Document:

.1

THIS DOCUMENT, DATED MARCH 6, 2002, CONSTITUTES PART OF A

PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED

UNDER THE SECURITIES ACT OF 1933.

THE MANITOWOC COMPANY, INC. DEFERRED COMPENSATION PLAN

As Amended Effective as of March 31, 2002

SUMMARY PLAN INFORMATION

Purpose, Duration And Amendment

The Manitowoc Company, Inc. (the "Company") sponsors The Manitowoc Company, Inc.  Deferred Compensation Plan (the "Plan").  The purpose of the Plan is to promote the best interests of the Company and its subsidiaries and affiliates and the stockholders of the Company by (1) attracting and retaining well-qualified persons for service as nonemployee directors of the Company and promoting identity of interest between directors and stockholders of the Company; and (2) attracting and retaining key management employees possessing a strong interest in the successful operation of the Company and its subsidiaries and affiliates (collectively referred to as the "Employer") and encouraging their continued loyalty, service, and counsel to the Employer.

There is no time limit on the Plan's duration.  The Board of Directors of the Company (the "Board") may, at any time, amend or terminate the Plan without the consent of the participants or beneficiaries, provided, that no amendment or termination may reduce any account balance accrued on behalf of a participant based on deferrals already made, or divest any participant of rights to which he would have been entitled if the Plan had been terminated immediately prior to the effective date of the amendment.  The Board also may cause all accounts to be distributed in the event of Plan termination, provided all participants and beneficiaries are treated in a uniform and nondiscriminatory manner in such event.

In addition, no amendment to the Plan may become effective until stockholder approval is obtained if the amendment (i) except as expressly provided in the Plan, materially increases the aggregate number of shares of Manitowoc Stock that may be allocated in a Plan Year, which is the same as the fiscal year of the Company, (ii) materially increases the benefits accruing to participants under the Plan or (iii) materially modifies the eligibility requirements for participation in the Plan.

Plan Administration

A committee of the Board composed of not less than 2 directors who qualify as "nonemployee directors" within the meaning of Rule 16b-3 of the Securities Exchange Act of 1934 administers and interprets the Plan (the "Administrator").  The Company's Human Resources Department supervises preparation of compensation deferral agreements and forms and assists the Administrator in all aspects of Plan administration.  The Administrator may be contacted for more information at:
The Manitowoc Company, Inc.

500 South 16th Street

P. O. Box 66

Manitowoc, WI 54221-0066

Attention:Debra J. Casper

Telephone:(920) 683-8131

Transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 under Section 16 of the Securities Exchange Act of 1934 (the "Exchange Act"), or its successor.  The Plan is to be interpreted so that transactions under the Plan will be exempt from Section 16 of the Exchange Act pursuant to regulations and interpretations issued from time to time by the Securities and Exchange Commission.

Eligibility

All continuing nonemployee directors of the Company and continuing key employees of an Employer remain eligible to participate as of the first day of any subsequent Plan Year, provided their deferral agreements are completed in advance.

All new nonemployee directors of the Company and new key employees of an Employer shall be entitled to participate in the Plan as of the first day of the month following the date of their proper execution of their initial compensation deferral agreements, provided the execution of their compensation deferral agreements is not more than 30 days after their initial eligibility date.  Thereafter, such persons are eligible to participate as of the first day of any subsequent Plan Year so long as their deferral agreements are completed in advance.

For this purpose, a key employee is an elected officer of the Company and any other highly compensated employee of an Employer who has compensation in the immediately preceding Plan Year that is equal to or greater than the indexed amount described in Internal Revenue Code Section 414(q)(l)(B) in effect for that Plan Year ($85,000 for 2001; $90,000 effective January 1, 2002, adjusted for cost of living increases in subsequent years).  This determination of eligibility is generally made based on pay as of the last day of the immediately preceding Plan Year, but, for newly hired employees who are in their first year of employment, it is made on the basis of their current base rate of pay.

A participant has no further right to defer compensation under the Plan after termination of service to an Employer as a nonemployee director, or after termination of employment in the case of all other participants, or, if earlier, upon receipt of written notice from the Administrator of revocation of an employee's status as a key employee.  Such revocations are effective only upon the first day of the Plan Year following the date that the employee is provided such written notice.  If a participant terminates service with an Employer and subsequently returns to service, the participant shall be treated as a new employee (or director if applicable) for all Plan purposes.

Deferred Compensation Amounts

A nonemployee director participant may make a deferral election with respect to all or part of the director's compensation, in increments of five percent (5 %). A key employee participant may make a deferral election with respect to whole percentages, in increments of one percent (1 %), not to exceed forty percent (40%) of regular pay for any Plan Year.  There is no maximum deferral percentage applicable to incentive bonuses.  However, the maximum amount of compensation of a key employee participant which may be considered for any Plan Year for purposes of determining the Employer contribution described below is limited to twenty-five percent (25%) of total pay for any Plan Year.

Compensation, for Plan purposes, means, for nonemployee director participants, retainer fees paid for service as a Board member and for service on any committee of the Board, including attendance fees and fees for serving as committee chair.  Compensation for key employees has the same meaning as under the Company's 401(k) Retirement Plan, without regard to the dollar limits applied to that definition by Internal Revenue Code Section 401(a)(17) ($200,000 effective January 1, 2002, as adjusted for cost of living increases in subsequent years).

Credits to deferred compensation accounts are to be made within a reasonable time (not to exceed 30 days) following the time that the deferred compensation, but for the participant's deferral election, would otherwise have been paid or made available to the participant.  The Company will deduct payroll tax amounts and amounts it may be required to withhold on the deferred compensation at the time it is credited to a participant's account under any state, federal, or local law for payroll or other taxes or charges, from the participant's compensation which is not deferred, to the maximum extent possible.

A participant's deferral election remains in effect with respect to all future Plan Years until a modified agreement or revocation is effective.  A participant may modify the deferral amount specified in the participant's initial agreement (including reduction or revocation of any deferral election) by completing and executing a modified agreement and submitting it to the Administrator.

A modified deferral agreement will generally be effective with respect to compensation accruing on and after the first day of the Plan Year beginning after the date of the modified agreement.  However, a reduction or revocation of a deferral election may be effective on the first day of the month after the election to reduce or revoke is made if the election is made due to hardship.  Hardship means an unanticipated event or events beyond the participant's control that would result in severe financial hardship to the participant if the reduction or revocation is not permitted.

If a participant is permitted to reduce or revoke the participant's deferrals on any date other than the first day of a Plan Year, then the participant must forego receiving any Employer contributions under the Plan for the year in which the reduction or revocation occurred.

A participant must designate a beneficiary at the time the participant completes an initial compensation deferral agreement.  The participant may at any time modify this beneficiary designation by completing and executing a revised beneficiary designation form and submitting it to the Administrator.

A participant must also provide initial investment directions with respect to the participant's Program B account balance (described below) and must maintain on file with the Administrator separate distribution elections for the participant's account balances in both Program A and Program B.

The accounts of participants in the Plan are immediately vested and nonforfeitable.

Investment Of Deferred Amounts

Effective March 31, 2002, the Plan has two separate investment programs:  Program A and Program B.  

Program A is deemed to be solely invested in Manitowoc Stock and any dividends paid on shares of Manitowoc Stock deemed to be held under Program A shall be deemed to be reinvested in Manitowoc Stock under Program A, in accordance with rules and procedures established by the Administrator.  There are no other investment options in Program A.  The funds in Program A cannot be transferred at any time to Program B.  All distributions under the Plan from Program A must be made in Manitowoc Stock.  Any Manitowoc Stock that may be held in trust pursuant to the Plan in connection with Program A will be owned by a trust that is completely separate from any trust that may hold assets in trust pursuant to the Plan in connection with Program B (described in the next paragraph).

Program B offers a variety of mutual funds as investment options.  Manitowoc Stock is not an investment option in Program B.  The funds in Program B cannot be transferred at any time to Program A.  All distributions from Program B must be made in cash.  The assets of Program B that may be held in trust pursuant to the Plan in connection with Program B will be owned by a trust that is completely separate from any trust that may hold assets in trust pursuant to the Plan in connection with Program A (described in the preceding paragraph).

Prior to March 31, 2002, in accordance with Administrator procedures, each participant shall designate the portion of the participant's existing account balance in the Plan is to be credited to Program A (Manitowoc Stock Program) or Program B (Diversified Investment Program) as of the close of March 2002.  This designation of existing balances between these two Programs is irrevocable.  

In addition, each participant shall regularly advise the Administrator, in accordance with Administrator rules, the portion of any new deferred amounts that is to be credited to Program A (Manitowoc Stock Program) and Program B (Diversified Investment Program).  This designation of newly credited amounts between these two Programs is also irrevocable.

In addition, each participant who is a key employee shall also designate the amount of any Employer contributions, made on the key employee's behalf by the Employer, are to be credited to Program A and to Program B.

The Administrator may, in its sole discretion, establish maximum amounts that may be directed to Program A (Manitowoc Stock Program) in accordance with rules applied uniformly to similarly situated participants.

Each participant with funds directed to Program B (Diversified Investment Program) shall also provide investment directions regarding the participant's accounts in that Program.  

The Plan's investment options are summarized at the end of this material.  Each of the investment options is subject to investment risk.  Program A is limited to investment in Manitowoc Stock.  This investment is not diversified and may be subject to a higher level and/or different kind of investment risk than the diversified investment options offered in Program B.  There can be no assurance that any investment option will achieve its stated objective or that an investment in any option will not result in a loss.  The Employer cannot and does not guarantee the value of any accounts or the performance of any of the investment options, and has no obligation to make up any losses suffered by participants.

The Administrator may change the investment characteristics of the Plan, with appropriate advance notice to participants.  This includes eliminating or adding investment options, or changing investment managers.  Timely notice of any changes will be provided to all investors in any investment option that is affected by Administrator actions.  

Any Manitowoc Stock purchased for any Plan purpose may be purchased by the Company or trustee in any manner that the Company or trustee may determine from time to time, including purchases from the Company, in the open market and from private sources.

Subaccounts will be maintained by the Plan recordkeeper for the interest of each participant in the investment options made available under Program B(Diversified Investment Program).  Subaccounts under Program B are deemed to be fully invested at all times in the investment option associated with the subaccount.  The recordkeeper will separately account for credited amounts as units of the designated investment option having the value attributable to units of the investment option at all times, taking into account reinvestment of all dividends pertaining to the investment, but without adjustment for any income tax consequences attributable to actual Employer ownership of such investments.

A participant will provide, in accordance with Administrator rules, investment directions in connection with the participant's Program B account.  Investment directions are generally effective on the first day of the following month in which they are provided to the Administrator in accordance with Administrator rules.  Participants (or beneficiaries upon the death of the participant) generally may transfer funds from one Program B subaccount to another subaccount in Program B.  A minimum transfer percentage may be set by the Administrator.  

Certain additional rules apply to persons who also are subject to Section 16 of the Exchange Act (generally referred to as "insiders").  Shares of Manitowoc deemed to be held for an insider may be "withheld" from an insider's distributions from Program A to satisfy federal withholding tax requirements.  If the distribution from Program A is in connection with death, disability, retirement, or termination of employment, the withholding election must be approved in advance by the Administrator.  If the distribution from Program A is for any other reason, the withholding election must be made at least 6 months after the most recent election directing the deposit of funds into Program A (Manitowoc Stock Program) of the Plan or into a Manitowoc Stock fund under any other plan of the Company, including the 401(k) Retirement Plan.

Amounts equal to participant and Employer contributions to the Plan may, at the election of the Employer, be transferred to one or more trust funds established by the Company to assist it in meeting the obligations created under the Plan.  Under no circumstances will the same trust be used in connection with Program A and Program B, effective on and after March 31, 2002.

The type of trust that would be used limits the ability of the Company to use the monies deposited in the trust.  The trust holds and distributes the money according to the Plan document.  The funds in the trusts are, however, always subject to the claims of the general creditors of the Company if a forced liquidation or bankruptcy occurs.  This is a different type of trust than the trust used for the Company's 401(k) Retirement Plan, which is not subject to such claims.  

In short, this means that participants are not guaranteed the return of their deferrals.  This risk is necessary to avoid the IRS claiming constructive receipt resulting in current taxation to the participant of the amount of the participant's deferrals or any Employer contributions provided under the Plan.  This "credit risk" is a result of the Plan not being a tax-qualified plan.  Nonqualified status is what allows the Plan to allow deferrals that exceed the limits applicable to qualified plans.

Associated Trust Company, N. A., Manitowoc, is the trustee for the Plan's trusts.  Associated Trust Company also is the current trustee for the 401(k) Retirement Plan.  

