Document:

Prepared by R.R. Donnelley Financial -- FORM OF DEPOSIT AGREEMENT

 Exhibit 4.1 
  
 
 
 PUBLIC STORAGE, INC. 
  
 EQUISERVE TRUST COMPANY, N. A., AS DEPOSITARY 
  
 AND

  
 THE HOLDERS FROM TIME TO TIME OF 
 THE DEPOSITARY RECEIPTS DESCRIBED HEREIN 
 RELATING TO SERIES V PREFERRED STOCK 
  

 
 DEPOSIT AGREEMENT 
  
 
 
 Dated as of September 30, 2002 
  
 

 TABLE OF CONTENTS 
 
	 Page
 

 
 
ARTICLE I 
  
 Definitions 
  
 
ARTICLE II 
  
 Form of Receipts, Deposit of Stock, 
 Execution and Delivery, Transfer, 
 Surrender and Redemption of Receipts 
  
 
	 SECTION 2.1   Form and Transfer of Receipts
 	  	 2
 
	 SECTION 2.2   Deposit of Stock; Execution and Delivery of Receipts in Respect Thereof

	  	 4
 
	 SECTION 2.3   Registration of Transfer of Receipts
 	  	 4
 
	 SECTION 2.4   Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of
Stock
 	  	 4
 
	 SECTION 2.5   Limitations on Execution and Delivery, Transfer, Surrender and Exchange of
Receipts
 	  	 6
 
	 SECTION 2.6   Lost Receipts, etc.
 	  	 6
 
	 SECTION 2.7   Cancellation and Destruction of Surrendered Receipts
 	  	 6
 
	 SECTION 2.8   Redemption of Stock
 	  	 6
 

 
  
 
ARTICLE III 
  
 Certain Obligations of 
 Holders of Receipts and the Company 
  
 
	 SECTION 3.1   Filing Proofs, Certificates and Other Information
 	  	 8
 
	 SECTION 3.2   Payment of Taxes or Other Governmental Charges
 	  	 8
 
	 SECTION 3.3   Warranty as to Stock
 	  	 9
 

 
  
 
ARTICLE IV 
  
 The Deposited Securities; Notices 
  
 
	 SECTION 4.1   Cash Distributions
 	  	 9
 
	 SECTION 4.2   Distributions Other than Cash, Rights Preferences or Privileges
 	  	 9
 
	 SECTION 4.3   Subscription Rights, Preferences or Privileges
 	  	 10
 

 
 

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	 SECTION 4.4   Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts
 	  	 11
 
	 SECTION 4.5   Voting Rights
 	  	 11
 
	 SECTION 4.6   Changes Affecting Deposited Securities and Reclassifications, Recapitalizations,
etc.
 	  	 12
 
	 SECTION 4.7   Delivery of Reports
 	  	 12
 
	 SECTION 4.8   List of Receipt Holders
 	  	 12
 

 
  
 
ARTICLE V 
  
 The Depositary, the Depositary’s 
 Agents, the Registrar and the Company 
  
 
	 SECTION 5.1   Maintenance of Offices, Agencies and Transfer Books by the Depositary;
Registrar
 	  	 13
 
	 SECTION 5.2   Prevention of or Delay in Performance by the Depositary,
the Depositary’s Agents, the Registrar or the
 	  	  
	 Company
 	  	 14
 
	 SECTION 5.3   Obligation of the Depositary, the Depositary’s Agents, the Registrar and the
Company
 	  	 14
 
	 SECTION 5.4   Resignation and Removal of the Depositary; Appointment of Successor
Depositary
 	  	 16
 
	 SECTION 5.5   Corporate Notices and Reports
 	  	 17
 
	 SECTION 5.6   Indemnification by the Company
 	  	 17
 
	 SECTION 5.7   Charges and Expenses
 	  	 17
 
	 SECTION 5.8   Tax Compliance
 	  	 17
 

 
  
 
ARTICLE VI 
  
 Amendment and Termination 
  

	 SECTION 6.1   Amendment
 	  	 18
 
	 SECTION 6.2   Termination
 	  	 18
 

 
  
 
ARTICLE VII 
  
 Miscellaneous 
  
 
	 SECTION 7.1   Counterprts
 	  	 19
 
	 SECTION 7.2   Exclusive Benefit of Parties
 	  	 19
 
	 SECTION 7.3   Invalidity of Provisions
 	  	 19
 
	 SECTION 7.4   Notices
 	  	 19
 

 
 

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	 SECTION 7.5   Appointment of Registrar
 	  	 20
 
	 SECTION 7.6   Holders of Receipts are Parties
 	  	 20
 
	 SECTION 7.7   Governing Law
 	  	 20
 
	 SECTION 7.8   Inspection of Deposit Agreement
 	  	 20
 
	 SECTION 7.9   Headings
 	  	 20
 

 
  
 Form of Depositary Shares 
  
 
	 Form of Face of
Receipt                                      
                      
 	    	 A-1
 
	 Form of Reverse of Receipt
 	    	 A-3
 

 
 

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 DEPOSIT AGREEMENT, dated as of September 30, 2002, among PUBLIC STORAGE, INC., a California corporation (the
“Company”), EquiServe Trust Company, N. A., a national banking association (the “Depositary”), and the holders from time to time of the Receipts described herein. 
  
 WHEREAS, it is desired to provide, as hereinafter set forth in this Deposit Agreement, for the deposit of shares of Series V Preferred Stock of the Company with the
Depositary for the purposes set forth in this Deposit Agreement and for the issuance hereunder of Receipts evidencing Depositary Shares in respect of the Stock so deposited; and 
  
 WHEREAS, the Receipts are to be substantially in the form of Exhibit A annexed hereto, with appropriate insertions, modifications and omissions, as hereinafter provided in
this Deposit Agreement; 
  
 NOW, THEREFORE, in consideration of the promises contained herein, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 
ARTICLE I 
  
 Definitions 
  
 The following definitions shall, for all purposes, unless otherwise indicated, apply to the respective terms used in this Deposit Agreement: 
  
 “Certificate” shall mean the Certificate of Determination filed with the Secretary of State of the State of California
establishing the Stock as a series of preferred stock of the Company. 
  
 “Deposit Agreement” shall mean
this Deposit Agreement, as amended or supplemented from time to time. 
  
 “Depositary” shall mean EquiServe
Trust Company, N. A. and any successor as Depositary hereunder. 
  
 “Depositary Shares” shall mean
Depositary Shares, each representing 1/1,000 of a share of Stock and evidenced by a Receipt. 
  
 “Depositary’s Agent” shall mean an agent appointed by the Depositary pursuant to Section 5.1 and shall include the Registrar if such Registrar is not the Depositary. 
 

 “Depositary’s Office” shall mean the principal office of the Depositary at which at any particular time
its depositary receipt business shall be administered. 
  
 “Receipt” shall mean one of the Depositary
Receipts, substantially in the form set forth as Exhibit A hereto, issued hereunder, whether in definitive or temporary form and evidencing the number of Depositary Shares held of record by the record holder of such Depositary Shares. 

 
 “record holder” or “holder” as applied to a Receipt shall mean the person in whose name a Receipt is
registered on the books of the Depositary maintained for such purpose. 
  
 “Registrar” shall mean the
Depositary or such other bank or trust company which shall be appointed to register ownership and transfers of Receipts as herein provided. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
  
 “Stock” shall mean shares of the Company’s 7.500% Cumulative Preferred Stock, Series V, $.01 par value per share. 
  
 
ARTICLE II 
  
 Form of Receipts, Deposit of Stock, 
 Execution and Delivery, Transfer, 
 Surrender and Redemption of Receipts 
  
 SECTION 2.1 Form and Transfer of Receipts. Definitive Receipts shall be engraved or printed or lithographed on steel-engraved
borders, with appropriate insertions, modifications and omissions, as hereinafter provided, if and to the extent required by any securities exchange on which the Receipts are listed. Pending the preparation of definitive Receipts or if definitive
Receipts are not required by any securities exchange on which the Receipts are listed, the Depositary, upon the written order of the Company or any holder of Stock, as the case may be, delivered in compliance with Section 2.2, shall execute and
deliver temporary Receipts which are printed, lithographed, typewritten, mimeographed or otherwise substantially of the tenor of the definitive Receipts in lieu of which they are issued and with such appropriate insertions, omissions, substitutions
and other variations as the persons executing such Receipts may determine, as evidenced by their execution of such Receipts. If temporary Receipts are issued, the Company and the Depositary will cause definitive Receipts to be prepared without
unreasonable delay. After the preparation of definitive Receipts, the temporary Receipts shall be exchangeable for definitive Receipts upon surrender of the temporary Receipts at the 
 

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 Depositary’s Office or at such other place or places as the Depositary shall determine, without charge to the holder. Upon surrender for
cancellation of any one or more temporary Receipts, the Depositary shall execute and deliver in exchange therefor definitive Receipts representing the same number of Depositary Shares as represented by the surrendered temporary Receipt or Receipts.
Such exchange shall be made at the Company’s expense and without any charge to the holder therefor. Until so exchanged, the temporary Receipts shall in all respects be entitled to the same benefits under this Agreement, and with respect to the
Stock, as definitive Receipts. 
  
 Receipts shall be executed by the Depositary by the manual and/or facsimile
signature of a duly authorized officer of the Depositary. No Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose unless it shall have been executed in accordance with the foregoing
sentence. The Depositary shall record on its books each Receipt so signed and delivered as hereinafter provided. 
  
 Receipts shall be in denominations of any number of whole Depositary Shares. The Company shall deliver to the Depositary from time to time such quantities of Receipts as the Depositary may request to enable the Depositary to perform
its obligations under this Deposit Agreement. 
  
 Receipts may be endorsed with or have incorporated in the text
thereof such legends or recitals or changes not inconsistent with the provisions of this Deposit Agreement as may be required by the Depositary or required to comply with any applicable law or any regulation thereunder or with the rules and
regulations of any securities exchange upon which the Stock, the Depositary Shares or the Receipts may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular
Receipts are subject. 
  
 Title to Depositary Shares evidenced by a Receipt, which is properly endorsed or
accompanied by a properly executed instrument of transfer, shall be transferable by delivery with the same effect as in the case of a negotiable instrument; provided, however, that until transfer of a Receipt shall be registered on the
books of the Depositary as provided in Section 2.3, the Depositary may, notwithstanding any notice to the contrary, treat the record holder thereof at such time as the absolute owner thereof for the purpose of determining the person entitled to
distributions of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes. 
  
 SECTION 2.2 Deposit of Stock; Execution and Delivery of Receipts in Respect Thereof. Subject to the terms and conditions of this Deposit Agreement, the Company or, subject to Section 2.4, any holder of Stock may from
time to time deposit shares of Stock under this Deposit Agreement by delivery to the Depositary of a certificate or certificates for the Stock 
 

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 to be deposited, properly endorsed or accompanied, if required by the Depositary, by a duly executed instrument of transfer or endorsement, in
form satisfactory to the Depositary, together with all such certifications as may be required by the Depositary in accordance with the provisions of this Deposit Agreement, and together with a written order of the Company or such holder, as the case
may be, directing the Depositary to execute and deliver to, or upon the written order of, the person or persons stated in such order a Receipt or Receipts for the number of Depositary Shares representing such deposited Stock. 

 
 Deposited Stock shall be held by the Depositary at the Depositary’s Office or at such other place or places as the
Depositary shall determine. 
  
 Upon receipt by the Depositary of a certificate or certificates for Stock deposited
in accordance with the provisions of this Section, together with the other documents required as above specified, and upon recordation of the Stock on the books of the Company in the name of the Depositary or its nominee, the Depositary, subject to
the terms and conditions of this Deposit Agreement, shall execute and deliver, to or upon the order of the person or persons named in the written order delivered to the Depositary referred to in the first paragraph of this Section, a Receipt or
Receipts for the whole number of Depositary Shares representing, in the aggregate, the Stock so deposited and registered in such name or names as may be requested by such person or persons. The Depositary shall execute and deliver such Receipt or
Receipts at the Depositary’s Office or such other offices, if any, as the Depositary may designate. Delivery at other offices shall be at the risk and expense of the person requesting such delivery. 
  
 SECTION 2.3 Registration of Transfer of Receipts. Subject to the terms and conditions of this Deposit Agreement, the Depositary
shall register on its books from time to time transfers of Receipts upon any surrender thereof by the holder in person or by a duly authorized attorney, properly endorsed or accompanied by a properly executed instrument of transfer. Thereupon, the
Depositary shall execute a new Receipt or Receipts evidencing the same aggregate number of Depositary Shares as those evidenced by the Receipt or Receipts surrendered and deliver such new Receipt or Receipts to or upon the order of the person
entitled thereto. 
  
 SECTION 2.4 Split-ups and Combinations of Receipts; Surrender of Receipts and Withdrawal of
Stock. Upon surrender of a Receipt or Receipts at the Depositary’s Office or at such other offices as it may designate for the purpose of effecting a split-up or combination of such Receipt or Receipts, and subject to the terms and
conditions of this Deposit Agreement, the Depositary shall execute and deliver a new Receipt or Receipts in the authorized denomination or denominations requested, evidencing the aggregate number of Depositary Shares evidenced by the Receipt or
Receipts surrendered; provided, however, that the Depositary shall not issue any Receipt evidencing a fractional Depositary Share. 
 

 4 

 Any holder of a Receipt or Receipts representing any number of whole shares of Stock may (unless the related Depositary
Shares have previously been called for redemption) withdraw the Stock and all money and other property, if any, represented thereby by surrendering such Receipt or Receipts at the Depositary’s Office or at such other offices as the Depositary
may designate for such withdrawals and paying any unpaid amount due the Depositary. Thereafter, without unreasonable delay, the Depositary shall deliver to such holder or to the person or persons designated by such holder as hereinafter provided,
the number of whole shares of Stock and all money and other property, if any, represented by the Receipt or Receipts so surrendered for withdrawal, but holders of such whole shares of Stock will not thereafter be entitled to deposit such Stock
hereunder or to receive Depositary Shares therefor. If a Receipt delivered by the holder to the Depositary in connection with such withdrawal shall evidence a number of Depositary Shares in excess of the number of Depositary Shares representing the
number of whole shares of Stock to be so withdrawn, the Depositary shall at the same time, in addition to such number of whole shares of Stock and such money and other property, if any, to be so withdrawn, deliver to such holder, or upon his order,
a new Receipt evidencing such excess number of Depositary Shares, provided, however, that the Depositary shall not issue any Receipt evidencing a fractional Depositary Share. Delivery of the Stock and money and other property being
withdrawn may be made by the delivery of such certificates, documents of title and other instruments as the Depositary may deem appropriate which, if required by the Depositary, shall be properly endorsed or accompanied by proper instruments of
transfer. 
  
 If the Stock and the money and other property being withdrawn are to be delivered to a person or
persons other than the record holder of the Receipt or Receipts being surrendered for withdrawal of Stock, such holders shall execute and deliver to the Depositary a written order so directing the Depositary and the Depositary may require that the
Receipt or Receipts surrendered by such holder for withdrawal of such shares of Stock be properly endorsed in blank or accompanied by a properly executed instrument of transfer in blank. 
  
 Delivery of the Stock and the money and other property, if any, represented by Receipts surrendered for withdrawal shall be made by the Depositary at the Depositary’s
Office, except that, at the request, risk and expense of the holder surrendering such Receipt or Receipts and for the account of the holder thereof, such delivery may be made at such other place as may be designated by such holder. 

 
 SECTION 2.5 Limitations on Execution and Delivery, Transfer, Surrender and Exchange of Receipts. As a condition
precedent to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of any Receipt, the Depositary, any of the Depositary’s Agents or the Company may require payment to it of a sum sufficient for the
payment (or, in the event that the Depositary or the Company shall have made such payment, 
 

 5 

 the reimbursement to it) of any charges or expenses payable by the holder of a Receipt pursuant to Sections 3.2 and 5.7, may require the
production of evidence satisfactory to it as to the identity and genuineness of any signature, and may also require compliance with such regulations, if any, as the Depositary or the Company may establish consistent with the provisions of this
Deposit Agreement. 
  
