion the Landlord may (acting reasonably)
      apply the same or different percentages to constituent elements of the
      total costs.

7.2   PAYMENT OF THE SERVICE CHARGE RENT

(A)   The Tenant shall pay to the Landlord the service charge rent for each
      service charge period beginning or ending during the term.

(B)   The Tenant shall make payments on account of the service charge rent in
      advance on the usual quarter days in each year of such amounts as the
      Landlord may reasonably require.

(C)   After the Landlord has submitted the summary of the total costs for a
      service charge period in accordance with this schedule, if the aggregate
      of the on account payments made by the Tenant differs from the service
      charge rent for the service charge period concerned then any shortfall
      shall be paid to the Landlord within fourteen days of written demand and
      any over-payment shall either be allowed to the Tenant against the next on
      account payment due under this schedule or, after the ending of the term
      and subject to the settlement of any outstanding sums due to the Landlord
      under this Lease, returned to the Tenant.

(D)   If so required, the Tenant will within 21 days of written demand
      re-imburse to the Landlord the due proportion of any heavy or unusual
      expenditure forming part of the total costs.

(E)   Save as specifically provided in this paragraph, the Tenant will not be
      entitled to the repayment of any amounts paid by it or by any other tenant
      or occupier of the Building by way of or on account of the service charge
      rent whether such amounts have been applied to a sinking fund or a reserve
      fund.

(F)   For the purpose of any apportionment in respect of a period shorter than a
      service charge period, the service charge rent for the service charge
      period concerned will be deemed to accrue on a daily basis.

(G)   Notwithstanding the ending of the term, this paragraph will continue to
      apply in respect of the then current and any earlier service charge
      periods.

<PAGE>

                                       40

7.3   SUMMARY OF THE TOTAL COSTS

(A)   As soon as practicable after the end of each service charge period, the
      Landlord shall submit to the Tenant a summary of the total costs for such
      period audited by an independent accountant.

(B)   At any time within two months from the date such summary is submitted, the
      Tenant may after reasonable prior notice have access to the accounts,
      invoices and other materials from which such summary is derived and be
      provided with copies.

7.4   FURTHER COSTS

      The Landlord may include in the total costs for any service charge period:

      (i)   any item of the total costs for an earlier service charge period
            beginning or ending during the term and not recovered in full from
            the tenants and occupiers of the Building;

      (ii)  interest at two percent per annum above the base lending rate of
            National Westminster Bank Plc from time to time from the date of
            expenditure until the date of recovery on any item of the total
            costs met by the Landlord from its own resources whether because of
            an insufficiency of service charges received from the tenants and
            occupiers of the Building or otherwise;

      (iii) any tax assessed upon the Landlord during such period in respect of
            sums received from the tenants or occupiers of the Building by way
            of or on account of the service charge rent; and

      (iv)  a reasonable fee for managing the Building insofar as managing
            agents are not engaged.

7.5   SINKING FUND AND RESERVE FUND

(A)   The Landlord may include in the total costs for any service charge period
      an amount which the Landlord reasonably determines from time to time as
      appropriate to build up and maintain a sinking fund and a reserve fund in
      accordance with the principles of good estate management.

(B)   Such a sinking fund may be established and maintained to provide for the
      renewal and replacement of lifts, boilers, plant, machinery and equipment
      in or upon the Building.

(C)   Such a reserve fund may be established and maintained to cover prospective
      and contingent costs of carrying out repairs, decorations, maintenance and
      renewals and of complying with all Statutes and the requirements or
      directions of any government department, local authority or other
      competent authority relating to the use, occupation or enjoyment of the
      Building.

<PAGE>

                                       41

7.6   DEPOSIT ACCOUNT

(A)   The Landlord shall keep the sums paid by the tenants and occupiers of the
      Building by way of service charge rent in a separate, interest earning,
      deposit account until and save to the extent that they may be required for
      the purposes provided for in this schedule.

(B)   Interest on the amounts standing to the credit of the account shall be
      credited to the account net of any tax payable in respect of such
      interest.

(C)   Until actual disbursement, such amounts shall be held by the Landlord for
      the benefit of the tenants and occupiers of the Building as a class.

(D)   Upon any transfer of the reversion immediately expectant on the ending of
      the term, the Landlord may retain out of such account an amount sufficient
      to discharge any costs and expenses properly incurred by the Landlord but
      remaining outstanding.

(E)   The receipt of the Landlord's successor to the reversion shall be a good
      receipt for the Landlord and relieve the Landlord from any liability as to
      the future application of amounts handed over.

7.7   LANDLORD'S PROTECTION PROVISIONS

      The Tenant may not object to the total costs or any item comprised in them
      or otherwise on the ground that:

      (i)   an item of the total costs included at a proper cost might have been
            provided or performed at a lower cost;

      (ii)  an item of the total costs fails to comply with an estimate which
            was given;

      (iii) an item of the total costs includes an element of betterment or
            improvement of the Building, its services or its amenities;

      (iv)  the Tenant disagrees with any estimate of future expenditure for
            which the Landlord requires to make provision so long as the
            Landlord has acted reasonably and in good faith; or

      (v)   the Tenant disagrees with the Landlord's exercise of any discretion
            reserved to it so long as a reasonable landlord could have reached
            the conclusion that the Landlord has.

7.8   TENANT'S PROTECTION PROVISIONS

(A)   The relevant proportion of the total costs is not to be increased or
      altered by reason only that at any relevant time any part of the Building
      is vacant or is occupied by the Landlord

<PAGE>

                                       42

      or because any other tenant or occupier of the Building defaults in the
      payment of its due proportion of the total costs.

(B)   The total costs are not to include any liability or expense for which any
      tenant or occupier of the Building is responsible under the terms of the
      lease, tenancy or other arrangement under which it uses or occupies the
      Building.

7.9   LANDLORD'S OBLIGATION TO PROVIDE SERVICES

(A)   The Landlord shall provide the services specified in Part 2 of this
      schedule and may provide the services specified in Part 3 of this
      schedule.

(B)   The Landlord is not to be liable for any failure to provide such services
      to the extent that the Landlord is prevented from doing so by an insured
      risk or other peril, accident, strike, shortage of materials or power or
      other cause or circumstance beyond the Landlord's control.

(C)   The Landlord is not to be under any obligation to continue to provide the
      services specified in Part 3 of this schedule and may in its absolute
      discretion discontinue, suspend, vary, extend, alter or add to such
      services if the Landlord considers that by doing so the Building, its
      services or amenities may be improved or the management of the Building
      may be more efficiently conducted.

<PAGE>

                                       43

                                     PART 2

1.    The repair, decoration, maintenance, renewal, rebuilding, cleaning and
      upkeep of the structure, floor slabs, main walls, vaults, foundations,
      exterior and roof of the Building.

2.    The cleaning, lighting, decoration, repair and maintenance of the common
      parts of the Building (including any W.C. facilities intended for the use
      of more than one tenant of the Building), emergency and external lighting,
      and the external surface of the entrance doors to the premises let or
      intended to be let to tenants.

3.    The cleaning of the exterior of the windows in the Building and the
      interior of the windows in the common parts of the Building.

4.    The repair, maintenance, renewal and replacement of all roads, paths,
      pavements, conduits and other conveniences including the car park and
      access ramp to the car park used or capable of being used by the owner or
      occupier of the demised premises in common with others other than those
      which are the responsibility of the Tenant or any other tenant or occupier
      of the Building.

5.    The provision during normal business hours of mechanical ventilation and
      heating and cooling and of hot water to the hot water taps in the
      Building.

6.    The repair, maintenance, renewal, replacement and testing of the chillers
      and boilers and of all conduits, plant and equipment for or in connection
      with the supply of heating and cooling and hot and cold water.

7.    The repair, maintenance, renewal and replacement of the lifts and of all
      plant and equipment for or in connection with the working and operation of
      the lifts.

8.    The effecting of engineering equipment insurance in respect of the
      mechanical and electrical equipment in or about the Building.

9.    The payment of rates, taxes or other outgoings in respect of the common
      parts of the Building.

10.   The provision, repair, maintenance and renewal of fire alarm systems and
      fire extinguishing equipment throughout the Building.

11.   The carrying out of fire, health and safety and disability audits.

12.   The carrying out in accordance with the directions of the insurers such
      works to any part of the Building as may be required or reasonably
      recommended by them.

13.   The compliance with the requirements of any Statutes whether now in
      existence or hereafter to be made in respect of the Building or the use
      thereof.

<PAGE>

                                       44

                                     PART 3

1.    The employment of staff or outside agencies for the maintenance and upkeep
      of and the provision of services in the Building.

2.    The provision of uniforms, overalls and protective clothing for staff
      required in connection with their duties.

3.    The provision of living accommodation for staff and the payment of all
      rates, taxes and other outgoings in respect of such accommodation.

4.    The provision of arrangements for the safety and security of the Building
      including the installation, repair, maintenance, renewal and replacement
      of a closed circuit television system and the cost of pest control
      services.

5.    The provision, maintenance, renewal and replacement of planting in the
      common parts of the Building.

6.    The carpeting and furnishing of the common parts of the Building.

7.    The provision, repair, maintenance, renewal and improvement of any
      public address systems and sprinkler equipment through the Building.

<PAGE>

                                       45

                                   SCHEDULE 8

                               DEEDS AND DOCUMENTS

<TABLE>
<CAPTION>
DATE                DOCUMENT                 PARTIES
<S>                 <C>                      <C>
30.12.1950          Conveyance               The Trustees of the Welsh Wesleyan Methodist Chapel, City Road (1) The Church
                                             Commissioners for England (2)

25.03.1960          Conveyance               The Church Commissioners for England (1) Leigh Commercial Developments Limited (2)

25.03.1960          Transfer                 The Church Commissioners for England (1) Leigh Commercial Developments Limited (2)

18.04.1962          Transformer              Leigh Commercial Developments Limited (1) The London Electricity Board (2)
                    Chamber Lease

02.08.1965          Transfer                 Leigh Commercial Developments Limited (1) Kennedy Leigh Commercial Properties Limited
                                             (2) Leigh Industrial Developments Limited (3) Kennedy Leigh (Holdings) Limited (4)
                                             Leigh London & Provincial Properties Limited (5) The British Newburn Company Limited
                                             (6) Commerce & Industry House Limited (7) The Norwich Union Life Insurance Society (8)

18.11.1966          Agreement as to          The Trustees of Wesley's Chapel (1) The Norwich Union Life Insurance Society (2) The
                    Rights of Light          Minister of Public Building and Works (3)

13.01.1987          Agreement                Norwich Union Life Insurance Society (1) The Secretary of State for the Environment
                                             (2) Trustees for Methodist Church Purposes (3)

08.09.1988          Section 52               The London Borough of Islington (1) The Norwich Union Life Insurance Society (2)
                    Agreement

22.10.1999          Section 106              The London Borough of Islington (1) Colebrook Estates Limited (2)
                    Agreement
</TABLE>

<PAGE>

                                       46

The common seal of                          )
DERWENT VALLEY LONDON LIMITED               )
was hereunto affixed in the                 )
presence of:                                )

                                Director

                                Secretary

The common seal of                          )
PENSON FINANCIAL SERVICES                   )
LIMITED                                     )
was hereunto affixed in the                 )
presence of:                                )

                                Director

                                Secretary

Executed as a deed by                       )
PENSION WORLDWIDE, INC                      )
acting by Dan Son                           )
                                            )
                                            )

The common seal of                          )
DERWENT VALLEY CENTRAL LIMITED              )
was hereunto affixed in the                 )
presence of:                                )

                                Director

                                Secretary

<PAGE>

                                 LEASE DETAILS

DATE                 :                       2005.

LANDLORD             :      DERWENT VALLEY LONDON LIMITED (registered in
                            England number 229333) whose registered office is at
                            25 Savile Row, London W1S 2ER.

TENANT               :      PENSON FINANCIAL SERVICES LIMITED (registered in
                            England number 02331085) whose registered office is
                            at One Oliver's Yard, City Road, London EC1Y 1HQ.

SURETY                      PENSON WORLDWIDE, INC of 1700 Pacific Avenue, Suite
                            1400 Dallas TX 752021.

HEAD LANDLORD        :      DERWENT VALLEY CENTRAL LIMITED (registered in
                            England no 205226) whose registered office is at 25
                            Savile Row, London W1S 2ER.

PREMISES             :      Part Second Floor of 1 Oliver's Yard, London EC2,
                            shown edged red on Plan 1 annexed hereto.

TERM                 :      commencing on and including     up to and including
                            23rd June 2014.

BREAK DATE                  23rd June 2009.

YEARLY RENT          :      Fifty Eight Thousand Six Hundred and Eighty-Eight
                            pounds ((pound)58,688) per annum exclusive.

RENT                 :      11 August 2005
COMMENCEMENT
DATE

REVIEW DATE          :      24th June 2009

PERMITTED USE        :      Offices within Class B1 (a) of the Schedule to the
                            Town and Country Planning (Use Clauses) Order 1987.

<PAGE>

                        DATED                       2005

                          DERWENT VALLEY LONDON LIMITED

                                       AND

                       PENSON FINANCIAL SERVICES LIMITED

                                       AND

                              PENSON WORLDWIDE INC

                                       AND

                         DERWENT VALLEY CENTRAL LIMITED

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

                                     LEASE

                              OF PART SECOND FLOOR,
                         OF 1 OLIVER'S YARD, LONDON EC2

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

           TERM:  FROM         UP TO AND INCLUDING 23RD JUNE 2014
           (WITH TENANT'S RIGHT TO BREAK ON 23RD JUNE 2009)

           RENT: (pound)58,688 PER ANNUM EXCLUSIVE (SUBJECT TO REVIEW)

                                SLAUGHTER AND MAY
                                ONE BUNHILL ROW
                                     EC1Y8YY
                              TEL NO: 020 7600 1200
                              FAX NO: 020 7090 5000
                                  REF: DJB/RXYS
                               PR043230086 (26224)

<PAGE>

THIS LICENCE is made the                               day of
Two thousand and Five

BETWEEN:

1.    DERWENT VALLEY LONDON LIMITED (registered in England number 229333) whose
      registered office is at 25 Savile Row, London W1S 2ER;

2.    PENSON FINANCIAL SERVICES LIMITED (registered in England number 02331085)
      whose registered office is at 1 Oliver's Yard, City Road, London EC1Y 1HQ;

3.    PENSON WORLDWIDE, INC of 1700 Pacific Avenue, Suite 1400, Dallas TX 75021;

AND

4.    DERWENT VALLEY CENTRAL LIMITED (registered in England number 205226) whose
      registered office is at 25 Savile Row, London W1S 2ER.

THIS DEED WITNESSES as follows:

1.    GENERAL

1.1   In this deed, except where the context otherwise requires, the following
      words and expressions have the following meanings:

      "THE BUILDING" means 1 Oliver's Yard, London EC2 as more particularly
      described in the Lease;

      "THE CONSENTS" means all requisite licences, consents, permissions and
      approvals from the relevant planning and other competent authorities;

      "THE DEMISED PREMISES" means part second floor, One Oliver's Yard, London
      EC2 as more particularly described in the Lease;

      "THE HEAD LANDLORD" means the fourth named party to this deed;

      "THE LANDLORD" means the first named party to this deed and includes the
      person for the time being entitled to the reversion immediately expectant
      on the determination of the term;

      "THE LEASE" means a lease dated             and made between the parties
      to this deed and any consent, licence, approval or other instrument made
      under or supplemental to it whether varying it or not and made before the
      date of this deed;

      "THE PLANNING ACTS" means the Town and Country Planning Act 1990, the
      Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning
      (Consequential Provisions) Act 1990 and the Planning and Compensation Act
      1991;

<PAGE>

                                        2

      "THE REGULATIONS" means the Construction (Design and Management)
      Regulations 1994;

      "THE SPECIFICATION" means the plans detailed in the schedule, copies of
      which are annexed;

      "THE SURETY" means the third named party to this deed;

      "THE TENANT" means the second named party to this deed and includes its
      successors in title and assigns;

      "THE TERM" means the term of years granted by the Lease; and

      "THE WORKS" means the alterations to the demised premises described in the
      Specification and includes the reinstatement referred to in this deed.

1.2   Any amounts payable by the Tenant under this deed shall be recoverable as
      arrears of rent under the Lease.

1.3   The condition for re-entry in the Lease shall be exercisable on any breach
      of any covenant in this deed as well as on the happening of any of the
      events referred to in the Lease.

1.4   This deed is supplemental to the Lease.

1.5   In this deed, unless otherwise specified:

      (A)   a reference to any statute or statutory provision shall be construed
            as a reference to it as it may have been or may in the future be
            amended, modified or re-enacted and to any statutory instrument,
            order, byelaw or other provision that may have been or may in the
            future be made under it;

      (B)   where a party consists of two or more persons the obligations of
            such persons shall be joint and several;

      (C)   nothing in this deed shall release or in any way lessen the
            liability of any person to the Landlord in respect of the covenants
            and conditions in the Lease or constitute a waiver of any
            outstanding breach;

      (D)   nothing in this deed permits any action not permitted expressly; and

      (E)   headings to clauses are for convenience only and do not affect the
            interpretation of this deed.

2.    WORKS

      The Landlord grants licence for the carrying out of the Works.

<PAGE>

                                        3

3.    PRIOR TO COMMENCEMENT

      The Tenant covenants with the Landlord not to commence the Works before:

      (A)   the Consents for the Works have been obtained; and

      (B)   the Landlord has been notified in writing of the commencement of the
            Works.

4.    COVENANTS RELATING TO THE WORKS

      The Tenant covenants with the Landlord:

      (A)   to comply with the Consents for the Works;

      (B)   to comply with every enactment (which expression in this sub-clause
            includes any and every statute now or for the time being in force
            and every order, regulation, byelaw or direction made or issued
            under or in pursuance of any such statute) and every provision,
            requirement or direction of any governmental, local or other
            competent authority relating to the Works;

      (C)   not to carry out the Works otherwise than in a good and workmanlike
            manner with suitable materials of good quality and in accordance
            with the Specification to the reasonable satisfaction of the
            Landlord;

      (D)   to allow the Landlord to inspect and test the Works whilst they are
            progressing and after their completion;

      (E)   to carry out the Works with the least possible inconvenience or
            annoyance to the Landlord and any owners or occupiers of adjoining
            or neighbouring premises and to make good forthwith all damage
            arising out of or incidental to the Works;

      (F)   to permit the Landlord and all persons authorised by the Landlord
            (but without prejudice to the right of re-entry contained in the
            Lease) to enter upon the demised premises to remedy any breaches of
            the covenants contained in this deed of which written notice is
            given by the Landlord and to pay the proper costs incurred by the
            Landlord in so doing on demand;

      (G)   to produce on demand such evidence as the Landlord may reasonably
            require to satisfy itself that the covenants contained in this deed
            have been complied with; and

      (H)   on completion of the Works to supply to the Landlord two copies of
            as-built drawings showing the completed Works and a copy of the
            operation and maintenance instructions necessary for the safe and
            efficient operation and maintenance of any plant comprised in the
            Works.
<PAGE>

                                       4

5.    REGULATIONS

      The Tenant covenants with the Landlord to the extent the Regulations apply
      to the Works:

      (A)   to observe and perform and to ensure that the contractors carrying
            out the Works and the architects, engineers or other persons engaged
            in connection with the Works observe and perform their respective
            obligations under the Regulations;

      (B)   to advise the Landlord of the identity of the appointed planning
            supervisor;

      (C)   to advise the Landlord of the identity of the appointed principal
            contractor;

      (D)   to provide the Landlord with a copy of the health and safety plan
            and any amendments or additions made to it;

      (E)   on completion of the Works to deliver to the Landlord a copy of the
            completed and updated health and safety file and on the expiration
            or sooner determination of the Lease the original health and safety
            file;

      (F)   on an assignment of the Lease, to deliver to the assignee the
            completed and updated health and safety file; and

      (G)   to provide to the Landlord a copy of the declaration made under
            Regulation 4 and any other declaration made or notice given or
            received under the Regulations in connection with the Works.

6.    REINSTATEMENT

      The Tenant covenants with the Landlord to dismantle and remove the Works
      and in a good and workmanlike manner reinstate and make good the demised
      premises and the Building and restore the same to the state and condition
      in which they were prior to the commencement of the Works to the
      reasonable satisfaction of the Landlord:

      (A)   on demand if in the reasonable opinion of the Landlord such
            reinstatement is required to remedy or prevent damage to the demised
            premises or to any adjoining or neighbouring premises;

      (B)   on demand if any of the Consents for the Works is withdrawn or
            lapses;

      (C)   on demand upon the licence contained in this deed becoming void; and

      (D)   during the period of six months immediately preceding the expiration
            or sooner determination of the term unless released by the Landlord
            in writing from compliance with this obligation.

<PAGE>
                                       5

7.    COSTS AND EXPENSES

      The Tenant covenants with the Landlord throughout the term:

      (A)   to pay and satisfy any charge or levy imposed under the Planning
            Acts in respect of the carrying out of the Works;

      (B)   to indemnify and keep indemnified the Landlord from and against all
            actions, costs, claims, demands and expenses arising as a result of
            the carrying out of the Works or any breach or non-observance of the
            covenants contained in this deed or by reason and of any act or
            default of the Tenant or its agents, servants or licensees;

      (C)   to indemnify the Landlord against any tax or imposition which
            becomes payable by reason of the carrying out of the Works and
            against any additional tax or imposition which either during or
            after the expiration or sooner determination of the term becomes
            payable in respect of the demised premises.