Distributions

Separate distribution elections may be made by a participant for the participant's account in Program A and Program B.  If a participant has just one distribution election under the Plan it will be applied to the participant's accounts in both Program A and Program B.  Maintaining current distribution elections on file with the Administrator is the sole responsibility of the participant.  An insider's change of any distribution election initially filed a the commencement of participation, and any changes made thereafter, must specifically be approved by the Administrator in advance of their going into effect.

Each distribution election must designate in advance the distribution date applicable to the participant's account governed by the election, and whether distributions are to be made in a lump sum, in installments, or in a combination thereof.  Initial distribution elections are to be made at the time the participant completes the participant's initial compensation deferral agreement.

A participant may designate as a distribution date the first day of the calendar month following the date of the participant's death; the first day of the calendar month following the date of the participant's disability (as defined in the Plan); the first day of the calendar month following the date of termination of the participant's service as a member of the Board if the participant is a nonemployee director; or, if the participant is an employee of an Employer, the first day of the calendar month following the date of termination of the participant's employment with the Employer; the first day of any calendar month specified by the participant; or the earliest to occur of these dates.

A participant shall direct whether distributions from the account are to be made in a lump sum, in no more than 180 monthly, 60 quarterly, or 15 annual installments.  Each installment is determined by dividing the account, or subaccount, balance by the number of remaining payments.

All distributions from the Manitowoc Stock subaccount shall be made in shares of Manitowoc Stock, except that fractional shares may be paid in cash.  All distributions from other investment funds will be made in cash.  Any brokerage commissions or transaction fees applicable to the sale of shares of Manitowoc Stock distributed from the Plan are the responsibility of the recipient of the distribution.

A participant may generally modify an election of a distribution date and form of distribution by completing and executing a modified distribution election form and filing it with the Administrator.  Modified distribution elections must be filed with the Administrator not less than 12 months before the modification can be permitted to be effective.  Modifications by insiders must be approved in advance by the Administrator.

Special rules permit, with approval of the Board, extraordinary distributions of part or all of a participant's account due to hardship, defined as an unanticipated event beyond the control of the participant that would result in severe financial hardship to the participant unless the extraordinary distribution is permitted.

The Administrator may adopt any additional rules and modify existing rules and procedures, as necessary, to assure compliance with the insider trading liability rules under Section 16 of the Exchange Act, as in effect from time to time.

Employer Contributions

The Employer shall credit to the accounts of key employee participants an Employer contribution equal to the key employee's deferred amount for a Plan Year (not in excess of 25% of pay) multiplied by the rate, determined as a percentage of eligible compensation, of fixed and variable profit sharing contributions plus one percent (1%), that the participant has received from the Employer for the Plan Year under the 401(k) Retirement Plan.

The Employer contribution shall be credited to the account of the eligible participant (in Program A or Program B, as elected by the participant) within a reasonable time (not to exceed thirty (30) days) following the time the Employer deposits its contributions to the 401(k) Retirement Plan.

Tax Effects Of Plan Participation

The Plan is intended to be a nonqualified plan of deferred compensation for a select group of management or highly compensated employees.  Compensation that is deferred under the Plan, and the earnings deemed to accrue on deferred amounts, are not included in adjusted gross income of participants or beneficiaries until distributions are made pursuant to the Plan.  Distributions under the Plan will be taxable as ordinary income in the year of payment and will be considered to be "wages" subject to withholding when actually or constructively received by an employee.  Payments made to a beneficiary in the event of the death of a participant are "income in respect of a decedent" and taxed as they would have been to the employee.

Generally, the amounts deferred under a nonqualified deferred compensation plan of an employer covered by FICA (Federal Insurance Contributions Act) are "wages" subject to social security taxes at the later of when the services are performed or when the employee's right to such amounts are no longer subject to a substantial risk of forfeiture.  Participants are fully vested in their deferred compensation accounts, immediately, under the Plan, so that certain payroll taxes may be due in the year of deferral as to a portion of the compensation being deferred.

Nonemployee directors who defer receipt of their fees for services performed must include such fees in net earnings for self-employment tax purposes when the deferred fees are actually or constructively received.

The Plan is not qualified under Section 401(a) of the Internal Revenue Code.  Plan distributions may not be "rolled over" to successor plans on a tax-deferred basis and there are no special income averaging or lump sum distribution rules applicable.

The Employer will receive a tax deduction in the amount of compensation paid as benefits under the Plan, in the year in which the amounts are taken into income by the recipient of the payment.

Statements Of Account

The Administrator will provide to each participant, not less than semiannually, a statement with respect to each of the participant's accounts in such form as the Administrator shall determine to be appropriate, setting forth credited amounts added during the reporting period, any units of each Program B investment option attributable to each subaccount and their current value, amounts distributed from each account since the last report, the current balance to the credit of such participant in each account, and other appropriate information.

Expenses

The expenses incurred by Employers in the administration of the Plan and by the Administrator in the performance of its duties, shall be paid by the Employers.

Assignment Of Interest

Participants shall have no rights as a stockholder pertaining to Manitowoc Stock units credited to their Program A accounts.  No Manitowoc Stock unit nor any right or interest of a participant under the Plan in any Manitowoc Stock unit, or any other right of a participant under the Plan, may be assigned, encumbered, or transferred, except by will or the laws of descent and distribution.  The rights of a participant under the Plan are exercisable during the participant's lifetime only by the participant or the participant's guardian or legal representative.

Unfunded Plan

The right of the participant or the participant's beneficiary to receive a distribution from the Plan shall be an unsecured claim against the general assets of the Employer, and neither the participant nor any beneficiary shall have any rights in or against any amount credited to his account or any other specific assets of the Employer.

This Plan is unfunded and is maintained by the Employers primarily for the purpose of providing deferred compensation for nonemployee directors of the Company and a select group of management and highly compensated employees.  Nothing contained in the Plan and no action taken pursuant to its terms shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Employers and any participant or beneficiary, or any other person.

ERISA Statement

The Plan is a "top-hat" deferred compensation plan, subject only to part 1 of Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA").  It is required to comply only with ERISA's requirements regarding reports to the Department of Labor.

Resale Restrictions

Any shares of Manitowoc Stock distributed to participants under the Plan shall be subject to such stock transfer orders and other restrictions as the Company may deem advisable under the rules, regulations and other requirements of the Company, any stock exchange upon which Manitowoc Stock is then listed and any applicable Federal, state or foreign securities law, and the Company may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

SEC Disclosures

The Registration Statement of which this Prospectus constitutes a part became effective on June 30, 1993.  Pursuant to this Registration Statement, 25,000 shares of The Manitowoc Company, Inc. common stock and an indeterminate amount of interests in the Plan were registered.  A subsequent Registration Statement, dated September 11, 1996, registered an additional 150,000 shares of Manitowoc Stock and an indeterminate amount of Plan interests.  Shares of Manitowoc Stock may be acquired pursuant to participant and Company deferrals under the Plan.  The total amount of Plan interests which have been registered include all participant and Company contributions which may be invested in Manitowoc Stock.

Listing

The Manitowoc Company, Inc. common stock is currently authorized for trading on the New York Stock Exchange.

Availability Of Additional Documents

The Company will provide without charge, upon written or oral request by any person to whom this Prospectus is delivered, copies of the documents incorporated by reference in Item 3 of Part II of Form S-8 Registration Statements No. 333-11719 and 33-65316 of which this Prospectus constitutes a part.  Such documents are hereby incorporated by reference into this Prospectus.  The Company will also provide without charge, upon written or oral request by any person to whom this Prospectus is delivered, copies of all other documents required to be delivered pursuant to Rule 428(b) of Regulation C under the Securities Act of 1933.  Such requests should be directed to:
The Manitowoc Company, Inc.

500 South 16th Street

P. O. Box 66

Manitowoc, WI  54221-0066

Attention:Debra J. Casper

Telephone:920-684-8131

In addition, the Securities and Exchange Commission maintains a web site that contains reports, proxies, and information statements and other information regarding registrants that file electronically with Commission.  The web site address is http://www.sec.gov.

PROGRAM A INVESTMENT INFORMATION

The Manitowoc Company, Inc. common stock, $.O1 par value, (Manitowoc Stock) is the only designated investment for accounts under Program A of the Plan.  In the event of any merger, share exchange, reorganization, consolidation, recapitalization, stock dividend, stock split, or other change in corporate structure affecting Manitowoc Stock, appropriate adjustments will be made to the units credited to this subaccount.  Plan recordkeeping pertaining to Manitowoc Stock shall be based on the fair market value of Manitowoc Stock.  Fair market value on any given date is defined for Plan purposes as the value determined by the Administrator, at which shares were traded on that date in representative trades reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on The New York Stock Exchange on such date or, if no Manitowoc Stock is traded on such date, the most recent date on which Manitowoc Stock was traded.

The price of Manitowoc Stock can fluctuate on a day-to-day or month-to-month basis.  This investment is best for individuals who invest for the long-term and can tolerate short-term volatility.  The choice to invest in Manitowoc Stock limits the investment to one company and is more risky than a diversified portfolio of many companies.

The following table shows the annualized rates of return on Manitowoc Stock during the calendar years 1999, 2000, and 2001:

	
Investment Fund
	
2001 Annualized Rate of Return
	
1999 Annualized Rate of Return
	
19981 Annualized Rate of Return

	
Manitowoc Stock
	
8.1%
	
-13.6%
	
16.5%

 

 

PROGRAM B INVESTMENT INFORMATION

Money Market Fund (Goldman Sachs Financial Prime Square Obligations Fund-Institutional Shares) is managed by Goldman Sachs.  It is designed to maximize current income, preserve capital, and maintain liquidity.  It invests primarily in securities issued by the U. S. Government, its agencies or instrumentalities, and other high quality U. S. money market securities.

Bond Fund (Firstar Bond IMMDEX (Institutional))  is managed by Firstar Investment Management and Research Company.  Its objective is to add value to the Lehman Brothers Government/Corporate Bond Index.  It invests in fixed income securities, including corporate bonds, U. S. government securities, and mortgage-related securities, and money market instruments.

Balanced Fund (The Vanguard Asset Allocation Fund) is managed by The Vanguard Group.  Its objective is to use quantitative techniques to take advantage of imbalances between stocks, bonds, and cash.  The stock portion of the fund is invested in all of the S & P 500 Index stocks and the bond portion invests only in U. S. Treasury Bonds.

S & P 500 Index Fund (Vanguard Index 500) is managed by The Vanguard Group.  Its objective is to hold in the fund the same relative weighting of stocks that make up the S & P 500 Index and to achieve the same performance as the S & P 500 Index.  The S & P 500 Index is made up of the 500 largest publicly traded stocks from the industrial, utility, financial, and transportation sectors of the U. s. economy.

Equity Fund (Nicholas Fund) is managed by Nicholas Funds.  Its objective is the growth of capital achieved through investing in medium sized companies.  It invests in common stocks issued primarily by mid- and large-cap companies.

Small Cap Stock Fund (Berger Small Cap Value Fund Institutional) is managed by Berger Associates.  It seeks capital appreciation through an investment process that focuses on smaller companies believed to be undervalued and undiscovered by the broader investment community.  It invests in companies selected from a universe of approximately 3,500 companies after applying numerous value screens and ranking the companies based upon financial strength and their ability to rebound from current levels.

Mid Cap Growth Stock Fund (Morgan Stanley Mid Cap Growth Institutional) is managed by Morgan Stanley.  It seeks capital appreciation through an investment process that focuses on smaller to mid-sized companies believed to have sustainable growth that exceeds market expectations.  It invests in companies with a market capitalization between $500 million and $5 billion.

International Stock Fund (Marshall International Stock Fund) is managed by BPI Global Asset Management, LLC.  Its objective is capital appreciation through investments in common stocks of companies located outside the U. S.  It seeks to invest in quality companies with attractive returns on equity, shareholder oriented management, and a strong capital structure.