 The deposit of Stock may be refused, the delivery of Receipts against Stock may be suspended,
the registration of transfer of Receipts may be refused and the registration of transfer, surrender or exchange of outstanding Receipts may be suspended (i) during any period when the register of stockholders of the Company is closed, or (ii) if any
such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or the Company at any time or from time to time because of any requirement of law or of any government or governmental body or commission or under
any provision of this Deposit Agreement. 
  
 SECTION 2.6 Lost Receipts, etc. In case any receipt shall be
mutilated, destroyed, lost or stolen, the Depositary in its reasonable discretion may execute and deliver a Receipt of like form and tenor in exchange and substitution for such mutilated Receipt, or in lieu of and in substitution for such destroyed,
lost or stolen Receipt, upon (i) the filing by the holder thereof with the Depositary of evidence reasonably satisfactory to the Depositary of such destruction or loss or theft of such Receipt, of the authenticity thereof and of his or her ownership
thereof, (ii) the furnishing of the Depositary with indemnification reasonably satisfactory to it and the Company and (iii) the payment of any reasonable expense (including reasonable fees, charges and expenses of the Depositary) in connection with
such execution and delivery. 
  
 SECTION 2.7 Cancellation and Destruction of Surrendered Receipts. All
Receipts surrendered to the Depositary or any Depositary’s Agent shall be cancelled by the Depositary. Except as prohibited by applicable law or regulation, the Company is authorized to destroy all Receipts so cancelled. 

 
 SECTION 2.8 Redemption of Stock. Whenever the Company shall be permitted and shall elect to redeem shares of Stock in
accordance with the provisions of the Certificate, it shall (unless otherwise agreed to in writing with the Depositary) give or cause to be given to the Depositary not less than 60 days’ notice of the date of such proposed redemption or
exchange of Stock and of the number of such shares held by the Depositary to be so redeemed and the applicable redemption price, as set forth in the Certificate, which notice shall be accompanied by a certificate from the Company stating that such
redemption of Stock is in accordance with the provisions of the Certificate. Notice of redemption of Stock will also be given by the Company by publication in a newspaper of general circulation in the County of Los Angeles and the City of New York,
such publication to be made once a week for two successive 
 

 6 

 weeks commencing not less than 30 nor more than 60 days prior to the redemption date, and the Depositary will publish a notice of redemption of
the Depositary Shares containing the same type of information and in the same manner as the Company’s notice of redemption. On the date of such redemption, provided that the Company shall then have paid or caused to be paid in full to the
Depositary the redemption price of the Stock to be redeemed, plus an amount equal to any accrued and unpaid dividends thereon to the date fixed for redemption, in accordance with the provisions of the Certificate, the Depositary shall redeem the
number of Depositary Shares representing such Stock. The Depositary shall mail notice of the Company’s redemption of Stock and the proposed simultaneous redemption of the number of Depositary Shares representing the Stock to be redeemed by
first-class mail, postage prepaid, not less than 30 and not more than 60 days prior to the date fixed for redemption of such Stock and Depositary Shares (the “Redemption Date”) to the record holders of the Receipts evidencing the
Depositary Shares to be so redeemed, at the address of such holders as they appear on the records of the Depositary; but neither failure to mail any such notice of redemption of Depositary Shares to one or more such holders nor any defect in any
notice of redemption of Depositary Shares to one or more such holders shall affect the sufficiency of the proceedings for redemption as to the other holders. The Company will provide the Depositary with the information necessary for the Depositary
to prepare such notice and each such notice shall state: (i) the Redemption Date; (ii) the number of Depositary Shares to be redeemed and, if less than all the Depositary Shares held by any such holder are to be redeemed, the number of such
Depositary Shares held by such holder to be so redeemed; (iii) the redemption price per Depositary Share; (iv) the place or places where Receipts evidencing Depositary Shares are to be surrendered for payment of the redemption price; and (v) that
dividends in respect of the Stock represented by the Depositary Shares to be redeemed will cease to accrue on such Redemption Date. In case less than all the outstanding Depositary Shares are to be redeemed, the Depositary Shares to be so redeemed
shall be determined pro rata or by lot in a manner determined by the Board of Directors. 
  
 Notice having been
mailed by the Depositary as aforesaid, from and after the Redemption Date (unless the Company shall have failed to provide the funds necessary to redeem the Stock evidenced by the Depositary Shares called for redemption) (i) dividends on the shares
of Stock so called for redemption shall cease to accrue from and after such date, (ii) the Depositary Shares being redeemed from such proceeds shall be deemed no longer to be outstanding, (iii) all rights of the holders of Receipts evidencing such
Depositary Shares (except the right to receive the redemption price) shall, to the extent of such Depositary Shares, cease and terminate, and (iv) upon surrender in accordance with such redemption notice of the Receipts evidencing any such
Depositary Shares called for redemption (properly endorsed or assigned for transfer, if the Depositary or applicable law shall so require), such Depositary Shares shall be redeemed by the Depositary at a redemption price per Depositary Share equal
to the same fraction of the redemption price per share paid with respect to the shares of Stock as the fraction each Depositary Share represents of a share of Stock plus the same fraction of 
 

 7 

 all money and other property, if any, represented by such Depositary Shares, including all amounts paid by the Company in respect of dividends
which on the Redemption Date have accumulated on the shares of Stock to be so redeemed and have not theretofore been paid. Any funds deposited by the Company with the Depositary for any Depositary Shares that the holders thereof fail to redeem will
be returned to the Company after a period of five years from the date such funds are so deposited. 
  
 If fewer than
all of the Depositary Shares evidenced by a Receipt are called for redemption, the Depositary will deliver to the holder of such Receipt upon its surrender to the Depositary, together with the redemption payment, a new Receipt evidencing the
Depositary Shares evidenced by such prior Receipt and not called for redemption, provided, however, that the Depositary shall not issue any Receipt evidencing a fractional Depositary Share. 
  
 
ARTICLE III 
  
 Certain Obligations of 
 Holders of Receipts and the Company 
  
 SECTION 3.1 Filing
Proofs, Certificates and Other Information. Any holder of a Receipt may be required from time to time to file such proof of residence, or other matters or other information, to execute such certificates and to make such representations and
warranties as the Depositary or the Company may reasonably deem necessary or proper or otherwise reasonably request. The Depositary or the Company may withhold the delivery, or delay the registration of transfer, redemption or exchange, of any
Receipt or the withdrawal or conversion of the Stock represented by the Depositary Shares evidenced by any Receipt or the distribution of any dividend or other distribution or the sale of any rights or of the proceeds thereof until such proof or
other information is filed or such certificates are executed or such representations and warranties are made. 
  
 SECTION 3.2 Payment of Taxes or Other Governmental Charges. Holders of Receipts shall be obligated to make payments to the Depositary of certain charges and expenses, as provided in Section 5.7. Registration of transfer of any
Receipt or any withdrawal of Stock and all money or other property, if any, represented by the Depositary Shares evidenced by such Receipt may be refused until any such payment due is made, and any dividends, interest payments or other distributions
may be withheld or any part of or all the Stock or other property represented by the Depositary Shares evidenced by such Receipt and not theretofore sold may be sold for the account of the holder thereof (after attempting by reasonable means to
notify such holder prior to such sale), and such dividends, interest payments or other distributions or 
 

 8 

 the proceeds of any such sale may be applied to any payment of such charges or expenses, the holder of such Receipt remaining liable for any
deficiency. 
  
 SECTION 3.3 Warranty as to Stock. The Company hereby represents and warrants that the Stock,
when issued, will be duly authorized, validly issued, fully paid and nonassessable. Such representation and warranty shall survive the deposit of the Stock and the issuance of Receipts. 
  
 
ARTICLE IV 
  
 The Deposited Securities; Notices 
  
 SECTION 4.1 Cash Distributions. Whenever the Depositary shall receive any cash dividend or other cash distribution on Stock, the
Depositary shall, subject to Sections 3.1 and 3.2, distribute to record holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of such dividend or distribution as are, as nearly as practicable, in proportion to the
respective numbers of Depositary Shares evidenced by the Receipts held by such holders; provided, however, that in case the Company or the Depositary shall be required to withhold and shall withhold from any cash dividend or other cash
distribution in respect of the Stock an amount on account of taxes or as otherwise required by law, regulation or court process, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly.
In the event that the calculation of any such cash dividend or other cash distribution to be paid to any record holder on the aggregate number of Depositary Receipts held by such holder results in an amount which is a fraction of a cent, the amount
the Depositary shall distribute to such record holder shall be rounded to the next highest whole cent if such fraction of a cent is equal to or greater than $.005, otherwise such fractional interest shall be disregarded; and upon request of the
Depositary, the Company shall pay the additional amount to the Depositary for distribution. 
  
 SECTION 4.2
Distributions Other than Cash, Rights, Preferences or Privileges. Whenever the Depositary shall receive any distribution other than cash, rights, preferences or privileges upon Stock, the Depositary shall, subject to Sections 3.1 and 3.2,
distribute to record holders of Receipts on the record date fixed pursuant to Section 4.4 such amounts of the securities or property received by it as are, as nearly as practicable, in proportion to the respective numbers of Depositary Shares
evidenced by the Receipts held by such holders, in any manner that the Depositary may deem equitable and practicable for accomplishing such distribution. If in the opinion of the Depositary such distribution cannot be made proportionately among such
record holders, or if for any other reason (including any requirement that the Company or the Depositary withhold an amount on account of taxes) the Depositary deems such distribution not 
 

 9 

 to be feasible, the Depositary may, with the approval of the Company, adopt such method as it deems equitable and practicable for the purpose of
effecting such distribution, including the sale (at public or private sale) of the securities or property thus received, or any part thereof, at such place or places and upon such terms as it may deem equitable and appropriate. The net proceeds of
any such sale shall, subject to Sections 3.1 and 3.2, be distributed or made available for distribution, as the case may be, by the Depositary to record holders of Receipts as provided by Section 4.1 in the case of a distribution received in cash.

  
 SECTION 4.3 Subscription Rights, Preferences or Privileges. If the Company shall at any time offer or
cause to be offered to the persons in whose names Stock is recorded on the books of the Company any rights, preferences or privileges to subscribe for or to purchase any securities or any rights, preferences or privileges of any other nature, such
rights, preferences or privileges shall in each such instance be made available by the Depositary to the record holders of Receipts in such manner as the Depositary may determine, either by the issue to such record holders of warrants representing
such rights, preferences or privileges or by such other method as may be approved by the Depositary in its discretion with the approval of the Company; provided, however, that (i) if at the time of issue or offer of any such rights,
preferences or privileges the Depositary determines that it is not lawful or (after consultation with the Company) not feasible to make such rights, preferences or privileges available to holders of Receipts by the issue of warrants or otherwise, or
(ii) if and to the extent so instructed by holders of Receipts who do not desire to execute such rights, preferences or privileges, then the Depositary, in its discretion (with approval of the Company, in any case where the Depositary has determined
that it is not feasible to make such rights, preferences or privileges available), may, if applicable laws or the terms of such rights, preferences or privileges permit such transfer, sell such rights, preferences or privileges at public or private
sale, at such place or places and upon such terms as it may deem proper. The net proceeds of any such sale shall, subject to Sections 3.1 and 3.2, be distributed by the Depositary to the record holders of Receipts entitled thereto as provided by
Section 4.1 in the case of a distribution received in cash. 
  
 If registration under the Securities Act of the
securities to which any rights, preferences or privileges relate is required in order for holders of Receipts to be offered or sold the securities to which such rights, preferences or privileges relate, the Company will file promptly a registration
statement pursuant to the Securities Act with respect to such rights, preferences or privileges and securities and use its best efforts and take all steps available to it to cause such registration statement to become effective sufficiently in
advance of the expiration of such rights, preferences or privileges to enable such holders to exercise such rights, preferences or privileges. In no event shall the Depositary make available to the holders of Receipts any right, preference or
privilege to subscribe for or to purchase any securities unless and until it has received written notice from the Company that such registration statement shall have become effective, or that the offering and sale of such securities to such holders
are 
 

 10 

 exempt from registration under the provisions of the Securities Act and the Company shall have provided to the Depositary an opinion of counsel
reasonably satisfactory to the Depositary to such effect. 
  
 If any other action under the laws of any jurisdiction
or any governmental or administrative authorization, consent or permit is required in order for such rights, preferences or privileges to be made available to holders of Receipts, the Company will use its reasonable best efforts to take such action
or obtain such authorization, consent or permit sufficiently in advance of the expiration of such rights, preferences or privileges to enable such holders to exercise such rights, preferences or privileges. 
  
 SECTION 4.4 Notice of Dividends, etc.; Fixing Record Date for Holders of Receipts. Whenever any cash dividend or other cash
distribution shall become payable or any distribution other than cash shall be made, or if rights, preferences or privileges shall at any time be offered, with respect to Stock, or whenever the Depositary shall receive notice of any meeting at which
holders of Stock are entitled to vote or of which holders of Stock are entitled to notice, or whenever the Depositary and the Company shall decide it is appropriate, the Depositary shall in each such instance fix a record date (which shall be the
same date as the record date fixed by the Company with respect to or otherwise in accordance with the terms of the Stock) for the determination of the holders of Receipts who shall be entitled to receive such dividend, distribution, rights,
preferences or privileges or the net proceeds of the sale thereof, or to give instructions for the exercise of voting rights at any such meeting, or who shall be entitled to notice of such meeting or for any other appropriate reasons. 

 
 SECTION 4.5 Voting Rights. Upon receipt of notice of any meeting at which the holders of Stock are entitled to vote, the
Depositary shall, as soon as practicable thereafter, mail to the record holders of Receipts a notice which shall contain (i) such information as is contained in such notice of meeting and (ii) a statement that the holders may, subject to any
applicable restrictions, instruct the Depositary as to the exercise of the voting rights pertaining to the amount of Stock represented by their respective Depositary Shares (including an express indication that instructions may be given to the
Depositary to give a discretionary proxy to a person designated by the Company) and a brief statement as to the manner in which such instructions may be given. Upon the written request of the holders of Receipts on the relevant record date, the
Depositary shall use its best efforts to vote or cause to be voted, in accordance with the instructions set forth in such requests, the maximum number of whole shares of Stock represented by the Depositary Shares evidenced by all Receipts as to
which any particular voting instructions are received. The Company hereby agrees to take all action which may be deemed necessary by the Depositary in order to enable the Depositary to vote such Stock or cause such Stock to be voted. In the absence
of specific instructions from the holder of a Receipt, the Depositary will not vote (but, at its discretion, may appear at any meeting with 
 

 11 

 respect to such Stock unless directed to the contrary by the holders of all the Receipts) to the extent of the Stock represented by the
Depositary Shares evidenced by such Receipt. 
  
 SECTION 4.6 Changes Affecting Deposited Securities and
Reclassifications, Recapitalizations, etc. Upon any change in par value or liquidation preference, split-up, combination or any other reclassification of the Stock, or upon any recapitalization, reorganization, merger or consolidation affecting
the Company or to which it is a party, the Depositary may in its discretion with the approval (not to be unreasonably withheld) of, and shall upon the instructions of, the Company, and (in either case) in such manner as the Depositary may deem
equitable, (i) make such adjustments in the fraction of an interest in one share of Stock represented by one Depositary Share as may be necessary (as certified by the Company) fully to reflect the effects of such change in par value or liquidation
preference, split-up, combination or other reclassification of Stock, or of such recapitalization, reorganization, merger or consolidation and (ii) treat any securities which shall be received by the Depositary in exchange for or upon conversion of
or in respect of the Stock as new deposited securities so received in exchange for or upon conversion or in respect of such Stock. In any such case, the Depositary may in its discretion, with the approval of the Company, execute and deliver
additional Receipts or may call for the surrender of all outstanding Receipts to be exchanged for new Receipts specifically describing such new deposited securities. Anything to the contrary herein notwithstanding, holders of Receipts shall have the
right from and after the effective date of any such change in par value or liquidation preference, split-up, combination or other reclassification of the Stock or any such recapitalization, reorganization, merger or consolidation to surrender such
Receipts to the Depositary with instructions to convert, exchange or surrender the Stock represented thereby only into or for, as the case may be, the kind and amount of shares of stock and other securities and property and cash into which the Stock
represented by such Receipts would have been converted or for which such Stock would have been exchanged or surrendered had such Receipt been surrendered immediately prior to the effective date of such transaction. 
  
