Document:

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                                                                   EXHIBIT 4.118

Prepared by and mail to:

Clifford Chance US LLP
200 Park Avenue
New York, New York 10166
Attn: Dawn E. Goldberg, Esq.

                                                  ALLEGHENY COUNTY, PENNSYLVANIA

                     SECOND OPEN-END MORTGAGE, ASSIGNMENT OF
                     LEASES AND RENTS AND SECURITY AGREEMENT

                     [This Mortgage Secures Future Advances]

                  THIS SECOND OPEN-END MORTGAGE, ASSIGNMENT OF LEASES AND RENTS
AND SECURITY AGREEMENT (this "Instrument") entered into as of the 15th day of
May, 2003 but effective as of the 19th day of May, 2003 by MARCONI
COMMUNICATIONS, INC. (formerly known as FORE Systems, Inc.), a Delaware
corporation ("Mortgagor"), having an address at c/o Marconi Corporation plc, One
Bruton Street, London W1J 6AQ United Kingdom, to THE LAW DEBENTURE TRUST
CORPORATION p.l.c., a public limited company organized under the laws of England
and Wales, as Security Trustee for the Secured Creditors (as defined in the
Intercreditor Agreement) (together with any co-trustee, co-agent or other entity
appointed pursuant to clause 16 of the Intercreditor Agreement (as defined
below)) ("Mortgagee") under the Security Trust and Intercreditor Deed dated the
date hereof and made among Marconi Corporation plc as Issuer; Mortgagee; the
persons listed in Schedule 1 thereto as Guarantors; Law Debenture Trust Company
of New York as Senior Note Trustee; JPMorgan Chase Bank as Junior Note Trustee;
HSBC Bank plc as New Bonding Facility Agent; The Bank of New York as Depositary,
Paying Agent and Registrar; the persons listed in Part A Schedule 2 thereto as
Intra-Group Creditors; the persons listed in Part B Schedule 2 thereto as
Intra-Group Borrowers and the persons listed in Schedule 3 thereto as New
Bonding Facility Banks (as amended, modified or supplemented from time to time,
the "Intercreditor Agreement"), having an address at Fifth Floor, 100 Wood
Street, London EC2V 7EX United Kingdom. Capitalized terms used herein without
definition shall have the respective meanings assigned to such terms in the
Intercreditor Agreement.

                  This Instrument shall be an Open-End Mortgage in accordance
with 42 Pa. Cons. Stat. Section 8143 and it is understood and agreed that this
Instrument is intended to secure balances of loan advances that may be made
after this Instrument is delivered to the recorder for recordation. The maximum
value of the unpaid balances of such loan advances that in the aggregate,
exclusive of interest, may be outstanding at any time pursuant to this provision
is One Billion Two Hundred Eighty-Four Million Nine Hundred Twenty-Five Thousand
and No/100 Dollars (U.S.$1,284,925,000.00); provided, however, that the Secured
Creditors may make additional loan advances pursuant to the provisions of this
Instrument to protect the Mortgaged Property, the lien of this Instrument or
otherwise, including, but not limited to, advances to pay taxes, assessments,
insurance premiums, and all other amounts that the Mortgagor has agreed to pay
pursuant to the provisions hereof or that the Mortgagee has incurred by reason
of the occurrence of a default which shall also be secured by this Instrument.

                  The written notices provided for in 42 Pa. Cons. Stat. Section
8143 from a person claiming priority of a lien or encumbrance over the lien of
this Instrument for any future advances made under the Indentures and the Notes
shall be either personally delivered to Mortgagee at its principal place of

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business set forth above or sent to Mortgagee by certified mail, postage
prepaid, return receipt requested, addressed to Mortgagee, at Mortgagee's
address set forth above.

                              W I T N E S S E T H:

                  WHEREAS, Mortgagor is a United States wholly-owned subsidiary
of Marconi Corporation, plc (the "Issuer"), which is the Issuer under the
Indentures, the Notes and the New Bonding Facility Agreement;

                  WHEREAS, as of the date hereof and in favor of Mortgagee,
Mortgagor has entered into a Guarantee of the Senior Notes and Senior Note
Indenture, a Guarantee of the Junior Notes and the Junior Note Indenture and a
Composite Guarantee of certain other obligations under the Relevant Documents,
including the New Bonding Facility Agreement (collectively, the "Guarantees"),
pursuant to which Mortgagor has agreed to guarantee the "Guaranteed Obligations"
(as such term is defined in each of the Guarantees) and has agreed to secure the
Guaranteed Obligations and other obligations;

                  WHEREAS, Mortgagor has received substantial benefit from the
loans made under the Indentures, the New Bonding Facility Agreement and the
other Relevant Documents; and

                  WHEREAS, Mortgagee and the Secured Creditors have required
that Mortgagor execute and deliver this Instrument (i) in order to secure the
prompt and complete payment, observance and performance of all of the Secured
Obligations (as defined below) and (ii) as a condition precedent to Mortgagee
and the Secured Creditors entering into the Relevant Documents.

                  NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

                                 GRANTING CLAUSE

                  To secure the payment in full of the Secured Obligations (as
hereinafter defined), Mortgagor has bargained, sold, given, granted and conveyed
and does hereby bargain, sell, grant, remise, release, and convey, mortgage and
warrant to Mortgagee, its successors and assigns, and grants a security interest
to Mortgagee, its successors and assigns, in and to the following described real
estate located in Allegheny County, Pennsylvania (the "Commonwealth"):

                  See Exhibit A attached hereto and by this reference made a
part hereof which real estate (the "Land"), together with all right, title and
interest, if any, which Mortgagor may now have or hereafter acquire in and to
all improvements, buildings and structures thereon of every nature whatsoever,
is herein called the "Premises."

                  TOGETHER WITH all right, title and interest, if any, including
any after-acquired right, title and interest, and including any right of use or
occupancy, which Mortgagor may now have or hereafter acquire in and to (a) all
easements, rights of way, gores of land or any lands occupied by streets, ways,
alleys, passages, sewer rights, air rights, development rights, water courses,
water rights and powers, and public places adjoining said Land, and any other
interests in property constituting appurtenances to the Premises, or which
hereafter shall in any way belong, relate or be appurtenant thereto and (b) all
hereditaments, gas, oil, minerals (with the right to extract, sever and remove
such gas, oil and minerals), and easements, of every nature whatsoever, located
in or on the Premises and all other rights and privileges thereunto belonging or
appertaining and all extensions, additions, improvements,

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betterments, renewals, substitutions and replacements to, or of any rights and
interests described in subparagraph (a) above and this subparagraph (b)
(hereinafter collectively called the "Property Rights").

                  TOGETHER WITH all additional lands, estates and development
rights hereafter acquired by Mortgagor for use in connection with and the
development of the Land, the Premises or the Property Rights and all additional
lands and estates therein which may, from time to time, by supplemental Mortgage
or otherwise, be expressly made subject to the lien of this Instrument.

                  TOGETHER WITH all right, title and interest, if any, including
any after-acquired right, title and interest which Mortgagor may now or
hereafter acquire in and to fixtures and appurtenances of every nature
whatsoever now or hereafter located in, on or attached to, and used or intended
to be used in connection with, or with the operation of, the Premises,
including, but not limited to, (a) all apparatus, machinery, and equipment of
Mortgagor; (b) all extensions, additions, improvements, betterments, renewals,
substitutions, and replacements to or of any of the foregoing (the items
described in the foregoing (a) and (b) being the "Fixtures"); and (c) all
personal property and equipment of every nature whatsoever now or hereafter
located in or on the Premises, including, but not limited to, (i) all screens,
window shades, blinds, wainscoting, storm doors and windows, floor coverings,
and awnings of Mortgagor; (ii) all apparatus, machinery, equipment and
appliances of Mortgagor not included as Fixtures; (iii) all items of furniture,
furnishings, and personal property of Mortgagor; and (iv) all extensions,
additions, improvements, betterments, renewals, substitutions, and replacements
to or of any of the foregoing (i)-(iii) (the items described in the foregoing
(i)-(iv) and any other personal property referred to in this paragraph being the
"Personal Property") and in and to the proceeds of the Personal Property. It is
mutually agreed, intended and declared that the Premises and all of the Property
Rights and Fixtures owned by Mortgagor (referred to collectively herein as the
"Real Property") shall, so far as permitted by law, be deemed to form a part and
parcel of the Land and for the purpose of this Instrument to be real estate and
covered by this Instrument. It is also agreed that if any of the property herein
conveyed is of a nature so that a security interest therein can be perfected
under the Uniform Commercial Code as enacted by the Commonwealth ("UCC"), this
Instrument shall constitute a security agreement, fixture filing and financing
statement, and Mortgagor agrees to execute, deliver and file or refile any
financing statement, continuation statement, or other instruments Mortgagee may
require from time to time to perfect or renew such security interest under the
UCC. To the extent permitted by law, (x) all of the Fixtures are or are to
become fixtures on the Land; and (y) this Instrument, upon recording or
registration in the real estate records of the proper office, shall constitute a
"fixture-filing" within the meaning of 13 Pa. Cons. Stat. Sections 9334 and 9502
of the UCC. Subject to the terms and conditions of the Intercreditor Agreement,
the remedies for any violation of the covenants, terms and conditions of the
agreements herein contained shall be as prescribed herein or by general law, or,
as to that part of the security in which a security interest may be perfected
under the UCC, by the specific statutory consequences now or hereafter enacted
and specified in the UCC, all at the Mortgagee's sole election.

                  TOGETHER WITH all the estate, right, title and interest of the
Mortgagor, in and to all (i) judgments, insurance proceeds, unearned premiums,
awards of damages and settlements, and any interest thereon, resulting from
condemnation proceedings or the taking of the Real Property, or any part
thereof, under the power of eminent domain or for any damage (whether caused by
such taking or otherwise) to the Real Property, the Personal Property or any
part thereof, or to any rights appurtenant thereto, and all proceeds of any
sales or other dispositions of the Real Property, the Personal Property or any
part thereof; and (subject to the terms of the Intercreditor Agreement) the
Mortgagee is hereby authorized to collect and receive said awards and proceeds
and to give proper receipts and acquittances therefor, and to apply the same as
provided in the Intercreditor Agreement; (ii) contract rights, general
intangibles, actions and rights in action, relating to the Real Property or the
Personal Property, including, without limitation, all rights to insurance
proceeds and unearned premiums arising from or relating to

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damage to the Real Property or the Personal Property; and (iii) proceeds,
products, replacements, additions, substitutions, renewals and accessions of and
to the Real Property or the Personal Property. (The rights and interests
described in this paragraph shall hereinafter be collectively called the
"Intangibles.")

                  As additional security for the Secured Obligations, Mortgagor
does (i) hereby pledge and assign to Mortgagee from and after the date hereof
(including any period of redemption), primarily and on a parity with said real
estate, and not secondarily, all the rents, issues and profits of the Real
Property and all rents, issues, profits, revenues, royalties, bonuses, rights
and benefits due, payable or accruing (including all deposits of money as
advance rent, for security or as earnest money or as downpayment for the
purchase of all or any part of the Real Property or the Personal Property) (the
"Rents") under any and all present and future leases, contracts or other
agreements relating to the ownership of the Real Property or the Personal
Property or to the occupancy of all or any portion of the Real Property and,
(ii) except to the extent such a transfer or assignment is not permitted by the
terms thereof (and a consent to the transfer or assignment has not been
obtained), does hereby transfer and assign to Mortgagee all such leases,
contracts and agreements (including all Mortgagor's rights (x) under any
contracts for the sale of any portion of the Mortgaged Property (as hereinafter
defined) and (y) to all revenues and royalties under any oil, gas and mineral
leases relating to the Real Property) (the "Leases"). Mortgagee hereby grants to
Mortgagor the right to collect and use the Rents as they become due and payable
under the Leases, but not more than one (1) month in advance thereof, so long as
no Trigger Event shall have occurred, provided that the existence of such right
shall not operate to subordinate this assignment to any subsequent assignment,
in whole or in part, by Mortgagor, and any such subsequent assignment shall be
subject to the rights of the Mortgagee under this Instrument. Mortgagor further
agrees to execute and deliver such assignments of leases or assignments of land
sale contracts as Mortgagee may from time to time request solely for the purpose
of creating, protecting, perfecting or maintaining an enforceable lien thereon
and an enforceable and valid assignment of Leases and Rents. Upon the occurrence
of a Trigger Event, (i) the Mortgagor agrees, upon demand, to deliver to the
Mortgagee all of the Leases with such additional assignments thereof as the
Mortgagee may request and agrees that the Mortgagee may assume the management of
the Real Property and collect the Rents (provided that such assumption of
management shall be done solely to the extent necessary to collect the Rents in
the event of a Material Default), applying the Rents upon the Secured
Obligations (as defined below) in the manner provided in the Intercreditor
Agreement, and (ii) the Mortgagor hereby authorizes and directs all tenants,
purchasers or other persons occupying or otherwise acquiring any interest in any
part of the Real Property to pay the Rents due under the Leases to the Mortgagee
upon request of the Mortgagee. Mortgagor hereby appoints Mortgagee as its true
and lawful attorney-in-fact to manage said property and collect the Rents, with
full power to bring suit for collection of the Rents and possession of the Real
Property (provided that such possession shall be taken solely to the extent
necessary to collect the Rents in the event of a Material Default), giving and
granting unto said Mortgagee and unto its agent or attorney full power coupled
with an interest and authority to do and perform all and every act and thing
whatsoever requisite and necessary to be done in the protection of the security
hereby conveyed (provided that such acts shall be limited to those necessary to
collect the Rents in the event of a Material Default); provided, however, that
(i) this power of attorney and assignment of Rents shall not be construed as an
obligation upon said Mortgagee to make or cause to be made any repairs that may
be needful or necessary, and (ii) Mortgagee agrees that so long as no Trigger
Event shall have occurred, Mortgagee shall permit Mortgagor to perform the
aforementioned management responsibilities. Upon Mortgagee's receipt of the
Rents, at Mortgagee's option, it may: (i) pay charges for collection hereunder,
costs of necessary repairs and other costs requisite and necessary during the
continuance of this power of attorney and assignment of Rents, (ii) pay general
and special taxes, insurance premiums, and, thereafter, (iii) distribute the
balance of the Rents pursuant to the provisions of the Intercreditor Agreement.
This power of attorney and assignment of rents shall be irrevocable until this
Instrument shall have been satisfied and released of record and the releasing

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or reconveyance of this Instrument shall act as a revocation of this power of
attorney and assignment of rents. Subject to Mortgagee's grant to Mortgagor of
the collection and use of the Rents set forth above, Mortgagee shall have and
hereby expressly reserves the right and privilege (but assumes no obligation) to
demand, collect, sue for, receive and recover the Rents, or any part thereof,
now existing or hereafter made, and apply the same in accordance with the
provisions of the Intercreditor Agreement. For purposes of this Instrument, a
"Trigger Event" shall mean (i) an Enforcement Event or (ii) a "Material Default"
which for purposes of this Instrument shall mean any event that is (A) an
Insolvency Event which is also an Event of Default or (B) any Event of Default
that the Instructing Trustee notifies and instructs the Mortgagee to act in
response to pursuant to the Intercreditor Agreement. Notwithstanding anything
herein, upon an Enforcement Event, Mortgagee shall have the absolute right and
option to exercise any and all rights and remedies provided for in this
Instrument and available at law or in equity.

                  All of the property described above, and each item of property
herein described, and all other rights of Mortgagor in and to such items of
property, not limited to, but including, the Land, the Premises, the Property
Rights, the Fixtures, the Real Property, the Personal Property, the Intangibles,
the Rents and the Leases, is herein collectively referred to as the "Mortgaged
Property". As used herein, "Secured Obligations" means all present and future
indebtedness, liabilities and obligations (for the avoidance of doubt, including
any liabilities and obligations that have been cash-collateralized by the
Mortgagor), at any time of Mortgagor under the Relevant Documents (including
this Instrument), including any liability in respect of any further advances, if
any, made under the Relevant Documents, both actual and contingent (and whether
incurred solely or jointly or in any other capacity) together with any of the
following matters relating to or arising in respect of those liabilities and
obligations: (1) any refinancing, novation, deferral or extension; (2) any
obligation relating to any increase in the amount of such obligations; (3) any
claim for damages or restitution; and (4) any claim as a result of any recovery
by Mortgagor of a payment or discharge, or non-allowability, on the grounds of
preference; and any amounts that would be included in any of the above but for
any discharge, non-provability or unenforceability of those amounts in any
insolvency or other proceedings (including interest accruing after the
commencement of any insolvency or other proceedings).

                  Nothing herein contained shall be construed as constituting
the Mortgagee or any of its Delegates, or any of the other Secured Creditors a
mortgagee-in-possession in the absence of the taking of actual possession of the
Mortgaged Property by the Mortgagee or any of its Delegates or any of the
Secured Creditors. Nothing contained in this Instrument shall be construed as
imposing on Mortgagee any of the obligations of the lessor under any lease of
the Mortgaged Property in the absence of an explicit assumption thereof by
Mortgagee. In the exercise of the powers herein granted the Mortgagee, no
liability shall be asserted or enforced against the Mortgagee, all such
liability being expressly waived and released by Mortgagor.