The following table shows the annualized rates of return on each of the Program B investment options during the calendar years 1999, 2000, and 2001:

	
Investment Fund
	
2001 Annualized Rate of Return
	
2000 Annualized Rate of Return
	
1999 Annualized Rate of Return

	
Money Market 

Fund
	
4.0%
	
6.4%
	
5.1%

	
Bond Fund
	
6.8%
	
11.8%
	
-1.4%

	
Balanced Fund
	
-5.3%
	
4.9%
	
5.2%

	
S & P 500 

Index Fund
	
-12.0%
	
-9.1%
	
21.1%

	
Equity Fund
	
-11.0%
	
-1.5%
	
1.7%

	
Small Cap 

Stock Fund
	
20.4%
	
27.2%
	
14.7%

	
Mid Cap 

Growth Stock 

Fund
	
-29.8%
	
-7.4%
	
68.2%

	
International 

Stock Fund
	
-22.9%
	
-16.8%
	
56.0%Exhibit 10.1

Master Securities
Loan Agreement

2000 Version

Dated as of: ______March 18, 2002_______________________________________________

Between:_________JP Morgan Chase Bank___________________________________________

And_____________Thermo Electron Corporation  ___________________________________

1.   Applicability.

     From time to time the parties hereto may enter into transactions in which
     one party ("Lender") will lend to the other party ("Borrower") certain
     Securities (as defined herein) against a transfer of Collateral (as defined
     herein). Each such transaction shall be referred to herein as a "Loan" and,
     unless otherwise agreed in writing, shall be governed by this Agreement,
     including any supplemental terms or conditions contained in an Annex or
     Schedule hereto and in any other annexes identified herein or therein as
     applicable hereunder. Capitalized terms not otherwise defined herein shall
     have the meanings provided in Section 25.

2.   Loans of Securities.

     2.1  Subject to the terms and conditions of this Agreement, Borrower or
          Lender may, from time to time, seek to initiate a transaction in which
          Lender will lend Securities to Borrower. Borrower and Lender shall
          agree on the terms of each Loan (which terms may be amended during the
          Loan), including the issuer of the Securities, the amount of
          Securities to be lent, the basis of compensation, the amount of
          Collateral to be transferred by Borrower, and any additional terms.
          Such agreement shall be confirmed (a) by a schedule and receipt
          listing the Loaned Securities provided by Borrower to Lender in
          accordance with Section 3.2, (b) through any system that compares
          Loans and in which Borrower and Lender are participants, or (c) in
          such other manner as may be agreed by Borrower and Lender in writing.
          Such confirmation (the "Confirmation"), together with the Agreement,
          shall constitute conclusive evidence of the terms agreed between
          Borrower and Lender with respect to the Loan to which the Confirmation
          relates, unless with respect to the Confirmation specific objection is
          made promptly after receipt thereof. In the event of any inconsistency
          between the terms of such Confirmation and this Agreement, this
          Agreement shall prevail unless each party has executed such
          Confirmation.

     2.2  Notwithstanding any other provision in this Agreement regarding when a
          Loan commences, unless otherwise agreed, a Loan hereunder shall not
          occur until the Loaned Securities and the Collateral therefor have
          been transferred in accordance with Section 15.

<PAGE>

3.   Transfer of Loaned Securities.

     3.1  Unless otherwise agreed, Lender shall transfer Loaned Securities to
          Borrower hereunder on or before the Cutoff Time on the date agreed to
          by Borrower and Lender for the commencement of the Loan.

     3.2  Unless otherwise agreed, Borrower shall provide Lender, for each Loan
          in which Lender is a Customer, with a schedule and receipt listing the
          Loaned Securities. Such schedule and receipt may consist of (a) a
          schedule provided to Borrower by Lender and executed and returned by
          Borrower when the Loaned Securities are received, (b) in the case of
          Securities transferred through a Clearing Organization which provides
          transferors with a notice evidencing such transfer, such notice, or
          (c) a confirmation or other document provided to Lender by Borrower.

     3.3  Notwithstanding any other provision in this Agreement, the parties
          hereto agree that they intend the Loans hereunder to be loans of
          Securities. If, however, any Loan is deemed to be a loan of money by
          Borrower to Lender, then Borrower shall have, and Lender shall be
          deemed to have granted, a security interest in the Loaned Securities
          and the proceeds thereof.

4.   Collateral.

     4.1  Unless otherwise agreed, Borrower shall, prior to or concurrently with
          the transfer of the Loaned Securities to Borrower, but in no case
          later than the Close of Business on the day of such transfer, transfer
          to Lender Collateral with a Market Value at least equal to the Margin
          Percentage of the Market Value of the Loaned Securities.

     4.2  The Collateral transferred by Borrower to Lender, as adjusted pursuant
          to Section 9, shall be security for Borrower's obligations in respect
          of such Loan and for any other obligations of Borrower to Lender
          hereunder. Borrower hereby pledges with, assigns to, and grants Lender
          a continuing first priority security interest in, and a lien upon, the
          Collateral, which shall attach upon the transfer of the Loaned
          Securities by Lender to Borrower and which shall cease upon the
          transfer of the Loaned Securities by Borrower to Lender. In addition
          to the rights and remedies given to Lender hereunder, Lender shall
          have all the rights and remedies of a secured party under the UCC. It
          is understood that Lender may use or invest the Collateral, if such
          consists of cash, at its own risk, but that (unless Lender is a
          Broker-Dealer) Lender shall, during the term of any Loan hereunder,
          segregate Collateral from all securities or other assets in its
          possession. Lender may Retransfer Collateral only (a) if Lender is a
          Broker-Dealer or (b) in the event of a Default by Borrower.
          Segregation of Collateral may be accomplished by appropriate
          identification on the books and records of Lender if it is a
          "securities intermediary" within the meaning of the UCC.

     4.3  Except as otherwise provided herein, upon transfer to Lender of the
          Loaned Securities on the day a Loan is terminated pursuant to Section
          6, Lender shall be obligated to transfer the Collateral (as adjusted
          pursuant to Section 9) to Borrower no later than the Cutoff Time on
          such day or, if such day is not a day on which a transfer of such
          Collateral may be effected under Section 15, the next day on which
          such a transfer may be effected.

     4.4  If Borrower transfers Collateral to Lender, as provided in Section
          4.1, and Lender does not transfer the Loaned Securities to Borrower,
          Borrower shall have the absolute right to the return of the
          Collateral; and if Lender transfers Loaned Securities to Borrower and
          Borrower does not transfer Collateral to Lender as provided in Section
          4. 1, Lender shall have the absolute right to the return of the Loaned
          Securities.

     4.5  Borrower may, upon reasonable notice to Lender (taking into account
          all relevant factors, including industry practice, the type of
          Collateral to be substituted, and the applicable method of transfer),
          substitute Collateral for Collateral securing any Loan or Loans;
          provided, however, that such substituted Collateral shall (a) consist
          only of cash, securities or other property that Borrower and Lender
          agreed would be acceptable Collateral prior to the Loan or Loans and
          (b) have a Market Value such that the aggregate Market Value of such
          substituted Collateral, together with all other Collateral for Loans
          in which the party substituting such Collateral is acting as Borrower,
          shall equal or exceed the agreed upon Margin Percentage of the Market
          Value of the Loaned Securities.

                                        2
<PAGE>

     4.6  Prior to the expiration of any letter of credit supporting Borrower's
          obligations hereunder, Borrower shall, no later than the Extension
          Deadline, (a) obtain an extension of the expiration of such letter of
          credit, (b) replace such letter of credit by providing Lender with a
          substitute letter of credit in an amount at least equal to the amount
          of the letter of credit for which it is substituted, or (c) transfer
          such other Collateral to Lender as may be acceptable to Lender.

5.   Fees for Loan.

     5.1  Unless otherwise agreed, (a) Borrower agrees to pay Lender a loan fee
          (a "Loan Fee"), computed daily on each Loan to the extent such Loan is
          secured by Collateral other than cash, based on the aggregate Market
          Value of the Loaned Securities on the day for which such Loan Fee is
          being computed, and (b) Lender agrees to pay Borrower a fee or rebate
          (a "Cash Collateral Fee") on Collateral consisting of cash, computed
          daily based on the amount of cash held by Lender as Collateral, in the
          case of each of the Loan Fee and the Cash Collateral Fee at such rates
          as Borrower and Lender may agree. Except as Borrower and Lender may
          otherwise agree (in the event that cash Collateral is transferred by
          clearing house funds or otherwise), Loan Fees shall accrue from and
          including the date on which the Loaned Securities are transferred to
          Borrower to, but excluding, the date on which such Loaned Securities
          are returned to Lender, and Cash Collateral Fees shall accrue from and
          including the date on which the cash Collateral is transferred to
          Lender to, but excluding, the date on which such cash Collateral is
          returned to Borrower.

     5.2  Unless otherwise agreed, any Loan Fee or Cash Collateral Fee payable
          hereunder shall be payable:

          (a)  in the case of any Loan of Securities other than Government
               Securities, upon the earlier of (i) the fifteenth day of the
               month following the calendar month in which such fee was incurred
               and (ii) the termination of all Loans hereunder (or, if a
               transfer of cash in accordance with Section 15 may not be
               effected on such fifteenth day or the day of such termination, as
               the case may be, the next day on which such a transfer may be
               effected); and

          (b)  in the case of any Loan of Government Securities, upon the
               termination of such Loan and at such other times, if any, as may
               be customary in accordance with market practice. Notwithstanding
               the foregoing, all Loan Fees shall be payable by Borrower
               immediately in the event of a Default hereunder by Borrower and
               all Cash Collateral Fees shall be payable immediately by Lender
               in the event of a Default by Lender.

6.   Termination of the Loan.

     6.1  (a) Unless otherwise agreed, either party may terminate a Loan on a
          termination date established by notice given to the other party prior
          to the Close of Business on a Business Day. The termination date
          established by a termination notice shall be a date no earlier than
          the standard settlement date that would apply to a purchase or sale of
          the Loaned Securities (in the case of a notice given by Lender) or the
          non cash Collateral securing the Loan (in the case of a notice given
          by Borrower) entered into at the time of such notice, which date
          shall, unless Borrower and Lender agree to the contrary, be (i) in the
          case of Government Securities, the next Business Day following such
          notice and (ii) in the case of all other Securities, the third
          Business Day following such notice.

          (b) Notwithstanding paragraph (a) and unless otherwise agreed,
          Borrower may terminate a Loan on any Business Day by giving notice to
          Lender and transferring the Loaned Securities to Lender before the
          Cutoff Time on such Business Day if (i) the Collateral for such Loan
          consists of cash or Government Securities or (ii) Lender is not
          permitted, pursuant to Section 4.2, to Retransfer Collateral.

                                        3
<PAGE>

6.2                 Unless otherwise agreed, Borrower shall, on or before the
                    Cutoff Time on the termination date of a Loan, transfer the
                    Loaned Securities to Lender; provided, however, that upon
                    such transfer by Borrower, Lender shall transfer the
                    Collateral (as adjusted pursuant to Section 9) to Borrower
                    in accordance with Section 4.3.

                                        4
<PAGE>

7.   Rights in Respect of Loaned Securities and Collateral.

     7.1  Except as set forth in Sections 8.1 and 8.2 and as otherwise agreed by
          Borrower and Lender, until Loaned Securities are required to be
          redelivered to Lender upon termination of a Loan hereunder, Borrower
          shall have all of the incidents of ownership of the Loaned Securities,
          including the right to transfer the Loaned Securities to others.
          Lender hereby waives the right to vote, or to provide any consent or
          to take any similar action with respect to, the Loaned Securities in
          the event that the record date or deadline for such vote, consent or
          other action falls during the term of the Loan.

     7.2  Except as set forth in Sections 8.3 and 8.4 and as otherwise agreed by
          Borrower and Lender, if Lender may, pursuant to Section 4.2,
          Retransfer Collateral, Borrower hereby waives the right to vote, or to
          provide any consent or take any similar action with respect to, any
          such Collateral in the event that the record date or deadline for such
          vote, consent or other action falls during the term of a Loan and such
          Collateral is not required to be returned to Borrower pursuant to
          Section 4.5 or Section 9.

8.   Distributions.

     8.1  Lender shall be entitled to receive all Distributions made on or in
          respect of the Loaned Securities which are not otherwise received by
          Lender, to the full extent it would be so entitled if the Loaned
          Securities had not been lent to Borrower.

     8.2  Any cash Distributions made on or in respect of the Loaned Securities,
          which Lender is entitled to receive pursuant to Section 8.1, shall be
          paid by the transfer of cash to Lender by Borrower, on the date any
          such Distribution is paid, in an amount equal to such cash
          Distribution, so long as Lender is not in Default at the time of such
          payment. Non-cash Distributions that Lender is entitled to receive
          pursuant to Section 8.1 shall be added to the Loaned Securities on the
          date of distribution and shall be considered such for all purposes,
          except that if the Loan has terminated, Borrower shall forthwith
          transfer the same to Lender.

     8.3  Borrower shall be entitled to receive all Distributions made on or in
          respect of non-cash Collateral which are not otherwise received by
          Borrower, to the full extent it would be so entitled if the Collateral
          had not been transferred to Lender.