 SECTION 4.7 Delivery of Reports. The Depositary shall furnish to holders of Receipts any reports and communications received from
the Company which are received by the Depositary as the holder of Stock. 
  
 SECTION 4.8 List of Receipt
Holders. Promptly upon request from time to time by the Company, the Depositary shall furnish to it a list, as of the most recent practicable date, of the names, addresses and holdings of Depositary Shares of all record holders of Receipts. The
Company shall be entitled to receive such list four times annually without charge. 
 

 12 

  
 ARTI
CLE V 
  
 The Depositary, the Depositary’s 
 Agents, the Registrar and the Company 
  
 SECTION 5.1
Maintenance of Offices, Agencies and Transfer Books by the Depositary; Registrar. Upon execution of this Deposit Agreement, the Depositary shall maintain at the Depositary’s office facilities for the execution and delivery, registration
and registration of transfer, surrender and exchange of Receipts, and at the offices of the Depositary’s Agents, if any, facilities for the delivery, registration of transfer, surrender and exchange of Receipts, all in accordance with the
provisions of this Deposit Agreement. 
  
 The Depositary shall keep books at the Depositary’s Office for the
registration and registration of transfer of Receipts, which books during normal business hours shall be open for inspection by the record holders of Receipts; provided that any such holder requesting to exercise such right shall certify to the
Depositary that such inspection shall be for a proper purpose reasonably related to such person’s interest as an owner of Depositary Shares evidenced by the Receipts. 
  
 The Depositary may close such books, at any time or from time to time, when deemed expedient by it in connection with the performance of its duties hereunder. 

 
 The Depositary may, with the approval of the Company, appoint a Registrar for registration of the Receipts or the Depositary
Shares evidenced thereby. If the Receipts or the Depositary Shares evidenced thereby or the Stock represented by such Depositary Shares shall be listed on one or more national securities exchanges, the Depositary will appoint a Registrar (acceptable
to the Company) for registration of such Receipts or Depositary Shares in accordance with any requirements of such exchange. Such Registrar (which may be the Depositary if so permitted by the requirements of any such exchange) may be removed and a
substitute registrar appointed by the Depositary upon the request or with the approval of the Company. If the Receipts, such Depositary Shares or such Stock are listed on one or more other stock exchanges, the Depositary will, at the request and at
the expense of the Company, arrange such facilities for the delivery, registration, registration of transfer, surrender and exchange of such Receipts, such Depositary Shares or such Stock as may be required by law or applicable securities exchange
regulation. 
  
 The Depositary may from time to time appoint Depositary’s Agents to act in any respect for the
Depositary for the purposes of this Deposit Agreement and may at any time appoint additional Depositary’s Agents and vary or terminate the appointment of such Depositary’s Agents. The Depositary will notify the Company of any such action.

 

 13 

  
 SECTION 5.2 Prevention of or Delay in Performance by the Depositary, the
Depositary’s Agents, the Registrar or the Company. Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall incur any liability to any holder of any Receipt if by reason of any provision of any present
or future law, or regulation thereunder, of the United States of America or of any other governmental authority or, in the case of the Depositary, the Depositary’s Agent or the Registrar, by reason of any provision, present or future, of the
Company’s Articles of Incorporation or by reason of any act of God or war or other circumstance beyond the control of the relevant party, the Depositary, the Depositary’s Agent, the Registrar or the Company shall be prevented, delayed or
forbidden from, or subjected to any penalty on account of, doing or performing any act or thing which the terms of this Deposit Agreement provide shall be done or performed; nor shall the Depositary, any Depositary’s Agent, the Registrar or the
Company incur liability to any holder of a Receipt (i) by reason of any nonperformance or delay, caused as aforesaid, in the performance of any act or thing which the terms of this Deposit Agreement shall provide shall or may be done or performed,
or (ii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement except, in the case of any such exercise or failure to exercise discretion not caused as aforesaid, if caused by the gross negligence
or willful misconduct of the party charged with such exercise or failure to exercise. 
  
 SECTION 5.3 Obligation
of the Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company assumes any obligation or shall be subject to any liability under this
Deposit Agreement or any Receipt to holders of Receipts other than for its gross negligence, willful misconduct or bad faith. 
  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of the Stock, the Depositary
Shares or the Receipts which in its reasonable opinion may involve it in expense or liability unless indemnity reasonably satisfactory to it against expense and liability be furnished as often as may be reasonably required. 
  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be liable for any action or any failure to
act by it in reliance upon the written advice of legal counsel or accountants, or information from any person presenting Stock for deposit, any holder of a Receipt or any other person believed by it in good faith to be competent to give such
information. The Depositary, any Depositary’s Agent, the Registrar and the Company may each rely and shall each be protected in acting upon any written notice, request, direction or other document reasonably believed by it to be genuine and to
have been signed or presented by the proper party or parties. 
 

 14 

  
 The Depositary shall not be responsible for any failure to carry out any
instruction to vote any of the shares of Stock or for the manner or effect of any such vote made, as long as any such action or non-action is in good faith. The Depositary will indemnify the Company and hold it harmless from any loss, liability or
expense (including the reasonable costs and expenses of defending itself) which may arise out of acts performed or omitted by the Depositary, including when such Depositary acts as Registrar, or the Depositary’s Agents in connection with this
Agreement due to its or their gross negligence, willful misconduct or bad faith. The indemnification obligations of the Depositary set forth in this Section 5.3 shall survive any termination of this Agreement and any succession of any Depositary.

  
 The Depositary, its parent, affiliates or subsidiaries, the Depositary’s Agents, and the Registrar may own,
buy, sell and deal in any class of securities of the Company and its affiliates and in Receipts or Depositary Shares or become pecuniarily interested in any transaction in which the Company or its affiliates may be interested or contract with or
lend money to or otherwise act as fully or as freely as if it were not the Depositary, parent, affiliate or subsidiary or Depositary’s Agent or Registrar hereunder. The Depositary may also act as trustee, transfer agent or registrar of any of
the securities of the Company and its affiliates. 
  
 It is intended that neither the Depositary nor any
Depositary’s Agent nor the Registrar, acting as the Depositary’s Agent or Registrar, as the case may be, shall be deemed to be an “issuer” of the securities under the federal securities laws or applicable state securities laws,
it being expressly understood and agreed that the Depositary, any Depositary’s Agent and the Registrar are acting only in a ministerial capacity as Depositary or Registrar for the Stock. 
  

Neither the Depositary (or its officers, directors, employees or agents) nor any Depositary’s Agent nor the Registrar makes any representation or has any
responsibility as to the validity of the registration statement pursuant to which the Depositary Shares are registered under the Securities Act, the Stock, the Depositary Shares or the Receipts (except for its counter-signatures thereon) or any
instruments referred to therein or herein, or as to the correctness of any statement made therein or herein. 
  
 The
Depositary assumes no responsibility for the correctness of the description that appears in the Receipts, which can be taken as a statement of the Company summarizing certain provisions of this Deposit Agreement. Notwithstanding any other provision
herein or in the Receipts, the Depositary makes no warranties or representations as to the validity or genuineness of any Stock at any time deposited with the Depositary hereunder or of the Depositary Shares, as to the validity or sufficiency of
this Deposit Agreement, as to the value of the Depositary Shares or as to any right, title or interest of the record holders of Receipts in and to the Depositary Shares. The Depositary shall not be accountable for the use or application by the
Company of the Depositary Shares or the Receipts or the proceeds thereof. 
 

 15 

  
 SECTION 5.4 Resignation and Removal of the Depositary; Appointment of
Successor Depositary. The Depositary may at any time resign as Depositary hereunder by delivering notice of its election to do so to the Company, such resignation to take effect upon the appointment of a successor Depositary and its acceptance
of such appointment as hereinafter provided. 
  
 The Depositary may at any time be removed by the Company by notice
of such removal delivered to the Depositary, such removal to take effect upon the appointment of a successor Depositary and its acceptance of such appointment as hereinafter provided. 
  
 In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall, within 60 days after the delivery of the notice of resignation or
removal, as the case may be, appoint a successor Depositary, which shall be a bank or trust company having its principal office in the United States of America and having a combined capital and surplus of at least $150,000,000. If no successor
Depositary shall have been so appointed and have accepted appointment within 60 days after delivery of such notice, the resigning or removed Depositary may petition any court of competent jurisdiction for the appointment of a successor Depositary.
Every successor Depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such successor Depositary, without any further act or deed, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor and for all purposes shall be the Depositary under this Deposit Agreement, and such predecessor, upon payment of all sums due it and on the written request of the Company,
shall execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right, title and interest in the Stock and any moneys or property held hereunder
to such successor, and shall deliver to such successor a list of the record holders of all outstanding Receipts and such records, books and other information in its possession relating thereto. Any successor Depositary shall promptly mail notice of
its appointment to the record holders of Receipts. 
  
 Any corporation into or with which the Depositary may be
merged, consolidated or converted shall be the successor of such Depositary without the execution or filing of any document or any further act, and notice thereof shall not be required hereunder. Such successor Depositary may authenticate the
Receipts in the name of the predecessor Depositary or in the name of the successor Depositary. 
  
  
 SECTION 5.5 Corporate Notices and Reports. The Company agrees that it will deliver to the Depositary, and the Depositary will, promptly after receipt thereof, transmit to the record holders of Receipts, in each case
at the addresses recorded in the Depositary’s books, copies of all notices and reports (including without limitation financial statements) required by 
 

 16 

 law or by the rules of any national securities exchange upon which the Stock, the Depositary Shares or the Receipts are listed, to be furnished
to the record holders of Receipts. Such transmission will be at the Company’s expense and the Company will provide the Depositary with such number of copies of such documents as the Depositary may reasonably request. 
  
 SECTION 5.6 Indemnification by the Company. The Company shall indemnify the Depositary, any Depositary’s Agent and the
Registrar against, and hold each of them harmless from, any loss, liability or expense (including the reasonable costs and expenses of defending itself) which may arise out of acts performed or omitted in connection with this Deposit Agreement and
the Receipts by the Depositary, any Registrar or any of their respective agents (including any Depositary’s Agent), except for any liability arising out of gross negligence, willful misconduct or bad faith on the respective parts of any such
person or persons. The obligations of the Company set forth in this Section 5.6 shall survive any succession of any Depositary or Depositary’s Agent. 
  
 SECTION 5.7 Charges and Expenses. The Company shall pay all transfer and other taxes and governmental charges arising solely from the existence of the depositary arrangements. The Company shall
pay charges of the Depositary in connection with the initial deposit of the Stock and the initial issuance of the Depositary Shares, all withdrawals of shares of the Stock by owners of Depositary Shares, and any redemption of the Stock at the option
of the Company. All other transfer and other taxes and governmental charges shall be at the expense of holders of Depositary Shares. If, at the request of a holder of Receipts, the Depositary incurs charges or expenses for which it is not otherwise
liable hereunder, such holder will be liable for such charges and expenses. All other charges and expenses of the Depositary and any Depositary’s Agent hereunder (including, in each case, reasonable fees and expenses of counsel) incident to the
performance of their respective obligations hereunder will be paid upon consultation and agreement between the Depositary and the Company as to the amount and nature of such charges and expenses. The Depositary shall present its statement for
charges and expenses to the Company at such intervals as the Company and the Depositary may agree. 
  
 SECTION 5.8
Tax Compliance. The Depositary, on its own behalf and on behalf of the Company, will comply with all applicable certification, information reporting and withholding (including “backup” withholding) requirements imposed by applicable
tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Depositary Shares or (ii) the issuance, delivery, holding, transfer, redemption or exercise of rights under the Depositary Receipts or the
Depositary Shares. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be withheld to the appropriate taxing authority or its designated agent.

  
 

 17 

 The Depositary shall comply with any direction received from the Company with respect to the application of such
requirements to particular payments or holders or in other particular circumstances, and may for purposes of this Agreement rely on any such direction in accordance with the provisions of Section 5.3 hereof. 
  
 The Depositary shall maintain all appropriate records documenting compliance with such requirements, and shall make such records available
on request to the Company or to its authorized representatives. 
  
 
ARTICLE VI 
  
 Amendment and Termination 
  

SECTION 6.1 Amendment. The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended by agreement
between the Company and the Depositary in any respect which they may deem necessary or desirable; provided, however, that no such amendment (other than any change in the fees of any Depositary or Registrar, which shall go into effect
not sooner than three months after notice thereof to the holders of the Receipts) which shall materially adversely alter the rights of the holders of Receipts shall be effective unless such amendment shall have been approved by the holders of at
least a majority of the Depositary Shares then outstanding. Every holder of an outstanding Receipt at the time any such amendment becomes effective shall be deemed, by continuing to hold such Receipt, to be bound by the Deposit Agreement as amended
thereby. Notwithstanding the foregoing, in no event may any amendment impair the right of any holder of any Depositary Shares, upon surrender of the Receipts evidencing such Depositary Shares and subject to any conditions specified in this Deposit
Agreement, to receive shares of Stock and any money or other property represented thereby, except in order to comply with mandatory provisions of applicable law. 
  
 SECTION 6.2 Termination. This Deposit Agreement may be terminated by the Company at any time upon not less than 60 days’ prior written notice to the Depositary, in which case, on a date
that is not later than 30 days after the date of such notice, the Depositary shall deliver or make available for delivery to holders of Depositary Shares, upon surrender of the Receipts evidencing such Depositary Shares, such number of whole or
fractional shares of Stock as are represented by such Depositary Shares. This Deposit Agreement will automatically terminate after (i) all outstanding Depositary Shares have been redeemed pursuant to Section 2.8 or (ii) there shall have been made a
final distribution in respect of the Stock in connection with any liquidation, dissolution or winding up of the Company and such distribution shall have 
 

 18 

 been distributed to the holders of Depositary Receipts pursuant to Section 4.1 or 4.2, as applicable. 
  
 Upon the termination of this Deposit Agreement, the Company shall be discharged from all obligations under this Deposit Agreement except
for its obligations to the Depositary, the Registrar and any Depositary’s Agent under Sections 5.6 and 5.7. 
  
 
ARTICLE VII 
  
 Miscellaneous 
  
 SECTION 7.1 Counterparts. This Deposit Agreement may be executed in any number of counterparts, and by each of the parties hereto on separate counterparts, each of
which counterparts, when so executed and delivered, shall be deemed an original, but all such counterparts taken together shall constitute one and the same instrument. 
  
 SECTION 7.2 Exclusive Benefit of Parties. This Deposit Agreement is for the exclusive benefit of the parties hereto, and their respective successors hereunder, and
shall not be deemed to give any legal or equitable right, remedy or claim to any other person whatsoever. 
  
 SECTION
7.3 Invalidity of Provisions. In case any one or more of the provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby. 
  
 SECTION 7.4 Notices. Any and all notices to be given to the Company hereunder or under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by telegram or
facsimile transmission confirmed by letter, addressed to the Company at: 
  
 Public Storage, Inc. 
 701 Western Avenue, 2nd Floor 
 Glendale, California 91201-2397 

Facsimile No.: (818) 244-9267 
  
 or at any other address
of which the Company shall have notified the Depositary in writing. 
  
 Any and all notices to be given to the
Depositary hereunder or under the Receipts shall be in writing and shall be deemed to have been duly given if personally delivered or sent 
 

 19 

 by mail or by telegram or facsimile transmission confirmed by letter, addressed to the Depositary at the Depositary’s Office, at:

  
 EquiServe Trust Company, N. A. 
 150 Royall Street 
 Mail Stop: 45-02-62 
 Canton, MA 02021 
 Attention: Client Administration 
 Facsimile No.: (617) 575-2549 
  
 or at any other address of which the Depositary shall have notified the Company in
writing. 
  
 Any and all notices to be given to any record holder of a Receipt hereunder or under the Receipts shall
be in writing and shall be deemed to have been duly given if personally delivered or sent by mail, or by telegram or facsimile transmission confirmed by letter, addressed to such record holder at the address of such record holder as it appears on
the books of the Depositary, or if such holder shall have filed with the Depositary a written request that notices intended for such holder be mailed to some other address, at the address designated in such request. 
  