                  TO HAVE AND TO HOLD the Mortgaged Property, properties, rights
and privileges hereby mortgaged unto Mortgagee, its successors and assigns, upon
the terms and conditions and for the uses and purposes herein set forth until
all conditions set forth in Section 5.3 of the Intercreditor Agreement are
satisfied. If the Secured Obligations are paid and performed in full and
completely as and when due in accordance with their respective terms and in
accordance with Section 5.3 of the Intercreditor Agreement, the lien of mortgage
provided for herein shall be null and void and shall be promptly satisfied of
record at the request and cost of Mortgagor as provided by law. If, however, a
Trigger Event shall have occurred, then Mortgagee shall be entitled to invoke
the remedies provided for in this granting clause in connection with the
assignment of Leases and Rents, and if an Enforcement Event shall have occurred,
then Mortgagee shall, in addition to all other rights and remedies at law or
equity provided, be entitled to invoke the remedies provided for in Article IV
below including without limitation the right to foreclose this Instrument by
judicial proceedings. To the fullest extent permitted by

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law Mortgagor hereby releases and waives all rights under and by virtue of any
homestead exemption laws of the Commonwealth.

                  The following provisions shall also constitute an integral
part of this Instrument:

                                    ARTICLE I

                                   [RESERVED]

                                   ARTICLE II

                             COVENANTS OF MORTGAGOR

         Section 2.01.     [RESERVED]

         Section 2.02.     Leases Affecting the Real Property. All future
lessees under any Lease of the Real Property, or any part thereof, made after
the date of recording of this Instrument shall, at Mortgagee's option and
without any further documentation, attorn to Mortgagee as lessor if for any
reason Mortgagee becomes lessor thereunder, and, thereafter, upon demand, to pay
Rent to Mortgagee, and Mortgagee shall not be responsible under such Lease for
matters arising prior to Mortgagee becoming lessor thereunder. In respect of
each Lease which may be entered into on or after the date hereof, the lien and
estate, as well as the provisions, terms and conditions of each Lease shall in
all respects be subordinate and junior to the lien of this Instrument.

         Section 2.03.     Further Assurances. Mortgagor, at its sole cost and
expense, shall (i) upon request of Mortgagee promptly correct any defect or
error which may be discovered in this Instrument or any financing statement or
other document relating hereto solely to the extent necessary to create,
effectuate, complete, perfect, continue or preserve the lien of this Instrument
on the Mortgaged Property, and (ii) promptly execute, acknowledge, deliver,
record and re-record, register and re-register, and file and re-file this
Instrument, any amendment to this Instrument and any financing statements or
other documents which Mortgagee may request in writing from time to time (all in
form and substance reasonably satisfactory to Mortgagee) in order (A) to create,
effectuate, complete, perfect, continue or preserve the lien of this Instrument
as a second priority lien on the Mortgaged Property, whether now owned or
hereafter acquired, subject only to the matters set forth on Exhibit B attached
hereto and made a part hereof, including the Superior Mortgage (hereinafter
defined), and except for the Permitted Liens (as defined in the Indentures), or
(B) to create, effectuate, complete, perfect, continue, preserve or validate any
right, power or privilege granted or intended to be granted to the Mortgagee
hereunder or otherwise accomplish the purposes of this Instrument. To the extent
permitted by law and to the extent that Mortgagor fails to do so as required
hereunder, the Mortgagor hereby authorizes Mortgagee to file financing
statements or continuation statements covering the Mortgaged Property.

         Section 2.04.     Casualty Proceeds. Mortgagor hereby assigns to
Mortgagee, as additional security, all proceeds or awards of damage resulting
from a casualty event or condemnation proceedings or the taking of or injury to
the Real Property for public use. All such proceeds or awards paid to Mortgagee
hereunder shall be applied in accordance with the Indentures.

         Section 2.05.     Inspections. Mortgagor hereby authorizes Mortgagee,
its agents, employees and representatives, upon reasonable prior written notice
to Mortgagor (except in an emergency or following the occurrence of any Trigger
Event, in which case notice shall not be required) to visit and inspect the

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Mortgaged Property or any portion(s) thereof, all at such reasonable times and
as often as Mortgagee may reasonably request.

         Section 2.06.     Indemnity. Mortgagor hereby indemnifies Mortgagee or
any person designated by it and keep Mortgagee or such person designated by it
indemnified against any and all costs, claims and liabilities which it may incur
as a result of anything done by it as an attorney-in-fact for Mortgagor in the
proper exercise of any of the powers conferred, or purported to be conferred,
thereon by this Instrument unless such cost, claim or liability arises as a
result of the negligence or wilful misconduct of Mortgagee or such person
designated by it. For clarification purposes, the indemnity in this Section 2.06
shall apply solely in those instances where Mortgagee or a Delegate acts as an
attorney-in-fact for Mortgagor for purposes of this Instrument.

         Section 2.07.     After Acquired Property Interests. All right, title
and interest of Mortgagor in and to all of the Mortgaged Property, hereafter
acquired by Mortgagor ("After Acquired Property Interests"), immediately upon
such acquisition, without any further mortgage, conveyance, assignment or other
act by Mortgagor, shall (to the fullest extent permitted by law) become subject
to the lien of this Instrument as fully and completely, and with the same
effect, as though owned by Mortgagor on the date hereof and specifically
described in the granting clauses hereof. Mortgagor shall execute and deliver to
Mortgagee all such other deeds of trust or mortgages and other agreements as
Mortgagee may require for the purpose of expressly and specifically subjecting
such After Acquired Property Interests to the lien of this Instrument. Mortgagor
hereby irrevocably authorizes and appoints Mortgagee as the agent and
attorney-in-fact of Mortgagor to execute all such documents and instruments on
behalf of Mortgagor, which appointment shall be irrevocable and coupled with an
interest, if the Mortgagor fails or refuses to do so within ten (10) days after
written request therefor by Mortgagee.

         Section 2.08.     Expenses and Costs. Mortgagor shall, from time to
time and promptly on demand by Mortgagee reimburse to Mortgagee all costs and
expenses (including legal fees) on a full indemnity basis incurred by Mortgagee
and any Delegate in connection with:

         1.       the execution, release and discharge of this Instrument and
                  the security created hereby or intended to be created hereby
                  in respect of the Mortgaged Property and the completion of the
                  transactions and perfection of the security contemplated in
                  this Instrument or forming part of the security created or
                  intended to be created in respect of the Mortgaged Property;

         2.       the actual or contemplated exercise, preservation and/or
                  enforcement of any of the rights, powers and remedies of, or
                  the performance of the duties and obligations of, Mortgagee or
                  any Delegate, or any amendment or waiver in respect of this
                  Instrument;

         3.       the foreclosure (whether judicial or by power of sale) of any
                  Mortgaged Property; and

         4.       the preservation and/or enforcement of the security created
                  hereby or intended to be created hereby in respect of the
                  Mortgaged Property,

which shall carry interest from the date of such demand until so reimbursed at
the rate and on the basis as mentioned in Clause 18.4 of the Intercreditor
Agreement.

         Section 2.09. Taxes. Mortgagor shall pay, promptly on demand of
Mortgagee all stamp, registration, notarial and other similar taxes or fees
paid or payable by Mortgagee in connection with any action taken or
contemplated by or on behalf of Mortgagee for perfecting, maintaining,
enforcing, releasing, canceling, reassigning or resolving any doubt concerning,
or for any other purpose in relation to

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this Instrument, any amendment thereto, any transfer and/or assignment of the
rights and/or obligations under the same or the security created hereby or
intended to be created hereby in respect of the Mortgaged Property and shall,
from time to time, indemnify Mortgagee promptly on demand against any
liabilities, costs, claims and expenses resulting from any failure to pay by
Mortgagor or any delay by Mortgagor in paying any such taxes or fees.

                                   ARTICLE III

                               MORTGAGEE'S RIGHTS

         Section 3.01.     Performance of Mortgagor's Obligations. Mortgagor
agrees that, upon the occurrence of an Enforcement Event, Mortgagee may, but
need not, make any payment or perform any act hereinbefore required of
Mortgagor, in any form and manner deemed expedient. By way of illustration and
not in limitation of the foregoing, Mortgagee may, but need not, (i) make full
or partial payments of insurance premiums which are unpaid by Mortgagor,
coordinate liens or encumbrances, if any, (ii) purchase, discharge, compromise
or settle any tax lien or any other lien, encumbrance, suit, proceeding, title
or claim thereof, or (iii) redeem all or any part of the Premises from any tax
or assessment. All moneys paid for any of the purposes herein authorized and all
other moneys advanced by Mortgagee to protect the Mortgaged Property and the
lien hereof shall be additional Secured Obligations and shall become immediately
due and payable without notice and shall bear interest thereon at the rate set
forth in Clause 18.4 of the Intercreditor Agreement until paid to Mortgagee in
full. In making any payment hereby authorized relating to taxes, assessments or
prior or coordinate liens or encumbrances, Mortgagee shall be the sole judge of
the legality, validity and priority thereof and of the amount necessary to be
paid in satisfaction thereof.

                                   ARTICLE IV

                                REMEDIES & RIGHTS

         Section 4.01.     Remedies of Mortgagee. Upon the occurrence of an
Enforcement Event, Mortgagee may, without notice to or demand upon Mortgagor,
declare this Instrument to be in default, and, in addition to all other rights
and remedies at law or in equity available to Mortgagee or as otherwise provided
for in the Intercreditor Agreement or the Indentures, to the extent permitted by
applicable law, the following provisions shall apply:

                  (a)      Mortgagee's Power of Enforcement. It shall be lawful
for Mortgagee to immediately foreclose this Instrument by judicial action. The
court in which any proceeding is pending for the purpose of foreclosure of this
Instrument if such remedy is taken or any court of competent jurisdiction may,
at once or at any time thereafter, either before or after sale, without notice
and without requiring bond, and without regard to the solvency or insolvency of
any person liable for payment of the Secured Obligations, and without regard to
the then value of the Mortgaged Property or the occupancy thereof as a
homestead, appoint a receiver (the provisions for the appointment of a receiver
and assignment of rents being an express condition upon which the Secured
Obligations hereby secured are made) for the benefit of Mortgagee, with power to
collect the Rents, due and to become due, during such foreclosure suit or
proceeding for such sale and the full statutory period of redemption,
notwithstanding any redemption. The receiver, out of the Rents, when collected,
may pay costs incurred in the management and operation of the Real Property,
prior and subordinate liens, if any, and taxes, assessments, water and other
utilities and insurance, then due or thereafter accruing, and may make and pay
for any necessary repairs to the Real Property or the Personal Property, and may
pay all or any part of the Secured Obligations or other sums secured hereby or
any deficiency decree entered in such

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foreclosure proceedings. Upon or at any time after the filing of a suit to
foreclose this Instrument, the court in which such suit is filed shall have full
power to enter an order placing Mortgagee in possession of the Real Property
with the same power granted to a receiver pursuant to this subparagraph and with
all other rights and privileges of a mortgagee-in-possession under applicable
law.

                  (b)      Mortgagee's Right to Enter and Take Possession,
Operate and Apply Income. To the fullest extent permitted by law, Mortgagee
shall, at its option, have the right, acting through its agents or attorneys,
either with or without process of law, forcibly or otherwise, to enter upon and
take possession of the Real Property, expel and remove any persons, goods, or
chattels occupying or upon the same, to collect or receive all the Rents, and to
manage and control the same, and to lease the same or any part thereof, from
time to time, and, after deducting all reasonable attorneys' fees and expenses,
and all reasonable expenses incurred in the protection, care, maintenance,
management and operation of the Real Property, distribute and apply the
remaining net income in accordance with the terms of the Intercreditor Agreement
or upon any deficiency decree entered in any foreclosure proceedings.

         Section 4.02.     Application of the Rents or Proceeds from Foreclosure
or Sale. The Rents and the proceeds of any sale (through a foreclosure
proceeding) shall be distributed and applied in accordance with the terms of the
Intercreditor Agreement. In any foreclosure of this Instrument by judicial
action, subject to the terms and provisions of the Intercreditor Agreement,
there shall be allowed (and included in the decree for sale in the event of a
foreclosure by judicial action) to be paid out of the Rents or the proceeds of
such foreclosure proceeding and/or sale:

                  (a)      Secured Obligations. All of the Secured Obligations
and other sums secured hereby which then remain unpaid;

                  (b)      Other Advances. All other items advanced or paid by
Mortgagee pursuant to this Instrument, with interest thereon at the rate set
forth in Clause 18.4 of the Intercreditor Agreement from the date of
advancement; and

                  (c)      Costs, Fees and Other Expenses. All court costs,
reasonable in-house and outside attorneys' and paralegals' fees and expenses,
costs of environmental surveys and guard or other security services, appraiser's
fees, advertising costs, notice expenses, expenditures for documentary and
expert evidence, stenographer's charges, publication costs, and costs (which may
be estimated as to items to be expended after entry of the decree) of procuring
all abstracts of title, title searches and examinations, title guarantees, title
insurance policies, surveys, and similar data with respect to title which
Mortgagee may deem necessary. All such expenses shall become additional Secured
Obligations and be immediately due and payable, with interest thereon at the
rate set forth in Clause 18.4 of the Intercreditor Agreement, when paid or
incurred by Mortgagee in connection with any proceedings, including, but not
limited to, probate and bankruptcy proceedings, to which Mortgagee shall be a
party, either as plaintiff, claimant or defendant, by reason of this Instrument
or any indebtedness hereby secured or in connection with the preparations for
the commencement of any suit for the foreclosure, whether or not actually
commenced.

         Section 4.03.     Cumulative Remedies; Delay or Omission Not a Waiver.
Each remedy or right of Mortgagee shall not be exclusive of, but shall be in
addition to, every other remedy or right now or hereafter existing at law or in
equity. No delay in the exercise or omission to exercise any remedy or right
accruing on the occurrence or existence of any Material Default or Enforcement
Event shall impair any such remedy or right or be construed to be a waiver of
any such Material Default or Enforcement Event or acquiescence therein, nor
shall it affect any subsequent Material Default or Enforcement Material the same
or different nature. Every such remedy or right may be exercised concurrently or
independently and when and as often as may be deemed expedient by Mortgagee. The
acceptance by

                                       9

<PAGE>

Mortgagee, any successor administrative agent or any secured party of any
payment less than the amount of the Secured Obligation in question shall be
deemed to be an acceptance on account only and shall not be construed as a
waiver of any Material Default or Enforcement Event with respect thereto, and
the acceptance by Mortgagee, any successor administrative agent or any secured
party of any payment of, or on account of, any Secured Obligation shall not be
deemed to be a waiver of any Material Default or Enforcement Event other
occurrence hereunder or under any Relevant Documents with respect to any other
Secured Obligation. If Mortgagee has proceeded to enforce any remedy or right
hereunder or with respect hereto by foreclosure, entry or otherwise, it may
compromise, discontinue or abandon such proceeding for any reason without notice
to Mortgagor or any other party (except any other agent, the Secured Creditors
or the other secured parties to the extent required by any Relevant Documents);
and, if any such proceeding shall be discontinued, abandoned or determined
adversely for any reason, Mortgagor and Mortgagee shall retain and be restored
to their former positions and rights hereunder with respect to the Mortgaged
Property, subject to the lien hereof except to the extent any such adverse
determination specifically provides to the contrary.

         Section 4.04.     Mortgagee's Remedies against Multiple Parcels. If
more than one property, lot or parcel is covered by this Instrument, and if this
Instrument is foreclosed upon, or judgment is entered upon any Secured
Obligations, execution may be made upon any one or more of the properties, lots
or parcels and not upon the others, or upon all of such properties or parcels,
either together or separately, and at different times or at the same time, and
foreclosure sales herein granted may likewise be conducted separately or
concurrently, in each case at Mortgagee's election.

         Section 4.05.     No Merger. In the event of a foreclosure of this
Instrument or any other mortgage or deed of trust securing the Secured
Obligations, the Secured Obligations then due to the Mortgagee shall not be
merged into any decree of foreclosure entered by the court, and Mortgagee may
concurrently or subsequently seek to foreclose one or more other deeds of trust
which also secure said Secured Obligations.