8.    AGREEMENT AND DECLARATION

      It is agreed and declared that:

      (A)   the licence contained in this deed is voidable at the option of the
            Landlord without prejudice to its rights under this deed if:

            (i)   the Consents for the Works are not obtained and produced to
                  the Landlord within 3 months after the date of this deed, or

            (ii)  the Works are not commenced and commencement notified to the
                  Landlord within 6 months after the date of this deed, or

            (iii) the Works are not completed and completion notified to the
                  Landlord within 6 months after the date of this deed, or

            (iv)  the Tenant fails to make good all breaches of the covenants
                  contained in this deed of which written notice is given by the
                  Landlord within one month after the giving of such notice or
                  sooner if requisite;

      (B)   nothing in this deed nor any approval of the Specification or the
            Works whilst progressing or when completed shall release any party
            from the covenants in this deed or in the Lease or imply or
            constitute any representation or warranty on the part of the
            Landlord, its solicitors, surveyors or professional advisers that
            the demised premises and their services are suitable for the purpose
            of the Works;

      (C)   the lessee's covenants and conditions contained in the Lease shall
            apply to the demised premises in their altered state after
            completion of the Works;

<PAGE>
                                       6

      (D)   nothing in this deed nor any notice, specification or plan of the
            Works served on the Landlord shall be deemed to be notice under the
            Landlord and Tenant Acts 1927 and 1954 of an intention to make
            improvements to the demised premises and there shall be no
            entitlement to compensation in respect of the Works at the
            expiration or sooner determination of the term; and

      (E)   any effect on the rental value of the demised premises caused by the
            Works or by the obligations contained in this deed shall be
            disregarded for the purpose of any review of rent under the Lease.

9.    CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      The parties to this deed do not intend that any term of this deed is to be
      enforceable, by virtue of the Contracts (Rights of Third Parties) Act
      1999, by any person who is not a party to this deed.

10.   SURETY

      At the request of the Tenant, the Surety joins in this deed for the
      purpose of acknowledging it is bound by it and that the obligations of the
      Tenant under the Lease extends to the obligations of the Tenant under this
      deed.

11.   HEAD LANDLORD

      The Head Landlord permits the Landlord to grant the Licence contained in
      this deed.

IN WITNESS whereof the parties have executed this document as a deed the day and
year first before written.

<PAGE>
                                       7

The common seal of                          )
DERWENT VALLEY LONDON LIMITED               )
was hereunto affixed in the                 )
presence of:                                )

                                 Director

                                Secretary

The common seal of                          )
PENSON FINANCIAL SERVICES                   )
LIMITED                                     )
was hereunto affixed in the                 )
presence of:                                )

                                 Director

                                Secretary

Executed as a deed by                       )
PENSON WORLDWIDE, INC                       )
acting by Dan Son                           )

The common seal of                          )
DERWENT VALLEY CENTRAL LIMITED              )
was hereunto affixed in the                 )
presence of:                                )

                                 Director

                                Secretary

<PAGE>

            DATED                                          2005

                          DERWENT VALLEY LONDON LIMITED

                                       AND

                       PENSON FINANCIAL SERVICES LIMITED

                                       AND

                             PENSON WORLDWIDE, INC

                                       AND

                         DERWENT VALLEY CENTRAL LIMITED

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

                            LICENCE FOR ALTERATIONS

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

                        PREMISES:  PART SECOND FLOOR, 1
                                   OLIVER'S YARD, LONDON
                                   EC2

                               SLAUGHTER AND MAY
                                ONE BUNHILL ROW
                                LONDON EC1Y 8YY
                             TEL NO: 020 7600 1200
                             FAX NO: 020 7090 5000
                                 REF: DJB/RXYS
                              (41080) PR050770072<PAGE>

                                                                    EXHIBIT 10.7

================================================================================

                  CONFORMED AMENDED AND RESTATED LOAN AGREEMENT
                         THROUGH THE ELEVENTH AMENDMENT
                            DATED AS OF MARCH 24,2005

                              Dated April 30, 2001

                                    between

                        SERVICE ASSET INVESTMENTS, INC.

                                       and

                                 GUARANTY BANK

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                    Page
                                                                                                    ----
<S>                                                                                                 <C>
ARTICLE I      Definitions......................................................................       1
    Section 1.1.        Definitions.............................................................       1
    Section 1.2.        Other Definitional Provisions...........................................       9

ARTICLE II     Term Loan........................................................................       9
    Section 2.1.        Terra Loan..............................................................       9
    Section 2.2.        Term Note...............................................................       9
    Section 2.3.        Repayment of Term Loan..................................................      10
    Section 2.4.        Interest................................................................      10
    Section 2.5.        Use of Proceeds.........................................................      10
    Section 2.6.        Amendment Fee...........................................................      10
    Section 2.7.        Commitment Fee..........................................................      10
    Section 2.8.        Commitment Fee..........................................................      10

ARTICLE III    [INTENTIONALLY OMITTED]..........................................................      10

ARTICLE IV     Payments.........................................................................      10
    Section 4.1.        Method of Payment.......................................................      10
    Section 4.2.        Taxes...................................................................      10
    Section 4.3.        Intentionally Omitted...................................................      11

ARTICLE V      [INTENTIONALLY OMITTED]..........................................................      11

ARTICLE VI     Security.........................................................................      11
    Section 6.1.        Collateral..............................................................      12
    Section 6.2.        Setoff..................................................................      12

ARTICLE VII    Conditions Precedent.............................................................      12
    Section 7.1.        Term Loan...............................................................      12

ARTICLE VIII Representations and Warranties.....................................................      14
    Section 8.1.        Corporate Existence.....................................................      14
    Section 8.2.        Financial Statements....................................................      14
    Section 8.3.        Corporate Action; No Breach.............................................      15
    Section 8.4.        Operation of Business...................................................      15
    Section 8.5.        Litigation and Judgments................................................      15
    Section 8.6.        Rights in Properties; Liens.............................................      15
    Section 8.7.        Enforceability..........................................................      15
    Section 8.8.        Approvals...............................................................      15
    Section 8.9.        Debt....................................................................      15
    Section 8.10.       Taxes...................................................................      15
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                   <C>
    Section 8.11.       Margin Stock............................................................      16
    Section 8.12.       ERISA...................................................................      16
    Section 8.13.       Disclosure..............................................................      16
    Section 8.14.       Subsidiaries............................................................      16
    Section 8.15.       Agreements..............................................................      16
    Section 8.16.       Compliance With Laws....................................................      16
    Section 8.17.       Investment Company Act..................................................      17
    Section 8.18.       Public Utility Holding Company Act......................................      17
    Section 8.19.       Environmental Matters...................................................      17

ARTICLE IX     Positive Covenants...............................................................      18
    Section 9.1.        Reporting Requirements..................................................      18
    Section 9.2.        Maintenance of Existence; Conduct of Business...........................      19
    Section 9.3.        Maintenance of Properties...............................................      19
    Section 9.4.        Taxes and Claims........................................................      19
    Section 9.5.        Insurance...............................................................      19
    Section 9.6.        Inspection Rights.......................................................      20
    Section 9.7.        Keeping Books and Records...............................................      20
    Section 9.8.        Compliance with Laws and Agreements.....................................      20
    Section 9.9.        Further Assurances......................................................      20
    Section 9.10.       ERISA...................................................................      20

ARTICLE X      Negative Covenants...............................................................      20
    Section 10.1.       Debt....................................................................      20
    Section 10.2.       Limitation on Liens.....................................................      21
    Section 10.3.       Mergers, Etc............................................................      21
    Section 10.4.       Loans and Investments...................................................      21
    Section 10.5.       Transactions With Affiliates............................................      22
    Section 10.6.       Disposition of Assets...................................................      22
    Section 10.7.       Sale and Leaseback......................................................      22
    Section 10.8.       Prepayment of Debt......................................................      22
    Section 10.9.       Nature of Business......................................................      23
    Section 10.10.      Environmental Protection................................................      23
    Section 10.11.      Limitation on New Subsidiaries..........................................      23
    Section 10.12.      Accounting..............................................................      23
    Section 10.13.      Limitation on Issuance of Capital Stock.................................      23
    Section 10.14.      Restricted Payments.....................................................      23
    Section 10.15.      Change in Management....................................................      23
    Section 10.16.      No Negative Pledges.....................................................      24
    Section 10.17.      No Restrictive Agreements...............................................      24
    Section 10.18.      Penson Worldwide Debt...................................................      24
    Section 10.19.      Short Term Debt.........................................................      24

ARTICLE XI     Financial Covenants..............................................................      24
    Section 11.1.       Monthly Liquidity Maintenance...........................................      24
    Section 11.2.       Intentionally Omitted...................................................      24
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                                   <C>
    Section 11.3.       PFS Minimum EBITDA Requirement..........................................      24
    Section 11.4.       Monthly Minimum Capital Requirements....................................      25
    Section 11.5.       Penson Worldwide Quarterly Minimum Tangible Net Worth...................      25
    Section 11.6.       Minimum Debt Service Coverage Requirement...............................      25
    Section 11.7.       Penson Worldwide EBITDA.................................................      25
    Section 11.8.       Intentionally Omitted...................................................      25
    Section 11.9.       Intentionally Omitted...................................................      25

ARTICLE XII    Default..........................................................................      25
    Section 12.1.       Events of Default.......................................................      25
    Section 12.2.       Remedies Upon Default...................................................      27
    Section 12.3.       Setoff..................................................................      27
    Section 12.4.       Performance by Bank.....................................................      28

ARTICLE XIII   Miscellaneous....................................................................      28
    Section 13.1.       Expenses................................................................      28
    Section 13.2.       INDEMNIFICATION.........................................................      28
    Section 13.3.       Limitation of Liability.................................................      29
    Section 13.4.       No Fiduciary Relationship...............................................      29
    Section 13.5.       No Waiver; Cumulative Remedies..........................................      29
    Section 13.6.       Successors and Assigns..................................................      29
    Section 13.7.       Survival................................................................      29
    Section 13.8.       Amendment...............................................................      29
    Section 13.9.       Maximum Interest Rate...................................................      30
    Section 13.10.      Notices.................................................................      30
    Section 13.11.      GOVERNING LAW; VENUE; SERVICE OF PROCESS................................      30
    Section 13.12.      Counterparts............................................................      31
    Section 13.13.      Severability............................................................      31
    Section 13.14.      Headings................................................................      31
    Section 13.15.      Non-Application of Chapter 346 of Texas Finance Code....................      31
    Section 13.16.      Participations..........................................................      31
    Section 13.17.      Construction............................................................      31
    Section 13.18.      WAIVER OF JURY TRIAL....................................................      31
    Section 13.19.      NO ORAL AGREEMENTS......................................................      31
</TABLE>

                                      iii
<PAGE>

                  CONFORMED AMENDED AND RESTATED LOAN AGREEMENT
           Through the Eleventh Amendment dated as of March 24, 2005

      THIS AMENDED AND RESTATED LOAN AGREEMENT (this "Agreement"), dated as of
April 30, 2001, is by and between SERVICE ASSET INVESTMENTS, INC., a Texas
corporation ("Borrower"), and GUARANTY BANK, a federal savings bank, formerly
known as Guaranty Federal Bank, F.S.B. ("Bank").

                                   RECITALS:

      This Agreement amends and restates that certain Loan Agreement dated as of
March 30, 2000, as amended by that certain First Amendment to Loan Agreement
dated as of July 31, 2000, that certain Second Amendment to Loan Agreement dated
as of September 1, 2000, that certain Third Amendment to Loan Agreement dated as
of January 1, 2001, that certain Fourth Amendment to Loan Agreement dated as of
April 30, 2001, that certain Fifth Amendment to Loan Agreement dated as of March
31, 2003, that certain Sixth Amendment to Loan Agreement dated as of June 30,
2003, that certain Seventh Amendment to Loan Agreement dated as of September 30,
2003; that certain Eight Amendment to Loan Agreement dated as of December 31,
2003, that certain Ninth Amendment to Loan Agreement dated as of October 4,
2004, and that certain Tenth Amendment to Loan Agreement dated as of November 1,
2004.

      Borrower has requested Bank to extend credit to Borrower and to
consolidate previous extensions of credit to Borrower in the form of a term loan
in the principal amount of $32,244,099.00 (the "Term Loan"). Bank is willing to
make the extensions of credit described above available to Borrower upon the
terms and conditions hereinafter set forth. [8], [9], [11]

      NOW THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

      Section 1.1. Definitions. As used in this Agreement, in addition to any
other terms defined herein, the following terms have the following meanings
indicated below:

            "Affiliate" means, as to any Person, any other Person (a) that
      directly or indirectly, through one or more intermediaries, controls or is
      controlled by, or is under common control with, such Person; (b) that
      directly or indirectly beneficially owns or holds five percent or more of
      any class of voting stock of such Person; or (c) five percent or more of
      the voting stock of which is directly or indirectly beneficially owned or
      held by the Person in question. The term "control" means the possession,
      directly or indirectly, of the power to direct or cause direction of the
      management and policies of a Person, whether through the ownership of
      voting securities, by contract, or otherwise; provided, however, in no
      event shall Bank be deemed an Affiliate of Borrower or any of its
      Subsidiaries.

            "Borrower" has the meaning assigned to it in the introductory
      paragraph hereof.

<PAGE>

            "Business Day" means (a) any day on which commercial banks are not
      authorized or required to close in Dallas, Texas.

            "Canada" means Penson Financial Services Canada, Inc., formerly
      known as ECE Electronic Clearing, Inc., a Canadian subsidiary of Penson.
      [3]

            "Capital Investment" means the investment of at least $25,000,000 of
      capital into Penson Worldwide, which shall not include any loans made
      under this Agreement. [9]

            "Capital Lease Obligations" means, as to any Person, the obligations
      of such Person to pay rent or other amounts under a lease of (or other
      agreement conveying the right to use) real and/or personal property, which
      obligations are required to be classified and accounted for as a capital
      lease on a balance sheet of such Person under GAAP. For purposes of this
      Agreement, the amount of such Capital Lease Obligations shall be the
      capitalized amount thereof, determined in accordance with GAAP.

            "Code" means the Internal Revenue Code of 1986, as amended, and the
      regulations promulgated and rulings issued thereunder.

            "Collateral" has the meaning specified in Section 6.1.

            "Commercial Base Rate" means, at any time, the base rate announced
      or published from time to time by Bank, which rate may not be the lowest
      rate charged by Bank; it being understood and agreed that the Commercial
      Base Rate shall increase or decrease, as the case may be, from time to
      time as of the effective date of each change in such base rate, and may
      not correspond with future increases or decreases in interest rates
      charged by other lenders or market rates in general.

            "Convertible Note" means that certain Convertible Promissory Note
      executed by Penson Worldwide dated as of June 16, 2003 in the principal
      amount of $6,000,000 and payable to Call Now, Inc. [6]

            "Debit Balances" means the outstanding balances attributable to a
      Person's margin lending activities.

            "Debt" means as to any Person at any time (without duplication): (a)
      all obligations of such Person for borrowed money, (b) all obligations of
      such Person evidenced by bonds, notes, debentures, or other similar
      instruments, (c) all obligations of such Person to pay the deferred
      purchase price of property or services, except trade accounts payable of
      such Person arising in the ordinary course of business, (d) all Capital
      Lease Obligations of such Person, (e) all Debt or other obligations of
      others Guaranteed by such Person, (f) all obligations secured by a Lien
      existing on property owned by such Person, whether or not the obligations
      secured thereby have been assumed by such Person or are non-recourse to
      the credit of such Person, (g) all reimbursement obligations of such
      Person (whether contingent or otherwise) in respect of letters of credit,
      bankers' acceptances, surety or other bonds and similar instruments, and
      (h) all liabilities of such Person in respect of unfunded vested benefits
      under any Plan.

            "Debt Service" means the sum of scheduled principal payments on all
      Debt owed to Bank for the next succeeding twelve (12) calendar months.

                                       -2-
<PAGE>

            "Debt Service Coverage Ratio" means the ratio of EBITDA to (a)
      current maturities of long term Debt plus (b) interest expense plus (c)
      cash taxes paid, all calculated on a cumulative basis during each fiscal
      year and all calculated on a consolidated basis. [1]

            "Default" means an Event of Default or the occurrence of an event or
      condition which with notice or lapse of time or both would become an Event
      of Default.

            "Default Rate" means the lesser of (a) the Maximum Rate, or (b) the
      sum of the Commercial Base Rate in effect from day to day plus five
      percent (5%).

            "Dollars" and "$" mean lawful money of the United States of America.

            "EBITDA" means, for each period of determination, the sum of (a)
      consolidated net income of a Person and its Subsidiaries for such period,
      as determined in accordance with GAAP, plus (b) to the extent deducted in
      arriving at consolidated net income for the period, depreciation,
      amortization, non-cash charges, taxes, and interest expense of such Person
      and its Subsidiaries for such period.

            "Effective Date" means the date upon which all parties execute this
      Agreement.

            "Environmental Laws" means any and all federal, state, and local
      laws, regulations, and requirements pertaining to health, safety, or the
      environment, including, without limitation, the Comprehensive
      Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
      Section 9601 et seq., the Resource Conservation and Recovery Act of 1976,
      42 U.S.C. Section 6901 et seq., the Occupational Safety and Health Act, 29
      U.S.C. Section 651 et seq., the Clean Air Act, 42 U.S.C. Section 7401 et
      seq., the Clean Water Act, 33 U.S.C. Section 1251 et seq., and the Toxic
      Substances Control Act, 15 U.S.C. Section 2601 et seq., as such laws,
      regulations, and requirements may be amended or supplemented from time to
      time.

            "Environmental Liabilities" means, as to any Person, all
      liabilities, obligations, responsibilities, Remedial Actions, losses,
      damages, punitive damages, consequential damages, treble damages, costs,
      and expenses, (including, without limitation, all reasonable fees,
      disbursements and expenses of counsel, expert and consulting fees and
      costs of investigation and feasibility studies), fines, penalties,
      sanctions, and interest incurred as a result of any claim or demand, by
      any Person, whether based in contract, tort, implied or express warranty,
      strict liability, criminal or civil statute, including any Environmental
      Law, permit, order or agreement with any Tribunal or other Person, arising
      from environmental, health or safety conditions or the Release or
      threatened Release of a Hazardous Material into the environment, resulting
      from the past, present, or future operations of such Person or its
      Affiliates.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      as amended from time to time, and the regulations and published
      interpretations thereunder.

            "ERISA Affiliate" means any corporation or trade or business which
      is a member of the same controlled group of corporations (within the
      meaning of Section 414(b) of the Code) as Borrower or is under common
      control (within the meaning of Section 414(c) of the Code) with Borrower.

                                       -3-
<PAGE>

            "Event of Default" has the meaning specified in Section 12.1.

            "Futures" means Penson Financial Futures, Inc., a subsidiary of
      Borrower. [2]

            "GAAP" means generally accepted accounting principles, applied on a
      consistent basis, as set forth in Opinions of the Accounting Principles
      Board of the American Institute of Certified Public Accountants and/or in
      statements of the Financial Accounting Standards Board and/or their
      respective successors and which are applicable in the circumstances as of
      the date in question. Accounting principles are applied on a "consistent
      basis" when the accounting principles applied in a current period are
      comparable in all material respects to those accounting principles applied
      in a preceding period.

            "Guarantee" by any Person means any obligation, contingent or
      otherwise, of such Person directly or indirectly guaranteeing any Debt or
      other obligation of any other Person and, without limiting the generality
      of the foregoing, any obligation, direct or indirect, contingent or
      otherwise, of such Person (a) to purchase or pay (or advance or supply
      funds for the purchase or payment of) such Debt or other obligation
      (whether arising by virtue of partnership arrangements, by agreement to
      keep-well, to purchase assets, goods, securities or services, to
      take-or-pay, or to maintain financial statement conditions or otherwise)
      or (b) entered into for the purpose of assuring in any other manner the
      obligee of such Debt or other obligation of the payment thereof or to
      protect the obligee against loss in respect thereof (in whole or in part),
      provided that the term Guarantee shall not include endorsements for
      collection or deposit in the ordinary course of business. The term
      "Guarantee" used as a verb has a corresponding meaning.

            "Hazardous Material" means any substance, product, waste, pollutant,
      material, chemical, contaminant, constituent, or other material which is
      or becomes listed, regulated, or addressed under any Environmental Law,
      including, without limitation, asbestos, petroleum, and polychlorinated
      biphenyls.

            "Integrated" means Integrated Trading Solutions, Inc., a Delaware
      corporation, a subsidiary of Borrower. [3]

            "Keefe" means, collectively, Keefe Managers, LLC, Keefe Ventures,
      LLC, Keefe Performance Holdings, LLC and Rainbow Performance Holdings,
      LLC. [9]

            "Keefe Investment" means that certain transaction in which the
      Borrower shall acquire an approximately 20% interest in Keefe. The total
      consideration shall include $2,400,000 of cash at closing. (9]

            "Law" means all statutes, laws, ordinances, rules, regulations,
      orders, writs, injunctions or decrees of any Tribunal.

            "Lien" means any lien, mortgage, security interest, tax lien,
      financing statement, pledge, charge, hypothecation, assignment,
      preference, priority, or other encumbrance of any kind or nature
      whatsoever (including, without limitation, any conditional sale or title
      retention agreement), whether arising by contract, operation of law, or
      otherwise.

