<SUBMISSION>
<ACCESSION-NUMBER>0000950117-05-004185
<TYPE>10-K/A
<PUBLIC-DOCUMENT-COUNT>22
<PERIOD>20041231
<FILING-DATE>20051104
<DATE-OF-FILING-DATE-CHANGE>20051104
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CORRECTIONAL SERVICES CORP
<CIK>0000914670
<ASSIGNED-SIC>8744
<IRS-NUMBER>113182580
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-K/A
<ACT>34
<FILE-NUMBER>000-23038
<FILM-NUMBER>051178531
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1819 MAIN STREET SUITE 1000
<CITY>SARASOTA
<STATE>FL
<ZIP>34236
<PHONE>9419539199
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1819 MAIN STREET SUITE 1000
<STREET2>CORRECTIONAL SERVICES CORP
<CITY>SARASOTA
<STATE>FL
<ZIP>34236
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ESMOR CORRECTIONAL SERVICES INC
<DATE-CHANGED>19931110
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-K/A
<SEQUENCE>1
<FILENAME>a40141.htm
<DESCRIPTION>CORRECTIONAL SERVICES CORPORATION
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>




<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>UNITED STATES </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>SECURITIES AND EXCHANGE COMMISSION </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, DC 20549 </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<HR size=1 width="17%" noshade color=black align=center>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>FORM 10-K/A</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=3>Amendment No. 2</font></b></p>



<HR size=1 width="17%" noshade color=black align=center>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="4%" valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>x</font></p> </td>
        <td width="599" valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></b><font size=2> </font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:5.23%;text-align:left;'><b><font size=2>For the Fiscal Year Ended December 31, 2004 </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:5.23%;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OR </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="4%" valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font face=Wingdings>o</font></b></p> </td>

    <td width="599" valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size="2"><b>TRANSITION
        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE<br>
ACT OF 1934</b></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="52%" style='border-collapse:collapse'>
  <tr >
    <td width="10%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td valign=top nowrap style='padding:0pt 0pt 0pt 0pt; '> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For
        the transition period from______to______</font></b><b><font size=2>.</font></b></p>
      </td>
  </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:5.23%;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Commission File No.: 0-23038 </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'></p>
<HR size=1 width="17%" noshade color=black align=center>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=5>CORRECTIONAL SERVICES CORPORATION </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=1>(Exact name of registrant as specified in its charter) </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'></p>
<HR size=1 width="17%" noshade color=black align=center>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 >
  <tr >

    <td width="40%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td width="20%" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td width="40%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>DELAWARE</font></B></p> </td>

    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>11-3182580</font></b></p> </td> </tr>
    <tr >

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(State or other jurisdiction of</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.65pt'><b><font size=1>incorporation or organization)</font></b></p> </td>

    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(I.R.S. Employer</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.65pt'><b><font size=1>Identification No.)</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;<br>
  </font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 >
  <tr >

    <td width="40%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td width="20%" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td width="40%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>1819 Main Street, Sarasota, Florida</font></b></p> </td>

    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>34236</font></b></p> </td> </tr>
    <tr >

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(Address of principal executive office)</font></b></p> </td>

    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(Zip Code)</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Registrant&#146;s telephone number, including area code: (941) 953-9199 </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'></p>
<HR size=1 width="17%" noshade color=black align=center>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Securities registered pursuant to Section 12(b) of the Act: </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>None </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Securities
  registered pursuant to Section 12(g) of the Act: </font></b></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="40%">
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Title
        of each class</font></b></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="102" style='padding:0pt 0pt 0pt 0pt'></td>
    <td width="20%">&nbsp;</td>
    <td width="40%">
      <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Name
        of each exchange on which registered</font></b></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="245" style='padding:0pt 0pt 0pt 0pt'></td>
  </tr>
  <tr>
    <td><div align="center"><b><font size=2>Common Stock, par value $.01 per share</font></b></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"><b><font size=2>Nasdaq National Market</font></b></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size="2"></font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</font><font face=Wingdings>x</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</font><font face=Wingdings>o</font><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant&#146;s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.&nbsp;&nbsp;</font><font face=Wingdings>x</font><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Indicate by check mark whether the registrant is an accelerated filer. (as defined by Exchange Act Rule 12b-2).&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</font><font face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;</font><font face=Wingdings>x</font><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>At June 30, 2004, the aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was $24,538,000. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>At March 15, 2005, there were 10,166,940 outstanding shares of the Common Stock of the Registrant. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<U><B><font SIZE=2>TABLE OF CONTENTS</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-right:24pt;text-align:right;'><font size=1></font><u><b><font size=2>Page</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>PART IV</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="99%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="88%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><a href="#item15">Item
        15. Exhibits and Financial Statement Schedules</a></font></p> </td>
        <td width="4%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="99%" style='border-collapse:collapse'>
    <tr >
        <td width="95%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2><a href="#sigs">SIGNATURES</a></font></p> </td>
        <td width="4%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font SIZE=2><a href="#index">INDEX TO EXHIBITS</a></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>EXPLANATORY NOTE</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:8.77%;text-align:justify;'><font size=2>This Amendment No. 2 to the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 31, 2005, as amended by Amendment No. 1 on Form 10-K/A filed on May 2, 2005, is being filed solely for the purposes of filing certain exhibits that were inadvertently omitted from such prior filings.  We have made no further changes to the previously filed Form 10-K and Form 10-K/A.  Other than as set forth below, the items of the Form 10-K and Form 10-K/A, as previously filed, continue to speak as of the date of the original filings thereof, and we are not updating the disclosure of such items.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PART IV</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2><a name="item15"></a>Item
  15. Exhibits and Financial Statement Schedules.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="91%" style='margin-left:8.77%;border-collapse:collapse'>
  <tr >
    <td width="6%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>(a)</font></b></p></td>
    <td width="94%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>The
        following documents are filed as part of this report:</font></b></p></td>
  </tr>
  <tr >
    <td nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>&nbsp;</td>
    <td nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>&nbsp;</td>
  </tr>
  <tr >
    <td nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>&nbsp;</td>
    <td nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '><b><font size=2>(3)
      Exhibits.</font></b><font size=2> The exhibits listed in the accompanying
      Index to Exhibits is filed as part of this amendment to the Annual Report.</font></td>
  </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:16.62%;text-align:left;'><b><font size=2>
  </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align="center"><font size=2>- 1 -</font> </div>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'> <B><font SIZE=2><a name="sigs"></a>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Amendment No. 2 to this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 >
  <tr >
    <td width="58%" style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td width="2%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td width="1%" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td width="39%" style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;</p></td>
    <td  colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt'><font SIZE=2>CORRECTIONAL
      SERVICES CORPORATION</font></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>&nbsp;</p></td>
    <td  colspan="3" valign=top style='padding:0pt 0pt 0pt 0pt'><font size=2>Registrant</font></td>
  </tr>
  <tr style='height:12.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:12.0pt'>&nbsp;</td>
    <td style='padding:0pt 0pt 0pt 0pt;height:12.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:12.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        James F. Slattery</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="96%" noshade color=black align=left> </td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>James
        F. Slattery, President</font></p></td>
  </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Dated: November 3, 2005 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<table width="100%" border="0" cellpadding=0 cellspacing=0 >
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Signature</font></b></p>
      <HR size=1 width="35" align=left > </td>
    <td width="15%" valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td style='padding:0pt 0pt 0pt 0pt'><p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Title</font></b></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="18" style='padding:0pt 0pt 0pt 0pt'></td>
    <td width="12%" valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td style='padding:0pt 0pt 0pt 0pt'><p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Date</font></b></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="16" style='padding:0pt 0pt 0pt 0pt'></td>
  </tr>
  <tr >
    <td width="30%" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        James F. Slattery</font>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>James
        F. Slattery</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td width="30%" style='padding:0pt 0pt 0pt 0pt'><font size=2>President and
      Chief Executive Officer <br>
      (Principal Executive Officer), Director</font></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td width="13%" style='padding:0pt 0pt 0pt 0pt'><font size=2>November&nbsp;3,&nbsp;2005</font></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
    <td style='padding:0pt 0pt 0pt 0pt'>&nbsp;</td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Bernard A. Wagner</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Bernard
        A. Wagner</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior
        Vice President and Chief Financial Officer
        (Principal Financial Officer)</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Aaron Speisman</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Aaron
        Speisman</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Executive
        Vice President and Director</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Stuart Gerson</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Stuart
        Gerson</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chairman
        of the Board</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Chet Borgida</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Chet
        Borgida</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Director</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        John H. Shuey</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>John
        H. Shuey</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Director</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Bobbie L. Huskey</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Bobbie
        L. Huskey</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Director</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
  <tr style='height:6.0pt'>
    <td style='padding:0pt 0pt 0pt 0pt;height:6.0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td  colspan="2" style='padding:0pt 0pt 0pt 0pt; height:6.0pt'> <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
  </tr>
  <tr >
    <td valign=top style='padding:0pt 0pt 0pt 0pt'> <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/
        Melvin T. Stith</font></p>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
      <HR size=1 width="86%" noshade color=black align=left> <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Melvin
        T. Stith</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Director</font></p></td>
    <td valign=bottom style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p></td>
    <td style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>November
        3, 2005</font></p></td>
  </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align="center"><font size=2>- 2 -</font> </div>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>CORRECTIONAL SERVICES CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2><a name="index"></a>INDEX
  TO EXHIBITS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Item 15(a)(3)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
  <tr >

    <td width="13%" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit
        Number</font></u></p> </td>

    <td nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.76</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Employment Agreement, dated April 1, 2004, by and between the Company and Woodrow Harper</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.77</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Employment Agreement, dated April 24, 2004, by and between the Company and Robert Matthews </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.78</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Employment Agreement, dated March 5, 2003, by and between the Company and Jesse Williams</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.79</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Amendment No. 3 to the Loan and Security Agreement, originally dated as of October 30, 2002, by and among the Company, CSC Management De Puerto Rico Inc., Youth Services International Holdings, Inc., Youth Services International Real Property Partnership, LLP, Youth Services International, Inc., Youth Services International of Northern Iowa, Inc., Youth Services International of South Dakota, Inc., Youth Services International of Missouri, Inc., Youth Services International of Texas, Inc., Youth Services International of Illinois, Inc., Youth Services International of Michigan, Inc.  and General Electric Capital Corporation, dated as of November 2004</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.80</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Amendment No. 4 to the Loan and Security Agreement, originally dated as of October 30, 2002, by and among the Company, CSC Management De Puerto Rico Inc., Youth Services International Holdings, Inc., Youth Services International Real Property Partnership, LLP, Youth Services International, Inc., Youth Services International of Northern Iowa, Inc., Youth Services International of South Dakota, Inc., Youth Services International of Missouri, Inc., Youth Services International of Texas, Inc., Youth Services International of Illinois, Inc., Youth Services International of Michigan, Inc.  and General Electric Capital Corporation, dated as of December 31, 2004</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.81</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Amendment No. 1 to Lease Agreement, originally dated as of January 1, 1994, by and between Myrtle Avenue Family Center, Inc. and the Company, dated December 31, 2003</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.82</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>First Amendment to Lease, originally dated as of October 1, 1996, by and between Creston Central LLC (successor to Creston Realty Associates L.P.), dated as of October 1, 2001</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.83</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Indenture of Trust, dated as of June 1, 2003, between Washington Economic Development Finance Authority and U.S. Bank National Associate, as Trustee, relating to CSC of Tacoma LLC Detention Facility Project</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.84</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Loan Agreement, dated as of June 1, 2003, between Washington Economic Development Finance Authority and CSC Of Tacoma LLC, relating to CSC of Tacoma LLC Project</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.85</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lease Agreement, entered into as of February 28, 2003, by and between Claude J. Yow and Frances M. Yow and the Company d/b/a Youth Services International</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.86</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lease Agreement, dated as of November 26, 1997, between Frio County and the Company</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.87</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>First Amendment to Lease Agreement, originally dated as of November 26, 1997, between Frio County and the Company, effective January 1, 2001</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<br>
<HR noshade align="center" width="100%" size="2">
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.88</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Second Amendment to Lease Agreement, originally dated as of November 26, 1997, between Frio County and the Company, effective February 22, 2001</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.89</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Management Agreement, dated as of July 31, 2002, between Phoenix West Prison L.L.C. and the Company</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.90</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Management Agreement, dated as of December 1, 2002, between Florence West Prison L.L.C. and the Company</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.91</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Commercial-Industrial Lease Agreement, dated as of May 16, 1994, between Region Enterprises, Inc. and Esmor Fort Worth, Inc.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.92</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lease Extension Agreement, dated December 14, 1999, between Region Enterprises, Inc. and Esmor Fort Worth, Inc.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.93</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Lease Extension Agreement, dated December 15, 1999, between Region Enterprises, Inc. and Esmor Fort Worth, Inc.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

    <td width="13%" valign=top style='padding:0pt 0pt 0pt 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>10.94</font></p> </td>
        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Use Agreement, dated as of June 30, 2003, between CSC of Tacoma LLC and the Company</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:23.08%; text-indent:-23.08%;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>



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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>ex10-76.htm
<DESCRIPTION>EXHIBIT 10.76
<TEXT>
<HTML>
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<TITLE></TITLE>
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<BODY>
<P align=right><FONT face="Arial" size=2><b>Exhibit 10.76</b></FONT></P>

<P align=center><FONT face="Arial" size=2><U>EMPLOYMENT AGREEMENT</U></FONT></P>
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<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Arial" size=2>THIS AGREEMENT is made on the 1st day of April, 2004, by and between CORRECTIONAL SERVICES CORPORATION
(hereinafter referred to as &#147;CSC&#148; or &#147;Employer&#148;) and WOODROW HARPER (hereinafter
referred to as &#147;Employee&#148;).</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
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<TR>
<TD colspan="3" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U></U></FONT><font face="Arial" size=2><u>EMPLOYMENT</u>:</font></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR></TABLE>
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<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>Employer hereby employs Employee and Employee hereby accepts employment upon the terms and conditions hereinafter set forth.</font></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U></U></FONT><FONT face="Arial" size=2><U>TERM</U>:</FONT></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><FONT face="Arial" size=2>This Agreement shall remain in full force and effect for a term of two years, expiring on March 31,
2006.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>DUTIES</U>:</FONT></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2>Employer hereby employs Employee as Executive Vice President, his powers and duties in that capacity
to be such as may be determined by the Employer. During the period of this Agreement, Employee shall
also provide assistance to the Employer in other correctional related matters as may be determined
by the Employer.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT></TD>
  <TD vAlign=top><font face="Arial" size=2><u>COMPENSATION</u>:</font></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=83>&nbsp;</TD>
<TD vAlign=top><FONT face="Arial" size=2>Employer agrees to pay Employee during the term of this Agreement:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>

<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="83">&nbsp;</td>
    <td width="48"><font face="Arial" size=2>A.</font></td>
    <td><font face="Arial" size=2>$200,000 per year salary;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="Arial" size=2>B.</font></td>
    <td><font face="Arial" size=2>a housing and automobile allowance of $1,500 per month;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="83">&nbsp;</td>
    <td width="48"><font face="Arial" size=2>C.</font></td>
    <td width="17"><font face="Wingdings" size=2>&#159;</font></td>
    <td><font face="Arial" size=2>a bonus of $25,000 for each <i>new</i> <i>contract<sup>1</sup> </i>awarded and signed by CSC for which you were directly involved and that has a bed</font></td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr align="left" width="200" size="1" color="black"></td>
  </tr>
  <tr>
    <td><p><font face="Arial" size=2><sup>1</sup> &nbsp;<i>New contract is defined as new business for the Company and does not include renewals or extensions of existing contracts.</i></font></p>
    </td>
  </tr>
</table>
<P><FONT face="Arial" size=2> </FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=148>&nbsp;</TD>
<TD vAlign=top><FONT face="Arial" size=2>capacity between 30 to 50 beds;</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=131 vAlign=top></TD>
<TD width=17 vAlign=top><font face="Wingdings" size=2>&#159;</font><FONT face="Arial" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Arial" size=2>a bonus of $50,000 for each new contract awarded and signed by CSC for which you were directly involved and that has a bed
  capacity between 51 to 75 beds;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><font face="Wingdings" size=2>&#159;</font><FONT face="Arial" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Arial" size=2>a bonus of $75,000 for each new contract awarded and signed by CSC for which you were directly involved and that has a bed
  capacity over 75 beds;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=131>&nbsp;</TD>
<TD vAlign=top><FONT face="Arial" size=2><U>NOTE</U>: 50% of each bonus will be paid when a project comes on line and reaches 50% occupancy. The remaining
50% of the bonus will be paid after the first month in which the project occupancy averages 80%.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="83">&nbsp;</td>
    <TD vAlign=top width=48><FONT face="Arial" size=2>D.</FONT></TD>
    <TD vAlign=top><FONT face="Arial" size=2>other bonuses, payable from time to time in such amounts as may be determined by the Employer;</FONT></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <TD vAlign=top><font face="Arial" size=2>E.</font></TD>
    <TD vAlign=top><font face="Arial" size=2>CSC executive level insurance; and</font></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <TD vAlign=top><FONT face="Arial" size=2>F.</FONT></TD>
    <TD vAlign=top><FONT face="Arial" size=2>additional compensation and other fringe benefits as are deemed appropriate by the Employer.</FONT></TD>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="95" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U></U></FONT><FONT face="Arial" size=2><U>VACATION</U>:</FONT></TD>
</TR></TABLE>
<P><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>Employee shall be entitled to a vacation of three (3) weeks during each yearly period.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U></U></FONT><FONT face="Arial" size=2><U>TERMINATION OF EMPLOYEE FOR CAUSE</U>:</FONT></TD>
</TR></TABLE>
<P><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>Employee&#146;s employment shall only be terminated for good cause. Good cause is defined as the happening
of any of the following events:</FONT></P>
<P align=center><FONT face="Arial" size=2>2</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=95>&nbsp;</TD>
<TD width="48" vAlign=top><FONT face="Arial" size=2>A.</FONT></TD>
<TD vAlign=top><font face="Arial" size=2><u>Criminal Conviction</u>.</font></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Arial" size=2>In the event Employee shall be convicted of a felony.</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="144" colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=95>&nbsp;</TD>
<TD width="48" vAlign=top><FONT face="Arial" size=2>B.</FONT></TD>
<TD vAlign=top><font face="Arial" size=2><u>Dereliction of Duty</u>.</font></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Arial" size=2>If Employee either intentionally ignores his duties or is grossly negligent in their performance.</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="144" colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=95>&nbsp;</TD>
<TD width="48" vAlign=top><FONT face="Arial" size=2>C.</FONT></TD>
<TD vAlign=top><font face="Arial" size=2><u>Material Breach of Contract.</u></font></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Arial" size=2>In the event Employee materially breaches the contract.</FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=95>&nbsp;</TD>
<TD width="48" vAlign=top><FONT face="Arial" size=2>D.</FONT></TD>
<TD vAlign=top><font face="Arial" size=2><u>Total Incapacity</u>.</font></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Arial" size=2>If Employee is unable to work for a period of ninety (90) days within a three hundred sixty (360) day period.</FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>TERMINATION NOTICE</U>:</FONT></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><FONT face="Arial" size=2>If Employee is to be terminated for any reason under paragraph 6.B. or 6.C., Employee shall be given
ten (10) days written notice by Employer of intent to terminate setting forth the specific grounds
and reasons for termination and giving to Employee a fifteen (15) day opportunity to cure. Such notice
shall specify with reasonable particularity the nature and extent of the intentional or negligent
conduct, or material breach or default complained of.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>SEVERANCE PAY</U>:</FONT></TD>
</TR></TABLE>
<P><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2></font><FONT face="Arial" size=2>If Employee&#146;s employment is terminated by Employer within Employee&#146;s term of employment for
any reason other than those set forth in Section 6, Employer must pay Employee, in addition to whatever
damages or remedies Employee may be entitled to, at law or in equity, the remainder of monies due
as set forth in Section 4.A, plus six (6) months pay, to be paid in six (6) equal monthly payments.</FONT></P>
<P align=center><FONT face="Arial" size=2>3</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>NON-COMPETITION COVENANT:</U></FONT></TD>
</TR></TABLE>
<P><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</FONT><FONT face="Arial" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the period of your employment
with CSC, and for a period of one (1) year thereafter, you will not, directly or indirectly, on your own behalf or as an
employee, partner, officer, director, trustee, agent, consultant or member of any person,
firm or corporation, or otherwise, render any service to, or engage in any business or
activity with any not for profit or for profit corporation or entity who conducts business
similar in nature to CSC/YSI within the United States and the Commonwealth of Puerto
Rico without prior written approval. During the period of your employment and until two
years after the termination of your employment, you will not, directly or indirectly, on
your own behalf or as a partner, shareholder, officer, employee, director, trustee, agent,
consultant or member of any person, firm or corporation or otherwise, employ, seek to
employ or otherwise obtain or seek the services of any employee of CSC or any of its
affiliates.</FONT></P>
<P><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</FONT><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During and following the
period of your employment with CSC, you will not use for your own benefit or for the benefit of others, or divulge to others, any
information, trade secrets, knowledge or data of secret or confidential nature and
otherwise not available to members of the general public that concerns the business or
affairs of CSC or its affiliates and which was acquired by you at any time prior to or
during the term of your employment with CSC, except with the specific prior written
consent of CSC.</FONT></P>
<P><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</FONT><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>C. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any covenant or agreement
contained in this paragraph 9 is found by a court having jurisdiction to be unreasonable in duration, geographical scope
or&nbsp;character of restriction, the covenant or agreement will not be rendered</FONT></P>
<P align=center><FONT face="Arial" size=2>4</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>unenforceable thereby but rather the duration, geographical scope or character of restriction of such
covenant or agreement will be reduced or modified with retroactive effect to make such covenant or
agreement reasonable, and such covenant or agreement will be enforced as so modified.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>NON-VIOLATION COVENANT:</U></FONT></TD>
</TR></TABLE>
<P align=left><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2></font><FONT face="Arial" size=2>You hereby represent and warrant to CSC that (i) the execution, delivery and full performance of this
Agreement by you does not and will not conflict with, breach, violate or cause a default under any
agreement, contract or instrument to which you are a party or any judgment, order or decree to which
you are subject; (ii) you are not a party or bound by any employment agreement, consulting agreement,
agreement not to compete, confidentiality agreement or similar agreement with any other person or
entity; and (iii) upon the execution and delivery of this Agreement by CSC, this Agreement will be
your valid and binding obligation, enforceable in accordance with its terms.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. </FONT><font face="Arial" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U></U><u></u></font><FONT face="Arial" size=2><U>NO AMENDMENTS</U>:</FONT></TD>
</TR></TABLE>
<P align=left><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2></font><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>This Agreement may be amended only by an instrument in writing executed by duly authorized representative
of both parties.</FONT></P>
<P align=center><FONT face="Arial" size=2>(this portion intentionally left blank)</FONT></P>
<P align=center><FONT face="Arial" size=2>5</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>CHOICE OF LAW</u>:</FONT></TD>
</TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;</font><FONT face="Arial" size=2>&nbsp;</FONT><FONT face="Arial" size=2>This Agreement shall be governed by the laws of the State of Florida. Any action must be brought in
a court of competent jurisdiction for Sarasota County, Florida.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><font size="2" face="Arial">CORRECTIONAL SERVICES CORPORATION <br>
    Employer</font></td>
    <td><font size="2" face="Arial">WOODROW HARPER<br>
    Employee</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial">By: <u>&nbsp;&nbsp;&nbsp;/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    <td><font size="2" face="Arial">By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      Woodrow Harper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial">Title:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRESIDENT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    <td><font size="2" face="Arial">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;
      Government Relations &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial">Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4/28/04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    <td><font size="2" face="Arial">Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4/28/04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
</table>
<P align=center><FONT face="Arial" size=2>6</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10-77.htm
<DESCRIPTION>EXHIBIT 10.77
<TEXT>
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<TITLE></TITLE>
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<P align=right><FONT face="Arial" size=2><b>Exhibit 10.77</b></FONT></P>