         Section 4.06.     Waivers by Mortgagor. To the fullest extent permitted
under applicable law, Mortgagor shall not assert, and hereby irrevocably waives,
any right or defense Mortgagor may have under any statute or rule of law or
equity now or hereafter in effect relating to (a) homestead exemption,
extension, moratorium, stay, redemption, marshaling of the Mortgaged Property or
the other assets of Mortgagor, sale of the Mortgaged Property in any order or
notice of deficiency or intention to accelerate any Secured Obligation, (b)
impairment of any right of subrogation or reimbursement, (c) any requirement
that at any time any action must be taken against any other party, any portion
of the Mortgaged Property or any other asset of Mortgagor or any other party,
(d) any provision barring or limiting the right of Mortgagee to sell any
Mortgaged Property after any other sale of any other Mortgaged Property or any
other action against Mortgagor or any other party, (e) any provision barring or
limiting the recovery by Mortgagee of a deficiency after any sale of the
Mortgaged Property, (f) any other provision of applicable law which shall
defeat, limit or adversely affect any right or remedy of Mortgagee or any
secured party under or with respect to this Instrument or any other Relevant
Documents as it relates to any Mortgaged Property, (g) the right of Mortgagee to
foreclose this Instrument in its own name on behalf of all of the secured
parties by judicial action as the real party in interest without the necessity
of joining any secured party, or (h) the Guarantees, including, without
limitation, notice of existence, creation or incurring of any new or additional
indebtedness or obligation or of any action or non-action on the part of
Mortgagor or the Issuer, Mortgagee or any Secured Creditor or on the part of any
person whomsoever under the Intercreditor Agreement, this Instrument or any of
the other Relevant Documents in connection with any obligation or evidence of
indebtedness held by Mortgagee, as Security Trustee for the Secured Creditors or
held by any of the Secured Creditors. Appraisement of the Premises is hereby

                                       10

<PAGE>

expressly waived, at the option of Mortgagee, which such option shall be
executed prior to the time any judgment is tendered at foreclosure.

         Section 4.07.     Jurisdiction and Process. (a) To the extent permitted
under applicable law, in any suit, action or proceeding arising out of or
relating to this Instrument or any other Relevant Documents insofar and only
insofar as it relates to any Mortgaged Property, Mortgagor (i) irrevocably
consents to the non-exclusive jurisdiction of any state or federal court sitting
in which the Premises is located and irrevocably waives any defense or objection
which it may now or hereafter have to the jurisdiction of such court or the
venue of such court or the convenience of such court as the forum for any such
suit, action or proceeding, and (ii) irrevocably consents to the service of (A)
any process in accordance with applicable law in any such suit, action or
proceeding, or (B) any notice relating to any sale, or the exercise of any other
remedy by Mortgagee hereunder by mailing a copy of such process or notice by
United States registered or certified mail, postage prepaid, return receipt
requested to Mortgagor at its address specified in or pursuant to Section 5.01;
such service to be effective in accordance with applicable law.

                  (b)      Nothing in this Section shall affect the right of
Mortgagee to bring any suit, action or proceeding arising out of or relating to
this Instrument, or any other Relevant Documents in any court having
jurisdiction under the provisions therein or applicable law or to serve any
process, notice of sale or other notice in any manner permitted by this
Instrument, the other Relevant Documents or applicable law.

         Section 4.08.     Concerning Mortgagee. (a) Mortgagee is authorized to
take all such action as is provided to be taken by it as Mortgagee hereunder and
all such other action incidental thereto subject to the terms and provisions of
the Intercreditor Agreement. As to any matters not expressly provided for herein
(including the timing and methods of realization upon the Mortgaged Property),
Mortgagee shall, in addition, act or refrain from acting in accordance with the
terms and provisions of the Intercreditor Agreement. Mortgagee shall not be
responsible for the existence, genuineness or value of any of the Mortgaged
Property or for the validity, perfection, priority or enforceability of the lien
of this Instrument on any of the Mortgaged Property, whether impaired by
operation of law or by reason of any action or omission to act on its part
hereunder. Mortgagee shall have the right, but shall have no duty, to ascertain
or inquire as to the performance or observance of any of the terms of this
Instrument by Mortgagor.

                  (b)      Mortgagee may, at any time delegate by power of
attorney or otherwise to any person(s) or entity(ies) the ability to exercise
any or all of the rights, powers and discretions vested in it by this Instrument
or appoint any person or entity to act as additional Mortgagee or as co-trustee
for the purpose of this Instrument, in accordance with and subject to the terms
of Clause 16 of the Intercreditor Agreement.

                  (c)      In the event that Mortgagee acts as Mortgagor's
attorney in fact or otherwise as its agent as provided for under this
Instrument, Mortgagor shall ratify and confirm all things done and all documents
executed by Mortgagee in the exercise or purported exercise of all or any of
such powers or acts.

                                    ARTICLE V

                                  MISCELLANEOUS

         Section 5.01.     Notices. Except as otherwise provided herein, all
communication required or permitted to be given in connection with this
Instrument shall be in writing, and shall be given or served

                                       11

<PAGE>

in the manner and to the address, and deemed received, as provided in clause 20
of the Intercreditor Agreement.

         Section 5.02.     Extension of Payments and Other Modifications.
Mortgagor agrees that, without affecting the liability of any person for payment
of the Secured Obligations or affecting the lien of this Instrument upon the
Mortgaged Property or any part thereof (other than persons or property
explicitly released as a result of the exercise by Mortgagee of its rights and
privileges hereunder), Mortgagee may (without obligation), at any time and from
time to time, on request of the Mortgagor made in accordance with the terms and
provisions of the Intercreditor Agreement, without notice to any person liable
for payment of any Secured Obligations or to any other person or entity, extend
the time, or agree to alter or amend the terms of payment of such Secured
Obligations; provided, however, that such actions of Mortgagee are expressly
limited by the terms and provisions of the Intercreditor Agreement. Mortgagor
further agrees that any part of the security herein described may be released
with or without consideration without affecting the remainder of the Secured
Obligations, the remainder of the security or the lien of this Instrument.

         Section 5.03.     Governing Law. Mortgagor agrees that this Instrument
is to be construed, governed and enforced in accordance with the laws of the
Commonwealth. Wherever possible, each provision of this Instrument shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Instrument shall be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Instrument.

         Section 5.04.     Satisfaction of Mortgage. Upon satisfaction of the
conditions set forth in Section 5.3 of the Intercreditor Agreement, this
conveyance or lien shall be null and void and, upon demand therefor following
such satisfaction, a satisfaction of mortgage in recordable form and any other
documents required to release the lien of this Instrument shall promptly be
provided by Mortgagee to Mortgagor, at Mortgagor's sole expense, without
recourse to, or any representation or warranty by, the Mortgagee or any of its
nominees.

         Section 5.05.     Successors and Assigns Included in Parties. This
Instrument shall be binding upon the Mortgagor and upon the successors, assigns
and vendees of the Mortgagor and shall inure to the benefit of the Mortgagee's
successors and assigns and any principals it represents as agent; all references
herein to the Mortgagor and to the Mortgagee shall be deemed to include their
successors and assigns and, as to Mortgagee, any principals it represents as
agent. Mortgagor's successors and assigns shall include, without limitation, a
receiver or debtor in possession of or for the Mortgagor. Wherever used, the
singular number shall include the plural, the plural shall include the singular,
and the use of any gender shall be applicable to all genders.

         Section 5.06.     Waiver of Appraisement, Valuation, Stay, Extension
and Redemption Laws. Mortgagor agrees, to the full extent permitted by law, that
in case of an Enforcement Event, neither Mortgagor nor anyone claiming through
or under it shall or will set up, claim or seek to take advantage of any
appraisement, valuation, stay, or extension laws now or hereafter in force, in
order to prevent or hinder the enforcement or foreclosure of this Instrument or
the absolute sale of the Mortgaged Property or the final and absolute putting
into possession thereof, immediately after such sale, of the purchaser thereat,
and Mortgagor, for itself and all who may at any time claim through or under it,
hereby waives, to the full extent that it may lawfully so do, the benefit of all
such laws, and any and all right to have the assets comprising the Mortgaged
Property marshalled upon any foreclosure of the lien hereof and agrees that any
court having jurisdiction to foreclose such lien may sell the Mortgaged Property
in part or as an entirety. Mortgagor represents that it has been authorized to,
and Mortgagor does hereby waive to the full

                                       12

<PAGE>

extent permitted by law any and all statutory or other rights of redemption
under any order or decree of foreclosure of this Instrument, on its own behalf
and on behalf of each and every person acquiring any interest in or title to the
Mortgaged Property subsequent to the date hereof.

         Section 5.07.     Interpretation with Other Documents. Notwithstanding
anything in this Instrument to the contrary, (a) in the event of a conflict or
inconsistency between this Instrument and the provisions of the Intercreditor
Agreement, the provisions of the Intercreditor Agreement shall govern and (b)
the exercise of any right or remedy by Mortgagee under this Instrument shall be
done in accordance with and is subject to the terms and provisions of the
Intercreditor Agreement.

         Section 5.08.     Future Advances. The parties hereto intend that, in
addition to any other debt or obligation secured hereby, this Instrument shall
secure unpaid balances of loan advances and other extensions of credit made
after this Instrument is delivered to the appropriate recording offices of the
Commonwealth, whether such advances or extensions of credit made are obligatory
or otherwise, and such future advances or extensions of credit shall be secured
to the same extent as if such advances or extensions of credit were made on the
date hereof, although there may be no advance or extension of credit made at the
time of the execution hereof and although there may be no indebtedness
outstanding at the time any advance or extension of credit is made. Such unpaid
balances of loan advances and other extensions of credit may or may not be
evidenced by notes executed pursuant to the applicable Relevant Documents.

         Section 5.09.     Invalid Provisions to Affect No Others. In the event
that any of the covenants, agreements, terms or provisions contained in this
Instrument shall be invalid, illegal or unenforceable in any respect, the
validity of the remaining covenants, agreements, terms or provisions contained
herein or in any other Relevant Documents shall not be in any way affected,
prejudiced or disturbed thereby. In the event that the application of any of the
covenants, agreements, terms or provisions of this Instrument is held to be
invalid, illegal or unenforceable, those covenants, agreements, terms and
provisions shall not be in any way affected, prejudiced or disturbed when
otherwise applied.

         Section 5.10.     Changes. Neither this Instrument nor any term hereof
may be changed, waived, discharged or terminated orally, or by any action or
inaction, but only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought. To the
extent permitted by law, any agreement hereafter made by Mortgagor and Mortgagee
relating to this Instrument shall be superior to the rights of the holder of any
intervening lien or encumbrance.

         Section 5.11.     Marshalling of Assets. Notice is hereby given that no
holder of any mortgage, lien or other encumbrance affecting all or a part of the
Mortgaged Property which is inferior to the lien of this Instrument shall have
any right to require the Mortgagee to marshal assets.

         Section 5.12.     Time of Essence. Time is of the essence with respect
to the provisions of this Instrument.

         Section 5.13.     Superior Mortgage. Notwithstanding anything to the
contrary contained in this Instrument, Mortgagee hereby acknowledges and agrees
that all rights of Mortgagee with respect to the Mortgaged Property and all
terms, covenants and conditions under this Instrument as they relate solely and
specifically to the Mortgaged Property are subject and subordinate to the rights
of Liberty Funding, L.L.C., and its successors and assigns ("Superior
Mortgagee") (including, without limitation, Superior Mortgagee's rights to
insurance proceeds and condemnation awards) under that certain Open-End Mortgage
and Security Agreement dated as of March 26, 2003 (the "Superior Mortgage"), and
intended to be recorded prior to the recording of this Instrument in the real
estate records of Allegheny County,

                                       13

<PAGE>

Pennsylvania; provided, that, nothing contained in this Section 5.13 shall be
deemed to limit, restrict or reduce in any way any other rights or remedies of
Mortgagee against Mortgagor under the Intercreditor Agreement and the other
Relevant Documents as to any collateral other than with respect to the Mortgaged
Property.

         Section 5.14.     Relevant Documents Revisions. In this Instrument,
references to this Instrument or to easement agreements, Leases, the
Intercreditor Agreement, and any other Relevant Documents include all
amendments, supplements, consolidations, replacements, restatements, extensions,
renewals and other modifications, to the extent applicable, and any refinancings
and refundings thereof, in whole or in part.

         Section 5.15.     WAIVER OF JURY TRIAL. MORTGAGOR AND MORTGAGEE
EXPRESSLY AND VOLUNTARILY WAIVE ANY AND ALL RIGHTS, WHETHER ARISING UNDER THE
UNITED STATES OR ANY STATE CONSTITUTION, ANY RULES OF CIVIL PROCEDURE, COMMON
LAW OR OTHERWISE, TO DEMAND A TRIAL BY JURY IN ANY ACTION, LAWSUIT, PROCEEDING,
COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF,
THIS INSTRUMENT OR THE OTHER RELEVANT DOCUMENTS, ANY AGREEMENTS ARISING UNDER OR
RELATING TO THIS INSTRUMENT, ANY MORTGAGED PROPERTY SECURING THE SECURED
OBLIGATIONS, OR THE DEALINGS OR RELATIONSHIPS BETWEEN MORTGAGOR AND MORTGAGEE.
NEITHER MORTGAGOR NOR MORTGAGEE, INCLUDING ANY ASSIGNEE OR SUCCESSOR OF
MORTGAGOR OR MORTGAGEE, SHALL SEEK A JURY TRIAL IN ANY SUCH ACTION. NEITHER
MORTGAGOR NOR MORTGAGEE SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER
ACTION WHEN A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS
SHALL BE SUBJECT TO NO EXCEPTIONS. NEITHER MORTGAGOR NOR MORTGAGEE HAS IN ANY
WAY AGREED WITH OR REPRESENTED TO THE OTHER THAT THE PROVISIONS OF THIS
PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

         Section 5.16.     Reduction of Secured Amount. In the event that the
maximum principal amount secured by this Instrument is less than the aggregate
Secured Obligations then the amount secured hereby shall be reduced only by the
last and final sums that the Mortgagor repays with respect to the Secured
Obligations and shall not be reduced by any intervening repayments of the
Secured Obligations. So long as the balance of the Secured Obligations exceeds
the amount secured hereby, any payments of the Secured Obligations shall not be
deemed to be applied against, or to reduce, the portion of the Secured
Obligations secured by this Instrument. Such payments shall instead be deemed to
reduce only such portions of the Secured Obligations as are secured by deeds of
trust or mortgages encumbering real property located outside the Commonwealth of
Pennsylvania which secure the entire Secured Obligations (except to the extent,
if any, that specific deeds of trust or mortgages in such states contain
specific limitations on the amount secured).

                            [Signature Page Follows]

                                       14

<PAGE>

                  IN WITNESS WHEREOF, this Instrument is executed as of the day
and year first above written by the person or persons identified below on behalf
of Mortgagor (and said person or persons hereby represent that they possess full
power and authority to execute this Instrument).

                                         MORTGAGOR:

Attest:                                  MARCONI COMMUNICATIONS, INC.
                                         a Delaware corporation

By: _______________________________      By: ___________________________________
    Name:  GLENN R. HACKER                   Name:  Patricia A. Hoffman
    Title: ASSISTANT SECRETARY               Title: Authorized Signatory

                                       15

<PAGE>

STATE OF ILLINOIS )
                                     )     ss:
COUNTY OF DU PAGE                    )

                  On this 15TH day of MAY, 2003, before me, the undersigned
officer, personally appeared Patricia A. Hoffman, who acknowledged herself to be
the Authorized Signatory of MARCONI COMMUNICATIONS, INC., a Delaware
corporation, and that she as such Authorized Signatory of such corporation,
being authorized to do so, executed the foregoing instrument for the purposes
therein contained by signing the name of the corporation by herself as
Authorized Signatory of such corporation.

                  In Witness Whereof, I hereunto set my hand and official seal.

                                     TERESA M. DARZINS
                                     Notary Public

My Commission Expires: 5/ 19/ 03               (OFFICIAL SEAL TERESA M. DARZINS)

                                       16

<PAGE>

                            CERTIFICATE OF RESIDENCE

I, EMMA ALESII , hereby certify that the address of the Mortgagee is Fifth
Floor, 100 Wood Street, London EC2V 7EX, United Kingdom.