                                       -4-
<PAGE>

            "Loan Documents" means this Agreement, the Notes, the Pledge
      Agreement, the Penson Pledge Agreement, and all other instruments,
      documents, and agreements executed and delivered pursuant to or in
      connection with this Agreement, as such instruments, documents, and
      agreements may be amended, restated, modified, renewed, extended, or
      supplemented from time to time.

            "Material Adverse Effect" means (a) the occurrence of any event or
      condition that could reasonably be expected to have a material adverse
      effect on (i) the business, condition (financial or otherwise),
      operations, prospects, or properties of Borrower and Subsidiaries taken as
      a whole, (ii) the ability of Borrower and Subsidiaries, taken as a whole,
      to carry out their business, or (iii) the ability of Borrower and
      Subsidiaries, taken as a whole, to perform the obligations under the
      Notes, this Agreement and the other Loan Documents in accordance with
      their respective obligations; or (b) an Event of Default hereunder.

            "Maturity Date" means October 4, 2009. [1], [9]

            "Maximum Rate" means, at any time, the maximum non-usurious rate of
      interest under applicable law that Bank may charge Borrower. The Maximum
      Rate shall be calculated in a manner that takes into account any and all
      fees, payments, and other charges in respect of the Loan Documents that
      constitute interest under applicable law. Each change in any interest rate
      provided for herein based upon the Maximum Rate resulting from a change in
      the Maximum Rate shall take effect without notice to Borrower at the time
      of such change in the Maximum Rate. For purposes of determining the
      Maximum Rate under Texas law, the applicable rate ceiling shall be the
      applicable weekly ceiling described in, and computed in accordance with,
      Chapter 303 of the Texas Finance Code, as the same may be amended.

            "Monthly Payment Date" means the first day of each calendar month,
      commencing May 1, 2001.

            "Multiemployer Plan" means a multiemployer plan defined as such in
      Section 3(37) of ERISA to which contributions have been made by Borrower
      or any ERISA Affiliate and which is covered by Title IV of ERISA.

            "Nexa" means Nexa Technologies, Inc., a Delaware corporation. [9]

            "Nexa Debt" means that certain Debt in a principal amount not to
      exceed $3,500,000 owed by Penson Worldwide to Vista Mark Holdings, Inc.
      and certain Nexa employees in connection with the Nexa Investment. [9]

            "Nexa Investment" means that certain transaction that shall have
      occurred on or about July 31, 2004, in which Nexa shall be formed and
      capitalized and Penson Worldwide and/or Nexa shall acquire substantially
      all of the assets and liabilities of Nexa Technologies, Inc., a California
      corporation. The total consideration shall include $625,000 of cash at
      closing, approximately $2,000,000 in Penson Worldwide stock, the Nexa
      Debt, and certain royalty and incentive payments, as well as salaries and
      related compensation to employees of Nexa Technologies, Inc., a California
      corporation. [9]

                                       -5-
<PAGE>

            "Note" or "Notes" means the Term Note, and collectively, any and all
      promissory notes executed at any time by Borrower and payable to the order
      of Bank, as the same may be renewed, extended, modified and/or increased
      from time to time.

            "Obligated Party" means any Person who is or becomes party to any
      agreement that guarantees or secures payment and performance of the
      Obligations or any part thereof.

            "Obligations" means all obligations, indebtedness, and liabilities
      of Borrower to Bank, now existing or hereafter arising, whether direct,
      indirect, related, unrelated, fixed, contingent, liquidated, unliquidated,
      joint, several, or joint and several, including, without limitation, the
      obligations, indebtedness, and liabilities of Borrower under this
      Agreement, the Notes and the other Loan Documents and all interest
      accruing thereon and all attorneys' fees and other expenses incurred in
      the enforcement or collection thereof.

            "Other Convertible Debt" means additional Debt owed by Penson
      Worldwide to Permitted Convertible Debt Holders which contains
      substantially similar terms to those contained in the Convertible Note and
      the documents related thereto. Specifically, such additional Debt shall be
      structurally subordinated to the Obligations and shall not mature prior to
      the Maturity Date. [8]

            "PBGC" means the Pension Benefit Guaranty Corporation or any entity
      succeeding to all or any of its functions under ERISA.

            "Penson" means Penson Holdings, Inc. a Delaware corporation,
      formerly known as Penson Worldwide, Inc.

            "Penson Holdings" means Penson Holdings, Inc., a Delaware
      corporation. [9]

            "Penson Pledge Agreement" means the pledge agreement to be executed
      by Penson, pledging the Penson Pledged Stock, in form and substance
      acceptable to Bank, and all extensions, renewals and modifications
      thereof.

            "Penson Pledged Stock" means all shares of capital stock of each
      Subsidiary now directly owned or hereafter acquired by Penson, which shall
      constitute 100% of the issued and outstanding capital stock of such
      Subsidiary. The Penson Pledged Stock shall not include any capital stock
      of Worldwide. [1], [2], [9]

            "Penson Worldwide" means Penson Worldwide, Inc., Borrower's parent
      company. [1]

            "Penson Worldwide Pledge Agreement" means the pledge agreement to be
      executed by Penson Worldwide, pledging the Penson Worldwide Pledged Stock,
      in form and substance acceptable to Bank, and all extensions, renewals and
      modifications thereof. [1]

            "Penson Worldwide Pledged Stock" means all shares of capital stock
      of Borrower and any other Subsidiary now directly owned or hereafter
      acquired by Penson

                                       -6-
<PAGE>

      Worldwide, which shall constitute 100% of the issued and outstanding
      capital stock of Borrower and each such Subsidiary. [1], [9]

            "Permitted Convertible Debt Holders" means (a) Service Lloyd's
      Insurance or Call Now, Inc., and their Affiliates and shareholders and (b)
      shareholders of Penson Worldwide. [8]

            "Person" means any individual, corporation, business trust,
      association, company, partnership, joint venture, Tribunal, or other
      entity.

            "PFS" means Penson Financial Services, Inc., a North Carolina
      corporation, successor-in-interest by merger to Service Asset Management
      Company.

            "Plan" means any employee benefit or other plan established or
      maintained by Borrower or any ERISA Affiliate and which is covered by
      Title IV of ERISA.

            "Pledge Agreement" means the Pledge Agreement of Borrower in favor
      of Bank, in substantially the form of Exhibit "B" hereto, as the same may
      be amended, supplemented or modified from time to time.

            "Pledged Stock" means all shares of capital stock of each
      Subsidiary, now directly owned or hereafter acquired by Borrower, which
      Pledged Stock shall constitute 100% of the issued and outstanding capital
      stock of each such Subsidiary. [1], [2], [3], [9]

            "Principal Office" means the principal office of Bank, presently
      located at 8333 Douglas Avenue, Dallas, Texas 75225.

            "Prohibited Transaction" means any transaction set forth in Section
      406 of ERISA or Section 4975 of the Code.

            "Regulatory Capital" means net capital as defined in, and determined
      in accordance with, Rule 15c3-1 of the Securities and Exchange Commission.

            "Release" means as to any Person, any release, spill, emission,
      leaking, pumping, injection, deposit, disposal, disbursement, leaching, or
      migration of Hazardous Materials into the indoor or outdoor environment or
      into or out of property owned by such Person, including, without
      limitation, the movement of Hazardous Materials through or in the air,
      soil, surface water, ground water, or property.

            "Remedial Action" means, all actions required to (a) clean up,
      remove, treat, or otherwise address Hazardous Materials in the indoor or
      outdoor environment, (b) prevent the Release or threat of Release or
      minimize the further Release of Hazardous Materials so that they do not
      migrate or endanger or threaten to endanger public health or welfare or
      the indoor or outdoor environment, or (c) perform pre-remedial studies and
      investigations and post-remedial monitoring and care.

            "Reportable Event" means any of the events set forth in Section 4043
      of ERISA.

            "SAH" means SAH, Inc., a subsidiary of Borrower. [1]

                                      -7-
<PAGE>

            "SAH Pledge Agreement" means the pledge agreement to be executed by
      SAH, pledging the SAH Pledged Stock, in form and substance acceptable to
      Bank, and all extensions, renewals and modifications thereof. [1]

            "SAH Pledged Stock" means all shares of capital stock of PFS, now
      owned or hereafter acquired by SAH, which shall constitute 100% of the
      issued and outstanding capital stock of PFS. [1], [2]

            "Service Lloyd's Debt" means all Debt owed by Borrower or any
      Affiliate to Service Lloyd's Insurance or its Affiliates, in an amount not
      to exceed $7,500,000, including, without limitation, existing or future
      Debt owed by Penson Worldwide to Service Lloyd's Insurance or its
      Affiliates. [8]

            "Short Term Debt" means Debt owed by Penson Worldwide to Call Now,
      Inc. which may be at any time in a maximum aggregate amount of up to
      $1,500,000 and which may have a maturity that is prior to the Maturity
      Date; provided, however, that no Short Term Debt shall have a term that
      exceeds 90 days and further provided that all Short Term Debt permitted by
      this Agreement shall be subject to the limitations set forth in Section
      10.19 of this Agreement. [8]

            "Subsidiary" means (a) any corporation of which at least a majority
      of the outstanding shares of stock having by the terms thereof ordinary
      voting power to elect a majority of the board of directors of such
      corporation (irrespective of whether or not at the time stock of any other
      class or classes of such corporation shall have or might have voting power
      by reason of the happening of any contingency) is at the time directly or
      indirectly owned or controlled by Borrower or one or more of the
      Subsidiaries or by Borrower and one or more of the Subsidiaries, and (b)
      any other entity (i) of which at least a majority of the ownership, equity
      or voting interest is at the time directly or indirectly owned or
      controlled by one or more of Borrower and the Subsidiaries and (ii) which
      is treated as a subsidiary in accordance with GAAP .

            "SunGard Debt" means that certain Debt in a principal amount not to
      exceed $6,800,000 owed by Penson Worldwide to SunGard Data Systems Inc.
      [6]

            "Tangible Net Worth" means, at any particular time, for any Person,
      the sum of (i) all amounts which, in conformity with GAAP, would be
      included as stockholders' equity on a balance sheet of such Person;
      provided, however, there shall be excluded therefrom: (a) any amount at
      which shares of capital stock of such Person appear as an asset on such
      Person's balance sheet, (b) goodwill, including any amounts, however
      designated, that represent the excess of the purchase price paid for
      assets on stock over the value assigned thereto, (c) patents, trademarks,
      trade names, and copyrights, (d) deferred expenses, (e) loans and any
      advances to any stockholder, director, officer, or employee of such Person
      or any Affiliate of such Person, and (f) all other assets which are
      properly classified as intangible assets.

            "Taxes" means all taxes, levies, assessments, fees, withholdings or
      other charges at any time imposed by any Laws or Tribunal.

            "Term Loan" has the meaning specified in the recitals hereof.

                                       -8-
<PAGE>

            "Term Loan Commitment" means the obligation of Bank to make the Term
      Loan pursuant to Section 2.1 in an aggregate principal amount up to but
      not exceeding $32,244,099.00. [8], [9], [11]

            "Term Note" means the promissory note to be executed by Borrower and
      payable to the order of Bank, in substantially the form of Exhibit "A"
      hereto, and all extensions, renewals, and modifications thereof.

            "Tribunal" means any municipal, state, commonwealth, federal,
      foreign, territorial or other court, government body, subdivision, agent,
      department, commission, board or bureau or institution.

            "UCC" means the Uniform Commercial Code as in effect in the State of
      Texas.

            "Unencumbered Cash and Cash Equivalents" means with respect to any
      Person, cash, certificates of deposit, U.S. treasury securities, U.S.
      governmental agency securities, municipal and corporate bonds rated A+ or
      better by Standard & Poors or equivalent rating by another recognized
      rating company, unrestricted common and preferred stock of a company which
      has a majority of its issued and outstanding shares publicly traded and
      which is listed on the New York Stock Exchange or American Stock Exchange
      or which are NASDAQ National Market Issues as listed in the Wall Street
      Journal, each share of which has a market value of $5.00 or more, and
      mutual funds and/or unit investment trusts that invest solely in any of
      the forgoing, all of which are free of any Liens, security interests and
      other encumbrances.

            "Worldwide" means Penson Financial Services Limited, formerly known
      as Penson Worldwide Settlements, Ltd. [9]

      Section 1.2. Other Definitional Provisions. All definitions contained in
this Agreement are equally applicable to the singular and plural forms of the
terms defined. The words "hereof", "herein", and "hereunder" and words of
similar import referring to this Agreement refer to this Agreement as a whole
and not to any particular provision of this Agreement. Unless otherwise
specified, all Article and Section references pertain to this Agreement. All
accounting terms not specifically defined herein shall be construed in
accordance with GAAP. Terms used herein that are defined in the UCC, unless
otherwise defined herein, shall have the meanings specified in the UCC.

                                   ARTICLE II

                                    Term Loan

      Section 2.1. Term Loan. Subject to the terms and conditions of this
Agreement, Bank agrees to make a term loan to Borrower in the principal amount
up to but not exceeding the amount of the Term Loan Commitment in a single
advance on or about the date hereof.

      Section 2.2. Term Note. The obligation of Borrower to repay the Term Loan
shall be evidenced by the Term Note executed by Borrower, payable to the order
of Bank, in the principal amount of the Term Loan Commitment, and dated the date
hereof.

                                       -9-
<PAGE>

      Section 2.3. Repayment of Term Loan. Borrower shall repay the unpaid
principal amount of the Term Loan in monthly installments of $537,400.15,
commencing on April 1, 2005 and continuing on each Monthly Payment Date, with a
final installment in the amount of all outstanding principal of the Term Loan
payable on the Maturity Date. [8], [9], [11]

      Section 2.4. Interest. The unpaid principal amount of the Term Loan shall
bear interest at the rates, and be payable on the Monthly Payment Date, as
provided in the Term Note.

      Section 2.5. Use of Proceeds. The proceeds of the Term Loan shall be used
to refinance existing Debt owed to Bank and to provide equity capital to its
direct and indirect Subsidiaries.

      Section 2.6. Amendment Fee. An Amendment Fee in the amount of $25,000
shall be due and payable on January 1, 2004. [8]

      Section 2.7. Commitment Fee. A Commitment Fee in the amount of $50,000.00
shall be due and payable on October 5, 2004. [9]

      Section 2.8. Commitment Fee. A Commitment Fee in the amount of $50,000.00
shall be due and payable on March 24, 2005. [11]

                                   ARTICLE III

                             [INTENTIONALLY OMITTED]

                                   ARTICLE IV

                                    Payments

      Section 4.1. Method of Payment. All payments of principal, interest, and
other amounts to be made by Borrower under this Agreement, the Notes and the
other Loan Documents shall be made to Bank at the Principal Office in Dollars in
lawful money of the United States, without setoff, deduction, or counterclaim,
not later than 12:00 noon, Dallas, Texas time on the date on which such payment
shall become due (each such payment made after such time on such due date to be
deemed to have been made on the next succeeding Business Day). Borrower shall,
at the time of making each such payment, specify to Bank the sums payable by
Borrower under this Agreement, the Notes, and the other Loan Documents to which
such payment is to be applied (and in the event Borrower fails to so specify, or
if an Event of Default has occurred and is continuing, Bank may apply such
payment to the Obligations in such order and manner as it may elect in its sole
discretion). Whenever any payment under this Agreement, the Notes or any other
Loan Document shall be stated to be due on a day that is not a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of the
payment of interest and commitment fee, as the case may be.

      Section 4.2. Taxes.

            (a) Any and all payments by Borrower hereunder or under the Notes
      shall be made, in accordance with Section 4.1, free and clear of and
      without deduction for any and all present or future Taxes, excluding, in
      the case of Bank, taxes imposed on its income,

                                      -10-
<PAGE>

      and franchise taxes imposed on Bank, by the jurisdiction under the laws of
      which Bank is organized or is or should be qualified to do business or any
      political subdivision thereof and Taxes imposed on its income by the
      jurisdiction of Bank's lending office or any political subdivision
      thereof. If Borrower shall be required by law to deduct any Taxes (i.e.,
      Taxes for which Borrower is responsible under the preceding sentence) from
      or in respect of any sum payable hereunder or under the Notes to Bank, (i)
      the sum payable shall be increased as may be necessary so that after
      making all required deductions (including deductions applicable to
      additional sums payable under this Section 4.2) Bank receives an amount
      equal to the sum it would have received had no such deductions been made,
      (ii) Borrower shall make such deductions and (iii) Borrower shall pay the
      full amount deducted to the relevant taxation authority or other authority
      in accordance with applicable law.

            (b) In addition, Borrower agrees to pay any present or future stamp
      or documentary taxes or any other excise or property taxes, charges or
      similar levies which arise from any payment made hereunder or under the
      Loan Documents from the execution, delivery, or registration of, or
      otherwise with respect to, this Agreement or the other Loan Documents
      (hereinafter referred to as "Other Taxes").

            (c) Borrower will indemnify Bank for the full amount of Taxes or
      Other Taxes (including, without limitation, any Taxes or Other Taxes
      imposed by any jurisdiction on amounts payable under this Section 4.2) for
      which Borrower is liable pursuant to this Section 4.2 paid by Bank (as the
      case may be) or any liability (including penalties and interest) arising
      therefrom or with respect thereto. Upon written notice from Bank of a
      statement setting forth the amounts to be owed hereunder, this
      indemnification shall be made 30 days from the date Bank makes written
      demand therefor. This indemnity shall survive the termination of this
      Agreement.

            (d) Within 30 days after the date of any payment of Taxes, Borrower
      will furnish to Bank, the original or a certified copy of a receipt
      evidencing payment thereof.

            (e) Without prejudice to the survival of any other agreement of
      Borrower hereunder, the agreements and obligations of Borrower contained
      in this Section 4.2 shall survive the payment in full of the Obligations.

            (f) Bank agrees to use good faith efforts to carry out its
      obligations under this Agreement in such a way as to reduce the amount of
      Taxes attributable to the Term Loans, including the use of a different
      lending office, as long as in the good faith opinion of Bank such actions
      would not have a material adverse effect upon it.

      Section 4.3. Intentionally Omitted. [9]

                                    ARTICLE V

                             [INTENTIONALLY OMITTED]

                                   ARTICLE VI

                                    Security

                                      -11-
<PAGE>

      Section 6.1. Collateral. To secure full and complete payment and
performance of the Obligations, Borrower shall execute and deliver or cause to
be executed and delivered the documents described below covering the property
and collateral described in this Section 6.1 (which, together with any other
property and collateral which may now or hereafter secure the Obligations or any
part thereof, is sometimes herein called the "Collateral"):

            (a) Borrower shall grant to Bank a first priority security interest
      in the Pledged Stock pursuant to the Pledge Agreement and shall deliver
      the original stock certificates representing the Pledged Stock and stock
      transfer powers duly executed in blank.

            (b) Borrower shall execute and cause to be executed such further
      documents and instruments, including without limitation, Uniform
      Commercial Code financing statements, as Bank, in its sole discretion,
      deems necessary or desirable to create, preserve, evidence, and perfect
      its liens and security interests in the Collateral.

            (c) Penson shall grant to Bank a first priority security interest in
      the Penson Pledged Stock pursuant to the Penson Pledge Agreement and shall
      deliver the original stock certificates representing the Penson Pledged
      Stock and stock transfer powers duly executed in blank.

            (d) Penson Worldwide shall grant to Bank a first priority security
      interest in the Penson Worldwide Pledged Stock pursuant to the Penson
      Worldwide Pledge Agreement and shall deliver the original stock
      certificates representing the Penson Worldwide Pledged Stock and stock
      transfer powers duly executed in blank. [1], [9]

      Section 6.2. Setoff. If an Event of Default shall have occurred and be
continuing, Bank shall have the right to set off and apply against the
Obligations in such manner as Bank may determine, at any time and without notice
to Borrower, any and all deposits (general or special, time or demand,
provisional or final) or other sums at any time credited by or owing from Bank
to Borrower whether or not the Obligations are then due. As further security for
the Obligations, Borrower hereby grants to Bank a security interest in all
money, instruments, and other property of Borrower now or hereafter held by
Bank, including, without limitation, property held in safekeeping. In addition
to Bank's right of setoff and as further security for the Obligations, Borrower
hereby grants to Bank a security interest in all deposits (general or special,
time or demand, provisional or final) and other accounts of Borrower now or
hereafter on deposit with or held by Bank and all other sums at any time
credited by or owing from Bank to Borrower. The rights and remedies of Bank
hereunder are in addition to other rights and remedies (including, without
limitation, other rights of setoff) which Bank may have.