<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top><div align="center"><font face="Arial" size=2><U>EMPLOYMENT AGREEMENT</U></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>THIS AGREEMENT is made on the 24<SUP>th</SUP> day of April 2004, by and between CORRECTIONAL SERVICES CORPORATION (hereinafter referred to as &#147;Employer&#148;)
and ROBERT MATTHEWS (hereinafter referred to as &#147;Employee&#148;).</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>EMPLOYMENT</U>:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>Employer hereby employs Employee and Employee hereby accepts employment upon the terms and conditions
hereinafter set forth.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>TERM</U>:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>This Agreement shall remain in full force and effect for a term of two (2) years from April 24, 2004
to April 23, 2006.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>DUTIES</U>:</FONT></TD>
</TR></TABLE>
<P align=left><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>Employer hereby employs Employee as Senior Vice President, his powers and duties in that capacity to
be such as may be determined by the Employer. During the period of this Agreement, Employee shall
also provide assistance to the Employer in other correctional related matters as may be determined
by the Employer.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>COMPENSATION</U>:</FONT></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width="100%" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>Employer agrees to pay Employee during the term of this Agreement:</FONT></TD>
</TR>
</TABLE>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right"><font face="Arial" size=2>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td colspan="2"><font face="Arial" size=2>$182,000 per year salary;</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><font face="Arial" size=2>B.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td colspan="2"><font face="Arial" size=2>a housing and automobile allowance of $1,500 per month;</FONT></td>
  </tr>
  <tr>
    <td width="145">&nbsp;</td>
    <td colspan="2"><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
  </tr>
  <tr>
    <td align="right" valign="top"><font face="Arial" size=2>C.</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="28" valign="top"><font face="Arial" size=2><font face="Wingdings">&#159;</font></font></td>
    <td valign="top"><font face="Arial" size=2>a bonus of $25,000 for each new project you bring to the Company that has a bed capacity of up to 45 beds;</font></td>
  </tr>
</table>
<P align=center>&nbsp;</P>
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<PAGE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=145 vAlign=top></TD>
<TD width=28 vAlign=top><font face="Arial" size=2><font face="Wingdings">&#159;</font></font></TD>
<TD vAlign=top><font face="Arial" size=2>a bonus of $50,000 for each new project you bring to the Company that has a bed capacity of 46 to 75 beds;</font></TD>
</TR>
<TR>
<TD colspan="3" vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD width="25" vAlign=top><font face="Arial" size=2><font face="Wingdings">&#159;</font></font></TD>
<TD vAlign=top><font face="Arial" size=2>a bonus of $75,000 for each new project you bring to the&nbsp;Company that has a bed capacity of 75 to 999 beds;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD colspan="2" vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD width="25" vAlign=top><font face="Arial" size=2><font face="Wingdings">&#159;</font></font></TD>
  <TD vAlign=top><font face="Arial" size=2>a bonus of $100,000 for each new project you bring to the Company that has a bed capacity of 1,000 beds or greater;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp; </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
  </TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top><font face="Arial" size=2><U>Note</U>:&nbsp;50% of each bonus will be paid when a project comes on line and reaches 50% occupancy. The remaining 50% of the bonus will be paid after the first month in which the project occupancy averages 90%.</FONT></TD>
  </TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
  </TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD colspan="2" vAlign=top></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.</FONT></TD>
  <TD vAlign=top><font face="Arial" size=2>with regard to the Northwest Detention Center in Tacoma (the &#147;Facility&#148;), which is not part of the above bonus structure, a bonus of $37,500 will be granted to Employee when Facility occupancy reaches 65%. An additional bonus of $37,500 will be paid after the first month in which the Facility occupancy averages 90%;</FONT></TD>
</TR>
<TR>
  <TD width="96" vAlign=top></TD>
  <TD width="48" vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. </font></TD>
<TD vAlign=top><font face="Arial" size=2>CSC executive level insurance; and</font></TD></TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="96" vAlign=top></TD>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.</FONT></TD>
<TD vAlign=top><font face="Arial" size=2>additional compensation and other fringe benefits as are deemed appropriate by the Employer.
</FONT></TD>
</TR>
<TR>
<TD width="96" vAlign=top></TD>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>VACATION</U>:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><P><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>Employee shall be entitled to a vacation of three (3) weeks during each yearly period.</FONT></P>
    </TD>
</TR>
</TABLE>
<P align="center"><font face="Arial" size=2>2</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; <U>TERMINATION OF EMPLOYEE FOR CAUSE</U>:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>Employee&#146;s employment shall only be terminated for good cause. Good cause is defined as the happening
of any of the following events:</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>A.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><font face="Arial" size=2> <U>Criminal Conviction</U>.</FONT></TD>
</TR>
<TR>
  <TD width="96" vAlign=top></TD>
  <TD width="45" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>In the event Employee shall be convicted of a felony.</FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="145" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>B.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><font face="Arial" size=2><U>Dereliction of Duty</U>.</FONT></TD>
</TR>
<TR>
<TD width="96" vAlign=top></TD>
<TD width="45" vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>If Employee either intentionally ignores his duties or is grossly negligent in their performance.</FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp; </FONT><font face="Arial" size=2><U>Material Breach of Contract.</U></FONT></TD>
</TR>
<TR>
  <TD width="96" vAlign=top></TD>
  <TD width="45" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>In the event Employee materially breaches the contract.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="3" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>D.&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2><U>Total Incapacity</U>.</FONT></TD>
  </TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>If Employee is unable to work for a period of ninety (90) days within a three hundred sixty (360) day period.</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>TERMINATION NOTICE</U>:</FONT></TD>
</TR>
<TR>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>If Employee is to be terminated for any reason under paragraph 6.B. or 6.C., Employee shall be given
ten (10) days written notice by Employer of intent to terminate setting forth the specific grounds
and reasons for termination and giving to Employee a fifteen (15) day opportunity to cure. Such notice
shall specify with reasonable particularity the nature and extent of the intentional or negligent
conduct, or material breach or default complained of.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>&nbsp;</FONT><font face="Arial" size=2>8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>SEVERANCE PAY</U>:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>If Employee&#146;s employment is terminated by Employer within Employee&#146;s term of employment for any reason other than those set forth in Section 6, Employer</FONT></TD>
</TR>
</TABLE>
<P align=center><font face="Arial" size=2>3</FONT></P>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" vAlign=top><font face="Arial" size=2>must pay Employee, in addition to whatever damages or remedies Employee may be entitled to, at law or in equity, the remainder of monies due as set forth in Section 4.A., plus six
(6) months pay, to be paid in six (6) equal monthly payments. </FONT></TD>
  </TR>
<TR>
<TD width="54" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>NON-COMPETITION COVENANT</U>:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the period of your employment
with CSC, and for a period of one (1) year thereafter, you will not, directly or indirectly, on your own behalf or as an employee, partner, officer, director, trustee, agent, consultant or member of any person,
firm or corporation, or otherwise, render any service to, or engage in any business or
activity with any private correctional firm as it relates to business opportunities within
the United States and the Commonwealth of Puerto Rico without prior written approval.
During the period of your employment and until two years after the termination of your employment,
you will not, directly or indirectly, on your own behalf or as a partner, shareholder, officer, employee, director, trustee, agent, consultant or member of any person, firm
or corporation or otherwise, employ, seek to employ or otherwise obtain or seek the services of any
employee of CSC or any of its affiliates.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="51" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During and following the
period of your employment with CSC, you will not use for your own benefit or for the benefit of others, or divulge to others, any information, trade secrets, knowledge or data of secret or confidential nature and otherwise not available to members of the general public that concerns the business or affairs of CSC or its affiliates and which was acquired by you at any time prior to or during the term of your employment with CSC, except with the specific prior written consent of CSC.</FONT></TD>
</TR></TABLE>
<P align=center><font face="Arial" size=2>4</FONT></P>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>C. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any covenant or agreement contained in this paragraph 9 is found by a court having jurisdiction to be unreasonable in duration, geographical scope or character
of restriction, the covenant or agreement will not be rendered unenforceable thereby but rather the
duration, geographical scope or character of restriction of such covenant or agreement will be reduced
or modified with retroactive effect to make such covenant or agreement reasonable, and such covenant
or agreement will be enforced as so modified.</FONT></TD>
</TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>NON-VIOLATION COVENANT</U>:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp; </TD>
</TR>
<TR>
  <TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You hereby represent and warrant to CSC that (i) the execution, delivery and full performance of this Agreement by you does not and will not conflict with, &nbsp;breach, violate or cause a default under any agreement, contract or instrument to which &nbsp;you are a party or any judgment, order or decree to which you are subject; (ii) you are not a party or bound by any employment agreement, consulting agreement, agreement not to compete, confidentiality
agreement or similar agreement with any other person or entity; and (iii) upon the execution and
delivery of this Agreement by CSC, this Agreement will be your valid and binding obligation, enforceable
in accordance with its terms.</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD width=99 vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>NO AMENDMENTS</U>:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>This Agreement may be amended only by an&nbsp;instrument in writing executed by duly authorized representative
of both parties.</FONT></TD>
</TR></TABLE>
<P align=center><font face="Arial" size=2>5</FONT></P>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>CHOICE OF LAW</U>:</FONT></TD>
</TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><font face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Arial" size=2>This Agreement shall be governed by the laws of the State of Florida. Any action must be brought in
a court of competent jurisdiction for Sarasota County, Florida.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD colspan="3" vAlign=top><font size="2" face="Arial">CORRECTIONAL SERVICES CORPORATION</font></TD>
    <TD colspan="2" vAlign=top><font size="2" face="Arial">ROBERT MATTHEWS</font></TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><font size="2" face="Arial">Employer</font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><font size="2" face="Arial">Employee </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top nowrap><font size="2" face="Arial">By:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><font size="2" face="Arial">By:&nbsp;</font><u><font size="2" face="Arial"> /s/ Robert Matthews&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="3%" vAlign=top nowrap><font size="2" face="Arial">Title:&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Arial"> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRESIDENT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD width="10%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top nowrap><font size="2" face="Arial">Title:&nbsp;</font></TD>
    <TD vAlign=top><u><font size="2" face="Arial"> &nbsp;&nbsp;&nbsp;Senior V.P.&nbsp;Adult Div.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Arial">Date:&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4/5/04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Arial">Date:&nbsp;</font></TD>
    <TD vAlign=top><u><font size="2" face="Arial">&nbsp;&nbsp;&nbsp;4-9-04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
  </TR>
</TABLE>
<P align=center><font face="Arial" size=2>6</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex10-78.htm
<DESCRIPTION>EXHIBIT 10.78
<TEXT>
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<P align=right><FONT face="Arial" size=2><b>Exhibit 10.78</b></FONT></P>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font face="Arial"><font SIZE=2><u>EMPLOYMENT AGREEMENT</u></font></font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2 face="Arial">THIS AGREEMENT is made on March 5, 2003, by and between CORRECTIONAL SERVICES CORPORATION (hereinafter referred to as &#147;Employer&#148;) and JESSE WILLIAMS (hereinafter referred to as &#147;Employee&#148;).</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="163" style='margin-left:35.75pt;border-collapse:collapse'>
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        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">1.</font></p> </td>
        <td width="115" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>EMPLOYMENT</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">Employer hereby employs Employee and Employee hereby accepts employment upon the terms and conditions hereinafter set forth.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">2.</font></p> </td>
        <td width="60" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face="Arial"><u><font SIZE=2>TERM</font></u><font size=2>:</font></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">This Agreement shall remain in full force and effect for a term of two (2) years from July 01, 2003 through June 30, 2005.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">3.</font></p> </td>
        <td width="69" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>DUTIES</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">Employer hereby employs Employee as Senior Vice President, for Youth Services International, Inc., with powers and duties in that capacity to be such as may be determined by the Chief Operating Officer or the Chief Executive Officer. As Senior Vice President for YSI, you will be responsible for all operational requirements of YSI&#146;s Juvenile Facilities, as well as participating in the promotion of YSI and the development of new business opportunities. During the period of this Agreement, Employee shall also provide assistance to the Employer in other correctional related matters as may be determined by the Employer.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="175" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">4.</font></p> </td>
        <td width="127" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>COMPENSATION</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">Employer agrees to pay Employee during the term of this Agreement:</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial"> A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$160,000 per year salary</font></p>

<font face="Arial"><br>
</font>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2 face="Arial">B.</font><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2" face="wingdings">&#159;</font></font><font size=2 face="Arial">&nbsp; &nbsp;&nbsp;a bonus of $25,000 for each </font><font face="Arial"><i><font size=2>new contract<sup>1</sup></font> </i><font size=2>awarded and signed by CSC for which you were directly involved and that has a bed capacity between 30 to 50 beds; </font></font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font face="Arial"><font size="2" face="wingdings"> &#159;</font></font><font size=2 face="Arial">&nbsp; &nbsp;&nbsp;a bonus of $50,000 for each new contract awarded and signed by CSC for which you were directly involved and that has a bed capacity between 51 to 75 beds; </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial"> </font><font face="Arial"><font size="2" face="wingdings">&#159;</font><font size="2"> </font></font><font size=2 face="Arial">&nbsp;&nbsp;&nbsp;a bonus of $75,000 for each new contract awarded and signed by CSC for which you were directly involved and that has a bed capacity over 75 beds;</font></p>

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  <tr>
    <td width="96"><font size="1" face="Arial">&nbsp;</font></td>
    <td><font size="1" face="Arial">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font face="Arial"><u><font SIZE=2>NOTE</font></u><font size=2>: 50% of each bonus will be paid when a project comes on line and reaches 50% occupancy. The remaining 50% of the bonus will be paid after the first month in which the project occupancy averages 80%.</font></font></td>
  </tr>
</table>


<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">C. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will receive coverage under CSC&#146;s Executive medical and dental benefit package.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">D. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will be eligible to participate in the Company&#146;s 401(k) Plan after completion of your sixth month of service as provided for by the Company&#146;s then current 401(k) Plan.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">E. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CSC will pay all reasonable costs associated with the relocation of your family and your household goods to Sarasota, Florida.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size="2" face="Arial, Helvetica, sans-serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font><font face="Arial, Helvetica, sans-serif"></font><font face="Arial"><br>
<sup><font size=2>1</font></sup><font size=2> <i>New</i> <i>contract is defined as new business for the Company and does not include renewals or extensions of existing contracts.</i></font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p align="center"><font size=2 face="Arial">2</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">F. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You will receive a monthly housing allowance of $2,000.00 to cover living expenses for temporary housing for six (6) months, starting July 1, 2003 through December 31, 2003.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">G. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options to purchase a total of 10,000 shares of Correctional Services Corporation common stock at the market price set on July 1, 2003. These options will vest over a two (2) year period according to the option agreement attached.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">H. &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An automobile allowance of $250.00 dollars per month for the full term of employment.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2 face="Arial">Additional compensation and other fringe benefits as are deemed appropriate by the Employer.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">5.</font></p> </td>
        <td width="92" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>VACATION</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">Employee shall be entitled to a vacation of three (3) weeks during each yearly period.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">6.</font></p> </td>
        <td width="180" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>EMPLOYMENT CRITERIA</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time you report to work, you must provide CSC with documentation establishing identity and employment eligibility as established by the Immigration and Naturalization Services of the U.S. Department of Justice. Generally, such documentation would be in the form of (a) a U.S. Passport, or (b) a state-issued driver&#146;s license, an original social security card, or a birth certificate issued by state, county, or municipal authority bearing a seal, or other certification.</font></p>
<p align="center"><font size=2 face="Arial">3</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is contingent upon your passing a screen for illegal drug use. You must contact Chris McLain, Human Resources Manager, who will provide you with the name of our testing facility.</font>
<table border="0" cellspacing=0 cellpadding=0 width="335" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">7.</font></p> </td>
        <td width="287" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>TERMINATION OF EMPLOYEE FOR CAUSE</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">Employee&#146;s employment shall only be terminated for good cause. Good cause is defined as the happening of any of the following events:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="181" style='margin-left:71.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial">A.</font></p> </td>
        <td width="133" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial"><u>Criminal Conviction</u>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1.5in;text-align:left;'><font size=2 face="Arial">In the event Employee shall be convicted of a felony.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="175" style='margin-left:71.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial">B.</font></p> </td>
        <td width="127" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial"><u>Dereliction of Duty</u>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1.5in;text-align:left;'><font size=2 face="Arial">If Employee either intentionally ignores his duties or is grossly negligent in their performance.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="221" style='margin-left:71.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial">C.</font></p> </td>
        <td width="173" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial"><u>Material Breach of Contract</u>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1.5in;text-align:left;'><font size=2 face="Arial">In the event Employee materially breaches the contract.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="157" style='margin-left:71.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial">D.</font></p> </td>
        <td width="109" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial"><u>Total Incapacity</u>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1.5in;text-align:left;'><font size=2 face="Arial">If Employee is unable to work for a period of ninety (90) days within a three hundred sixty (360) day period.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="216" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">8.</font></p> </td>
        <td width="168" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>TERMINATION NOTICE</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Employee is to be terminated for any reason under paragraph 7.B. or 7.C., Employee shall be given ten (10) days written notice by Employer of intent to terminate setting forth the specific grounds and reasons for termination and giving to Employee a fifteen (15) day opportunity to cure. Such notice shall specify with reasonable particularity the nature and extent of the intentional or negligent conduct, or material breach or default complained of.</font></p>


<p align="center"><font size=2 face="Arial">4</font></p>

<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table border="0" cellspacing=0 cellpadding=0 width="179" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">9.</font></p> </td>
        <td width="131" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>SEVERANCE PAY</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">If Employee&#146;s employment is terminated by Employer within Employee&#146;s initial term of employment for any reason other than those set forth in Section 7, Employer will compensate with a severance package to Employee equivalent to six (6) month&#146;s salary and benefits.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="271" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">10.</font></p> </td>
        <td width="223" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>NON-COMPETITION COVENANT</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font SIZE=2 face="Arial">A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the period of your employment with CSC, and for a period of one (1) year thereafter, you will not, directly or indirectly, on your own behalf or as an employee, partner, officer, director, trustee, agent, consultant or member of any person, firm or corporation, or otherwise, render any service to, or engage in any business or activity with any private correctional firm as it relates to business opportunities within the United States and the Commonwealth of Puerto Rico without prior written approval. During the period of your
employment and until two years after the termination of your employment, you will not, directly or indirectly, on your own behalf or as a partner, shareholder, officer, employee, director, trustee, agent, consultant or member of any person, firm or corporation or otherwise, employ, seek to employ or otherwise obtain or seek the services of any employee of CSC or any of its affiliates.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font SIZE=2 face="Arial">B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During and following the period of your employment with CSC, you will not use for your own benefit or for the benefit of others, or divulge to others, any information, trade secrets, knowledge or data of secret or confidential nature and otherwise not available to members of the general public that concerns the business or affairs of CSC or its affiliates and which was acquired by you at any time prior to or</font></p>
<p align="center"><font size=2 face="Arial">5</font></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2 face="Arial">during the term of your employment with CSC, except with the specific prior written consent of CSC.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2 face="Arial">C. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any covenant or agreement contained in this paragraph 9 is found by a court having jurisdiction to be unreasonable in duration, geographical scope or character of restriction, the covenant or agreement will not be rendered unenforceable thereby but rather the duration, geographical scope or character of restriction of such covenant or agreement will be reduced or modified with retroactive effect to make such covenant or agreement reasonable, and such covenant or agreement will be enforced as so modified.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="253" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">11.</font></p> </td>
        <td width="205" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>NON-VIOLATION COVENANT</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">You hereby represent and warrant to CSC that (i) the execution, delivery and full performance of this Agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject; (ii) you are not a party or bound by any employment agreement, consulting agreement, agreement not to compete, confidentiality agreement or similar agreement with any other person or entity; and (iii) upon the execution and delivery of this Agreement by CSC, this Agreement will be your valid and binding
obligation, enforceable in accordance with its terms.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="187" style='margin-left:35.75pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2 face="Arial">12.</font></p> </td>
        <td width="139" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>NO AMENDMENTS</u>:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">This Agreement may be amended only by an instrument in writing executed by duly authorized representative of both parties.</font></p>


<p align="center"><font size=2 face="Arial">6</font></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table border="0" cellspacing=0 cellpadding=0 width="187" style='margin-left:35.75pt;border-collapse:collapse'>
  <tr >
    <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial">13.</font></p></td>
    <td width="139" valign=top style='padding:8.0pt 0in 0in 0in'><p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2 face="Arial"><u>CHOICE OF LAW</u>:</font></p></td>
  </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'><font size=2 face="Arial">This Agreement shall be governed by the laws of the State of Florida. Any action must be brought in a court of competent jurisdiction for Sarasota County, Florida.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:1in;text-align:left;'>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="35%"><font size=2 face="Arial">CORRECTIONAL SERVICES CORPORATION<br>
    Employer</font> </td>
    <td width="25%">&nbsp;</td>
    <td><font size="2" face="Arial">JESSE WILLIAMS<br>
      Employee</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="Arial">By: <u>&nbsp;&nbsp;/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    <td>&nbsp;</td>
    <td nowrap><font size=2 face="Arial">By: <u>/s/ Jesse Williams &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="Arial">Title:&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRESIDENT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    <td>&nbsp;</td>
    <td nowrap><font size=2 face="Arial">Title: <u>Senior Vice President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td nowrap><font size=2 face="Arial">Date:&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/6/03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
      </font></td>
    <td>&nbsp;</td>
    <td nowrap><font size=2 face="Arial">Date:&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3/18/03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
      </font></td>
  </tr>
</table>
<p align="center"><font size=2 face="Arial">7</font></p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-79.htm
<DESCRIPTION>EXHIBIT 10.79
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>

<P align=right><FONT size=2><b>Exhibit 10.79</b></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>$19,000,000.00</B></FONT></div></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>AMENDMENT NO. 3</U></B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B><U>TO</U></B></FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B><U>LOAN AND SECURITY AGREEMENT</U></B></FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2>originally dated as of October 30, 2002</FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2>by and among</FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CORRECTIONAL SERVICES CORPORATION</B></FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CSC MANAGEMENT DE PUERTO RICO INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL HOLDINGS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF TEXAS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>and </FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>GENERAL ELECTRIC CAPITAL CORPORATION</B></FONT><font size="2" face="Times New Roman, Times, serif"></font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2>Amended as of November ______, 2004</FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
</TABLE>



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<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center" valign="bottom"><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>AMENDMENT NO. 3 TO </U></B></FONT></div></td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>LOAN AND SECURITY AGREEMENT</U></B></FONT></div></td>
  </tr>
  <tr>
    <td><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS AMENDMENT NO. 3 TO LOAN AND SECURITY AGREEMENT </B>(this &#147;<U>Amendment</U>&#148;) is made as of this ____ day of November, 2004, by and among <B>CORRECTIONAL SERVICES CORPORATION, </B>a Delaware corporation, <B>CSC </B><B>MANAGEMENT DE PUERTO RICO INC., </B>a Puerto Rico corporation, <B>YOUTH SERVICES </B><B>INTERNATIONAL HOLDINGS, INC., </B>a Delaware corporation, <B>YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP, </B>a Maryland limited liability partnership, <B>YOUTH SERVICES INTERNATIONAL, INC., </B>a Maryland corporation, <B>YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC., </B>an Iowa corporation, <B>YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC., </B>a South Dakota corporation, <B>YOUTH SERVICES INTERNATIONAL OF
MISSOURI, INC., </B>a Missouri corporation, <B>YOUTH SERVICES INTERNATIONAL OF TEXAS, INC., </B>a Texas corporation, <B>YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC., </B>a Maryland corporation, and <B>YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC., </B>a Michigan corporation (collectively, &#147;<U>Borrower</U>&#148;), and <B>GENERAL ELECTRIC CAPITAL </B><B>CORPORATION, </B>a Delaware corporation (&#147;<U>Lender</U>&#148;).</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, Serif" size=2><B><U>RECITALS</U></B></FONT></div></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  </TR>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to that certain Loan and Security Agreement dated as of October 30, 2002 by and between Borrower and Lender (as amended, modified and restated from time to time, the &#147;<U>Loan Agreement</U>&#148;), the parties have established certain financing arrangements that allow Borrower to borrow funds from Lender in accordance with the terms and conditions set forth in the Loan Agreement.</FONT></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties now desire to amend the Loan Agreement in accordance with the terms and conditions set forth below.</FONT></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE, </B>in consideration of the premises set forth above, the terms and conditions contained in this Amendment,

and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,

Lender and Borrower have agreed to the following amendments to the Loan Agreement. Capitalized
terms
used but not defined in this Amendment shall have the meanings that are set forth in the
Loan Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=bottom>&nbsp;</TD></TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>1.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Amendment to Section 2.1C(a) of Loan Agreement</U></B><B>. </B>Subsection (a) of Section 2.1C of the Loan Agreement is hereby amended by deleting from the third (3<SUP>rd</SUP>) line of such subsection (a) &#147;$7,000,000&#148; and by inserting in lieu thereof &#147;$9,000,000&#148;.</FONT></TD>
</TR>
<TR>
<TD vAlign=bottom>&nbsp;</TD></TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>2.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Confirmation of Representations and Warranties.</U></B> &nbsp;Borrower hereby (a) confirms that all of the representations and warranties set forth in Article

IV of the Loan Agreement are true and correct in all material respects, and (b) specifically represents

and warrants to Lender that it has good and marketable title to all of its respective Collateral,

free and clear of any lien or security interest in favor of any other person or entity.</FONT></TD></TR>
</TABLE>
<B><I></I></B>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>1</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>3.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B> <B><U>Updated Schedules</U></B><B>. </B> As a condition precedent to Lender&#146;s agreement to enter into this Amendment, and in order for this Amendment to be effective, Borrower shall revise, update and deliver to Lender all Schedules to the Loan Agreement, to the extent necessary, (a) to reflect updated and accurate information with respect to Borrower, and (b) to update all other information as necessary to make the Schedules previously delivered correct. Borrower hereby represents and warrants that the information set forth on the Schedules
attached to the Loan Agreement (as amended per the Schedules attached hereto, if any) is true and correct as of the date of this Amendment.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>4.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B> <B><U></U></B><B><U>Costs and Expenses</U></B><B>.</B> Borrower agrees to pay all costs and expenses incurred by Lender in connection with this Amendment, including legal fees of Lender&#146;s in-house counsel in the amount of $500, which amount shall be added to the balance of the Revolving Credit Loans on the date hereof.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>5.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B> <B><U>Enforceability.</U></B> &nbsp;This Amendment constitutes the legal, valid and binding obligation of each Borrower and is enforceable against each such Borrower in accordance with its terms.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>6.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B> </FONT><font face="Times New Roman, Times, serif" size=2><b><u>Reference to the Effect on the Loan Agreement</u></b><b>.</b></font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the effectiveness of this Amendment, each reference in the Loan Agreement to &#147;this Agreement,&#148;

&#147;hereunder,&#148; &#147;hereof,&#148; &#147;herein&#148; or words of similar import shall
mean
and be a reference to the Loan Agreement as amended by this Amendment.</FONT></TD></TR>
<TR>
<TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as specifically amended above, the Loan Agreement and all other Loan Documents shall remain

in full force and effect and are hereby ratified and confirmed.</FONT></TD></TR>
<TR>
<TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided

in this Amendment, operate as a waiver of any right, power or remedy of Lender, nor constitute
a
waiver of any provision of the Loan Agreement, or any other documents, instruments and agreements

executed or delivered in connection with the Loan Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Amendment (together with any other document executed in connection herewith) is not intended

to be, nor shall it be construed as, a novation of the Loan Agreement.</FONT></TD></TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B> <B><U>Governing</U></B><U>&nbsp;<B>Law</B></U><b>.</b> This Amendment shall be governed by and construed in accordance with the laws of the State of Maryland.</FONT></TD>
</TR>
<TR>
  <TD vAlign=bottom><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B> <B><U>Headings</U></B><B>.</B> &nbsp;Section headings in this Amendment are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.</FONT></TD>
</TR>
</TABLE>


<P align=center><FONT face="Times New Roman, Times, serif" size=2>2</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=bottom><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>9.</B></FONT><FONT face="Times New Roman, Times, serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><U>Counterparts</U>. </B>This Amendment may be executed in counterparts, and such counterparts taken together shall be deemed

to constitute one and the same instrument.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[SIGNATURES FOLLOW]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>3</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF, </B>intending to be legally bound, the parties have caused this Amendment to be executed as of the date first written above.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=45% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>LENDER:</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>GENERAL ELECTRIC CAPITAL CORPORATION</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: <u>/s/
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>BORROWER:</b></FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>CORRECTIONAL SERVICES CORPORATION</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>CSC MANAGEMENT DE PUERTO RICO INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a Puerto Rico corporation</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD COLSPAN=2></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL HOLDINGS, &nbsp;&nbsp;INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>4</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=45% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL REAL</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b> &nbsp;&nbsp;&nbsp;PROPERTY PARTNERSHIP, LLP</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a Maryland limited liability partnership</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: Youth Services International, Inc.</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a Maryland corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; its Managing Partner</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a Maryland corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;NORTHERN IOWA, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;an Iowa corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF SOUTH</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;DAKOTA, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a South Dakota corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
</TABLE>
<B></B>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>5</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=45% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=55% ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL OF </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;</b></FONT><FONT FACE="Times New Roman, Times, serif" SIZE=2>MISSOURI, INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Missouri corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF TEXAS, <br>
          <FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;</b></FONT><FONT FACE="Times New Roman, Times, serif" SIZE=2></FONT>INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Texas corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF <br>
    <FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;</b></FONT><FONT FACE="Times New Roman, Times, serif" SIZE=2></FONT>    ILLINOIS, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Maryland corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF <br>
    <FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;</b></FONT><FONT FACE="Times New Roman, Times, serif" SIZE=2></FONT>    MICHIGAN, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Michigan corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: </FONT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: Bernard A. Wagner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title: Senior Vice President and Chief Financial Officer</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>6</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3 nowrap><FONT face="Times New Roman, Times, Serif" size=2><B><U>LIST OF SCHEDULES</U></B></FONT></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=3 nowrap>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 1.41&nbsp; </FONT></TD>
    <TD WIDTH=8% ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Mortgages</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 1.45&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Permitted Liens</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 3.6 </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Officers with Power of Attorney</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.1&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Subsidiaries</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.2&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>State of Organization</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.5&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Litigation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.7&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Tax Identification Numbers; Fiscal Years</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.9&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Exceptions to Ownership</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.10&nbsp;&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Tax Liability</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.14&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Environmental Matters</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.15&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Places of Business; Record Owner; Chief Executive Office</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.16&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Intellectual Property</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.17&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Capitalization; Ownership</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.19&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Borrowings and Guarantees</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.20&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Business Interruptions</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.21&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Trade Names</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.22 &nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Joint Ventures</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.27&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Funds from Restricted Grants</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.29&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Assignment of Claims Laws</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.30&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Unrecorded Leases</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.35 &nbsp; </FONT></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">-</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Unrecorded Contracts</FONT></TD>
  </TR>
</TABLE>
<B></B>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="10%" nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 4.42 &nbsp;</FONT></td>
    <td width="8%"><font size="2" face="Times New Roman, Times, serif">-</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Other Liens</FONT></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 4.43&nbsp; </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">-</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Agreements to Transfer Title</FONT></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.7&nbsp; &nbsp; </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">-</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Insurance</FONT></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.24&nbsp; </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">-</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Post-Closing Obligations</FONT></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.38&nbsp; </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">-</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Operating Accounts</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>8</FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>ex10-80.htm
<DESCRIPTION>EXHIBIT 10.80
<TEXT>
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<HEAD>
<TITLE></TITLE>
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<P align=right><FONT size=2><b>Exhibit 10.80</b></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>$19,000,000.00</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>AMENDMENT NO. 4</U></B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>TO</U></B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B><U>LOAN AND SECURITY AGREEMENT</U></B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2>originally dated as of October 30, 2002</FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2>by and among</FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp; </font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>CORRECTIONAL SERVICES CORPORATION</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>CSC MANAGEMENT DE PUERTO RICO INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL HOLDINGS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF TEXAS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC.</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2>&nbsp;and </FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2><B>GENERAL ELECTRIC CAPITAL CORPORATION</B></FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></TD>
</TR>
<TR>
  <TD vAlign=bottom><div align="center"><FONT face="Times New Roman, Times, serif" size=2>Amended as of December 31, 2004</FONT></div></TD>
</TR>
<TR>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
</TABLE>