     8.4  Any cash Distributions made on or in respect of such Collateral, which
          Borrower is entitled to receive pursuant to Section 8.3, shall be paid
          by the transfer of cash to Borrower by Lender, on the date any such
          Distribution is paid, in an amount equal to such cash Distribution, so
          long as Borrower is not in Default at the time of such payment.
          Non-cash Distributions that Borrower is entitled to receive pursuant
          to Section 8.3 shall be added to the Collateral on the date of
          distribution and shall be considered such for all purposes, except
          that if each Loan secured by such Collateral has terminated, Lender
          shall forthwith transfer the same to Borrower.

     8.5  Unless otherwise agreed by the parties:

          (a)  If (i) Borrower is required to make a payment (a "Borrower
               Payment") with respect to cash Distributions on Loaned Securities
               under Sections 8. 1 and 8.2 ("Securities Distributions"), or (ii)
               Lender is required to make a payment (a "Lender Payment") with
               respect to cash Distributions on Collateral under Sections 8.3
               and 8.4 ("Collateral Distributions"), and (iii) Borrower or
               Lender, as the case may be ("Payor"), shall be required by law to
               collect any withholding or other tax, duty, fee, levy or charge
               required to be deducted or withheld from such Borrower Payment or
               Lender Payment ("Tax"), then Payor shall (subject to subsections
               (b) and (c) below), pay such additional amounts as may be
               necessary in order that the net amount of the Borrower Payment or
               Lender Payment received by the Lender or Borrower, as the case
               may be ("Payee"), after payment of such Tax equals the net amount

                                        5
<PAGE>

               of the Securities Distribution or Collateral Distribution that
               would have been received if such Securities Distribution or
               Collateral Distribution had been paid directly to the Payee.

          (b)  No additional amounts shall be payable to a Payee under
               subsection (a) above to the extent that Tax would have been
               imposed on a Securities Distribution or Collateral Distribution
               paid directly to the Payee.

          (c)  No additional amounts shall be payable to a Payee under
               subsection (a) above to the extent that such Payee is entitled to
               an exemption from, or reduction in the rate of, Tax on a Borrower
               Payment or Lender Payment subject to the provision of a
               certificate or other documentation, but has failed timely to
               provide such certificate or other documentation.

          (d)  Each party hereto shall be deemed to represent that, as of the
               commencement of any Loan hereunder, no Tax would be imposed on
               any cash Distribution paid to it with respect to (i) Loaned
               Securities subject to a Loan in which it is acting as Lender or
               (ii) Collateral for any Loan in which it is acting as Borrower,
               unless such party has given notice to the contrary to the other
               party hereto (which notice shall specify the rate at which such
               Tax would be imposed). Each party agrees to notify the other of
               any change that occurs during the term of a Loan in the rate of
               any Tax that would be imposed on any such cash Distributions
               payable to it.

     8.6  To the extent that, under the provisions of Sections 8.1 through 8.5,
          (a) a transfer of cash or other property by Borrower would give rise
          to a Margin Excess or (b) a transfer of cash or other property by
          Under would give rise to a Margin Deficit, Borrower or Lender (as the
          case may be) shall not be obligated to make such transfer of cash or
          other property in accordance with such Sections, but shall in lieu of
          such transfer immediately credit the amounts that would have been
          transferable under such Sections to the account of Lender or Borrower
          (as the case may be).

9.   Mark to Market.

     9.1  If Lender is a Customer, Borrower shall daily mark to market any Loan
          hereunder and in the event that at the Close of Trading on any
          Business Day the Market Value of the Collateral for any Loan to
          Borrower shall be less than 100% of the Market Value of all the
          outstanding Loaned Securities subject to such Loan, Borrower shall
          transfer additional Collateral no later than the Close of Business on
          the next Business Day so that the Market Value of such additional
          Collateral, when added to the Market Value of the other Collateral for
          such Loan, shall equal 100% of the Market Value of the Loaned
          Securities.

     9.2  In addition to any rights of Lender under Section 9. 1, if at any time
          the aggregate Market Value of all Collateral for Loans by Lender shall
          be less than the Margin Percentage of the Market Value of all the
          outstanding Loaned Securities subject to such Loans (a "Margin
          Deficit"), Lender may, by notice to Borrower, demand that Borrower
          transfer to Lender additional Collateral so that the Market Value of
          such additional Collateral, when added to the Market Value of all
          other Collateral for such Loans, shall equal or exceed the Margin
          Percentage of the Market Value of the Loaned Securities.

     9.3  Subject to Borrower's obligations under Section 9. 1, if at any time
          the Market Value of all Collateral for Loans to Borrower shall be
          greater than the Margin Percentage of the Market Value of all the
          outstanding Loaned Securities subject to such Loans (a "Margin
          Excess"), Borrower may, by notice to Lender, demand that Lender
          transfer to Borrower such amount of the Collateral selected by
          Borrower so that the Market Value of the Collateral for such Loans,
          after deduction of such amounts, shall thereupon not exceed the Margin
          Percentage of the Market Value of the Loaned Securities.

                                        6
<PAGE>

     9.4  Borrower and Lender may agree, with respect to one or more Loans
          hereunder, to mark the values to market pursuant to Sections 9.2 and
          9.3 by separately valuing the Loaned Securities lent and the
          Collateral given in respect thereof on a Loan-by-Loan basis.

     9.5  Borrower and Lender may agree, with respect to any or all Loans
          hereunder, that the respective rights of Lender and Borrower under
          Sections 9.2 and 9.3 may be exercised only where a Margin Excess or
          Margin Deficit exceeds a specified dollar amount or a specified
          percentage of the Market Value of the Loaned Securities under such
          Loans (which amount or percentage shall be agreed to by Borrower and
          Lender prior to entering into any such Loans).

     9.6  If any notice is given by Borrower or Lender under Sections 9.2 or 9.3
          at or before the Margin Notice Deadline on any day on which a transfer
          of Collateral may be effected in accordance with Section 15, the party
          receiving such notice shall transfer Collateral as provided in such
          Section no later than the Close of Business on such day. If any such
          notice is given after the Margin Notice Deadline, the party receiving
          such notice shall transfer such Collateral no later than the Close of
          Business on the next Business Day following the day of such notice.

10.  Representations.

     The parties to this Agreement hereby make the following representations and
     warranties, which shall continue during the term of any Loan hereunder:

     10.1 Each party hereto represents and warrants that (a) it has the power to
          execute and deliver this Agreement, to enter into the Loans
          contemplated hereby and to perform its obligations hereunder, (b) it
          has taken all necessary action to authorize such execution, delivery
          and performance, and (c) this Agreement constitutes a legal, valid and
          binding obligation enforceable against it in accordance with its
          terms.

     10.2 Each party hereto represents and warrants that it has not relied on
          the other for any tax or accounting advice concerning this Agreement
          and that it has made its own determination as to the tax and
          accounting treatment of any Loan and any dividends, remuneration or
          other funds received hereunder.

     10.3 Each party hereto represents and warrants that it is acting for its
          own account unless it expressly specifies otherwise in writing and
          complies with Section 11.1(b).

     10.4 Borrower represents and warrants that it has, or will have at the time
          of transfer of any Collateral, the right to grant a first priority
          security interest therein subject to the terms and conditions hereof.

     10.5 (a) Borrower represents and warrants that it (or the person to whom it
          relends the Loaned Securities) is borrowing or will borrow Loaned
          Securities that are Equity Securities for the purpose of making
          delivery of such Loaned Securities in the case of short sales, failure
          to receive securities required to be delivered, or as otherwise
          permitted pursuant to Regulation T as in effect from time to time.

          (b) Borrower and Lender may agree, as provided in Section 24.2, that
          Borrower shall not be deemed to have made the representation or
          warranty in subsection (a) with respect to any Loan. By entering into
          any such agreement, Lender shall be deemed to have represented and
          warranted to Borrower (which representation and warranty shall be
          deemed to be repeated on each day during the term of the Loan) that
          Lender is either (i) an "exempted borrower" within the meaning of
          Regulation T or (ii) a member of a national securities exchange or a
          broker or dealer registered with the U.S. Securities and Exchange
          Commission that is entering into such Loan to finance its activities
          as a market maker or an underwriter.

                                        7
<PAGE>

     10.5 Lender represents and warrants that it has, or will have at the time
          of transfer of any Loaned Securities, the right to transfer the Loaned
          Securities subject to the terms and conditions hereof.

11.  Covenants.

     11.1 Each party agrees either (a) to be liable as principal with respect to
          its obligations hereunder or (b) to execute and comply fully with the
          provisions of Annex I (the terms and conditions of which Annex are
          incorporated herein and made a part hereof).

     11.2 Promptly upon (and in any event within seven (7) Business Days after)
          demand by Lender, Borrower shall furnish Lender with Borrower's most
          recent publicly-available financial statements and any other financial
          statements mutually agreed upon by Borrower and Lender. Unless
          otherwise agreed, if Borrower is subject to the requirements of Rule
          17a-5(c) under the Exchange Act, it may satisfy the requirements of
          this Section by furnishing Lender with its most recent statement
          required to be furnished to customers pursuant to such Rule.

12.  Events of Default.

     All Loans hereunder may, at the option of the non-defaulting party (which
     option shall be deemed to have been exercised immediately upon the
     occurrence of an Act of Insolvency), be terminated immediately upon the
     occurrence of any one or more of the following events (individually, a
     "Default"):

     12.1 if any  Loaned  Securities  shall not be  transferred  to Lender  upon
          termination of the Loan as required by Section 6;

     12.2 if  any   Collateral   shall  not  be  transferred  to  Borrower  upon
          termination of the Loan as required by Sections 4.3 and 6;

     12.3 if either  party  shall fail to  transfer  Collateral  as  required by
          Section 9;

     12.4 if either party (a) shall fail to transfer to the other party amounts
          in respect of Distributions required to be transferred by Section 8,
          (b) shall have been notified of such failure by the other party prior
          to the Close of Business on any day, and (c) shall not have cured such
          failure by the Cutoff Time on the next day after such Close of
          Business on which a transfer of cash may be effected in accordance
          with Section 15;

     12.5 if an Act of Insolvency occurs with respect to either party;

     12.6 if any representation made by either party in respect of this
          Agreement or any Loan or Loans hereunder shall be incorrect or untrue
          in any material respect during the term of any Loan hereunder;

     12.7 if either party notifies the other of its inability to or its
          intention not to perform its obligations hereunder or otherwise
          disaffirms, rejects or repudiates any of its obligations hereunder; or

     12.8 if either party (a) shall fail to perform any material obligation
          under this Agreement not specifically set forth in clauses 12.1
          through 12.7, above, including but not limited to the payment of fees
          as required by Section 5, and the payment of transfer taxes as
          required by Section 14, (b) shall have been notified of such failure
          by the other party prior to the Close of Business on any day, and (c)
          shall not have cured such failure by the Cutoff Time on the next day
          after such Close of Business on which a transfer of cash may be
          effected in accordance with Section 15.

                                        8
<PAGE>

     The non-defaulting party shall (except upon the occurrence of an Act of
     Insolvency) give notice as promptly as practicable to the defaulting party
     of the exercise of its option to terminate all Loans hereunder pursuant to
     this Section 12.

13.  Remedies.

     13.1 Upon the occurrence of a Default under Section 12 entitling Lender to
          terminate all Loans hereunder, Lender shall have the right, in
          addition to any other remedies provided herein, (a) to purchase a like
          amount of Loaned Securities ("Replacement Securities") in the
          principal market for such Loaned Securities in a commercially
          reasonable manner, (b) to sell any Collateral in the principal market
          for such Collateral in a commercially reasonable manner and (c) to
          apply and set off the Collateral and any proceeds thereof (including
          any amounts drawn under a letter of credit supporting any Loan)
          against the payment of the purchase price for such Replacement
          Securities and any amounts due to Lender under Sections 5, 8, 14 and
          16. In the event that Lender shall exercise such rights, Borrower's
          obligation to return a like amount of the Loaned Securities shall
          terminate. Lender may similarly apply the Collateral and any proceeds
          thereof to any other obligation of Borrower under this Agreement,
          including Borrower's obligations with respect to Distributions paid to
          Borrower (and not forwarded to Lender) in respect of Loaned
          Securities. In the event that (i) the purchase price of Replacement
          Securities (plus all other amounts, if any, due to Lender hereunder)
          exceeds (ii) the amount of the Collateral, Borrower shall be liable to
          Lender for the amount of such excess together with interest thereon at
          a rate equal to (A) in the case of purchases of Foreign Securities,
          LIBOR, (B) in the case of purchases of any other Securities (or other
          amounts, if any, due to Lender hereunder), the Federal Funds Rate or
          (C) such other rate as may be specified in Schedule B, in each case as
          such rate fluctuates from day to day, from the date of such purchase
          until the date of payment of such excess. As security for Borrower's
          obligation to pay such excess, Lender shall have, and Borrower hereby
          grants, a security interest in any property of Borrower then held by
          or for Lender and a right of setoff with respect to such property and
          any other amount payable by Lender to Borrower. The purchase price of
          Replacement Securities purchased under this Section 13.1 shall
          include, and the proceeds of any sale of Collateral shall be
          determined after deduction of, broker's fees and commissions and all
          other reasonable costs, fees and expenses related to such purchase or
          sale (as the case may be). In the event Lender exercises its rights
          under this Section 13.1, Lender may elect in its sole discretion, in
          lieu of purchasing all or a portion of the Replacement Securities or
          selling all or a portion of the Collateral, to be deemed to have made,
          respectively, such purchase of Replacement Securities or sale of
          Collateral for an amount equal to the price therefor on the date of
          such exercise obtained from a generally recognized source or the last
          bid quotation from such a source at the most recent Close of Trading.
          Subject to Section 18, upon the satisfaction of all obligations
          hereunder, any remaining Collateral shall be returned to Borrower.