                                   ARTICLE VII

                              Conditions Precedent

      Section 7.1. Term Loan. The obligation of Bank to make the Term Loan is
subject to the condition precedent that Bank shall have received on or before
the date of making any advances hereunder all of the following, each dated
(unless otherwise indicated) the date hereof, in form and substance satisfactory
to Bank:

                                      -12-
<PAGE>
            (a) Resolutions. Resolutions of the Board of Directors of Borrower,
      certified by the Secretary or an Assistant Secretary of Borrower which
      authorize the execution, delivery, and performance by Borrower of this
      Agreement and the other Loan Documents to which Borrower is or is to be a
      party;

            (b) Incumbency Certificate. Certificates of incumbency certified by
      the Secretary or an Assistant Secretary of Borrower certifying the names
      of the officers of Borrower authorized to sign this Agreement, the Notes
      and each of the other Loan Documents to which Borrower is or is to be a
      party (including the certificates contemplated herein) together with
      specimen signatures of such officers;

            (c) Articles of Incorporation. The articles or certificate of
      incorporation of Borrower and each Subsidiary of Borrower certified by the
      Secretary of State of the state of incorporation of such entity and dated
      within 20 days prior to the date hereof;

            (d) Bylaws. The bylaws of Borrower and each Subsidiary of Borrower
      certified by its President, Secretary or an Assistant Secretary;

            (e) Governmental Certificates. Certificates of the appropriate
      government officials of the state of incorporation of Borrower and each
      Subsidiary of Borrower as to the existence and good standing of each such
      entity and certificates of the appropriate governmental officials of each
      state where each such entity owns properties, conducts business or employs
      any Persons as to the qualification and good standing of such entity in
      such jurisdictions, each dated within 20 days prior to the date hereof;

            (f) Term Note. The Term Note executed by Borrower;

            (g) Penson Pledge Agreement. The Penson Pledge Agreement executed by
      Penson;

            (h) Pledge Agreement. The Pledge Agreement executed by Borrower;

            (i) Stock Certificates and Stock Powers. Stock certificates
      evidencing all of the Pledged Stock and the Penson Pledged Stock, together
      with stock powers relating thereto duly endorsed in blank;

            (j) Opinion of Counsel. Favorable opinions of legal counsel to
      Borrower acceptable to Bank, as to such matters as Bank may reasonably
      request;

            (k) No Default. No Default shall have occurred and be continuing, or
      would result from the Term Loan.

            (l) Representations and Warranties. All of the representations and
      warranties contained in Article VIII and in the other Loan Documents shall
      be true and correct in all material respects on and as of the date of the
      Term Loan with the same force and effect as if such representations and
      warranties had been made on and as of such date;

            (m) Fees and Expenses. Evidence that the costs and expenses
      (including attorneys' fees) referred to in Section 13.1, to the extent
      incurred, shall have been paid in full by Borrower;

                                      -13-
<PAGE>

            (n) No Material Adverse Effect. No Material Adverse Effect shall
      have occurred or be continuing prior to the date hereof;

            (o) UCC Search. The results of a Uniform Commercial Code search
      showing all financing statements and other documents or instruments on
      file against Borrower and its Subsidiaries in the office of the Secretary
      of State of Texas, such search to be as of a date no more than twenty (20)
      days prior to the date of the Effective Date;

            (p) UCC Financing Statements. UCC-1 or UCC-3 Financing Statements
      executed by Borrower in form and substance acceptable to Bank; and

            (q) Additional Documentation. Such additional approvals, opinions,
      or documents as Bank or its legal counsel, Winstead Sechrest & Minick
      P.C., may reasonably request.

                                  ARTICLE VIII

                         Representations and Warranties

      To induce Bank to enter into this Agreement, Borrower represents and
warrants to Bank that:

      Section 8.1. Corporate Existence. Each of Borrower and its Subsidiaries
(a) is a corporation duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation, (b) has all requisite
power and authority to own its assets and carry on its business as now being or
as proposed to be conducted; and (c) is qualified to do business in all
jurisdictions in which the nature of its business makes such qualification
necessary and where failure to so qualify would have a Material Adverse Effect.
Borrower has the corporate power and authority to execute, deliver, and perform
its obligations under this Agreement, the Notes, the Pledge Agreement and the
other Loan Documents to which Borrower is a party.

      Section 8.2. Financial Statements. Borrower has delivered to Bank
unaudited financial statements as at and for the fiscal year ended December 31,
2000, and internally prepared financial statements for the month ending February
28, 2001. PFS has delivered to Bank audited financial statements as at and for
the fiscal year ended December 31, 2000, and internally prepared financial
statements for the month ending February 28, 2001. Such financial statements
have been prepared in accordance with GAAP, are true and correct in all material
respects, and fairly and accurately present the consolidated financial condition
of Borrower or PFS, as the case may be, as of the respective dates indicated
therein and the results of operations for the respective periods indicated
therein. Neither Borrower nor PFS has any material contingent liabilities,
liabilities for taxes, unusual forward or long-term commitments, or unrealized
or anticipated losses from any unfavorable commitments except as referred to or
reflected in such financial statements or as set forth in other financial
statements delivered to the Bank on or prior to September 30, 2004. There has
been no material adverse change in the business, condition (financial or
otherwise), operations, prospects, or properties of Borrower or any of its
Subsidiaries since the effective date of the most recent financial statements
referred to in this Section or as set forth in other financial statements
delivered to the Bank on or prior to September 30, 2004. [9]

                                      -14-
<PAGE>

      Section 8.3. Corporate Action; No Breach. The execution, delivery, and
performance by Borrower of this Agreement and the other Loan Documents to which
Borrower is or may become a party, and compliance with the terms and provisions
hereof and thereof, have been duly authorized by all requisite corporate action
on the part of Borrower and do not and will not (a) violate or conflict with, or
result in a breach of, or require any consent under (i) the articles of
incorporation or bylaws of Borrower or any of Subsidiaries, (ii) any applicable
law, rule, or regulation or any order, writ, injunction, or decree of any
Tribunal or arbitrator, or (iii) any material agreement or instrument to which
Borrower or any of Subsidiaries is a party or by which any of them or any of
their property is bound or subject, or (b) constitute a material default under
any such agreement or instrument, or result in the creation or imposition of any
Lien (except for Liens as provided in Article VI) upon any of the revenues or
assets of Borrower or any Subsidiary.

      Section 8.4. Operation of Business. Borrower and each of its Subsidiaries
possess all licenses, permits, franchises, patents, copyrights, trademarks, and
tradenames, or rights thereto, necessary to conduct their respective businesses
substantially as now conducted and as presently proposed to be conducted, and
Borrower and each of its Subsidiaries are not in material violation of any valid
rights of others with respect to any of the foregoing.

      Section 8.5. Litigation and Judgments. Except as disclosed on Schedule 8.5
hereto, there is no action, suit, investigation, or proceeding before or by any
Tribunal or arbitrator pending, or to the knowledge of Borrower, threatened
against or affecting Borrower or any Subsidiary, that would, if adversely
determined, have a Material Adverse Effect. There are no outstanding judgments
against Borrower or any of its Subsidiaries.

      Section 8.6. Rights in Properties; Liens. Borrower and each of its
Subsidiaries have good and indefeasible title to or valid leasehold interests in
their respective properties and assets, real and personal, including the
properties, assets, and leasehold interests reflected in the financial
statements described in Section 8.2, and none of the properties, assets, or
leasehold interests of Borrower or any Subsidiary is subject to any Lien.

      Section 8.7. Enforceability. This Agreement constitutes, and the other
Loan Documents to which Borrower is a party, when delivered, shall constitute
legal, valid, and binding obligations of Borrower, enforceable against Borrower
in accordance with their respective terms, except as limited by general
principles of equity and bankruptcy, insolvency, or other laws of general
application relating to the enforcement of creditors' rights.

      Section 8.8. Approvals. No authorization, approval, or consent of, and no
filing or registration with, any Tribunal or other Person is or will be
necessary for the execution, delivery, or performance by Borrower of this
Agreement and the other Loan Documents to which Borrower is a party or the
validity or enforceability thereof.

      Section 8.9. Debt. Penson Worldwide and its Subsidiaries have no Debt,
except the Service Lloyd's Debt, Debt disclosed on Schedule 8.9 hereto or Debt
permitted by Section 10.1, Section 10.18 or Section 10.19 hereof. [9]

      Section 8.10. Taxes. Borrower and each Subsidiary have filed all tax
returns (federal, state, and local) required to be filed, including all income,
franchise, employment, property, and sales tax returns, and have paid all of
their respective liabilities for taxes, assessments,

                                      -15-
<PAGE>

governmental charges, and other levies that are due and payable except for any
such liabilities which are being contested in good faith and for which adequate
reserves have been established in accordance with GAAP. As of the date hereof,
Borrower has no knowledge of any pending investigation of Borrower or any
Subsidiary except as disclosed on Schedule 8.10 attached herein by any taxing
authority or of any pending but unassessed tax liability of Borrower or any
Subsidiary.

      Section 8.11. Margin Stock. The Term Loan is not secured, and will not be,
directly or indirectly, by margin stock (within the meaning of Regulation U of
the Board of Governors of the Federal Reserve System).

      Section 8.12. ERISA. Borrower and each of its Subsidiaries are in
compliance in all material respects with all applicable provisions of ERISA.
Neither a Reportable Event nor a Prohibited Transaction has occurred and is
continuing with respect to any Plan. No notice of intent to terminate a Plan has
been filed, nor has any Plan been terminated. No circumstances exist which
constitute grounds entitling the PBGC to institute proceedings to terminate, or
appoint a trustee to administer, a Plan, nor has the PBGC instituted any such
proceedings. Neither Borrower nor any ERISA Affiliate has completely or
partially withdrawn from a Multiemployer Plan. Borrower and each ERISA Affiliate
have met their minimum funding requirements under ERISA with respect to all of
their Plans, and the present value of all vested benefits under each Plan do not
exceed the fair market value of all Plan assets allocable to such benefits, as
determined on the most recent valuation date of the Plan and in accordance with
ERISA. Neither Borrower nor any ERISA Affiliate has incurred any liability to
the PBGC under ERISA.

      Section 8.13. Disclosure. No statement, information, report,
representation, or warranty made by Borrower in this Agreement, or in any other
Loan Document or furnished to Bank in connection with this Agreement or any of
the transactions contemplated hereby contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements herein
or therein not misleading. As of the date hereof, there is no fact known to
Borrower which has a material adverse effect, or which would reasonably be
expected to in the future have a Material Adverse Effect that has not been
disclosed in writing to Bank. [9]

      Section 8.14. Subsidiaries. Borrower has no Subsidiaries other than those
listed on Schedule 8.14 hereto. All of the outstanding capital stock of each
Subsidiary has been validly issued, is fully paid, and is nonassessable.
Borrower shall, from time to time as necessary, deliver to Bank an updated
Schedule 8.14 to this Agreement, together with a certificate of an authorized
officer of Borrower certifying that the information set forth in such schedule
is true, correct, and complete as of such date.

      Section 8.15. Agreements. Neither Borrower nor any Subsidiary is a party
to any indenture, loan, or credit agreement or to any lease or other agreement
or instrument, or subject to any charter or corporate restriction which could
reasonably be expected to have a Material Adverse Effect. Neither Borrower nor
any Subsidiary is in default in any material respect in the performance,
observance, or fulfillment of any of the obligations, covenants or conditions
contained in any agreement or instrument material to its business to which it is
a party.

      Section 8.16. Compliance With Laws. Neither Borrower nor any Subsidiary is
in violation in any material respect of any law, rule, regulation, order, or
decree of any Tribunal or

                                      -16-
<PAGE>

arbitrator, except to the extent that the failure to comply therewith will not
have a Material Adverse Effect.

      Section 8.17. Investment Company Act. Neither Borrower nor any Subsidiary
is an "investment company" within the meaning of the Investment Company Act of
1940, as amended.

      Section 8.18. Public Utility Holding Company Act. Neither Borrower nor any
Subsidiary is a "holding company" or a "subsidiary company" of a "holding
company" or an "affiliate" of a "holding company" or a "public utility" within
the meaning of the Public Utility Holding Company Act of 1935, as amended.

      Section 8.19. Environmental Matters. Except as disclosed on Schedule 8.19
hereto:

            (a) Borrower, each Subsidiary, and all of their respective
      properties, assets, and operations are in full compliance with all
      Environmental Laws. Borrower is not aware of, nor has Borrower received
      notice of, any past, present, or future conditions, events, activities,
      practices, or incidents which may interfere with or prevent the compliance
      or continued compliance of Borrower and Subsidiaries with all
      Environmental Laws;

            (b) Borrower and each Subsidiary have obtained all permits,
      licenses, and authorizations that are required under applicable
      Environmental Laws, and all such permits are in good standing and Borrower
      and Subsidiaries are in compliance with all of the terms and conditions of
      such permits;

            (c) No Hazardous Materials exist on, about, or within or have been
      used, generated, stored, transported, disposed of on, or Released from any
      of the properties or assets of either Borrower or any Subsidiary in
      violation of any Environmental Laws in effect on the date hereof. The use
      which Borrower and Subsidiaries make and intend to make of their
      respective properties and assets will not result in the use, generation,
      storage, transportation, accumulation, disposal, or Release of any
      Hazardous Material on, in, or from any of their properties or assets in
      violation of any Environmental Laws in effect on the date hereof;

            (d) Neither Borrower nor any of its Subsidiaries nor any of their
      respective currently or previously owned or leased properties or
      operations is subject to any outstanding or threatened order from or
      agreement with any Tribunal or subject to any judicial or docketed
      administrative proceeding with respect to (i) failure to comply with
      Environmental Laws, (ii) Remedial Action, or (iii) any Environmental
      Liabilities arising from a Release or threatened Release;

            (e) There are no conditions or circumstances associated with the
      currently or previously owned or leased properties or operations of
      Borrower or any Subsidiaries that could reasonably be expected to give
      rise to any Environmental Liabilities;

            (f) Neither Borrower nor any of its Subsidiaries is a treatment,
      storage, or disposal facility requiring a permit under the Resource
      Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. regulations
      thereunder or any comparable provision of state

                                      -17-
<PAGE>

      law. Borrower and its Subsidiaries are in compliance with all applicable
      financial responsibility requirements of all Environmental Laws;

            (g) Neither Borrower nor any of its Subsidiaries has filed or failed
      to file any notice required under applicable Environmental Law reporting a
      Release; and

            (h) No Lien arising under any Environmental Law has attached to any
      property or revenues of Borrower or any Subsidiaries.

                                   ARTICLE IX

                               Positive Covenants

      Borrower covenants and agrees that, as long as the Obligations or any part
thereof are outstanding or Bank has any Term Loan Commitment hereunder, Borrower
will perform and observe the following positive covenants, unless Bank shall
otherwise consent in writing:

      Section 9.1. Reporting Requirements. Borrower will furnish to Bank:

            (a) Annual Financial Statements. As soon as available, and in any
      event within 120 days after the end of each fiscal year of Penson
      Worldwide, beginning with the fiscal year ending December 31, 2001, a copy
      of the annual audited consolidating and consolidated financial report of
      Penson Worldwide, certified by the chief financial officer of Penson
      Worldwide, each for such fiscal year containing balance sheets and
      statements of income, stockholders' equity, and cash flows as of the end
      of such fiscal year and for the 12-month period then ended, in each case
      setting forth in comparative form the figures for the preceding fiscal
      year, all in reasonable detail and audited by independent certified public
      accountants of recognized standing reasonably acceptable to Bank; [1]

            (b) Quarterly Financial Statements. As soon as available, and in any
      event within 30 days after the end of each calendar quarter, a copy of an
      unaudited consolidating and consolidated financial report of Penson
      Worldwide as of the end of such quarter and for the portion of the fiscal
      year then ended, containing balance sheets and statements of income,
      retained earnings and cash flow, all in reasonable detail certified by the
      chief financial officer of Penson Worldwide, to have been prepared in
      accordance with GAAP and to fairly and accurately present the financial
      condition and results of operations of Penson Worldwide at the date and
      for the periods indicated therein; [1]

            (c) Compliance Certificate. Within 30 days after the end of each
      calendar month, a certificate of the chief financial officer of Borrower,
      in the form of Exhibit "C" hereto (i) stating that no Default has occurred
      and is continuing, or if a Default has occurred and is continuing, a
      statement as to the nature thereof and the action which is proposed to be
      taken with respect thereto, and (ii) showing in reasonable detail the
      calculations demonstrating compliance with Article XI; [1]

            (d) Notice of Litigation. Promptly after the commencement thereof,
      notice of all actions, suits, and proceedings before any Tribunal or
      arbitrator affecting Borrower or any Subsidiary which, if determined
      adversely to Borrower or such Subsidiary, could reasonably be expected to
      have a Material Adverse Effect;

                                      -18-
<PAGE>

            (e) Notice of Default. As soon as possible and in any event within
      five (5) Business Days after the occurrence of each Default, a written
      notice setting forth the details of such Default and the action that
      Borrower has taken and proposes to take with respect thereto;

            (f) ERISA Reports. As soon as possible and in any event within five
      (5) days after Borrower or any Subsidiary knows or has reason to know that
      any Reportable Event or Prohibited Transaction has occurred with respect
      to any Plan or that the PBGC or Borrower or any Subsidiary has instituted
      or will institute proceedings under Title IV of ERISA to terminate any
      Plan, a certificate of the chief financial officer of Borrower setting
      forth the details as to such Reportable Event or Prohibited Transaction or
      Plan termination and the action that Borrower proposes to take with
      respect thereto;

            (g) Notice of Material Adverse Change. As soon as possible and in
      any event within five (5) days after the occurrence thereof, written
      notice of any matter that could reasonably be expected to have a Material
      Adverse Effect;

            (h) Proxy Statements, Etc. As soon as available, one copy of each
      financial statement, report, notice or proxy statement sent by Borrower or
      any Subsidiary to its stockholders generally and one copy of each regular,
      periodic or special report, registration statement, or prospectus filed by
      Borrower or any Subsidiary with any securities exchange or the Securities
      and Exchange Commission or any successor agency; and

            (i) General Information. Promptly, such other information concerning
      Borrower or any Subsidiary as Bank may from time to time reasonably
      request.

      Section 9.2. Maintenance of Existence; Conduct of Business. Borrower will
preserve and maintain, and will cause each Subsidiary to preserve and maintain,
its corporate or partnership existence, as the case may be, and all of its
leases, privileges, licenses, permits, franchises, qualifications, and rights
that are necessary or desirable in the ordinary conduct of its business.
Borrower will conduct, and will cause each Subsidiary to conduct, its business
in an orderly and efficient manner in accordance with good business practices.

      Section 9.3. Maintenance of Properties. Borrower will maintain, keep, and
preserve, and cause each Subsidiary to maintain, keep, and preserve, all of its
properties (tangible and intangible) necessary or useful in the proper conduct
of its business in good working order and condition.

      Section 9.4. Taxes and Claims. Borrower will pay or discharge, and will
cause each Subsidiary to pay or discharge, at or before maturity or before
becoming delinquent (a) all taxes, levies, assessments, and governmental charges
imposed on it or its income or profits or any of its property, and (b) all
lawful claims for labor, material, and supplies, which, if unpaid, might become
a Lien upon any of its property; provided, however, that neither Borrower nor
any Subsidiary shall be required to pay or discharge any tax, levy, assessment,
or governmental charge which is being contested in good faith by appropriate
proceedings diligently pursued, and for which adequate reserves have been
established.

      Section 9.5. Insurance. Borrower will maintain, and will cause each of the
Subsidiaries to maintain, insurance with financially sound and reputable
insurance companies in

                                      -19-
<PAGE>

such amounts and covering such risks as is usually carried by corporations
engaged in similar businesses and owning similar properties in the same general
areas in which Borrower and the Subsidiaries operate. Without in any way
limiting the foregoing, Borrower will maintain and cause each Subsidiary to
maintain workers' compensation insurance (except as expressly provided in this
Section), property insurance, comprehensive general liability insurance, and
products liability insurance reasonably satisfactory to Bank.

      Section 9.6. Inspection Rights. With reasonable notification and from time
to time, Borrower will permit, and will cause each Subsidiary to permit,
representatives of Bank to examine, copy, and make extracts from its books and
records, to visit and inspect its properties, and to discuss its business,
operations, and financial condition with its officers, employees, and
independent certified public accountants.

      Section 9.7. Keeping Books and Records. Borrower will maintain, and will
cause each Subsidiary to maintain, proper books of record and account in which
full, true, and correct entries in conformity with GAAP shall be made of all
dealings and transactions in relation to its business and activities.

      Section 9.8. Compliance with Laws and Agreements. Borrower will comply,
and will cause each Subsidiary to comply, in all material respects with all
applicable laws, rules, regulations, orders, and decrees of any Tribunal or
arbitrator and all agreements, contracts, and instruments binding on it or
affecting its properties or business.

      Section 9.9. Further Assurances. Borrower will, and will cause each
Subsidiary to, execute and deliver such further agreements and instruments and
take such further action as may be requested by Bank to carry out the provisions
and purposes of this Agreement and the other Loan Documents and to create,
preserve, and perfect the Liens of Bank in the Collateral.

      Section 9.10. ERISA. Borrower will comply, and will cause each Subsidiary
to comply, with all minimum funding requirements, and all other material
requirements, of ERISA, if applicable, so as not to give rise to any liability
thereunder.