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<p style="page-break-before: always">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>AMENDMENT NO. 4 TO <br>
</U></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><U>LOAN AND SECURITY AGREEMENT</U></B></FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>THIS AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT </B>(this &#147;<U>Amendment</U>&#148;) is made as of this 31<SUP>st</SUP> day of December, 2004, by and among <B>CORRECTIONAL SERVICES CORPORATION, </B>a Delaware corporation, <B>CSC </B><B>MANAGEMENT DE PUERTO RICO INC., </B>a Puerto Rico corporation, <B>YOUTH SERVICES </B><B>INTERNATIONAL HOLDINGS, INC., </B>a Delaware corporation, <B>YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP, </B>a Maryland limited liability partnership, <B>YOUTH SERVICES INTERNATIONAL, INC., </B>a Maryland corporation, <B>YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC., </B>an Iowa corporation, <B>YOUTH SERVICES INTERNATIONAL
OF SOUTH DAKOTA, INC., </B>a South Dakota corporation, <B>YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC., </B>a Missouri corporation, <B>YOUTH SERVICES INTERNATIONAL OF TEXAS, INC., </B>a Texas corporation, <B>YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC., </B>a Maryland corporation, and <B>YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC., </B>a Michigan corporation (collectively, &#147;<U>Borrower</U>&#148;), and <B>GENERAL ELECTRIC CAPITAL CORPORATION, </B>a Delaware corporation (&#147;<U>Lender</U>&#148;).</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center" valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2><B><U>RECITALS</U></B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to that certain Loan and Security Agreement dated as of October 30, 2002 by and between Borrower and Lender (as amended, modified and restated from time to time, the &#147;<U>Loan Agreement</U>&#148;), the parties have established certain financing arrangements that allow Borrower to borrow funds from Lender in accordance with the terms and conditions set forth in the Loan Agreement.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties now desire to amend the Loan Agreement in accordance with the terms and conditions set forth below.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>NOW, THEREFORE, </B>in consideration of the premises set forth above, the terms and conditions contained in this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower have agreed to the following amendments to the Loan Agreement. Capitalized terms used but not defined in this Amendment shall have the meanings that are set forth in the Loan Agreement.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>1.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Amendment to Section 2.1C(a) of Loan Agreement</U></B><B>. </B>Subsection (a) of Section 2.1C of the Loan Agreement is hereby amended by deleting from the third (3<SUP>rd</SUP>) line of such subsection (a) &#147;$9,000,000&#148; and by inserting in lieu thereof &#147;$9,500,000&#148;.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>2.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Confirmation of Representations and Warranties.</U></B> &nbsp;Borrower hereby (a) confirms that all of the representations and warranties set forth in Article IV of the Loan Agreement are true and correct in all material respects, and (b) specifically represents and warrants to Lender that it has good and marketable title to all of its respective Collateral, free and clear of any lien or security interest in favor of any other person or entity.</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>1</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>3.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Updated Schedules</U></B><B>. </B>As a condition precedent to Lender&#146;s agreement to enter into this Amendment, and in order for this Amendment to be effective, Borrower shall revise, update and deliver to Lender all Schedules to the Loan Agreement, to the extent necessary, (a) to reflect updated and accurate information with respect to Borrower, and (b) to update all other information as necessary to make the Schedules previously delivered correct. Borrower hereby represents and warrants that the information set forth on the Schedules attached to the Loan Agreement (as amended per the Schedules
 attached hereto, if any) is true and correct as of the date of this Amendment.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>4.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Costs and Expenses</U></B><B>. </B>Borrower agrees to pay all costs and expenses incurred by Lender in connection with this Amendment.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>5.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Enforceability.</U></B> &nbsp;This Amendment constitutes the legal, valid and binding obligation of each Borrower and is enforceable against each such Borrower in accordance with its terms.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Reference to the Effect on the Loan Agreement</U></B><B>.</B></FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Upon the effectiveness of this Amendment, each reference in the Loan Agreement to &#147;this Agreement,&#148; &#147;hereunder,&#148; &#147;hereof,&#148; &#147;herein&#148; or words of similar import shall mean and be a reference to the Loan Agreement as amended by this Amendment.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Except as specifically amended above, the Loan Agreement and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided in this Amendment, operate as a waiver of any right, power or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments and agreements executed or delivered in connection with the Loan Agreement.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> This Amendment (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Loan Agreement.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>7.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Governing Law</U></B><B>. </B>This Amendment shall be governed by and construed in accordance with the laws of the State of Maryland.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>8.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Headings</U></B><B>. </B>Section headings in this Amendment are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.</FONT></td>
  </tr>
  <tr>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td valign="bottom"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>9.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><U>Counterparts</U></B><B>. </B>This Amendment may be executed in counterparts, and such counterparts taken together shall be deemed to constitute one and the same instrument.</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>2</FONT></P>
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<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>IN WITNESS WHEREOF, </B>intending to be legally bound, the parties have caused this Amendment to be executed as of the date first written above.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
  <TR VALIGN=Bottom>
    <TD WIDTH=45% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>LENDER:</b></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>GENERAL ELECTRIC CAPITAL CORPORATION</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By:&nbsp;<u>/s/
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: </FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Title:</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>BORROWER:</b></FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>CORRECTIONAL SERVICES CORPORATION</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Title:</font></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>CSC MANAGEMENT DE PUERTO RICO INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Puerto Rico corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: </FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif"> Title:</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL HOLDINGS, <br>
&nbsp;&nbsp;&nbsp;    INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name: </FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>3</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD WIDTH=45% ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD WIDTH=55% ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL REAL </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PROPERTY PARTNERSHIP, LLP</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a Maryland limited liability partnership</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: Youth Services International, Inc. </FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a Maryland corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;its Managing Partner</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Maryland corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF </b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;NORTHERN IOWA, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>an Iowa corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>YOUTH SERVICES INTERNATIONAL OF SOUTH </b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;DAKOTA, INC.</b></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a South Dakota corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>4</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=55% ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL OF </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;MISSOURI, INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="45%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Missouri corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By:&nbsp;<u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL OF TEXAS, </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Texas corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL OF </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;ILLINOIS, INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Maryland corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>YOUTH SERVICES INTERNATIONAL OF </FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><b><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;MICHIGAN, INC.</FONT></b></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>a Michigan corporation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> (SEAL)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Name:</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Title:</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>5</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B><U>LIST OF SCHEDULES</U></B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE WIDTH=100% BORDER=0 CELLPADDING=0 CELLSPACING=0>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT nowrap>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=10% ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 1.41&nbsp; </FONT></TD>
    <TD WIDTH=8% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Mortgages</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 1.45&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Permitted Liens</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 3.6&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Officers with Power of Attorney</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.1&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2> -</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Subsidiaries</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.2&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>State of Organization</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.5&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Litigation</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.7&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Tax Identification Numbers; Fiscal Years</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.9&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Exceptions to Ownership</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.10&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Tax Liability</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.14 &nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Environmental Matters</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.15&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Places of Business; Record Owner; Chief Executive Office</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.16&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Intellectual Property</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.17 &nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Capitalization; Ownership</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.19 &nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Borrowings and Guarantees</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.20 </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Business Interruptions</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.21&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Trade Names</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.22&nbsp;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Joint Ventures</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.27&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Funds from Restricted Grants</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.29&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Assignment of Claims Laws</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.30&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Unrecorded Leases</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="5%" ALIGN=LEFT nowrap><FONT FACE="Times New Roman, Times, serif" SIZE=2>Schedule 4.35&nbsp; </FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Unrecorded Contracts</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>6</FONT></P>
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  <tr>
    <td width="10%" nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 4.42 &nbsp; </FONT></td>
    <td width="8%"><FONT face="Times New Roman, Times, serif" size=2>-</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Other Liens</FONT></td>
  </tr>
  <tr>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 4.43&nbsp; </FONT></td>
    <td><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Agreements to Transfer Title</FONT></td>
  </tr>
  <tr>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.7&nbsp; </FONT></td>
    <td><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Insurance</FONT></td>
  </tr>
  <tr>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.24 &nbsp;</FONT></td>
    <td><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Post-Closing Obligations</FONT></td>
  </tr>
  <tr>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>Schedule 6.38 </FONT></td>
    <td><FONT FACE="Times New Roman, Times, serif" SIZE=2>-</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Operating Accounts</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>7</FONT></P>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>ex10-81.htm
<DESCRIPTION>EXHIBIT 10.81
<TEXT>
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<P align=right><FONT size=2><b>Exhibit 10.81</b></FONT></P>




<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0in;text-align:center;'><b><font SIZE=2><u>AMENDMENT NO. 1 TO AGREEMENT OF LEASE</u></font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>THIS AMENDMENT </font></b><font size=2>(this </font><b><font size=2>
&#147;Amendment&#148;) </font></b><font size=2>is made and entered into effective as of December 31, 2003 (regardless of the date on which this document is executed by the parties) by and between </font><b><font SIZE=2>MYRTLE AVENUE FAMILY CENTER, INC., </font></b><font size=2>a New York corporation (hereinafter referred to as the </font><b><font size=2>&#147;Owner&#148;), </font></b><font size=2>and </font><b><font SIZE=2>CORRECTIONAL SERVICES CORPORATION, </font></b><font size=2>a Delaware corporation (hereinafter referred to as the </font><b><font size=2>&#147;Tenant&#148;), </font></b><font size=2>for the purposes of amending that certain Agreement of Lease, dated as of January 1, 1994, by and between the Owner and the Tenant for the premises known generally as 988 Myrtle Avenue, Brooklyn, New York (the </font><b><font size=2>&#147;Lease Agreement&#148;).</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt; margin-left:0in;text-align:center;'><b><font size=2>Witnesseth:</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>the original term of the Lease Agreement commenced on January 1, 1994 and expired on January 1, 1999, and Tenant exercised its first renewal option pursuant to Section 41(a) of the Lease Agreement to extend the term of the Lease Agreement from January 1, 1999 through January 1, 2004; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>Section 41 of the Lease Agreement provides the Tenant with additional options to further extend the term of the Lease Agreement through and including January 1, 2014, subject to the terms and conditions set forth in the Lease Agreement, including a second renewal option to extend the term of the Lease Agreement through and including January 1, 2009; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>the principal purpose of the Lease Agreement is to provide Tenant with a site from which to operate a community correctional center for the Federal Bureau of Prisons (the <b>&#147;BOP<font size=2>&#148;</font></b>), which the Tenant has operated at the leased premises since the commencement of the Lease Agreement; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>the BOP</font> <font size=2>is currently evaluating Tenant&#146;s bid for a new contract to operate a community correctional center at the leased premises and has not yet awarded a new contract to the Tenant; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>Owner is unwilling to extend the current term of the Lease Agreement until such time as the BOP notifies the Tenant whether it will award to Tenant a new contract for the operation of a community correctional center at the leased premises; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>under the existing terms of the Lease Agreement, in order to secure rights to the leased premises beyond January 1, 2004, Tenant must exercise its second renewal option to extend the term of the Lease Agreement through and including January 1, 2009 and would thereby be committed to the Owner with respect to the Lease Agreement through and including such date; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>WHEREAS, </font></b><font size=2>Owner and Tenant recognize that it is possible that the BOP will not award a new contract to Tenant to operate a community correctional center at the leased premises, and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'> <font size=2>therefore, Tenant would have no business reason to maintain a leasehold interest in the leased premises;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><b><font SIZE=2>NOW, THEREFORE, </font></b><font size=2>in light of the foregoing, Owner and Tenant have determined that it would be in their mutual best interests to amend the terms of the Lease Agreement, and, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by each of the parties, the Owner and the Tenant hereby agree as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Extension of the Term of the Lease Agreement</u>. &nbsp;Owner and Tenant hereby agree that the term of the Lease Agreement shall be, and is hereby, extended from January 1, 2004 through and including January 1, 2009 (the &#147;Second Extended Term&#148;), subject to the terms and conditions set forth herein and, to the extent not superceded or modified herein, to the terms and conditions of the Lease Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>2.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Rent</font></u><font size=2>. &nbsp;Notwithstanding the provisions of Section 41 of the Lease Agreement that set forth the amount of the monthly Basic Rent payments required to be made by Tenant to the Owner during the &#147;Second Extended Term&#148; and the &#147;Third Extended Term&#148; (as those terms are defined in Section 41 of the Lease Agreement), in consideration of Owner&#146;s agreements herein, the following provisions shall apply:</font></p>
<table border="0" cellspacing=0 cellpadding=0 style='margin-left:35.9pt; margin-bottom: 0pt;'>
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    <td valign=top >&nbsp;</td>
    <td>&nbsp;</td>
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  <tr >
    <td width="39" valign=top ><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></td>
    <td><font face="Times New Roman, Times, Serif" size=2>during the Second Extended Term, which shall commence on January 1, 2004 and expire on the Second Renewal Expiration Date of January 1, 2009, Tenant shall make monthly Basic Rent payments to the Owner in the amount of $65,000;</font> </td>
  </tr>

  <tr >
    <td valign=top ><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr >
    <td valign=top ><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></td>
    <td><font size=2>during the Third Extended Term, if any, which shall commence on January 1, 2009 and expire on the Third Renewal Expiration Date of January 1, 2014 if Tenant shall elect to further extend the term of the Lease Agreement, Tenant shall make monthly Basic Rent payments to the Owner in the amount of $71,500; and</font></td>
  </tr>
  <tr >
    <td valign=top ><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
    <td><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr >
    <td valign=top ><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></td>
    <td><font size=2>during the Fourth Extended Term, if any, which shall commence on January 1, 2014 expire on the Fourth Renewal Expiration Date of January 1, 2019 if Tenant shall elect to further extend the term of the Lease Agreement, Tenant shall make monthly Basic Rent payments to the Owner in the amount of $78,650.</font></td>
  </tr>
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<table border="0" cellspacing=0 cellpadding=0 width="260" style='margin-left:35.9pt;'>
    <tr >
        <td width="38" valign=top style='padding:8.0pt 0in 0in 0in'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td width="212" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Right of Tenant to Terminate Lease.</font></u></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>In consideration of Tenant&#146;s agreement to increase the amount of Basic Rent payable during the Second Extension Term and the Third Extension Term, Owner hereby agrees that, notwithstanding the extension of the term of the Lease Agreement through and including January 1, 2009, or any subsequent exercise by Tenant of its rights to further extend the term of the Lease Agreement, Tenant shall, at all times, have the right to terminate the Lease Agreement, for any reason, by delivering to Owner written notice of its election to terminate the Lease Agreement at least 365 days prior to the date on which Tenant desires to terminate the Lease Agreement;</font></p>

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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'> <i><font size=2>provided however, </font></i><font size=2>that if the Tenant elects to terminate the Lease Agreement at any time otherwise than at the scheduled expiration of an extension of the term of the Lease, Tenant shall pay to the Owner as a cancellation and termination fee an amount equal to 12 months of Basic Rent payments, such fee to be calculated based upon the amount of monthly Basic Rent payments that would be in effect as of the date of the termination of the Lease Agreement and to be paid by Tenant to Owner in 12 monthly installments together with its payment of monthly Basic Rent during the remainder of the term of the Lease Agreement;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>provided further, </font></i><font size=2>that Tenant may elect to terminate and cancel the Lease Agreement at any time, without any obligation to pay such cancellation and termination fee to the Owner, if (a) the BOP shall terminate its contract with Tenant, or (b) Tenant also has given notice to the BOP that it desires to withdraw from its contract with the BOP for the operation of community correction center at the leased premises and within the Borough of Brooklyn and/or desire to discontinue its contract with the BOP for the operation of community correction center at the leased premises and within the Borough of Brooklyn as of the end of its then-current term;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><i><font size=2>provided further, </font></i><font size=2>that the foregoing shall not be interpreted to permit Tenant to terminate the Lease Agreement without payment of the early cancellation and termination fee so that Tenant may relocate its program to another location within the BOP&#146;s Southern District.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>If Tenant elects to terminate and cancel the Lease Agreement and is not then required to pay the cancellation and termination fee to Owner under the foregoing provisions, Tenant shall nevertheless become obligated for the payment of the cancellation and termination fee if Tenant shall thereafter enter into new contract or agreement to operate a non-secure residential facility anywhere within the BOP&#146;s Southern District at any time within 2 years following the effective date of the termination of Tenant&#146;s contract with the BOP. The foregoing provision shall survive the termination of the Lease Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>In all events set forth above, Tenant must give at least 365 days prior notice of its election to terminate this Lease.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>4.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=1>&nbsp;</font><u><font size=2>Additional Extension Right</font></u><font size=2>. &nbsp;Section 41 of the Lease Agreement shall be, and is hereby, amended by adding thereto a new sub-Section 41(d), which shall read as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1in;text-align:left;'><font size=2>&#147;(d) The Tenant may extend the term (the &#147;Fourth Extended Term&#148;) for an additional five years, commencing on January 1, 2014 and expiring on January 1, 2019 (the &#147;Fourth Renewal Expiration Date&#148;), upon delivery of written notice of its election to do so given to the Owner at least six months prior to the Third Renewal Expiration Date. The Fourth Extended Term shall be on all of the terms and conditions of this lease applicable at the Third Renewal Expiration Date, except that Tenant will make Basic Rent monthly payments during the Fourth Extended Term of $78,650.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></p>
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        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td width="316" valign=top style='padding:8.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>No Effect on Other Provisions of the Lease Agreement</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'> <font size=2>This Amendment, if and when executed, shall become a substantive part of the Lease Agreement. Except to the extent expressly provided for herein, nothing contained in this Amendment is intended to amend or modify any of the other terms, conditions or provisions of the Lease Agreement, all of which shall remain in full force and effect, and are hereby ratified and confirmed by the Owner and the Tenant.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="137" style='margin-left:35.9pt;'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>
        <td width="89" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Counterparts</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>This Amendment may be executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original document, but all of which counterparts shall together constitute one and the same instrument.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="163" style='margin-left:35.9pt;'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>
        <td width="115" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Entire Agreement</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The terms of this Amendment constitute the entire agreement and understanding of the parties hereto with respect to the matters herein set forth, and all prior negotiations, writings and understandings relating to the subject matter of this Amendment are merged herein and are superseded and canceled by this Amendment.</font></p>


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    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>
        <td width="93" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Interpretation</font></u><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The headings of the paragraphs of this Amendment have been inserted for convenience of reference only and shall not be considered in interpreting this Amendment. With respect to each and every term and provision in this Amendment, the parties understand and agree that the same have or has been mutually negotiated, prepared and drafted, and that if at any time the parties hereto desire or are required to interpret or construe any such term or provision, no consideration shall be given to the issue of which party hereto actually prepared, drafted or requested any term or condition of this Amendment.</font></p>
<P align="center"><font size="2">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </font></P>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'> <b><font SIZE=2>&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, </font></b><font size=2>the parties have executed this Amendment intending it to become effective between them as of the date set forth above.</font></p>


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      <td width="275" valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
      <td align="left" valign=top style='padding:0in 0pt 0in 0pt'><p style='margin-left:0pt; text-indent:0pt; text-align:left; margin-top:0pt;margin-bottom:13.7pt'><font SIZE=2>ATTEST:</font></p> </td>
        <td width="427" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:13.7pt'><b><font SIZE=2>MYRTLE AVENUE FAMILY CENTER, INC.</font></b></p> </td> </tr>
    <tr >
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
        <td valign=top style='padding:0in 0pt 0in 0pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p> </td>
        <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:
        <u> /s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p> </td> </tr>
    <tr >
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
      <td align="right" valign=top style='padding:0in 0pt 0in 0pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'><b><font SIZE=2>CORRECTIONAL SERVICES CORPORATION</font></b></td>
    </tr>
    <tr >
      <td align="left" valign=top style='padding:0in 0pt 0in 0pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
      <td align="left" valign=top style='padding:0in 0pt 0in 0pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>&nbsp;</td>
    </tr>
    <tr >
      <td align="left" valign=top style='padding:0in 0pt 0in 0pt'><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'><font size=2>By: <u>/s/ Bernard A. Wagner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
    </tr>
    <tr >
      <td align="right" valign=top style='padding:0in 0pt 0in 0pt'>&nbsp;</td>
      <td valign=top style='padding:0in 5.4pt 0in 5.4pt'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bernard A. Wagner<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and Chief Financial <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer      </font></td>
    </tr>
</table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font><font size=2>&nbsp;</font></p>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></p>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>ex10-82.htm
<DESCRIPTION>EXHIBIT 10.82
<TEXT>
<HTML>
<HEAD>
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<P align=right><FONT size=2><b>Exhibit 10.82</b></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR align="center">
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR align="center">
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>FIRST AMENDMENT TO LEASE</B></FONT></TD>
</TR>
<TR>
<TD width="240" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>AMENDMENT TO LEASE dated as of October 1, 2001 by and between Creston Central LLC, successor to Creston
Realty Associates L.P., having an address at 2532 Creston Avenue, Bronx, New York (&#147;Landlord&#148;),
and Correctional Services Corporation, a Delaware corporation, having an office at 1819 Main Street,
Suite 1000, Sarasota, Florida 34236 (&#147;Tenant&#148;).</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR align="center">
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>RECITALS</B></FONT></TD>
</TR>
<TR>
<TD width="324" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Landlord and Tenant are parties to that certain lease dated as of October 1, 1996 entered into by Creston
Realty Associates L.P. (predecessor to Creston Central LLC) and Tenant relating to premises located
at 2534 Creston Avenue, Bronx, New York. The parties desire to amend the Lease. Capitalized terms
used in this amendment shall have the meanings specified in the Lease.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR align="center">
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>AGREEMENT</B></FONT></TD>
</TR>
<TR>
<TD width="309" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="4" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now, therefore, the parties agree as follows:</FONT></TD>
</TR>
<TR>
  <TD width="28" vAlign=top></TD>
  <TD width="48" vAlign=top></TD>
<TD width="48" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extension of Term</U>. &nbsp;&nbsp;Section 2 of the Lease is hereby amended by adding the following clauses:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A<I>.</I> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of this Lease is extended so that the term shall expire September 30, 2011.</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=147>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Tenant&#146;s Option to Terminate Lease</U>.</FONT></TD>
</TR>
<TR>
<TD width="99" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=93 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Provided Tenant shall not be in default in the performance or observance of any of the terms, covenants,
provisions and conditions contained in this Lease on the part of Tenant to be performed or observed,
Tenant may terminate this Lease effective on the date (the &#147;Termination Date&#148;), which shall
be set forth in a notice sent by Tenant to Landlord, which Termination Date shall be not less than&nbsp;90 nor more than 150 days after the date of such notice. Tenant shall pay to Owner the &#147;Termination
Amount&#148; by certified or bank check simultaneously with sending such notice of termination. Provided
Tenant shall have fully complied with all of the provisions of this article, upon the Termination
Date, this Lease and the term demised hereunder shall end and shall expire with respect to the entire
Demised Premises, as if such date were the date originally fixed in this Lease for the expiration
of the term of this Lease.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The term &#147;Termination Amount&#148; as used in this article shall mean the Base Rent for the twelve
month period commencing on the first day of the first month after the Termination Date and ending
on the last day of the twelfth full month thereafter.</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=93 vAlign=top><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</font></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Base Rent</U>. Section 4 of the Lease shall be amended to provide that the Base Rent during the following periods shall be set forth below:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD width="500" vAlign=bottom STYLE="BORDER-BOTTOM:1px solid #000000;"><FONT face="Times New Roman, Times, Serif" size=2>Period</FONT></TD>
    <TD align="right" vAlign=bottom STYLE="BORDER-BOTTOM:1px solid #000000;"><FONT face="Times New Roman, Times, Serif" size=2>Base Rent Per Annum</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>October 1, 2001-September 30, 2002 $330,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2002-September 30, 2003 $330,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>October 1, 2003-September 30, 2004 $360,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2004-September 30, 2005 $360,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>October 1, 2005-September 30, 2006 $390,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2006-September 30, 2007 $390,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2007-September 30, 2008 $420,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>

October 1, 2008-September 30, 2009 $420,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2009-September 30, 2010 $450,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>
October 1, 2010-September 30, 2011 $450,000.00</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=93><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Notice Clause</U>. Section 39 of the Lease is amended to provide that copies of notices to the Landlord shall be sent to Solomon J. Borg PC, 630 Third Avenue, NY, NY 10017 and that copies of notices to Tenant shall be sent to 1819 Main Street, Suite 1000, Sarasota, Florida 34236, Attention: President.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Insurance; Repair and Restoration</U>. Section 15 of the Lease is amended by adding the following language at the end of paragraph &#147;A.&#148;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In the event of any damage or destruction to the Demised Premises, all funds derived from insurance proceeds received by Tenant shall be used to effect the repair and reconstruction of the structures and improvements damaged or destroyed to substantially the condition prior to such damage or destruction. If the insurance funds are not adequate, Tenant shall deposit with Landlord prior to the commencement of any construction a sum sufficient, so that when taken together with insurance funds available for construction, the total will equal a sum equal to or exceeding the cost of all labor, materials, construction costs and architect&#146;s fees necessary to fully complete the repairing, restoring and rebuilding of the structures and improvements. All work will be carried out in accordance with plans and specifications prepared by a licensed architect, which plans and specifications shall be subject to Landlord&#146;s reasonable approval.
All repairs and reconstruction shall be of a quality and workmanship as needed to return the Demised Premises to the standard prevailing prior to such damage or destruction and shall be diligently commenced and continuously carried out. Lack of funds and lack of financing shall not be deemed reasons beyond the control of Tenant. In the event Tenant purchases fire insurance with a deductible or retention provision, Tenant shall be required to make up the deductible or retention from Tenant&#146;s own funds.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following language shall be added at the end of Section 15, paragraph &#147;D.&#148;</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=93>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In the event Tenant shall have procured insurance with a deductible or self insurance or retention
amount, Tenant shall pay to Landlord, simultaneously with such notice of termination an amount equal
to such deductible or self insurance/retention amount. In no event shall the deductible or retention
amount exceed $ 250,000 with respect to the Demised Premises.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>As modified by this first amendment, the Lease remains in full force and effect.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> This first amendment may not be changed, modified, waived or terminated expect
    by an agreement in writing signed by the party against whom enforcement is
    sought.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> This first amendment may be executed in one or more counterparts, each of which
shall be deemed an original.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>This first amendment contains the entire agreement and understanding of the
parties with respect to the subject matter hereof. Any and all discussions,
statements, representations and understandings, whether oral written, relating in
any respect to the subject matter hereof are merged herein.</FONT></TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF the parties have executed this first amendment to Lease as of October 1, 2001.</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=3>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top></TD>
</TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="4"><FONT face="Times New Roman, Times, serif" size=2>Creston Central LLC</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD width="50%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width="10%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font face="Times New Roman, Times, serif" size=2>By:&nbsp;</font></TD>
    <TD colspan="2" STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;/s/</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;</font></TD>
    <TD STYLE="BORDER-BOTTOM:1px solid #000000;"><FONT face="Times New Roman, Times, serif" size=2>MEMBER&nbsp;&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="3"><FONT face="Times New Roman, Times, serif" size=2>Correctional Services Corporation</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font face="Times New Roman, Times, serif" size=2>By:</font></TD>
    <TD colspan="2" STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;/s/
      James F. Slattery</font></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;</font></TD>
    <TD nowrap STYLE="BORDER-BOTTOM:1px solid #000000;"><FONT face="Times New Roman, Times, serif" size=2> President and Chief Executive Officer</FONT></TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<HR color=#000000 noShade>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>9
<FILENAME>ex10-83.htm
<DESCRIPTION>EXHIBIT 10.83
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<P align=right><FONT size=2><b>Exhibit 10.83</b></FONT></P>