 Delivery of a notice sent by mail or by telegram or facsimile transmission shall be deemed to be effected at the time when a duly
addressed letter containing the same (or a confirmation thereof in the case of a telegram or facsimile transmission) is deposited for mailing by first class mail, postage prepaid. The Depositary or the Company may, however, act upon any telegram or
facsimile transmission received by it from the other or from any holder of a Receipt, notwithstanding that such telegram or facsimile transmission shall not subsequently be confirmed by letter or as aforesaid. 
  
 SECTION 7.5 Appointment of Registrar. The Company hereby also appoints the Depositary as Registrar in respect of the Receipts and
the Depositary hereby accepts such appointments. 
  
 SECTION 7.6 Holders of Receipts Are Parties. The holders
of Receipts from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts by acceptance of delivery thereof. 
  
 SECTION 7.7 Governing Law. THIS DEPOSIT AGREEMENT AND THE RECEIPTS AND ALL RIGHTS HEREUNDER AND THEREUNDER AND PROVISIONS HEREOF AND THEREOF SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS APPLICABLE TO CONTRACTS MADE IN AND TO BE 
 

 20 

 PERFORMED IN THE STATE OF NEW YORK, INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

 
 SECTION 7.8 Inspection of Deposit Agreement. Copies of this Deposit Agreement shall be filed with the Depositary and the
Depositary’s Agent and shall be open to inspection during business hours at the Depositary’s Office or respective offices of the Depositary’s Agent, if any, by any holder of a Receipt. 
  
 SECTION 7.9 Headings. The headings of articles and sections in this Deposit Agreement and in the form of the Receipt set forth in
Exhibit A hereto have been inserted for convenience only and are not to be regarded as a part of this Deposit Agreement or the Receipts or to have any bearing upon the meaning or interpretation of any provision contained herein or in the Receipts.

  
 

 21 

  
 IN WITNESS WHEREOF, the Company and the Depositary have duly executed this
Agreement as of the day and year first above set forth, and all holders of Receipts shall become parties hereto by and upon acceptance by them of delivery of Receipts issued in accordance with the terms hereof. 
  
 
	 ATTESTED BY: 
 	 	  	 	 PUBLIC STORAGE, INC. 
 
	 
	 
	 	  	 	 

	  	 	 John Reyes
 Senior Vice President,
Chief Financial
 Officer and Assistant Secretary
 	 	  	 	  	 	 David Goldberg
 Vice President
and Senior Counsel
 

 
  
 
	 ATTESTED BY: 
 	 	  	 	 EQUISERVE TRUST COMPANY, N. A.
 
	 
	 
	 	  	 	 

	  	 	 Karen Hunter
 Account
Manager
 	 	  	 	  	 	 Tyler Haynes
 Managing
Director
 

 
  
 

 22 

  
 ANNEX A 
  
 TEMPORARY RECEIPT EXCHANGEABLE FOR DEFINITIVE 
  
 ENGRAVED RECEIPT
WHEN READY FOR DELIVERY 
  
 The Shares represented by this Depositary Receipt are subject to restrictions on ownership and transfer for
the purpose of this Corporation’s maintenance of its status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended. Except as set forth in this Corporation’s Articles of Incorporation or Bylaws, no person may
Beneficially Own (i) more than 2.0% of the outstanding shares of Common Stock of this Corporation, or (ii) more than 9.9% of the outstanding shares of any series of Preferred Stock or Equity Stock of this Corporation, with certain further
restrictions and exceptions as are set forth in this Corporation’s Articles of Incorporation or Bylaws. Any Person who attempts to own or Beneficially Own Shares in excess of the above limitations must immediately notify this Corporation. All
capitalized terms in this legend have the meanings defined in this Corporation’s Articles of Incorporation or Bylaws. If any of the restrictions on transfer or ownership set forth in the Articles of Incorporation or Bylaws are violated, the
Shares represented hereby will be automatically transferred to the Trustee of a Trust for the benefit of a Charitable Beneficiary pursuant to the terms of the Articles of Incorporation or Bylaws. In addition, attempted transfers of Shares in
violation of the limitations described above (as modified or expanded upon in this Corporation’s Articles of Incorporation or Bylaws), may be void ab initio. This Corporation will furnish to the holder hereof, upon request and
without charge, a complete written statement of the terms and conditions of these restrictions. Requests for such documents may be directed to the corporate secretary. 
  
 DEPOSITARY SHARES 
  
 THIS DEPOSITARY RECEIPT 
 IS TRANSFERABLE IN BOSTON, 
 MA OR NEW YORK, NY 
  
 CUSIP 74460D 58 8 
  
 SEE REVERSE FOR 
 CERTAIN DEFINITIONS 
  
 DEPOSITARY RECEIPT FOR DEPOSITARY 
     SHARES EACH REPRESENTING 1/1,000th OF A 
     SHARE OF 7.500% CUMULATIVE PREFERRED STOCK, 
     SERIES V 
  
 
	 OF
 	  	  	  	  	  	  	  	  	  	  	  	  
	 PUBLIC STORAGE, INC.
 INCORPORATED UNDER THE
 LAWS OF THE STATE OF CALIFORNIA
 	  	  	  	  	  	  	  	  	  	  	  	  

 
  
 

 A-1 

  
 EQUISERVE TRUST COMPANY, N. A., as Depositary (the “Depositary”),
hereby certifies that 
  
 is the registered owner of
                                        
                                        
                                        
                     DEPOSITARY SHARES 
  
 (“Depositary Shares”), each Depositary Share representing a 1/1,000 interest in one share of 7.500% Cumulative Preferred Stock, Series V (the “Stock”), of Public Storage, Inc., a California corporation (the
“Corporation”), on deposit with the Depositary, subject to the terms and entitled to the benefits of the Deposit Agreement dated as of September 30, 2002 (the “Deposit Agreement”), between the Corporation and the Depositary. By
accepting this Depositary Receipt, the holder hereof becomes a party to and agrees to be bound by all the terms and conditions of the Deposit Agreement. This Depositary Receipt shall not be valid or obligatory for any purpose or be entitled to any
benefits under the Deposit Agreement unless it shall have been executed by the Depositary by the manual and/or facsimile signature of a duly authorized officer or, if executed in facsimile by the Depositary, countersigned by a Registrar in respect
of the Depositary Receipts by a duly authorized officer. 
  
 The Corporation is authorized to issue Common Stock, one or more series of
Preferred Stock, one or more series of Equity Stock and Depositary Shares. The Corporation will furnish without charge to each receiptholder, who so requests in writing, a statement of the rights, preferences, privileges and restrictions granted to
or imposed upon the respective classes of shares and upon the holders thereof, a copy of the Corporation’s Bylaws and a copy of the Deposit Agreement. Any such request shall be made to the Corporation at the principal office of the Corporation
at 701 Western Avenue, Glendale, California 91201-2397, Attention: Secretary. 
  
 This Depositary Receipt is continued on the reverse hereof
and the additional provisions set forth therein (including, without limitation, those relating to redemption) for all purposes have the same effect as if set forth at this place. 
  
 Dated: 
  
 
	 Countersigned
  
 EQUISERVE TRUST COMPANY, N. A.
  
 Depositary, Transfer Agent and
Registrar
 
	 
	 By:
 	 	 

	  	 	 Authorized Officer
 

 
  
 

 A-2 

  
 THE SHARES REPRESENTED BY THIS DEPOSITARY RECEIPT ARE SUBJECT TO THE
PROVISIONS OF THE ARTICLES AND BYLAWS, INCLUDING BUT NOT LIMITED TO (1) SECTION (C) OF THE CERTIFICATE OF DETERMINATION RELATING TO THE STOCK, WHICH CONFERS UPON THE BOARD THE RIGHT, ON OR AFTER SEPTEMBER 30, 2007, TO CALL FOR REDEMPTION THE STOCK,
(2) ARTICLE XI, SECTION 7 OF THE BYLAWS, WHICH CONFERS UPON THE BOARD THE RIGHT TO REFUSE TO REGISTER THE TRANSFER OF AND/OR TO CALL FOR REDEMPTION THE SHARES REPRESENTED BY THIS CERTIFICATE IF NECESSARY IN ITS OPINION TO MAINTAIN THE
CORPORATION’S QUALIFICATION AS A “REAL ESTATE INVESTMENT TRUST” UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND (3) THE PROVISIONS OF THE ARTICLES AND BYLAWS, WHICH SET FORTH OWNERSHIP LIMITATION PROVISIONS DESIGNED TO
MAINTAIN SUCH QUALIFICATION. 
  
 1. The Deposit Agreement. Depositary Receipts, of which this Depositary
Receipt is one, are made available upon the terms and conditions set forth in the Deposit Agreement, dated as of September 30, 2002 (the “Deposit Agreement”), among the Company, the Depositary and all holders from time to time of
Depositary Receipts. The Deposit Agreement (copies of which are on file at the principal office maintained by the Depositary which at the time of the execution of the Deposit Agreement is located at 150 Royall Street, Mail Stop: 45-02-62, Canton, MA
02021 (the “Depositary’s Office”) and at the office of any agent of the Depositary) sets forth the rights of holders of Depositary Receipts and the rights and duties of the Depositary. The statements made on the face and the reverse
of this Depositary Receipt are summaries of certain provisions of the Deposit Agreement and are subject to the detailed provisions thereof, to which reference is hereby made. In the event of any conflict between the provisions of this Depositary
Receipt and the provisions of the Deposit Agreement, the provisions of the Deposit Agreement will govern. 
  
 2.
Definitions. Unless otherwise expressly herein provided, all defined terms used in this summary of the Deposit Agreement shall have the meanings ascribed thereto in the Deposit Agreement. 
  

3. Redemption of Stock. Whenever the Company shall elect to redeem shares of Stock, it shall (unless otherwise agreed in writing with the Depositary) give the
Depositary not less than 60 days’ notice of the date of such proposed redemption and of the number of such shares of Stock held by the Depositary to be so redeemed and the applicable redemption price. The Depositary shall mail, first-class
postage prepaid, notice of the redemption of Stock and the proposed simultaneous redemption of Depositary Shares representing the Stock to be redeemed, not less than 30 and not more than 60 days prior to the date fixed for redemption of such Stock
and Depositary Shares, to the record holders of the Depositary Receipts evidencing the Depositary Shares to be so redeemed, at the addresses of such holders as the same appear on the records of the Depositary. Any such notice shall also be published
in the same manner as notices of redemption of the Stock are required to be published by the Company. On the date of such redemption, the Depositary shall redeem the number of Depositary Shares representing such redeemed Stock; provided, that
the Company shall then have paid or caused to be paid in full to the Depositary the redemption price of the Stock to be redeemed, plus any accrued and unpaid dividends payable with respect thereto to the date of any such redemption. In case fewer
than all the outstanding Depositary Shares are to be redeemed, the Depositary Shares to be redeemed shall be determined pro rata or by lot in a manner determined by the Board of Directors. Notice having been mailed as aforesaid, from and after the
Redemption Date (unless the Company shall have failed to provide the funds 
 

 A-3 

 necessary to redeem the shares of Stock evidenced by the Depositary Shares called for redemption), dividends on the shares of Stock so called
for redemption shall cease to accrue, the Depositary Shares called for redemption shall be deemed no longer to be outstanding and all rights of the holders of Depositary Receipts evidencing such Depositary Shares (except the right to receive the
redemption price) shall, to the extent of such Depositary Shares, cease and terminate. Upon surrender in accordance with said notice of the Depositary Receipts evidencing such Depositary Shares (properly endorsed or assigned for transfer, if the
Depositary or applicable law shall so require), such Depositary Shares shall be redeemed at a redemption price per Depositary Share equal to the same fraction of the redemption price per share paid with respect to the shares of Stock as the fraction
each Depositary Share represents of a share of Stock plus the same fraction of all money and other property, if any, represented by such Depositary Shares, including all amounts paid by the Company in respect of dividends which on the Redemption
Date have accumulated on the shares of Stock to be so redeemed and have not theretofore been paid. The foregoing is subject further to the terms and conditions of the Certificate of Determination. If fewer than all of the Depositary Shares evidenced
by this Depositary Receipt are called for redemption, the Depositary will deliver to the holder of this Depositary Receipt upon its surrender to the Depositary, together with the redemption payment, a new Depositary Receipt evidencing the Depositary
Shares evidenced by such prior Depositary Receipt and not called for redemption. 
  
 4. Surrender of Depositary
Receipts and Withdrawal of Stock. Upon surrender of this Depositary Receipt to the Depositary at the Depositary’s Office or at such other offices as the Depositary may designate, and subject to the provisions of the Deposit Agreement, the
holder hereof is entitled to withdraw, and to obtain delivery, without unreasonable delay, to or upon the order of such holder, any or all of the Stock (but only in whole shares of Stock) and all money and other property, if any, at the time
represented by the Depositary Shares evidenced by this Depositary Receipt; provided, however, that, in the event this Depositary Receipt shall evidence a number of Depositary Shares in excess of the number of Depositary Shares
representing the whole number of shares of Stock to be withdrawn, the Depositary shall, in addition to such whole number of shares of Stock and such money and other property, if any, to be withdrawn, deliver, to or upon the order of such holder, a
new Depositary Receipt or Depositary Receipts evidencing such excess number of whole Depositary Shares. 
  
 5.
Transfers, Split-ups, Combinations. Subject to the Deposit Agreement, this Depositary Receipt is transferable on the books of the Depositary upon surrender of this Depositary Receipt to the Depositary, properly endorsed or accompanied by a
properly executed instrument of transfer, and upon such transfer the Depositary shall sign and deliver a Depositary Receipt or Depositary Receipts to or upon the order of the person entitled thereto, all as provided in and subject to the Deposit
Agreement. This Depositary Receipt may be split into other Depositary Receipts or combined with other Depositary Receipts into one Depositary Receipt evidencing the same aggregate number of Depositary Shares evidenced by the Depositary Receipt or
Depositary Receipts surrendered; provided, however, that the Depositary shall not issue any Depositary Receipt evidencing a fractional Depositary Share. 
  
 6. Conditions to Signing and Delivery, Transfer, etc., of Depositary Receipts. Prior to the execution and delivery, registration of transfer, split-up, combination, surrender or exchange of this
Depositary Receipt, the Depositary, any 
 

 A-4 

 of the Depositary’s Agents or the Company may require any or all of the following: (i) payment to it of a sum sufficient for the payment
(or, in the event that the Depositary or the Company shall have made such payment, the reimbursement to it) of any tax or other governmental charge with respect thereto; (ii) production of proof satisfactory to it as to the identity and genuineness
of any signature; and (iii) compliance with such reasonable regulations, if any, as the Depositary or the Company may establish not inconsistent with the Deposit Agreement. 
  
 7. Suspension of Delivery, Transfer, etc. The deposit of Stock may be refused, the delivery of this Depositary Receipt against Stock may be suspended, the
registration of transfer of Depositary Receipts may be refused and the registration of transfer, surrender or exchange of this Depositary Receipt may be suspended (i) during any period when the register of stockholders of the Company is closed or
(ii) if any such action is deemed necessary or advisable by the Depositary, any of the Depositary’s Agents or the Company at any time or from time to time because of any requirement of law or of any government or governmental body or
commission, or under any provision of the Deposit Agreement. 
  
 8. Amendment. The form of the Depositary
Receipts and any provision of the Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary in any respect that they may deem necessary or desirable; provided, however, that no such
amendment (other than any changes in the fees of any Depositary or Registrar which shall go into effect not sooner than three months after Notice thereof to the holders of the Depositary Receipts) which shall materially adversely alter the rights of
holders of Depositary Receipts shall be effective unless such amendment shall have been approved by at least a majority of the Depositary Shares then outstanding. The holder of this Depositary Receipt at the time any such amendment becomes effective
shall be deemed, by continuing to hold this Depositary Receipt, to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the owner of the Depositary Shares evidenced by this Depositary Receipt to
surrender this Depositary Receipt with instructions to the Depositary to deliver to the holder the Stock and all money and other property, if any, represented thereby, except in order to comply with mandatory provisions of applicable law.

  
 9. Charges and Expenses. The Company will pay all transfer and other taxes and governmental charges
arising solely from the existence of the depositary arrangement, except such charges as are expressly provided in the Deposit Agreement to be at the expense of holders of Depositary Receipts. 
  