                                    ARTICLE X

                               Negative Covenants

      Borrower covenants and agrees that, as long as the Obligations or any part
thereof are outstanding or Bank has any Term Loan Commitment hereunder, Borrower
will perform and observe the following negative covenants, unless Bank shall
otherwise consent in writing:

      Section 10.1. Debt. Borrower will not incur, create, assume, or permit to
exist, and will not permit any Subsidiary to incur, create, assume, or permit to
exist, any Debt, except:

            (a) Debt to Bank;

            (b) Existing Debt described on Schedule 8.9 hereto; and

            (c) Debt incurred in the ordinary course of business with respect to
      purchasing or carrying securities, including any stock lending, stock
      borrowing, swap, derivative and other similar transactions in the ordinary
      course of business. [9]

                                      -20-
<PAGE>

      Section 10.2. Limitation on Liens. Borrower will not incur, create,
assume, or permit to exist, and will not permit any Subsidiary to incur, create,
assume, or permit to exist, any Lien upon any of its property, assets, or
revenues, whether now owned or hereafter acquired, except:

            (a) Liens disclosed on Schedule 10.2 hereto;

            (b) Liens in favor of Bank pursuant to the Loan Documents;

            (c) Liens consisting of easements, rights-of-way, zoning
      restrictions or other restrictions on the real property that do not
      (individually or in the aggregate) materially affect the value of assets
      encumbered thereby or materially impair the ability of Borrower or its
      Subsidiaries to use such property in their respective businesses and none
      of which is violated in any material respect by existing or proposed
      structures of land use;

            (d) Liens for taxes, assessments or other governmental charges that
      are not delinquent or which are being contested in good faith by
      appropriate proceedings, which proceedings have the effect of preventing
      the forfeiture or sale of the property subject to such Liens, and for
      which adequate reserves have been established;

            (e) Liens of mechanics, materialmen, warehousemen, carriers,
      landlords or other similar statutory Liens securing obligations that are
      not yet due and are incurred in the ordinary course of business or which
      are being contested in good faith by appropriate proceedings, which
      proceedings have the effect of preventing the forfeiture or sale of the
      property subject to such Liens, and for which adequate reserves have been
      established;

            (f) Liens resulting from good faith deposits to secure payment of
      workmen's compensation or other social security programs or to secure the
      performance or tenders, statutory obligations, surety and appeal bonds,
      bids, contracts (other than for payment of Debt) or leases, all in the
      ordinary course of business; and

            (g) Liens securing Debt permitted by Section 10.1(c) hereof.

      Section 10.3. Mergers, Etc. Borrower will not, and will not permit any
Subsidiary to, become a party to a merger or consolidation, or purchase or
otherwise acquire all or any part of the assets of any Person or any shares or
other evidence of beneficial ownership of any Person, or wind-up, dissolve or
liquidate provided, however, that certain transactions involving internal
reorganizations among the Borrower and/or its direct and indirect Subsidiaries
may be permitted, provided that 30 days advance notice thereof is provided to
the Bank and provided that the Borrower and/or any affected Subsidiary shall
execute such amendments to the Loan Documents or new Loan Documents as the Bank
may require in connection therewith. [9]

      Section 10.4. Loans and Investments. Borrower will not permit any of the
following:

            (a) Penson Worldwide's advance, loan, extension of credit or capital
      contribution to or investment (i) in Worldwide in excess of $10,000,000
      and (ii) in Worldwide and Canada in the aggregate in excess of $15,000,000
      (including clause (i) hereof); provided, however, that (x) no such
      advances to Canada may result from the proceeds of the Term Loan, (y) no
      more than $5,000,000 of any advances to Worldwide may result from the
      proceeds of the Capital Investment, and (z) no more than $4,000,000
      advanced to Worldwide may result from the proceeds of the Term Loan. [10],
      [11]

                                      -21-
<PAGE>

            (b) The Borrower or any Subsidiary's advance, loan, extension of
      credit, or capital contribution to or investment in Penson Worldwide,
      except as may be required for (a) making payments under the terms of the
      Debt permitted under Section 10.18 of this Agreement or (b) for the
      payment of expenses that arise in the ordinary course of business;
      provided, however, that no such contribution or investment in Penson
      Worldwide shall (x) cause a breach of Section XI of this Agreement or (y)
      shall be made if there is an Event of Default under Section XI of this
      Agreement.

            (c) Either Nexa or SAMCO BD LLC's advance, loan, extension of
      credit, or capital contribution to or investment in Penson Worldwide other
      than in the ordinary course of business to support and facilitate
      technology infrastructure and sales.

            (d) Penson Worldwide's advance, loan, extension of credit or capital
      contribution to or investment (i) in Worldwide in excess of $5,000,000 and
      (ii) in Worldwide and Canada in the aggregate in excess of $15,000,000
      (including clause (i) hereof); provided, however, that (x) no such
      advances to either Worldwide or Canada may result from the proceeds of the
      Term Loan and (y) no more than $5,000,000 of any advances to Worldwide may
      result from the proceeds of the Capital Investment.

      Notwithstanding anything to the contrary contained in this Section 10.4,
      the Borrower shall be permitted to repurchase stock in the Borrower from
      any employee of the Borrower upon such employee's termination of
      employment; provided that such stock repurchases shall be (i) in a maximum
      aggregate amount of $1,000,000 and (ii) at a price per share not in excess
      of such price that the Borrower would offer to purchasers of stock of the
      Borrower at the time of the repurchase. In addition, nothing contained in
      this Agreement shall prohibit the Nexa Investment or the Keefe Investment.
      [9]

      Section 10.5. Transactions With Affiliates. Borrower will not enter into,
and will not permit any Subsidiary to enter into, any transaction, including,
without limitation, the purchase, sale, or exchange of property or the rendering
of any service, with any Affiliate of Borrower, except in the ordinary course of
and pursuant to the reasonable requirements of Borrower's or such Subsidiary's
business and upon fair and reasonable terms no less favorable to Borrower or
such Subsidiary than is customary in the business in which Borrower is engaged.

      Section 10.6. Disposition of Assets. Borrower will not sell, lease,
assign, transfer, or otherwise dispose of any of its assets, or permit any
Subsidiary to do so with any of its assets, except dispositions of assets in the
ordinary course of business.

      Section 10.7. Sale and Leaseback. Borrower will not enter into, and will
not permit any Subsidiary to enter into, any arrangement with any Person
pursuant to which it leases from such Person real or personal property that has
been or is to be sold or transferred, directly or indirectly, by it to such
Person and as permitted by Section 10.1. [9]

      Section 10.8. Prepayment of Debt. Borrower will not prepay, and will not
permit any Subsidiary to prepay, any Debt, except the Obligations. Borrower will
not permit Penson Worldwide, Nexa or SAMCO BD LLC to prepay any Debt, except (a)
the Obligations, (b) the Service Lloyd's Debt in amounts consistent with the
repayment schedule existing as of the Effective Date as set forth on Schedule
10.8 hereto or (c) as permitted by Section 10.18. [9]

                                      -22-
<PAGE>

      Section 10.9. Nature of Business. Borrower will not, and will not permit
any Subsidiary to, engage in any business other than the businesses in which
they are engaged as of the date hereof.

      Section 10.10. Environmental Protection. Except as shall be in compliance
with Environmental Laws, Borrower will not, and will not permit any Subsidiaries
to, (a) use (or permit any tenant to use) any of their respective properties or
assets for the handling, processing, storage, transportation, or disposal of any
Hazardous Material, (b) generate any Hazardous Material, or (c) conduct any
activity that is likely to cause a Release or threatened Release of any
Hazardous Material, in each case where the same could reasonably be expected to
cause a Material Adverse Effect. Borrower will not, and will not permit any
Subsidiaries to, conduct any activity or use any of their respective properties
or assets in any manner in violation of any Environmental Law or so as to create
any Environmental Liabilities for which Borrower or any Subsidiaries would be
responsible.

      Section 10.11. Limitation on New Subsidiaries. Borrower shall not form,
and shall not permit Penson Worldwide, Nexa or SAMCO BD LLC to form, any new
Subsidiary without prior written notice to Bank. [9]

      Section 10.12. Accounting. Borrower will not, and will not permit any
Subsidiary to, (a) change its fiscal year, unless Borrower shall have given Bank
prior notice of such change, or (b)make any material change (i)in accounting
treatment or reporting practices, except as required by GAAP and disclosed to
Bank, or (ii) in tax reporting treatment, except as required by law and
disclosed to Bank.

      Section 10.13. Limitation on Issuance of Capital Stock. Borrower will not,
and will not permit any Subsidiaries to, at any time issue, sell, assign, or
otherwise dispose of (a) any of its capital stock, (b) any securities
exchangeable for or convertible into or carrying any rights to acquire any of
its capital stock, or (c) any option, warrant, or other right to acquire any of
its capital stock.

      Section 10.14. Restricted Payments. If any Default exists and is
continuing, Borrower will not declare or pay any dividends or make any other
payment or distribution (in cash, property, or obligations) on account of its
capital stock, redeem, purchase, retire, or otherwise acquire any of its capital
stock, or permit any of its Subsidiaries to purchase or otherwise acquire any
capital stock of Borrower or another Subsidiary, or set apart any money for a
sinking or other analogous fund for any dividend or other distribution on its
capital stock or for any redemption, purchase, retirement, or other acquisition
of any of its capital stock, or grant or issue any capital stock or any warrant,
right, or option pertaining to its capital stock, or issue any security
convertible into capital stock.

      Section 10.15. Change in Management. Borrower will not make, and will not
permit any Subsidiary to make, changes to the executive management of Borrower
or the Subsidiaries involving William D. Gross, Daniel P. Son, Philip A.
Pendergraft or Roger J. Engemoen, Jr.; provided, however, that in the event of
the death of one of the referenced individuals, the Borrower shall be entitled
to a 30 day period following such event to notify the Bank thereof and to
provide additional support to the loans to the Bank's satisfaction in its sole
discretion. [9]

                                      -23-
<PAGE>

      Section 10.16. No Negative Pledges. Borrower shall not, and shall not
permit any of its Subsidiaries to enter into or permit to exist any arrangement
or agreement, other than pursuant to this Agreement or any Loan Document, which
directly or indirectly prohibits the Borrower or any of its Subsidiaries from
creating or incurring a Lien on any of its assets.

      Section 10.17. No Restrictive Agreements. Borrower will not permit any of
its Subsidiaries to enter into any indenture, agreement, instrument or other
arrangement which, directly or indirectly, prohibits or restrains, or has the
effect of prohibiting or restraining, or imposes materially adverse conditions
upon, the declaration or payment of dividends, the making of loans, advances or
investments or the sale, assignment, transfer or other disposition of property,
except as set forth in the documents relating to the Capital Investment. [9]

      Section 10.18. Penson Worldwide Debt. Borrower shall not permit Penson
Worldwide to incur any Debt other than the Convertible Note, Other Convertible
Debt, the Short Term Debt, the SunGard Debt, the Nexa Debt and the Service
Lloyd's Debt; provided, however, the maximum amount of Debt that Penson
Worldwide shall be permitted to incur (in addition to the SunGard Debt, the Nexa
Debt and the Short Term Debt) shall not exceed $15,000,000. Furthermore,
Borrower shall not permit Penson Worldwide to make any prepayments under the
SunGard Debt, the Service Lloyd's Debt, the Nexa Debt, the Convertible Note or
Other Convertible Debt at any time before this Agreement is terminated and all
amounts due hereunder have been paid in full. In addition, Borrower shall not
permit Penson Worldwide to make any payments under the Service Lloyd's Debt, the
Convertible Note, the Short Term Debt, the Sungard Debt, the Nexa Debt or Other
Convertible Debt upon the occurrence of a Default or Event of Default under this
Agreement, or a "default" under the Service Lloyd's Debt, the Convertible Note,
the Short Term Debt, the SunGard Debt, the Nexa Debt or Other Convertible Debt.
[9]

      Section 10.19. Short Term Debt. Following the repayment of Short Term Debt
permitted under this Agreement, no additional Short Term Debt may be borrowed
until there has been no outstanding Short Term Debt for a period of at least 30
consecutive days. [8]

                                   ARTICLE XI

                               Financial Covenants

      Borrower covenants and agrees that, as long as the Obligations or any part
thereof are outstanding, Borrower will observe and perform or cause PFS to
observe and perform, as the case may be, the following financial covenants,
unless Bank shall otherwise consent in writing:

      Section 11.1. Monthly Liquidity Maintenance. Borrower shall cause its
Subsidiaries to maintain Unencumbered Cash and Cash Equivalents having an
aggregate market value of not less than $12,000,000 as of the end of each fiscal
month.

      Section 11.2. Intentionally Omitted. [1], [3]

      Section 11.3. PFS Minimum EBITDA Requirement. Borrower shall cause PFS to
generate EBITDA of at least (a) $4,500,000 for each fiscal quarter until the
fiscal quarter ending March 31, 2005 and (b) $5,000,000 for each fiscal quarter
thereafter. [4], [9]

                                      -24-
<PAGE>

      Section 11.4. Monthly Minimum Capital Requirements. Borrower shall cause
PFS to maintain as of the end of each fiscal month Regulatory Capital which
exceeds the sum of (a) 5% of the Debit Balances, plus (b) the Additional Amount.
For purposes of this Section 11.4, "Additional Amount" shall mean $8,000,000.
[8], [9]

      Section 11.5. Penson Worldwide Quarterly Minimum Tangible Net Worth.
Borrower shall cause Penson Worldwide to maintain, on a consolidated basis, as
of the end of each fiscal quarter, Tangible Net Worth in an amount not less than
the sum of (a) $50,000,000 plus (b) 75% of the combined consolidated cumulative
positive net income of Penson Worldwide for each fiscal quarter ending on or
after September 30, 2004. [4], [5], [9]

      Section 11.6. Minimum Debt Service Coverage Requirement. Borrower shall
cause Penson Worldwide to maintain, on a consolidated basis with its
Subsidiaries, as of the end of each fiscal quarter, tested quarterly for the
twelve-month period then ending, a Debt Service Coverage Ratio of at least a
ratio of 1.25 to 1.00. [9]

      Section 11.7. Penson Worldwide EBITDA. Borrower shall not permit Penson
Worldwide to permit more than 25% of its EBITDA to be based upon income of any
direct or indirect foreign Subsidiaries. [1]

      Section 11.8. Intentionally Omitted. [9]

      Section 11.9. Intentionally Omitted. [9]

                                   ARTICLE XII

                                     Default

      Section 12.1. Events of Default. Each of the following shall be deemed an
"Event of Default":

            (a) Borrower shall fail to pay when due the Obligations or any part
      thereof and such failure shall continue unremedied for three Business
      Days.

            (b) Any representation or warranty made or deemed made by Borrower
      or any Obligated Party (or any of their respective officers) in any Loan
      Document or in any certificate, report, notice, or financial statement
      furnished at any time in connection with this Agreement shall be false,
      misleading, or erroneous in any material respect when made or deemed to
      have been made.

            (c) Borrower, PFS or any Obligated Party shall fail to perform,
      observe, or comply with any covenant, agreement, or term contained in
      Article IX of this Agreement and such failure shall continue unremedied
      for 20 days after Borrower receives notice of such failure or obtains
      knowledge thereof.

            (d) Borrower, PFS or any Obligated Party shall fail to perform,
      observe, or comply with any covenant, agreement, or term contained in this
      Agreement or any other Loan Document (except those described in (a) or (c)
      of this Section 12.1).

                                      -25-
<PAGE>

            (e) Borrower, any Subsidiary, or any Obligated Party shall commence
      a voluntary proceeding seeking liquidation, reorganization, or other
      relief with respect to itself or its debts under any bankruptcy,
      insolvency, or other similar law now or hereafter in effect or seeking the
      appointment of a trustee, receiver, liquidator, custodian, or other
      similar official of it or a substantial part of its property or shall
      consent to any such relief or to the appointment of or taking possession
      by any such official in an involuntary case or other proceeding commenced
      against it or shall make a general assignment for the benefit of creditors
      or shall generally fail to pay its debts as they become due or shall take
      any corporate action to authorize any of the foregoing.

            (f) An involuntary proceeding shall be commenced against Borrower,
      any Subsidiary, or any Obligated Party seeking liquidation,
      reorganization, or other relief with respect to it or its debts under any
      bankruptcy, insolvency, or other similar law now or hereafter in effect or
      seeking the appointment of a trustee, receiver, liquidator, custodian, or
      other similar official for it or a substantial part of its property, and
      such involuntary proceeding shall remain undismissed and unstayed for a
      period of thirty (30) days.

            (g) Any attachment or sequestration, or any similar proceeding or
      proceedings to seize or impose a Lien upon any assets or properties of
      Borrower, any Subsidiary, or any Obligated Party involving an aggregate
      amount in excess of $100,000 shall have been commenced against any assets
      or properties of Borrower, any Subsidiary, or any Obligated Party and
      shall not have been discharged within a period of thirty (30) days after
      the commencement thereof.

            (h) A final judgment or judgments for the payment of money in excess
      of $100,000 in the aggregate shall be rendered by a court or courts
      against Borrower, any Subsidiary, or any Obligated Party and the same
      shall not be discharged (or provision shall not be made for such
      discharge) or bonded, or a stay of execution thereof shall not be
      procured, within thirty (30) days from the date of entry thereof and
      Borrower, the relevant Subsidiary, or the relevant Obligated Party shall
      not, within said period of thirty (30) days, or such longer period during
      which execution of the same shall have been stayed, appeal therefrom and
      cause the execution thereof to be stayed during such appeal.

            (i) Borrower, any Subsidiary, or any Obligated Party shall fail to
      pay when due any principal of or interest on any Debt (other than the
      Obligations), or the maturity of any such Debt shall have been
      accelerated, or any such Debt shall have been required to be prepaid prior
      to the stated maturity thereof, or any event shall have occurred (and
      shall not be waived or otherwise cured) that permits (or, with the giving
      of notice or lapse of time or both, would permit) any holder or holders of
      such Debt or any Person acting on behalf of such holder or holders to
      accelerate the maturity thereof or require any such prepayment, including,
      without limitation, a default under the Service Lloyd's Debt.

            (j) This Agreement or any other Loan Document shall cease to be in
      full force and effect or shall be declared null and void or the validity
      or enforceability thereof shall be contested or challenged by Borrower,
      any Subsidiary, any Obligated Party or any of their respective
      shareholders, or Borrower or any Obligated party shall deny that it has
      any further liability or obligation under any of the Loan Documents, or
      any Lien or

                                      -26-
<PAGE>

      security interest created by the Loan Documents shall for any reason cease
      to be a valid, first priority perfected security interest in and Lien upon
      any of the Collateral purported to be covered thereby.

            (k) Any of the following events shall occur or exist with respect to
      Borrower or any ERISA Affiliate: (i) any Prohibited Transaction involving
      any Plan; (ii) any Reportable Event with respect to any Plan; (iii) the
      filing under Section 4041 of ERISA of a notice of intent to terminate any
      Plan or the termination of any Plan; (iv) any event or circumstance
      entitling the PBGC to institute proceedings under Section 4042 of ERISA
      for the termination of, or for the appointment of a trustee to administer,
      any Plan, or the institution by the PBGC of any such proceedings; or (v)
      complete or partial withdrawal under Section 4201 or 4204 of ERISA from a
      Multiemployer Plan or the reorganization, insolvency, or termination of
      any Multiemployer Plan; and in each case above, such event or condition,
      together with all other events or conditions, if any, have subjected or
      could in the reasonable opinion of Bank subject Borrower to any tax,
      penalty, or other liability to a Plan, a Multiemployer Plan, the PBGC, or
      otherwise (or any combination thereof) which in the aggregate exceed or
      could reasonably be expected to exceed $100,000.

            (l) Borrower, any Subsidiary, or any Obligated Party or any of their
      properties, revenues, or assets, shall become subject to an order of
      forfeiture, seizure, or divestiture and the same shall not have been
      discharged within thirty (30) days from the date of entry thereof.

            (m) The Service Lloyd's Debt is repaid in amounts greater than the
      repayment schedule for the Service Lloyd's Debt existing as of the
      Effective Date or any other Debt is repaid in violation of Section 10.8 or
      Section 10.18. [9]

      Section 12.2. Remedies Upon Default. If any Event of Default shall occur
and be continuing, Bank may without notice declare the Obligations or any part
thereof to be immediately due and payable, and the same shall thereupon become
immediately due and payable, without notice, demand, presentment, notice of
dishonor, notice of acceleration, notice of intent to accelerate, notice of
intent to demand, protest, or other formalities of any kind, all of which are
hereby expressly waived by Borrower; provided, however, that upon the occurrence
of an Event of Default under Section 12.1(e) or Section 12.1(f), the Obligations
shall be immediately due and payable without notice, demand, presentment, notice
of dishonor, notice of acceleration, notice of intent to accelerate, notice of
intent to demand, protest, or other formalities of any kind, all which are
hereby expressly waived by Borrower. If any Event of Default shall occur and be
continuing, Bank may exercise all rights and remedies available to it in law or
in equity, under the Loan Documents, or otherwise.

      Section 12.3. Setoff. If an Event of Default shall have occurred and be
continuing, Bank shall have the right to set off and apply against the
Obligations in such manner as Bank may reasonably determine, at any time and
without notice to Borrower, any and all deposits (general or special, time or
demand, provisional or final) or other sums at any time credited by or owing
from Bank to Borrower whether or not the Obligations are then due. The rights
and remedies of Bank hereunder are in addition to other rights and remedies
(including, without limitation, other rights of setoff) which Bank may have.
Bank agrees to notify Borrower after any such set-off and application.

                                      -27-
<PAGE>

      Section 12.4. Performance by Bank. If Borrower shall fail to perform any
covenant or agreement contained in any of the Loan Documents, Bank may perform
or attempt to perform such covenant or agreement on behalf of Borrower. In such
event, Borrower shall, at the request of Bank, promptly pay any reasonable
amount expended by Bank in connection with such performance or attempted
performance to Bank, together with interest thereon at the Default Rate from and
including the date of such expenditure to but excluding the date such
expenditure is paid in full. Notwithstanding the foregoing, it is expressly
agreed that Bank shall not have any liability or responsibility (except for its
gross negligence or willful misconduct) for the performance of any obligation of
Borrower under this Agreement or any other Loan Document.