<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
<TR valign=top>
<TD align='center'>
<HR style="MARGIN-TOP: -2px" color=black noshade size=1>

<HR style="MARGIN-TOP: -13px" color=black noshade size=1>
</TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2> <B>INDENTURE OF TRUST</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Between</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>and</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>U.S. BANK NATIONAL ASSOCIATION</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>as Trustee<br>
</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Dated as of June 1,&nbsp;2003</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Relating to</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>$57,415,000<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Washington Economic Development Finance Authority<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Taxable Economic Development Revenue Bonds, Series 2003A<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(CSC of Tacoma LLC Detention Facility Project)</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD>
<HR style="MARGIN-TOP: -2px" color=black noshade size=1>

<HR style="MARGIN-TOP: -13px" color=black noshade size=1>
</TD></TR></TABLE>
<BR>
<HR color=#000000 noShade>


<p style="page-break-before: always">
<PAGE>

<TABLE cellpadding=0 cellspacing=0 border=0 width=100%>
  <TR valign=Bottom>
    <TH colspan=6><DIV align="center"><font size="2" face="Times New Roman, Times, serif">TABLE OF CONTENTS</font></DIV></TH>
  </TR>
  <TR valign=Bottom>
    <TH colspan=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR valign=Bottom>
    <TH colspan=2>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH colspan=2><font size="2" face="Times New Roman, Times, serif">Page</font></TH>
    <TH width="2%">&nbsp;</TH>
  </TR>
  <TR valign=Bottom>
    <TH colspan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
    <TH><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
    <TH colspan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE I</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD width="1%" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD width="2%" align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD width="12%" align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 1.01.</FONT></TD>
    <TD width="1%" align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#definitions1">Definitions</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>3</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 1.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#interpretation1">Interpretation</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>13</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 1.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#all1">All Bonds Equally and Ratably Secured; Bonds Not General Obligations</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#all1">of the Authority</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>14</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE II</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>AUTHORIZATION AND TERMS OF BONDS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#authorization1">Authorization of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>14</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#registration1">Registration and Payment of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>15</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#use1">Use of Depository</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>17</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#mutilated1">Mutilated, Destroyed, Lost and Stolen Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>17</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#execution1">Execution and Authentication of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>18</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 2.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#nonpresentment1">Non-Presentment of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>18</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE III</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>REDEMPTION OF BONDS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#nooptional1">No Optional Redemption</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>18</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#reserved1">Reserved</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#extraordinary1">Extraordinary Optional Redemption</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#selection1">Selection of Bonds to be Redeemed</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#partial1">Partial Redemption of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#effect1">Effect of Call for Redemption</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 3.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#notice1">Notice of Redemption</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>19</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE IV</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>FORM OF BONDS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 4.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#form1">Form of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>20</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE V</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>REVENUES AND FUNDS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#creation1">Creation of Funds and Accounts</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>20</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#application1">Application of Bond Proceeds and Other Money</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>21</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#cost1">Cost of Issuance Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>21</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#revenue1">Revenue Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>21</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#project1">Project Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>23</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#bond1">Bond Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>24</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#debt1">Debt Service Reserve Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>26</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.08.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#repair1">Repair and Replacement Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>27</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.09.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#operating1">Operating Reserve Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>27</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.10.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#insurance1">Insurance and Property Taxes Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>28</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-i-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellpadding=0 cellspacing=0 border=0 width=100%>
  <TR valign=Bottom>
    <TD width=12% align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.11.</FONT></TD>
    <TD width=1% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#investment1">Investment of Money Held by the Trustee</a> </font></TD>
    <TD width=1% align=RIGHT>&nbsp;</TD>
    <TD width=2% align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>28</FONT></TD>
    <TD width=2% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.12.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#liability1">Liability of Trustee for Investments</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>29</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.13.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#investment2">Investment Income</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>29</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.14.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#repayment1">Repayment to the Borrower from Amounts Remaining in Bond Fund</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>29</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.15.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#disposition1">Disposition of Unclaimed Funds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>29</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 5.16.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#additional1">Additional Funds and Accounts</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>29</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VI</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>CERTAIN COVENANTS; LIMITATION OF LIABILITY</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#payment1">Payment of Principal and Interest</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>30</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#performance1">Performance of Covenants</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>30</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#instruments1">Instruments of Further Assurance</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>30</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#rights1">Rights Under Loan Agreement</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>30</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#protection1">Protection of Lien</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>31</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 6.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#limitation1">Limitation of Liability</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>31</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VII</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>DEFAULT AND REMEDIES</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#events1">Events of Default</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>32</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#acceleration1">Acceleration; Annulment of Acceleration</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>32</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#consent1">Consent of Insurer Upon Default</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#rights2">Rights of the Trustee</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#additional2">Additional Remedies and Enforcement of Remedies</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#application2">Application of Revenues and other Money after Default</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>34</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#remedies1">Remedies Not Exclusive</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>35</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.08.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#remedies2">Remedies Vested in Trustee</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>35</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.09.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#individual1">Individual Bondowner Action Restricted</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>36</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.10.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#termination1">Termination of Proceedings</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>36</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.11.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#waiver1">Waiver of Event of Default</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>37</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.12.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#notice2">Notice of Default</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>37</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.13.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#limitations1">Limitations on Remedies</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>38</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.14.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#consent2">Consent of Insurer in the Event of Insolvency</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>38</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 7.15.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#payment2">Payment Procedures Under the Policy</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>38</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VIII</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>THE TRUSTEE</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#certain1">Certain Duties and Responsibilities</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>41</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#certain2">Certain Rights of Trustee</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>42</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#employment1">Employment of Experts</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>43</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#enforcement1">Enforcement of Performance by Others</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>43</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#right1">Right to Deal in Bonds and Take Other Actions</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>43</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#removal1">Removal and Resignation of the Trustee</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>44</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#continuation1">Continuation Statements; Proof of Claim</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>45</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.08.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#trustee1">Trustee Fees and Expenses</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>45</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.09.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#destruction1">Destruction of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>46</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.10.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#reports1">Reports</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>46</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.11.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#recitals1">Recitals and Representations</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>46</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-ii-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellpadding=0 cellspacing=0 border=0 width=100%>
  <TR valign=Bottom>
    <TD width=12% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.12.</FONT></TD>
    <TD width=1% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#merger1">Merger or Consolidation</a> </font></TD>
    <TD width=1% align=RIGHT>&nbsp;</TD>
    <TD width=2% align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>46</FONT></TD>
    <TD width=2% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 8.13.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#cotrustees1">Co-Trustees</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>47</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE IX</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>SUPPLEMENTS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#supplements1">Supplements not Requiring Consent of or on Behalf of Bondowners</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>47</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#supplements2">Supplements Requiring Consent of or on Behalf of Bondowners</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>48</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#execution2">Execution and Effect of Supplements</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>49</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#amendements1">Amendments to Loan Agreement Not Requiring Consent of or on Behalf</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#amendements1">of Bondowners</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>50</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#amendments2">Amendments to Loan Agreement Requiring Consent of or on Behalf of</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#amendments2">Bondowners</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>50</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#authority1">Authority Consent to Amendments</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>50</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 9.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#isurer1">Insurer Consent to Amendments</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>51</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE X</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>SATISFACTION AND DISCHARGE</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 10.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#discharge1">Discharge</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>51</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 10.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#providing1">Providing for Payment of Bonds</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>51</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 10.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#provisions1">Provisions to Survive After Discharge</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>52</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 10.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#reserved2">Reserved Rights</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>52</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 10.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#escrow1">Escrow</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>53</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE XI</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD colspan="6" align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>MISCELLANEOUS</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.01.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#evidence1">Evidence of Acts of Bondowners</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>53</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.02.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#limitation2">Limitation of Rights; Third Party Beneficiaries</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>54</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.03.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#unrelated1">Unrelated Bond Issues</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>54</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section.11.04.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#severability1">Severability</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>54</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.05.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#holidays1">Holidays</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>54</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.06.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#compliance1">Compliance with Continuing Disclosure Requirements of the SEC</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>55</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.07.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#governing1">Governing Law and Forum</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>55</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.08.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#notices1">Notices</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>55</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.09.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#additional3">Additional Notices to Rating Agencies</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>56</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.10.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#counterparts1">Counterparts</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>57</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Section 11.11.</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=LEFT><font size="2" face="Times New Roman, Times, serif"> <a href="#binding2">Binding Effect</a> </font></TD>
    <TD align=RIGHT>&nbsp;</TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>57</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD colspan=2></TD>
    <TD></TD>
    <TD colspan=3></TD>
  </TR>
</TABLE>
<br>
<TABLE cellpadding=0 cellspacing=0 border=0 width=100%>
<TR valign=Bottom>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>Exhibit A</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&#150;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Form of Bonds</FONT></TD>
     <TD width=2% align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR valign=Bottom>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>Exhibit B</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&#150;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Form of Project Requisition Certificate</FONT></TD>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR valign=Bottom>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>Exhibit C&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#150;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Form of Operating Reserve Fund/Repair and Replacement Fund Requisition Certificate</FONT></TD>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR valign=Bottom>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>Exhibit D&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#150;&nbsp;Form of Costs of Issuance Fund Requisition Certificate</FONT></TD>
     <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-iii-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;<B>INDENTURE OF TRUST</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>THIS INDENTURE OF TRUST</B>, dated as of June 1, 2003 (the &#147;Indenture&#148;), made by and between the WASHINGTON ECONOMIC DEVELOPMENT
FINANCE AUTHORITY (the &#147;Authority&#148;), an instrumentality of the State of Washington, and
U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the &#147;Trustee&#148;),</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>WITNESSETH:</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Authority is authorized by the Constitution and laws of the State of Washington, particularly
Chapter 43.163 RCW, as amended (the &#147;Act&#148;), to finance economic development activities
in the State of Washington; and</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Act authorizes the Authority: (a) to issue its nonrecourse revenue bonds to finance the
project costs for economic development activities, which include, inter alia, activities conducted
within a federally designated enterprise or empowerment zone or geographic area of similar nature;
(b) to enter into financing documents with the borrower of the proceeds of its nonrecourse revenue
bonds for the purpose of providing revenue to pay the principal of, premium, if any, and interest
on such bonds; and (c) to secure the payment of the principal of, premium, if any, and interest on
such bonds as provided in the Act; and</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, CSC of Tacoma LLC, a Delaware limited liability company (the &#147;Borrower&#148;), has requested
that the Authority issue bonds to finance a portion of the cost of acquiring, constructing and equipping
a detention facility (the &#147;Detention Facility&#148;) located in the federally-designated Tacoma
Renewal Community in Tacoma, Washington (the &#147;Project&#148;); and</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Authority has adopted Resolution No. W-2003-002 on April 4, 2003, approving said request
and authorizing the issuance of its Taxable Economic Development Revenue Bonds, Series 2003A (CSC
of Tacoma LLC Detention Facility Project), in the aggregate principal amount of $57,415,000 (the
&#147;Bonds&#148;) to finance costs of the Project; and</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Authority has duly entered into a Loan Agreement, dated as of June 1, 2003, with the Borrower
specifying the terms and conditions of a loan by the Authority to the Company of the proceeds of
the Bonds to finance costs of the Project and the payment by the Company to the Authority of amounts
sufficient for the payment of the principal of and, premium, if any, and interest on the Bonds and
certain related expenses; and</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, to provide for the authentication and delivery of the Bonds, to establish and declare the
terms and conditions upon which the Bonds are to be issued and secured and to secure the payment
of the principal thereof and of the interest and premium, if any, thereon, the Authority has authorized
the execution and delivery of this Indenture; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Trustee agrees to accept and administer the trusts created hereby for the benefit of the
Bondowners and the Insurer; and</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always">
<PAGE>