10. Title to Depositary Receipts. Title to this Depositary Receipt, when properly endorsed or accompanied by a properly executed instrument of transfer, is
transferable by delivery with the same effect as in the case of a negotiable instrument; provided, however, that the Depositary may, notwithstanding any notice to the contrary, treat the record holder hereof at such time as the absolute owner
hereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other purposes. 
  

11. Dividends and Distributions. Whenever the Depositary shall receive any cash dividend or other cash distribution on the Stock, the Depositary shall, subject
to the provisions of the Deposit Agreement, distribute to record holders of Depositary Receipts such amounts of such sums as are, as nearly as 
 

 A-5 

 practicable, in proportion to the respective numbers of Depositary Shares evidenced by the Depositary Receipts held by such holders;
provided, however, that in case the Company or the Depositary shall be required by law to withhold and does withhold from any cash dividend or other cash distribution in respect of the Stock an amount on account of taxes or as otherwise
required by law, regulation or court process, the amount made available for distribution or distributed in respect of Depositary Shares shall be reduced accordingly. In the event that the calculation of any such cash dividend or other cash
distribution to be paid to any record holder on the aggregate number of Depositary Receipts held by such holder results in an amount which is a fraction of a cent, the amount the Depositary shall distribute to such record holder shall be rounded to
the next highest whole cent; and upon request of the Depositary, the Company shall pay the additional amount to the Depositary for distribution. 
  
 12. Subscription Rights, Preferences or Privileges. If the Company shall at any time offer or cause to be offered to the persons in whose name Stock is registered on the books of the Company any
rights, preferences or privileges to subscribe for or to purchase any securities or any rights, preferences or privileges of any other nature, such rights, preferences or privileges shall in each such instance, subject to the provisions of the
Deposit Agreement, be made available by the Depositary to the record holders of Depositary Receipts in such manner as the Depositary shall determine. 
  
 13. Notice of Dividends, Fixing of Record Date. Whenever (i) any cash dividend or other cash distribution shall become payable, or any distribution other than cash shall be made, or any rights,
preferences or privileges shall at any time be offered, with respect to the Stock, or (ii) the Depositary shall receive notice of any meeting at which holders of Stock are entitled to vote or of which holders of Stock are entitled to notice or
whenever the Depositary and the Company shall decide it is appropriate, the Depositary shall in each such instance fix a record date (which shall be the same date as the record date fixed by the Company with respect to the Stock) for the
determination of the holders of Depositary Receipts (x) who shall be entitled to receive such dividend, distribution, rights, preferences or privileges or the net proceeds of the sale thereof, or (y) who shall be entitled to give instructions for
the exercise of voting rights at any such meeting or to receive notice of such meeting or for any other appropriate reasons. 
  
 14. Voting Rights. Upon receipt of notice of any meeting at which the holders of Stock are entitled to vote, the Depositary shall, as soon as practicable thereafter, mail to the record holders of Depositary Receipts a notice,
which shall contain (i) such information as is contained in such notice of meeting, (ii) a statement that the holders may, subject to any applicable restrictions, instruct the Depositary as to the exercise of the voting rights pertaining to the
Stock represented by their respective Depositary Shares, and (iii) a brief statement as to the manner in which such instructions may be given. Upon the written request of a holder of this Depositary Receipt on such record date the Depositary shall
use its best efforts to vote or cause to be voted the Stock represented by the Depositary Shares evidenced by this Depositary Receipt in accordance with the instructions set forth in such request. The Company hereby agrees to take all action that
may be deemed necessary by the Depositary in order to enable the Depositary to vote such Stock or cause such Stock to be voted. In the absence of specific instructions from the holder of this Depositary Receipt, the Depositary will abstain from
voting to 
 

 A-6 

 the extent of the Stock represented by the Depositary Shares evidenced by this Depositary Receipt. 
  
 15. Reports, Inspection of Transfer Books. The Depositary shall transmit to the record holders of Depositary Receipts copies of all
reports and communications received from the Company that are received by the Depositary as the holder of Stock. The Depositary shall keep books at the Corporate Office for the registration and transfer of Depositary Receipts, which books at all
reasonable times will be open for inspection by the record holders of Depositary Receipts; provided that any such holder requesting to exercise such right shall certify to the Depositary that such inspection shall be for a proper purpose
reasonably related to such person’s interest as an owner of Depositary Shares. 
  
 16. Liability of the
Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall incur any liability to any holder of this Depositary Receipt, if by reason of
any provision of any present or future law or regulation thereunder of any governmental authority or, in the case of the Depositary, the Registrar or any Depositary’s Agent, by reason of any provision present or future, of the Articles of
Incorporation or by reason of any act of God or war or other circumstances beyond the control of the relevant party, the Depositary, any Depositary’s Agent, the Registrar or the Company shall be prevented or forbidden from doing or performing
any act or thing that the terms of the Deposit Agreement provide shall be done or performed; nor shall the Depositary, any Depositary’s Agent, the Registrar or the Company incur any liability to any holder of this Depositary Receipt (i) by
reason of any nonperformance or delay, caused as aforesaid, in the performance of any act or thing that the terms of the Deposit Agreement provide shall or may be done or performed, or (ii) by reason of any exercise of, or failure to exercise, any
discretion provided for in the Deposit Agreement except if such exercise or failure to exercise discretion is caused by its gross negligence or willful misconduct. 
  
 17. Obligations of the Depositary, the Depositary’s Agents, the Registrar and the Company. Neither the Depositary nor any Depositary’s Agent nor the
Registrar nor the Company assumes any obligation or shall be subject to any liability under the Deposit Agreement or this Depositary Receipt to the holder hereof or other persons, other than for its gross negligence, willful misconduct or bad faith.

  
 Neither the Depositary nor any Depositary’s Agent nor the Registrar nor the Company shall be under any
obligation to appear in, prosecute or defend any action, suit or other proceeding with respect to Stock, Depositary Shares or Depositary Receipts or Common Stock that in its opinion may involve it in expense or liability, unless indemnity
satisfactory to it against all expense and liability be furnished as often as may be required. 
  
 Neither the
Depositary nor any Depositary’s Agent nor the Registrar nor the Company will be liable for any action or failure to act by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Stock for
deposit, any holder of this Depositary Receipt or any other person believed by it in good faith to be competent to give such advice or information. 
  
 

 A-7 

  
 18. Termination of Deposit Agreement. Whenever so directed by the Company
upon not less than 60 days’ prior written notice, the Depositary will terminate the Deposit Agreement by mailing notice of such termination to the record holders of all Depositary Receipts then outstanding at least 30 days after the date of
such notice. Upon the termination of the Deposit Agreement, the Company shall be discharged to all obligations thereunder except for its obligations to the Depositary, any Depositary’s Agent and any Registrar under Sections 5.6 and 5.7 of the
Deposit Agreement. 
  
 19. Governing Law. The Deposit Agreement and this Depositary Receipt and all rights
thereunder and hereunder and provisions thereof and hereof shall be governed by, and construed in accordance with, the law of the State of New York, including without limitation Section 5-1401 of the New York General Obligations Law. 

 A-8 

 The following abbreviations, when used in the inscription on the face of this Depositary Receipt, shall be construed as
though they were written out in full according to applicable laws or regulations: 
  
 
	 TEN COM
 	 	 —
 	 	 as tenants in common
 	  	 UNIF GIFT MIN ACT—
 

 	 	                     Custodian              
      
 (Cust)
                            (Minor)
 under Uniform Gifts to Minors
 Act
                                       
       
 (State)                    
  
 
	 TEN ENT
 	 	 —
 	 	 as tenants by the entireties
 	  	  	 
	 JT TEN
 	 	 —
 	 	 as joint tenants with right of survivorship and not as tenants in common
 	  	  	 
	  	 	  	 	  	  	 UNIF TRF MIN ACT—
 

 	 	          Custodian (until
age          )
 (Cust)                                    
              
            under Uniform Transfers
 (Minor)                                    
          
 to Minors
Act                                
                             (State)

 
 

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

 A-9 

  
 For Value Received,
                         hereby sell, assign and transfer unto 
  
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF
ASSIGNEE 
                                      
                                        
                           
                                      
                                        
                           
                                      
                                        
                           
                                      
                                        
                                        
                                        
                                        
                                        
                     
 PLEASE PRINT OR TYPEWRITE NAME AND
ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE 
  
                          Depositary Shares represented by the within Depositary Receipt, and do hereby
irrevocably constitute and appoint                          Attorney to transfer the said Depositary Shares on the books
of the within named Depositary with full power of substitution in the premises. 
  
 
	 Dated
                                        
                                       
 
 	 	 Signed
 
	 
	  	 	                                      
                                        
                                      

	  	 	 NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THIS DEPOSITARY RECEIPT IN EVERY PARTICULAR, WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
 

 
  
 SIGNATURE(S) GUARANTEED 
  
 By
                                       
                                        
                  
 THE SIGNATURE(S) SHOULD BE GUARANTEED BY

 AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, 
 STOCKBROKERS, SAVINGS AND LOAN 
 ASSOCIATIONS AND CREDIT UNIONS WITH 
 MEMBERSHIP IN AN APPROVED SIGNATURE 
 GUARANTEE MEDALLION PROGRAM), PURSUANT 

TO S.E.C. RULE 17Ad-15. 
 

 A-10<PAGE>

                                  OFFICE LEASE

                                     Between

                               BYN, LLC, Landlord

                                       And

                         Yardville National Bank, Tenant

Premises: Yardville National Bank
          1041 Route 206
          Bordentown Township, New Jersey 08648
          Block 129 Lot 1

Date:     May 1, 2001

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
ARTICLE 1 Premises - Term of Lease and Use........................................................................1

ARTICLE 2 Basic Rent..............................................................................................1

ARTICLE 3 Repair Obligations of Tenant............................................................................1

ARTICLE 4 Compliance with Statutes, Ordinances, Etc...............................................................1

ARTICLE 5 Landlord's Right to Perform Tenant's Covenants..........................................................2

ARTICLE 6 Assignment or Subletting................................................................................2

ARTICLE 7 Alterations or Improvements by Tenant...................................................................2

ARTICLE 8 Damage or Destruction...................................................................................3

ARTICLE 9 Landlord's Right of Entry...............................................................................3

ARTICLE 10 Vacancy or Eviction....................................................................................3

ARTICLE 11 Replacement of Glass and Damage Due to Tenant's Negligence.............................................4

ARTICLE 12 Obstruction Of Premises................................................................................4

ARTICLE 13 Signs..................................................................................................4

ARTICLE 14 Landlord's Non-Liability for Damages...................................................................4

ARTICLE 15 Subordination..........................................................................................5

ARTICLE 16 Security Deposit.......................................................................................5

ARTICLE 17 Impossibility of Insurance Coverage....................................................................6

ARTICLE 18 Tenant's Insurance.....................................................................................6

ARTICLE 19 Conditional Limitations and Default....................................................................7

ARTICLE 20 Abatement of Trade Fixtures...........................................................................10

ARTICLE 21 Strict Performance....................................................................................10

ARTICLE 22 Re-Entry of Landlord..................................................................................11

ARTICLE 23 Condemnation..........................................................................................11

ARTICLE 24 Delay in Performance..................................................................................11

ARTICLE 25 Limitation of Liability...............................................................................11

ARTICLE 26 Delivery of Possession................................................................................12

ARTICLE 27 Real Estate Broker....................................................................................12

ARTICLE 28 Indemnification of Landlord and Tenant................................................................12

ARTICLE 29 Termination of Landlord's Liability...................................................................12

ARTICLE 30 Triple Net - Additional Rent..........................................................................13

</TABLE>

                                       i
<PAGE>
<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                             <C>
ARTICLE 31 Tenant's Additional Obligation........................................................................14

ARTICLE 32 Tenant's Services.....................................................................................14

ARTICLE 33 Notices...............................................................................................14

ARTICLE 34 Right to Lock Premises on Default.....................................................................15

ARTICLE 35 Proration of Rent.....................................................................................15

ARTICLE 36 Quiet Enjoyment.......................................................................................15

ARTICLE 37 Covenants to Bind Parties.............................................................................15

ARTICLE 38 Notification of Default to Mortgagee..................................................................15

ARTICLE 39 Waiver of Subrogation.................................................................................16

ARTICLE 40 Mechanic's Liens......................................................................................16

ARTICLE 41 Certificates by Tenant and Landlord...................................................................16

ARTICLE 42 Cumulative Remedies - No Waiver - No Oral Change......................................................17

ARTICLE 43 Change of Terms.......................................................................................17

ARTICLE 44 Attornment............................................................................................17

ARTICLE 45 Applicable Law........................................................................................18

ARTICLE 46 Holding Over..........................................................................................18

ARTICLE 47 Memorandum and Recording..............................................................................18

ARTICLE 48 Utility Easements.....................................................................................18

ARTICLE 49 Rules and Regulations.................................................................................19

ARTICLE 50 Building Improvements.................................................................................19

ARTICLE 51 Renewal Option........................................................................................19

ARTICLE 52 Notice Requirement....................................................................................19

ARTICLE 53 Common Areas..........................................................................................20

</TABLE>
                                       ii

<PAGE>

                                    Exhibits
                                    --------

A. Location- Project Description

B. Basic Rent

                                      iii
<PAGE>

         THIS AGREEMENT, dated the 9th day of April, 2001, between BYN, L.L.C.
as Landlord and Yardville National Bank, as Tenant.

                                   WITNESSETH:

                                   ARTICLE 1
                        Premises - Term of Lease and Use

         The said Landlord has let unto the said Tenant and the said Tenant has
hired from said Landlord the following premises: Yardville National Bank,1041
Route 206, Bordentown Township, New Jersey, Block 129, Lot 1 for the term of Ten
(10) years to commence from the issuance of a temporary or permanent Certificate
of Occupancy or May 1, 2001 whichever occurs sooner, to be used and occupied
only for lawful purposes, more specifically bank branch and office use, only.

                  Upon the conditions and covenants following:

                                   ARTICLE 2
                                   Basic Rent

         For rent specifications see Lease Addendum. The square footage for the
building is estimated at 2,200 sq. ft. subject to architectural measurement.
Said rent to be paid in equal monthly payments in advance on the 1st day of each
and every month during the term aforesaid in the amount of $(see Lease Addendum)
per month (year 1), said rent to be paid without benefit of offset or deduction.
This is a triple net lease, and Tenant will pay additional rent as set forth in
Paragraph 29 and is in addition to the basic rent. The rental Schedule is set
forth in Exhibit "B". All rent not received by the 10th of the month will incur
a late charge of five (5%) percent.

                                   ARTICLE 3
                          Repair Obligations of Tenant

         That the Tenant shall take good care of the premises and shall at the
Tenants own cost and expense make all repairs, that Tenant is required to make
under this lease, and at the end or other expiration of the term shall deliver
up the demised premises in good order or condition, damages caused by the
elements and ordinary wear and tear excepted. Tenant shall provide chair pads
under all movable chairs in the demises premises, or otherwise be responsible
for all damage to flooring and carpet resulting from the absence of the use of
chair pads. Tenant will not overload the electrical wiring serving the leased
premises or within the leased premises, and will install at its own expense, but
only after obtaining Landlord's approval, any additional electrical wiring which
may be required in connection with Tenant's apparatus.

                                   ARTICLE 4
                   Compliance with Statutes, Ordinances, Etc.

         That the Tenant shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations and requirements of the Federal, State
and City Government and of any and all their Departments and Bureaus applicable
to said premises, for the correction, prevention, and abatement of nuisances,
violations or other grievances, in, upon or connected with said premises during
said term, and which are directly related to Tenant's use of the said premises;
shall also promptly comply with and execute all rules, orders, and regulations
of the Board of Fire Underwriters, or any other similar body, for the prevention
of fires, at the Tenant's own cost and expense.

<PAGE>

                                   ARTICLE 5
                 Landlord's Right to Perform Tenant's Covenants

         That in case the Tenant shall fail or neglect to comply with the
aforesaid statutes, ordinances, rules, orders, regulations and requirements or
any of them, or in case the Tenant shall fail or neglect to make any necessary
repairs, then if Tenant fails to remediate within thirty (30) days after
Landlord's written notice to remediate, the Landlord or the Landlord's Agency
may enter said premises and make said repairs and comply with any and all of the
said statutes, ordinances, rules, orders, regulations or requirements, at the
cost and expense of the Tenant and in case of the Tenant's failure to pay
therefore, the said cost and expense shall be added to the next month's rent and
be due and payable as such, or the Landlord may deduct the same from the balance
of any sum remaining in the Landlord's hands. This provision is in addition to
the right of the Landlord to terminate this lease by reason of any default on
the part of the Tenant.