                                  ARTICLE XIII

                                  Miscellaneous

      Section 13.1. Expenses. Borrower hereby agrees to pay on demand: (a) all
costs and expenses of Bank in connection with the preparation, negotiation,
execution, and delivery of this Agreement and the other Loan Documents and any
and all amendments, modifications, renewals, extensions, and supplements thereof
and thereto, including, without limitation, the fees and expenses of legal
counsel for Bank, (b) all costs and expenses of Bank in connection with any
Default and the enforcement of this Agreement or any other Loan Document,
including, without limitation, the reasonable fees and expenses of legal counsel
for Bank, (c) all costs, expenses, assessments, and other charges incurred in
connection with any filing, registration, recording, or perfection of any
security interest or Lien contemplated by this Agreement or any other Loan
Documents, and (d) all other costs and expenses incurred by Bank in connection
with this Agreement or any other Loan Document.

      Section 13.2. INDEMNIFICATION. BORROWER HEREBY AGREES TO INDEMNIFY BANK,
ITS AFFILIATES AND ITS RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES,
ATTORNEYS, AGENTS, AND PARTICIPANTS FROM, AND HOLD EACH OF THEM HARMLESS
AGAINST, ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
DISBURSEMENTS, COSTS, INTEREST, EXPENSES (INCLUDING ATTORNEYS' FEES) AND AMOUNTS
PAID IN SETTLEMENT TO WHICH ANY OF THEM MAY BECOME SUBJECT WHICH DIRECTLY OR
INDIRECTLY ARISE FROM OR RELATE TO (a) THE NEGOTIATION, EXECUTION, DELIVERY,
PERFORMANCE, ADMINISTRATION, OR ENFORCEMENT OF ANY OF THE LOAN DOCUMENTS, (b)
ANY OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS, (c) ANY BREACH BY
BORROWER OF ANY REPRESENTATION, WARRANTY, COVENANT OR OTHER AGREEMENT CONTAINED
IN ANY OF THE LOAN DOCUMENTS, (d) THE USE OR PROPOSED USE OF ANY BORROWING, OR
(e) ANY INVESTIGATION, LITIGATION OR OTHER PROCEEDING, INCLUDING WITHOUT
LIMITATION ANY THREATENED INVESTIGATION, LITIGATION OR OTHER PROCEEDING,
RELATING TO ANY OF THE FOREGOING; PROVIDED, HOWEVER, THAT NO PERSON TO BE
INDEMNIFIED HEREUNDER SHALL HAVE THE RIGHT TO BE INDEMNIFIED FOR ITS OWN GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT. WITHOUT LIMITING ANY PROVISION OF THIS
AGREEMENT OR OF ANY OTHER LOAN DOCUMENT, IT IS THE EXPRESS INTENTION OF THE
PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED UNDER THIS SECTION SHALL BE
INDEMNIFIED FROM AND

                                      -28-
<PAGE>

HELD HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES,
PENALTIES, JUDGMENTS, DISBURSEMENTS, COSTS AND EXPENSES (INCLUDING ATTORNEYS'
FEES).

      Section 13.3. Limitation of Liability. Neither Bank nor any Affiliate,
officer, director, employee, attorney, or agent of Bank shall have any liability
with respect to, and Borrower hereby waives, releases, and agrees not to sue any
of them upon, any claim for any special, indirect, incidental, or consequential
damages suffered or incurred by Borrower in connection with, arising out of, or
in any way related to, this Agreement or any of the other Loan Documents, or any
of the transactions contemplated by this Agreement or any of the other Loan
Documents. Borrower hereby waives, releases, and agrees not to sue Bank or any
of Bank's Affiliates, officers, directors, employees, attorneys, or agents for
punitive damages in respect of any claim in connection with, arising out of, or
in any way related to, this Agreement or any of the other Loan Documents, or any
of the transactions contemplated by this Agreement or any of the other Loan
Documents.

      Section 13.4. No Fiduciary Relationship. The relationship between Borrower
and Bank with respect to the Loan Documents and the transactions governed
thereby is solely that of debtor and creditor, and Bank has no fiduciary or
other special relationship with Borrower with respect to the Loan Documents and
the transactions governed thereby, and no term or condition of any of the Loan
Documents shall be construed so as to deem the relationship between Borrower and
Bank with respect to the Loan Documents and the transactions governed thereby to
be other than that of debtor and creditor.

      Section 13.5. No Waiver; Cumulative Remedies. No failure on the part of
Bank to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power, or privilege under this Agreement shall operate as
a waiver thereof, nor shall any single or partial exercise of any right, power,
or privilege under this Agreement preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege. The rights and remedies
provided for in this Agreement and the other Loan Documents are cumulative and
not exclusive of any rights and remedies provided by law.

      Section 13.6. Successors and Assigns. This Agreement is binding upon and
shall inure to the benefit of Bank and Borrower and their respective successors
and assigns, except that Borrower may not assign or transfer any of its rights
or obligations under this Agreement without the prior written consent of Bank.

      Section 13.7. Survival. All representations and warranties made in this
Agreement or any other Loan Document or in any document, statement, or
certificate furnished in connection with this Agreement shall survive the
execution and delivery of this Agreement and the other Loan Documents, and no
investigation by Bank or any closing shall affect the representations and
warranties or the right of Bank to rely upon them. Without prejudice to the
survival of any other obligation of Borrower hereunder, the obligations of
Borrower under Sections 13.1, and 13.2 shall survive repayment of the Notes and
termination of the Term Loan Commitment.

      Section 13.8. Amendment. The provisions of this Agreement and the other
Loan Documents to which Borrower is a party may be amended or waived only by an
instrument in writing signed by the parties hereto.

                                      -29-
<PAGE>

      Section 13.9. Maximum Interest Rate. No provision of this Agreement or any
other Loan Document shall require the payment or the collection of interest in
excess of the maximum amount permitted by applicable law. If any excess of
interest in such respect is hereby provided for, or shall be adjudicated to be
so provided, in any Loan Document or otherwise in connection with this loan
transaction, the provisions of this Section shall govern and prevail and neither
Borrower nor the sureties, guarantors, successors, or assigns of Borrower shall
be obligated to pay the excess amount of such interest or any other excess sum
paid for the use, forbearance, or detention of sums loaned pursuant hereto. In
the event Bank ever receives, collects, or applies as interest any such sum,
such amount which would be in excess of the maximum amount permitted by
applicable law shall be applied as a payment and reduction of the principal of
the indebtedness evidenced by the Notes, at Bank's option; and, if the principal
of the Notes have been paid in full, any remaining excess shall forthwith be
paid to Borrower. In determining whether or not the interest paid or payable
exceeds the Maximum Rate, Borrower and Bank shall, to the extent permitted by
applicable law, (a) characterize any non-principal payment as an expense, fee,
or premium rather than as interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the entire contemplated
term of the indebtedness evidenced by the Notes, as applicable, so that interest
for the entire term does not exceed the Maximum Rate; provided that, if the
unpaid principal balance is paid and performed in full prior to the end of the
full contemplated term thereof, and if the interest received for the actual
period of existence thereof exceeds the Maximum Rate, Bank shall refund to
Borrower the amount of such excess and, in such event, Bank shall not be subject
to any penalties provided by any laws for contracting for, charging, receiving,
taking, collecting, reserving or applying interest in excess of the Maximum
Rate.

      Section 13.10. Notices. All notices and other communications provided for
in this Agreement and the other Loan Documents to which Borrower is a party
shall be given or made by telecopy, or in writing and telecopied, mailed by
certified mail return receipt requested, or delivered to the intended recipient
at the "Address for Notices" specified below its name on the signature pages
hereof; or, as to any party at such other address as shall be designated by such
party in a notice to the other party given in accordance with this Section.
Except as otherwise provided in this Agreement, all such communications shall be
deemed to have been duly given when transmitted by telecopy, subject to
telephone confirmation of receipt, or when personally delivered or, in the case
of a mailed notice, five (5) business days after being duly deposited in the
mails, in each case given or addressed as aforesaid.

      Section 13.11. GOVERNING LAW; VENUE; SERVICE OF PROCESS. THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. THIS AGREEMENT
HAS BEEN ENTERED INTO IN DALLAS COUNTY, TEXAS, AND IT SHALL BE PERFORMABLE FOR
ALL PURPOSES IN DALLAS COUNTY, TEXAS. ANY ACTION OR PROCEEDING AGAINST BORROWER
UNDER OR IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS MAY BE BROUGHT IN ANY
STATE OR FEDERAL COURT IN DALLAS COUNTY, TEXAS. BORROWER HEREBY IRREVOCABLY (a)
SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (b) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT IS AN INCONVENIENT
FORUM. BORROWER AGREES THAT SERVICE OF PROCESS UPON

                                      -30-
<PAGE>

IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS
ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
13.10. NOTHING HEREIN OR IN ANY OF THE OTHER LOAN DOCUMENTS SHALL AFFECT THE
RIGHT OF BANK TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL
LIMIT THE RIGHT OF BANK TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR
WITH RESPECT TO ANY OF ITS PROPERTY IN COURTS IN OTHER JURISDICTIONS.

      Section 13.12. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      Section 13.13. Severability. Any provision of this Agreement held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Agreement and the effect thereof shall be
confined to the provision held to be invalid or illegal.

      Section 13.14. Headings. The headings, captions, and arrangements used in
this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

      Section 13.15. Non-Application of Chapter 346 of Texas Finance Code. The
provisions of Chapter 346 of the Texas Finance Code (Vernon's Texas Finance Code
Ann.) are specifically declared by the parties hereto not to be applicable to
this Agreement or any of the other Loan Documents or to the transactions
contemplated hereby.

      Section 13.16. Participations. Bank shall have the right at any time and
from time to time to grant participations in the Notes and any other Loan
Documents. Each actual or proposed participant shall be entitled to receive all
information received by Bank regarding Borrower and Subsidiaries, including,
without limitation, information required to be disclosed to a participant
pursuant to Banking Circular 181 (Rev., August 2, 1984), issued by the
Comptroller of the Currency (whether the actual or proposed participant is
subject to the circular or not).

      Section 13.17. Construction. Borrower and Bank acknowledge that each of
them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents
with its legal counsel and that this Agreement and the other Loan Documents
shall be construed as if jointly drafted by Borrower and Bank.

      Section 13.18. WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, BORROWER HEREBY IRREVOCABLY AND EXPRESSLY WAIVES ALL RIGHT TO A
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON
CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF BANK IN THE
NEGOTIATION, ADMINISTRATION OR ENFORCEMENT THEREOF.

      Section 13.19. NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT, THE NOTES, THE
OTHER LOAN DOCUMENTS, AND THE INSTRUMENTS AND DOCUMENTS EXECUTED IN CONNECTION
HEREWITH, REPRESENT THE FINAL

                                      -31-
<PAGE>

AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                   [Balance of Page Intentionally Left Blank]

                                      -32-
<PAGE>

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

                                        BORROWER:

                                        SERVICE ASSET INVESTMENTS, INC.

                                        By: ___________________________________
                                        Name: _________________________________
                                        Title: ________________________________

                                        Address for Notices for Borrower:
                                        1700 Pacific Avenue, Suite 1400
                                        Dallas, Texas 75201
                                        Attention: ____________________________
                                        Fax No.: ______________________________
                                        Telephone No.:

                                        BANK:

                                        GUARANTY BANK

                                        By: ___________________________________
                                        Name: _________________________________
                                        Title: ________________________________

                                        Address for Notices:
                                        8333 Douglas Avenue
                                        Dallas, Texas 75225
                                        Attention: ____________________________
                                        Fax No.: ______________________________
                                        Telephone No.: ________________________

                                      -33-
<PAGE>

                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
Exhibit       Description of Exhibit                Section
-------       ----------------------                -------
<S>           <C>                                   <C>
  "A"         Term Note                              2.2
  "B"         Pledge Agreement                      6.1(a)
  "C"         Compliance Certificate                9.1(c)
</TABLE>

                               INDEX TO SCHEDULES

<TABLE>
<CAPTION>
Schedule          Description of Schedule                    Section
--------          -----------------------                    -------
<S>          <C>                                             <C>
 8.5         Existing Litigation                               8.5
 8.9         Existing Debt                                     8.9
 8.10        Tax Investigations                               8.10
 8.14        List of Subsidiaries                             8.14
 8.19        Environmental Matters                            8.19
 10.2        Existing Liens                                   10.2
 10.8        Service Lloyd's Debt Repayment Schedule          10.8
</TABLE>

<PAGE>

                                  SCHEDULE 7.5

#02/01 A. ABBAS, A. ABBASBHAI AND S. ALI ABBAS V. ALL TECH DIRECT, INC., ET AL.

ALL-TECH

Claimants allege damages relating to alleged unauthorized trading and
executions, improper margin calculations and liquidations, and failure to
provide information relating to the partnership and IRA accounts of Claimants.
Accounts opened with All Tech in February 1999 and transferred to PFSI from
Southwest Securities in April 1999. Damages alleged "not to exceed $500,000."

03/20/01 - PFSI served with Statement of Claim
05/18/01 - PFSI's Motion to Dismiss & Response
05/01/01 - All-Tech's Answer & Affirmative Defenses
01/29/02 - PFSI's Request for Documents
02/04/02 - Claimant's First.Request for Documents
02/11/02 - Respondent SWS Motion to Compel the Production of Documents from
           Claimant
03/12/02 - PFSI files Objections & Responses to Claimant's lst Request for
           Information & Documents
           Claimant's Response to Respondent All-Tech for lst Request for
           Information & Documents
           Claimant's Response to Respondent Southwest securities for 1st
           Request for Information & Documents
           Claimant's Motion to Compel Southwest Securities
10/22/02 - PFSI submits letter in response to All-tech's request for continuance
           and amended Motion to Dismiss
11/02/02 - Hearing scheduled in Chicago Hearing re-scheduled - no date set yet
11/18/02 - PFSI submits Motion to Dismiss
12/30/02 - Claimant rejects PFSI's settlement efforts and Panel has not yet
           scheduled hearing dates on the dismissal motions or the merits
           hearing.
05/15/03 - Arbitrator did not show for the scheduled hearing and was
           subsequently replaced
06/02/03 - The new Arbitrator did not receive the complete file from the NASD
           and the meeting was adjourned and would reconvene on July 25th.
10/14/03 - Scheduled Telephonic hearing was cancelled due to another arbitrator
           withdrawal.
12/02/03 - Pre-hearing conference scheduled for l0:00am.
12/17/03 - Respondents Motion for Summary Judgment was denied by the NASD panel
05/2005- Hearing scheduled

STATUS: Pending

#06/01 HAPPY MOTORS, INC. AND BENJAMIN NEHMATNEJAD VS. U.S. TRADING COMPANY AND
PFSI

U.S. TRADING

Claimants allege damages in the amount of $400,000 due to alleged negligent
misrepresentations, unauthorized trading, unsuitable recommendations, and
violations of fiduciary duties relating to their accounts with U.S. Trading. No
specific claims against PFSI are alleged.

05/08/01 - PFSI served with Statement of Claim
06/19/01 - Request to Claimants by PFSI for Document Production
           Original Answer of PFSI & Motion to Dismiss
07/11/01 - Original Answer of US Trading
01/25/02 - PFSI's Objections & Responses to Claimants First Request for
           Production of Documents
02/06/02 - Motion to Dismiss was heard by the Arbitration Panel- There has been
           no ruling to date (01/22/04)
04/27/02 - Scheduling of Hearings with Arbitrators should occur within the next
           month and Final Hearings are anticipated to be scheduled in New York.
09/11/02 - Hearings with Arbitrators is being re-scheduled At this writing a
           firm date has still not been established.
09/10/04 - A Prehearing conference is to be scheduled by the NASD.

                                                                          Page 1
<PAGE>

#07/02 PFSI VS. TOM CABE & PHOENIX ENERGY CO, INC.

U.S. TRADING

In 2000, PFSI was granted a lien on an office building owned by phoenix Energy
Companies, Inc. to secure an indebtedness owed to PFSI by its correspondent,
M.G. Securities, Inc. ("M.G. Securities"). At the time the lien was granted to
PFSI, Phoenix Energy Companies, acting through its President, Tom Cabe,
represented to PFSI in Deed of Trust that there were two other liens and then
represented and warranted to PFSI "that there are no encumbrances against the
Property other than the Prior Liens and the Other Exceptions to Conveyance and
Warranty." Ultimately, another, superior lien was discovered, which lien was
foreclosed in July, 2002. PFSI filed this action for its damages from the
misrepresentation of the lien status. On December 16, 2002, PFSI was granted a
judgment, by default, against both defendants, jointly and severally, in the
amount of $459,962. Defendants moved to set aside the judgment and requested a
new trial. At a hearing on that motion on February 24, 2003, the court set aside
the default judgment. On November 12, 2003, the case was tried on the merits
before Judge Charles Stokes, who ruled that PFSI take nothing against either
Defendant. PFSI has filed a Motion for a New Trial to see if this Judgment can
be set aside.

11/12/02 - PFSI files Statement of Claim
           PFSI files Notice of Lis Pendens seeking to establish right to
           enforce lien and attempt to recover damages
12/16/02 - Court grants PFSI's Motion for Default Judgment and allows recovery
           (jointly and severally) the amount of $459,962.00 in actual damages
           plus court costs and with a 10% APR applied for post judgment
           interest
12/26/02 - PFSI files Writ of Garnishment against Bank of America
02/24/03 - Default Judgment is Set Aside and Court Grants Motion for New Trial
03/04/03 - Most recent Date of Foreclosure Sale at the Dallas County Courthouse
03/07/03 - Release of Judgment Lien filed.
05/21/03 - Agreed Final Judgment signed by Counsel for PFSI & Bank of America.
           Bank of America will recover legal costs in the amount of $743.49 and
           PFSI will recover $459,962.00.
10/02/03 - Mediation Conference scheduled for 1:30pm
10/14/03 - Trial set for 9:00am. (Postponed by the Court)
11/05/03 - New Trial Date
11/13/03 - Ruling was made in favor of Defendant. However,PFSI has not yet
           received the court Judgment.
01/05/04 - PFSI files Motion for New Trial - PFSI has offered $12,500 in
           settlement - Awaiting counter offer
07/15/04 - Thomas Cabe files suit against PFSI claiming wrongful garnishment and
           conversion and seeks relief in the amount of $50,000.00
08/09/04 - PFSI files Answer.

STATUS: Pending

#09/02 COLE T. COFFER & WM. R. SKUTCH & ANDREW MOED VS. SAMCO, SVC. ASSET
TRADING, INC., SAMCO TRADING, INC., PWW, INC., PFSI, ROGER J. ENGEMOEN, JR. &
JAMES J. KUBISAK

Suit claims that Plaintiffs were fraudulently induced to resign from stable and
financially rewarding long-term positions with there respective previous
employers based on alleged material misrepresentations and omissions concerning
the financial condition of the business and business plans for the New York
trading office. Both Defendants allege a material breach of their signed
two-year employment contracts and the deliberate destruction of corporate
records. The suit alleges the following: Fraudulent Inducement / Fraudulent
Concealment / Tortuous Interference with Contractual Relations / Breach of
Contract / Promissory Estoppel / & Civil Conspiracy. Plaintiffs are seeking
$5,250,000.00 million in damages plus prejudgment interest, punitive damages and
attorney fees.

12/17/02 - Suit filed in US District Court-NY
02/07/03 - PFSI Files Motion to Dismiss
         - SAMCO files Answer to Original Complaint & Request for NASD
           Arbitration
         - PFSI submits Memorandum of Law
04/09/03 - Hearing scheduled relating to Motion to Compel NASD Arbitration.
04/18/03 - PFSI received a First Amended Complaint adding a new Plaintiffby the
           name of Louis Andrew Moed, who alleges similar charges, Fraudulent
           Inducement, Breach of Contract etc. Additionally, the Prayer for
           Relief was also amended and Plaintiff's are now seeking $5,250,000.00
           plus prejudgment interest.
04/23/03 - Plaintiff's submit initial disclosures
05/12/03 - Plaintiff's submit Interrogatories & First Request for Production of
           Documents
06/13/03 - PFSI/SAMCO filed Responses to Interrogatories & Production of
           Documents

                                                                          Page 2
<PAGE>

06/13/03 - Service Asset Trading Answers 1st Set of Interrogatories
08/11/03 - Depositions conducted in New York
10/15/03 - Defendant's Answer and Counter Claim was submitted
10/16/03 - Deposition date for Mr. Moed and Mr. Skutch is scheduled for 9:00am
10/31/03 - Memorandum Decision compels arbitration before the NASD
11/10/03 - Defendants submit Statement of Answer
03/17/04 - Pre-Hearing Date Scheduled
03/24/04 - Notified by NASD that both Coffer and Skutch had filed separate
           Arbitration claims.
04/07/04 - PFSI submits request to re-consolidate both matters
08/2004 -  Matters #04-01101, #04-01225 and #04-01101 have been consolidated
           into one case. The new case will be listed as #03-06611. Hearing
           dates are being rescheduled

STATUS: Pending

#03/03 FRANCIS MCCUTCHAN & SCOTT SCHONDAU V. SAMCO CAPITAL MKTS., PFSI & LEE
MAVERICK

Claimants allege they were defamed when PFSI/SAMCO filed false and misleading
information on each of their Form U-5's. They site (1) incorrect termination
date, (2) the failure to note that the TRO filed by SAMCO was dissolved
following an evidentiary hearing leaving the misconception that the allegations
had been validated by a court; (3) "resigned subject to litigation"; and (4)
that the form U-5's erroneously suggest the both men were under internal review
at the time of their resignation, thus causing the NASD to require addition DRP
information from both men and preventing registration with their new employer.