                           By: ______________________________

                           Name: EMMA ALESII

                           Title: ATTORNEY FOR THE SECURITY TRUSTEE
                                  ---------------------------------

                                       17

<PAGE>

                                    EXHIBIT A

                                                  Allegheny County, Pennsylvania
                   1000 Marconi Drive, Warrendale (Marshall Township), PA  15086

                        Legal Description of the Premises

FIRST DESCRIBED

ALL THAT CERTAIN lot situate in the Township of Marshall, County of Allegheny
and Commonwealth of Pennsylvania, being designated as Lot I on a subdivision
plan titled Fore Systems Plan of Lots Revised, recorded in the Recorder's Office
of Allegheny County in Plan Book Volume 212, pages 102 to 105, bounded and
described as follows:

BEGINNING at a point on the Westerly line of Brush Creek Road, variable width,
said point being the Northeast corner of Lot I in the Fore Systems Plan of Lots
Revised, said point also being on the Northwest line of Lot I in the Lang
Partnership Plan of Lots No. 1, as recorded in Plan Book Volume 145, pages 117
and 118; thence along the dividing line between Lot 1 in the Fore Systems Plan
of Lots Revised and Lots I and 2 in the Lang Partnership Plan of Lots No. 1,
South 44(degree)15'39" West, 481.25 feet to a point at the Northeast corner of
property now or formerly of the County of Allegheny; thence along the dividing
line of Lot I in the Fore Systems Plan of Lots Revised and property now or
formerly of the County of Allegheny, South 46(degree)54'44" West 522.60 feet to
a point at the common corner of Lot I and Lot 2 in the Fore Systems Plan of Lots
Revised; thence along the dividing line between Lot 1 and Lot 2 in the Fore
Systems Plan of Lots Revised, the following nine (9) courses and distances, viz:
North 47(degree)44'08" West, 622.34 feet to a point: thence North
12(degree)08'22" West, 173.41 feet to a point; thence North 52(degree)54'13"
West, 111.32 feet to a point; thence North 02(degree)08'38" West, 170.09 feet to
a point; thence by an arc of a circle deflecting to the left in a
Northeastwardly direction, having a radius of 2,515.00 feet and an arc distance
of 108.35 feet (chord bearing and distance, North 86(degree)48'29" West, 108.34
feet) to a point of reverse curve; thence by an arc of a circle deflecting to
the right in a Southeastwardly direction, having a radius of 218.00 feet and an
arc distance of 128.71 feet (chord bearing and distance, South 77(degree)30'44"
East, 126.85 feet) to a point; thence North 28(degree)17'39" East, 297.08 feet
to a point; thence North 87'0925" East, 315_64 feet to a point; thence North
44(degree)08'45" East, 185.00 feet to a point on the westerly line of Brush
Creek Road, variable width; thence along the westerly line of Brush Creek Road,
variable width, the following five (5) courses and distances, viz: South
45(degree)51'15" East, 105.49 feet to a point; thence by an arc of a circle
deflecting to the right in a Southeastwardly direction, having a radius of
1,875.00 feet and an arc distance of 116 .I7 feet to a point; thence South
42(degree)18'15" Fast, 127.49 feet to a point thence by an arc of a circle
deflecting to the left in a Southeastwardly direction, having a radius of
6,800.00 feet and an arc distance of 356.04 fat to a point; thence South
45(degree)18'15" East, 5.71 feet to a point at the place of beginning.

Containing 861,250.27 square feet or 19,772 acres.

Being designated as Block 9923-X, Lot 88152 in the Deed Registry Office of
Allegheny County, Pennsylvania.

SECOND DESCRIBED

                                      A-1

<PAGE>

ALL THAT CERTAIN lot situate in the Township of Marshall, County of Allegheny
and Commonwealth of Pennsylvania, being designated as Lot 2 on a subdivision
plan titled Fore Systems Plan of Lots Revised, recorded in the Recorder's Office
of Allegheny County in Plan Book Volume 212, pages 102 to 105, being bounded and
described as follows.

BEGINNING at a point on the Southerly line of Knob Road, 41.50 feet wide, said
point being the Northwest corner of Lot 2 in the Fore Systems Plan of Lots
Revised, said point also being the Northeast corner of Lot 3 in the Fore Systems
Plan of Lots Revised; thence along the dividing line between Lot 2 and Lot 3,
the following eight (8) courses and distances, viz: South 00(degree)29'53" West,
250.00 feet to a point; thence South 73(degree)26'50' West, 464.95 feet to a
point; thence North 86(degree)20'08" West, 138.14 feet to a point; thence South
02(degree)t 1'33" West, 350.00 feet to a point; thence South 41(degree)2523"
East, 170.00 feet to a point; thence South 26(degree)43'39" East, 204.75 feet to
a point; thence South 18(degree)58'59" East, 192.82 feet to a point; thence
South 47(degree)29'15" East, 612.36 feet to a point on the Northerly line of
property now or formerly of the County of Allegheny, said point also being the
Southwest corner of Lot 2 in the Fore Systems Plan of Lots Revised; thence along
the dividing line of Lot 2 and property now or formerly of the County of
Allegheny, North 46(degree)54'44" East, 267.30 feet to a point at the common
corner of Lot 2 and Lot 1 in the Fore Systems Plan of Lots Revised; thence along
the dividing line between Lot 2 and Lot l in the Fore Systems Plan of Lots
Revised, the following nine (9) courses and distances, viz: North
47(degree)44'08" West, 622.34 feet to a point; thence North 12(degree)08'22"
West, 173.41 feet to a point: thence North 52(degree)54'13" West, 111-32 feet to
a point; thence North 02"08'38" West, 170.09 feet to a point, thence by an arc
of a circle deflecting to the left in a Northeastwardly direction, having a
radius of 2,515_00 feet and an arc distance of 108.35 feet (chord bearing and
distance, North 86(degree)48'29" West, 108_34 feet) to a point of reverse curve;
thence by an arc of a circle deflecting to the right in a Southeastwardly
direction, having a radius of 218.00 feet and an arc distance of 128.71 feet
(chord bearing and distance. South 77(degree)30'44" East, 126_85 feet) to a
point; thence North 28(degree)17 39" East, 297.08 feet to a point; thence North
87(degree)09'25" East, 315.64 feet to a point; thence North 44(degree)08'45"
East, 185.00 feet to a point on the westerly line of Brush Creek Road, variable
width; thence along the westerly lire of Brush Creek Road, variable width, North
45(degree)51'15" West, 316.92 feet to a point on the Southerly line of Knob
Road, 41.50 feet wide; thence along the Southerly line of Knob Road, the
following three (3) courses and distances, viz: by an arc of a circle deflecting
to the left in a Southwestwardly direction, having a radius of 50_00 feet and an
arc distance of 39.10 feet to a point; thence South 89(degree)2025" West, 188.02
feet to a point; thence North 89(degree)30'07" West, 88.71 feet to a point at
the place of beginning.

Containing 650,301.86 square feet or 14,929 acres.

Being designated as Block 9923-X, Lot 88153 in the Deed Registry Office of
Allegheny County, Pennsylvania.

THIRD DESCRIBED

ALL THAT CERTAIN lot situate in the Township of Marshall, County of Allegheny
and Commonwealth of Pennsylvania, being designated as Lot 3 on a subdivision
plan titled Fore Systems Plan of Lots Revised, recorded in the Recorder's Office
of Allegheny County in Plan Book Volume 212, pages 102 to 105, bounded and
described as follows:

BEGINNING at a point on the Southerly line of Knob Road, 41.50 feet wide, said
point being the Northwest corner of Lot 3 in the Fore Systems Plan of Lots;
thence along the Southerly line of Knob Road, the following nine (9) courses and
distances, viz: by an arc of a circle deflecting to the left in a
Northeastwardly direction, having a radius of 41,975.00 feet and an arc distance
of 38.72 feet to a point;

                                      A-2

<PAGE>

thence North 87(degree)19'04" East, 216.34 feet to a point; thence North
87(degree)38'22" Fast, 631.36 feet to a point; thence by an arc of a circle
deflecting to the left in a Northeastwardly direction, having a radius of
2,450.00 feet and an arc distance of 62.98 feet to a point; thence North
86(degree)10'00" East, 28.06 feet to a point; thence by an arc of a circle
deflecting to the right in a Northeastwardly direction, having a radius of
5,425.00 and an arc distance of 113.75 feet to a point; thence North
87(degree)22'05" East, 169.83 feet to a point; thence by an are of a circle
deflecting to the right in a Northeastwardly direction, having a radius of
2,675_00 feet and an arc distance of 146.13 feet to a point; thence South
89(degree)30'07' Fast, 35.62 feet to a point at the Northeast corner of Lot 3 in
the Fore Systems Plan of Lots Revised, said point also being the Northwest
corner of Lot 2; thence along the dividing line between Lot 3 and Lot 2, the
following eight (8) courses and distances, viz: South 00(degree)29'53" West,
250.00 feet to a point; thence South 73(degree)26'50" West, 464.95 feet to a
point; thence North 86'20'08" West, 138.14 feet to a point; thence South
02(degree)11'33" West, 350.00 feet to a point; thence South 41(degree)2523'
Fast, 170.00 feet to a point; thence South 26(degree)43'39" East, 204_75 feet to
a point; thence South 18(degree)58'59" East, 192.82 feet to a point; thence
South 47(degree)29'15" East, 612.36 feet to a point on the Northerly line of
property now or formerly of the County of Allegheny, said point also being the
Southeast corner of Lot 3 in the Fore Systems Plan of Lots Revised thence along
the dividing line of Lot 3 and property now or formerly of the County of
Allegheny, South 46(degree)54'44" West, 34.59 feet to a point; thence continuing
along said dividing tine, South 49(degree)0733" West, 704.96 feet to a point at
the common corner of Lot 4 and Lot 3 in the Fore Systems Plan of Lots Revised;
thence along the dividing line between Lot 4 and Lot 3 in the Fore Systems Plan
of Lots Revised, the following nine (9) courses and distances, viz North
30(degree)1621" West, 464.81 feet to a point; thence by an arc of a circle
deflecting to the left in a Northeastwardly direction, having a radius of 516.00
feet and an arc distance of 154.70 feet to a point; thence North
42(degree)30'45" East, 283.71 feet to a point; thence North 45(degree)43'00"
West, 587.23 feet to a point; thence South 84(degree)55'17" West, 94.52 feet to
a point; thence South 05(degree)04'43" Fast, 91.68 feet to a point; thence by an
arc of a circle deflecting to the right in a Southwestwardly direction, having a
radius of 185.00 feet and an arc distance of 106.48 feet to a point; thence
North 63"13'37" West, 579.82 feet to a point; thence North 02(degree)17'22"
West, 879.76 feet to a point at the place of beginning.

Containing 1,463,345.09 square feet or 33.594 acres.

Being designated as Block 9923-X, Lot 88154 and Block 9923-X, Lot 88150 in the
Deed Registry Office, of Allegheny County, Pennsylvania.

FOURTH DESCRIBED

ALL THAT CERTAIN lot situate in the Township of Marshall, County of Allegheny
and Commonwealth of Pennsylvania, being designated as Lot 4 on a subdivision
plan titled "Fore Systems Plan of Lots Revised" dated September 11, 1996, last
revised December 1, 1998, and recorded in the Allegheny County Recorder of Deeds
Office in Plan Book Volume 212, pages 102 to 105, being bounded and described as
follows:

BEGINNING at a point on the Southerly line of Knob Road, 41.50 feet wide, said
point also being the Northwest corner of Lot 4 in the Fore Systems Plan of Lots
Revised, and also being the Northeast corner of property now or formerly of the
County of Allegheny as recorded in Deed Book Volume 4483, page 66, and Deed Book
Volume 6551, page 243; thence along the dividing line between Lot 4 in the Fore
Systems Plan of Lots Revised and property now or formerly of the County of
Allegheny, the following six (6) courses and distances, via: South 44"03'59"
East, 186.32 feet to a point; thence South 07(degree)5129" East, 1,794.26 feet
to a point; thence South 42(degree)49"21" East, 375.00 feet to a point: thence
South 7t(degree)03'04" East, 509.71 feet to a point; thence North
37(degree)03'18" East, 226.12 feet to a point; thence North 49(degree)07'33"
East, 203.00 feet to a point at the common corner of Lot 4 and Lot 3 in the Fore
Systems Plan of Lots

                                      A-3

<PAGE>

Revised; thence along the dividing line between Lot 4 and Lot 3 in the Fore
Systems Plan of Lots Revised, the following nine (9) courses and distances, via
North 30(degree)16'21" West, 464.81 feet to a point; thence by an arc of a
circle deflecting to the left in a Northeastwardly direction, having a radius of
516.00 feet and an arc distance of 154.70 feet to a point; thence North
42(degree)3045" East, 283.71 feet to a point; thence North 45(degree)43'00"
West, 587.23 feet to a point; thence South 84(degree)55'17" West, 94.52 feet to
a point; thence South 05(degree)04'43" East, 91.68 feet to a point; thence by an
arc of a circle deflecting to the right in a Southwestwardly direction, having a
radius of 185.00 feet and an arc distance of 106.48 feet to a point; thence
North 63(degree)13'37" West, 579.82 feet to a point; thence North
02(degree)1722" West, 879.76 feet to a point on the Southerly line of Knob Road,
41.50 feet wide; thence along the Southerly line of Knob Road, 4150 feet wide,
by an arc to a circle deflecting to the right in a Southwestwardly direction,
having a radius of 41,975.00 feet and an arc distance of 399.30 feet to a point
at the place of beginning.

Containing 1,441,364.07 square feet or 33.089 acres.

Being designated as Block 9923-X, Lot 88155 and Block 9923-X, Lot 88151 in the
Deed Registry Office of Allegheny County, Pennsylvania.

FIRST, SECOND, THIRD AND FOURTH TOGETHER DESCRIBED

ALL THAT CERTAIN lot situate in the Township of Marshall, County of Allegheny
and Commonwealth of Pennsylvania, being designated as Lots 1 through 4 on a
subdivision plan titled Fore Systems Plan of Lots Revised, recorded in the
Recorder's Office of Allegheny County in Plan Book Volume 212, pages 102 to 105,
bounded and described as follows:

BEGINNING at a point on the Westerly line of Brush Creek Road, variable width,
said point being the Northeast corner of Lot 1 in the Fore Systems Plan of Lots
Revised, said point also being on the Northwest line of Lot 1 in the Lang
Partnership Plan of Lots No. l, as recorded in Plan Book Volume 145, pages 117
and 118; thence along the dividing line between Lot 1 in the Fore Systems Plan
of Lots Revised and Lots I and 2 in theLang Partnership Plan of Lots No.1, South
44(degree)15'39" West, 481.25 feet to a point at the Northeast corner of
property now or formerly of the County of Allegheny; thence along the dividing
line of Lots 1, 2 and 3 in the Fore Systems Plan of Lots Revised and property
now or formerly of the County of Allegheny, South 46(degree)5444" West, 824.49
feet to a point; thence along the dividing tine of Lots 3 and 4 in the Fore
Systems Plan of Lots Revised and property now or formerly of the County of
Allegheny, South 49(degree)07'33" West, 907.95 feet to a point; thence along the
dividing line of Lot 4 in the Fore Systems Plan of Lots Revised and property now
or formerly of the County of Allegheny, the following five (5) courses and
distances, viz: South 37(degree)03'18" West, 226.12 feet to a point; thence
North 71(degree)03'04" West, 509.71 feet to a point; thence North
42(degree)49'21" West, 375.00 feet to a point; thence North 07(degree)5129"
West, 1,794.26 feet to a point; thence North 44(degree)03'59" West, 186.32 feet
to a point on the Southerly line of Knob Road, 41.50 feet wide, also being the
Northwest corner of Lot 4 in the Fore Systems Plan of Lots Revised; thence along
the Southerly line of Knob Road, 41.50 feet wide, following eleven (11) courses
and distances, viz: by an arc to a circle deflecting to the left in a
Northeastwardly direction, having a radius of 41,975.00 feet and an are distance
of 438.02 feet to a point. thence North 87(degree)19'04" Easy 216.34 feet to a
point; thence North 87(degree)3822" East, 631.36 feet to a point; thence by an
arc of a circle deflecting to the left in a Northeastwardly direction, having a
radius of 2,450.00 feet and an arc distance of 62.98 feet to a point; thence
North 86(degree)10'00" East, 28.06 feel to a point; thence by an arc of a
circle- deflecting to the right in a Northeastwardly direction, having a radius
of 5,425.00 feet and an art: distance of 113.75 feet to a point; thence North
87(degree)22'05" East, 169.83 feet to a point; thence by an arc of a circle
deflecting to the right in a Northeastwardly direction, having a radius of
2,675.00 feet and an arc distance of 146.13 feet to a point; thence South
89(degree)30'07" East, 124.33 feet to a point; thence North

                                      A-4

<PAGE>

89(degree)20'25" East, 188.02 feet to a point, thence by an arc of a circle
deflecting to the right in a Southeastwardly direction, having a radius of 50_00
feet and an arc distance of 39.10 feet to a point on the westerly line of Brush
Creek Road, variable width; thence along the westerly line of Brush Creek Road,
variable width, the following five (5) courses and distances, viz:, South
45(degree)51'15" East, 422.41 feet to a point; thence by an arc of a circle
deflecting to the right in a Southeastwardly direction, having a radius of
1,875.00 feet and an arc distance of 116.17 feet to a point; thence South
42(degree)18'15" East, 127.49 feet to a point; thence by an arc of a circle
deflecting to the left in a Southeastwardly direction, having a radius of
6,800.00 feet and an arc distance of 356.04 feet to a point; thence South
45(degree)19'15" East, 5.71 feet to a point at the place of beginning.

Containing 4,416,261.17 square feet or 101.383 acres_

BEING the same premises which Allegheny County by Deed dated 10/17/1995 and
recorded 10/20/1995 in the County of Allegheny in Deed Book Volume 9564 page
650, granted and conveyed unto Fore Systems, Inc., a Delaware corporation, in
fee.

BEING the same premises which Allegheny County by Deed dated 10/17/1995 and
recorded 10/20/1995 in the County of Allegheny in Deed Book Volume 9565 page 49,
granted and conveyed unto Fore Systems, Inc., a Delaware corporation, in fee.