<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, all acts and proceedings required by law necessary to make the Bonds when executed by the
Authority, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal
limited obligations of the Authority, and to constitute this Indenture a valid and binding agreement
for the uses and purposes herein set forth in accordance with its terms, have been done and taken,
and the execution and delivery of this Indenture have been in all respects duly authorized;</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>GRANTING CLAUSES</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, THIS INDENTURE FURTHER WITNESSETH: That the Authority has, in consideration of the
premises, of the acceptance by the Trustee of the trusts hereby created, and of the purchase and
acceptance of the Bonds by the holders thereof, and for the purpose of fixing and declaring the terms
and conditions upon which the Bonds are to be issued, authenticated, delivered, secured and accepted
by all persons who shall from time to time be or become holders thereof, and to secure the payment
of all of the Bonds at any time issued and Outstanding (as defined herein) hereunder and the interest
and premium, if any, thereon according to their tenor, purport and effect, and to secure the payment
to the Insurer of the Reimbursement Obligations and the performance and observance of all of the
covenants and conditions therein and herein contained, executed this Indenture and does hereby grant
a security interest in, assign, transfer, pledge, grant and convey unto the Trustee and its successors
and assigns the following described property:</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=50>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Revenues.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All right, title and interest
of the Authority in and to the Deed of Trust.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>C. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All rights and interests of the
Authority in, under and pursuant to the Loan Agreement (as defined herein), including but not limited
to, all Loan Repayments, Additional Payments and Facility Revenues, provided that the assignment
made by this clause shall not include (i) any assignment of any obligation of the Authority under
the Loan Agreement (and the Trustee shall have no duties with respect thereto) or (ii) any of the
&#147;Authority Unassigned Rights&#148; consisting of all rights expressly granted to the Authority
in this Indenture or in the Loan Agreement to (a) inspect books and records, (b) give or receive
notices, approvals, consents, requests, and other communications, (c) receive payment or reimbursement
for expenses, (d) immunity from and limitation of liability, (e) indemnification from liability by
the Borrower under the Indemnification and Compensation Agreement, and (f) security for the Borrower&#146;s
indemnification obligations.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>D. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All rights and interests of the
Authority in, under and pursuant to the Assignment of Claims.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>E. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts on deposit from time to
time in the funds and accounts created pursuant hereto, subject to the provisions of this Indenture
permitting the application thereof for the purposes and on the terms and conditions set forth herein.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-2-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>F.  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any and all other real or personal property of any kind from time to time hereafter by delivery
or by writing of any kind specifically conveyed, pledged, assigned or transferred, as and for additional
security hereunder for the Bonds, by anyone on behalf of the Authority or with its written consent,
or by or on behalf of the Borrower, in favor of the Trustee, which is hereby authorized to receive
any and all such property at any and all times and to hold and apply the same subject to the terms
hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>TO HAVE AND TO HOLD all said Revenues and properties pledged, assigned and conveyed by the Authority
hereunder, including all additional property that by the terms hereof has or may become subject to
the encumbrance hereof, unto the Trustee and its successors in trust and its assigns forever, subject,
however, to the rights reserved hereunder.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN TRUST NEVERTHELESS, for the equal and proportionate benefit and security of the holders from time
to time of the Bonds issued, authenticated, delivered and Outstanding hereunder, without preference,
priority or distinction as to lien or otherwise of any of said Bonds over any other or others of
said Bonds to the end that each holder of such Bonds has the same rights, privileges and lien under
and by virtue hereof; and for the benefit of the Insurer and as security for the payment to the Insurer
of the Reimbursement Obligations, and conditioned, however, that if the Authority shall well and
truly cause to be paid fully and promptly when due all liabilities, obligations and sums at any time
secured hereby, and shall promptly, faithfully and strictly keep, perform or observe or cause to
be kept, performed and observed all of its covenants, warranties and agreements contained herein,
then and in such event, this Indenture shall be and become void and of no further force and effect;
otherwise, the same shall remain in full force and effect, and upon the trust and subject to the
covenants and conditions hereafter set forth.</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE I</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>DEFINITIONS AND OTHER PROVISIONS <br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>OF GENERAL APPLICATION</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="definitions1" id="definitions1"></a>Section 1.01. &nbsp;&nbsp;Definitions</B>.&nbsp; In addition to the terms defined in the Loan Agreement and the Contract, for the purpose hereof unless
the context otherwise requires, the following words and phrases shall have the following meanings:</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Act</I>&#148; means Chapter 43.163 RCW, as amended.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Agency Contract</I>&#148;<I> </I>means any agreement, subsequent to the INS Contract, entered into by the Operator for the provision
and operation of detention services (or any other use) utilizing the Detention Facility.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Annual Insurance and Property Taxes&#148; </I>for any calendar year means (i) the amount of premiums estimated to be payable for Insurance during
such calendar year, as certified by the Borrower to the Trustee on or before January 1 of each year
for the following calendar year, and adjusted from time to time during such calendar year, as provided
in the Loan Agreement, plus (ii) the amount of property taxes estimated to be payable during such
calendar year, as certified</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-3-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> to the Trustee
  by the Borrower on or before January 1 of such year, as provided in the Loan
  Agreement.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Assignment Agreement</I>&#148; means the Assignment of Project Agreements dated June 30, 2003, by the Borrower to the Trustee as security
for Borrower&#146;s obligations under the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Assignment of Claims</I>&#148;<I> </I>means the Assignment pursuant to Federal Acquisition Regulation 32.805 to the Trustee of all payments
due to Operator under the INS Contract.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Assignment of Leases</I>&#148; means the Assignment of Leases and Cash Collateral dated June 1, 2003, by the Borrower to the Trustee
as security for Borrower&#146;s obligations under the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Authority</I>&#148; means Washington Economic Development Finance Authority, a nonprofit corporation designated as a political
subdivision of the State in accordance with the provisions of the Constitution of the State and under
Title 35, Chapter 5, Washington Revised Statutes, as amended, and its successors and assigns.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Authority Documents</I>&#148; means collectively the Loan Agreement, the Indenture, the Bond Purchase Agreement, and any other agreement,
certificate, contract, or instrument to be executed by the Authority in connection with the issuance
of the Bonds or the financing of a portion of the expense associated with the Project.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Authority Representative&#148;</I> means and includes the Chair and Vice Chair of the Authority, or such other person as the Authority
may designate to act on its behalf by written certificate furnished to the Borrower and the Trustee
containing the specimen signature of such person and signed on behalf of the Authority by its Chair
or Vice Chair.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Authority&#146;s Unassigned Rights</I>&#148; means the rights of the Authority to (a) inspect books and records, (b)give or receive notices, approvals,
consents, requests, and other communications, (c) receive payments or reimbursement for expenses,
(d) immunity from and limitation of liability, (e) indemnification from liability by the Borrower,
and (f) security for the Borrower&#146;s indemnification obligations.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Authorized Denomination&#148;</i> means $5,000 or any integral multiple thereof.</FONT></TD>
</TR>
<TR>
<TD width="48" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Bond</I>&#148; or &#147;<i>Bonds&#148;</i> means the Authority&#146;s Taxable Economic Development Revenue Bonds, Series 2003A (CSC of Tacoma
LLC Detention Facility Project), issued pursuant to Section 2.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Bond Counsel</I>&#148; means Preston Gates &amp; Ellis LLP, or another firm of attorneys of national reputation experienced
in the field of municipal bonds whose opinions are generally accepted by purchasers of municipal
bonds, appointed by the Authority and reasonably acceptable to the Borrower.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-4-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" valign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Bond Fund</I>&#148; means the fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Bond Payment Date</I>&#148; means each interest payment date and each date on which principal shall be payable on any of the Bonds
according to their respective terms so long as any Bonds are Outstanding.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>Bondowner&#148; </I>or <I>&#147;Owner&#148; </I>means the person in whose name the Bond is registered.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Bond Purchase Agreement</I>&#148; means the Bond Purchase Agreement with respect to the Bonds among the Authority, the Borrower, and
the Underwriter.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Borrower</I>&#148; means CSC of Tacoma LLC, a Delaware limited liability company, whose sole member is the Operator, and
its successors and permitted assigns and any surviving, resulting or transferee entity, including
any surviving, resulting or transferee entity in a transaction in compliance with the provisions
of Section 5.2 of the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Borrower Representative</I>&#148; means James Slattery, Class A Manager of the Borrower, and any other person at the time designated
to act on behalf of the Borrower by written certificate furnished to the Authority and the Trustee,
containing the specimen signature of such person. Such certificate may designate an alternate or
alternates who shall have the same authority, duties and powers as such Borrower Representative.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Business Day</I>&#148; means any day of the year other than a Saturday or Sunday or a day on which banks located in the city
in which the Designated Office of the Trustee is located are not required or authorized to remain
closed.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Code</I>&#148; means the Internal Revenue Code of 1986, and applicable regulations thereunder.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
</TR></TABLE>
<P align=left><font face="Times New Roman, Times, serif"><i><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size="2">&#147;Completion&#148; </font></i><font size="2"> means, with respect to the Detention Facility, final completion of the Detention Facility as defined in the Development Agreement.</font></font></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Construction Contract</I>&#148; means the Standard Form of Agreement between Owner and Contractor where the basis for payment is the
  COST OF THE WORK PLUS A FEE with a negotiated Guaranteed Maximum Price, on AIA Form A111-1997, dated
  June 27, 2003, by and between the Borrower and the General Contractor.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Construction Costs Account</I>&#148; means the account of that name created within the Project Fund pursuant to Section 5.01 hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Construction Manager</I>&#148; means Washington Construction Services, Inc. as construction manager for the Project pursuant to its
agreement with Borrower.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Costs of Issuance Fund</I>&#148; means the fund of that name created pursuant to Section 5.01 hereof.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-5-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Debt Service Reserve Fund</i>&#148; means the fund of that name created pursuant to Section 5.01.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<i>Deed of Trust</i>&#148; means the Deed of Trust, Security Agreement, Assignment of Lease and Rents and Fixture Filing, dated
as of June 1, 2003, by the Borrower to the Trustee as security for Borrower&#146;s obligations under
the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Designated Office&#148;</i> of the Trustee means the office set forth in Section 11.08 or such other office designated by the Trustee
in writing in accordance with Section 11.08.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Detention Facility&#148;</i> means the detention facility and related facilities to be built in Tacoma as required under the terms
of the INS Contract.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Developer&#148;</i> means Correctional Services Corporation, a Delaware corporation, as Developer for the Project pursuant
to the Development Agreement, or any successor developer of the Detention Facility.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Development Agreement&#148;</i> means the Design and Development Agreement between the Borrower and Developer, dated June 30, 2003,
pursuant to which Developer will manage construction of the Detention Facility, and any subsequent
use agreement entered into by Borrower for management of the construction of the Detention Facility.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>DTC</i>&#148; means The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, and its successors and assigns.</FONT></TD>
</TR>
<TR>
<TD width="48" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&nbsp;&#147;Event of Default</i>&#148; means any one of those events set forth in Section 7.01 hereof.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Facility Revenue Collection Period</i>&#148; means a month-long period beginning on the twentieth day of each month and ending on the nineteenth
day of the following month. The first Facility Revenue Collection Period shall be such month-long
period within which the first payment from the INS under the INS Contract is received.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Facility Revenues</i>&#148; means the User Fee and any and all other income, receipts and revenues of any nature in any form derived
by Borrower from the Detention Facility, including but not limited to amounts due or to become due
from the INS as a result of performance of the INS Contract (which shall be assigned to the Trustee
pursuant to the Assignment of Claims) or amounts due or to become due from any other party contracting
with Operator as a result of performance of any Agency Contract, to the extent Borrower is entitled
to receive or to receive the benefit of such income, receipts and revenues pursuant to the Use Agreement.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>General Costs Account</i>&#148; means the account of that name created within the Project Fund pursuant to Section 5.01 hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&nbsp;&#147;General Contractor&#148;</i> means Lydig Construction, Inc.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-6-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Government Obligations</I>&#148; means (i) direct obligations of the United States of America for the payment of which the full faith
and credit of the United States of America is pledged, and (ii) obligations issued by a person controlled
or supervised by and acting as an instrumentality of the United States of America, the payment of
the principal of, premium, if any, and interest on which is fully guaranteed as a full faith and
credit obligation of the United States of America (including any securities described in (i) or (ii)
issued or held in book-entry form on the books of the Department of the Treasury of the United States
of America or Federal Reserve Bank).</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Indemnification and Compensation Agreement&#148; </I>means the Indemnification and Compensation Agreement dated as of April 2, 2003, between the Borrower
and the Authority.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Indenture</I>&#148; means this Indenture, and when amended or supplemented, this Indenture as amended or supplemented.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&#147;<I>INS</I>&#148; means the Bureau of Immigration and Customs Enforcement under the United States Department
of Homeland Security, formerly known as the United States Immigration and Naturalization Service.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>INS Contract</i>&#148; means Contract No. ACL-2-C-0004 (Requisition/Purchase Req. DET-99-251), entered July 26, 2002, as modified,
between the Operator and the INS for the provision and operation of a detention facility.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Insurance&#148; </I>means the insurance required to be maintained for the Detention Facility by the Borrower pursuant to
the following provisions of Section 6.6 of the Loan Agreement: (a)(2) and (c)(iv)</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Insurance and Property Taxes Fund</i>&#148; means the fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Insurer&#148;</i> means MBIA Insurance Corporation, a stock insurance company incorporated under the laws of the State
of New York.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Interest Account</i>&#148; means the account of that name created within the Bond Fund pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Letter of Representations</I>&#148; means the Blanket Issuer Letter of Representations dated February 25, 1997, of the Authority to DTC.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Loan Agreement&#148;</I> means the Loan Agreement, dated as of June 1, 2003, by and between the Authority and the Borrower with
respect to the Bonds, and when amended or supplemented, such Loan Agreement, as amended or supplemented.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Monthly Minimum Amount</i>&#148; means the minimum guaranteed amount payable monthly to the Operator (i) under the INS Contract or (ii)
under any replacement or successor contract for providing services at the Detention Facility. The
Monthly Minimum Amount under the INS Contract is initially $1,140,650.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-7-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td valign=top>&nbsp;</td>
  </tr>
  <tr>
    <td valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font face="Times New Roman, Times, Serif" size=2>&#147;<i>Operating Costs</i>&#148; means all actual and direct expenses paid to unrelated parties incurred in the operation and maintenance of the Detention Facility including, without limitation, the Borrower&#146;s fees and expenses, salaries and benefits paid or provided to individuals employed at the Detention Facility, the costs of services and goods provided to the Detention Facility, utilities, supplies, equipment, food service, medical care, transportation, maintenance, repairs, insurance and insurance deductibles, legal settlements attributable to the operation of the Detention Facility, and legal, accounting and other professional fees and expenses attributable to the operation of the Detention Facility.</font></td>
  </tr>
  <tr>
    <td valign=top>&nbsp;</td>
  </tr>
</table>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>&#147;Operating Reserve Fund&#148; </I>means the fund of that name created pursuant to Section 5.01.</FONT></TD>
</TR>
<TR>
<TD width="51" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Operator</I>&#148; means Correctional Services Corporation, a Delaware corporation, or any successor operator or tenant
of the Detention Facility.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Opinion of Counsel</I>&#148; means a written opinion of an attorney or firm of attorneys appointed by the Borrower, reasonably acceptable
to the Trustee and, to the extent the Authority is to act or refrain from acting in reliance thereon,
reasonably acceptable to the Authority, and who (except as otherwise expressly provided herein or
in the Loan Agreement) may be counsel for the Borrower, the Authority or the Trustee, and may be
an employee of the Borrower or the Trustee.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Outstanding</i>&#148; when used with reference to the Bonds, means, as of any date of determination, all Bonds theretofore
authenticated and delivered except:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds theretofore canceled by the Trustee or delivered to the Trustee for cancellation;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds that are deemed paid and no longer Outstanding as provided herein;</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds in lieu of which other Bonds have been issued pursuant to the provisions hereof relating to
Bonds destroyed, stolen or lost, unless evidence satisfactory to the Trustee has been received that
any such Bond is held by a bona fide purchaser; and</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of any consent or other action to be taken hereunder or under the Loan Agreement by the
Owner of a specified percentage in principal amount of Bonds, Bonds held by or for the account of
the Authority, the Borrower, or any person controlling, controlled by, or under common control with,
any of them, unless all Bonds otherwise Outstanding or held by or for the account of any such person,
in which such Bonds shall be taken into account.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Owner</i>&#148; See Bondowner.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Permitted Investments</I>&#148; means any of the following:</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Direct obligations of the United States of America (including
obligations issued or held in book-entry form on the books of the Department of the Treasury of the
United</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-8-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> States of America, and CATS and TIGRS) or obligations the timely payment of the principal of and interest
on which are fully guaranteed by the United States of America.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds, debentures, notes or other evidence
of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations
are backed by the full faith and credit of the United States of America (stripped securities are
only permitted if they have been stripped by the agency itself):</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
<TR align="left" valign="top">
<TD width=103></TD>
<TD width=45><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>U.S. Export-Import Bank: direct obligations or fully guaranteed certificates of beneficial ownership;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD width=93></TD>
<TD width=45><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Farmers Home Administration: certificates of beneficial ownership;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Federal Financing Bank;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>D.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Federal Housing Administration Debentures;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>E.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>General Services Administration: participation certificates;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>F.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>Government National Mortgage Association (GNMA):&nbsp;GNMA-guaranteed mortgage-backed bonds and GNMA-guaranteed pass-through obligations;</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>G.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>U.S. Maritime Administration: guaranteed Title XI financing; and</FONT></TD>
</TR>
<TR align="left" valign="top">
<TD></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>H.</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>U.S. Department of Housing and Urban Development:&nbsp;project notes; local authority bonds; U.S. government-guaranteed new communities debentures; U.S. government-guaranteed public housing notes and bonds.</FONT></TD>
</TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds, debentures, notes or other evidence
of indebtedness issued or guaranteed by any of the following non-full faith and credit U.S. government
agencies (stripped securities are only permitted if they have been stripped by the agency itself):</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR valign="bottom">
  <TD></TD>
  <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
  <TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Federal Home Loan Bank System: senior debt obligations;</FONT></TD>
</TR>
<TR valign="bottom">
<TD width=103></TD>
<TD width=45 valign="top"><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Federal&nbsp;Home&nbsp;Loan&nbsp;Mortgage&nbsp;Corporation&nbsp;(FHLMC): participation
certificates and senior debt obligations;</FONT></TD>
</TR>
<TR valign="bottom">
<TD width=90></TD>
<TD width=45 valign="top"><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Federal National Mortgage Association (FNMA):&nbsp;mortgage-backed securities and senior debt obligations;</FONT></TD>
</TR>
<TR valign="bottom">
<TD width=90></TD>
<TD width=45 valign="top"><FONT face="Times New Roman, Times, Serif" size=2>D.</FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Student Loan Marketing Association (SLMA):&nbsp;senior debt obligations;</FONT></TD>
</TR>
<TR valign="bottom">
<TD width=90></TD>
<TD width=45 valign="top"><FONT face="Times New Roman, Times, Serif" size=2>E.</FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Resolution&nbsp;Funding&nbsp;Corp. (REFCORP):&nbsp;only&nbsp;the&nbsp;interest component of REFCORP
strips that have been stripped by request to the Federal Reserve Bank of New York; and</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>F.</FONT></TD>
<TD valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Farm Credit System: consolidated systemwide bonds and notes.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market funds registered under
the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities
Act of 1933, and having a rating by S&amp;P of AAAm-G, AAAm or AAm and if rated by Moody&#146;s having
a rating of Aaa, Aa1 or Aa2, including those for which the Trustee or an affiliate provides services
for a fee, whether as an investment advisor, custodian, transfer agent, registrar, sponsor, distributor,
manager or otherwise.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-9-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit secured at all times by collateral described in (1) and/or (2) above. Such
certificates must be issued by commercial banks, savings and loan associations or mutual savings
banks (including the Trustee or any of its affiliates) whose short-term obligations are rated A-1+
or better by S&amp;P and Prime-1 or better by Moody&#146;s. The collateral must be held by a third
party and Bondowners must have a perfected first security interest in the collateral.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit, savings accounts, deposit accounts or money market deposits (including those
of the Trustee or any of its affiliates) that are fully insured by FDIC, including BIF and SAIF.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment agreements, including &#147;GICs,&#148; forward purchase agreements, and reserve fund put
agreements acceptable to the Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper rated, at the time of purchase, Prime-1 by Moody&#146;s and A-1 or better by S&amp;P.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds or notes issued by any state or municipality rated by Moody&#146;s and S&amp;P in one of the
two highest rating categories assigned by such agencies.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal funds or bankers acceptances with a maximum term of one year of any bank (including the Trustee
or any of its affiliates) that has an unsecured, uninsured and unguaranteed obligation rating of
Prime-1 or A3 or better by Moody&#146;s and A-1 or A or better by the Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(11)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repurchase agreements providing for the transfer of securities from a dealer bank (including the Trustee
or any of its affiliates) or securities firm (seller/borrower) to the Trustee, on behalf of the Authority
(buyer/lender), and the transfer of cash from the Trustee, on behalf of the Authority, to the dealer
bank or securities firm with an agreement that the dealer bank or securities firm will repay the
cash plus a yield to the Trustee, on behalf of the Authority, in exchange for the securities at a
specified date. Repurchase Agreements for a term of 30 days or less must satisfy the following criteria
and, if for a term of more than 30 days, must be approved by the Insurer:</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=90></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repos must be between the Trustee, on behalf of the Authority,
and a dealer bank or securities firm.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>a.</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Primary dealers on the Federal Reserve reporting dealer list that fall under the jurisdiction of the
SIPC and that are rated A or better by S&amp;P and Moody&#146;s, or</FONT></TD></TR>
<TR>
<TD valign=top></TD>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
  <TD valign=top></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>b.</FONT></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Banks rated A or above by S&amp;P and Moody&#146;s.</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-10-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
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<TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD width=90>&nbsp;</TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The written repo contract must include the following:</FONT></TD>
</TR>
<TR valign="bottom">
<TD></TD>
<TD>&nbsp;</TD>
</TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=130>&nbsp;</TD>
<TD valign=bottom><FONT face="Times New Roman, Times, Serif" size=2>a. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities that are acceptable
for transfer are:</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Direct U.S. governments, or</FONT></TD>
</TR>
<TR>
  <TD valign=top></TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=183></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Federal agencies backed by the full faith and credit of the U.S. government (and FNMA &amp; FHLMC).</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>b. </FONT></TD>
  <TD valign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The term of the repo may be up to 30 days.</FONT></TD>
</TR>
<TR>
  <TD valign=top></TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=bottom>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=131></TD>
<TD width=52 valign=top><FONT face="Times New Roman, Times, Serif" size=2>c.</FONT></TD>
<TD width="1049" valign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The collateral must be delivered to the Trustee (if Trustee is not supplying the collateral) or to a third party acting as agent for the Trustee (if the Trustee is supplying the collateral) before or simultaneously with payment
(perfection by possession of certificated securities).</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top></TD>
<TD valign=bottom>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=131></TD>
<TD valign=top width=52><FONT face="Times New Roman, Times, Serif" size=2>d.</FONT></TD>
<TD valign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The securities must be valued weekly, marked-to-market at current market price plus accrued interest.
The value of collateral must be equal to 104% of the amount of cash transferred by the Trustee, on
behalf of the Authority, to the dealer bank or securities firm under the repo plus accrued interest.
If the value of securities held as collateral slips below 104% of the value of the cash transferred,
then additional&nbsp;cash&nbsp;and/or&nbsp;acceptable&nbsp;securities&nbsp;must&nbsp;be transferred.
If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must
equal 105%.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such other investments as are approved in writing by the Insurer.</FONT></TD>
</TR>
<TR>
<TD width="90" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Policy&#148; </I>means the financial guaranty insurance policy issued by the Insurer with respect to the Bonds.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Principal Account</I>&#148; means the account of that name created within the Bond Fund pursuant to Section 5.01 hereof.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Project</I>&#148; means the acquisition, construction and equipping of the Detention Facility, as further described in
the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><i>&#147;Project Agreements</i>&#148; means, collectively, the Development Agreement, Construction Contract, the Architect&#146;s Agreement,
the Construction Manager Agreement,</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Project Fund</i>&#148; means the fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-11-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Rating Agency&#148; </I>means Standard &amp; Poor&#146;s Ratings Service or any other nationally recognized securities rating
agency that at the relevant time maintains a rating on the Bonds at the request of the Borrower,
or if no such rating agency is at the relevant time maintaining a rating on the Bonds, any nationally
recognized securities rating agency designated by the Borrower by written notice to the Trustee.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Rating Category&#148; </I>means a generic securities rating category, without regard, in the case of a long-term rating category,
to any refinement or gradation within the long-term rating category by a numerical or other modifier.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;RCW&#148; </I>means the Revised Code of Washington.</FONT></TD>
</TR>
<TR>
<TD width="48" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Retainage Account&#148; </I>means the account of that name created within the Project Fund pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Redemption Account&#148; </I> means the account of the Bond Fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Reimbursement Obligations&#148; </I>means (i) all amounts paid by the Insurer under the Policy, plus (ii) interest thereon from the date
of any such payment until reimbursed at the interest rate on the Bonds, plus (iii) reasonable costs
and expenses paid or incurred by the Insurer in connection with any curative or remedial enforcement
action, defense or preservation of any rights or security arising out of or relating to the Indenture,
the Loan Agreement, the Deed of Trust, Assignment of Leases, any of the Project Agreements, the Use
Agreement, the Assignment Agreement, or any of the other agreements entered into by Borrower in connection
with the Bonds or the Project (including, without limitation, reasonable fees and expenses of attorneys,
consultants, managers, brokers and auditors and reasonable costs of investigation and all costs and
expenses paid or incurred by the Insurer in connection with any event of default under any of such
documents or any reletting of the Detention Facility) and (iv) interest on the amounts described
in clause (iii) from the date the Insurer gives written notice to the Borrower and the Trustee of
the payment or incurrence by the Insurer of such amounts and of the amount of any such payment made
or incurred by the Insurer, until reimbursed at the interest rate on the Bonds.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Repair and Replacement Fund&#148; </I>means the fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Revenue Fund&#148; </I>means the fund of that name created pursuant to Section 5.01 hereof.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I>&#147;Revenues&#148; </I>means (i) all amounts paid or payable by the Borrower under the Loan Agreement and assigned to the
Trustee hereunder, including the Loan Repayments, Additional Payments and Facility Revenues pledged
pursuant to Section 6.7 of the Loan Agreement, and any proceeds or amounts receivable by the Trustee
under the Deed of Trust, Assignment of Leases, or Assignment Agreement, (ii) any proceeds of Bonds
originally deposited with the Trustee for the payment of interest accrued on the Bonds or otherwise
paid to the Trustee by or on behalf of the Borrower or the Authority for deposit in the Bond Fund,
(iii) any insurance</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-12-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
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<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>proceeds or eminent domain proceeds in respect of the Detention Facility receivable or received by
the Trustee pursuant to the Loan Agreement and the Deed of Trust, and (iv) investment income with
respect to any money held by the Trustee under the Indenture.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>State</I>&#148; means the State of Washington.</FONT></TD>
</TR>
<TR>
<TD width="48" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Subordinated Note</I>&#148; means the Subordinated Promissory Note dated June 30, 2003, made by Borrower to Operator in the initial
principal amount of $8,000,000 and payable from Facility Revenues only as provided in Section 5.04.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Supplement</i>,&#148; when used in reference to the Indenture, means an indenture supplementing or modifying the provisions
hereof entered into by the Authority and the Trustee in accordance with Article IX hereof.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&#147;Surveillance Fee</i>" means the annual surveillance fee of $15,000 payable to the Insurer at closing and annually
thereafter until the earlier of (i) final maturity or (ii) the legal discharge of the Bonds and all
Reimbursement Obligations. Upon the execution of a long term lease between the INS and Operator in
a form satisfactory to Insurer, the Surveillance Fee shall be reduced to $5,000.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Trustee</I>&#148; means U.S. Bank National Association, a national banking association, in its capacity as trustee hereunder
and any successor to its duties hereunder.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Trustee Fees and Expenses</I>&#148; means the fees and expenses described in Section 8.08. </FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><i>&#147;Underwriter&#148;</i>  means Morgan Keegan &amp; Company, Inc.</FONT></TD>
</TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>Use Agreement&#148;</i> means the Use Agreement dated as of June 30, 2003 by and between Borrower and Operator, and any subsequent
use agreement or lease for the Detention Facility entered into by Borrower.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<i>User Fee</i>&#148; means the monthly amount payable by the Operator to the Borrower under the Use Agreement, which amount
shall be certified to the Trustee by the Borrower.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Written Request</I>&#148; means a request in writing, signed, in the case of the Authority, by an Authority Representative, and
in the case of the Borrower, by a Borrower Representative.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="interpretation1" id="interpretation1"></a>Section 1.02.&nbsp;&nbsp; Interpretation.</B> &nbsp;In this Indenture, unless otherwise stated or the context otherwise requires:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2> Words of one gender include the corresponding words of other genders; words of neuter include both
genders; and words in the singular include words in the plural and vice versa.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2> </FONT><FONT face="Times New Roman, Times, Serif" size=2>Words indicating persons, parties, or entities (and the like) include firms, associations, partnerships
(including limited partnerships), limited liability companies (and the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-13-</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
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  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> like), corporations, trusts and other legal entities, including public and governmental bodies, as
well as natural persons.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>References to a statute refer to the statute, as amended, and any successor statute, and to all regulations promulgated under or implementing the statute or successor statute, as in effect at the relevant time.</FONT></td>
  </tr>
  <tr align="left">
    <td width="9%">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>References to a governmental or quasi-governmental entity or representatives thereof also refer to an entity that succeeds to the functions of the governmental or quasi-governmental entity and </FONT><FONT face="Times New Roman, Times, Serif" size=2>representatives thereof.</FONT></td>
  </tr>
  <tr align="left">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2>Headings preceding sections of text and any table of contents are solely for convenience of reference and are not part of this Indenture and are not to affect its meaning, interpretation or effect.</FONT></td>
  </tr>
  <tr align="left">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The word &#147;including&#148; means &#147;including, but not limited to&#148; and the word &#147;include&#148; means &#147;include, among others.&#148;</FONT></td>
  </tr>
  <tr align="left">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp; </FONT><FONT face="Times New Roman, Times, Serif" size=2>The terms &#147;hereby,&#148; &#147;hereof,&#148; &#147;herein,&#148; and &#147;hereunder&#148; (and the like) refer to this Indenture.</FONT></td>
  </tr>
  <tr align="left">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left">
    <td colspan="3"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Words importing the redemption of a Bond or the calling of a Bond for redemption do not mean or include the payment of a Bond at its stated maturity or the purchase of a Bond.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="all1"></a>Section 1.03. &nbsp;&nbsp;All Bonds Equally and Ratably Secured; Bonds Not General Obligations of the Authority.
</B>All Bonds issued hereunder and at any time Outstanding shall in all respects be equally and ratably
secured hereby, without preference, priority, or distinction on account of the date or dates or the
actual time or times of the issuance or maturity of the Bonds, so that all Bonds at any time issued
and Outstanding hereunder shall have the same right, lien and preference hereunder and shall all
be equally and ratably secured hereby. The Bonds shall be special limited obligations of the Authority
and shall be payable solely out of the Revenues and other security pledged hereby and shall not constitute
an indebtedness or general obligation of the Authority within the meaning of any State constitutional
provision or statutory limitation and shall never constitute or give rise to a pecuniary liability
of the Authority or be a charge against its general credit or a charge against the general credit
or the taxing powers of the State or any political subdivision thereof. The Authority has no taxing power.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE II </B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>AUTHORIZATION AND TERMS OF BONDS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="authorization1"></a>Section 2.01. &nbsp;&nbsp;Authorization of Bonds. </B>&nbsp;The Authority hereby authorizes the issuance of the Bonds in the aggregate original principal amount
of $57,415,000 pursuant to the Act to finance costs of the Project. The Bonds shall be designated
&#147;Washington Economic Development Finance Authority Taxable Economic Development Revenue Bonds,
Series 2003A</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-14-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> (CSC of Tacoma LLC Detention Facility Project),&#148; and shall be issued and sold as directed by
the Authority in accordance with provisions of this Indenture.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>The Bonds shall be dated the date of their delivery; shall be fully registered as to both principal
and interest; shall be in Authorized Denominations, provided that no Bond shall represent more than
one maturity; shall be numbered separately in such manner and with any additional designation as
the Trustee deems necessary for purposes of identification; and shall bear interest from their date
payable on the first days of each April and October, commencing on October 1, 2003, at the following
per annum interest rates and mature on October 1 in the following years in the following principal
amounts:</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
  <TR valign=Bottom>
    <TH></TH>
    <TH><FONT face="Times New Roman, Times, Serif" size=2>Maturity Date</FONT></TH>
    <TH></TH>
    <TH colspan=2><FONT face="Times New Roman, Times, Serif" size=2>Principal Amount</FONT></TH>
    <TH></TH>
    <TH colspan=2><FONT face="Times New Roman, Times, Serif" size=2>Interest Rate</FONT></TH>
    <TH></TH>
    <TH></TH>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT></TD>
    <TD align=center><HR size="1" noshade color=#000000></TD>
    <TD align=LEFT></TD>
    <TD colspan="2" align=RIGHT><HR size="1" noshade color=#000000></TD>
    <TD align=LEFT></TD>
    <TD colspan="2" align=RIGHT><HR size="1" noshade color=#000000></TD>
    <TD align=LEFT></TD>
    <TD align=LEFT></TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width=15% align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2005</FONT></TD>
    <TD width=2% align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width=1% align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
    <TD width=15% align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2> 4,705,000</FONT></TD>
    <TD width=2% align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width=1% align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width=15% align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;1.60%</FONT></TD>
    <TD width=2% align=LEFT bgcolor="#E5FFFF">&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2006</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>4,905,000</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2.00</FONT></TD>
    <TD align=LEFT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2007</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>5,130,000</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2.50</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF">&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2008</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>5,390,000</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2.90</FONT></TD>
    <TD align=LEFT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2009</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>5,680,000</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>3.20</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF">&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2010</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>5,865,000</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>3.50</FONT></TD>
    <TD align=LEFT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2011</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>6,070,000</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>3.80</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF">&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2012</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>6,300,000</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>4.00</FONT></TD>
    <TD align=LEFT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>2013</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>6,550,000</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center bgcolor="#E5FFFF"><FONT face="Times New Roman, Times, Serif" size=2>4.10</FONT></TD>
    <TD align=LEFT bgcolor="#E5FFFF">&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
  <TR valign=Bottom>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>2014</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>6,820,000</FONT></TD>
    <TD align=LEFT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=RIGHT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD align=center><FONT face="Times New Roman, Times, Serif" size=2>4.10</FONT></TD>
    <TD align=LEFT>&nbsp;</TD>
    <TD align=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="registration1"></a>Section 2.02. &nbsp;&nbsp;Registration and Payment of Bonds.</B></FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trustee shall maintain at its offices books for the registration and transfer of Bonds. So long
as any Bonds remain Outstanding, the Trustee shall make all necessary provisions to permit the exchange
or registration of transfer of Bonds. The Trustee is authorized, on behalf of the Authority, to authenticate
and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this
Indenture. The Trustee shall be responsible for its representations contained in the Certificate
of Authentication on the Bonds.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Authority and the Trustee, each in its discretion, may deem and treat the registered Owner of
each Bond as the absolute owner thereof for all purposes, and neither the Authority nor the Trustee
shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described
in Section 2.02(f) hereof, but such Bond may be transferred as herein provided. All such payments
made as described in Section 2.02(f) shall be valid and shall satisfy and discharge the liability
of the Authority upon such Bond to the extent of the amount or amounts so paid.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Bonds shall initially be held in fully immobilized form by DTC acting as depository. To induce
DTC to accept the Bonds as eligible for deposit at DTC, the Authority has heretofore executed and
delivered to DTC a Blanket Issuer Letter of Representations (the &#147;Letter of Representations&#148;).
Neither the Authority nor the Trustee will have any responsibility or obligation to DTC participants
or the persons for whom they act as nominees (or any</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-15-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> successor depository) with respect to the Bonds in respect of the accuracy of any records maintained
by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor
depository) or any DTC participant of any amount in respect of the principal of or interest on Bonds,
any notice that is permitted or required to be given to registered Owners under this Indenture (except
such notices as shall be required to be given by the Authority to the Trustee or to DTC (or any successor
depository)), or any consent given or other action taken by DTC (or any successor depository) as
the registered Owner. For so long as any Bonds are held in fully-immobilized form hereunder, DTC
or its successor depository shall be deemed to be the registered Owner for all purposes hereunder,
and all references herein to the registered Owners shall mean DTC (or any successor depository) or
its nominee and shall not mean the owners of any beneficial interest in such Bonds.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>If any Bond shall be duly presented for payment and funds have not been duly provided by the Authority
on such applicable date, then interest shall continue to accrue thereafter on the unpaid principal
thereof at the rate stated on such Bond until such Bond is paid.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The transfer of any Bond may be registered and Bonds may be exchanged, but no transfer of any such
Bond shall be valid unless such Bond is surrendered to the Trustee with the assignment form appearing
on such Bond duly executed by the registered Owner or such registered Owner&#146;s duly authorized
agent in a manner satisfactory to the Trustee. Upon such surrender, the Trustee shall cancel the
surrendered Bond and shall authenticate and deliver, without charge to the registered Owner or transferee
therefor, a new Bond (or Bonds at the option of the new registered Owner) of the same date, maturity
and interest rate and for the same aggregate principal amount in any Authorized Denomination, naming
as registered Owner the person or persons listed as the assignee on the assignment form appearing
on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered
to the Trustee and exchanged, without charge, for an equal aggregate principal amount of Bonds of
the same date, maturity and interest rate, in any Authorized Denomination. The Trustee shall not
be obligated to register the transfer or to exchange any Bond during the 15 days preceding the date
any such Bond is to be redeemed.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Trustee may become the registered Owner of any Bond with the same rights it would have if it were
not the Trustee, and to the extent permitted by law, may act as depository for and permit any of
its officers or directors to act as member of, or in any other capacity with respect to, any committee
formed to protect the right of the registered Owners of Bonds.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Both principal of and interest on the Bonds shall be payable in lawful money of the United States
of America. Interest on the Bonds shall be calculated on the basis of a 360-day year and twelve 30-day
months. For so long as all Bonds are in fully immobilized form, payments of principal and interest
shall be made as provided in accordance with the operational arrangements of DTC referred to in the
Letter of Representations.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be
paid by check or draft mailed to the registered Owners at the addresses for such registered Owners
appearing on the Bond registration books on the 15th day of the month</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-16-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> preceding the interest payment date, and principal of the Bonds shall be payable upon presentation
and surrender of such Bonds by the registered Owners at the principal office of the Trustee; provided,
however, that if so requested in writing by the registered Owner of at least $1,000,000 principal
amount of Bonds, interest will be paid by wire transfer on the date due to an account with a bank
located within the United States.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="use1"></a><B>Section 2.03. &nbsp;&nbsp;Use of Depository.</B></FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Bonds shall be registered initially in the name of&nbsp;&#147;Cede &amp; Co.&#148;, as nominee of DTC,
with one Bond maturing on each of the maturity dates for the Bonds in an Authorized Denomination
corresponding to the total principal therein designated to mature on such date. Registered ownership
of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (i)
to any successor of DTC or its nominee, provided that any such successor shall be qualified under
any applicable laws to provide the service proposed to be provided by it;&nbsp;(ii) to any substitute
depository appointed by the Authority pursuant to subsection (b) below or such substitute depository&#146;s
successor; or (iii) to any person as provided in subsection (d) below.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the resignation of DTC or its successor (or any substitute depository or its successor) from
its functions as depository or a determination by the Authority to discontinue the system of book
entry transfers through DTC or its successor (or any substitute depository or its successor), the
Authority may hereafter appoint a substitute depository. Any such substitute depository shall be
qualified under any applicable laws to provide the services proposed to be provided by it.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the case of any transfer pursuant to clause (i) or (ii) of subsection (a) above, the Trustee shall,
upon receipt of all Outstanding Bonds, together with a written request by the Authority Representative,
issue a single new Bond for each maturity then Outstanding, registered in the name of such successor
or such substitute depository, or their nominees, as the case maybe, all as specified in such written
request of the Authority Representative.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event that (i) DTC or its successor (or substitute depository or its successor) resigns from
its functions as depository, and no substitute depository can be obtained, or (ii) the Authority
determines that it is in the best interest of the beneficial owners of the Bonds that such owners
be able to obtain such bonds in the form of Bond certificates, the ownership of such Bonds may then
be transferred to any person or entity as herein provided, and shall no longer be held in fully-immobilized
form. The Authority Representative shall deliver a written request to the Trustee, together with
a supply of definitive Bonds, to issue Bonds as herein provided in any Authorized Denomination. Upon
receipt by the Trustee of all then Outstanding Bonds together with a written request on behalf of
the Authority to the Trustee, new Bonds shall be issued in the appropriate denominations and registered
in the names of such persons as are requested in such written request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="mutilated1"></a>Section 2.04. &nbsp;&nbsp;Mutilated, Destroyed, Lost and Stolen Bonds</B>. If (i) any mutilated Bond is surrendered to the Trustee, or the Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Bond, and (ii) there is delivered to the Trustee
and the Authority</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-17-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> such security or indemnity as the Trustee reasonably may require to hold the Authority and the Trustee
harmless, then, in the absence of notice to the Trustee that such Bond has been acquired by a bona
fide purchaser and upon the Owner&#146;s paying the reasonable expenses of the Trustee and the Authority
and of any security or indemnity bond required by the Trustee, the Authority shall cause to be executed
(but need not prepare) and the Trustee shall authenticate and deliver, in exchange for such mutilated
Bond or in lieu of such destroyed, lost or stolen Bond, a new Bond of like principal amount, date
and tenor. If any such mutilated, destroyed, lost or stolen Bond has become, or will on or before
the next Bond Payment Date become, due and payable, the Trustee may, in its discretion, pay such
Bond when due instead of delivering a new Bond.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="execution1"></a>Section 2.05. &nbsp;&nbsp;Execution and Authentication of Bonds. </B>The Bonds shall be executed on behalf of the Authority with the manual or facsimile signature of its
Chair, and attested by the manual or facsimile signature of its Secretary. In case any officer who
shall have signed any of the Bonds shall cease to be such officer before the Bonds so signed or attested
shall have been authenticated or delivered by the Registrar or issued by the Authority, such Bonds
may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and
issuance, shall be as binding upon the Authority as though those who signed and attested the same
had continued to be such officers of the Authority. Also, any Bond may be signed on behalf of the
Authority by such persons as on the actual date of the execution of such Bond shall be the proper
officers although on the nominal date of such Bond any such person shall not have been such officer.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>Each Bond shall be manually authenticated by an authorized representative of the Trustee, without which
authentication no Bond shall be entitled to the benefits hereof. The Trustee shall authenticate the
Bonds for original issue and deliver them in accordance with a certificate of an Authority Representative
delivered to the Trustee requesting such authentication and delivery upon payment therefor and stating
the amount to be paid therefor to the Trustee for the account of the Authority.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="nonpresentment1"></a>Section 2.06. &nbsp;&nbsp;Non-Presentment of Bonds. </B>In the event any Bond shall not be presented for payment when the principal thereof and premium, if
any, becomes due, either at maturity or otherwise, or at the date fixed for redemption thereof, if
money sufficient to pay the principal of, premium, if any, and interest on, such Bond shall have
been deposited hereunder for such payment, all liability to the Owner thereof for the payment of
such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be
the duty of the Trustee to hold such money as provided herein, without liability for interest thereon,
for the benefit of the Owner of such Bond, who shall thereafter be restricted exclusively to such
money, for any claim of whatever nature on his part under this Indenture or on, or with respect to,
said Bond.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE III </B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>REDEMPTION OF BONDS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="nooptional1"></a>Section 3.01. &nbsp;&nbsp;No Optional Redemption. </B>The Bonds are not subject to optional redemption prior to their stated maturities.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-18-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD colspan="2" valign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="reserved1"></a>Section 3.02. &nbsp;Reserved.</B></FONT></TD>
</TR>
<TR>
<TD width="48" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="extraordinary1"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 3.03. &nbsp;&nbsp;Extraordinary Optional Redemption. </B>The Bonds are subject to extraordinary optional redemption prior to maturity at any time, at the option
of the Borrower, at a redemption price equal to 100% of the principal amount of Bonds being redeemed,
plus interest accrued to the date fixed for redemption:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in part,&nbsp;in the event of damage,&nbsp;destruction or condemnation (or conveyance in lieu of condemnation)
of all or any part of the property of the Borrower, with the approval of the Insurer, such redemption
to be made with the net proceeds of hazard insurance or any award received as a result of such condemnation
(or conveyance in lieu thereof), which are not applied to restore the Project or acquire replacement
property constituting part of the Project;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in whole, following an event of damage, destruction or condemnation (or conveyance in lieu of condemnation)
of any or any part of the property of the Borrower, at the option of the Borrower, with the approval
of the Insurer, if the Borrower in good faith determines that the continued operation of the Project
following such damage, destruction or condemnation is impracticable, uneconomical or undesirable
for any reason.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="selection1"></a>Section 3.04. &nbsp;&nbsp;Selection of Bonds to be Redeemed. </B>If less than all of the Bonds are to be redeemed, then the particular Bonds or portions thereof to
be redeemed will be selected by the Trustee in such random selection manner as the Trustee deems
appropriate; provided that the portion of any Bond to be redeemed and the portion not to be redeemed
each is required to be in an Authorized Denomination.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="partial1"></a>Section 3.05. &nbsp;&nbsp;Partial Redemption of Bonds. </B>Upon the selection and call for redemption of, and the surrender of, any Bond for redemption in part
only, the Authority shall cause to be executed (but need not prepare) and the Trustee shall authenticate
and deliver to or upon the written order of the Owner thereof, at the expense of the Borrower, a
new Bond or Bonds of Authorized Denominations in an aggregate principal amount equal to the unredeemed
portion of the Bond surrendered.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="effect1"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 3.06. &nbsp;&nbsp;Effect of Call for Redemption. </B>On the date designated for redemption by notice given as herein provided, the Bonds so called for redemption
shall become and be due and payable at the redemption price provided for redemption of such Bonds
on such date. If on the date fixed for redemption money sufficient for payment of the redemption
price and accrued interest is held by the Trustee as provided herein, interest on the Bonds so called
for redemption shall cease to accrue, such Bonds shall cease to be entitled to any benefit or security
hereunder except the right to receive payment from the money held by the Trustee and the amount of
such Bonds so called for redemption shall be deemed paid and no longer Outstanding.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;<a name="notice1"></a>Section 3.07. &nbsp;&nbsp;Notice of Redemption.</b> Notice of any redemption is required to be given at least 30 days and not more than 60 days prior to
the date fixed for redemption by first class mail to the Owners of the Bonds to be redeemed. However,
the failure to give a notice of redemption or a defect in it does not affect (i) the validity of
any proceedings for the redemption of a Bond if the Owner of such Bond receives actual notice of
the redemption from any source or</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-19-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(ii) the validity of the proceedings for the redemption of any Bonds for which proper notice was given.
If any Bonds have been called for redemption but have not yet been presented to the Trustee for payment
within 60 days after the date set for redemption, the Trustee is required to send to the owners of
those Bonds a second notice of redemption, within 75 days of the date set for redemption. So long
as DTC is acting as securities depository for the Bonds in accordance with Section 2.02, notice of
any redemption of the Bonds shall be sent by the Trustee only to Cede &amp; Co. Information also
will be sent in such manner as the Trustee deems appropriate to the registered securities depositories
and national information services that disseminate redemption notices that the Trustee determines
to be customary or appropriate.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>If at the time of mailing of any notice of optional redemption pursuant to Section 3.01 or extraordinary
optional redemption pursuant to Section 3.03, there shall not have been deposited with the Trustee
money sufficient to redeem all the Bonds called for redemption, such notice may (if requested by
the Borrower) state that it is subject to the deposit of the redemption money with the Trustee not
later than the opening of business on the redemption date and will be of no effect unless such money
is so deposited.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE IV</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>FORM OF BONDS</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="form1"></a>Section 4.01. &nbsp;&nbsp;Form of Bonds. </B>The Bonds shall be in substantially the form set forth on Exhibit A hereto, with such necessary and
appropriate omissions, insertions and variations as are permitted or required hereby. </FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE V</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>REVENUES AND FUNDS</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="creation1"></a>Section 5.01. &nbsp;&nbsp;Creation of Funds and Accounts. </B>Upon the issuance of the Bonds, the Trustee shall create the following funds and accounts to be held
in trust for the Owners of the Bonds:</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bond Fund, which shall consist of (i) the Principal Account, (ii) the Interest Account, and (iii) the Redemption Account;</FONT></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of Issuance Fund;</FONT></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project Fund,&nbsp;which&nbsp;shall&nbsp;consist&nbsp;of (i)&nbsp;General&nbsp;Costs&nbsp;Account, (ii) Construction Costs Account, and (iii) Retainage Account;  </FONT></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue Fund;</FONT></TD>
</TR>
<TR>
<TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt Service Reserve Fund;</FONT></TD>
</TR>
<TR>
<TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Reserve Fund;</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-20-</FONT></P>
<HR color=#000000 noshade>