03/19/03 - Received Copy of Statement of Claim
04/30/03 - PFSI submits Answer & Counterclaims
05/12/03 - Claimants submit Response to Counterclaims
06/19/03 -NASD has requested mediation for this matter
08/11/03 - Depositions commence.
08/20/03 - Initial pre-hearing conference is scheduled for September 10, 2003
11/04/03 - Initial pre-herring telephonic conference was held
11/20/03 - The Scheduling Order reflects the following time frames:
           HearingSession scheduled April 21, 2004 through April 22, 2004 /
           Discovery cut-off date is March 25, 2004.
01/21/04 - Mediation scheduled
04/06/04 - Received drafts of Settlement Agreement and Release / Proposed
           Stipulated Award, wherein parties agree to request Expungement of U-5
           information from McCutchan and Schondau's registration records.

STATUS: Pending

#08/03 PFSI V. HARTFORD FIRE INSURANCE COMPANY

PFSI

PFSI is bringing claim against Hartford for Business interruption losses arising
from the events of 9/11/2001.

09/12/03 - PFSI files Original Petition for Declaratory Judgment
10/22/03 - Hartford submits Notice of Removal thereby changing the forum of the
           case from State Court to the Federal Court.
10/29/03 - Hartford files Original Answer
11/24/03 - PFSI & Hartford submit Joint Report Concerning Scheduling Order.
           Parties have agreed to exchange initial disclosures on or before
           12/12/03.
12/01/03 - Court enters Scheduling Order
12/15/03 - PFSI submits Initial Disclosures
03/05/04 - PFSI submits Objections and Responses to Defendant's First Set of
           Interrogatories and Request for Production
04/13/04 - Agreed Protective Order filed.
04/13/04 - PFSI submits First Request for Production of Documents
06/07/04 - Deposition date for Phil Pendergraft
06/29/04 - PFSI & Hartford file Joint Motion for Extension of Time to Extend
           Current Scheduling Dates
07/30/04 - Hartford files Motion for Summary Judgment Brief in Support of
           Summary Judgment and Appendix

                                                                          Page 3
<PAGE>

STATUS: Pending

#10/03 JOHNNY L HUGHLEY, SR., LEANDER W. HUGHLEY, JOHNNY L HUGHLEY SR. & LEANDER
W. HUGHLEY FAMILY TRUST, CLAIMANTS V. PRUDENTIAL INSURANCE COMP., BYRON RAINNER,
(AND INDIVIDUAL) SYNERGY INVESTMENT GROUP, PFSI AND METLIFE SECURITIES, INC.,

                                     SYNERGY

Claimants allege unauthorized transfers and trades placed in their account
diluted their invested lottery winnings in excess of $700,000.00.

09/18/03 - PFSI received Statement of Claim
10/30/03 - Prudential files Original Answer
10/31/03 - PFSI files Original Answer and Motion to Dismiss
02/10/04 - Panel Chair Agreed upon
04/05/04 - Telephonic conference scheduled
04/02/04 - Claimant submits First Amended Statement of Claim adding three more
           Respondents
06/01/04 - Discovery Deadline
06/16/04 - Telephonic hearing on PFSI's Motion to Dismiss
09/20-23/04 - Hearing Scheduled
04/29/04 - PFSI submits Memorandum in Support of Motion of Dismiss
05/06/04 - PFSI submits Request for Production of Documents
06/07/04 - PFSI submits Reply to Claimants Motion to Dismiss
07/01/04 - PFSI submits Objections and Responses to Claimant's First Request for
           Production of Documents
08/03/04 - PFSI submits request for reconsideration of the Motion to Dismiss
10/20-10/25/04 - Hearing Rescheduled

STATUS: Pending

#13/03 PFSI V. DTC

PFSI

PFSI alleges Breach of Contract under the Participant's Agreement with DTC, in
addition to Wrongful Conversion, Breach of Fiduciary Duty, and Unjust
Enrichment. PFSI is seeking to recover $162,760.11 in attorney's fees and costs
incurred in the purchase of 4,000,000 shares of Oak Ridge to cover a short
position at DTC.

12/01/03 - PFSI files Original Complaint
01/23/04 - DTC files their Answer and Court orders the preparation of a Joint
           Status Report
02/13/04 - PFSI along with DTC file Court ordered Joint Status Report
02/17/04 - Case set for Jury Trial March 7 - 21, 2005
03/16/04 - PFSI First Request for Production of Documents
03/23/04 - PFSI's Objections & Responses to Defendant's 1st Request for
           production of Documents
04/27-28/04 - Deposition dates for Jill Zacha and Phil Pendergraft
05/18/04 - Deposition date for Richard Hart
05/19 or 20/04 - Tentative deposition dates for Dan Son
04/14/04 - Agreed Protective Order filed.
04/20/04 - PFSI's Objections & Responses to Defendant's 2nd Request for
           Production of Documents
06/07/04 - PFSI files Joint Report on Discovery Progress and Status of
           Settlement Negotiations.
           PFSI has scheduled depositions to be taken June 15-17 for four of
           Defendant's employees. Parties have deferred settlement discussions
           pending completion of the first round of deposition discovery and
           parties believe the case is appropriate for referral to a mediator.
           PFSI has proposed their selection for the mediator appointment and
           DTC is considering the proposal.
08/25/04 - Mediation scheduled in Dallas. Matter unresolved in mediation. PFSI
           will proceed forward to jury trial in Dallas, Texas.

STATUS: Pending

                                                                          Page 4
<PAGE>

PFSI V. BLACKWOOD ET. AL.

PFSI

PFSI is a creditor in the bankruptcy of several Blackwood entities (including a
former correspondent and a software company). Our claims against the Blackwood
entities exceed $1,000,000. The only Blackwood entity with any assets is the
software company; however, that company's assets will fall significantly short
of satisfying all outstanding creditor claims. PFSI received guarantees of
Blackwood's obligations from Messrs. Weinger, Schlifstein and Bag (Bag should
have significant credit) and filed suit against the guarantors to collect. The
suit against the guarantors was consolidated into the bankruptcy case. PFSI has
settled with defendant Weinger for $140,000, which has been received. PFSI has
located some assets (less than $10,000 in bank accounts) of Bag but is seeking
to locate others and compel further depositions. Bag is seeking to evade service
and has, most likely, fraudulently transferred assets to his wife and other
parties.

02/23/04 - PFSI's Motion for Summary Judgment is granted against defendants
           Weinger and Bag. Defendant Schlifstein brought his own personal
           Chapter 7 bankruptcy proceeding, the judge consequently declined to
           grant summary judgment against Schlifstein citing an automatic stay.
06/03/04 - Judgment against Guarantor entered in the amount of $ 1,188,833.64 in
           favor or PFSI.

STATUS: Pending

#05/04 LYMAN & CHRISTA DAVIS V. TRADE SECRETS FINANCIAL NETWORK, INC., PFSI AND
ET AL.

THINKORSWIM, INC.

Claimants allege Trade Secrets mismanaged their account and misrepresented their
ability to perform in the options market. They also allege Negligence, Failure
to Supervise, and Omission of Facts. Claimants seek a refund of the $800.00
management fee paid when they entered the "Managed Account Program" and
reimbursement for the $10,000.00 losses incurred.

O5/20/04 - PFSI received NASD notice of arbitration.
06/18/04 - PFSI submits Motion to Dismiss and Answer
09/09/04 - PFSI submitted Response and Objections to Claimants Request for
           Information
10/25/04 - Hearing scheduled for Motion to Dismiss
01/25-01/27/05 - Hearing Scheduled

STATUS: Pending

#07/04 SYLVIA LEVIN, VS. THURSTON GENE GILMAN, STEVEN A. GILMAN, FINANCIAL LINKS
& PFSI

PFSI

Claimant alleges unauthorized transfers and trades placed in an account managed
by Gene and Steve Gilman, Principals at one of PFSI's former Correspondent's,
Financial Links. The suit claims: Breach of Contract, Failure to Supervise, and
Breach of Fiduciary Duty. Claimant seeks restitution in excess of $600,000. PFSI
does not hold an account for Ms. Levin. It is believed that her funds were being
circulated through an account under the name Arbor Securities, which was
operated by the Gilman's.

05/04/04 - PFSI received Statement of Claim
08/05/04 - PFSI received Claimants Request for Documents and Information
08/20/04 - PFSI filed Answer and Motion to Dismiss

STATUS: Pending

                                                                          Page 5
<PAGE>

#08/04 PFSI VS. EEL RIVER INVESTMENT COMPANY

PFSI

As authorized by an executed Customer Account Agreement and Trading
Authorization, William Malloy, a registered rep with Delta Asset, executed a
number of securities transaction on behalf of the Defendant. Many of the
transactions were "short" positions, which the Defendant failed to deliver and
claims were unauthorized. Consequently, PFSI was forced to cover the
transactions resulting in a balance owed to PFSI in the amount of $1,771,593.15.
PFSI is suing for actual damages, Breach of Contract, post and prejudgment
interest and legal costs.

07/30/04 - PFSI files Original Complaint and Certificate of Interested Persons

STATUS: Pending

RESOLUTION CAPITAL INC. V. CENTRE DE PLACEMENT FINANCIERS EVEREST INC. AND
PENSON FINANCIAL SERVICES CANADA

PFSC

Resolution alleges certain unauthorized and unreported trades under a commission
sharing arrangement with Everest for which it believes Penson has
responsibility. Claims are approximately C$900,000. Management believes the
claims are without merit and that PFSC has significant potential counterclaims.
PFSC in the process of selecting outside counsel to represent it and respond.

09/29/04- Resolution files Motion to Institute Pleadings

STATUS: Pending

                                                                          Page 6
<PAGE>

                                  SCHEDULE 8.5

                              Existing Litigation

<PAGE>

                                  SCHEDULE 8.9

                                  Existing Debt

                                      NONE

<PAGE>

                                  SCHEDULE 8.9

Long-Term Debt:

-     Convertible Note dated 6/30/03 by Penson Worldwide in favor of Phil
      Pendergraft

-     Convertible Note dated 6/26/03 by Penson Worldwide in favor of Call Now,
      Inc.

-     Convertible Note dated 12/30/03 by Penson Worldwide in favor of Call Now,
      Inc.

-     Convertible Note dated 12/30/03 by Penson Worldwide in favor of Chris Hall

-     Other Convertible Notes in favor of employees which, individually, do not
      exceed $250,000 and which are reflected on financial statements delivered
      to the Bank

-     Other ordinary course documents evidencing indebtedness which,
      individually, do not exceed $250,000 and which are reflected on financial
      statements delivered to the Bank

-     Promissory Note dated 12/6/01 by Samco Holdings, Inc. in favor of Service
      Lloyds Insurance Company

-     Loan Agreement dated 11/4/02 between SunGard Data Systems, Inc. and Penson
      Worldwide with limited attornment by certain other parties, Promissory
      Note dated 11/4/02 by Penson Worldwide in favor of SunGard Data Systems,
      Inc., and Escrow Agreement dated 11/4/02 among SunGard Data Systems, Inc.,
      Penson Worldwide and Blank Rome Comisky & McCauley

-     Amended and Restated Loan Agreement dated 4/30/01 between Service Asset
      Investments, Inc. and Guaranty Bank and all pledge agreements, guaranties
      and other documents referred to therein

-     Asset Purchase Agreement by and between Penson Worldwide, Nexa
      Technologies, Inc., a Delaware corporation, Nexa Technologies, Inc., a
      California corporation, Vista Holdings, Inc. and the individuals and
      entities listed in such agreement as the "Additional Indemnitors," dated
      May 7, 2004, and the ancillary agreements entered into in connection with
      such agreement

Short-Term Debt Principally Related To Securities Lending And Borrowing/Third
Party Clearing And Execution Arrangements:

-     Master Note by PFS in favor of Bank of America NT&SA

-     Security Agreement dated 12/21/98 by PFS in favor of Bank of America NT&SA

-     General Loan and Collateral Agreement dated 8/6/96 by PFS in favor of
      Chase Manhattan Bank

-     Certain Subsidiaries engage in the business of borrowing and lending
      securities to facilitate customer short sales and for general financing
      purposes. These transactions are governed by a standard SIA Master
      Securities Lending Agreement, ISDA Swaps Agreement or other standard
      documentation

-     Certain Subsidiaries have third party clearing and execution agreements
      pursuant to which short-term obligations may arise

-     Agreement by PFS and Security Agreement, each dated 4/24/03 in favor of
      Bank of New York

<PAGE>

-     Master Call Loan and Security Agreement dated September 21, 2001 between
      Canada and Royal Bank of Canada

-     Agreement dated 9/30/02 between Canada and Bank of Montreal

-     Brokers Security Agreement dated 9/30/02 between Canada and Bank of
      Montreal

-     Receiver of Credit Agreement For Debt Clearing Service dated 7/18/02
      between Canada and Bank of Montreal

-     Guaranty dated 7/29/02 by Penson Worldwide in favor of Bank of Montreal

-     Guarantee and Postponement of Claim dated 6/7/02 by Penson Worldwide in
      favor of Royal Bank of Canada

-     Confirmation of Grant of Hypotecs and list of liens

-     Pre-Authorized Debit Agreement dated 10/30/03 between Canada and The
      Canadian Depository for Securities Limited

-     Guarantee and Indemnity dated 4/7/04 by Penson Worldwide to FIMAT
      International Banque S.A. (UK Branch)

-     Guarantee letter dated 11/27/00 by PFS to Dresdner Bank AG

-     Guaranty dated 4/21/04 by Penson Worldwide to Carr Futures, Inc.

Miscellaneous Debt:

-     Lease obligations in the ordinary course of business reflected on
      financial statements delivered to the Bank

-     Employment agreements in the ordinary course of business

-     Indemnity obligations entered into in the ordinary course of business

-     Purchase Agreement among Keefe Managers LLC, SAI and the other parties
      thereto and the other documents referenced therein (these documents are
      anticipated to be executed on or about October 15, 2004)

<PAGE>

                                  SCHEDULE 8.10

                               Tax Investigations

<PAGE>

                                  SCHEDULE 8.14

                              List of Subsidiaries

<PAGE>

                                  SCHEDULE 8.14

Direct and indirect Subsidiaries:

SAH, Inc. (a Delaware corp. that is a Subsidiary of Borrower)

Penson Financial Services, Inc. (a North Carolina corp. that is a Subsidiary of
Borrower)

Integrated Trading Solutions, Inc. (a Delaware corp. that is a Subsidiary of
Borrower)

Penson Holdings, Inc. (a Delaware corp. that is a Subsidiary of Borrower)

Samco Financial Services, Inc. (an Arizona corp. that is a Subsidiary of
Borrower)

Samco Financial Advisors Inc. (a Texas corp. that is a Subsidiary of Borrower)

Penson Financial Futures, Inc. (a Delaware corp. that is a Subsidiary of
Borrower)

Penson Financial Services Limited (a UK entity that is a subsidiary of Penson
Holdings, Inc.)

Worldwide Nominees Ltd. (a UK entity that is a subsidiary of Penson Financial
Services Limited)

Penson Financial Services Canada Inc. (a Canadian corp. that is a Subsidiary of
Penson Holdings, Inc.)

Penson Ventures, Inc. (a Canada corp. that is a Subsidiary of Penson Holdings,
Inc.)

Turnpike Trading Systems, Inc. (a Canada corp. that is a Subsidiary of Penson
Ventures, Inc.)

<PAGE>

                                  SCHEDULE 8.19

                              Environmental Matters

<PAGE>

                                  SCHEDULE 10.2

Liens relating to certain Debt set forth on Schedule 8.9

<PAGE>

                                  SCHEDULE 10.8

                     Service Lloyd's Debt Repayment Schedule

<PAGE>

                                    EXHIBIT C

<PAGE>

                             COMPLIANCE CERTIFICATE

             FOR MONTH ENDED __________, 200_ (the "Subject Period")

BANK:   GUARANTY BANK                              DATE: _____________, 200_

BORROWER: SAI HOLDINGS, INC., formerly known as SERVICE ASSET INVESTMENTS, INC.

      This certificate is delivered pursuant to Section 9.1(c) of the Amended
and Restated Loan Agreement dated as of April 30, 2001 (as renewed, extended, or
amended, the "Loan Agreement") among Borrower and Bank. All defined terms used
in this certificate shall have the meanings ascribed to them in the Loan
Agreement.

      I certify to Bank that, as of the date of this certificate, (a) I am an
officer of the Borrower and that, as such, am authorized to execute this
certificate on behalf of Borrower; (b) the financial statements of Borrower
attached to this certificate were prepared in accordance with GAAP, and present
fairly the financial condition and results of operations of the Borrower as of,
and for the (quarter or fiscal year) ended as on, the last day of the Subject
Period; (c) a review of the activities of the Borrower during the Subject Period
has been made under my supervision with a view to determining whether, during
the Subject Period, the Borrower performed, and complied with all of its
obligations under the Loan Documents, and during the Subject Period, to my
knowledge (i) the Borrower performed, and complied with all of its obligations
under the Loan Documents (except for the deviations, if any, set forth on the
schedule annexed to this certificate) in all material respects, and (ii) no
Event of Default (nor any default) has occurred which has not been cured or
waived (except Events of Default and defaults, if any, described on the schedule
annexed to this certificate or otherwise waived in writing by Bank); and (d) to
my knowledge, the status of compliance by Borrower with the financial covenants
specified in the Loan Agreement at the end of the Subject Period (month or
fiscal quarter), is as set forth on the schedule annexed to this certificate.

                                        SAI HOLDINGS, INC., formerly known as
                                        SERVICE ASSET INVESTMENTS, INC.

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title: _____________________________

<PAGE>

                       SCHEDULE TO COMPLIANCE CERTIFICATE
                       (For month ended _________, 200__)

      A. Describe deviations from performance or compliance with covenants, if
any, pursuant to clause (c)(i) of attached certificate. If none, so state.

      B. Describe Events of Default or defaults, if any, pursuant to clause
(c)(ii) of the attached certificate. If none, so state.

      C. Reflect compliance with the financial covenants specified in the Loan
Agreement at end of Subject Period (on a consolidated basis, if applicable)
pursuant to clause (d) of the attached certificate:

<TABLE>
<S>      <C>                                                                 <C>
11.1     Monthly Liquidity Maintenance

         (a) Unencumbered Cash and Cash Equivalents of Subsidiaries for      $__________
             Subject Period

         (b) Minimum Liquidity Maintenance required for Subject Period       $12,000,000

         (c) Borrower is in compliance with this covenant                    Yes__ No__

11.3     PFS Quarterly Minimum EBITDA Requirement

         (a) PFS EBITDA for the Subject Period

             (i)   consolidated net income of PFS and its Subsidiaries       $__________

             (ii)  depreciation                                              $__________

             (iii) amortization                                              $__________

             (iv)  non-cash charges                                          $__________

             (v)   taxes                                                     $__________

             (vi)  interest expense                                          $__________

             Sum of Lines (i) through (vi)                                   $__________

         (b) Minimum EBITDA required for the Subject Period                  $__________

         (c) Is EBITDA at least the amount set forth in Line (b) as of the   Yes__ No__
             end of each fiscal quarter?

         (d) Borrower is in compliance with this covenant                    Yes__ No__
</TABLE>

SCHEDULE TO COMPLIANCE CERTIFICATE - Page 2

<PAGE>

<TABLE>
<S>      <C>                                                                 <C>
11.4     Monthly Minimum Capital Requirements

         (a) Regulatory Capital

             (i)    stockholders' equity                                     $_________

             (ii)   amounts due from affiliates                              $_________

             (iii)  loans receivable from correspondents                     $_________

             (iv)   unsecured customer accounts                              $_________

             (v)    furniture and equipment, net                             $_________

             (vi)   nonallowable assets                                      $_________

             (vii)  aged failures to deliver                                 $_________

             (viii) aged failures to receive                                 $_________

             (ix)   haircuts on securities: private equity investments       $_________

             (x)    haircuts on securities: certificates of deposit          $_________

             Line (i) minus the sum of Lines (ii) through (x)                $_________

         (b) 5% of Debit Balances                                            $_________

         (c) Required Additional Amount for the Subject Period               $_________

         (d) Line (b) plus Line (c)                                          $_________

         (e) Is Line (a) greater than Line (d) for the Subject Period?       Yes__ No__

         (f) Borrower is in compliance with this covenant                    Yes__ No__
</TABLE>

SCHEDULE TO COMPLIANCE CERTIFICATE - Page 3

<PAGE>

<TABLE>
<S>      <C>                                                                 <C>
11.5     Penson Worldwide Quarterly Minimum Tangible Net Worth

         (a) $50,000,000                                                     $50,000,000

         (b) 75% of positive cumulative net income of Penson Worldwide       $__________

         (c) Line (a) plus line (b)                                          $__________

         (d) Penson Worldwide's Quarterly Tangible Net Worth

             (i)   stockholders' equity as would be reflected on Penson      $__________
                   Worldwide's balance sheet, in conformity with GAAP

             (ii)  amount at which shares of capital stock of Penson         $__________
                   Worldwide appear as an asset on its balance sheet

             (iii) goodwill and amounts representing the excess of the       $__________
                   purchase price paid for assets on stock over the
                   assigned value.