BEING the same premises which Allegheny County by Deed dated 11/3/1998 and
recorded 12/3/1998 in the County of Allegheny in Deed Book Volume 10367 page
634, granted and conveyed unto Fore Systems, Inc., a Delaware corporation, in
fee.

AND the said Fore Systems, Inc. is now known as Marconi Communications, Inc., a
Delaware corporation, in fee.

                                      A-5

<PAGE>

                                    EXHIBIT B

                           Permitted Title Exceptions

1.       The following matters set forth on the Fore Systems Plan of Lots
         recorded in Plan Book Volume 194 pages 130 to 133 and on the Fore
         Systems Plan of Lots Revised recorded 12/16/1998 in Plan Book Volume
         212 pages 102 to 105:

         a.       Fifty foot building setback line along Knob Road;

         b.       Fifty foot building setback line along Brush Creek Road;

         c.       Five hundred foot Corridor Enhancement District boundary;

         d.       Thirty foot wide easement for ingress, egress and regress;

         e.       Twenty-five foot wide trail easement crossing Lots No. 2, 3
                  and 4;

         f.       Notation on Plan that all sanitary sewer easements are
                  dedicated for the benefit of the Marshall Township Municipal
                  Sanitary Authority.

2.       Easement Agreement between Fore Systems, Inc. and the Township of
         Marshall dated 12/14/1995 and recorded in Deed Book Volume 9625 page
         153.

3.       Right-of-way from Fore Systems, Inc. to Pennsylvania Power Company
         dated 10/31/1996 and recorded in Deed Book Volume 9832 page 127.

4.       Right-of-way from Fore Systems, Inc. to Columbia Gas of Pennsylvania,
         Inc. dated 4/22/1996 and recorded in Deed Book Volume 9856 page 457.

5.       Right-of-way from Fore Systems, Inc. to Pennsylvania Power Company
         dated 4/2/1996 and recorded in Deed Book Volume 9698 page 59.

6.       Sewer Line Easement Agreement between Fore Systems, Inc. and Marshall
         Township Municipal Sanitary Authority dated 12/20/1996 and recorded in
         Deed Book Volume 9853 page 370.

7.       Deed of Dedication for roadway purposes between Fore Systems, Inc. and
         County of Allegheny dated 4/18/1996 and recorded in Deed Book Volume
         9687 page 144.

8.       Right-of-way Agreement from Fore Systems, Inc. to Pennsylvania Power
         Company dated 2/28/2000 and recorded in Deed Book Volume 10751 page
         256. (As to Fourth Parcel).

9.       ALTA/ACSM Land Title Survey prepared by Civil & Environmental
         Consultants, Inc., Pittsburgh, PA dated 1/10/03 discloses the
         following:

         a. overhead and underground utilities;

         b. satellite easements for parking areas.

                                      B-1

<PAGE>

10.      Mortgage dated March 26, 2003 by Marconi Communications, Inc. to
         Liberty Funding, L.L.C. securing $22,500,000.00 and recorded on March
         28, 2003 in Mortgage Book Volume 24503 page 534.

11.      Assignment of Leases and Rents dated March 26, 2003 by Marconi
         Communications, Inc. to Liberty Funding, L.L.C. regarding Mortgage
         securing $22,500,000.00 and recorded on March 28, 2003 in Deed Book
         Volume 11607 page 584.

12.      UCC Financing Statement from Marconi Communications, Inc., as debtor,
         to Liberty Funding, L.L.C., as secured party, regarding Mortgage
         securing $22,500,000.00 and filed on March 28, 2003 as Instrument No.
         59931.

13.      UCC Financing Statement from Marconi Communications, Inc., as debtor,
         to The Law Debenture Trust Corporation p.l.c., as security trustee, as
         secured party, to be filed in Allegheny County.

                                      B-2<PAGE>

                                                                   EXHIBIT 4.119

Prepared by and mail to:

                                                                  CONFORMED COPY

Clifford Chance US LLP
200 Park Avenue
New York, New York 10166
Attn: Dawn E. Goldberg, Esq.

                                                            DALLAS COUNTY, TEXAS

                      DEED OF TRUST, ASSIGNMENT OF LEASES,
           SECURITY AGREEMENT, FINANCING STATEMENT AND FIXTURE FILING

                  THIS DEED OF TRUST (this "Instrument") entered into as of the
15th day of May, 2003 but effective as of the 19th day of May, 2003 by MARCONI
COMMUNICATIONS, INC., a Delaware corporation ("Trustor"), having an address at
c/o Marconi Corporation plc, One Bruton Street, London W1J 6AQ United Kingdom,
to WARD WILLIFORD ("Trustee"), having an address at 1909 Woodall Rodgers
Freeway, Suite 410, Dallas County, Texas 75201, for the use and benefit of THE
LAW DEBENTURE TRUST CORPORATION p.l.c., a public limited company organized under
the laws of England and Wales, as Security Trustee for the Secured Creditors (as
defined in the Intercreditor Agreement) (together with any co-trustee, co-agent
or other entity that may be appointed after the date hereof pursuant to clause
16 of the Intercreditor Agreement (as defined below)) ("Beneficiary") under the
Security Trust and Intercreditor Deed dated the date hereof and made among
Marconi Corporation plc as Issuer; Beneficiary; the persons listed in Schedule 1
thereto as Guarantors; Law Debenture Trust Company of New York as Senior Note
Trustee; JPMorgan Chase Bank as Junior Note Trustee; HSBC Bank plc as New
Bonding Facility Agent; The Bank of New York as Depositary, Paying Agent and
Registrar; the persons listed in Part A Schedule 2 thereto as Intra-Group
Creditors; the persons listed in Part B Schedule 2 thereto as Intra-Group
Borrowers and the persons listed in Schedule 3 thereto as New Bonding Facility
Banks (as amended, modified or supplemented from time to time, the
"Intercreditor Agreement"), having an address at Fifth Floor, 100 Wood Street,
London EC2V 7EX, United Kingdom. Capitalized terms used herein without
definition shall have the respective meanings assigned to such terms in the
Intercreditor Agreement.

                              W I T N E S S E T H:

                  WHEREAS, Trustor is a United States wholly-owned subsidiary of
Marconi Corporation, plc (the "Issuer"), which is the Issuer under the
Indentures, the Notes and the New Bonding Facility Agreement;

                  WHEREAS, as of the date hereof and in favor of Beneficiary,
Trustor has entered into a Guarantee of the Senior Notes and Senior Note
Indenture, a Guarantee of the Junior Notes and the Junior Note Indenture and a
Composite Guarantee of certain other obligations under the Relevant Documents,
including the New Bonding Facility Agreement (collectively, the "Guarantees"),
pursuant to which Trustor has agreed to guarantee the "Guaranteed Obligations"
(as such term is defined in each of the Guarantees) and has agreed to secure the
Guaranteed Obligations and other obligations;

                  WHEREAS, Trustor has received substantial benefit from the
Secured Obligations (as defined below) secured hereby, which consist of, among
other things, term notes and a revolving bonding

                                       1

<PAGE>

facility, made in the aggregate principal amount of up to One Billion Two
Hundred Eighty-Four Million Nine Hundred Twenty-Five Thousand and No/100 Dollars
(U.S. $1,284,925,000.00) with a maturity date of October 31, 2008; and

                  WHEREAS, Beneficiary and the Secured Creditors have required
that Trustor execute and deliver this Instrument (i) in order to secure the
prompt and complete payment, observance and performance of all of the Secured
Obligations (as defined below) and (ii) as a condition precedent to Beneficiary
and the Secured Creditors entering into the Relevant Documents.

                  NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                 GRANTING CLAUSE

                  To secure the payment and the performance and discharge of the
Secured Obligations (as hereinafter defined), and for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged and
confessed, Trustor has GRANTED, BARGAINED, SOLD, WARRANTED, MORTGAGED, ASSIGNED,
TRANSFERRED and CONVEYED, and by these presents does GRANT, BARGAIN, SELL,
WARRANT, MORTGAGE, ASSIGN, TRANSFER and CONVEY unto Trustee, in trust for the
use and benefit of Beneficiary, with power of sale and right of entry and
possession, all of Trustor's present and future estate, right, title and
interest in and to the Mortgaged Property (as hereinafter defined) now owned, or
hereafter acquired by Trustor, including the following described real estate in
Dallas County, Texas (the "State"):

                  See Exhibit A attached hereto and by this reference made a
part hereof which real estate (the "Land"), together with all right, title and
interest, if any, which Trustor may now have or hereafter acquire in and to all
improvements, buildings and structures thereon of every nature whatsoever, is
herein called the "Premises."

                  TOGETHER WITH all right, title and interest, if any, including
any after-acquired right, title and interest, and including any right of use or
occupancy, which Trustor may now have or hereafter acquire in and to (a) all
easements, rights of way, gores of land or any lands occupied by streets, ways,
alleys, passages, sewer rights, air rights, development rights, water courses,
water rights and powers, and public places adjoining said Land, and any other
interests in property constituting appurtenances to the Premises, or which
hereafter shall in any way belong, relate or be appurtenant thereto and (b) all
hereditaments, gas, oil, minerals (with the right to extract, sever and remove
such gas, oil and minerals), and easements, of every nature whatsoever, located
in or on the Premises and all other rights and privileges thereunto belonging or
appertaining and all extensions, additions, improvements, betterments, renewals,
substitutions and replacements to, or of any rights and interests described in
subparagraph (a) above and this subparagraph (b) (hereinafter collectively
called the "Property Rights").

                  TOGETHER WITH all additional lands, estates and development
rights hereafter acquired by Trustor for use in connection with and the
development of the Land, the Premises or the Property Rights and all additional
lands and estates therein which may, from time to time, by supplemental deed of
trust or otherwise, be expressly made subject to the lien of this Instrument.

                  TOGETHER WITH all right, title and interest, if any, including
any after-acquired right, title and interest which Trustor may now or hereafter
acquire in and to fixtures and appurtenances of every nature whatsoever now or
hereafter located in, on or attached to, and used or intended to be used in

                                       2

<PAGE>

connection with, or with the operation of, the Premises, including, but not
limited to, (a) all apparatus, machinery, and equipment of Trustor; (b) all
extensions, additions, improvements, betterments, renewals, substitutions, and
replacements to or of any of the foregoing (the items described in the foregoing
(a) and (b) being the "Fixtures"); and (c) all personal property and equipment
of every nature whatsoever now or hereafter located in or on the Premises,
including, but not limited to, (i) all screens, window shades, blinds,
wainscoting, storm doors and windows, floor coverings, and awnings of Trustor;
(ii) all apparatus, machinery, equipment and appliances of Trustor not included
as Fixtures; (iii) all items of furniture, furnishings, and personal property of
Trustor; and (iv) all extensions, additions, improvements, betterments,
renewals, substitutions, and replacements to or of any of the foregoing
(i)-(iii) (the items described in the foregoing (i)-(iv) and any other personal
property referred to in this paragraph being the "Personal Property") and in and
to the proceeds of the Personal Property. It is mutually agreed, intended and
declared that the Premises and all of the Property Rights and Fixtures owned by
Trustor (referred to collectively herein as the "Real Property") shall, so far
as permitted by law, be deemed to form a part and parcel of the Land and for the
purpose of this Instrument to be real estate and covered by this Instrument. It
is also agreed that if any of the property herein conveyed is of a nature so
that a security interest therein can be perfected under Article 9 of the Uniform
Commercial Code as enacted by the State ("UCC"), this Instrument shall
constitute a security agreement, fixture filing and financing statement, and
Trustor agrees to execute, deliver and file or refile any financing statement,
continuation statement, or other instruments Beneficiary may require from time
to time to perfect or renew such security interest under the UCC. To the extent
permitted by law, (x) all of the Fixtures are or are to become fixtures on the
Land; and (y) this Instrument shall be effective as a financing statement filed
as a fixture filing with respect to all fixtures included within the Mortgaged
Property and is to be filed for record in the real estate records in the Office
of the County Clerk where the Mortgaged Property (including said Fixtures) is
situated, in accordance with Section 9.502 and other applicable provisions of
the Texas Business and Commercial Code, as amended from time to time. This
Instrument shall also be effective as a financing statement covering minerals or
the like (including oil and gas) and accounts subject to Subsection (e) of
Section 9.103 of the Texas Business and Commerce Code, as amended, and is to be
filed for record in the real estate records of the county where the Mortgaged
Property is situated. The mailing address of Trustor and the address of
Beneficiary from which information concerning the security interest may be
obtained are set forth above. Subject to the terms and conditions of the
Intercreditor Agreement, the remedies for any violation of the covenants, terms
and conditions of the agreements herein contained shall be as prescribed herein
or by general law, or, as to that part of the security in which a security
interest may be perfected under the UCC, by the specific statutory consequences
now or hereafter enacted and specified in the UCC, all at Beneficiary's sole
election.

                  TOGETHER WITH all the estate, right, title and interest of
Trustor, in and to all (i) judgments, insurance proceeds, unearned premiums,
awards of damages and settlements, and any interest thereon, resulting from
condemnation proceedings or the taking of the Real Property, or any part
thereof, under the power of eminent domain or for any damage (whether caused by
such taking or otherwise) to the Real Property, the Personal Property or any
part thereof, or to any rights appurtenant thereto, and all proceeds of any
sales or other dispositions of the Real Property, the Personal Property or any
part thereof; and (subject to the terms of the Intercreditor Agreement)
Beneficiary is hereby authorized to collect and receive said awards and proceeds
and to give proper receipts and acquittances therefor, and to apply the same as
provided in the Intercreditor Agreement; (ii) contract rights, general
intangibles, actions and rights in action, relating to the Real Property or the
Personal Property, including, without limitation, all rights to insurance
proceeds and unearned premiums arising from or relating to damage to the Real
Property or the Personal Property; and (iii) proceeds, products, replacements,
additions, substitutions, renewals and accessions of and to the Real Property or
the Personal Property. (The rights and interests described in this paragraph
shall hereinafter be collectively called the "Intangibles.")

                                       3

<PAGE>

                  TOGETHER WITH all the rents, issues and profits of the Real
Property and all rents, issues, profits, revenues, royalties, bonuses, rights
and benefits due, including all rents, revenues, bonus money, royalties, rights
and benefits accruing to Trustor under all present and future oil, gas and
mineral leases located on any portion of the Mortgaged Property, payable or
accruing (including all deposits of money as advance rent, for security or as
earnest money or as downpayment for the purchase of all or any part of the Real
Property or the Personal Property) (the "Rents") under any and all Leases (as
defined below).

                  As additional security for the Secured Obligations, Trustor
does hereby pledge and assign to Beneficiary from and after the date hereof
(including any period of redemption), primarily and on a parity with said real
estate, and not secondarily, any and all present and future leases, contracts or
other agreements relating to the ownership of the Real Property or the Personal
Property or to the occupancy of all or any portion of the Real Property and,
except to the extent such a transfer or assignment is not permitted by the terms
thereof (and a consent to the transfer or assignment has not been obtained),
does hereby transfer and assign to Beneficiary all such leases, contracts and
agreements (including all Trustor's rights (x) under any contracts for the sale
of any portion of the Mortgaged Property (as hereinafter defined) and (y) to all
revenues and royalties under any oil, gas and mineral leases relating to the
Real Property) (the "Leases"). Trustor further agrees to execute and deliver
such assignments of leases or assignments of land sale contracts as Beneficiary
may from time to time request solely for the purpose of creating, protecting,
perfecting or maintaining an enforceable lien thereon and an enforceable and
valid assignment of Leases. Upon the occurrence of a Trigger Event, (i) Trustor
agrees, upon demand, to deliver to Beneficiary all of the Leases with such
additional assignments thereof as Beneficiary may request and agrees that
Beneficiary may assume the management of the Real Property, including taking
control of the Leases (provided that such assumption of management shall be done
solely to the extent necessary to collect the Rents in the event of a Material
Default), and (ii) Trustor hereby authorizes and directs all tenants, purchasers
or other persons occupying or otherwise acquiring any interest in any part of
the Real Property to pay the Rents due under the Leases to Beneficiary upon
request of Beneficiary. Trustor hereby appoints Beneficiary as its true and
lawful attorney-in-fact to manage said property and to control the Leases, with
full power to bring suit for collection of the Rents and possession of the Real
Property (provided that such possession shall be taken solely to the extent
necessary to collect such Rents in the event of a Material Default), giving and
granting unto said Beneficiary and unto its agent or attorney full power coupled
with an interest and authority to do and perform all and every act and thing
whatsoever requisite and necessary to be done in the protection of the security
hereby conveyed; provided, however, that (i) this power of attorney and
assignment of Leases shall not be construed as an obligation upon said
Beneficiary to make or cause to be made any repairs that may be needful or
necessary, and (ii) Beneficiary agrees that so long as no Trigger Event shall
have occurred, Beneficiary shall permit Trustor to perform the aforementioned
management responsibilities. Upon Beneficiary's receipt of the Rents, at
Beneficiary's option, it may: (i) pay charges for collection hereunder, costs of
necessary repairs and other costs requisite and necessary during the continuance
of this power of attorney and assignment of Rents, (ii) pay general and special
taxes, insurance premiums, and, thereafter, (iii) distribute the balance of the
Rents pursuant to the provisions of the Intercreditor Agreement. This power of
attorney and assignment of Leases shall be irrevocable until this Instrument
shall have been satisfied and released of record and the releasing or
reconveyance of this Instrument shall act as a revocation of this power of
attorney and assignment of Leases. Subject to Beneficiary's grant to Trustor of
the collection and use of the Rents set forth above, Beneficiary shall have and
hereby expressly reserves the right and privilege (but assumes no obligation) to
demand, collect, sue for, receive and recover the Rents, or any part thereof,
now existing or hereafter made, and apply the same in accordance with the
provisions of the Intercreditor Agreement. Notwithstanding anything to the
contrary herein, this power of attorney and assignment of Leases shall be
subject and subordinate to Beneficiary's rights set forth in that certain
Assignment of Rents dated of even date herewith, and if there is any conflict
between

                                       4

<PAGE>

the terms of this Instrument and the terms of such Assignment of Rents the terms
of such Assignment of Rents shall control. For purposes of this Instrument, a
"Trigger Event" shall mean (i) an Enforcement Event or (ii) a "Material Default"
which for purposes of this Instrument shall mean any event that is (A) an
Insolvency Event which is also an Event of Default or (B) any Event of Default
that the Instructing Trustee notifies and instructs Beneficiary to act in
response to pursuant to the Intercreditor Agreement. Notwithstanding anything
herein, upon an Enforcement Event, Beneficiary shall have the absolute right and
option to exercise any and all rights and remedies provided for in this
Instrument and available at law or in equity.