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<TR>
  <TD colspan="2" valign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repair and Replacement Fund; and </FONT></TD>
</TR>
<TR>
<TD width="93" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance and Property Taxes Fund.</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="application1"></a>Section 5.02. &nbsp;&nbsp;Application of Bond Proceeds and Other Money. </B>The Trustee shall receive at the time of issuance of the Bonds the proceeds of the sale of the Bonds
of $52,471,878.12 (net of the premium to the Insurer, which shall be paid directly to the Insurer
and net of Original Issue Discount and Underwriters&#146; Discount) and $7,914,370 of the proceeds
of the Subordinated Noted and shall deposit such funds as follows:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Interest Account of the Bond Fund, $2,302,400.79;</FONT></TD>
</TR>
<TR>
<TD width="99" valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Debt Service Reserve Fund, $5,741,500;</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Cost of Issuance Fund, $2,278,626.00;</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Project Fund, $41,399,351.33;</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Insurance and Property Taxes Fund, $250,000; and</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to the Repair and Replacement Fund, $500,000.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="cost1"></a>Section 5.03. &nbsp;&nbsp;Cost of Issuance Fund. </B>A deposit to the credit of the Cost of Issuance Fund shall be made as required by the provisions of
Section 5.02 hereof. Money on deposit in the Cost of Issuance Fund shall be applied to pay the costs
of issuing the Bonds, including, without limitation, all printing expenses in connection with the
Bonds and the preliminary official statement and official statement pertaining to the Bonds; rating
agency fees; legal fees; review advisors fees; the initial fees and expenses of the Authority; the
initial Trustee Fees and Expenses; and all other fees and expenses incurred in connection with the
issuance of the Bonds. The costs described above shall be payable upon submission to the Trustee
of a Written Request from the Borrower in the form of Exhibit D hereto stating that the amount indicated
thereof is justly due and owing, has not been the subject of another Written Request that has been
paid, and is a proper cost of issuing the Bonds. Any money remaining in the Cost of Issuance Fund
on such date as the Borrower notifies the Trustee that all costs of issuance of the Bonds have been
paid shall be transferred to the Interest Account of the Bond Fund.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="revenue1"></a>Section 5.04. &nbsp;&nbsp;Revenue Fund.</B></FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
  <TR>
    <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>Monthly Disbursements. </I>All Revenues shall be deposited in the Revenue Fund as and when received. All money held on deposit in the Revenue Fund shall be disbursed by the Trustee on the following dates in the following order of priority:</FONT></TD>
  </TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>FIRST: on the twentieth day of each month, commencing October 20, 2004, for deposit in the Interest
Account of the Bond Fund an amount (after taking into consideration amounts then on deposit in the Interest
Account) equal to: (a) l/6th of the interest due on the Bonds on the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-21-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
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<TR>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> next Bond Payment Date; (b) all amounts due as to interest on the Bonds on the twentieth day of any
previous calendar month pursuant to this paragraph that have not otherwise been credited to the Interest
Account of the Bond Fund pursuant to this paragraph; and (c) to pay any Reimbursement Obligations
described in clause (i) of the definition of Reimbursement Obligations;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>SECOND: on the twentieth day of each month, (a) commencing after the Trustee first receives funds pursuant
to the Assignment of Claims, an amount for deposit in the Principal Account of the Bond Fund (after
taking into consideration earnings on the Principal Account of the Bond Fund) equal to a fraction
of the principal due on the Bonds on October 1, 2005, which fraction shall have a numerator of 1
and a denominator equal to the number of months from such date (including such month) through and
including September of 2005; and (b) thereafter: (i) l/12th of the principal due on the Bonds on
the next Bond Payment Date, (ii) all amounts due as to principal on the Bonds on the twentieth day
of any preceding month that have not otherwise been credited to the Principal Account of the Bond
Fund pursuant to this paragraph; and (iii) to pay any Reimbursement Obligations described in clause
(ii) of the definition of Reimbursement Obligations;</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THIRD: on the twentieth day of each month, to pay or reimburse the Trustee Fees and Expenses then due
and owing and to pay to the Insurer 1/12 of the Surveillance Fee and the Reimbursement Obligations
described in clause (iii) of the definition of Reimbursement Obligations;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>FOURTH: on the twentieth day of each month, to the Debt Service Reserve Fund, the amount necessary
to replenish the Debt Service Reserve Fund as required in Section 5.07 hereof;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>FIFTH: on the twentieth day of each month, to the Insurer, the amount required to pay any Outstanding
Reimbursement Obligations described in clause (iv) of the definition of Reimbursement Obligations;</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>SIXTH: on the twentieth day of each month, to the Insurance and Property Taxes Fund, (i) an amount
equal to 1/12 of the then applicable Annual Insurance and Property Tax, plus (ii) an amount equal
to any shortfall between the amount on deposit in the Insurance and Property Taxes Fund after making
such disbursement and all amounts due and payable (to the Trustee&#146;s actual knowledge) for Insurance
premiums or property tax payments on or prior to the twentieth day of the following month, plus (iii)
any amount previously due under this paragraph that remains unpaid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>SEVENTH: on the twentieth day of each month, to the Operating Reserve Fund, the amount necessary to
fund or replenish the Operating Reserve Fund as required in Section 5.09 hereof;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>EIGHTH: on the twentieth day of each month, to the Repair and Replacement Fund, the amount necessary
to replenish the Repair and Replacement Fund as required in Section 5.08 hereof;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-22-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>


<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>NINTH: on the twentieth day of each month, to the Borrower, (i) an amount equal to the User Fee less
the amounts disbursed on such day pursuant to Paragraphs <U>First</U> through <U>Fifth</U> of this Section 5.04, plus (ii) any amount previously due under this paragraph that remains unpaid;</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>TENTH: on the twentieth day of each month, the amount, if any, owed by Borrower to the holder of the
Subordinated Note; and</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>ELEVENTH: on the twentieth day of each month, the remaining balance shall be paid to the Operator;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>provided, however, that the disbursements described in Paragraphs <U>Ninth</U>, <U>Tenth</U> and <U>Eleventh</U> shall not be made if (i) during the Facility Revenue Collection Period ending on the day prior to such
scheduled disbursement date, the Trustee has received Facility Revenues in an amount less than the
Monthly Minimum Amount, (ii) the INS Contract is no longer in effect, or (iii) the amount of Facility
Revenues received during the previous six Facility Revenue Collection Periods was less than 1.1 times
the amount required to be paid or transferred during such six-month period pursuant to Paragraphs <U>First</U> through <U>Eighth</U> of this Section 5.04 (the &#147;coverage amount&#148;). In any such event the following shall occur:
(X) Trustee shall promptly give notice to the Insurer, Borrower and Operator of failure to receive
the Monthly Minimum Amount and the amount of the deficiency in Facility Revenues for such Facility
Revenue Collection Period, termination of the INS Contract, or failure to maintain the coverage amount,
as applicable; (Y) all amounts in the Revenue Fund available after making the disbursements described
in Paragraphs <U>First</U> through <U>Eighth</U> shall be transferred to a Supplemental Reserve Fund or, at the direction of the Insurer, to the Bond
Redemption Account and applied as provided in Section 5.04(b) or Section 5.06(c); and (iii) disbursements
to Borrower and Operator pursuant to Paragraphs <u>Ninth</u>, <u>Tenth</u> and <u>Eleventh</u> shall resume on the twentieth
day of the month following written receipt by the Trustee of written authorization from the Insurer.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>Supplemental Reserve Fund.</I> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds shall be deposited into the Supplemental Reserve Account as provided in Section 5.04(a). If money
in the Revenue Fund is insufficient to make any of the disbursements described in Paragraphs <U>First</U> through <U>Seventh</U> of Section 5.04, the Trustee shall use money in the Supplemental Reserve Account to make all or a
portion of such disbursements. Operator may requisition funds from the Supplemental Reserve Account
to pay Operating Costs of the Detention Facility, in an amount per month not to exceed 1/12 of the
amount of the then-applicable Annual Budget or in such additional amount as may be approved by Insurer.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="project1"></a>Section 5.05. &nbsp;&nbsp;Project Fund.</B> &nbsp;&nbsp;&nbsp;An initial deposit to the credit of the Project Fund shall be made pursuant to Section 5.02 hereof.
Upon the issuance of the Bonds, the Borrower, the Construction Manager and the Architect shall certify
to the Trustee the amount of such deposit to be allocated to the Construction Costs Account which
amount shall be equal to the &#147;Guaranteed Maximum Price&#148; under the Construction Contract
less the amount paid with respect thereto by the Developer prior to the date of such certificate)
and to the Retainage Account. Money on deposit in the Construction Costs Account or the Retainage
Account shall be held in such account and disbursed to pay amounts due to the General Contractor
under the Construction Contract, pursuant to a requisition substantially in the form of Exhibit B
hereto approved by the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-23-</FONT></P>
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<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> Construction Manager and Architect and accompanied by a &#147;Certificate of Payment&#148; issued
in accordance with the Construction Contract. Upon the issuance of the Bonds, Borrower shall submit
to the Trustee a requisition in accordance with the provisions of this Section 5.05 to provide for
payment to the General Contractor of all amounts then due and owing under the Construction Contract.
Money on deposit in the General Costs Account, together with, all other money received by the Trustee
when accompanied by a direction from a Borrower Representative not inconsistent with the Loan Agreement
or this Indenture that such money is to be paid into the General Costs Account, shall be held in
such account and disbursed to pay costs of the Project, pursuant to a requisition substantially in
the form of Exhibit B hereto approved by the Construction Manager and Architect.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Borrower shall promptly give to the Trustee and the Insurer written notice of Completion of the Detention
Facility together with a requisition (prepared in accordance with the provisions of this Section
5.05) for any &#147;Final Payment&#148; required to be made to General Contractor under the Construction
Contract. Following receipt of such notice the Trustee shall transfer any funds remaining in the
Project Fund, less the amount of any such &#147;Final Payment&#148; to be made to the General Contractor
and less an amount equal to all interest earned on the Retainage Account, to the Revenue Fund, to
be applied as provided in Section 5.04, and the Project Fund and all accounts therein shall be closed.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><b><a name="bond1"></a>Section 5.06. &nbsp;&nbsp;Bond Fund.</b></FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Interest Account. </i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money in the Interest Account shall be used to pay interest on the Bonds as it becomes due. The Trustee shall deposit to the Interest Account money from
the following sources, in the following order of priority, so that on or before the last Business
Day before each Bond Payment Date there is on deposit in the Interest Account an amount that is at
least equal to the amount of interest payable on the Bonds on such Bond Payment Date:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=130></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From the Revenue Fund, in accordance with Paragraph <U>First</U> of Section 5.04;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By demand on the Borrower pursuant to Section 4.1 of the Loan Agreement;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> From the Supplemental Reserve Fund or Redemption Account;</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(4)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From the Repair and Replacement Fund, in accordance with Section 5.08;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(5)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From&nbsp;the&nbsp;Operating&nbsp;Reserve&nbsp;Fund,&nbsp;in&nbsp;accordance&nbsp;with Section 5.09;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(6)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From&nbsp;the&nbsp;Debt&nbsp;Service Reserve Fund,&nbsp;in&nbsp;accordance&nbsp;with Section 5.07.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-24-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
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<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>Principal Account. </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money in the Principal Account shall be used to retire Bonds by payment at their scheduled maturity
and to pay sinking account redemption requirements for Bonds on sinking account redemption dates.
The Trustee shall deposit to the Principal Account money from the following sources, in the following
order of priority, so that on or before the last Business Day before each Bond Payment Date on which
Bonds mature or which is a sinking account redemption date, there is on deposit in the Principal
Account an amount that is at least equal to the principal payable on the Bonds on such Bond Payment Date:</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=130>&nbsp;</TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From the Revenue Fund, in accordance with Paragraph <U>Second</U> of Section 5.04;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135>&nbsp;</TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By demand on the Borrower pursuant to Section 4.1 of the Loan Agreement;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> From the Supplemental Reserve Fund or Redemption Account;</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=135>&nbsp;</TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(4)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From the Repair and Replacement Fund, in accordance with Section 5.08;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(5)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From&nbsp;the&nbsp;Operating&nbsp;Reserve&nbsp;Fund,&nbsp;in&nbsp;accordance&nbsp;with Section 5.09;</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135></TD>
<TD valign=top width=45><FONT face="Times New Roman, Times, Serif" size=2>(6)</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>From the Debt&nbsp;Service Reserve&nbsp;Fund,&nbsp;in&nbsp;accordance with Section 5.07.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I>Redemption Account. </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon receipt by the Trustee of money accompanied by a certificate of a Borrower Representative stating
that such money is to be applied to redeem Bonds in accordance with Section 3.03 hereof and specifying
the amount and maturities, if applicable, of Bonds to be redeemed, such money shall be credited to
the Redemption Account and applied promptly by the Trustee to retire Bonds by purchase, redemption
or both purchase and redemption in accordance with the Borrower&#146;s directions. Any such purchase
shall be made at the best price obtainable with reasonable diligence and no Bond shall be so purchased
at a cost or price (including brokerage fees or commissions or other charges) which exceeds the redemption
price at which such Bond could be redeemed on the date of purchase or on the next succeeding date
upon which such Bond is subject to redemption plus accrued interest to the date of purchase. Any
such redemption shall be of Bonds then subject to redemption at the redemption price then applicable
for redemption of such Bonds.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>At the direction of the Insurer, money deposited in the Redemption Account pursuant to the proviso
of Section 5.04 shall be applied to pay principal of and interest on Bonds or to purchase Bonds.
Any such purchase shall be made at the best price obtainable with reasonable diligence and no Bond
shall be so purchased at a cost or price (including brokerage fees or commissions or other charges)
which exceeds the redemption price at which such Bond could be redeemed on the date of purchase or
on the next succeeding date upon which such Bond is subject to redemption plus accrued interest to
the date of purchase.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-25-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2> Any balance remaining in the Redemption Account after the purchase or redemption of Bonds in accordance
with the Borrower&#146;s directions shall be transferred to the Interest Account of the Bond Fund.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Upon the refunding or providing for payment in accordance with Article X of less than all Bonds
so that the Bonds refunded or provided for are no longer Outstanding, amounts in the Bond Fund which
would have been applied to payments on the Bonds refunded or provided for shall, upon the Borrower&#146;s
directions, be released for application in accordance with those directions.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="debt1"></a>Section 5.07. Debt Service Reserve Fund. </B>An initial deposit to the credit of the Debt Service Reserve Fund shall be made pursuant to Section
5.02 hereof. Such money shall be held in the Debt Service Reserve Fund and disbursed as hereinafter
provided.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Bonds shall be secured by the Debt Service Reserve Fund in an amount equal to 10% of the initial
principal amount of the Bonds (the &#147;Debt Service Reserve Requirement&#148;). Amounts in the
Debt Service Reserve Fund may be used only to pay principal of and interest on the Bonds in the event
that all other amounts held by the Trustee and available therefor are insufficient.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Debt Service Reserve Fund shall be fully funded at closing with cash or permitted investments in
an amount equal to the Debt Service Reserve Requirement. No letter of credit, surety bond, insurance
policy or other credit facility may be credited to the Debt Service Reserve Fund without the prior
written consent of the Insurer. The stated maturity of investments in the Debt Service Reserve Fund
at any time may not exceed five years. The Trustee must determine the value of the Debt Service Reserve
Fund investments no less frequently than semiannually (and monthly from the date of any deficiency
until such deficiency is cured).</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Borrower must make payments sufficient to restore the Debt Service Reserve Fund to the Debt Service
Reserve Requirement (a) in twelve consecutive equal monthly installments beginning in the month following
any withdrawal from the Debt Service Reserve Fund which causes the amount therein to be less than
the Debt Service Reserve Requirement, or (b) in four (4) consecutive equal monthly installments beginning
in the month following any calculation of the value of the Debt Service Reserve Fund at an amount
less than the reserve requirement.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If on a Bond Payment Date, the amount in the Bond Fund after making all other required deposits therein
is insufficient to pay the principal, premium, if any, and interest then due on the Bonds, the Trustee
shall transfer an amount from the Debt Service Reserve Fund to the appropriate account within the
Bond Fund sufficient, together with the funds then in such account or accounts in the Bond Fund,
to provide for such payment, as provided in Section 5.06 hereof. Upon any such transfer, the Trustee
shall immediately notify the Borrower of the amount of such transfer, and the Borrower shall replenish
the Debt Service Reserve Fund in accordance with the Loan Agreement.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-26-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Interest earned on the investment of money in the Debt Service Reserve Fund shall be transferred to
the Bond Fund and applied on the next Bond Payment Date to the payment of principal, premium, if
any, and interest on the Bonds.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="repair1"></a>Section 5.08. Repair and Replacement Fund. </B>An initial deposit to the credit of the Repair and Replacement Fund shall be made pursuant to Section
5.02. Trustee shall also deposit into the Repair and Replacement Fund Additional Payments received
from the Borrower (or from the Operator on behalf of the Borrower) in accordance with Section 4.2(f)
of the Loan Agreement. In accordance with Paragraph <U>Eighth</U> of Section 5.04, the Trustee shall make disbursements into the Repair and Replacement Fund as necessary
to maintain a balance therein of at least $500,000. All amounts held in the Repair and Replacement
Fund shall be invested solely in Permitted Investments.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Money on deposit in the Repair and Replacement Fund shall be used solely for the payment of the repair
and replacement of capital items of the Project, pursuant to a requisition of the Borrower or the
Operator in substantially the form set forth on Exhibit C hereto.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Borrower must make payments sufficient to restore the Repair and Replacement Fund to the reserve
requirement specified above (a) in twelve consecutive equal monthly installments beginning in the
month following any withdrawal from the Repair and Replacement Fund which causes the amount therein
to be less than the reserve requirement specified above, or (b) in four consecutive equal monthly
installments beginning in the month following any calculation of the value of the Repair and Replacement
Fund at an amount less than the reserve requirement specified above.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Amounts in the Repair and Replacement Fund may be used to pay principal and interest on the Bonds in
accordance with Section 5.06.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="operating1"></a>Section 5.09. Operating Reserve Fund. </B>In accordance with Paragraph <U>Seventh</U> of Section 5.04, the Trustee shall make disbursements into the Operating Reserve Fund until the balance
therein equals at least $600,000. All amounts held in the Operating Reserve Fund shall be invested
solely in a money market mutual fund described in paragraph (4) of the definition of Permitted Investments.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Money on deposit in the Operating Reserve Fund shall be paid to or upon order of the Borrower or the
Operator to pay, or to reimburse the Borrower or the Operator for the payment of, any Operating Costs
pursuant to a requisition substantially in the form of Exhibit C hereto. Upon any such transfer,
the Trustee shall immediately notify the Borrower of such transfer and the Borrower shall replenish
the Operating Reserve Fund in accordance with the Loan Agreement.</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the Use Agreement, the Operator must make payments sufficient to restore the Operating
Reserve Fund to the reserve requirement specified above (a) in twelve consecutive equal monthly installments
beginning in the month following any withdrawal from the Operating Reserve Fund which causes the
amount therein to be less than the reserve requirement specified above, or (b) in four consecutive
equal monthly installments beginning in the month following</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-27-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> any calculation of the value of the Operating Reserve Fund at an amount less than the reserve requirement
specified above.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Amounts in the Operating Reserve Fund may be used to pay principal and interest on the Bonds in accordance
with Section 5.06. Any money remaining in the Operating Reserve Fund upon the payment in full of
the Bonds, either at maturity or upon redemption or discharge in accordance with Article X hereof,
and if all Reimbursement Obligations have been paid in full, shall be paid (i) to the Operator, so
long as no event of default has occurred and is continuing under the Use Agreement, and otherwise
(ii) to the Borrower.</FONT></TD></TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="insurance1"></a>Section 5.10. &nbsp;&nbsp;Insurance and Property Taxes Fund. </B>An initial deposit to the credit of the Insurance and Property Taxes Fund shall be made pursuant to
Section 5.02. Trustee shall also deposit into the Insurance and Property Taxes Fund Additional Payments
received from the Borrower (or from the Operator on behalf of the Borrower) in accordance with Section
4.2(g) of the Loan Agreement. In accordance with Paragraph <U>Sixth</U> of Section 5.04, the Trustee shall also make disbursements from the Revenue Fund into the Insurance
and Property Taxes Fund. The Trustee shall apply money in the Insurance and Property Taxes Fund to
pay premiums for Insurance and property taxes for the Detention Facility on or before the date such
premiums or taxes are due. All amounts held in the Insurance and Property Taxes Fund shall be invested
solely in a money market mutual fund described in paragraph (4) of the definition of Permitted Investments.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=48>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="investment1"></a>Section 5.11. &nbsp;&nbsp;Investment of Money Held by the Trustee.</B> &nbsp;</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Money in all funds and accounts held by the Trustee shall be invested by the Trustee, as soon as possible
upon receipt of immediately available funds at its principal corporate trust office, to the fullest
extent possible in Permitted Investments as directed, in writing or by telephonic or other reasonable
means, by a Borrower Representative, or in the absence of direction by the Borrower in a money market
mutual fund described in paragraph (4) of the definition of Permitted Investments.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Amounts credited to a fund or account may be invested, together with amounts credited to one or more
other funds or accounts, in the same Permitted Investment, provided that the Trustee maintains separate
records for each fund and account and such investments are accurately reflected therein.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>The Trustee may purchase or sell securities herein authorized through itself or a related subsidiary
as principal or agent.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>The Trustee shall sell at the best price obtainable, or present for redemption, any Permitted Investment
purchased by it as an investment whenever it shall be necessary in order to provide money to meet
any payment or transfer from the fund or account for which such investment was made.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>The Authority acknowledges that regulations of the Comptroller of the Currency grant the Authority
the right to receive brokerage confirmations of security transactions</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-28-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2> as they occur. The Authority specifically waives such notification to the extent permitted by law
and acknowledges that the Borrower will receive periodic cash transaction statements which will detail
all investment transactions.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="liability1"></a>Section 5.12. &nbsp;&nbsp;Liability of Trustee for Investments. </B>The Trustee shall not be liable for any loss resulting from the making of any investment made in accordance
with the provisions hereof, except for its own negligence, willful misconduct or breach of trust.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="investment2"></a>Section 5.13. &nbsp;&nbsp;Investment Income. </B>Except as otherwise provided herein, interest income and gain received, or loss realized, from investments
or money in any fund or account shall be credited, or charged, as the case may be, to such respective
fund or account. Income and gain from Redemption Account investments may be transferred to any other
fund or account upon direction of the Borrower. Investment income and gain credited to the Interest
Account or the Principal Account shall be a credit against the next forthcoming Loan Agreement payment
to be deposited to such respective account.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="repayment1"></a></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.14. &nbsp;&nbsp;Repayment to the Borrower from Amounts Remaining in Bond Fund.</B> Any amounts remaining in the Bond Fund (i) after all of the Outstanding Bonds shall be deemed paid
and discharged under the provisions of this Indenture, (ii) after all Reimbursement Obligations have
been paid, and (iii) after payment of all Trustee Fees and Expenses and any fees, charges and expenses
of any paying agents and of all other amounts required to be paid under this Indenture and the Loan
Agreement, shall be paid to the Borrower to the extent that those amounts are in excess of those
necessary to effect the payment and discharge of the Outstanding Bonds and the Reimbursement Obligations.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="disposition1"></a>Section 5.15. &nbsp;&nbsp;Disposition of Unclaimed Funds. </B>Notwithstanding any provisions of this Indenture, and subject to applicable unclaimed property laws,
any money deposited with the Trustee or any paying agent in trust for the payment of principal of,
premium of or interest on the Bonds remaining unclaimed for four years after the principal of all
Bonds has become due and payable (whether at maturity, by redemption or declaration as provided in
this Indenture): (a) shall be reported and disposed of by the Trustee in accordance with the unclaimed
property laws of the State, to the extent that such provisions are applicable to such money; or (b)
to the extent that such provisions are not applicable to such money, shall be paid to the Borrower,
whereupon all liability of the Authority and the Trustee with respect to such money&nbsp;shall cease,
and the Owners of the Bonds shall thereafter look solely to the Borrower for payment of any amounts
then due. All money held by the Trustee or any paying agent and subject to this Section shall be
held uninvested and without liability for interest thereon.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="additional1"></a>Section 5.16. &nbsp;&nbsp;Additional Funds and Accounts. </B>In addition to the funds and accounts specifically authorized under this Article, the Trustee shall
have the authority to create and maintain such other funds and accounts as it may deem necessary
for proper administration hereunder.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-29-</FONT></P>