             (iv)  patents, trademarks, tradenames and copyrights            $__________

             (v)   deferred expenses                                         $__________

             (vi)  loans and other advances to stockholders, directors,      $__________
                   officers or employees of Penson Worldwide or its
                   Affiliates

             (vii) all other intangible assets                               $__________

             Line (i) minus the sum of lines (ii) through (vii)              $__________

         (f) Is Tangible Net Worth greater than Line (c)?                    Yes__ No__

         (g) Borrower is in compliance with the covenant                     Yes__ No__
</TABLE>

SCHEDULE TO COMPLIANCE CERTIFICATE - Page 4
<PAGE>

            ELEVENTH AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT

         This Eleventh Amendment to Amended and Restated Loan Agreement (this
"Amendment" is dated as of March 24, 2005 by and between SAI HOLDINGS, INC.,
formerly known as SERVICE ASSET INVESTMENTS, INC., a Texas corporation
("Borrower"), and GUARANTY BANK, a federal savings bank ("Bank").

                                    RECITALS:

         A. Borrower and Bank have entered into that certain Amended and
Restated Loan Agreement dated as of April 30, 2001 (as the same has been or may
be amended, restated, modified or supplemented, the "Agreement"), pursuant to
which Bank agreed to extend credit to Borrower in the form of a term loan under
the terms and provisions stated therein.

         B. Borrower has requested Bank to amend certain provisions of the
Agreement, to consent to advance an additional $10,000,000 under the Term Loan,
which Bank is willing to do pursuant to the terms and conditions hereinafter
provided.

         C. Borrower and Bank now desire to amend the Agreement as herein set
forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1 Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the same meaning as in the
Agreement, as amended hereby.

                                   ARTICLE II

                            AMENDMENTS TO AGREEMENT

         Section 2.1 Amendment to Recitals. The reference to the amount
"$24,266,192.00" in the second paragraph in the Recitals section of the
Agreement is hereby modified to the amount "$32,244,099.00."

         Section 2.2 Modification of Definitions. Effective as of the date
hereof, the definition of the following defined term is hereby amended to read
as follows:

                  "Term Loan Commitment" means the obligation of Bank to make
         the Term Loan pursuant to Section 2.1 in an aggregate principal amount
         up to but not exceeding $32,244,099.00.

<PAGE>

         Section 2.3 Amendment of Section 2.3. Effective as of the date hereof,
Section 2.3 is hereby amended in its entirety and shall read as follows:

                  Section 2.3 Repayment of Term Loan. Borrower shall repay the
         unpaid principal amount of the Term Loan in monthly installments of
         $537,400.15, commencing on April 1, 2005 and continuing on each Monthly
         Payment Date, with a final installment in the amount of all outstanding
         principal of the Term Loan payable on the Maturity Date.

         Section 2.4 Addition of Section 2.8. Effective as of the date hereof,
Section 2.8 is hereby added to the Agreement and shall read as follows:

                  Section 2.8 Commitment Fee. A Commitment Fee in the amount of
         $50,000.00 shall be due and payable on March 24, 2005.

         Section 2.5 Amendment of Section 10.4. Effective as of the date hereof,
Section 10.4 is hereby amended in its entirety and shall read as follows:

                  Section 10.4 Loans and Investments. Borrower will not permit
         any of the following:

                           (a) Penson Worldwide's advance, loan, extension of
         credit or capital contribution to or investment (i) in Worldwide in
         excess of $10,000,000 and (ii) in Worldwide and Canada in the aggregate
         in excess of $15,000,000 (including clause (i) hereof); provided,
         however, that (x) no such advances to Canada may result from the
         proceeds of the Term Loan, (y) no more than $5,000,000 of any advances
         to Worldwide may result from the proceeds of the Capital Investment,
         and (z) no more than $4,000,000 advanced to Worldwide may result from
         the proceeds of the Term Loan.

                                  ARTICLE III

                       ADDITIONAL ADVANCE UNDER TERM LOAN

         Section 3.1 Additional Advance. Upon the effectiveness of this
Agreement, the amount of $10,000,000 shall be advanced to the Borrower under the
Term Loan pursuant to the modification to the Term Loan Commitment set forth in
this Amendment.

                                   ARTICLE IV

         ACKNOWLEDGEMENT AND CLARIFICATION OF SUBSIDIARY MODIFICATIONS

         Section 4.1 Subsidiary Modifications. The parties hereto acknowledge
the following modifications that have occurred since November 1, 2004: (a) Nexa
Technologies, Inc. was merged into Integrated Trading Solutions, Inc., and
Integrated Trading Solutions, Inc. has changed its name to Nexa Technologies,
Inc., a Delaware corporation and (b) Penson Financial Services Venture, Inc.
(sometimes referred to as Penson Ventures, Inc.) was formerly named 3812359
CANADA, Inc.

                                       2
<PAGE>

                                    ARTICLE V

                              CONDITIONS PRECEDENT

         Section 5.1 Conditions. The effectiveness of this Amendment is subject
to the satisfaction of the following conditions precedent:

                  (a) Bank shall have received all of the following, each dated
         (unless otherwise indicated) the date of this Amendment, in form and
         substance satisfactory to Bank:

                           (1) Amendment. This Amendment, duly executed by
                  Borrower,

                           (2) Commitment Fee. The fee required by Section 2.8
                  of the Agreement;

                           (3) Attorneys' Fees and Expenses. Payment of all
                  outstanding attorneys' fees and expenses incurred by Bank in
                  connection with the Agreement, as amended; and

                           (4) Additional Information. Such additional
                  documents, instruments and information as Bank or its legal
                  counsel, Winstead Sechrest & Minick P.C., may reasonably
                  request.

                  (b) The representations and warranties contained herein and in
all other Loan Documents, as amended hereby, shall be true and correct as of the
date hereof as if made on the date hereof, except to the extent disclosed on
Schedules delivered as of the date of this Amendment.

                  (c) No Event of Default shall have occurred and be continuing
and no event or condition shall have occurred that with the giving of notice or
lapse of time or both would be an Event of Default.

                  (d) All corporate proceedings taken in connection with the
transactions contemplated by this Amendment and all documents, instruments, and
other legal matters incident thereto shall be satisfactory to Bank and its legal
counsel, Winstead Sechrest & Minick P.C.

                                   ARTICLE VI

                                 MISCELLANEOUS

         Section 6.1 Representations and Warranties. Borrower hereby represents
and warrants to Bank that (a) the execution, delivery and performance of this
Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrower and will not violate the articles of incorporation or
bylaws of Borrower, (b) the representations and warranties contained in the

                                        3
<PAGE>

Agreement, as amended hereby, and any other Loan Document are true and correct
on and as of the date hereof as though made on and as of the date hereof, (c) no
Event of Default has occurred and is continuing and no event or condition has
occurred that with the giving of notice or lapse of time or both would be an
Event of Default, and (d) Borrower is in full compliance with all covenants and
agreements contained in the Agreement as amended hereby.

         Section 6.2 Ratifications. Except as expressly modified and superseded
by this Amendment, the terms and provisions of the Agreement and the other Loan
Documents are ratified and confirmed and shall continue in full force and
effect. The representations and warranties contained herein and in all other
Loan Documents, as amended hereby, shall be true and correct as of, and as if
made on, the date hereof. Borrower and Bank agree that the Agreement as amended
hereby shall continue to be legal, valid, binding and enforceable in accordance
with its respective terms.

         Section 6.3 Reference to the Agreement. Each of the Loan Documents,
including the Agreement and any and all other agreements, documents or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Agreement as amended hereby, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement as amended hereby.

         Section 6.4 Expenses of Bank. As provided for in the Agreement,
Borrower agrees to pay on demand all reasonable costs and expenses incurred by
Bank in connection with the preparation, negotiation, execution of this
Amendment, and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications and supplements thereto including, without limitation,
the reasonable costs and fees of Bank's legal counsel, and all reasonable costs
and expenses incurred by Bank in connection with the enforcement or preservation
of any rights under the Agreement, as amended hereby, or any other Loan
Documents.

         Section 6.5 Severability. Any provisions of this Amendment held by
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provisions so held to be invalid or unenforceable.

         Section 6.6 Applicable Law. This Amendment and all other Loan Documents
executed pursuant hereto shall be governed by and construed in accordance with
the laws of the State of Texas.

         Section 6.7 Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of Bank and Borrower and their respective successors
and assigns.

         Section 6.8 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original
but all of which when taken together shall constitute one and the same
instrument.

         Section 6.9 Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

                                        4
<PAGE>

         SECTION 6.10 NO ORAL AGREEMENTS. THIS AMENDMENT AND ALL OTHER
INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION
HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

      [Remainder of Page Intentionally Left Blank; Signature Page Follows]

                                        5
<PAGE>

EXECUTED as of the day and year first above written.

                                          BORROWER:

                                          SAI HOLDINGS, INC., formerly known as
                                          SERVICE ASSET INVESTMENTS, INC.

                                          By: /s/ Roger J. Engemoen, Jr.
                                              --------------------------
                                          Name: Roger J. Engemoen, Jr.
                                          Title: Chairman

                                          BANK;

                                          GUARANTY BANK

                                          By: /s/ Coswell O. Robinson, Jr.
                                              ----------------------------
                                          Name: Coswell O. Robinson, Jr.
                                          Title: Senior Vice President

                                 Signature Page
                   Eleventh Amendment to Amended and Restated
                                 Loan Agreement

<PAGE>

                     REAFFIRMATION OF AMENDED AND RESTATED
                                   GUARANTIES

         Each of the undersigned hereby (i) consents to the execution and
delivery of the Amendment to which this Reaffirmation of Amended and Restated
Guaranties is attached (the "Amendment") by the parties thereto, (ii) agrees
that the Amendment shall not limit or diminish the obligations of each of the
undersigned under certain Fifth Amended and Restated Guaranties (Limited) dated
as of December 31, 2002 (each, a "Guaranty"), executed or joined in by each of
the undersigned and delivered to the Bank, (iii) reaffirms its obligations under
its respective Guaranty, and (iv) agrees that its Guaranty remains in full force
and effect, as limited by the terms of such Guaranty, and is hereby ratified and
confirmed.

Dated as of March ______, 2005.

                                          GUARANTORS:

                                          /s/ William D. Gross
                                          --------------------
                                          William D. Gross

                                          /s/ Daniel P. Son
                                          -------------------
                                          Daniel P. Son

                                          /s/ Philip A. Pendergraft
                                          --------------------------
                                          Philip A. Pendergraft

                                          _______________________
                                          Roger J. Engemoen, Jr.

<PAGE>

                     REAFFIRMATION OF AMENDED AND RESTATED
                                   GUARANTIES

         Each of the undersigned hereby (i) consents to the execution and
delivery of the Amendment to which this Reaffirmation of Amended and Restated
Guaranties is attached (the "Amendment") by the parties thereto, (ii) agrees
that the Amendment shall not limit or diminish the obligations of each of the
undersigned under certain Fifth Amended and Restated Guaranties (Limited) dated
as of December 31, 2002 (each, a "Guaranty"), executed or joined in by each of
the undersigned and delivered to the Bank, (iii) reaffirms its obligations under
its respective Guaranty, and (iv) agrees that its Guaranty remains in full force
and effect, as limited by the terms of such Guaranty, and is hereby ratified and
confirmed.

Dated as of March 24, 2005.

                                          GUARANTORS:

                                          ______________________________________
                                          William D. Gross

                                          ______________________________________
                                          Daniel P. Son

                                          ______________________________________
                                          Philip A. Pendergraft

                                          /s/ Roger J. Engemoen, Jr.
                                          --------------------------------------
                                          Roger J. Engemoen, Jr.
<PAGE>

            TWELFTH AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT

         This Twelfth Amendment to Amended and Restated Loan Agreement (this
"Amendment") is dated as of May 6, 2005 by and between SAI HOLDINGS, INC.,
formerly known as SERVICE ASSET INVESTMENTS, INC., a Texas corporation
("Borrower"), and GUARANTY BANK, a federal savings bank ("Bank").

                                    RECITALS:

         A. Borrower and Bank have entered into that certain Amended and
Restated Loan Agreement dated as of April 30, 2001 (as the same has been or may
be amended, restated, modified or supplemented from time to time, the
"Agreement"), pursuant to which Bank agreed to extend credit to Borrower in the
form of a term loan under the terms and provisions stated therein.

         B. Borrower has requested that Bank amend certain provisions of the
Agreement to consent to the acquisition of Computer Clearing Services, Inc., a
Delaware corporation by Borrower, which Bank is willing to do pursuant to the
terms and conditions hereinafter provided.

         C. Borrower and Bank now desire to amend the Agreement as herein set
forth.

         NOW, THEREFORE, in consideration of the premises herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1 Definitions. Capitalized terms used in this Amendment, to
the extent not otherwise defined herein, shall have the same meaning as in the
Agreement, as amended hereby.

                                   ARTICLE II

                            AMENDMENTS TO AGREEMENT

         Section 2.1 Addition of Definitions. Effective as of the date hereof,
the following definitions are hereby added to the Agreement in alphabetical
order to read as follows:

                  "CCS" means Computer Clearing Services, Inc., a Delaware
         corporation.

                  "CCS Acquisition" means the acquisition of CCS by Borrower on
         terms and conditions substantially the same as those contained in the
         Stock Purchase Agreement attached hereto as Exhibit D.

<PAGE>

         Section 2.2 Addition of Section 9.11. Effective as of the date hereof,
a new Section 9.11 is hereby added to the Agreement immediately after Section
9.10 and shall read as follows:

                  Section 9.11 Dissolution of CCS. No later than October 6,
         2005, Borrower will (a) transition all of CCS's assets and customers to
         Borrower and its Subsidiaries and dissolve CCS or (b) pledge the stock
         of CCS to Bank, all of which contained in clauses (a) and (b) herein
         shall be on terms and conditions satisfactory to Bank.

         Section 2.3 Amendment of Section 10.4. Effective as of the date hereof,
Section 10.4 is hereby amended in its entirety and shall read as follows:

                  Section 10.4 Loans and Investments. Borrower will not permit
         any of the following;

                           (a) The Borrower's or any Subsidiary's advance, loan,
                  extension of credit, or capital contribution to or investment
                  in, or purchase, any stock, bonds, notes, debentures, or other
                  securities of, any Person, other than an existing Subsidiary;
                  provided, however that the Borrower or any Subsidiary shall be
                  permitted to make (i) the CCS Acquisition and (ii) certain
                  other acquisitions otherwise prohibited hereunder that do not
                  exceed $2,000,000 individually or $4,000,000 in the aggregate
                  (which amounts shall not include amounts paid by Borrower in
                  connection with the CCS Acquisition) during any fiscal year;
                  and provided further that any such acquisition set forth in
                  clause (ii) shall be reported to the Bank in writing within 30
                  days of entering into a binding agreement for such acquisition
                  along with a certification that no Default or Event of Default
                  exists or shall be caused by such acquisition.

                           (b) The Borrower or any Subsidiary's advance, loan,
                  extension of credit, or capital contribution to or investment
                  in Penson Worldwide, except as may be required for (i) making
                  payments under the terms of the Debt permitted under Section
                  10.18 of this Agreement or (ii) for the payment of expenses
                  that arise in the ordinary course of business; provided,
                  however, that no such contribution or investment in Penson
                  Worldwide shall (x) cause a breach of Section XI of this
                  Agreement or (y) shall be made if there is an Event of Default
                  under Section XI of this Agreement.

                           (c) Either Nexa or SAMCO BD LLC's advance, loan,
                  extension of credit, or capital contribution to or investment
                  in Penson Worldwide other than in the ordinary course of
                  business to support and facilitate technology infrastructure
                  and sales.

                                        2
<PAGE>

                           (d) Penson Worldwide's advance, loan, extension of
                  credit or capital contribution to or investment (i) in
                  Worldwide in excess of $10,000,000 and (ii) in Worldwide and
                  Canada in the aggregate in excess of $15,000,000 (including
                  clause (i) hereof); provided, however, that (x) no such
                  advances to Canada may result form the proceeds of the Term
                  Loan, (y) no more than $5,000,000 of any advances to Worldwide
                  may result from the proceeds of the Capital Investment, and
                  (z) no more than $4,000,000 advanced to Worldwide may result
                  from the proceeds of the Term Loan.

         Notwithstanding anything to the contrary contained in this Section
         10.4, the Borrower shall be permitted to repurchase stock in the
         Borrower from any employee of the Borrower upon such employee's
         termination of employment; provided that such stock repurchases shall
         be (i) in a maximum aggregate amount of $1,000,000 and (ii) at a price
         per share not in excess of such price that the Borrower would offer to
         purchasers of stock of the Borrower at the time of the repurchase. In
         addition, nothing contained in this Agreement shall prohibit the Nexa
         Investment or the Keefe Investment.

         Section 2.4 Addition of Exhibit D. Effective as of the date hereof, all
references in the Agreement to "Exhibit D" shall be deemed to refer to the
Exhibit D attached hereto as Annex I.

                                   ARTICLE III

                              CONDITIONS PRECEDENT

         Section 3.1 Conditions. The effectiveness of this Amendment is subject
to the satisfaction of the following conditions precedent:

                  (a) Bank shall have received all of the following, each dated
         (unless otherwise indicated) the date of this Amendment, in form and
         substance satisfactory to Bank:

                           (1) Amendment. This Amendment, duly executed by
                  Borrower and ratified by the Guarantors;

                           (2) Attorneys' Fees and Expenses. Payment of all
                  outstanding attorneys' fees and expenses incurred by Bank in
                  connection with the Agreement, as amended; and

                           (3) Additional Information. Such additional
                  documents, instruments and information as Bank or its legal
                  counsel, Winstead Sechrest & Minick P.C., may reasonably
                  request.

                  (b) The representations and warranties contained herein and in
         all other Loan Documents, as amended hereby, shall be true and correct
         as of the date hereof as if made

                                        3
<PAGE>

         on the date hereof, except to the extent disclosed on Schedules
         delivered as of the date of this Amendment.

                  (c) No Event of Default shall have occurred and be continuing
         and no event or condition shall have occurred that with the giving of
         notice or lapse of time or both would be an Event of Default.

                  (d) All corporate proceedings taken in connection with the
         transactions contemplated by this Amendment and all documents,
         instruments, and other legal matters incident thereto shall be
         satisfactory to Bank and its legal counsel, Winstead Sechrest & Minick
         P.C.

                                   ARTICLE IV

                                  MISCELLANEOUS

         Section 4.1 Representations and Warranties. Borrower hereby represents
and warrants to Bank that (a) the execution, delivery and performance of this
Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on
the part of Borrower and will not violate the articles of incorporation or
bylaws of Borrower, (b) the representations and warranties contained in the
Agreement, as amended hereby, and any other Loan Document are true and correct
on and as of the date hereof as though made on and as of the date hereof, (c) no
Event of Default has occurred and is continuing and no event or condition has
occurred that with the giving of notice or lapse of time or both would be an
Event of Default, and (d) Borrower is in full compliance with all covenants and
agreements contained in the Agreement as amended hereby.

         Section 4.2 Ratifications. Except as expressly modified and superseded
by this Amendment, the terms and provisions of the Agreement and the other Loan
Documents are ratified and confirmed and shall continue in full force and
effect. The representations and warranties contained herein and in all other
Loan Documents, as amended hereby, shall be true and correct as of, and as if
made on, the date hereof. Borrower and Bank agree that the Agreement as amended
hereby shall continue to be legal, valid, binding and enforceable in accordance
with its respective terms.

         Section 4.3 Reference to the Agreement. Each of the Loan Documents,
including the Agreement and any and all other agreements, documents or
instruments now or hereafter executed and delivered pursuant to the terms hereof
or pursuant to the terms of the Agreement as amended hereby, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement as amended hereby.

         Section 4.4 Expenses of Bank. As provided for in the Agreement,
Borrower agrees to pay on demand all reasonable costs and expenses incurred by
Bank in connection with the preparation, negotiation, execution of this
Amendment, and the other Loan Documents executed pursuant hereto and any and all
amendments, modifications and supplements thereto including, without limitation,
the reasonable costs and fees of Bank's legal counsel, and all reasonable costs

                                        4
<PAGE>

and expenses incurred by Bank in connection with the enforcement or preservation
of any rights under the Agreement, as amended hereby, or any other Loan
Documents.

         Section 4.5 Severability. Any provisions of this Amendment held by
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provisions so held to be invalid or unenforceable.

         Section 4.6 Applicable Law. This Amendment and all other Loan Documents
executed pursuant hereto shall be governed by and construed in accordance with
the laws of the State of Texas.

         Section 4.7 Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of Bank and Borrower and their respective successors
and assigns.

         Section 4.8 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original
(including electronic copies) but all of which when taken together shall
constitute one and the same instrument.

         Section 4.9 Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

         Section 4.10 NO ORAL AGREEMENTS. THIS AMENDMENT AND ALL OTHER
INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED IN CONNECTION
HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

      [Remainder of Page Intentionally Left Blank; Signature Page Follows]

                                        5
<PAGE>

EXECUTED as of the day and year first above written.

                                          BORROWER:

                                          SAI HOLDINGS, INC., formerly known as
                                          SERVICE ASSET INVESTMENTS, INC.

                                          By: __________________________________
                                          Name: ________________________________
                                          Title: _______________________________

                                          BANK:

                                          GUARANTY BANK

                                          By:/s/ Coswell O. Robinson, Jr.
                                             ----------------------------
                                          Name: Coswell O. Robinson, Jr.
                                          Title: Senior Vice President

                                 Signature Page
                    Twelfth Amendment to Amended and Restated
                                 Loan Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]