                                   ARTICLE 6
                            Assignment or Subletting

         That should the Tenant desire to assign this agreement or underlet said
premises, it shall first offer same to Landlord at the rental set forth herein.
Should Landlord not accept the assignment or underletting offered or not respond
within twenty (20) days of receipt of Tenant's written offer, then Tenant shall
be allowed to assign this agreement or underlet the premises provided that the
Tenant shall not (a) assign this agreement, or underlet or underlease the
premises or any part thereof without the prior written consent of Landlord,
which consent will not be unreasonably withheld or delayed; provided, however,
that notwithstanding such assignment, Tenant shall not thereby be relieved from
responsibility hereunder, or (b) permit or suffer the premises or any part
thereof to be occupied for any business or purpose deemed disreputable or
extra-hazardous on account of fire, under penalty of damages and forfeiture.
Tenant shall be permitted to assign this lease or sublet the premises without
Landlord's consent and without first offering the premises to Landlord if the
proposed sublease or assignee is an entity owned by, controlled by, affiliated
with, or is the Parent Company of the Tenant.

         In the event that the Tenant enters into an agreement to sell all of
its stock of Yardville National Bank, it is permissible under the Lease
Agreement.

                                   ARTICLE 7
                      Alterations or Improvements by Tenant

         That except for the planned improvements made in accordance with plans
and specifications no alterations, additions or improvements, painting or
decorating shall be made in or to the premises without the consent of the
Landlord in writing, which consent shall not be unreasonably withheld or
delayed, under penalty of damages and forfeiture, and all additions and
improvements made by the Tenant shall become the property of the Landlord and

                                      -2-
<PAGE>

shall remain on and be surrendered with the demised premises. Landlord hereby
consents to the installation of paint and carpet throughout the premises and of
sheetrock or glass on the cubicles contained in the premises. At Landlord's
request all such alterations and improvements shall be restored to their
original condition at Tenant's expense at the termination of the Lease, provided
Landlord notifies Tenant, in writing, prior to the end of the term of its desire
to have the premises restored.

                                   ARTICLE 8
                              Damage or Destruction

         In case of damage, by fire or other cause, to the building in which the
leased premises are located, without the fault of the Tenant or of Tenant's
agent or employees, if the damage is so extensive as to amount practically to
the total destruction of the leased premises or of the building, or if the
Landlord shall within a reasonable time decide not to rebuild, the lease shall
cease and come to an end, and the rent shall be apportioned to the time of the
damage. In all other cases where the leased premises are damaged by fire without
the fault of the Tenant or of Tenant's agents or employees the Landlord shall
repair the damage with reasonable dispatch after notice of damage, and if the
damage has rendered the premises untenantable, in whole or in part, there shall
be no abatement, diminution or reduction of fixed rent or other charges payable
by Tenant under this lease.

                                   ARTICLE 9
                            Landlord's Right of Entry

                  (a) That said Tenant agrees that the said Landlord and
Landlord's Agents, and other representatives, shall have the right to enter into
and upon said premises, or any part thereof, at all reasonable hours upon prior
written notice to the Tenant except where an emergency exists and the Landlord
is obligated to take immediate action for the purpose of examining the same, or
making such repairs or alterations therein as may be necessary for the safety
and preservation thereof provided such entry shall not unreasonably interfere
with Tenant's business.

                  (b) The Tenant also agrees to permit the Landlord or
Landlord's Agents to show the premises at all reasonable hours, upon prior
written notice to Tenant, to persons wishing to hire or purchase the same; and
the Tenant further agrees that during the six months next prior to the
expiration of the term, the Landlord or Landlord's Agents shall have the right
to place notices on the front of said premises, or any part thereof, offering
the premises "to Let" or "For Sale", and the Tenant hereby agrees to permit the
same to remain thereon without hindrance or molestation.

                                   ARTICLE 10
                               Vacancy or Eviction

         That if the said premises, or any part thereof, shall become vacant
during the said term, or should Tenant be evicted by summary proceedings or
otherwise, the Landlord or Landlord's representatives may re-enter the same,
either by force or otherwise, without being liable to prosecution therefor; and
re-let the said premises as the Agent of the said Tenant and receive the rent
thereof; applying the same, first to the payment of such expenses as the
Landlord may be put to in re-entering and then to the payment of the rent due by
these presents; it being understood that the Tenant shall remain liable for any
deficiencies.

                                      -3-
<PAGE>

                                   ARTICLE 11
           Replacement of Glass and Damage Due to Tenant's Negligence

         Tenant shall replace any and all broken glass in and about the demised
premises. Landlord may insure, and keep insured, all plate glass in the demised
premises for and in the name of Landlord. Damage and injury to the said
premises, caused by the carelessness or improper conduct on the part of the said
Tenant or the Tenant's agents or employees shall be repaired as speedily as
possible by the Tenant at the Tenant's own cost and expense.

                                   ARTICLE 12
                             Obstruction Of Premises

         That the Tenant shall neither encumber, nor obstruct the sidewalk in
front of, entrance to or hall and stairs of said building, other common areas,
parking areas or driveways, nor allow the same to be obstructed or encumbered in
any manner without Landlord's written consent.

                                   ARTICLE 13
                                      Signs

         The Tenant shall neither place, nor cause, nor allow to be placed, any
sign or signs of any kind whatsoever at, in or about the entrance to said
premises nor any other part of same except in or at such place or places as may
be indicated by the said Landlord and consented to by Landlord in writing.
Landlord hereby consents to the placement of a sign on the outside door of the
premises which sign shall be of the same type as those signs used by other
Tenants and in case the Landlord or Landlord's representatives shall deem it
necessary to remove any such sign or signs in order to paint or to make any
other repairs, alterations or improvements in or upon said premises or the
building wherein same is situated or any part thereof, the Landlord shall have
the right to do so, providing the same be removed and replaced at the Landlord's
expense whenever the said repairs, alterations or improvements shall have been
completed. Landlord will provide a Directory of Tenants in an appropriate place
on the property which the demised premises are located.

                                   ARTICLE 14
                      Landlord's Non-Liability for Damages

         It is expressly agreed and understood by and between the parties to
this agreement, that the Landlord shall not be liable for any damage or injury
to person or property caused by or resulting from steam, electricity, gas,
water, rain, ice or snow, or any leak or flow from or into any part of said
building, except as may be caused by the negligence of Landlord or its Agents or
Employees. Landlord shall not be liable for any damage or injury resulting or
arising from any other cause or happening whatsoever that is not caused by the
negligence or other acts or omissions of Landlord or its Agents or Employees.

                                      -4-
<PAGE>

                                   ARTICLE 15
                                  Subordination

         That this lease shall not be a lien against said premises in respect to
any mortgages that are now on or that hereafter may be placed against said
premises, and that the recording of such mortgage or mortgages shall have
preference and precedence and be superior and prior in lien of this lease
irrespective of the date of recording and the Tenant agrees to execute any
instrument without cost, which may be deemed necessary or desirable to further
effect the subordination of this lease to any such mortgage or mortgages, and a
refusal to execute such instruments shall entitle the Landlord, or the
Landlord's assigns and legal representatives to the option of cancelling this
lease without incurring any expense or damage, and the term hereby granted is
expressly limited accordingly. In the event that Landlord procures mortgage
loans or recasts the existing mortgage loan on said premises, Tenant agrees to
furnish to Landlord on request, copies of its most recent financial statements
prepared by the Certified Public Accountant regularly retained by it.

                                   ARTICLE 16
                                Security Deposit

         16.1. The Landlord hereby acknowledges receipt of $ N/A which it is to
be placed in an interest bearing account and is to be retained as security for
the faithful performance of all of the covenants, conditions and agreements to
this lease, but in no event shall Landlord be obliged to apply same on rents or
other charges in arrears or damages for the Tenant's failure to perform said
covenants, conditions and agreements; the Landlord may so apply the security at
its option; and the Landlord's right to the possession of the premises for
non-payment of rent or for any other reason shall not in any event be affected
by reason of the fact that Landlord holds this security. The said sum if not
applied toward the payment of rent in arrears or toward the payment of damages
suffered by Landlord by reason of the Tenant's breach of the covenants,
conditions and agreements of this lease is to be returned to the tenant when
this lease is terminated, according to these terms, and in no event is the said
security to be returned until the Tenant has vacated the premises and delivered
possession to the Landlord.

         16.2. In the event that the Landlord repossesses itself of said
premises because of the Tenant's default or because of the Tenant's failure to
carry out the covenants, conditions and agreements of this lease, the Landlord
may apply the said security on all damages suffered to the date of repossession
and may retain the said security to apply on such damages as may be suffered or
shall accrue thereafter by reason of the Tenant's default or breach. The
Landlord shall keep the said security as a separate fund. The security deposited
under this lease shall not be mortgaged, assigned, pledged, or encumbered by
Tenant without the written consent of Landlord. In the event of filing by or
against Tenant of a petition in bankruptcy or assignment for the benefit of
creditors, or upon the insolvency of Tenant, title to the monies paid over to
Landlord as security shall vest in the Landlord free and clear of any claims of
the Trustees in bankruptcy, assignee for the benefit of creditors or Receiver
that may be appointed for the insolvent Tenant.

                                      -5-
<PAGE>

         16.3. In the event of a bona fide sale, subject to this lease, the
Landlord shall have the right to transfer the security to the vendee for the
benefit of the Tenant upon such transfer and Landlord shall be considered
released by the Tenant of all liability for the return of said security, and it
is agreed that this shall apply to every transfer or assignment made of the
security to the new Landlord.

                                   ARTICLE 17
                       Impossibility of Insurance Coverage

         17.1. It is expressly understood and agreed that if for any reason it
shall be impossible to obtain fire insurance and extended coverage on the
buildings and improvements on the demised premises in an amount, and in the
form, and in fire insurance companies acceptable to the Landlord the Landlord
may, if the Landlord so elects, at any time thereafter terminate this lease and
the term thereof, on giving to the Tenant three days' notice in writing of
Landlord's intention so to do and upon the giving of such notice, this lease and
the term thereof shall terminate and come to an end. In the event that Tenant's
occupancy causes any increase in premium for the fire and extended coverage
insurance rates on the demised premises or the balance of the building in which
Tenant's demised premises are located, Tenant shall pay, as additional rent, the
additional premium on said fire and extended coverage insurance. Bills for such
additional premiums, if any, shall be rendered by Landlord to Tenant at such
time as Landlord shall elect, and shall be due and payable by Tenant when
rendered; and the amount thereof shall be deemed to be and paid as additional
rent.

         17.2. That the Tenant will not nor will the Tenant permit other tenants
or other persons to do anything in said premises or bring anything into said
premises, or permit anything to be brought into said premises or to be kept
therein, which will in any way increase the rate of fire insurance on said
demised premises, nor use the demised premises or any part thereof, nor suffer
or permit their use for any business or purpose which would cause an increase in
the rate of fire insurance on said building, and the Tenant agrees to pay on
demand any such increase.

                                   ARTICLE 18
                               Tenant's Insurance

         At all times after the execution of this lease, Tenant shall take out
and keep in force, at its expense:

         18.1. Tenant's Insurance

                  (a) Public liability insurance, including insurance against
assumed or contractual liability with respect to the premises, to afford
protection to the limit, for each occurrence, of not less than one million
dollars ($1,000,000) with respect to personal injury or death, and five hundred
thousand dollars ($500,000) with respect to property damages; and

                  (b) All-risk casualty insurance, written at replacement cost
value and with replacement cost endorsement, covering all of Tenant's personal
property in the premises (including, without limitation, inventory, trade
fixtures, floor coverings, furniture and other property removable by Tenant
under the provisions of this lease) and all leasehold improvements installed in
the premises by Tenant; and

                                      -6-
<PAGE>

                  (c) If and to the extent required by law, worker's
compensation or similar insurance in form and amounts required by law.

         18.2. Tenant's Contractor's Insurance

                  (a) Comprehensive general liability insurance, including
contractor's liability coverage, contractual liability coverage, completed
operations coverage, broad form property damage endorsement and contractor's
protective liability coverage, to afford protection to the limit, of each
occurrence, with respect to property damage; and

                  (b) Worker's compensation or similar insurance in form and
amounts required by law.

         18.3. Policy Requirements

                  (a) The company or companies writing any insurance which
Tenant is required to take out and maintain shall be licensed to do business in
New Jersey. Each policy evidencing such insurance shall name Landlord or its
designee as additional insured and shall also contain a provision by which the
insurer agrees that such policy shall not be cancelled except after thirty (30)
days written notice to Landlord or its designee. Each such policy, or a
certificate thereof, shall be deposited with Landlord by Tenant promptly upon
commencement of Tenant's obligation to procure the same. If Tenant shall fail to
perform any of its obligations under this ARTICLE, Landlord may perform the same
and the cost of same shall be deemed additional rental and shall be payable by
Tenant upon Landlord's demand.

                                   ARTICLE 19
                       Conditional Limitations and Default

         19.1. If at any time during the term of this Lease:

                  (a) If Tenant shall file a petition in bankruptcy or
insolvency or for reorganization or arrangement or for the appointment of a
receiver of all or a portion of Tenant's property or, such filing shall continue
for a period of ten days.

                  (b) Any involuntary petition of the kind referred to in
subdivision (a) of this section shall be filed against Tenant and such petition
shall not be calcite or withdrawn within ninety (90) days after the date of
filing thereof, or

                  (c) Tenant shall be adjudicated a bankrupt by any court, or

                  (d) Tenant shall make an assignment for the benefit of
creditors, or

                  (e) A permanent receiver shall be appointed for the property
of Tenant by order of a court of competent jurisdiction by reason of the
insolvency of Tenant (except where such receiver shall be appointed in an
involuntary proceeding, if he shall not be withdrawn within ninety (90) days
after the date of his appointment), or

                                      -7-
<PAGE>

                  (f) The operation of Tenant's business shall be suspended by
any authority having jurisdiction thereover or the conduct and operation of
Tenant's business shall be taken over by (i) a receiver appointed by order of a
court of competent jurisdiction or (ii) an agency or governmental authority
having jurisdiction thereover, then Landlord, at Landlord's option may terminate
this Lease on ten (10) days' notice to Tenant, and upon such termination, Tenant
shall quit and surrender the Leased Premises to Landlord. The word "Tenant" as
used in this section shall be deemed to mean the Tenant herein named, or in the
event of an assignment of this Lease in accordance with the provisions of
ARTICLE VIII, such word shall be deemed to also mean the ten assignee.

         19.2. If this Lease shall terminate pursuant to the provisions of
Section 19.1:

                  (a) Landlord shall be entitled to receive from Tenant arrears
in Basic Annual Rent and Additional Rent and, in addition thereto as liquidated
damages, an amount equal to the balance of rentals due under the remaining term
of the Lease, the remaining rentals shall be accelerated hereby plus any other
damages to which Landlord may be entitled including, but not limited to,
reasonable legal fees. Tenant shall receive a credit for any monies including,
but not limited to, all rents received by Landlord in mitigation of such default
and Landlord shall make best efforts to re-let the premises. All funds received
shall first go to pay Landlord's costs and expenses of mitigating the damages,
then towards Tenant's credit.

         19.3. (a) If Tenant shall fail to pay any Basic Annual Rent or
Additional Rent when due and payable hereunder, and any such default shall
continue for a period of ten (10) days after such payment is due; or

                                      -8-
<PAGE>

                  (b) If Tenant shall be in default in the performance of any of
the other terms, covenants, and conditions of this Lease:

                           (i) and such default shall not have been remedied
within ten (10) days after notice by Landlord to Tenant specifying such default
and requiring it to be remedied; or

                           (ii) where such default reasonably cannot be remedied
within such period of ten (10) days, if Tenant shall not have commenced the
remedying thereof with such period of time and shall not be proceeding with due
diligence to remedy it;

         Then Landlord, at its election, may terminate this Lease on ten (10)
days' notice to Tenant, and upon such termination Tenant shall quit and
surrender the Leased Premises to Landlord.