                  All of the property described above, and each item of property
herein described, and all other rights of Trustor in and to such items of
property, not limited to, but including, the Land, the Premises, the Property
Rights, the Fixtures, the Real Property, the Personal Property, the Intangibles,
the Rents and the Leases, is herein collectively referred to as the "Mortgaged
Property". As used herein, "Secured Obligations" means all present and future
indebtedness, liabilities and obligations (for the avoidance of doubt, including
any liabilities and obligations that have been cash-collateralized by Trustor),
at any time of Trustor under the Relevant Documents (including this Instrument),
including any liability in respect of any further advances, if any, made under
the Relevant Documents, both actual and contingent (and whether incurred solely
or jointly or in any other capacity) together with any of the following matters
relating to or arising in respect of those liabilities and obligations: (1) any
refinancing, novation, deferral or extension; (2) any obligation relating to any
increase in the amount of such obligations; (3) any claim for damages or
restitution; and (4) any claim as a result of any recovery by Trustor of a
payment or discharge, or non-allowability, on the grounds of preference; and any
amounts that would be included in any of the above but for any discharge,
non-provability or unenforceability of those amounts in any insolvency or other
proceedings (including interest accruing after the commencement of any
insolvency or other proceedings).

                  Nothing herein contained shall be construed as constituting
Beneficiary or any of its Delegates and any of the Secured Creditors a
mortgagee-in-possession in the absence of the taking of actual possession of the
Mortgaged Property by Beneficiary or any of its Delegates or any of the Secured
Creditors. Nothing contained in this Instrument shall be construed as imposing
on Beneficiary any of the obligations of the lessor under any lease of the
Mortgaged Property in the absence of an explicit assumption thereof by
Beneficiary. In the exercise of the powers herein granted Beneficiary, no
liability shall be asserted or enforced against Beneficiary, all such liability
being expressly waived and released by Trustor.

                  TO HAVE AND TO HOLD the Mortgaged Property, properties, rights
and privileges hereby conveyed or assigned, or intended so to be, unto Trustee,
its successors and assigns, for the benefit of Beneficiary, its successors and
assigns, forever upon the trusts, terms and conditions and for the uses and
purposes herein set forth. The conveyance of the Mortgaged Property provided for
herein is made upon this special trust. If the Secured Obligations are paid and
performed in full and completely as and when due in accordance with their
respective terms, the conveyance provided for herein shall be released upon
satisfaction of the conditions set forth in Section 5.3 of the Intercreditor
Agreement and shall thereafter be null and void and may be canceled of record at
the request and cost of Trustor and title shall revest as provided by law. If,
however, a Trigger Event shall have occurred, then Beneficiary shall be entitled
to invoke the remedies in the granting clause above in connection with the
assignment of Leases and Rents, and if an Enforcement Event shall have occurred,
then Beneficiary shall, in addition to all other rights and remedies at law or
equity provided, be entitled to invoke the remedies provided for in Section 4.02
below including without limitation the right to foreclose this Instrument by
judicial proceedings or, at Beneficiary's election, the right to demand that
Trustee foreclose this Instrument

                                       5

<PAGE>

through exercise of the power of sale herein granted to Trustee, and upon such
demand by Beneficiary, Trustee shall have the right and the duty to foreclose
this Instrument as herein provided.

                  The following provisions shall also constitute an integral
part of this Instrument:

                                    ARTICLE I

                                   [Reserved]

                                   ARTICLE II

                              COVENANTS OF TRUSTOR

         Section 2.01.     [Reserved]

         Section 2.02.     Leases Affecting the Real Property. All future
lessees under any Lease of the Real Property, or any part thereof, made after
the date of recording of this Instrument shall, at Beneficiary's option and
without any further documentation, attorn to Beneficiary as lessor if for any
reason Beneficiary becomes lessor thereunder, and, thereafter, upon demand, to
pay Rent to Beneficiary, and Beneficiary shall not be responsible under such
Lease for matters arising prior to Beneficiary becoming lessor thereunder. In
respect of each Lease which may be entered into on or after the date hereof, the
lien and estate, as well as the provisions, terms and conditions of each Lease
shall in all respects be subordinate and junior to the lien of this Instrument.

         Section 2.03.     Further Assurances. Trustor, at its sole cost and
expense, shall (i) upon request of Beneficiary promptly correct any defect or
error which may be discovered in this Instrument or any financing statement or
other document relating hereto solely to the extent necessary to create,
effectuate, complete, perfect, continue or preserve the lien of this Instrument
on the Mortgaged Property, and (ii) promptly execute, acknowledge, deliver,
record and re-record, register and re-register, and file and re-file this
Instrument, any amendment to this Instrument and any financing statements or
other documents which Beneficiary may request in writing from time to time (all
in form and substance reasonably satisfactory to Beneficiary) in order (A) to
create, effectuate, complete, perfect, continue or preserve the lien of this
Instrument as a first priority lien on the Mortgaged Property, whether now owned
or hereafter acquired, subject only to the matters set forth on Exhibit B
attached hereto and made a part hereof and except for the Permitted Liens (as
defined in the Indentures), or (B) to create, effectuate, complete, perfect,
continue, preserve or validate any right, power or privilege granted or intended
to be granted to Beneficiary hereunder or otherwise accomplish the purposes of
this Instrument. To the extent permitted by law and to the extent that Trustor
fails to do so as required hereunder, Trustor hereby authorizes Beneficiary to
file financing statements or continuation statements covering the Mortgaged
Property.

         Section 2.04.     Casualty Proceeds. Trustor hereby assigns to
Beneficiary, as additional security, all proceeds or awards of damage resulting
from a casualty event or condemnation proceedings or the taking of or injury to
the Real Property for public use. All such proceeds or awards paid to
Beneficiary hereunder shall be applied in accordance with the Indentures.

         Section 2.05.     Inspections. Trustor hereby authorizes Beneficiary,
its agents, employees and representatives, upon reasonable prior written notice
to Trustor (except in an emergency or following the occurrence of any Trigger
Event, in which case notice shall not be required) to visit and inspect the

                                       6

<PAGE>

Mortgaged Property or any portion(s) thereof, all at such reasonable times and
as often as Beneficiary may reasonably request.

         Section 2.06.     Indemnity. Trustor hereby indemnifies Beneficiary or
any person designated by it and keep Beneficiary or such person designated by it
indemnified against any and all costs, claims and liabilities which it may incur
as a result of anything done by it as an attorney-in-fact for Trustor in the
proper exercise of any of the powers conferred, or purported to be conferred,
thereon by this Instrument unless such cost, claim or liability arises as a
result of the negligence or wilful misconduct of Beneficiary or such person
designated by it. For clarification purposes, the indemnity set forth in this
Section 2.06 shall apply solely in those instances where Beneficiary or a
Delegate acts as an attorney-in-fact for Trustor for purposes of this
Instrument.

         Section 2.07.     After Acquired Property Interests. All right, title
and interest of Trustor in and to all of the Mortgaged Property, hereafter
acquired by Trustor ("After Acquired Property Interests"), immediately upon such
acquisition, without any further mortgage, conveyance, assignment or other act
by Trustor, shall become subject to the lien of this Instrument as fully and
completely, and with the same effect, as though owned by Trustor on the date
hereof and specifically described in the granting clauses hereof. Trustor shall
execute and deliver to Beneficiary all such other deeds of trust or mortgages
and other agreements as Beneficiary may require for the purpose of expressly and
specifically subjecting such After Acquired Property Interests to the lien of
this Instrument. Trustor hereby irrevocably authorizes and appoints Beneficiary
as the agent and attorney-in-fact of Trustor to execute all such documents and
instruments on behalf of Trustor, which appointment shall be irrevocable and
coupled with an interest, if Trustor fails or refuses to do so within ten (10)
days after written request therefor by Beneficiary.

         Section 2.08.     Expenses and Costs. Trustor shall, from time to time
and promptly on demand by Beneficiary reimburse to Beneficiary all costs and
expenses (including legal fees) on a full indemnity basis incurred by
Beneficiary and any Delegate in connection with:

         1.       the execution, release and discharge of this Instrument and
                  the security created hereby or intended to be created hereby
                  in respect of the Mortgaged Property and the completion of the
                  transactions and perfection of the security contemplated in
                  this Instrument or forming part of the security created hereby
                  or intended to be created hereby in respect of the Mortgaged
                  Property;

         2.       the actual or contemplated exercise, preservation and/or
                  enforcement of any of the rights, powers and remedies of, or
                  the performance of the duties and obligations of, Beneficiary
                  or any Delegate, or any amendment or waiver in respect of this
                  Instrument;

         3.       the foreclosure (whether judicial or by power of sale) of any
                  Mortgaged Property; and

         4.       the preservation and/or enforcement of the security created
                  hereby or intended to be created hereby in respect of the
                  Mortgaged Property,

which shall carry interest from the date of such demand until so reimbursed at
the rate and on the basis as mentioned in Clause 18.4 of the Intercreditor
Agreement.

         Section 2.09.     Taxes. Trustor shall pay, promptly on demand of
Beneficiary all stamp, registration, notarial and other similar taxes or fees
paid or payable by Beneficiary in connection with any action taken or
contemplated by or on behalf of Beneficiary for perfecting, maintaining,
enforcing, releasing, cancelling, reassigning or resolving any doubt concerning,
or for any other purpose in relation

                                       7

<PAGE>

to this Instrument, any amendment thereto, any transfer and/or assignment of the
rights and/or obligations under the same or the security created hereby or
intended to be created hereby in respect of the Mortgaged Property and shall,
from time to time, indemnify Beneficiary promptly on demand against any
liabilities, costs, claims and expenses resulting from any failure to pay by
Trustor or any delay by Trustor in paying any such taxes or fees.

                                   ARTICLE III

                              BENEFICIARY'S RIGHTS

         Section 3.01.     Performance of Trustor's Obligations. Trustor agrees
that, upon the occurrence of an Enforcement Event, Beneficiary may, but need
not, make any payment or perform any act hereinbefore required of Trustor, in
any form and manner deemed expedient. By way of illustration and not in
limitation of the foregoing, Beneficiary may, but need not, (i) make full or
partial payments of insurance premiums which are unpaid by Trustor, coordinate
liens or encumbrances, if any, (ii) purchase, discharge, compromise or settle
any tax lien or any other lien, encumbrance, suit, proceeding, title or claim
thereof, or (iii) redeem all or any part of the Premises from any tax or
assessment. All moneys paid for any of the purposes herein authorized and all
other moneys advanced by Beneficiary to protect the Mortgaged Property and the
lien hereof shall be additional Secured Obligations and shall become immediately
due and payable without notice and shall bear interest thereon at the rate set
forth in Clause 18.4 of the Intercreditor Agreement until paid to Beneficiary in
full. In making any payment hereby authorized relating to taxes, assessments or
prior or coordinate liens or encumbrances, Beneficiary shall be the sole judge
of the legality, validity and priority thereof and of the amount necessary to be
paid in satisfaction thereof.

                                   ARTICLE IV

                                REMEDIES & RIGHTS

         Section 4.01.     Remedies of Beneficiary; Power of Sale. Upon the
occurrence of an Enforcement Event, Beneficiary may, without notice to or demand
upon Trustor, declare this Instrument to be in default, and, in addition to all
other rights and remedies at law or in equity available to Beneficiary or as
otherwise provided for in the Intercreditor Agreement or the Indentures, to the
extent permitted by applicable law, the following provisions shall apply:

                  (a)      Upon the occurrence of an Enforcement Event, it shall
thereupon be the duty of Trustee, or his successor or substitute, as hereinafter
provided, to enforce this trust at the request of the Beneficiary (which request
shall be presumed) and to sell the Mortgaged Property with or without first
having taken possession of the same and in whole or in part, as the acting
Trustee may elect (all rights to a marshalling of assets of Trustor being
expressly waived hereby), in compliance with the applicable requirements, at the
time of the sale, of Section 51.002 of the Texas Property Code as amended or
superceded from time to time. Such sale shall be made to the highest bidder for
cash at public auction at the County Courthouse of any County in which the
Mortgaged Property is situated, in the area of such courthouse designated for
real property foreclosure sales in accordance with applicable law (or in the
absence of any such designation, in the area set forth in the notice of sale
hereinafter described) on the first Tuesday of any month between the hours of
10:00 A.M. and 4:00 P.M. (commencing no earlier than such time as may be
designated in the hereinafter described notice of sale), after giving notice of
the time, place and terms of sale and the Mortgaged Property to be sold by (i)
the acting Trustee or any person chosen by him filing a copy of the notice
thereof in the office of the County Clerk of each County where the Mortgaged
Property is situated and by posting or causing to be posted written or printed
notice thereof

                                       8

<PAGE>

at least twenty-one (21) days preceding the date of said sale at the County
Courthouse door of each County, and (ii) Beneficiary or any person chosen by it,
at least twenty-one (21) days preceding the date of said sale, serving written
notice of such proposed sale by certified mail on each debtor obligated to pay
the Secured Obligations evidenced by the Notes according to the records of
Beneficiary. Service of such notice to each debtor shall be completed upon
deposit of the notice enclosed in a postpaid wrapper, properly addressed to each
debtor at the most recent address as shown by the records of Beneficiary, in a
post office or official depository under the care and custody of the United
States Postal Service. The affidavit of any person having knowledge of the facts
to the effect that such service was completed shall be prima facie evidence of
the fact of service. After such sale, the acting Trustee shall make due
conveyance with special warranty to the purchaser or purchasers and Trustor
binds itself, its heirs, assigns, executors, administrators, successors and
legal representatives to warrant and forever defend the title of such purchaser
or purchasers, claiming by, through, or under grantor but not otherwise. Any
abstract of title to the Mortgaged Property furnished in connection with the
loan secured by this Instrument shall be delivered by Trustee and become the
property of the purchaser at said sale.

                  (b)      Upon the occurrence of an Enforcement Event, the
Beneficiary shall have the right and option to proceed with foreclosure in
satisfaction of such item or items by directing Trustee, or his successor or
substitute as hereinafter provided, to proceed as if under a full foreclosure,
conducting the sale as herein provided, and without declaring the whole Secured
Obligations due, and provided that if sale is made because of an occurrence of
an Enforcement Event as hereinabove mentioned, such sale may be made subject to
the unmatured part of the Relevant Documents and the Secured Obligations secured
hereby, and it is agreed that such sale, if so made, shall not in any manner
affect any other obligation or obligations secured hereby, but as to such other
obligations this Instrument and the liens created hereby shall remain in full
force and effect just as though no sale had been made under the provisions of
this Section 4.01(a). It is further agreed that several sales may be made
hereunder without exhausting the right of sale for any other breach of any of
the obligations secured hereby, it being the purpose to provide for a
foreclosure and sale of the Mortgaged Property for any matured portion of any of
the Secured Obligations secured hereby or other items provided for herein
without exhausting the power to foreclose and to sell the Mortgaged Property for
any other part of the Secured Obligations secured hereby whether matured at the
time or subsequently maturing.

                  (c)      Subject to the terms and provisions of the
Intercreditor Agreement, the proceeds from any such sale shall be applied by the
acting Trustee as follows:

                                    FIRST:   To the payment of all expenses of
                                             advertising, selling and conveying
                                             the Mortgaged Property, including a
                                             reasonable commission to the acting
                                             Trustee.