     13.2 Upon the occurrence of a Default under Section 12 entitling Borrower
          to terminate all Loans hereunder, Borrower shall have the right, in
          addition to any other remedies provided herein, (a) to purchase a like
          amount of Collateral ("Replacement Collateral") in the principal
          market for such Collateral in a commercially reasonable manner, (b) to
          sell a like amount of the Loaned Securities in the principal market
          for such Loaned Securities in a commercially reasonable manner and (c)
          to apply and set off the Loaned Securities and any proceeds thereof
          against (i) the payment of the purchase price for such Replacement
          Collateral, (ii) Lender's obligation to return any cash or other
          Collateral, and (iii) any amounts due to Borrower under Sections 5, 8
          and 16. In such event, Borrower may treat the Loaned Securities as its
          own and Lender's obligation to return a like amount of the Collateral
          shall terminate; provided, however, that Lender shall immediately
          return any letters of credit supporting any Loan upon the exercise or
          deemed exercise by Borrower of its termination rights under Section
          12. Borrower may similarly apply the Loaned Securities and any
          proceeds thereof to any other obligation of Lender under this
          Agreement, including Lender's obligations with respect to
          Distributions paid to Lender (and not forwarded to Borrower) in
          respect of Collateral. In the event that (i) the sales price received
          from such Loaned Securities is less than (ii) the purchase price of
          Replacement Collateral (plus the amount of any cash or other
          Collateral not replaced by Borrower and all other amounts, if any, due

                                        9
<PAGE>

          to Borrower hereunder), Lender shall be liable to Borrower for the
          amount of any such deficiency, together with interest on such amounts
          at a rate equal to (A) in the case of Collateral consisting of Foreign
          Securities, LIBOR, (B) in the case of Collateral consisting of any
          other Securities (or other amounts due, if any, to Borrower
          hereunder), the Federal Funds Rate or (C) such other rate as may be
          specified in Schedule B, in each case as such rate fluctuates from day
          to day, from the date of such sale until the date of payment of such
          deficiency. As security for Lender's obligation to pay such
          deficiency, Borrower shall have, and Lender hereby grants, a security
          interest in any property of Lender then held by or for Borrower and a
          right of setoff with respect to such property and any other amount
          payable by Borrower to Lender. The purchase price of any Replacement
          Collateral purchased under this Section 13.2 shall include, and the
          proceeds of any sale of Loaned Securities shall be determined after
          deduction of, broker's fees and commissions and all other reasonable
          costs, fees and expenses related to such purchase or sale (as the case
          may be). In the event Borrower exercises its rights under this Section
          13.2, Borrower may elect in its sole discretion, in lieu of purchasing
          all or a portion of the Replacement Collateral or selling all or a
          portion of the Loaned Securities, to be deemed to have made,
          respectively, such purchase of Replacement Collateral or sale of
          Loaned Securities for an amount equal to the price therefor on the
          date of such exercise obtained from a generally recognized source or
          the last bid quotation from such a source at the most recent Close of
          Trading. Subject to Section 18, upon the satisfaction of all Lender's
          obligations hereunder, any remaining Loaned Securities (or remaining
          cash proceeds thereof) shall be returned to Lender.

     13.3 Unless otherwise agreed, the parties acknowledge and agree that (a)
          the Loaned Securities and any Collateral consisting of Securities are
          of a type traded in a recognized market, (b) in the absence of a
          generally recognized source for prices or bid or offer quotations for
          any security, the non-defaulting party may establish the source
          therefor in its sole discretion, and (c) all prices and bid and offer
          quotations shall be increased to include accrued interest to the
          extent not already included therein (except to the extent contrary to
          market practice with respect to the relevant Securities).

     13.4 In addition to its rights hereunder, the non-defaulting party shall
          have any rights otherwise available to it under any other agreement or
          applicable law.

14.  Transfer Taxes.

     All transfer taxes with respect to the transfer of the Loaned Securities by
     Lender to Borrower and by Borrower to Lender upon termination of the Loan
     and with respect to the transfer of Collateral by Borrower to Lender and by
     Lender to Borrower upon termination of the Loan or pursuant to Section 4.5
     or Section 9 shall be paid by Borrower.

15.  Transfers.

     15.1 All transfers by either Borrower or Lender of Loaned Securities or
          Collateral consisting of "financial assets" (within the meaning of the
          UCC) hereunder shall be by (a) in the case of certificated securities,
          physical delivery of certificates representing such securities
          together with duly executed stock and bond transfer powers, as the
          case may be, with signatures guaranteed by a bank or a member firm of
          the New York Stock Exchange, Inc., (b) registration of an
          uncertificated security in the transferee's name by the issuer of such
          uncertificated security, (c) the crediting by a Clearing Organization
          of such financial assets to the transferee's "securities account"
          (within the meaning of the UCC) maintained with such Clearing
          Organization, or (d) such other means as Borrower and Lender may
          agree.

     15.2 All transfers of cash hereunder shall be by (a) wire transfer in
          immediately available, freely transferable funds or (b) such other
          means as Borrower and Lender may agree.

     15.3 All transfers of letters of credit from Borrower to Lender shall be
          made by physical delivery to Lender of an irrevocable letter of credit

                                       10
<PAGE>

          issued by a "bank" as defined in Section 3(a)(6)(A)-(C) of the
          Exchange Act. Transfers of letters of credit from Lender to Borrower
          shall be made by causing such letters of credit to be returned or by
          causing the amount of such letters of credit to be reduced to the
          amount required after such transfer.

     15.4 A transfer of Securities, cash or letters of credit may be effected
          under this Section 15 on any day except (a) a day on which the
          transferee is closed for business at its address set forth in Schedule
          A hereto or (b) a day on which a Clearing Organization or wire
          transfer system is closed, if the facilities of such Clearing
          Organization or wire transfer system are required to effect such
          transfer.

     15.5 For the avoidance of doubt, the parties agree and acknowledge that the
          term "securities," as used herein (except in this Section 15), shall
          include any "security entitlements" with respect to such securities
          (within the meaning of the UCC). In every transfer of "financial
          assets" (within the meaning of the UCC) hereunder, the transferor
          shall take all steps necessary (a) to effect a delivery to the
          transferee under Section 8-301 of the UCC, or to cause the creation of
          a security entitlement in favor of the transferee under Section 8-501
          of the UCC, (b) to enable the transferee to obtain "control" (within
          the meaning of Section 8-106 of the UCC), and (c) to provide the
          transferee with comparable rights under any applicable foreign law or
          regulation.

16.  Contractual Currency.

     16.1 Borrower and Lender agree that (a) any payment in respect of a
          Distribution under Section 8 shall be made in the currency in which
          the underlying Distribution of cash was made, (b) any return of cash
          shall be made in the currency in which the underlying transfer of cash
          was made, and (c) any other payment of cash in connection with a Loan
          under this Agreement shall be in the currency agreed upon by Borrower
          and Lender in connection with such Loan (the currency established
          under clause (a), (b) or (c) hereinafter referred to as the
          "Contractual Currency"). Notwithstanding the foregoing, the payee of
          any such payment may, at its option, accept tender thereof in any
          other currency, provided, however, that, to the extent permitted by
          applicable law, the obligation of the payor to make such payment will
          be discharged only to the extent of the amount of Contractual Currency
          that such payee may, consistent with normal banking procedures,
          purchase with such other currency (after deduction of any premium and
          costs of exchange) on the banking day next succeeding its receipt of
          such currency.

     16.2 If for any reason the amount in the Contractual Currency received
          under Section 16.1, including amounts received after conversion of any
          recovery under any judgment or order expressed in a currency other
          than the Contractual Currency, falls short of the amount in the
          Contractual Currency due in respect of this Agreement, the party
          required to make the payment will (unless a Default has occurred and
          such party is the non-defaulting party) as a separate and independent
          obligation and to the extent permitted by applicable law, immediately
          pay such additional amount in the Contractual Currency as may be
          necessary to compensate for the shortfall.

     16.3 If for any reason the amount in the Contractual Currency received
          under Section 16.1 exceeds the amount in the Contractual Currency due
          in respect of this Agreement, then the party receiving the payment
          will (unless a Default has occurred and such party is the
          non-defaulting party) refund promptly the amount of such excess.

17.  ERISA.

     Lender shall, if any of the Securities transferred to the Borrower
     hereunder for any Loan have been or shall be obtained, directly or
     indirectly, from or using the assets of any Plan, so notify Borrower in
     writing upon the execution of this Agreement or upon initiation of such
     Loan under Section 2. 1. If Lender so notifies Borrower, then Borrower and

                                       11
<PAGE>

     Lender shall conduct the Loan in accordance with the terms and conditions
     of Department of Labor Prohibited Transaction Exemption 81-6 (46 Fed. Reg.
     7527, Jan. 23, 1981; as amended, 52 Fed. Reg. 18754, May 19, 1987), or any
     successor thereto (unless Borrower and Lender have agreed prior to entering
     into a Loan that such Loan will be conducted in reliance on another
     exemption, or without relying on any exemption, from the prohibited
     transaction provisions of Section 406 of the Employee Retirement Income
     Security Act of 1974, as amended, and Section 4975 of the Internal Revenue
     Code of 1986, as amended). Without limiting the foregoing and
     notwithstanding any other provision of this Agreement, if the Loan will be
     conducted in accordance with Prohibited Transaction Exemption 81-6, then:

     17.1 Borrower represents and warrants to Lender that it is either (a) a
          bank subject to federal or state supervision, (b) a broker-dealer
          registered under the Exchange Act or (c) exempt from registration
          under Section 15(a)(1) of the Exchange Act as a dealer in Government
          Securities.

     17.2 Borrower represents and warrants that, during the term of any Loan
          hereunder, neither Borrower nor any affiliate of Borrower has any
          discretionary authority or control with respect to the investment of
          the assets of the Plan involved in the Loan or renders investment
          advice (within the meaning of 29 C.F.R. Section 2510.3-21(c)) with
          respect to the assets of the Plan involved in the Loan. Lender agrees
          that, prior to or at the commencement of any Loan hereunder, it will
          communicate to Borrower information regarding the Plan sufficient to
          identify to Borrower any person or persons that have discretionary
          authority or control with respect to the investment of the assets of
          the Plan involved in the Loan or that render investment advice (as
          defined in the preceding sentence) with respect to the assets of the
          Plan involved in the Loan. In the event Lender fails to communicate
          and keep current during the term of any Loan such information, Lender
          rather than Borrower shall be deemed to have made the representation
          and warranty in the first sentence of this Section 17.2.

     17.3 Borrower shall mark to market daily each Loan hereunder pursuant to
          Section 9.1 as is required if Lender is a Customer.

     17.4 Borrower and Lender agree that:

          (a)  the term "Collateral" shall mean cash, securities issued or
               guaranteed by the United States government or its agencies or
               instrumentalities, or irrevocable bank letters of credit issued
               by a person other than Borrower or an affiliate thereof;

          (b)  prior to the making of any Loans hereunder, Borrower shall
               provide Lender with (i) the most recent available audited
               statement of Borrower's financial condition and (ii) the most
               recent available unaudited statement of Borrower's financial
               condition (if more recent than the most recent audited
               statement), and each Loan made hereunder shall be deemed a
               representation by Borrower that there has been no material
               adverse change in Borrower's financial condition subsequent to
               the date of the latest financial statements or information
               furnished in accordance herewith;

          (c)  the Loan may be terminated by Lender at any time, whereupon
               Borrower shall deliver the Loaned Securities to Lender within the
               lesser of (i) the customary delivery period for such Loaned
               Securities, (ii) five Business Days, and (iii) the time
               negotiated for such delivery between Borrower and Lender;
               provided, however, that Borrower and Lender may agree to a longer
               period only if permitted by Prohibited Transaction Exemption
               81-6; and

          (d)  the Collateral transferred shall be security only for obligations
               of Borrower to the Plan with respect to Loans, and shall not be
               security for any obligation of Borrower to any agent or affiliate
               of the Plan.