<hr color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2> <B>ARTICLE VI</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CERTAIN COVENANTS; LIMITATION OF LIABILITY</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="payment1"></a>Section 6.01. &nbsp;&nbsp;Payment of Principal and Interest. </B>&nbsp;&nbsp;&nbsp;Subject to the limited sources of payment specified herein, the Authority covenants that it will promptly
cause to be paid amounts due on the Bonds at the place, on the dates and in the manner provided herein
and in said Bonds according to the terms thereof. The amounts due on the Bonds are payable solely
from money held by the Trustee hereunder, all of which is hereby specifically assigned and pledged
to such payment in the manner and to the extent specified herein and nothing herein or in the Bonds
shall be construed as assigning or pledging any other funds or assets of the Authority.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="performance1"></a>Section 6.02. &nbsp;&nbsp;Performance of Covenants. </B>&nbsp;&nbsp;&nbsp;None of the provisions of this Indenture shall require the Authority to expend or risk its own
funds or to otherwise incur financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers hereunder, unless payable from the revenues pledged hereunder,
or the Authority shall first have been adequately indemnified to its satisfaction against the cost,
expense, and liability which may be incurred thereby. The Authority shall not be under any obligation
hereunder to perform any record keeping or to provide any legal services, it being understood that
such services shall be performed or provided by the Borrower. The Authority covenants that it will
faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions
expressly contained in this Indenture, in any and every Bond executed, authenticated, and delivered
hereunder in the Loan Agreement and in all of its proceedings pertaining thereto; provided, however,
that (a) the Authority shall not be obligated to take any action or execute any instrument pursuant
to any provision hereof until it shall have been requested to do so by the Borrower or the Trustee,
and (b) the Authority shall have received the instrument to be executed, and, at the Authority&#146;s
option, shall have received assurance satisfactory to the Authority that the Authority shall be reimbursed
for its reasonable expenses incurred or to be incurred in connection with taking such action or executing such instrument.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="instruments1"></a>Section 6.03. &nbsp;&nbsp;Instruments of Further Assurance. </B>&nbsp;&nbsp;&nbsp;The Authority covenants that it will do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered by the parties within its control, such instruments supplemental hereto
and such further acts, instruments and transfers as the Trustee may reasonably require for the better
assuring, transferring, mortgaging, conveying, pledging, assigning and confirming unto the Trustee
the Authority&#146;s interest in and to the payments under the Loan Agreement and all other interests,
revenues and receipts pledged hereby to the payment of the principal of, premium, if any, and interest
on the Bonds in the manner and to the extent contemplated herein. The Authority shall be under no
obligation to prepare, record or file any such instruments or transfers.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="rights1"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 6.04. &nbsp;&nbsp;Rights Under Loan Agreement. </B>&nbsp;&nbsp;&nbsp;The Authority agrees that the Trustee in its own name or in the name of the Authority upon notice to
the Authority may enforce all rights of the Authority and all obligations of the Borrower (except
with respect to the Authority Unassigned Rights) under the Loan Agreement, for and on behalf of the
Owners, whether or not the Authority has undertaken to enforce such rights and obligations.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-30-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2> <B><a name="protection1"></a>Section 6.05. &nbsp;Protection of Lien. </B>&nbsp;&nbsp;&nbsp;The Authority hereby agrees not to make or create or to agree to permit to be made or created any assignment
or lien on a parity with or having priority or preference over the assignment and lien hereof upon
the interests granted hereby or any part thereof except as otherwise specifically provided herein.
The Authority agrees that no obligation the payment of which is secured by property or revenues pledged
hereunder will be issued by it except in lieu of, or upon transfer of registration or exchange of,
any Bond as provided herein.</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2><B><a name="limitation1"></a></B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 6.06. &nbsp;Limitation of Liability.</B></FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I><I>Reliance by the Authority on Facts or Certificates. </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything in this Indenture to the contrary notwithstanding, it is expressly understood and agreed by
the parties hereto that the Authority may rely conclusively on the truth and accuracy of any certificate,
opinion, notice, or other instrument furnished to the Authority by the Trustee or the Borrower as
to the existence of any fact or state of affairs required hereunder to be noticed by the Authority.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I><I>Immunity of Authority&#146;s Directors, Officers, Counsel, Review Advisors, </I><I>and Agents. </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No recourse shall be had for the enforcement of any obligation, covenant, promise, or agreement of
the Authority contained in this Indenture, any other Authority Documents, or in any Bond or for any
claim based hereon or otherwise in respect hereof or upon any obligation, covenant, promise, or agreement
of the Authority contained in any agreement, instrument, or certificate executed in connection with
the Project or the issuance and sale of the Bonds, against any of the Authority Indemnified Parties,
whether by virtue of any Constitutional provision, statute, or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly agreed and understood that no personal
liability whatsoever shall attach to, or be incurred by, any of the Authority Indemnified Parties,
either directly or by reason of any of the obligations, covenants, promises, or agreements entered
into by the Authority with the Borrower or the Trustee, or to be implied therefrom as being supplemental
hereto or thereto, and that all personal liability of that character against each and every Authority
Indemnified Party is, by the execution of the Bonds, this Indenture, and the other Authority Documents,
and as a condition of, and as part of the consideration for, the execution of the Bonds, this Indenture,
and the other Authority Documents, is expressly waived and released.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I><I>No Pecuniary Liability of the Authority. </I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No agreements or provisions contained herein, nor any agreement, covenant, or undertaking by the Authority
in connection with the Project or the issuance, sale, and/or delivery of the Bonds shall give rise
to any pecuniary liability of the Authority or a charge against its general credit, or shall obligate
the Authority financially in any way, except as may be payable from the revenues pledged hereby for
the payment of the Bonds and their application as provided in this Indenture. No failure of the Authority
to comply with any term, covenant, or agreement contained in the Bonds, this Indenture or the Loan
Agreement, or in any document executed by the Authority in connection with the Project or the issuance
and sale of the Bonds, shall subject the Authority to liability for any claim for damages, costs,
or other financial or pecuniary charge, except to the extent the same can be paid from revenues derived
under the Loan Agreement. Nothing herein shall preclude a proper party in interest from seeking and
obtaining, to the extent permitted by law, specific performance against the Authority for any failure
to comply with any term, condition,</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-31-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>covenant, or agreement herein; provided that no costs, expenses, or other monetary relief shall be
recoverable from the Authority, except as may be payable from the revenues pledged under this Indenture
for the payment of the Bonds or other revenue derived under the Loan Agreement. No provision, covenant,
or agreement contained herein, or any obligations imposed upon the Authority, or the breach thereof,
shall constitute an indebtedness of the Authority within the meaning of any State constitutional
or statutory limitation or shall constitute or give rise to a charge against the Authority&#146;s
general credit. In making the agreements, provisions, and covenants set forth in this Indenture,
the Authority has not obligated itself, except with respect to the application of the revenues pledged
in this Indenture for the payment of the Bonds or other revenues derived under the Loan Agreement.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE VII</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>DEFAULT AND REMEDIES</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="events1"></a>Section 7.01. &nbsp; Events of Default. </B>Each of the following is hereby declared an &#147;Event of Default&#148; hereunder:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Default in the payment in full of any installment of interest on any Bond when the same becomes due
and payable;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Default in the payment in full of the principal or redemption premium, if any, on any Bond when the
same becomes due and payable, whether at maturity or by proceedings for redemption or by declaration
of acceleration pursuant to Section 7.02 hereof or otherwise;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>If, under the provisions
of any law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody
or control of all or any part of the interests pledged hereunder and such custody or control shall
continue for more than 60 days; or</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Any
&#147;Event of Default&#148; under the Loan Agreement or the Deed of Trust. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="acceleration1"></a>Section 7.02. &nbsp;&nbsp;Acceleration; Annulment of Acceleration.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Upon the occurrence of an Event of Default described in Section 7.01 hereof, the Trustee, with the
consent of the Insurer and upon the written request of the Owners of not less than 25% in aggregate
principal amount of Bonds Outstanding, or at the direction of the Insurer, shall, by notice to the
Authority, Insurer and the Borrower, declare all Bonds Outstanding due and payable, whereupon such
Bonds shall become and be due and payable, anything in the Bonds or herein to the contrary notwithstanding.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>At any time after the principal of the Bonds shall have been so declared to be due and payable and
before the entry of final judgment or decree in any suit, action or proceeding instituted on account
of such default, or before the completion of the enforcement of any other remedy hereunder, the Trustee
may, unless directed by the Insurer or by Owners of a majority in principal amount of Bonds Outstanding
with the consent of the Insurer, annul such</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-32-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>declaration and its consequences with respect to any Bonds not then due by their terms if (i) money
shall have been deposited in the Principal Account and Interest Account sufficient to pay, respectively,
all matured installments of interest and principal or redemption prices then due (other than the
principal then due only because of such declaration) on all Bonds Outstanding and all Reimbursement
Obligations; (ii) money shall have been deposited with the Trustee sufficient to pay the charges,
compensation, expenses, disbursements, advances and liabilities of the Trustee and any paying agent;
and (iii) all other amounts then payable hereunder shall have been paid or a sum sufficient to pay
the same shall have been deposited with the Trustee (other than a default in the payment of the principal
of such Bonds then due only because of such declaration). No such annulment shall extend to or affect
any subsequent Event of Default or impair any right consequent thereon.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="consent1"></a>Section 7.03. &nbsp;&nbsp;Consent of Insurer Upon Default. </B>Anything in this Indenture to the contrary notwithstanding, upon the occurrence and continuance of
an Event of Default, the Insurer shall be entitled to control and direct the enforcement of all rights
and remedies granted to the Bondowners or the Trustee for the benefit of the Bondowners under this
Indenture and under the Deed of Trust, Assignment Agreement, and Assignment of Leases, including,
without limitation: (i) the right to accelerate the principal of the Bonds as described in this Indenture,
and (ii) the right to annul any declaration of acceleration, and Insurer shall be entitled to approve
all waivers of Events of Default. The indebtedness of the Borrower under the Loan Agreement may be
separately and independently accelerated with or without an acceleration of the Bonds as provided
in Section 7.02 above, but only with the consent or at the direction of the Insurer.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="rights2"></a>Section 7.04. &nbsp;&nbsp;Rights of the Trustee. </B>The Trustee, as pledgee and assignee of certain of the right, title and interest of the Authority in
and to the Loan Agreement, shall, upon compliance with applicable requirements of law and except
as otherwise set forth in this Article, be, vis-a-vis the Authority, the real party in interest with
standing to enforce each and every right granted to the Authority under the Loan Agreement which
has been assigned to the Trustee by this Indenture. The Authority and the Trustee hereby agree, without
in any way limiting the effect and scope thereof, that the assignment hereunder to the Trustee of
certain rights of the Authority under the Loan Agreement shall constitute an agency appointment coupled
with an interest on the part of the Trustee which, for all purposes of this Indenture, shall be irrevocable
and shall survive and continue in full force and effect notwithstanding the bankruptcy or insolvency
of the Authority or its default hereunder or on the Bonds. Subject to the provisions of Sections
7.03 and 7.15, in exercising such rights and the rights given the Trustee under this Article, the
Trustee shall take such action as, in the judgment of the Trustee, would best serve the interests of the Bondowners.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="additional2"></a>Section 7.05.</B> &nbsp;&nbsp;<B>Additional Remedies and Enforcement of Remedies.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Subject to Insurer rights under Sections 7.03 and 7.15, upon the occurrence and continuance of
any Event of Default, the Trustee may, and upon written request of the Owners of not less than a
majority in principal amount of the Outstanding Bonds, together with indemnification of the Trustee
to its satisfaction therefor, shall, proceed forthwith and to protect and enforce its rights and
the rights of the Bondowners hereunder and under the Act, the Bonds, the Deed of Trust, Assignment
of Leases, and Assignment Agreement by such suits,</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-33-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>actions or proceedings as the Trustee, being advised by counsel, shall deem expedient, including but
not limited to:<BR>
<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(i)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Civil action to recover money or damages due and owing;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(ii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Civil action to enjoin any acts or things, which may be unlawful or in violation of the rights of the Owners of Bonds;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(iii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>With or without litigation or arbitration, enforcement of any other right of the Authority and the Bondowners conferred by law or hereby; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>(iv)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>With or without litigation or arbitration, enforcement of any other right conferred by the Loan Agreement, Development Agreement, or Use Agreement in the Event of Default hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>Subject to Insurer rights under Sections 7.03 and 7.15, regardless of the happening of an Event
of Default, the Trustee, at the direction of the Insurer or if requested in writing by the Owners
of not less than a majority in principal amount of the Bonds then Outstanding and with the consent
of the Insurer, shall, upon being indemnified to its satisfaction therefor, institute and maintain
such suits and proceedings as it may be advised shall be necessary or expedient (i) to prevent any
impairment of the security hereunder by any acts which may be unlawful or in violation hereof, or
(ii) to preserve or protect the interests of the Owners, provided that such request is in accordance
with law and the provisions hereof and, in the sole judgment of the Trustee, is not unduly prejudicial
to the interest of the Owners of Bonds not making such request.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="application2"></a>Section 7.06. Application of</B> <B>Revenues and other Money after Default. </B>&nbsp;&nbsp;&nbsp; During the continuance of an Event of Default all money received by the Trustee pursuant to any right
given or action taken under the provisions of this Article shall, after payment of the costs and
expenses of the proceedings resulting in the collection of such money and of the fees, expenses and
advances incurred or made by the Trustee with respect thereto, be deposited in the Principal Account
to be applied as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>Unless the principal amount of all Outstanding Bonds shall have become or have been declared due
and payable:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>First: To the payment to the persons entitled thereto of all installments of interest (including interest
on amounts unpaid when due on the Bonds) then due on the Bonds in the order of the maturity of such
installments, and, if the amount available shall not be sufficient to pay in full any installment
or installments maturing on the same date, then to the payment thereof ratably, according to the
amounts due thereon to the persons entitled thereto, without any discrimination or preference;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Second: To the payment to the persons entitled thereto of the unpaid principal or redemption price
of any Bonds which shall have become due (other than Bonds previously called for redemption for the
payment of which money is held pursuant to the provisions hereof),</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>-34-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>whether at maturity or by call for redemption, in the order of their due dates, and if the amounts
available shall not be sufficient to pay in full all the Bonds due on any date, then to the payment
thereof ratably, according to the amounts of principal installments or redemption price due on such
date, to the persons entitled thereto, without any discrimination or preference; and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Third: To the payment of any Reimbursement Obligations.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>If the principal amount of all
Outstanding Bonds shall have become or have been declared due and payable:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>First: To the payment of the principal and interest then due and unpaid upon the Bonds without preference
or priority, ratably, according to the amounts due respectively for principal and interest, to the
persons entitled thereto without any discrimination or preference; and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Second: To the payment of any Reimbursement Obligations.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I></I><I></I><I></I><I></I><I></I>If the principal amount
of all Outstanding Bonds shall have been declared due and payable, and if such declaration shall
thereafter have been rescinded and annulled under the provisions of this Article, then, subject to
the provisions of paragraph (b) of this Section in the event that the principal of all Outstanding
Bonds shall later become due or be declared due and payable, the money shall be applied in accordance
with the provisions of paragraph (a) of this Section.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Whenever money is to be applied by the Trustee pursuant to the provisions of this Section, such money
shall be applied by it at such times, and from time to time, as the Trustee shall determine, having
due regard for the amount of such money available for application and the likelihood of additional
money becoming available for such application in the future. Whenever the Trustee shall apply such
money, it shall fix the date upon which such application is to be made and upon such date interest
on the amounts of principal of the Bonds to be paid on such dates shall cease to accrue. The Trustee
shall give such notice as it may deem appropriate of the deposit with it of any such money and of
the fixing of any such date, and shall not be required to make payment to the Owner of any unpaid
Bond until such Bond shall be presented to the Trustee for appropriate endorsement of any partial
payment or for cancellation if fully paid.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="remedies1"></a>Section 7.07. &nbsp;&nbsp;Remedies Not Exclusive</b>. &nbsp;&nbsp;&nbsp;No remedy by the terms hereof conferred upon or reserved to the
Trustee or the Bondowners is intended to be exclusive of any other remedy, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given hereunder or existing
at law or in equity or by statute (including the Act) on or after the date hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="remedies2"></a>Section 7.08. &nbsp;&nbsp;Remedies Vested in Trustee.</b> &nbsp;&nbsp;&nbsp;All rights of action (including the right to file proof of
claims) hereunder or under any of the Bonds may be enforced by the Trustee, without the possession
of any of the Bonds or the production thereof in any trial or other proceedings relating thereto.
Any such suit or proceeding may be brought without the necessity of joining as plaintiffs or defendants
any Owners of the Bonds. Subject to the provisions of</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-35-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>Section 7.06 hereof, any recovery or judgment shall be for the equal benefit of the Owners of the Outstanding
Bonds and the Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="individual1"></a>Section 7.09. &nbsp;&nbsp;Individual Bondowner Action Restricted.</b></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b></b>No Owner of any Bond shall have any right to institute any suit, action or proceeding in equity
or at law for the enforcement hereof or for the execution of any trust hereunder or for any remedy
hereunder except for the right to institute any suit, action or proceeding in equity or at law for
the enforcement of the Trustee&#146;s duties and powers hereunder upon the occurrence of all of the
following events:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, serif" size=2>&nbsp;(i)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b></b>The Insurer and Owners of at least a majority in principal amount of Bonds Outstanding shall have made written request to the Trustee to proceed to exercise the powers granted herein; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, serif" size=2>&nbsp;(ii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>Such Bondowners shall have offered the Trustee indemnity as provided in Section 8.02(e) hereof; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, serif" size=2>(iii)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b></b>The Trustee shall have failed or refused to exercise the duties or powers herein granted for a period of 60 days after receipt by it of such request and offer of indemnity; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b></FONT><FONT face="Times New Roman, Times, serif" size=2>(iv)</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During such 60 day period no direction inconsistent with such written request has been delivered to the Trustee by the Insurer or Owners of a greater majority in principal amount of Bonds then Outstanding.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No one or more Owners of Bonds shall have any right in any manner whatsoever to affect, disturb or
prejudice the security hereof or to enforce any right hereunder except with the consent of the Insurer
and in the manner herein provided and for the equal benefit of the Owners of all Bonds Outstanding.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing contained herein shall affect or impair, or be construed to affect or impair, the right of
the Owner of any Bond (i) to receive payment of the principal of or interest on such Bond, as the
case may be, on or after the due date thereof or (ii) to institute suit for the enforcement of any
such payment on or after such due date; provided, however, no Owner of any Bond may institute or
prosecute any such suit or enter judgment therein if, and to the extent that, the institution or
prosecution of such suit or the entry of judgment therein would, under applicable law, result in
the surrender, impairment, waiver or loss of the lien hereof on the money, funds and properties pledged
hereunder for the equal and ratable benefit of all Owners of Bonds.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="termination1"></a>Section 7.10. &nbsp;&nbsp;Termination of Proceedings.</b> &nbsp;&nbsp;&nbsp; In case any proceeding taken on account of an Event of Default
shall have been discontinued or abandoned for any reason or shall have been determined adversely
to the Trustee or the Bondowners, then the Authority, the Trustee and the Bondowners shall be restored
to their former positions and rights hereunder, and all rights and</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-36-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>powers of the Trustee and the Bondowners shall continue as if no such proceeding had been taken.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="waiver1"></a>Section 7.11. &nbsp;&nbsp;Waiver of Event of Default. </B> &nbsp;&nbsp;&nbsp;Subject to the provisions of Sections 7.03 and 7.15:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No delay or omission of the Trustee or of any Owner of the Bonds to exercise any right or power accruing
upon any Event of Default shall impair any such right or power or shall be construed to be a waiver
of any such Event of Default or an acquiescence therein. Every power and remedy given by this Article
may be exercised from time to time and as often as may be deemed expedient.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless instructed otherwise by the Owners of a majority in principal amount of Bonds Outstanding,
the Trustee may waive any Event of Default which in its opinion shall have been remedied before the
entry of final judgment or decree in any suit, action or proceeding instituted by it under the provisions
hereof, or before the completion of the enforcement of any other remedy hereunder.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained herein to the contrary, the Trustee, upon the written request of
the Owners of at least a majority of the principal amount of Bonds then Outstanding, shall waive
any Event of Default hereunder and its consequences; provided, however, that a default in the payment
of the principal of, premium, if any, or interest on any Bond, when the same shall become due and
payable by the terms thereof or upon call for redemption, may not be waived without the written consent
of the Owners of all the Bonds at the time Outstanding; and further provided that any declaration
that all principal of the Bonds is due and payable may be annulled in accordance with Section 7.02(b).</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In case of any waiver by the Trustee of an Event of Default hereunder, the Authority, the Trustee
and the Bondowners shall be restored to their former positions and rights hereunder, respectively,
but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent
thereon. The Trustee shall not be responsible to anyone for waiving or refraining from waiving any
Event of Default in accordance with this Section.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="notice2"></a>Section 7.12. &nbsp;&nbsp;Notice of Default.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within 30 days after (i) the occurrence of an Event of Default under Section 7.01 (a) or (b) hereof
of which the Trustee is deemed to have notice, or (ii) receipt, in writing or otherwise, by the Trustee
of actual knowledge or notice of an Event of Default under any other subsection of Section 7.01 hereof,
the Trustee shall, unless such Event of Default shall have theretofore been cured, give written notice
thereof by first class mail to each Owner of a Bond then Outstanding, provided that, except in the
case of a default in the payment of principal installments or the redemption price of or interest
on any of the Bonds, the Trustee may withhold such notice if, in its sole judgment, it determines
that the withholding of such notice is in the best interests of the Bondowners.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-37-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall immediately notify the Authority, the Insurer and the Borrower of (i) the occurrence
of an Event of Default under Section 7.01(a) or (b) hereof and (ii) when the Trustee has received
actual knowledge or notice, in writing or otherwise, of an Event of Default under any other subsection
of Section 7.01 hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="limitations1" id="limitations1"></a>Section 7.13. &nbsp;Limitations on Remedies. </B> &nbsp;&nbsp;&nbsp;It is the purpose and intention of this Article to provide rights and remedies to the Trustee and Bondowners
which may be lawfully granted, but should any right or remedy herein granted be held to be unlawful,
the Trustee and the Bondowners shall be entitled, as above set forth, to every other right and remedy
provided in this Indenture and by law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="consent2"></a>Section 7.14. &nbsp;Consent of Insurer in the Event of Insolvency. </B>&nbsp;&nbsp;&nbsp;Any reorganization or liquidation plan with respect to the Borrower must be acceptable to Insurer.
In the event of any reorganization or liquidation, Insurer shall have the right to vote on behalf
of all Bondowners if the Insurer is not then in default of its obligation to pay a claim under the
Policy.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="payment2"></a>Section 7.15. &nbsp;Payment Procedures Under the Policy.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that, on the second
Business Day, and again on the Business Day, prior to the payment date on the Bonds, the Trustee
has not received sufficient money to pay all principal of and interest on the Bonds due on the second
following or following, as the case may be, Business Day, the Trustee shall immediately notify the
Insurer or its designee on the same Business Day by telephone or telegraph, confirmed in writing
by registered or certified mail, of the amount of the deficiency. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the deficiency is made up in whole or in part prior to or on the payment date, the Trustee shall
so notify the Insurer or its designee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, if the Trustee has notice that any Owner has been required to disgorge payments of principal
or interest on the Bonds to a trustee in bankruptcy or creditors or others pursuant to a final judgment
by a court of competent jurisdiction that such payment constitutes an avoidable preference to such
Owner within the meaning of any applicable bankruptcy laws, then the Trustee shall notify the Insurer
or its designee of such fact by telephone or telegraphic notice, confirmed in writing by registered
or certified mail.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee is hereby irrevocably designated, appointed, directed and authorized to act as attorney-in-fact
for Owners as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If and to the extent there is a deficiency in amounts required to pay interest on the Bonds, the
Trustee shall (a) execute and deliver to U.S. Bank Trust National Association, or its successors
under the Policy (the &#147;Insurance Trustee&#148;), in form satisfactory to the Insurance Trustee,
an instrument appointing the Insurer as agent for such Owners in any legal proceeding related to
the payment of such interest and an assignment to the Insurer of the claims for interest to which
such deficiency relates and which are paid by the Insurer, (b) receive as designee of the respective
Owners (and not as Trustee) in accordance with the tenor of the Policy</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-38-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>payment from the Insurance Trustee with respect to the claims for interest so assigned, and (c) disburse
the same to such respective Owners; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If and to the extent of a deficiency in amounts required to pay principal of the Bonds, the Trustee
shall (a) execute and deliver to the Insurance Trustee in form satisfactory to the Insurance Trustee
an instrument appointing the Insurer as agent for such Owner in any legal proceeding relating to
the payment of such principal and an assignment to the Insurer of any of the Bond surrendered to
the Insurance Trustee of so much of the principal amount thereof as has not previously been paid
or for which money is not held by the Trustee and available for such payment (but such assignment
shall be delivered only if payment from the Insurance Trustee is received), (b) receive as designee
of the respective Owners (and not as Trustee) in accordance with the tenor of the Policy payment
therefor from the Insurance Trustee, and (c) disburse the same to such Owners.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments with respect to claims for interest on and principal of Bonds disbursed by the Trustee from
proceeds of the Policy shall not be considered to discharge the obligation of the Authority with
respect to such Bonds, and the Insurer shall become the owner of such unpaid Bond and claims for
the interest in accordance with the tenor of the assignment made to it under the provisions of this
subsection or otherwise.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Irrespective of whether any such assignment is executed and delivered, the Authority and the Trustee
hereby agree for the benefit of the Insurer that:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;They recognize that to the extent the Insurer makes payments, directly or indirectly (as by paying
through the Trustee), on account of principal of or interest on the Bonds, the Insurer will be subrogated
to the rights of such Owners to receive the amount of such principal and interest from the Authority,
with interest thereon as provided and solely from the sources stated in this Indenture and the Bonds;
and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;They will accordingly pay to the Insurer the amount of such principal and interest (including
principal and interest recovered under subparagraph (ii) of the first paragraph of the Policy, which
principal and interest shall be deemed past due and not to have been paid), with interest thereon
as provided in this Indenture and the Bond, but only from the sources and in the manner provided
herein for the payment of principal of and interest on the Bonds to Owners, and will otherwise treat
the Insurer as the owner of such rights to the amount of such principal and interest.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies of any amendments made to any
of the documents executed in connection with the issuance of the Bonds which are consented to by
the Insurer shall be sent to Standard &amp; Poor&#146;s Ratings Service.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Insurer shall receive notice of the resignation or removal
of the Trustee and the appointment of a successor thereto.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-39-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Insurer shall receive copies of all notices required to be delivered to Owners and, on an annual
basis, copies of the Authority&#146;s audited financial statements and Annual Budget.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Authority agrees to reimburse the Insurer immediately and unconditionally upon demand, to the
extent permitted by law, for all reasonable expenses, including attorneys&#146; fees and expenses,
incurred by the Insurer in connection with (i) the enforcement by the Insurer of the Authority&#146;s
obligations, or the preservation or defense of any rights of the Insurer, under this Indenture and
any other document executed in connection with the issuance of the Bonds, and (ii) any consent, amendment,
waiver or other action with respect to the Indenture or any related document, whether or not granted
or approved, together with interest on all such expenses from and including the date incurred to
the date of payment at Citibank&#146;s Prime Rate plus 3% or the maximum interest rate permitted
by law, whichever is less. In addition, the Insurer reserves the right to charge a fee in connection
with its review of any such consent, amendment or waiver, whether or not granted or approved.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Authority agrees not to use Insurer&#146;s name in any public document including, without limitation,
a press release or presentation, announcement or forum without Insurer&#146;s prior consent. In the
event that the Authority is advised by counsel that it has a legal obligation to disclose Insurer&#146;s
name in any press release, public announcement or other public document, the Authority shall provide
Insurer with at least three (3) business days&#146; prior written notice of its intent to use Insurer&#146;s
name together with a copy of the proposed use of Insurer&#146;s name and of any description of a
transaction with Insurer and shall obtain Insurer&#146;s prior consent as to the form and substance
of the proposed use of Insurer&#146;s name and any such description.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Authority shall not enter into any agreement nor shall it consent to or participate in any
arrangement pursuant to which Bonds are tendered or purchased for any purpose other than the redemption
and cancellation or legal defeasance of such Bonds without the prior written consent of Insurer.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provided that the Insurer is not then in default of its obligations under the Policy to pay a claim
duly presented under such Policy (provided that all rights of the Insurer shall be restored upon
the cure of any such default), the Insurer shall be deemed to be the sole Owner of all Bonds for
all purposes (including, without limitation, the granting of all approvals, consents, waivers, authorizations,
directions, instructions, requests and the institution of any action required or permitted to be
obtained, given or made under this Indenture, and the Owners shall have no independent right to grant,
give or make or withhold such approvals, consents, waivers, authorizations, directions, instructions
or requests or to institute any such action), provided that nothing in this paragraph (m) shall impair
the rights of the Owners of the Bonds to receive all payments due under the Bonds at the times and
in the amounts originally specified in this Indenture and its rights with respect to Supplemental
Indentures affecting payment dates, payment amounts and redemption provisions. The Insurer shall
have the exclusive right to exercise or direct the exercise of remedies on behalf of the Owners of
the Bonds in accordance with the terms of this Indenture following an Event of Default.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-40-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; While the Policy is in effect, the Trustee will furnish the Insurer with such information as it
may reasonably request regarding the Bonds, as appears from the books and records under its custody
and control, or as otherwise known to it. The Trustee will permit the Insurer to have access to and
make copies of all such books and records at any reasonable time.</FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE VIII </B></FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>THE TRUSTEE </B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="certain1"></a>Section 8.01. &nbsp;&nbsp;Certain Duties and Responsibilities.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
during the continuance of an Event of Default:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee undertakes to perform such duties and only such duties as are specifically set forth
in this Indenture, and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of
any such certificates or opinions which are required by any provision hereof or of the Loan Agreement,
the Trustee shall be under a duty to examine the same to determine whether or not they conform to
the requirements of this Indenture or the Loan Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the
rights, powers, duties and obligations vested in it by this Indenture, and use the same degree of
care and skill in their exercise, as a prudent corporate indenture trustee would exercise or use
under the circumstances.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No provision of this Indenture shall be construed to relieve the Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful misconduct or breach of trust,
except that:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;this subsection (c) shall not be construed to limit the effect of subsection (a) of this Section;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable for any error of judgment made in good faith and without negligence
by the chairman or vice chairman of the Board of Directors, the chairman or vice chairman of the
Executive Committee of the Board of Directors, the president, any vice president, any assistant vice
president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the cashier,
any assistant cashier, any trust officer or assistant trust officer, the controller and any assistant
controller or any other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers or, with respect to a particular matter, any other
officer to whom such matter is referred because of his knowledge of and familiarity with the particular
subject;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-41-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2> (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Trustee shall not be liable with respect to any action taken or omitted to be taken by it
in good faith and without negligence in accordance with the direction of the Owners of the Outstanding
Bonds as provided herein relating to the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee,
under this Indenture; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder (other than the provisions
of Sections 5.08 or 7.12 hereof requiring the delivery of notice by the Trustee), or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing that repayment
of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
The Trustee may, nevertheless, begin suit, or appear in and defend suit, or do anything else in its
judgment properly to be done by it as the Trustee, without prior assurance of indemnity, and in such
case shall be entitled to reimbursement by the Borrower for all reasonable disbursements, including
its own fees, and for all liability and damages suffered by the Trustee in connection therewith except
for the Trustee&#146;s negligence, bad faith, willful misconduct or breach of trust.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no permissive power, right or remedy conferred upon the Trustee under this Indenture, the Loan
Agreement, any agreement assigned to the Trustee or any related document shall be construed to impose
a duty to exercise such power, right or remedy.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether or not therein expressly
so provided, every provision of this Indenture, the Loan Agreement, any agreement assigned to the
Trustee or any related document relating to the conduct, powers or duties of, or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of this Section.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any term of this Indenture, the
Loan Agreement, any agreement assigned to the Trustee or any related document to the contrary notwithstanding,
and notwithstanding an agreement of indemnity, the Trustee shall not be obligated to perform or discharge
any obligation of the Authority, the Borrower or the Operator as a result of the assignment of any
agreement to the Trustee. The assignment of any agreement to the Trustee shall not constitute an
assumption on the part of the Trustee of any obligation or liability thereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><b><FONT face="Times New Roman, Times, Serif" size=2><a name="certain2"></a>Section 8.02. &nbsp;Certain Rights of Trustee</FONT></b><FONT face="Times New Roman, Times, Serif" size=2>. &nbsp;&nbsp;&nbsp;Except as otherwise provided in Section 8.01:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, note or other paper or document reasonably believed by it to be genuine and to have been signed
or presented by the proper party or parties.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any request or direction of the Authority or the Borrower mentioned herein shall be sufficiently
evidenced by a certificate of an Authority Representative or a Borrower Representative, respectively,
and any action of the governing board of the Authority or</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-42-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> the Borrower may be sufficiently evidenced by a copy of a resolution certified by the secretary/treasurer
or an assistant secretary/treasurer of the Authority or secretary or assistant secretary of the Borrower
to have been duly adopted by the board of directors of the Authority or the Borrower and to be in
full force and effect on the date of such certification and delivered to the Trustee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter
be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee
(unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its
part, rely upon a certificate of an Authority Representative or a Borrower Representative, respectively.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel
shall be full and complete authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Bondowners pursuant to this Indenture, unless
such Bondowners shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such request or direction.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, note or other paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may engage agents and attorneys to assist it in executing any of the trusts or powers
hereunder or performing any duties hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="employment1"></a></FONT><b><FONT face="Times New Roman, Times, Serif" size=2>Section 8.03. &nbsp;&nbsp;Employment of Experts.</FONT></b><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;The Trustee is hereby authorized to employ as its agents such
attorneys at law, certified public accountants and recognized authorities in their fields (who are
not employees of the Trustee), as it reasonably may deem necessary to assist it to carry out any
of its obligations hereunder, and shall be reimbursed by the Borrower for all reasonable expenses
and charges in so doing.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="enforcement1"></a>Section 8.04. &nbsp;&nbsp;Enforcement of Performance by Others</b>. &nbsp;&nbsp;&nbsp;Except as otherwise specifically provided herein,
it shall not be the duty of the Trustee to see that any duties and obligations herein imposed upon
the Authority, the Borrower or the Operator are performed.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="right1"></a>Section 8.05. &nbsp;&nbsp;Right to Deal in Bonds and Take Other Actions.</b> &nbsp;&nbsp;&nbsp; The Trustee may in good faith buy, sell
or hold and deal in any Bonds with like effect as if it were not such Trustee and may commence or
join in any action which an Owner is entitled to take with like effect as if the Trustee were not
the Trustee. It is understood and agreed that the Trustee engages in a</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-43-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>general banking business and no provision hereof or of the Loan Agreement is to be construed to limit
or restrict the right of the Trustee to engage in such business with the Authority, the Borrower,
or any Owner. So engaging in such business shall not, in and of itself, and so long as the Trustee
duly performs all of its duties as required hereby and by the Loan Agreement, constitute a breach
of trust on the part of the Trustee, but neither shall engaging in such business abrogate, alter
or diminish any duty or obligation of the Trustee as trustee hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="removal1"></a>Section 8.06. &nbsp;&nbsp;Removal and Resignation of the Trustee. </B>&nbsp;&nbsp;&nbsp;The Trustee may resign at any time. The Trustee may be removed at any time, for any breach of the Trust
set forth herein. The Trustee may also be removed at any time either by one or more instruments in
writing signed by the Owners of not less than a majority in principal amount of Bonds then Outstanding
and with the consent of the Insurer, or, if no Event of Default or event which, with the giving of
notice or the passage of time, or both, would become an Event of Default has occurred and is continuing
and if no direction to the contrary is received from the Owners of a majority in principal amount
of Bonds Outstanding, by an instrument in writing signed by the Borrower and with the consent of
the Insurer. The Trustee may be removed at any time at the request of the Insurer. Written notice
of the Trustee&#146;s resignation or removal shall be given by the Trustee to the Authority, the
Borrower and the Insurer, and such resignation or removal shall take effect only upon the appointment
and qualification of a successor Trustee acceptable to the Insurer. In the event a successor Trustee
has not been appointed and qualified within 60 days of the date notice of resignation or removal
is given, the Trustee, the Authority, the Insurer or the Borrower may apply to any court of competent
jurisdiction for the appointment of a successor Trustee to act until such time as a successor is
appointed as provided in this Section.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event of the resignation or removal of the Trustee or in the event the Trustee is dissolved
or otherwise becomes incapable to act as the Trustee, the Insurer or the Borrower shall be entitled
to appoint a successor Trustee. If the Owners of a majority of the principal amount of Bonds then
Outstanding object to the successor Trustee so appointed by and if such Owners designate another
person qualified to act as the Trustee, the Borrower shall, then appoint as the Trustee the person
so designated by the Owners.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Unless otherwise ordered by a court or regulatory body having competent jurisdiction, or unless required
by law, any successor Trustee shall be a trust company or bank having the powers of a trust company
as to trusts, qualified to fulfill the obligations of the Trustee under this Indenture and having
an officially reported combined capital, surplus, undivided profits and reserves aggregating at least
$75,000,000, if there is such an institution willing, qualified and able to accept the trust upon
reasonable or customary terms.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Every successor Trustee howsoever appointed hereunder shall execute, acknowledge and deliver to its
predecessor and also to the Authority and the Borrower, an instrument in writing, accepting such
appointment hereunder, and thereupon such successor Trustee, without further action, shall become
fully vested with all the rights, immunities, powers, trusts, duties and obligations of its predecessor,
and such predecessor shall execute and deliver an instrument transferring to such successor Trustee
all the rights, power and trusts of such predecessor, subject to the terms and conditions herein
set forth, including, without limitation, the right of the predecessor Trustee to be paid and reimbursed
in full for its reasonable charges and expenses</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-44-</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> (including reasonable costs and fees of its counsel) and to indemnification under Section 7.2 of the
Loan Agreement. The predecessor Trustee shall execute any and all documents necessary or appropriate
to convey all interest it may have to the successor Trustee. The predecessor Trustee shall promptly
deliver all records relating to the trust or copies thereof and communicate all material information
it may have obtained concerning the trust to the successor Trustee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Each successor Trustee, not later than ten days after its assumption of the duties hereunder, shall
mail a notice of such assumption to each Owner of a Bond.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding any other provisions of this Indenture to the contrary, no removal, resignation or
termination of the Trustee shall take effect until a successor, shall be appointed.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="continuation1"></a>Section 8.07. &nbsp;&nbsp;Continuation Statements; Proof of Claim. </B>&nbsp;&nbsp;&nbsp;Within the period beginning six months prior to and ending ninety days prior to the expiration of five
years after the initial UCC-1 filing for the security interest granted under this Indenture, and
within six months prior to but in no event less than ninety days prior to the expiration of each
five year period thereafter until this Indenture is discharged, the Trustee will cause to be filed
with the Washington Secretary of State continuation statements to continue the perfection (to the
extent that such perfection can be accomplished under applicable law by filing) of the security interest
granted under this Indenture. To the extent the Trustee is required to file any instrument, the Trustee
shall be entitled to retain counsel and shall be entitled to reimbursement of Trustee Fees and Expenses
pursuant to Section 8.03 and 8.08 hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>With the consent of or at the direction of the Insurer, the Trustee shall have the right and power
to take actions in the name and place of the Authority or Owners to make proof of claim in any proceeding,
bankruptcy, reorganization or otherwise where proof of claim may be required. Any amount recovered
as a result of any such claim, after payment of all fees (including reasonable attorneys fees), costs,
expenses and advances incurred by the Trustee or its agents in pursuing such claim, shall be for
the equal benefit of all of the Owners.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="trustee1"></a>Section 8.08. &nbsp;&nbsp;Trustee Fees and Expenses. </B>&nbsp;&nbsp;&nbsp;The Trustee shall be entitled to be paid from time to time reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust); to reimbursement upon request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses and disbursements of its
counsel and its agents), except any such expense, disbursement or advance as may be attributable
to its negligence or bad faith or willful misconduct or breach of trust; and the Trustee, and its
directors, officers, employees and agents, shall be entitled to be indemnified for, from and against
any loss, liability or expense arising out of or in connection with the acceptance or administration
of this trust or its duties hereunder, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of its powers, trusts,
obligations or duties hereunder; provided, however, that the Authority shall not be liable for any
such amounts so payable except to the extent the same can be paid or recovered from funds paid or
payable pursuant to the Loan Agreement and assigned to or payable to the Trustee. The Trustee&#146;s
rights to compensation, reimbursement and indemnity for services</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-45-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>provided and events occurring while serving as Trustee hereunder shall survive and continue notwithstanding
the subsequent resignation or removal of the Trustee or discharge of the Indenture.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Any provision hereof to the contrary notwithstanding, if the Borrower fails to make any payment properly
due the Trustee for its reasonable fees, costs, expenses and fees of attorneys, certified public
accountants, recognized authorities in their field and agents (not employees of the Trustee) incurred
in performance of its duties, the Trustee may reimburse itself from any money on hand in any fund
or account created pursuant hereto, provided that no money in the Principal Account or Interest Account
may be so applied.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="destruction1"></a>Section 8.09. &nbsp;&nbsp;Destruction of Bonds. </B>&nbsp;&nbsp;&nbsp;Upon payment of or surrender to the Trustee for cancellation of any Bond, the Trustee shall destroy
such Bond.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="reports1"></a>Section 8.10. &nbsp;&nbsp;Reports. </B>&nbsp;&nbsp;&nbsp;The Trustee shall quarterly, or at such other intervals as the Trustee and the Borrower shall from
time to time agree upon (but in no event more frequently than monthly), prepare and submit to the
Borrower (and to the extent requested by the Authority, to the Authority) reports covering all money
received and all payments, expenditures and investments made as the Trustee hereunder since the last
previous such report.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="recitals1"></a>Section 8.11. &nbsp;&nbsp;Recitals and Representations. </B>&nbsp;&nbsp;&nbsp;The recitals, statements and representations contained herein, or in any Bond (excluding the Trustee&#146;s
authentication on the Bonds or any recitals or representations concerning the Trustee or its rights,
powers, duties, obligations or trusts) shall not be taken or construed as made by the Trustee, and
the Trustee neither assumes nor shall be under any responsibility for the correctness of the same.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Trustee makes no representation as to, and is not responsible for, the validity or sufficiency
hereof, of the Bonds, or the validity or sufficiency of insurance to be provided or, except as herein
required, the filing or recording or registering of any document. The Trustee shall be deemed not
to have made representations as to the security afforded hereby or hereunder or as to the validity
or sufficiency of such document. The Trustee shall not be concerned with or accountable to anyone
for the use or application of any money which shall be released or withdrawn in accordance with the
provisions hereof. The Trustee shall have no duty of inquiry with respect to any default or Events
of Default described herein without actual knowledge of or receipt by the Trustee of written notice
of a default or an Event of Default from the Authority, the Borrower or any Owner.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="merger1"></a>Section 8.12. &nbsp;&nbsp;Merger or Consolidation. </B>&nbsp;&nbsp;&nbsp;Any company or national banking association into which the Trustee may be merged or converted or with
which it may be consolidated or resulting from any merger, conversion or consolidation to which it
shall be a party or to which it may sell or transfer all or substantially all of its corporate trust
business, provided such entity shall be authorized by law to perform all duties imposed on it by
this Indenture, and shall be eligible to be a successor Trustee under the provisions of this Indenture,
shall be the successor to the Trustee without the execution or filing of any paper or the performance
of any further act.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>-46-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="cotrustees1"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 8.13. &nbsp;Co-Trustees.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time, for the purpose of meeting the legal requirements of any applicable jurisdiction, the
Trustee or the Borrower (except upon the occurrence and during the continuation of an Event of Default),
with the Trustee&#146;s approval, shall have power to appoint one or more persons to act as co-trustee
under this Indenture, with such powers as may be provided in the Instrument of appointment, and to
vest in such person or persons any property, title, right or power deemed necessary or desirable,
subject to the remaining provisions of this Section; provided, however, that in no event shall the
appointment of a co-trustee relieve the Trustee of any of its obligations under this Indenture.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each co-trustee shall, to the extent permitted by applicable law, be appointed subject to the following
terms:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rights, powers, duties and obligations conferred or imposed upon any such trustee shall not
be greater than those conferred or imposed upon the Trustee, and such rights and powers shall be
exercisable only jointly with the Trustee, except to the extent that, under any law of any jurisdiction
in which any particular act or acts are to be performed, the Trustee shall be incompetent or unqualified
to perform such act or acts, in which event such rights and powers shall be exercised by such co-trustee
subject to the provisions of clause (iv) below.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may at any time, by an instrument in writing executed by it, accept the resignation
of or remove any co-trustee appointed under this Section.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No such co-trustee shall be liable by reason of any act or omission of any other such co-trustee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;No power given to such co-trustee shall be separately exercised hereunder by such co-trustee except
with the consent in writing of the Trustee, anything herein contained to the contrary notwithstanding.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE IX </B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>SUPPLEMENTS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="supplements1"></a>Section 9.01. &nbsp;Supplements not Requiring Consent of or on Behalf of Bondowners. &nbsp;&nbsp;&nbsp;</B></FONT><FONT face="Times New Roman, Times, Serif" size=2>The Authority acting through the Authority Representative and the Trustee may, without the consent
of or notice to any of the Owners, but with the consent of the Insurer, enter into one or more Supplements
for one or more of the following purposes:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To cure any ambiguity or formal defect or omission herein or to correct or supplement any provision
herein which may be inconsistent with any other provision herein;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To grant or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully
be granted or conferred upon them;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-47-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>