                                    SECOND:  To the payment to Beneficiary of
                                             all unpaid Secured Obligations,
                                             including accrued interest to the
                                             date of sale, in such priority and
                                             proportions as Beneficiary in its
                                             discretion shall deem proper.

                                    THIRD:   The balance, if any, shall be paid
                                             to Trustor.

                  (d)      The acting Trustee hereunder shall have the right to
sell the Mortgaged Property in whole or in part and in such parcels and order as
he may determine, and the right of sale hereunder shall not be exhausted by one
or more sales, but successive sales may be had until all of the Mortgaged
Property have been legally sold. In the event any sale hereunder is not
completed or is defective in the opinion of Beneficiary, such sale shall not
exhaust the power of sale hereunder, and Beneficiary shall have the right to
cause a subsequent sale or sales to be made by Trustee or any successor or
substitute Trustee. Likewise, Beneficiary may become the purchaser at any such
sale if it is the highest bidder, and shall

                                       9

<PAGE>

have the right, after paying or accounting for all costs of said sale or sales,
to credit the amount of the bid upon the amount of the Secured Obligations
owing, in lieu of cash payment. The purchaser or purchasers at foreclosure shall
have the right to affirm or disaffirm any Lease.

                  (e)      It shall not be necessary for the acting Trustee to
have constructively in his possession any part of the real or personal property
covered by this Instrument, and the title and right of possession of the
Mortgaged Property shall pass to the purchaser or purchasers at any sale
hereunder as fully as if the same had been actually present and delivered.
Likewise, on foreclosure of this Instrument whether by power of sale herein
contained or otherwise, Trustor or any person claiming any part of the Mortgaged
Property by, through or under Trustor, shall not be entitled to a marshalling of
assets or a sale in inverse order of alienation.

                  (f)      The recitals and statements of fact contained in any
notice or in any conveyance to the purchaser or purchasers at any sale hereunder
shall be prima facie evidence of the truth of such facts, and all prerequisites
and requirements necessary to the validity of any such sale shall be presumed to
have been performed.

                  (g)      Any sale under the powers granted by this Instrument
shall be a perpetual bar against Trustor, its heirs, successors, assigns and
legal representatives.

                  (h)      In the event of a foreclosure under the powers
granted by this Instrument, Trustor, and all other persons in possession of any
part of the Mortgaged Property shall be deemed tenants at will of the purchaser
at such foreclosure sale and shall be liable for a reasonable rental for the use
of the Mortgaged Property; and if any such tenants refuse to surrender
possession of the Mortgaged Property upon demand, the purchaser shall be
entitled to institute and maintain the statutory action of forcible entry and
detainer and procure a writ of possession thereunder, and Trustor expressly
waives all damages sustained by reason thereof.

                  (i)      To the extent Section 51.003 of the Texas Property
Code, or any amendment thereto or judicial interpretation thereof, requires that
the "fair market value" of the Mortgaged Property shall be determined as of the
foreclosure date in order to enforce a deficiency against Trustor or any other
party liable for the repayment of the Secured Obligations, the term "fair market
value" shall include those matters required by law and shall also include the
additional factors as follows:

                           (i)      The Mortgaged Property is to be valued "AS
IS, WHERE IS" and "WITH ALL FAULTS" and there shall be no assumption of
restoration of or refurbishment of the Mortgaged Property after the date of
foreclosure;

                           (ii)     There shall be an assumption of a prompt
resale of the Mortgaged Property for an all cash sales price by the purchaser at
the foreclosure so that no extensive holding period should be factored into the
determination of "fair market value" of the Mortgaged Property;

                           (iii)    An offset to the fair market value of the
Mortgaged Property, as determined hereunder, shall be made by deducting from
such value the reasonable estimated closing costs relating to the sale of the
Mortgaged Property including but not limited to brokerage commissions, title
policy expenses, tax prorations, escrow fees, and other common charges which are
incurred by a seller of real property similar to the Mortgaged Property; and

                                       10

<PAGE>

                           (iv)     After consideration of the factors required
by law and those required above (including the addition of any income to be
generated by the Mortgaged Property), an additional discount factor shall be
calculated based upon the estimated time it will take to effectuate a sale of
the Mortgaged Property so that the "fair market value" as so determined is
discounted to be as of the date of the foreclosure of the Mortgaged Property.

         Section 4.02.     Application of the Rents or Proceeds from Foreclosure
or Sale. The Rents and the proceeds of any sale (whether through a foreclosure
proceeding or Beneficiary's exercise of the power of sale) shall be distributed
and applied in accordance with the terms of the Intercreditor Agreement. Subject
to the terms and provisions of the Intercreditor Agreement, there shall be
allowed (and included in the decree for sale in the event of a foreclosure by
judicial action) to be paid out of the Rents or the proceeds of such foreclosure
proceeding and/or sale:

                  (a)      Secured Obligations. All of the Secured Obligations
and other sums secured hereby which then remain unpaid;

                  (b)      Other Advances. All other items advanced or paid by
Beneficiary pursuant to this Instrument, with interest thereon at the rate set
forth in Clause 18.4 of the Intercreditor Agreement from the date of
advancement; and

                  (c)      Costs, Fees and Other Expenses. All court costs,
reasonable in-house and outside attorneys' and paralegals' fees and expenses,
costs of environmental surveys and guard or other security services, appraiser's
fees, advertising costs, notice expenses, expenditures for documentary and
expert evidence, stenographer's charges, publication costs, and costs (which may
be estimated as to items to be expended after entry of the decree) of procuring
all abstracts of title, title searches and examinations, title guarantees, title
insurance policies, surveys, and similar data with respect to title which
Beneficiary may deem necessary. All such expenses shall become additional
Secured Obligations and be immediately due and payable, with interest thereon at
the rate set forth in Clause 18.4 of the Intercreditor Agreement, when paid or
incurred by Beneficiary or Trustee in connection with any proceedings,
including, but not limited to, probate and bankruptcy proceedings, to which
Beneficiary or Trustee shall be a party, either as plaintiff, claimant or
defendant, by reason of this Instrument or any indebtedness hereby secured or in
connection with the preparations for the commencement of any suit for the
foreclosure, whether or not actually commenced, or sale under the power of sale
herein granted.

         Section 4.03.     Cumulative Remedies; Delay or Omission Not a Waiver.
Each remedy or right of Beneficiary shall not be exclusive of, but shall be in
addition to, every other remedy or right now or hereafter existing at law or in
equity. No delay in the exercise or omission to exercise any remedy or right
accruing on the occurrence or existence of any Material Default or Enforcement
Event shall impair any such remedy or right or be construed to be a waiver of
any such Material Default or Enforcement Event or acquiescence therein, nor
shall it affect any subsequent Material Default or Enforcement Event of the same
or different nature. Every such remedy or right may be exercised concurrently or
independently and when and as often as may be deemed expedient by Beneficiary.
The acceptance by Beneficiary, any successor administrative agent or any secured
party of any payment less than the amount of the Secured Obligation in question
shall be deemed to be an acceptance on account only and shall not be construed
as a waiver of any Material Default or Enforcement Event with respect thereto,
and the acceptance by Beneficiary, any successor administrative agent or any
secured party of any payment of, or on account of, any Secured Obligation shall
not be deemed to be a waiver of any Material Default or Enforcement Event other
occurrence hereunder or under any Relevant Documents with respect to any other
Secured Obligation. If Beneficiary has proceeded to enforce any remedy or right
hereunder or with respect hereto by foreclosure, sale, entry or otherwise, it
may compromise, discontinue or abandon such

                                       11

<PAGE>

proceeding for any reason without notice to Trustor or any other party (except
any other agent, the Secured Creditors or the other secured parties to the
extent required by any Relevant Documents); and, if any such proceeding shall be
discontinued, abandoned or determined adversely for any reason, Trustor and
Beneficiary shall retain and be restored to their former positions and rights
hereunder with respect to the Mortgaged Property, subject to the lien hereof
except to the extent any such adverse determination specifically provides to the
contrary.

         Section 4.04.     Beneficiary's Remedies against Multiple Parcels. If
more than one property, lot or parcel is covered by this Instrument, and if this
Instrument is foreclosed upon, or judgment is entered upon any Secured
Obligations, or if Trustee effects a trustee's sale under power of sale,
execution may be made upon or Trustee may effect a trustee's sale against any
one or more of the properties, lots or parcels and not upon the others, or upon
all of such properties or parcels, either together or separately, and at
different times or at the same time, and execution sales or trustee's sale
herein granted may likewise be conducted separately or concurrently, in each
case at Beneficiary's election.

         Section 4.05.     No Merger. In the event of a foreclosure of this
Instrument or any other mortgage or deed of trust securing the Secured
Obligations, the Secured Obligations then due to the Beneficiary shall not be
merged into any decree of foreclosure entered by the court, and Beneficiary may
concurrently or subsequently seek to foreclose one or more other deeds of trust
which also secure said Secured Obligations.

         Section 4.06.     Waivers by Trustor. To the fullest extent permitted
under applicable law, Trustor shall not assert, and hereby irrevocably waives,
any right or defense Trustor may have under any statute or rule of law or equity
now or hereafter in effect relating to (a) homestead exemption, extension,
moratorium, stay, redemption, marshaling of the Mortgaged Property or the other
assets of Trustor, sale of the Mortgaged Property in any order or notice of
deficiency or intention to accelerate any Secured Obligation, (b) impairment of
any right of subrogation or reimbursement, (c) any requirement that at any time
any action must be taken against any other party, any portion of the Mortgaged
Property or any other asset of Trustor or any other party, (d) any provision
barring or limiting the right of Beneficiary to sell any Mortgaged Property
after any other sale of any other Mortgaged Property or any other action against
Trustor or any other party, (e) any provision barring or limiting the recovery
by Beneficiary of a deficiency after any sale of the Mortgaged Property, (f) any
other provision of applicable law which shall defeat, limit or adversely affect
any right or remedy of Beneficiary or any secured party under or with respect to
this Instrument or any other Relevant Documents as it relates to any Mortgaged
Property, (g) the right of Beneficiary to foreclose this Instrument in its own
name on behalf of all of the secured parties by judicial action as the real
party in interest without the necessity of joining any secured party, or (h) the
Guarantees, including, without limitation, notice of existence, creation or
incurring of any new or additional indebtedness or obligation or of any action
or non-action on the part of Trustor or the Issuer, Beneficiary or any Secured
Creditor or on the part of any person whomsoever under the Intercreditor
Agreement, this Instrument or any of the other Relevant Documents in connection
with any obligation or evidence of indebtedness held by Beneficiary, as Security
Trustee for the Secured Creditors, or held by any of the Secured Creditors.
Appraisement of the Premises is hereby expressly waived, at the option of
Beneficiary, which such option shall be executed prior to the time any judgment
is tendered at foreclosure.

         Section 4.07.     Jurisdiction and Process. (a) To the extent permitted
under applicable law, in any suit, action or proceeding arising out of or
relating to this Instrument or any other Relevant Documents insofar and only
insofar as it relates to any Mortgaged Property, Trustor (i) irrevocably
consents to the non-exclusive jurisdiction of any state or federal court sitting
in which the Premises is located and irrevocably waives any defense or objection
which it may now or hereafter have to the jurisdiction of

                                       12

<PAGE>

such court or the venue of such court or the convenience of such court as the
forum for any such suit, action or proceeding, and (ii) irrevocably consents to
the service of (A) any process in accordance with applicable law in any such
suit, action or proceeding, or (B) any notice relating to any sale, or the
exercise of any other remedy by Beneficiary hereunder by mailing a copy of such
process or notice by United States registered or certified mail, postage
prepaid, return receipt requested to Trustor at its address specified in or
pursuant to Section 5.01; such service to be effective in accordance with
applicable law.

                  (b)      Nothing in this Section shall affect the right of
Beneficiary to bring any suit, action or proceeding arising out of or relating
to this Instrument, or any other Relevant Documents in any court having
jurisdiction under the provisions therein or applicable law or to serve any
process, notice of sale or other notice in any manner permitted by this
Instrument, the other Relevant Documents or applicable law.

         Section 4.08.     Concerning Beneficiary. (a) Beneficiary is authorized
to take all such action as is provided to be taken by it as Beneficiary
hereunder and all such other action incidental thereto, subject to the terms and
provisions of the Intercreditor Agreement. As to any matters not expressly
provided for herein (including the timing and methods of realization upon the
Mortgaged Property), Beneficiary shall, in addition, act or refrain from acting
in accordance with the terms and provisions of the Intercreditor Agreement.
Beneficiary shall not be responsible for the existence, genuineness or value of
any of the Mortgaged Property or for the validity, perfection, priority or
enforceability of the lien of this Instrument on any of the Mortgaged Property,
whether impaired by operation of law or by reason of any action or omission to
act on its part hereunder. Beneficiary shall have the right, but shall have no
duty, to ascertain or inquire as to the performance or observance of any of the
terms of this Instrument by Trustor.

                  (b)      Beneficiary may, at any time, delegate by power of
attorney or otherwise to any person(s) or entity(ies) the ability to exercise
any or all of the rights, powers and discretions vested in it by this Instrument
or appoint any person or entity to act as additional Beneficiary or as
co-trustee for the purpose of this Instrument, in accordance with and subject to
the terms of Clause 16 of the Intercreditor Agreement.

                  (c)      In the event that Beneficiary acts as Trustor's
attorney in fact or otherwise as its agent as provided for under this
Instrument, Trustor shall ratify and confirm all things done and all documents
executed by Beneficiary in the exercise or purported exercise of all or any of
such powers or acts.

                                    ARTICLE V

                                  MISCELLANEOUS

         Section 5.01.     Notices. Except as otherwise provided herein, all
communication required or permitted to be given in connection with this
Instrument shall be in writing, and shall be given or served in the manner and
to the address, and deemed received, as provided in clause 20 of the
Intercreditor Agreement. All communications to Trustee shall be sent to Trustee
at:

                                       13

<PAGE>

                  if to Trustee:

                      Ward Williford
                      c/o First American Title Insurance Company
                      1909 Woodall Rodgers Freeway, Suite 410
                      Dallas, Texas 75201
                      Telecopier No.: (214) 303-0935

Trustee shall, from time to time, have the right to specify as the proper
addressee and/or address for the purposes of this Instrument any other party or
address in the United States upon giving five (5) days prior written notice in
the manner herein prescribed. Trustor's mailing address, as set forth in the
opening paragraph hereof or as changed pursuant to the provision hereof, is true
and correct.

         Section 5.02.     Extension of Payments and Other Modifications.
Trustor agrees that, without affecting the liability of any person for payment
of the Secured Obligations or affecting the lien of this Instrument upon the
Mortgaged Property or any part thereof (other than persons or property
explicitly released as a result of the exercise by Beneficiary or Trustee of
their rights and privileges hereunder), Beneficiary may (without obligation), at
any time and from time to time, on request of Trustor made in accordance with
the terms and provisions of the Intercreditor Agreement, without notice to any
person liable for payment of any Secured Obligations or to any other person or
entity, extend the time, or agree to alter or amend the terms of payment of such
Secured Obligations; provided, however, that such actions of Beneficiary are
expressly limited by the terms and provisions of the Intercreditor Agreement.
Trustor further agrees that any part of the security herein described may be
released with or without consideration without affecting the remainder of the
Secured Obligations, the remainder of the security or the lien of this
Instrument.

         Section 5.03.     Governing Law. Trustor agrees that this Instrument is
to be construed, governed and enforced in accordance with the laws of the State.
Wherever possible, each provision of this Instrument shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Instrument shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Instrument.

         Section 5.04.     Satisfaction of Mortgage. Upon satisfaction of the
conditions set forth in Section 5.3 of the Intercreditor Agreement, this
conveyance or lien shall be null and void and, upon demand therefor following
such satisfaction, a satisfaction of mortgage or reconveyance of the Mortgaged
Property and any other documents required to release the lien of this Instrument
shall promptly be provided by Beneficiary to Trustor, at Trustor's sole expense,
without recourse to, or any representation or warranty by, the Beneficiary or
any of its nominees.

         Section 5.05.     Successors and Assigns Included in Parties. This
Instrument shall be binding upon Trustor and upon the successors, assigns and
vendees of Trustor and shall inure to the benefit of Beneficiary's successors
and assigns and any principals it represents as agent; all references herein to
Trustor and to Beneficiary or Trustee shall be deemed to include their
successors and assigns and, as to Beneficiary, any principals it represents as
agent. Trustor's successors and assigns shall include, without limitation, a
receiver, trustee or debtor in possession of or for Trustor. Wherever used, the
singular number shall include the plural, the plural shall include the singular,
and the use of any gender shall be applicable to all genders.