         19.4. If this Lease shall terminate as provided in Section 19.3, or if
Tenant shall be in default in the payment of Basic Annual Rent or Additional
Rent when due and payable and such default shall continue for a period of ten
(10) days after such payment is due:

                  (a) Landlord may re-enter and resume possession of the Leased
Premises and remove all persons and property therefrom either by summary
dispossess proceedings or by a suitable action or proceeding at law or in equity
or by peaceable self-help or otherwise, without being liable for any damages
therefor; and

                  (b) Landlord may relet the whole or any part of the Leased
Premises for a period equal to, greater or less than the remainder of the then
term of this Lease at such rental and upon such terms and conditions as Landlord
shall deem reasonable to any tenant it may deem suitable and for any use and
purpose it may deem appropriate. Landlord shall use its best efforts in
re-letting the premises, and, provided Landlord uses such best efforts. Landlord
shall not be liable in any respect for failure to relet the Leased Premises or,
in the event of such reletting, for failure to collect the rent thereunder and
any sums received by Landlord on a reletting in excess of the rent reserved in
this Lease shall belong to Landlord.

         19.5. If this Lease shall terminate as provided in this ARTICLE or by
summary dispossess proceedings (except as to any termination under Section 35),
Landlord shall be entitled to recover from Tenant as damages in addition to
arrears in Basic Annual Rent and Additional Rent,

                  (a) (i) amounts equal to all expenses reasonably incurred by
Landlord in recovering possession of the Leased Premises and in connection with
the reletting of the Leased Premises including, without limitation, reasonable
legal fees, the cost of repairing, renovating or remodeling the Leased Premises,
and to the condition they were in at the inception of the Lease, reasonable wear
and tear excepted;

                           (ii) broker's commissions incurred by Landlord in
reletting the Leased Premises which amounts set forth in this subsection shall
be due and payable by Tenant to Landlord at such time or times as they shall
have been incurred; and

                  (b) amounts equal to the deficiency between the Basic Annual
Rent and Additional Rent which would have become due and payable had this Lease
not terminated and the net amount, if any, of rent and Additional Rent collected
by Landlord on reletting the Leased Premises. The amounts specified in this
subsection shall be due and payable by Tenant on the several days on which such
Basis Annual Rent and Additional Rent would have become due and payable had this
Lease not terminated. Tenant consents that Landlord shall be entitled to
institute separate suits or actions or proceedings and hereby waives the right
to enforce or assert the rule against splitting a cause of an action as a
defense thereto. Landlord, at its election, which shall be exercised by the
service of a notice on Tenant, may collect from Tenant as damages and Tenant
shall pay in lieu of the sums becoming due under the provisions of subsection
(b) hereof after the service of such notice, an amount equal to the difference
between the Basic Annual Rent and Additional Rent which would become due and
payable had this Lease not terminated (from the date of the service of such
notice to the end of the term of this Lease which would have been in effect if
it had not terminated) and the maximum allowed by statute or rule or law in
effect at the time when in governing the proceedings in which such damages are
to be proved. Tenant shall be credited with any rental received from a new
tenant.

         19.6. The words "re-enter" and "re-entry" as used in this ARTICLE are
not restricted to their technical legal meaning.

         19.7. Tenant hereby waives the service of any notice in writing by
Landlord of its intention to re-enter except as otherwise provided in this
Lease.

                                      -9-
<PAGE>

         19.8. If this Lease shall terminate as provided in this ARTICLE or by
summary proceedings or otherwise, Landlord, in addition to any other rights
under this ARTICLE, shall be entitled to recover as damages;

                  (a) the cost of performing any work required to be done by
Tenant under this Lease and all damages resulting from Tenant's default in
performing such work, and

                  (b) the cost of replacing the Leased Premises in the same
condition as that in which Tenant is required to surrender them to Landlord
under this lease.

         19.9. At any time (a) within fifteen (15) days prior to the expiration
of the term of this Lease or (b) after Landlord shall have served any notice of
termination of this Lease, as provided in this Lease, but prior to the date of
termination, or (c) after Landlord shall have commenced a summary dispossess
proceeding or an appropriate action or proceeding to recover possession of the
Leased Premises but prior to the termination of this Lease by reason of the
issuance of a warrant in the dispossess proceeding or the entry of a judgment in
such other action or proceeding, any or all subleases theretofore executed by
Tenant and the rent payable thereunder shall, at the option of Landlord (such
option to be exercised by notice to Tenant), be assigned by Tenant to Landlord
as of the date of the service of such notice. Such assignment shall be deemed to
be and shall be effected as of the date of service of such notice without
execution by Tenant of any instrument. However, Tenant, at Landlord's request,
shall execute, acknowledge and deliver to Landlord an instrument in recordable
form, confirming such assignment and, in the event that Tenant shall fail or
refuse to execute, acknowledge or deliver such instrument, Landlord in addition
to all other rights and remedies it may have by reason of such failure or
refusal, may, as the agent or attorney-in-fact of Tenant, execute, acknowledge
and deliver it and Tenant hereby irrevocably nominates, constitutes and appoints
Landlord as Tenant's proper and legal attorney-in-fact for such purpose, as
coupled with an interest, hereby ratifying all that Landlord may do as such
attorney-in-fact of Tenant, and such assignment shall recall that it has made
pursuant to this article.

                                   ARTICLE 20
                           Abatement of Trade Fixtures

         If after default in payment of rent or violation of any other provision
of this lease, or upon the expiration of this lease or upon abandonment of the
premises by Tenant, the Tenant moves out or is dispossessed, Tenant shall not be
permitted to remove any trade fixtures or other property from said premises
until said default or violation is cured. Should said default or violation not
be cured within one month of its occurrence, or upon abandonment of the premises
said fixtures shall become the property of Landlord.

                                   ARTICLE 21
                               Strict Performance

         The failure of the Landlord to insist upon strict performance of any of
the covenants or conditions of this lease or to exercise any option herein
conferred in any one or more instances, shall not be construed as a waiver or
relinquishment for the future of any such covenants, conditions or options, but
the same shall be and remain in full force and effect.

                                      -10-
<PAGE>

                                   ARTICLE 22
                              Re-Entry of Landlord

         In the event that the relation of the Landlord and Tenant may cease or
terminate by reason of the re-entry of the Landlord under the terms and
covenants contained in this lease or by the ejectment of the Tenant by summary
proceedings or otherwise, or after the abandonment of the premises by the
Tenant, it is hereby agreed that the Tenant shall remain liable for all unpaid
sums covering the balance of said term and shall pay said amounts promptly.

                                   ARTICLE 23
                                  Condemnation

         In the event that the premises shall be taken for public use by the
city, state, federal government, public authority or other corporation having
the power of eminent domain, then this lease shall terminate as of the date on
which possession thereof shall be taken for such public use, or, at the option
of the Tenant, as of the date on which the premises shall become unsuitable for
Tenant's regular business by reason of such taking; provided, however, that if
only a part of the leased premises shall be so taken, such termination shall be
at the option of Tenant only. If such a taking of only a part of the leased
premises occurs, and Tenant elects not to terminate the lease, there shall be a
proportionate reduction of the Basic Rent and Additional Rent to be paid under
this lease from and after the date such possession is taken for public use.
Tenant shall have the right to participate, directly or indirectly, in any award
for such public taking to the extent that it may have suffered compensable
damage as a Tenant on account of such public taking.

                                   ARTICLE 24
                              Delay in Performance

         This lease and the obligation of Tenant to pay rent hereunder and
perform all of the other covenants and agreements hereunder on part of Tenant to
be performed shall in no way be affected, impaired or excused because Landlord
is unable to supply or is delayed in supplying any service expressly or implied
to be supplied or is unable to make, or is delayed in making any repairs,
addition, alterations, or decorations or is unable to supply or is delayed in
supplying any equipment or fixtures if Landlord is prevented or delayed from so
doing by reason of governmental preemption in connection with a national
Emergency declared by the President of the United States or in connection with
any rule, order or regulation of any department or subdivision thereof of any
governmental agency or by reason of the conditions of supply and demand which
have been or are affected by war or other emergency.

                                   ARTICLE 25
                             Limitation of Liability

         Landlord shall be under no personal liability with respect to any of
the provisions of this lease, and if it is in breach or default with respect to
his obligations or otherwise, under this lease, Tenant shall look solely to the
equity of Landlord in the premises for the satisfaction of Tenant's remedies. It

                                      -11-
<PAGE>

is expressly understood and agreed that Landlord's liability under the terms,
covenants, conditions, warranties and obligations of this lease shall in no
event exceed the loss of its equity in the premises.

                                   ARTICLE 26
                             Delivery of Possession

         DELETED

                                   ARTICLE 27
                               Real Estate Broker

         Tenant represents that it has not contacted or dealt with any real
estate broker, agent or salesman regarding the within lease other than NOT
APPLICABLE and that should any other broker, agent or salesman make claim to a
commission in connection with this transaction, Tenant shall save and hold
harmless Landlord from any such claim and shall, at Tenant's cost and expense
defend against any such claims.

                                   ARTICLE 28
                     Indemnification of Landlord and Tenant

         Landlord and Tenant agree to protect, defend, indemnify and save
harmless each other against and from any and all claims arising from any breach
or default on the part of either party in the performance of any covenant or
agreement on their part to be performed, pursuant to the terms of this lease, or
arising from any act of negligence of either party, or any of its agents,
contractors, servants, employees or licensees, or arising from any accident,
injury or damage whatsoever caused to any person (other than through the fault
of the other party or its agents) occurring during the term of this lease in or
about the demised premises or upon or under the sidewalks and the land adjacent
thereto, and from and against all costs, expenses and liabilities incurred in or
about any such claim or act or proceeding brought thereon, but only to the
extent the losses or liabilities are not covered by insurance; and in case any
action or proceeding be brought against either party by reason of any such
claim, the responsible party upon notice from the responsible party covenants to
resist or defend such action or proceeding by counsel reasonably satisfactory at
the responsible party's sole cost and expense.

                                   ARTICLE 29
                       Termination of Landlord's Liability

         If after Landlord delivers possession of the demised premises to
Tenant, the Landlord conveys the demised premises during the term hereof, the
Landlord shall not thereafter be liable for the covenants and agreements to be
observed and performed by the Landlord hereunder, provided that the grantee of
Landlord has assumed and become liable for the observance and performance of
said covenants and agreements. Nothing herein contained, however, shall relieve
Landlord of any liability which may have been incurred or which may have accrued
prior to any such conveyance.

                                      -12-
<PAGE>

                                   ARTICLE 30
                          Triple Net - Additional Rent

         Tenant shall pay, as additional rent, its "proportionate share", as
hereinafter defined, of "triple nets" over the "basic rent", as hereinafter
defined; due and payable with respect to the building in which the demised
premises are located (hereinafter called "Office Building") and the land
underlying said Office Building.

         Landlord's "operating costs" shall be those of operating and
maintaining the Office Building in a manner deemed by Landlord reasonable and
appropriate and for the best interests of the tenants in the Office Building,
including without limitation, the following:

         30.1. Real estate taxes or any other tax imposed in lieu of real estate
taxes assessed on the Office Building and the land underlying same.

         30.2. All costs and expenses directly related to the Office Building of
managing, operating, repairing, lighting, cleaning, insurance, removing snow,
ice and debris, policing and regulating traffic in the area immediately adjacent
to the Office Building Project and depreciation of machinery and equipment used
for such operation.

         30.3. All costs and expense of replacing paving, curbs, walkways,
landscaping (including replanting and replacing flowers and other planting),
drainage and lighting facilities in the Office Building Project and area
immediately adjacent thereto.

         30.4. Electricity used in lighting common areas of the Office Building
Project, water including water used in fire prevention equipment and sewer.

         30.5. Maintenance, replacement, repair of mechanical and electrical
equipment including heating, ventilating and air-conditioning equipment in the
Office Building Project.

         30.6. Maintenance of common areas of the Office Building Project.

         30.7. Painting, decoration and carpeting of all common areas in the
Office Building Project.

         30.8. All other expenses which would be considered as an expense of
maintaining, operating or repairing the Office Building under sound accounting
principals.

         30.9. Tenant's proportionate share of operating costs for any fiscal
year of Landlord shall be determined as follows: the amount shall be multiplied
by a fraction, the numerator of which is the total number of square feet of the
leased premises and the denominator of which is the total number of square feet
of the leased premises plus Tenant's pro rata share of common areas, and the
denominator of which is the total number of square feet of the office building
and the result shall the percentage of all operating costs payable by Tenant
including electrical and utilities. The Landlord shall bill Tenant for 100% of
the real estate taxes, operating costs, insurance and maintenance as well as the
electrical and utilities and Tenant shall pay the same to Landlord as part of
its monthly rent which shall be billed separately.

                                      -13-
<PAGE>

         30.10. Irrespective of the language contained in ARTICLE 30, the Tenant
shall assume the total obligation in connection with the maintenance of the
building including the replacement of any and all equipment in connection with
the operation of the building. In the event any equipment is required to be
replaced including the HVAC, electrical, plumbing, roof, windows, the total
obligation shall be that of the Tenant.

         30.11. Tenant shall have the right to audit the operating cost of the
Landlord on a yearly basis to determine if they are reasonable and customary.

                                   ARTICLE 31
                         Tenant's Additional Obligation

         Tenant shall as an incident to the within demise at Tenant's cost and
expense. furnish, supply and maintain the following: (a) Water, (b) Sewer, (c)
Exterior Building and Common Area Maintenance, (d) Painting and cleaning,
stripping, sealing, repairing, replacing and remarking paved and unpaved
surfaces, curbs, sidewalks and parking areas and bumpers, (e) sign lighting,
maintenance and repair, (f) trash removal, (g) Maintenance, repair and
replacement costs of the retention ponds located on the project property,
(h)maintenance, repair and replacement of all utilities; pipes, conduit, lines
etc. on the project property, (i) public liability insurance, (j) all risk
insurance (fire and other hazards) including rental abatement insurance in the
amount of one (1) year's minimum rental for the office project, (k) maintenance
of HVAC equipment.

                                   ARTICLE 32
                                Tenant's Services

         Tenant agrees to provide and pay for electric and gas utilities; and
maintain temperature at levels to prevent freezing or boiling of any parts of
the demised premises. Tenant will pay for and utilize a janitorial service for
interior maintenance and removal of trash to Landlord's designated receptacles.
Tenant shall provide on a regular basis all interior maintenance and decorating.

                                   ARTICLE 33
                                     Notices

         The receipt by Landlord of a written notice and/or demand and/or
request sent by Registered or Certified Mail in a sealed, postpaid envelope,
addressed to the Landlord, BYN, L.L.C. at c/o Hofing Management, 928 West State
Street, Trenton, New Jersey 08618, and the receipt by Tenant of a written notice
and/or demand and/or request sent by Registered or Certified Mail in a sealed,
post paid envelope, addressed to Tenant at Yardville National Bank, Attn: Mr.
Frank Durand, Box 8487, Trenton, New Jersey 08650 and a written notice and/or
demand and/or request sent by Registered or Certified Mail in a sealed, post
paid envelope, addressed to Daniel J. O'Donnell, Esquire, Destribates Campbell,
DeSantis, Mages & O'Donnell, 247 White Horse Avenue, Trenton, New Jersey 08610
shall be sufficient notice and/or demand and/or request in any case arising
under this lease. The return receipt shall be conclusive evidence of the receipt
by Landlord or Tenant, as the case may be, of such notice demand or request

                                      -14-
<PAGE>

         The above addresses may be changed at any time hereafter by giving
notice in the manner provided.

                                   ARTICLE 34
                        Right to Lock Premises on Default

         In the event that the relation of Landlord and Tenant shall cease or
terminate by reason of the re-entry of the Landlord under the terms and
covenants contained in this lease or by the eviction or ejectment of Tenant on
summary proceedings, or otherwise, or after abandonment of the premises by
Tenant, Landlord, in addition to his other rights hereunder shall have the right
to lock said premises and at Landlord's option may keep same locked until said
default is cured and Landlord shall have the right to sell all fixtures, goods
and materials of Tenant at said premises and apply the proceeds thereof against
unpaid rent. No action under this paragraph shall be deemed to waive Landlord's
rights as set forth in other paragraphs of this lease.