                                       12
<PAGE>

18.  Single Agreement.

     Borrower and Lender acknowledge that, and have entered into this Agreement
     in reliance on the fact that, all Loans hereunder constitute a single
     business and contractual relationship and have been entered into in
     consideration of each other. Accordingly, Borrower and Lender hereby agree
     that payments, deliveries and other transfers made by either of them in
     respect of any Loan shall be deemed to have been made in consideration of
     payments, deliveries and other transfers in respect of any other Loan
     hereunder, and the obligations to make any such payments, deliveries and
     other transfers may be applied against each other and netted. In addition,
     Borrower and Lender acknowledge that, and have entered into this Agreement
     in reliance on the fact that, all Loans hereunder have been entered into in
     consideration of each other. Accordingly, Borrower and Lender hereby agree
     that (a) each shall perform all of its obligations in respect of each Loan
     hereunder, and that a default in the performance of any such obligation by
     Borrower or by Lender (the "Defaulting Party") in any Loan hereunder shall
     constitute a default by the Defaulting Party under all such Loans
     hereunder, and (b) the non-defaulting party shall be entitled to set off
     claims and apply property held by it in respect of any Loan hereunder
     against obligations owing to it in respect of any other Loan with the
     Defaulting Party.

19.  APPLICABLE LAW.

     THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS
     OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
     PRINCIPLES THEREOF.

20.  Waiver.

     The failure of a party to this Agreement to insist upon strict adherence to
     any term of this Agreement on any occasion shall not be considered a waiver
     or deprive that party of the right thereafter to insist upon strict
     adherence to that term or any other term of this Agreement. All waivers in
     respect of a Default must be in writing.

21.  Survival of Remedies.

     All remedies hereunder and all obligations with respect to any Loan shall
     survive the termination of the relevant Loan, return of Loaned Securities
     or Collateral and termination of this Agreement.

22.  Notices and Other Communications.

     Any and all notices, statements, demands or other communications hereunder
     may be given by a party to the other by telephone, mail, facsimile, e-mail,
     electronic message, telegraph, messenger or otherwise to the individuals
     and at the facsimile numbers and addresses specified with respect to it in
     Schedule A hereto, or sent to such party at any other place specified in a
     notice of change of number or address hereafter received by the other
     party. Any notice, statement, demand or other communication hereunder will
     be deemed effective on the day and at the time on which it is received or,
     if not received, on the day and at the time on which its delivery was in
     good faith attempted; provided, however, that any notice by a party to the
     other party by telephone shall be deemed effective only if (a) such notice
     is followed by written confirmation thereof and (b) at least one of the
     other means of providing notice that are specifically listed above has
     previously been attempted in good faith by the notifying party.

23.  SUBMISSION TO JURISDICTION; WAIVIER OF JURY TRIAL.

     23.1 EACH PARTY HERETO IRREVOCABLY AND  UNCONDITIONALLY  (A) SUBMITS TO THE
          NON-EXCLUSIVE  JURISDICTION  OF ANY UNITED STATES  FEDERAL OR NEW YORK

                                       13
<PAGE>

          STATE COURT SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY
          SUCH COURT, SOLELY FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING
          BROUGHT TO ENFORCE ITS OBLIGATIONS HEREUNDER OR RELATING IN ANY WAY TO
          THIS AGREEMENT OR ANY LOAN HEREUNDER AND (B) WAIVES, TO THE FULLEST
          EXTENT IT MAY EFFECTIVELY DO SO, ANY DEFENSE OF AN INCONVENIENT FORUM
          TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND
          ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS PLACE OF RESIDENCE OR
          DOMICILE.

     23.2 EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE
          TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
          OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
          HEREBY.

24.  Miscellaneous.

     24.1 Except as otherwise agreed by the parties, this Agreement supersedes
          any other agreement between the parties hereto concerning loans of
          Securities between Borrower and Lender. This Agreement shall not be
          assigned by either party without the prior written consent of the
          other party and any attempted assignment without such consent shall be
          null and void. Subject to the foregoing, this Agreement shall be
          binding upon and shall inure to the benefit of Borrower and Lender and
          their respective heirs, representatives, successors and assigns. This
          Agreement may be terminated by either party upon notice to the other,
          subject only to fulfillment of any obligations then outstanding. This
          Agreement shall not be modified, except by an instrument in writing
          signed by the party against whom enforcement is sought. The parties
          hereto acknowledge and agree that, in connection with this Agreement
          and each Loan hereunder, time is of the essence. Each provision and
          agreement herein shall be treated as separate and independent from any
          other provision herein and shall be enforceable notwithstanding the
          unenforceability of any such other provision or agreement.

     24.2 Any agreement between Borrower and Lender pursuant to Section 10.5(b)
          or Section 25.37 shall be made (a) in writing, (b) orally, if
          confirmed promptly in writing or through any system that compares
          Loans and in which Borrower and Lender are participants, or (c) in
          such other manner as may be agreed by Borrower and Lender in writing.

25.  Definitions.

     For the purposes hereof-

     25.1 "Act of Insolvency" shall mean, with respect to any party, (a) the
          commencement by such party as debtor of any case or proceeding under
          any bankruptcy, insolvency, reorganization, liquidation, moratorium,
          dissolution, delinquency or similar law, or such party's seeking the
          appointment or election of a receiver, conservator, trustee, custodian
          or similar official for such party or any substantial part of its
          property, or the convening of any meeting of creditors for purposes of
          commencing any such case or proceeding or seeking such an appointment
          or election, (b) the commencement of any such case or proceeding
          against such party, or another seeking such an appointment or
          election, or the filing against a party of an application for a
          protective decree under the provisions of the Securities Investor
          Protection Act of 1970, which (i) is consented to or not timely
          contested by such party, (ii) results in the entry of an order for
          relief, such an appointment or election, the issuance of such a
          protective decree or the entry of an order having a similar effect, or
          (iii) is not dismissed within 15 days, (c) the making by such party of
          a general assignment for the benefit of creditors, or (d) the
          admission in writing by such party of such party's inability to pay
          such party's debts as they become due.

     25.2 "Bankruptcy Code" shall have the meaning assigned in Section 26.1

                                       14
<PAGE>

     25.3 "Borrower" shall have the meaning assigned in Section 1.

     25.4 "Borrower Payment" shall have the meaning assigned in Section 8.5(a).

     25.5 "Broker-Dealer", shall mean any person that is a broker (including a
          municipal securities broker), dealer, municipal securities dealer,
          government securities broker or government securities dealer as
          defined in the Exchange Act, regardless of whether the activities of
          such person are conducted in the United States or otherwise require
          such person to register with the U.S. Securities and Exchange
          Commission or other regulatory body.

     25.6 "Business Day" shall mean, with respect to any Loan hereunder, a day
          on which regular trading occurs in the principal market for the Loaned
          Securities subject to such Loan, provided, however, that for purposes
          of determining the Market Value of any Securities hereunder, such term
          shall mean a day on which regular trading occurs in the principal
          market for the Securities whose value is being determined.
          Notwithstanding the foregoing, (a) for purposes of Section 9,
          "Business Day" shall mean any day on which regular trading occurs in
          the principal market for any Loaned Securities or for any Collateral
          consisting of Securities under any outstanding Loan hereunder and
          "next Business Day" shall mean the next day on which a transfer of
          Collateral may be effected in accordance with Section 15, and (b) in
          no event shall a Saturday or Sunday be considered a Business Day.

     25.7 "Cash Collateral Fee" shall have the meaning assigned in Section 5. 1.

     25.8 "Clearing Organization" shall mean (a) The Depository Trust Company,
          or, if agreed to by Borrower and Lender, such other "securities
          intermediary" (within the meaning of the UCC) at which Borrower (or
          Borrower's agent) and Lender (or Lender's agent) maintain accounts, or
          (b) a Federal Reserve Bank, to the extent that it maintains a
          book-entry system.

     25.9 "Close of Business" shall mean the time established by the parties in
          Schedule B or otherwise orally or in writing or, in the absence of any
          such agreement, as shall be determined in accordance with market
          practice.

     25.10"Close of Trading" shall mean, with respect to any Security, the end
          of the primary trading session established by the principal market for
          such Security on a Business Day, unless otherwise agreed by the
          parties.

     25.11"Collateral" shall mean, whether now owned or hereafter acquired and
          to the extent permitted by applicable law, (a) any property which
          Borrower and Lender agree prior to the Loan shall be acceptable
          collateral and which is transferred to Lender pursuant to Sections 4
          or 9 (including as collateral, for definitional purposes, any letters
          of credit mutually acceptable to Lender and Borrower), (b) any
          property substituted therefor pursuant to Section 4.5, (c) all
          accounts in which such property is deposited and all securities and
          the like in which any cash collateral is invested or reinvested, and
          (d) any proceeds of any of the foregoing; provided, however, that if
          Lender is a Customer, "Collateral" shall (subject to Section 17.4(a),
          if applicable) be limited to cash, U.S. Treasury bills and notes, an
          irrevocable letter of credit issued by a "bank" (as defined in Section
          3(a)(6)(A)-(C) of the Exchange Act), and any other property permitted
          to serve as collateral securing a loan of securities under Rule 15c3-3
          under the Exchange Act or any comparable regulation of the Secretary
          of the Treasury under Section 15C of the Exchange Act (to the extent
          that Borrower is subject to such Rule or comparable regulation)
          pursuant to exemptive, interpretive or no-action relief or otherwise.
          If any new or different Security shall be exchanged for any Collateral
          by recapitalization, merger, consolidation or other corporate action,
          such new or different Security shall, effective upon such exchange, be
          deemed to become Collateral in substitution for the former Collateral

                                       15
<PAGE>

          for which such exchange is made. For purposes of return of Collateral
          by Lender or purchase or sale of Securities pursuant to Section 13,
          such term shall include Securities of the same issuer, class and
          quantity as the Collateral initially transferred by Borrower to
          Lender, as adjusted pursuant to the preceding sentence.

     25.12"Collateral  Distributions" shall have the meaning assigned in Section
          8.5(a).

     25.13 "Confirmation" shall have the meaning assigned in Section 2. 1.

     25.14"Contractual  Currency"  shall have the  meaning  assigned  in Section
          16.1.

     25.15"Customer" shall mean any person that is a customer of Borrower under
          Rule 15c3-3 under the Exchange Act or any comparable regulation of the
          Secretary of the Treasury under Section 15C of the Exchange Act (to
          the extent that Borrower is subject to such Rule or comparable
          regulation).

     25.16"Cutoff Time" shall mean a time on a Business Day by which a transfer
          of cash, securities or other property must be made by Borrower or
          Lender to the other, as shall be agreed by Borrower and Lender in
          Schedule B or otherwise orally or in writing or, in the absence of any
          such agreement, as shall be determined in accordance with market
          practice.

     25.17 "Default" shall have the meaning assigned in Section 12.

     25.18 "Defaulting Party" shall have the meaning assigned in Section 18.

     25.19"Distribution" shall mean, with respect to any Security at any time,
          any distribution made on or in respect of such Security, including,
          but not limited to: (a) cash and all other property, (b) stock
          dividends, (c) Securities received as a result of split ups of such
          Security and distributions in respect thereof, (d) interest payments,
          (e) all rights to purchase additional Securities, and (f) any cash or
          other consideration paid or provided by the issuer of such Security in
          exchange for any vote, consent or the taking of any similar action in
          respect of such Security (regardless of whether the record date for
          such vote, consent or other action falls during the term of the Loan).
          In the event that the holder of a Security is entitled to elect the
          type of distribution to be received from two or more alternatives,
          such election shall be made by Lender, in the case of a Distribution
          in respect of the Loaned Securities, and by Borrower, in the case of a
          Distribution in respect of Collateral.

     25.20"Equity Security" shall mean any security (as defined in the Exchange
          Act) other than a "nonequity security," as defined in Regulation T.

     25.21"Exchange  Act" shall mean the  Securities  Exchange  Act of 1934,  as
          amended.

     25.22"Extension Deadline" shall mean, with respect to a letter of credit,
          the Cutoff Time on the Business Day preceding the day on which the
          letter of credit expires.

     25.23 "FDIA" shall have the meaning assigned in Section 26.4.

     25.24 "FDICIA" shall have the meaning assigned in Section 26.5.

     25.25"Federal Funds Rate" shall mean the rate of interest (expressed as an
          annual rate), as published in Federal Reserve Statistical Release H.
          15(519) or any publication substituted therefor, charged for federal
          funds (dollars in immediately available funds borrowed by banks on an
          overnight unsecured basis) on that day or, if that day is not a
          banking day in New York City, on the next preceding banking day.