                                       14

<PAGE>

         Section 5.06.     Waiver of Appraisement, Valuation, Stay, Extension
and Redemption Laws. Trustor agrees, to the full extent permitted by law, that
in case of an Enforcement Event, neither Trustor nor anyone claiming through or
under it shall or will set up, claim or seek to take advantage of any
appraisement, valuation, stay, or extension laws now or hereafter in force, in
order to prevent or hinder the enforcement or foreclosure of this Instrument or
the absolute sale of the Mortgaged Property or the final and absolute putting
into possession thereof, immediately after such sale, of the purchaser thereat,
and Trustor, for itself and all who may at any time claim through or under it,
hereby waives, to the full extent that it may lawfully so do, the benefit of all
such laws, and any and all right to have the assets comprising the Mortgaged
Property marshalled upon any foreclosure of the lien hereof and agrees that
Trustee, or any court having jurisdiction to foreclose such lien may sell the
Mortgaged Property in part or as an entirety. Trustor represents that it has
been authorized to, and Trustor does hereby waive to the full extent permitted
by law any and all statutory or other rights of redemption from sale under power
of sale or from sale under any order or decree of foreclosure of this
Instrument, on its own behalf and on behalf of each and every person acquiring
any interest in or title to the Mortgaged Property subsequent to the date
hereof.

         Section 5.07.     Interpretation with Other Documents. Notwithstanding
anything in this Instrument to the contrary, (a) in the event of a conflict or
inconsistency between this Instrument and the provisions of the Intercreditor
Agreement, the provisions of the Intercreditor Agreement shall govern, and (b)
the exercise of any right or remedy by Beneficiary under this Instrument shall
be done in accordance with and is subject to the terms and provisions of the
Intercreditor Agreement.

         Section 5.08.     Future Advances. The parties hereto intend that, in
addition to any other debt or obligation secured hereby, this Instrument shall
secure unpaid balances of loan advances and other extensions of credit made
after this Instrument is delivered to the appropriate recording offices of the
State, whether such advances or extensions of credit made are obligatory or
otherwise, and such future advances or extensions of credit shall be secured to
the same extent as if such advances or extensions of credit were made on the
date hereof, although there may be no advance or extensions of credit made at
the time of the execution hereof and although there may be no indebtedness
outstanding at the time any advance or extension of credit is made. Such unpaid
balances of loan advances and other extensions of credit may or may not be
evidenced by notes executed pursuant to the applicable Relevant Documents.

         Section 5.09.     Usury Savings. It is the intention of the parties
hereto to conform strictly to applicable usury laws. Accordingly, if the
transactions contemplated hereby would be usurious under any such applicable
law, then, and in that event, notwithstanding anything to the contrary in this
Instrument, the Notes, the Indentures, the other Relevant Documents, and any
other instrument or agreement entered into in connection therewith, whether now
existing or hereafter arising and whether written or oral, it is agreed as
follows:

                  (a)      the aggregate of all interest and any other charges
constituting interest or adjudicated as constituting interest and that is
contracted for, charged or received under the Notes, the New Bonding Facility
Agreement, or any other Relevant Document, or under any of the aforesaid
instruments or agreements or otherwise in connection with the Notes, the New
Bonding Facility Agreement, or any other Relevant Document (whether designated
as interest, fees, late charges, payments or otherwise) shall under no
circumstances exceed the maximum amount of interest permitted by any applicable
usury law and any excess shall be cancelled automatically and, if theretofore
paid, shall be credited on the Notes, the New Banking Facility Agreement and all
the other obligations under the other Relevant Documents by Beneficiary in
accordance with the Intercreditor Agreement (or, if the Notes, the New Banking
Facility Agreement and all other obligations under the Relevant Document have
been paid in full, refunded by the Secured Creditors to Trustor); and

                                       15

<PAGE>

                  (b)      in the event that the maturity of the Secured
Obligations is accelerated by reason of an Enforcement Event, then such
consideration that constitutes interest may never include more than the maximum
rate of interest permitted by any such applicable law computed from the dates of
each advance of the loan proceeds outstanding until payment. If from any
circumstance Beneficiary shall ever receive interest or any other charges
constituting interest or adjudicated as constituting interest, the amount, if
any, which would exceed the maximum rate of interest permitted by applicable
usury law shall be applied to the reduction of the principal amount owing on the
Notes, the New Bonding Facility Agreement and under the other Relevant Documents
or on account of any other principal indebtedness Trustor and the Issuer under
the Relevant Documents, and not to the payment of interest; or if such excessive
interest exceeds the unpaid balance of the principal and such other
indebtedness, the amount of such excessive interest that exceeds the unpaid
principal and such other indebtedness shall be refunded to Trustor by the
Secured Creditors.

                  All sums paid or agreed to be paid to Beneficiary for the use,
forbearance or detention of the indebtedness evidenced hereby shall, to the
extent permitted by applicable law and the Intercreditor Agreement, be
amortized, prorated, allocated and spread throughout the full term of such
indebtedness so that the rate or amount of interest on account of any such
indebtedness does not exceed the applicable usury ceiling.

         Section 5.10.     Invalid Provisions to Affect No Others. In the event
that any of the covenants, agreements, terms or provisions contained in this
Instrument shall be invalid, illegal or unenforceable in any respect, the
validity of the remaining covenants, agreements, terms or provisions contained
herein or in any other Relevant Documents shall not be in any way affected,
prejudiced or disturbed thereby. In the event that the application of any of the
covenants, agreements, terms or provisions of this Instrument is held to be
invalid, illegal or unenforceable, those covenants, agreements, terms and
provisions shall not be in any way affected, prejudiced or disturbed when
otherwise applied.

         Section 5.11.     Changes. Neither this Instrument nor any term hereof
may be changed, waived, discharged or terminated orally, or by any action or
inaction, but only by an instrument in writing signed by the party against which
enforcement of the change, waiver, discharge or termination is sought. To the
extent permitted by law, any agreement hereafter made by Trustor and Trustee or
Beneficiary relating to this Instrument shall be superior to the rights of the
holder of any intervening lien or encumbrance.

         Section 5.12.     Marshalling of Assets. Notice is hereby given that no
holder of any mortgage, lien or other encumbrance affecting all or a part of the
Mortgaged Property which is inferior to the lien of this Instrument shall have
any right to require Beneficiary to marshal assets.

         Section 5.13.     Trustee's Rights Regarding the Mortgaged Property. At
any time or from time to time, without liability therefor and without notice,
upon written request of Beneficiary, payment of its fees and presentation of
this Instrument without affecting the liability of any person for the payment of
the Secured Obligations, Trustee may (a) consent to the making of any map or
plot of the Land, (b) join in granting any easement or creating any restriction
thereon, (c) join in any subordination or other agreement, affecting this
Instrument or the lien or charge thereof, or (d) reconvey or release from the
lien of this Instrument, without warranty, all or any part of the Mortgaged
Property.

         Section 5.14.     Time of Essence. Time is of the essence with respect
to the provisions of this Instrument.

         Section 5.15.     Appointment of Successor Trustee. At the option of
Beneficiary, with or without any reason, and from time to time, a successor or
substitute trustee may be appointed by Beneficiary or

                                       16

<PAGE>

any successor in ownership of any indebtedness secured hereby, without any
formality other than a designation in writing of a successor or substitute
trustee, who shall, without conveyance from Trustee predecessor, thereupon
become vested with and succeed to all the title, estate, powers and duties given
to Trustee herein named, the same as if the successor or substitute trustee had
been named original Trustee herein; and such right to appoint a successor or
substitute trustee shall exist as often and whenever Beneficiary desires. An
instrument, executed by Beneficiary and duly acknowledged and recorded in the
office of the recorder of the county or counties where the Mortgaged Property is
situated, shall be conclusive proof of proper substitution of such successor
trustee or trustees. Said instrument should contain the name of the original
Trustor, Trustee and Beneficiary hereunder, the recording information where this
Instrument is recorded and the name and address of the new trustee.

         Section 5.16.     Relevant Documents Revisions. In this Instrument,
references to this Instrument or to easement agreements, Leases, the
Intercreditor Agreement, and any other Relevant Documents include all
amendments, supplements, consolidations, replacements, restatements, extensions,
renewals and other modifications, to the extent applicable, and any refinancings
and refundings thereof, in whole or in part.

         Section 5.17.     WAIVER OF JURY TRIAL. TRUSTOR AND BENEFICIARY
EXPRESSLY AND VOLUNTARILY WAIVE ANY AND ALL RIGHTS, WHETHER ARISING UNDER THE
UNITED STATES OR ANY STATE CONSTITUTION, ANY RULES OF CIVIL PROCEDURE, COMMON
LAW OR OTHERWISE, TO DEMAND A TRIAL BY JURY IN ANY ACTION, LAWSUIT, PROCEEDING,
COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE BASED UPON, OR ARISING OUT OF,
THIS INSTRUMENT OR THE OTHER RELEVANT DOCUMENTS, ANY AGREEMENTS ARISING UNDER OR
RELATING TO THIS INSTRUMENT, ANY MORTGAGED PROPERTY SECURING THE SECURED
OBLIGATIONS, OR THE DEALINGS OR RELATIONSHIPS BETWEEN TRUSTOR AND BENEFICIARY.
NEITHER TRUSTOR NOR BENEFICIARY, INCLUDING ANY ASSIGNEE OR SUCCESSOR OF TRUSTOR
OR BENEFICIARY, SHALL SEEK A JURY TRIAL IN ANY SUCH ACTION. NEITHER TRUSTOR NOR
BENEFICIARY SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION WHEN
A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL BE SUBJECT
TO NO EXCEPTIONS. NEITHER TRUSTOR NOR BENEFICIARY HAS IN ANY WAY AGREED WITH OR
REPRESENTED TO THE OTHER THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY
ENFORCED IN ALL INSTANCES.

         Section 5.18.     Reduction of Secured Amount. In the event that the
maximum principal amount secured by this Instrument is less than the aggregate
Secured Obligations then the amount secured hereby shall be reduced only by the
last and final sums that Trustor repays with respect to the Secured Obligations
and shall not be reduced by any intervening repayments of the Secured
Obligations. So long as the balance of the Secured Obligations exceeds the
amount secured hereby, any payments of the Secured Obligations shall not be
deemed to be applied against, or to reduce, the portion of the Secured
Obligations secured by this Instrument. Such payments shall instead be deemed to
reduce only such portions of the Secured Obligations as are secured by deeds of
trust or mortgages encumbering real property located outside the State which
secure the entire Secured Obligations (except to the extent, if any, that
specific deeds of trust or mortgages in such states contain specific limitations
on the amount secured).

         Section 5.19.     FINAL AGREEMENT. THIS DEED OF TRUST REPRESENTS THE
FINAL AGREEMENT BETWEEN THE PARTIES HEREIN AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT

                                       17

<PAGE>

ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES. THE NOTICE GIVEN UNDER THIS PARAGRAPH IS PURSUANT TO SECTION 26.02
OF THE TEXAS BUSINESS AND COMMERCE CODE.

                            [SIGNATURE PAGE FOLLOWS]

                                       18

<PAGE>

                  IN WITNESS WHEREOF, this Instrument is executed as of the day
and year first above written by the person or persons identified below on behalf
of Trustor (and said person or persons hereby represent that they possess full
power and authority to execute this Instrument).

                                          TRUSTOR:

Attest:                                   MARCONI COMMUNICATIONS, INC.
                                          a Delaware corporation

By: __________________________________    By: __________________________________
    Name:  GLENN R. HACKER                    Name:  PATRICIA A. HOFFMAN
    Title: ASSISTANT SECRETARY                Title: AUTHORIZED SIGNATORY

                                       19

<PAGE>

STATE OF ILLINOIS  )
                     :
DU PAGE COUNTY     )

                  I, TERESA M. DARZINS a Notary Public for said County and
State, hereby certify that Patricia A. Hoffman personally appeared before me
this day and acknowledged that she is an Authorized Signatory of MARCONI
COMMUNICATIONS, INC., a Delaware corporation, and that, by authority duly given
and as an act of the corporation, the foregoing instrument was signed by its
Authorized Signatory and attested by GLENN R. HACKER as its Assistant Secretary.

                  Witness my hand and official seal, this 15TH day of May, 2003.

                                    Notary Public TERESA M. DARZINS

My commission expires: 5/19/03
[Notarial Seal/Stamp]

(OFFICIAL SEAL TERESA M. DARZINS)

                                       20

<PAGE>

                                    EXHIBIT A

                              Intersection of Freeport Parkway and Sterling Road
                                                                   Irving, Texas
                                                            Dallas County, Texas

                        Legal Description of the Premises

Being Lot 4R2, in Block A, of DFW FREEPORT ADDITION, an Addition to the City of
Irving, Texas, according to the Map thereof recorded in Volume 2000229, Page
506, of the Map Records of Dallas County, Texas.

                                       A-1

<PAGE>

                                    EXHIBIT B

                           Permitted Title Exceptions

1.   Shortages in Area.

2.   Standby fees, taxes and assessments by any taxing authority for the year
     2003, and subsequent years; but not those taxes or assessments for prior
     years because of an exemption granted to a previous owner of the property
     under Section 11.13, Texas Tax Code, or because of improvements not
     assessed for a previous tax year.

3.   Restrictive covenants recorded in Volume 79212, Page 2965, Deed Records of
     Dallas County, Texas. Together with Supplements recorded in Volume 81169,
     Page 1478, Deed Records, Dallas County, Texas, recorded in Volume 81202,
     Page 978, Deed Records, Dallas County, Texas, and amendments recorded in
     Volume 82129, Page 999, Deed Records, Dallas County, Texas, Volume 82215,
     Page 3396, Deed Records, Dallas County, Texas, Volume 84106, Page 4294,
     Deed Records, Dallas County, Texas, Volume 95157, Page 960, Deed Records,
     Dallas County, Texas. Volume 97106, Page 4931, Deed Records, Dallas County,
     Texas. As affected by Waivers recorded in Volume 84025, Page 4209, Deed
     Records, Dallas County, Texas and Volume 84025, Page 5213, Deed Records,
     Dallas County, Texas.

4.   Easement granted by Hunt Investment Corporation to the City of Irving,
     filed 5/20/1980, recorded in Volume 80101, Page 1966, Deed Records of
     Dallas County, Texas, and as shown on survey of Raymond L. Goodson, Jr.,
     Inc. Consulting Engineers, certified to by G. Richard Busby, R.P.L.S.
     #4111, dated 7/28/2000, last revised 11/16/2000.

5.   Terms and conditions of Ordinance No. 71-100, entitled Airport Zoning
     Ordinance of the Dallas-Fort Worth Regional Airport, filed September 2,
     1982, recorded in Volume 82173, Page 178, Deed Records of Dallas County,
     Texas. As noted on survey of Raymond L. Goodson Jr., Inc. Consulting
     Engineers, certified to by G. Richard Busby, R.P.L.S. #4111, dated
     7/28/2000, revised 11/16/2000.

6.   Thirty foot building setback line, fifteen foot utility easement, fifty
     foot building setback line and thirty seven and one-half foot drainage and
     underground utility easement as shown on the plat recorded in Volume
     2000229, Page 506, Map Records of Dallas County, Texas. As shown on survey
     of Raymond L. Goodson Jr., Inc. Consulting Engineers, certified to by G.
     Richard Busby, R.P.L.S. #4111, dated 7/28/2000, revised 11/16/2000.

7.   Terms, provisions, conditions, obligations, assessments and liens contained
     in instrument recorded in Volume 79212, Page 2965, Deed Records of Dallas
     County, Texas, which states that assessment liens are subordinate to
     purchase money liens. Together with Supplements recorded in Volume 81169,
     Page 1478, Deed Records, Dallas County, Texas, recorded in Volume 81202,
     Page 978, Deed Records, Dallas County, Texas, and Amendments recorded in
     Volume 82129, Page 999, Deed Records, Dallas County, Texas, recorded in
     Volume 82215, Page 3396, Deed Records, Dallas County, Texas, recorded in
     Volume 84106, Page 4294, Deed Records, Dallas County, Texas, recorded in
     Volume 95157, Page 960, Deed Records, Dallas County, Texas, recorded in
     Volume 97106, Page 4931, Deed Records, Dallas County, Texas.

8.   Consequences, if any, of the encroachment of the asphalt parking over the
     southwest property line, as shown on survey of Raymond L. Goodson Jr., Inc.
     Consulting Engineers, certified to by G. Richard Busby, R.P.L.S. #4111,
     dated 7/28/2000, revised 11/16/2000.

                                       B-1

<PAGE>

9.   Assignment of Rents dated May ___, 2003 and effective May 19, 2003 by
     Marconi Communications, Inc. to The Law Debenture Trust Corporation p.l.c.,
     a public limited company organized under the laws of England and Wales
     (together with any co-trustee, co-agent or other entity appointed pursuant
     to Clause 16 of the Intercreditor Agreement (as defined in the insured
     mortgage), in its capacity as security trustee for the "Secured Creditors"
     (as defined in the Intercreditor Agreement), their successors and/or
     assigns as their interests may appear, to be recorded in Dallas County.

10.  UCC Financing Statement from Marconi Communications, Inc., as debtor, to
     The Law Debenture Trust Corporation p.l.c., as security trustee, to be
     filed in Dallas County.

                                       B-2

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