                                   ARTICLE 35
                                Proration of Rent

         In the event that this lease commences on other than the first day of a
month, Tenant shall, together with the second month's rent pay to the Landlord
the prorated rent for the portion of the month, if any, preceding the first full
calendar month of the term of this lease.

                                   ARTICLE 36
                                 Quiet Enjoyment

         And the said Landlord both covenant that the said Tenant on paying the
said yearly rent, and performing the covenants aforesaid, shall and may
peacefully and quietly have, hold and enjoy the said demised premises for the
term aforesaid, provided however, that this covenant shall be conditioned upon
the retention of title to the premises by the Landlord.

                                   ARTICLE 37
                            Covenants to Bind Parties

         And it is further understood and agreed, that the covenants and
agreements herein contained are binding on the parties hereto and upon their
respective successors, heirs, executors, administrators and assigns.

         It is further expressly agreed that the words used in the singular
shall include words in the plural where the text of this instrument so requires.

                                   ARTICLE 38
                      Notification of Default to Mortgagee

         In the event of a default by the Lessor hereunder, the Mortgagee will
be notified in writing, and it is understood that the Mortgagee will have the
right to cure said default within thirty (30) days of notification by the
Lessee.

                                      -15-
<PAGE>

                                   ARTICLE 39
                              Waiver of Subrogation

         Landlord and Tenant hereby releases the other from any and all
liability or responsibility (to the other or anyone claiming through or under
them by the way of subrogation or otherwise) under fire and extended coverage or
supplementary contract casualties, if such fire or other casualty shall have
been caused by the fault or negligence of the other party, or anyone for whom
such party may be responsible; provided, however, that, except as otherwise
provided in this lease, this release shall be applicable and in force and effect
only with respect to loss or damage occurring during such time as the releasor's
policies shall contain a clause or endorsement to the effect that any such
release shall not adversely affect or impair said policies or prejudice the
right of the releasor to recover thereunder. Each of Landlord and Tenant agrees
that its policies will include such a clause or endorsement so long as the same
shall be obtainable without extra cost, or if such cost shall be charged
therefore, so long as the other party pays such extra cost, if extra cost shall
be chargeable therefore, each party shall notify the other party therefore and
of the amount of the extra cost, and the other party shall be obligated to pay
the extra cost unless, within ten (10) days after such notice, it elects not to
be obligated so to do by written notice to the original party. If such clause or
endorsement is not available, or if either party should not desire the coverage
at extra cost to it, then the provisions of this ARTICLE shall not apply to the
policy or policies in question.

                                   ARTICLE 40
                                Mechanic's Liens

         Tenant shall not suffer or permit any mechanic's liens to be filed
against the fee of the demised premises, nor against the Tenant's leasehold
interest therein by reason of work, labor services or materials supplied or
claimed or have been supplied to Tenant or anyone holding the demised premises
or any part thereof through or under Tenant and Tenant agrees to indemnify
Landlord against such liens. If any such mechanic's lien shall at any time be
filed against the demised premises, Tenant shall with 15 days after notice of
the filing thereof, cause the same to be discharged of record; provided,
however, that the Tenant shall have the right to contest the amount or validity,
in whole or in part, of any such lien by appropriate proceedings but in such
event, Tenant shall notify Landlord in writing and if requested by Landlord
shall promptly bond such lien with a responsible surety company. Tenant shall
prosecute such proceedings with all due diligence and dispatch.

         Nothing herein contained shall be construed as a consent on the part of
Landlord to subject the estate of the Landlord to liability under the Mechanic's
Lien Law of the State of New Jersey, it being expressly understood that the
Landlord's estate shall not be subject to such liability.

                                   ARTICLE 41
                       Certificates by Tenant and Landlord

         Tenant agrees at any time and from time to time upon not less than 15
days' notice by Landlord to execute, acknowledge and deliver to Landlord a
statement in writing certifying (1) that this lease is unmodified and in full

                                      -16-
<PAGE>

force and effect (or if there have been modifications, that the same is in full
force and effect as modified and stating the modification, (2) whether or not
there are then existing any offsets or defenses against the enforcement of any
of the terms, covenants or conditions hereof upon the part of Tenant to be
performed (and is so specifying the same), and (3) the dates to which the basic
rent and other charges have been paid in advance, if any, it being intended that
any such statement delivered pursuant to this Section may be relied upon by any
prospective purchaser or mortgagee of the fee of the demised premises or any
assignee of any such mortgagee.

                                   ARTICLE 42
                Cumulative Remedies - No Waiver - No Oral Change

         The specific remedies to which Landlord or Tenant may resort under the
terms of this lease are cumulative and are not intended to be exclusive of any
other remedies or means of redress to which they may be lawfully entitled in
case any breach or threatened breach by either of them of any provision of this
lease. The failure of Landlord to insist in any one or more cases upon the
strict performance of any of the covenants of this lease, or to exercise any
option herein contained, shall not be construed as a waiver or relinquishment
for the future of such covenant or option. A receipt by Landlord of basic rent
with knowledge of the breach of any covenant hereof shall not be deemed a waiver
of such breach, and no waiver, change, modification or discharge by either party
hereto of any provision in this lease shall be deemed to have been made or shall
be effective unless expressed in writing and signed by both Landlord and Tenant.
In addition to the other remedies in this lease provided, Landlord and Tenant
shall be entitled to the restraint by injunction of the violation, or attempted
or threatened violation of any of the covenants, conditions or provisions of
this lease, or to a decree compelling performance of any of such covenants,
conditions or provisions.

                                   ARTICLE 43
                                 Change of Terms

         In the event that a prospective mortgagee of the demised premises shall
request a change in the language or terms of the lease, or the execution of any
paper in connection therewith, the Tenant shall agree to such change provided
the same shall not materially and adversely affect rights of the Tenant under
this lease or increase Tenant's cost for Basic Rent or Additional Rent.

                                   ARTICLE 44
                                   Attornment

         Tenant shall, if requested by a first mortgagee of the premises at any
time, or in the event of any proceedings are brought for the foreclosure of, or
in the event of exercise of the power of sale under any mortgage made by the
Landlord covering the demised premises, attorn to the purchaser upon any such
foreclosure or sale and recognize such purchaser as the Landlord under this
lease.

                                      -17-
<PAGE>

                                   ARTICLE 45
                                 Applicable Law

         This Lease shall be governed by and construed under the laws of the
State of New Jersey.

                                   ARTICLE 46
                                  Holding Over

         In the event that the Tenant shall remain in the demised premises after
the expiration of the term of this lease without having executed a new written
lease with the Landlord, or having exercised its option to renew in accordance
with ARTICLE 51, such holding over shall not constitute a renewal or extension
of this lease. The Landlord may, at its option, elect to treat the Tenant as one
who has not removed at the end of its term, and thereupon be entitled to all the
remedies against the Tenant provided by law in that situation, or the Landlord
may elect, at its option, to construe such holding over as a tenancy from month
to month, subject to all the terms and conditions of this lease, except as to
duration thereof, and rent shall be due pursuant to statute for such case made
and provided that the holdover rent shall not be less than 120% of the last
month's rent covered under the base and or option term of the lease. Landlord
shall give Tenant six (6) months notice, in writing of its intention to charge
Tenant hold over rent on the premises. Should Tenant fail to give Landlord
acknowledgment of Tenant's lease termination, within sixty (60) days of receipt
of said notice, Tenant shall be liable to Landlord for an additional month's
rental or proportionate part thereof for every month or proportionate part
thereof that Tenant fails to give the aforesaid notice, at one hundred twenty
(120%) percent of it's last month's rent.

                                   ARTICLE 47
                            Memorandum and Recording

         This lease shall not be recorded under penalty of damages and
forfeiture. At the request of either party, the other party shall execute a
memorandum of lease setting forth a description of the demised premises and the
term.

                                   ARTICLE 48
                                Utility Easements

         Unless such easements reduce Tenant's useable space, Landlord shall
have the right to grant easements and/or utilize areas of the demised premises
for the installation of utilities, provided, however, that the use of said
easement areas for said purposes does not substantially interfere with the
operation of Tenant's business. Tenant shall not be entitled to any compensation
or abatement of rent in regard thereto.

         If the leased property consists of one or more floors, or portions
thereof, of a building, and at the time of the making of this lease there are
upon any such floors, or portions thereof, hallways, passageways, stairways,
elevators, or other means of access, although within the leased property, shall
be reserved for the use of the Landlord and all tenants in the building and
shall not be considered a portion of the leased property.

                                      -18-
<PAGE>

                                   ARTICLE 49
                              Rules and Regulations

         DELETED

                                   ARTICLE 50
                              Building Improvements

                             See Attached Exhibit C

                                   ARTICLE 51
                                 Renewal Option

         The Tenant shall have the right to renew this Lease Agreement for an
additional (see Lease Addendum) beyond the initial (see Lease Addendum) term.
The option shall commence provided the following conditions have been complied
with:

         51.1. The Tenant is not then in default with all terms and conditions
of this Lease Agreement; and

         51.2. The Tenant shall notify the Landlord in writing not later then
six months prior to the expiration of the initial Lease Agreement of its desire
to renew, and agrees to sign a new lease upon the same terms and conditions as
contained in the original Lease Agreement, except as to the duration dates and
the exclusion of any further option to renew.

                                   ARTICLE 52
                               Notice Requirement

         52.1. Sending of Notices

         Any notice, request, demand, approval or consent given, or required to
be given, under this lease shall be in writing and shall be deemed to have been
given on the (3rd) day following the day on which the same shall have been
mailed by United States registered or certified mail, return receipt requested,
with all postal charges prepaid, or if hand delivered shall be deemed given upon
delivery. All notices shall be addressed, if intended for Landlord, BYN, L.L.C.
to c/o Hofing Management. 928 West State St., Trenton, New Jersey 08618 or, if
intended for the Tenant, to Yardville National Bank. P.O. Box 8487, Trenton, New
Jersey. Either party may, at any time, change its address for the above purposes
by sending a notice to the other party stating the change of and setting forth
the new address.

         52.2. Notice to Mortgagees

         If any mortgagee shall notify Tenant that it is the holder of a
mortgage affecting the premises, no notice, request or demand thereafter sent by
Tenant to Landlord shall be effective unless and until a copy of the same shall
also be sent to such mortgagee at such address as such mortgagee shall
designate.

                                      -19-
<PAGE>

                                   ARTICLE 53
                                  Common Areas

         53.1. Management and Operation of Common Areas

         Tenant will operate and maintain or will cause to be operated and
maintained the common areas including all parking areas in a manner deemed by
Landlord to be reasonable and appropriate and in the best interest of the
building. Landlord shall have the right (i) to establish, modify and enforce
reasonable rules and regulations with respect to the common areas; (ii) to enter
into, modify and terminate easement and other agreements pertaining to the use
and maintenance of the parking areas and common areas; (iii) to close
temporarily any or all portions of the common areas; (iv) to discourage
non-customer parking; and (v) to do and perform such other acts in and to said
areas and improvements as, in the exercise of good business judgment, Landlord
shall determine to be advisable. Landlord agrees that it shall use its best
efforts to make available to Tenant's employees convenient parking facilities in
reasonable proximity to the premises.

                     [THIS SECTION INTENTIONALLY LEFT BLANK]

                                      -20-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have affixed their hands and
seals or caused these presents to be signed and sealed by their proper corporate
offices the day and year first above written.

Witness/Attest:                      Landlord: BYN, L.L.C., a NJ Corporation

  /s/ Daniel J. O'Donnell            By: /s/ Sidney L. Hofing
------------------------------          ----------------------------------------
                                             Sidney L. Hofing
                                             Managing Member

Witness/Attest:                      Tenant: Yardville National Bank, a NJ
                                             National Bank

  /s/ Daniel J. O'Donnell            By: /s/ Patrick M. Ryan
------------------------------          ----------------------------------------
                                             Patrick M. Ryan
                                             President-CEO

                                      -21-
<PAGE>

                                 ACKNOWLEDGMENT
                                 --------------

State of New Jersey                         )
                                            )        SS:
County of Mercer                            )

         Be It Remembered, that on this 9th day of April, 2001, before me, the
subscriber, personally appeared SIDNEY L. HOFING, who I am satisfied, is the
person named in and who executed the within instrument, and thereupon he
acknowledged that he signed, sealed and delivered the same as his act and deed,
for the uses and purposes therein expressed.

                                            /s/ Daniel J. O'Donnell
                                            ------------------------------------

My Commission Expires:

State of New Jersey                         )
                                            )        SS:
County of Mercer                            )

         Be It Remembered, that on this 9th day of April, 2001 , before me the
subscriber, personally appeared PATRICK M. RYAN, who I ant satisfied, is the
person named in and who executed the within instrument, and thereupon he
acknowledged that he signed, sealed and delivered the same as his act and deed,
for the uses and purposes therein expressed.

                                            /s/ Daniel J. O'Donnell
                                            ------------------------------------

My Commission Expires:

<PAGE>

                                 Lease Addendum
                                 --------------

         This Lease Addendum shall supplement the Lease Agreement between BYN,
L.L.C. and the Yardville National Bank dated May 1, 2001 for the premises
located at 1041 Route 206, Bordentown Township, New Jersey. In the event of a
conflict between this Addendum and the Lease Agreement, the Addendum shall
prevail.

         1. The initial base year rental shall be $64,000.

         2. The Landlord shall be obligated to pay to the Tenant as of closing
on April 6, the following sums:

            a)     Property Acquisition                  $421,000

            b)     Exterior Costs                         110,325

            c)     Soft Costs                              10,000
                                                         --------

                   Total Purchase Price                  $541,325

         3. The initial base year rental shall be $64,000 due and payable on May
1, 2001. Total monthly rental shall be $5,333.33.

         4. The initial base rental shall increase every five (5) years by 12%.

         5. The Lease Agreement shall be for a length often (10) years with
three (3) five-year options.

         Years 1 - 10 Initial lease term

         Years 11 - 15 First option period

         Years 16 - 20 Second option period

         Years 21 - 25 Third option period

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have affixed their hands and
seals or caused these present to be signed and sealed by their proper corporate
offices this 9th day of April, 2001.

Witness/Attest:                      Landlord: BYN, L.L.C., a NJ Corporation

  /s/ Daniel J. O'Donnell            By: /s/ Sidney L. Hofing
------------------------------          ----------------------------------------
                                             Sidney L. Hofing
                                             Managing Member

Witness/Attest:                      Tenant: Yardville National Bank, a NJ
                                             National Bank

                                     By:
  /s/ Daniel J. O'Donnell                /s/ Patrick M. Ryan
------------------------------          ----------------------------------------
                                             Patrick M. Ryan
                                             President-CEO

<PAGE>

                              SECOND LEASE ADDENDUM
                              ---------------------

Landlord:          BYN, LLC

Tenant:  Yardville National Bank

Date of Lease:     April 9, 2001

Property:          1041 Route 206, Bordentown Township, NJ

This Second Lease Addendum shall supplement the Lease Agreement and First Lease
Addendum between BYN, LLC and Yardville National Bank Dated April 9, 2001 for
the property located at 1041 Route 206, Bordentown Township, New Jersey. In the
event of a conflict between this Second Lease Addendum and the Lease Agreement
or First Lease Addendum, the Second Lease Addendum shall prevail.

         1. ARTICLE 29 of the Lease Agreement should be deleted in its entirety
and replaced with the following:

                                   ARTICLE 54
                                 Additional Rent

         Tenant shall pay, as additional rent, the following:

      1. Real estate or any other tax imposed in lieu of real estate taxes
         assessed on the Office Building and the land underlying same.

      2. All risk insurance (fire and other hazard) including rental abatement
         insurance in the amount of one (1) year's minimal rental for the office
         project.

         2. ARTICLE 30 should be modified to delete the language in subparagraph
0) and replace said language with the following: "removal of all snow, ice and
debris."

Agreed and accepted this 14 day of May,2001.

Attest/Witness:                            BYN, LLC

  /s/ Daniel J. O'Donnell                  By: /s/ Sidney L. Hofing
------------------------------                ----------------------------------
                                                 Sidney L. Hofing
                                                 Managing Member

Attest/Witness:                                Tenant: Yardville National Bank

  /s/ Daniel J. O'Donnell                  By: /s/ Patrick M. Ryan
------------------------------                ----------------------------------
                                               Patrick M. Ryan
                                               President-CEO

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