                                       16
<PAGE>

     25.26"Foreign Securities" shall mean, unless otherwise agreed, Securities
          that are principally cleared and settled outside the United States.

     25.27"Government Securities" shall mean government securities as defined in
          Section 3(a)(42)(A)-(C) of the Exchange Act.

     25.28 "Lender" shall have the meaning assigned in Section 1.

     25.29 "Lender Payment" shall have the meaning assigned in Section 8.5(a).

     25.30"LIBOR" shall mean for any date, the offered rate for deposits in U.S.
          dollars for a period of three months which appears on the Reuters
          Screen LIBO page as of 11:00 a.m., London time, on such date (or, if
          at least two such rates appear, the arithmetic mean of such rates).

     25.31 "Loan" shall have the meaning assigned in Section 1.

     25.32 "Loan Fee" shall have the meaning assigned in Section 5.1.

     25.33"Loaned Security" shall mean any Security transferred in a Loan
          hereunder until such Security (or an identical Security) is
          transferred back to Lender hereunder, except that, if any new or
          different Security shall be exchanged for any Loaned Security by
          recapitalization, merger, consolidation or other corporate action,
          such new or different Security shall, effective upon such exchange, be
          deemed to become a Loaned Security in substitution for the former
          Loaned Security for which such exchange is made. For purposes of
          return of Loaned Securities by Borrower or purchase or sale of
          Securities pursuant to Section 13, such term shall include Securities
          of the same issuer, class and quantity as the Loaned Securities, as
          adjusted pursuant to the preceding sentence.

     25.34 "Margin Deficit" shall have the meaning assigned in Section 9.2.

     25.35 "Margin Excess" shall have the meaning assigned in Section 9.3.

     25.36"Margin Notice Deadline" shall mean the time agreed to by the parties
          in the relevant Confirmation, Schedule B hereto or otherwise as the
          deadline for giving notice requiring same-day satisfaction of
          mark-to-market obligations as provided in Section 9 hereof (or, in the
          absence of any such agreement, the deadline for such purposes
          established in accordance with market practice).

     25.37"Margin Percentage" shall mean, with respect to any Loan as of any
          date, a percentage agreed by Borrower and Lender, which shall be not
          less than 100%, unless (a) Borrower and Lender agree otherwise, as
          provided in Section 24.2, and (b) Lender is not a Customer.
          Notwithstanding the previous sentence, in the event that the writing
          or other confirmation evidencing the agreement described in clause (a)
          does not set out such percentage with respect to any such Loan, the
          Margin Percentage shall not be a percentage less than the percentage
          obtained by dividing (i) the Market Value of the Collateral required
          to be transferred by Borrower to Lender with respect to such Loan at
          the commencement of the Loan by (ii) the Market Value of the Loaned
          Securities required to be transferred by Lender to Borrower at the
          commencement of the Loan.

     25.38"Market Value" shall have the meaning set forth in Annex II or
          otherwise agreed to by Borrower and Lender in writing. Notwithstanding
          the previous sentence, in the event that the meaning of Market Value
          has not been set forth in Annex II or in any other writing, as
          described in the previous sentence, Market Value shall be determined
          in accordance with market practice for the Securities, based on the
          price for such Securities as of the most recent Close of Trading

                                       17
<PAGE>

          obtained from a generally recognized source agreed to by the parties
          or the closing bid quotation at the most recent Close of Trading
          obtained from such source, plus accrued interest to the extent not
          included therein (other than any interest credited or transferred to,
          or applied to the obligations of, the other party pursuant to Section
          8, unless market practice with respect to the valuation of such
          Securities in connection with securities loans is to the contrary). If
          the relevant quotation did not exist at such Close of Trading, then
          the Market Value shall be the relevant quotation on the next preceding
          Close of Trading at which there was such a quotation. The
          determinations of Market Value provided for in Annex II or in any
          other writing described in the first sentences of this Section 25.38
          or, if applicable, in the preceding sentence shall apply for all
          purposes under this Agreement, except for purposes of Section 13.

     25.39 "Payee" shall have the meaning assigned in Section 8.5(a).

     25.40 "Payor" shall have the meaning assigned in Section 8.5(a).

     25.41"Plan" shall mean: (a) any "employee benefit plan" as defined in
          Section 3(3) of the Employee Retirement Income Security Act of 1974
          which is subject to Part 4 of Subtitle B of Title I of such Act; (b)
          any "plan" as defined in Section 4975(e)(1) of the Internal Revenue
          Code of 1986; or (c) any entity the assets of which are deemed to be
          assets of any such "employee benefit plan" or "plan" by reason of the
          Department of Labor's plan asset regulation, 29 C.F.R. Section
          2510.3-101.

     25.42"Regulation T" shall mean Regulation T of the Board of Governors of
          the Federal Reserve System, as in effect from time to time.

     25.43"Retransfer", shall mean, with respect to any Collateral, to pledge,
          repledge, hypothecate, rehypothecate, lend, relend, sell or otherwise
          transfer such Collateral, or to re-register any such Collateral
          evidenced by physical certificates in any name other than Borrower's.

     25.44"Securities"  shall mean  securities  or, if agreed by the  parties in
          writing, other assets.

     25.45"Securities  Distributions" shall have the meaning assigned in Section
          8.5(a).

     25.46 "Tax" shall have the meaning assigned in Section 8.5(a).

     25.47 "UCC" shall mean the New York Uniform Commercial Code.

26.  Intent.

     26.1 The parties recognize that each Loan hereunder is a "securities
          contract," as such term is defined in Section 741 of Title 11 of the
          United States Code (the "Bankruptcy Code"), as amended (except insofar
          as the type of assets subject to the Loan would render such definition
          inapplicable).

     26.2 It is understood that each and every transfer of funds, securities and
          other property under this Agreement and each Loan hereunder is a
          "settlement payment" or a "margin payment," as such terms are used in
          Sections 362(b)(6) and 546(e) of the Bankruptcy Code.

     26.3 It is understood that the rights given to Borrower and Lender
          hereunder upon a Default by the other constitute the right to cause
          the liquidation of a securities contract and the right to set off
          mutual debts and claims in connection with a securities contract, as
          such terms are used in Sections 555 and 362(b)(6) of the Bankruptcy
          Code.

                                       18
<PAGE>

     26.4 The parties agree and acknowledge that if a party hereto is an
          "insured depository institution," as such term is defined in the
          Federal Deposit Insurance Act, as amended ("FDIA"), then each Loan
          hereunder is a "securities contract" and "qualified financial
          contract," as such terms are defined in the FDIA and any rules, orders
          or policy statements thereunder (except insofar as the type of assets
          subject to the Loan would render such definitions inapplicable).

     26.5 It is understood that this Agreement constitutes a "netting contract"
          as defined in and subject to Title IV of the Federal Deposit Insurance
          Corporation Improvement Act of 1991 ("FDICIA") and each payment
          obligation under any Loan hereunder shall constitute a "covered
          contractual payment entitlement" or "covered contractual payment
          obligation," respectively, as defined in and subject to FDICIA (except
          insofar as one or both of the parties is not a "financial institution"
          as that term is defined in FDICIA).

     26.6 Except to the extent required by applicable law or regulation or as
          otherwise agreed, Borrower and Lender agree that Loans hereunder shall
          in no event be "exchange contracts" for purposes of the rules of any
          securities exchange and that Loans hereunder shall not be governed by
          the buy-in or similar rules of any such exchange, registered national
          securities association or other self-regulatory organization.

27.  DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS.

     27.1 WITHOUT WAIVING ANY RIGHTS GIVEN TO LENDER HEREUNDER, IT IS UNDERSTOOD
          AND AGREED THAT THE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION
          ACT OF 1970 MAY NOT PROTECT LENDER WITH RESPECT TO LOANED SECURITIES
          HEREUNDER AND THAT, THEREFORE, THE COLLATERAL DELIVERED TO LENDER MAY
          CONSTITUTE THE ONLY SOURCE OF SATISFACTION OF BORROWERS OBLIGATIONS IN
          THE EVENT BORROWER FAILS TO RETURN THE LOANED SECURITIES.

     27.2 LENDER ACKNOWLEDGES THAT, IN CONNECTION WITH LOANS OF GOVERNMENT
          SECURITIES AND AS OTHERWISE PERMITTED BY APPLICABLE LAW, SOME
          SECURITIES PROVIDED BY BORROWER AS COLLATERAL UNDER THIS AGREEMENT MAY
          NOT BE GUARANTEED BY THE UNITED STATES.

JP MORGAN CHASE BANK

By:     /s/ Joseph Blanvlelt
Title:  Managing Director
Date:   March 18, 2002

THERMO ELECTRON CORPORATION

By:     /s/ Kenneth J. Apicerno
Title:  Treasurer
Date:   March 18, 2002

                                       19
<PAGE>

Annex II

Market Value

Unless otherwise agreed by Borrower and Lender:

1.   If the  principal  market  for the  Securities  to be valued is a  national
     securities  exchange  in the United  States,  their  Market  Value shall be
     determined  by their last sale price on such  exchange  at the most  recent
     Close of Trading or, if there was no sale on the  Business  Day of the most
     recent Close of Trading,  by the last sale price at the Close of Trading on
     the next preceding Business Day on which there was a sale on such exchange,
     all  as  quoted  on  the  Consolidated  Tape  or,  if  not  quoted  on  the
     Consolidated Tape, then as quoted by such exchange.

2.   If  the  principal   market  for  the   Securities  to  be  valued  is  the
     over-the-counter  market, and the Securities are quoted on The Nasdaq Stock
     Market  ("Nasdaq"),  their  Market  Value  shall be the last sale  price on
     Nasdaq at the most recent Close of Trading or, if the Securities are issues
     for which last sale prices are not quoted on Nasdaq,  the last bid price at
     such Close of  Trading.  If the  relevant  quotation  did not exist at such
     Close of Trading,  then the Market Value shall be the relevant quotation on
     the next preceding Close of Trading at which there was such a quotation.

3.   Except as provided in Section 4 of this Annex, if the principal  market for
     the  Securities  to be  valued  is the  over-the-counter  market,  and  the
     Securities are not quoted on Nasdaq, their Market Value shall be determined
     in accordance with market practice for such Securities,  based on the price
     for such Securities as of the most recent Close of Trading  obtained from a
     generally  recognized  source  agreed to by the  parties or the closing bid
     quotation at the most recent Close of Trading  obtained from such a source.
     If the relevant quotation did not exist at such Close of Trading,  then the
     Market Value shall be the relevant quotation on the next preceding Close of
     Trading at which there was such a quotation.

4.   If the Securities to be valued are Foreign Securities, their Market Value
     shall be determined as of the most recent Close of Trading in accordance
     with market practice in the principal market for such Securities.

5.   The Market Value of a letter of credit shall be the undrawn amount thereof.

6.   All determinations of Market Value under Sections 1 through 4 of this Annex
     shall include, where applicable, accrued interest to the extent not already
     included therein (other than any interest credited or transferred to, or
     applied to the obligations of, the other party pursuant to Section 8 of the
     Agreement), unless market practice with respect to the valuation of such
     Securities in connection with securities loans is to the contrary.

7.   The determinations of Market Value provided for in this Annex shall apply
     for all purposes under the Agreement, except for purposes of Section 13 of
     the Agreement.

JP MORGAN CHASE BANK

By:     /s/ Joseph Blanvlelt
Title:  Managing Director
Date:   March 18, 2002

THERMO ELECTRON CORPORATION

By:     /s/ Kenneth J. Apicerno
Title:  Treasurer
Date:   March 18, 2002

                                       20
<PAGE>

Annex III

Term Loans

This Annex sets forth additional terms and conditions governing Loans designated
as "Term Loans" in which Lender lends to Borrower a specific amount of Loaned
Securities ("Term Loan Amount") against a pledge of cash Collateral by Borrower
for an agreed upon Cash Collateral Fee until a scheduled termination date
("Termination Date"). Unless otherwise defined, capitalized terms used but not
defined in this Annex shall have the meanings assigned in the Securities Loan
Agreement of which it forms a part (such agreement, together with this Annex and
any other annexes, schedules or exhibits, referred to as the "Agreement").

I    . The terms of this Annex shall apply to Loans of Equity Securities only if
     they are designated as Term Loans in a Confirmation therefor provided
     pursuant to the Agreement and executed by each party, in a schedule to the
     Agreement or in this Annex. All Loans of Securities other than Equity
     Securities shall be "Term Loans" subject to this Annex, unless otherwise
     agreed in a Confirmation or other writing.

2.   The Confirmation for a Term Loan shall set forth, in addition to any terms
     required to be set forth therein under the Agreement, the Term Loan Amount,
     the Cash Collateral Fee and the Termination Date. Lender and Borrower agree
     that, except as specifically provided in this Annex, each Term Loan shall
     be subject to all terms and conditions of the Agreement, including, without
     limitation, any provisions regarding the parties' respective rights to
     terminate a Loan.

3.   In the event that either party  exercises  its right under the Agreement to
     terminate a Term Loan on a date (the "Early Termination Date") prior to the
     Termination Date, Lender and Borrower shall,  unless otherwise agreed,  use
     their  best  efforts  to  negotiate  in good  faith a new  Term  Loan  (the
     "Replacement  Loan") of  comparable  or other  Securities,  which  shall be
     mutually  agreed  upon by the  parties,  with a Market  Value  equal to the
     Market  Value of the Term Loan Amount under the  terminated  Term Loan (the
     "Terminated  Loan") as of the Early Termination Date. Such agreement shall,
     in  accordance  with  Section  2 of  this  Annex,  be  confirmed  in a  new
     Confirmation at the commencement of the Replacement Loan and be executed by
     each party. Each Replacement Loan shall be subject to the same terms as the
     corresponding  Terminated Loan, other than with respect to the commencement
     date and the identity of the Loaned Securities.  The Replacement Loan shall
     commence on the date on which the parties agree which  Securities  shall be
     the subject of the Replacement  Loan and shall be scheduled to terminate on
     the scheduled Termination Date of the Terminated Loan.

4.   Borrower and Lender agree that, except as provided in Section 5 of this
     Annex, if the parties enter into a Replacement Loan, the Collateral for the
     related Terminated Loan need not be returned to Borrower and shall instead
     serve as Collateral for such Replacement Loan.

5.   If the parties are unable to negotiate  and enter into a  Replacement  Loan
     for some or all of the Term Loan Amount on or before the Early  Termination
     Date, (a) the party requesting termination of the Terminated Loan shall pay
     to the other party a Breakage Fee computed in accordance  with Section 6 of
     this Annex with respect to that portion of the Term Loan Amount for which a
     Replacement  Loan is not entered into and (b) upon the transfer by Borrower
     to Lender of the Loaned  Securities  subject to the Terminated Loan, Lender
     shall transfer to Borrower Collateral for the Terminated Loan in accordance
     with and to the  extent  required  under the  Agreement,  provided  that no
     Default has occurred with respect to Borrower.

                                       21
<PAGE>

6.   For purposes of this Annex, the term "Breakage Fee" shall mean a fee agreed
     by  Borrower  and  Lender in the  Confirmation  or  otherwise  orally or in
     writing.  In the absence of any such  agreement,  the term  "Breakage  Fee"
     shall mean, with respect to Loans of Government Securities,  a fee equal to
     the sum of (a) the cost to the  non-terminating  party (including all fees,
     expenses and  commissions) of entering into  replacement  transactions  and
     entering into or terminating hedge  transactions in connection with or as a
     result of the  termination of the Terminated  Loan, and (b) any other loss,
     damage,  cost or expense directly arising or resulting from the termination
     of the Terminated Loan that is incurred by the non-terminating party (other
     than consequential losses or costs for lost profits or lost opportunities),
     as determined by the  non-terminating  party in a  commercially  reasonable
     manner,  and (c) any other amounts due and payable by the terminating party
     to the  non-terminating  party under the Agreement on the Early Termination
     Date.

JP MORGAN CHASE BANK

By:     /s/ Joseph Blanvlelt
Title:  Managing Director
Date:   March 18, 2002

THERMO ELECTRON CORPORATION

By:     /s/ Kenneth J. Apicerno
Title:  Treasurer
Date:   March 18, 2002

                                       22
<PAGE>

Schedule A

Names and Addresses for Communications

JPMorgan Chase Bank Contacts:

Names and Address for Communications

     JP Morgan Chase Bank
     270 Park Avenue
     New York, New York  10017

     Fixed Income
     Attn:        Joseph P. Blauvelt
     Tel:(212) 834-4767
     Fax:(212) 834-6530 / 6531

     Equities
     Attn:        Michael Cardaci
     Tel:(212) 622-2719
     Fax:(212) 622-0076

     High Yield Corporates
     Attn:      Daniel Cullinan
     Tel:       (212) 270-8780
     Fax:       (212) 270-5320

Confirmations:

     JP Morgan Chase Bank
     P&S Department
     Harborside Financial Center
     34 Exchange Place, 4th floor
     Jersey City, New Jersey  07311

Client Contacts:
        Primary: Jeff Botte
        Phone: (781) 622-1271
        Fax: (781) 622-1236
        Email: jbotte@thermo.com

        Secondary: Kenneth J. Apicerno
        Phone: (781) 622-1294
        Fax: (781) 622-1181
        Email: kapicerno@thermo.com

Confirmations:

        Thermo Electron Corporation
        81 Wyman Street
        Waltham, MA 02454
        Attn: Jeff Botte

                                       23
<PAGE>

Schedule B

Defined Terms and Supplemental Provisions

     Fees for Loan.

     The following sentence shall be added at the end of Section 5.1: "If
     Borrower transfers Collateral to Lender the Business Day prior to the
     transfer of the Loaned Securities to Borrower, Lender agrees to pay
     Borrower a Cash Collateral Fee from and including the day of the transfer
     of Collateral to but excluding the day of the transfer of the Loaned
     Securities at a rate determined by Lender and Borrower at time of such
     Loan."

     Amendment to Section 6.

     Section 6 is hereby amended by deleting the period at end of sentence of
     Section 6.2 and replacing it with "; and provided further, that Lender is
     entitled to return of the Loaned Securities from Borrower only against
     delivery of the Collateral to Borrower."

     Additional Events of Default.

     In addition to the events enumerated in Section 12 of the Agreement:

     (a)  The occurrence of any one or more of the following events shall
          constitute a Default under the Agreement and entitle the
          non-defaulting party to exercise the termination rights under Section
          12 of the Agreement:

          (i)  if either party shall have been suspended or expelled from
               membership or participation in any national securities exchange,
               registered national securities association or registered clearing
               agency of which it is a member or any other self-regulatory
               organization to whose rules it is subject or if it is suspended
               from dealing in securities by any federal or state government
               agency thereof; or

          (ii) if either party shall have its license, charter, or other
               authorization necessary to conduct a material portion of its
               business withdrawn, suspended or revoked by any applicable
               federal or sate government or agency thereof.

     (b)  The occurrence of any one or more of the following events with respect
          to an individual Loan (if so agreed in a Confirmation for such Loan
          that is executed by each party) or with respect to a class of Loans
          (if so agreed by the parties in writing in this Schedule B or
          otherwise) shall constitute a Default under the Agreement and entitle
          the non-defaulting party to exercise the termination rights under
          Section 12 of the Agreement:

          (i)  if Loaned Securities shall not, in accordance with Section 3.1 of
               the Agreement, be transferred to Borrower against the transfer of
               Collateral on or before the Cutoff Time on the date agreed to by
               Borrower and Lender for the commencement of such Loan or Loans;
               or

          (ii) if Collateral shall not, in accordance with Section 4.1 of the
               Agreement, be transferred to Lender against the transfer of
               Loaned Securities on or before the Cutoff Time on the date agreed
               to by Borrower and Lender for the commencement of such Loan or
               Loans.

     Unless otherwise agreed, all Loans of Loaned Securities consisting of
     Securities other than Equity Securities shall be subject to this paragraph
     (b).

                                       24
<PAGE>

     Additional Remedies.

     In addition to any other remedies to which a non-defaulting party may be
     entitled under the Agreement, the defaulting party shall, with respect to
     an individual Loan (if so agreed in a Confirmation for such Loan that is
     executed by each party) or with respect to a class of Loans (if so agreed
     by the parties in writing in this Schedule B or otherwise), be liable to
     the non-defaulting party for (a) the amount of all reasonable legal or
     other expenses incurred by the non-defaulting party in connection with or
     as a result of a Default, (b) damages in an amount equal to the cost
     (including all fees, expenses and commissions) of entering into replacement
     transactions and entering into or terminating hedge transactions in
     connection with or as a result of a Default, and (c) any other loss,
     damages, cost or expense directly arising or resulting from the occurrence
     of a Default in respect of a Loan.

     Unless otherwise agreed, all Loans of Loaned Securities consisting of
     Securities other than Equity Securities shall be subject to this Section.

     Section 17 Shall Not Apply.

     Lender agrees that Section 17 is not applicable to the Loaned Securities
     under this Agreement.

     Standard Settlement Date for Foreign Securities.

     Notwithstanding Section 6.1(a)(ii) of the Agreement, Borrower and Lender
     agree that the standard settlement date that would apply to a purchase or
     sale of Foreign Securities for purposes of the termination provisions of
     Section 6 of the Agreement shall be the standard settlement date that would
     apply to a purchase or sale of such Foreign Securities entered into at the
     time of a termination notice in the principal market for such Foreign
     Securities.

     Margin Percentage.

     Notwithstanding the definition of "Margin Percentage" contained in Section
     25.37, the Margin Percentage shall be 95% or as otherwise agreed to between
     Lender and Borrower at the commencement of a Loan.

     Trading Practices.

     Each party shall observe, and the Agreement and each Loan thereunder is
     subject to, including with regard to (a) the allocation of economic
     benefits in respect of Loaned Securities and Collateral and (b) buy-in
     procedures in the case of failures to receive Loaned Securities or
     Collateral, any uniform practices applicable to securities loans among
     members of The Bond Market Association and the Securities Industry
     Association (the "Associations"), as currently in effect, or successor
     provisions thereto (the "Uniform Practices"), regardless of whether each
     party is a member of one of the Associations, to the extent that such
     market practice (including the Uniform Practices) does not conflict with
     the terms of the Agreement. Notwithstanding the preceding sentence, a party
     shall not waive its right to exercise its option to terminate all Loans
     under Section 12 of the Agreement by observing the buy-in procedures
     described in clause (b) of the preceding sentence.

     No Reliance.

     In addition to the representations and warranties set forth in Section 10
     of the Agreement, each party hereby makes the following representations and
     warranties in connection with the Agreement and each Loan thereunder, which
     shall continue during the term of any such Loan:

     (a)  unless there is a written agreement with the other party to the
          contrary, it is not relying on any advice (whether written or oral) of
          the other party, other than the representations expressly set out in
          the Agreement;

                                       25
<PAGE>

     (b)  it has made and will make its own decisions regarding the entering
          into of any Loan based upon its own judgment and upon advice from such
          professional advisers as it has deemed it necessary to consult; and

     (c)  it understands the terms, conditions and risks of each Loan and is
          willing to assume(financial and otherwise) those risks.

     Cutoff Times.

     For the purpose of the transfer of cash or securities hereunder, Borrower
     agrees that Lender shall be deemed a "dealer" for purposes of determining
     the relevant cutoff deadlines with any Clearing Organization, provided
     however, Lender is not required to accept a return for Loaned Securities
     from Borrower if the securities are not received within the time permitted
     for dealers to make such transfers. If Borrower refuses to accept a
     transfer for loaned Securities from Lender within the time permitted for
     dealers to make such transfer, Borrower shall not be entitled to receive a
     Cash Collateral held by Lender until Borrower accepts such transfer.

     Cross Default.

     Each party to any Loan under the Agreement (such party, "Party X") agrees
     that, upon an Act of Insolvency in respect of Party X or the default of
     Party X under any transaction (including, without limitation, any interest
     rate, currency or other swap transaction or any master agreement intended
     to document the same, whether or not there are any existing transactions
     thereunder) with the other party (such other party, and any of any
     affiliates of JPMorgan Chase Bank, the "Non-Defaulting Party"), the
     Non-Defaulting Party may, (a) reduce any amounts due and owing to Party X
     under any transaction between Party X and the Non-Defaulting Party by
     setting off against such amounts any amounts due and owing to the
     Non-Defaulting Party by Party X, and (b) treat any amounts or deliveries
     due and owing to Party X under any transactions between Party X and the
     Non-Defaulting Party, as security given by Party X to the Non-Defaulting
     Party for its obligations under all transactions between Party X and the
     Non-Defaulting Party. In furtherance of the preceding sentence, each party
     hereby grants to the other party a continuing first and senior security
     interest or entitlement, and fixed charge or lien on all such cash and
     securities.

JP MORGAN CHASE BANK

By:     /s/ Joseph Blanvlelt
Title:  Managing Director
Date:   March 18, 2002

THERMO ELECTRON CORPORATION

By:     /s/ Kenneth J. Apicerno
Title:  Treasurer
Date:   March 18, 2002

                                       26
<PAGE>

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