<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To secure additional revenues or provide additional security or reserves for payment of the Bonds;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To comply with the requirements of any state or federal securities laws or the Trust Indenture Act
of 1939, as from time to time amended, if required by law or regulation lawfully issued thereunder;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide for the appointment of a successor trustee pursuant to the terms of Section 8.06 hereof;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To permit the issuance of Bonds in certificated form;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To make any other change or amendment hereto which the Trustee determines does not materially adversely
affect the interests of any Owner or the Trustee; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide for the refunding or advance refunding of any Bonds, including the right to establish
and administer an escrow fund and to take related action in connection therewith.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Provided, however, that any Supplements entered into for the purposes enumerated above require notice
to the Insurer and the written consents of the Borrower and the Insurer.</FONT></P>
<P align="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="supplements2"></a>Section 9.02. &nbsp;&nbsp;Supplements Requiring Consent of or on Behalf of Bondowners.</B> &nbsp;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than Supplements referred to in Section 9.01 hereof and subject to the terms and provisions
and limitations contained in this Article and not otherwise, the Owners of not less than a majority
in principal amount of the Bonds then Outstanding, shall have the right, from time to time, anything
contained herein to the contrary notwithstanding, to consent to and approve the execution by the
Authority acting through the Authority Representative and the Trustee of such Supplement as shall
be deemed necessary and desirable by the Authority and the Trustee for the purpose of modifying,
altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained
herein; provided, however, that no such Supplement shall be executed without the consent of the Borrower
and the prior written consent of the Insurer; provided further that nothing in this Section shall
permit or be construed as permitting a Supplement which would:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;extend the stated maturity of or time for paying interest on any Bond or reduce the principal amount
of or the redemption premium or rate of interest payable on any Bond without the consent of the Owner
of such Bond;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prefer or give a priority to any Bond over any other Bond without the consent of the Owner of
each Bond then Outstanding not receiving such preference or priority;</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>-48-</FONT></P>
<hr color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reduce the principal amount of Bonds then Outstanding the consent of the Owners of which is required
to authorize such Supplement without the consent of the Owners of all Bonds then Outstanding; or</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reduce the redemption price of any Bond upon optional redemption or reduce any period of time
prior to commencement of any optional redemption period without the consent of the Owner of such
Bond.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It shall not be necessary for the consent of the Owners under this Section to approve the particular
form of any proposed Supplement, but it shall be sufficient if consent is given to the substance
thereof. Any such consent shall be binding upon the Owner of the Bond giving such consent and upon
any subsequent Owner of such Bond and of any Bond issued in exchange therefor (whether or not such
subsequent Owner thereof has notice thereof), unless such consent is revoked in writing by the Owner
of such Bond giving such consent or by a subsequent Owner thereof by filing with the Trustee, prior
to the execution by the Trustee of such Supplement, such revocation. If the Owners of the required
amount or number of the Bonds Outstanding shall have consented to and approved the execution of such
Supplement as herein provided, no Owner of any Bond shall have any right to object to the execution
thereof, or to object to any of the terms and provisions contained therein or the operation thereof,
or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the
Trustee or the Authority from executing the same or from taking any action pursuant to the provisions thereof.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="execution2" id="execution2"></a>Section 9.03. &nbsp;&nbsp;Execution and Effect of Supplements.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In executing any Supplement permitted by this Article, the Trustee and Authority shall be entitled
to receive and to rely upon an Opinion of Counsel stating that the execution of such Supplement is
authorized or permitted hereby. The Trustee may but shall not be obligated to enter into any such
Supplement which adversely affects the Trustee&#146;s own rights, duties or immunities.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Supplement under this Article shall become effective unless and until the Borrower and the Insurer
shall have consented in writing to the execution and delivery of such Supplement. In this regard
the Trustee shall cause notice of the proposed execution and delivery of any such Supplement together
with a copy of the proposed Supplement to be delivered to the Borrower at least ten days prior to
the date of its proposed effectiveness.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon the execution and delivery of any Supplement in accordance with this Article, the provisions
hereof shall be modified in accordance therewith and such Supplement shall form a part hereof for
all purposes and every Owner of a Bond theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any Bond authenticated and delivered after the execution and delivery of any Supplement in accordance
with this Article may, and if required by the Authority or the Trustee shall, bear a notation in
form approved by the Authority and Trustee as to any matter provided for in such Supplement. If the
Authority shall so determine, upon advice of Bond</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-49-</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Counsel, new Bonds so modified as to conform in the opinion of the Trustee and the Authority to any
such Supplement may be executed by the Authority and authenticated and delivered by the Trustee in
exchange for and upon surrender of Bonds then Outstanding.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="amendements1"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 9.04. &nbsp;&nbsp;Amendments to Loan Agreement Not Requiring Consent of or on </B><B>Behalf of Bondowners. </B>&nbsp;&nbsp;&nbsp;The Trustee may, without the consent of or notice to any of the Owners, but with the prior written
consent of the Insurer, consent to and join with the Borrower in the execution and delivery of any
amendment, change or modification of the Loan Agreement for one or more of the purposes described
in Section 9.01.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="amendments2"></a>Section 9.05. &nbsp;&nbsp;Amendments to Loan Agreement Requiring Consent of or on</B> <B>Behalf of Bondowners.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for amendments, changes or modification to the Loan Agreement referred to in Section 9.04 hereof
and subject to the terms and provisions and limitations contained in this Article and not otherwise,
the Trustee may consent to and join with the Borrower in the execution and delivery of any amendment,
change or modification to the Loan Agreement with the prior written consent of the Insurer and with
the consent of the Owners of not less than a majority in principal amount of Bonds then Outstanding,
given as provided in this Section, provided, however, that no such amendment, change or modification
may affect the obligation of the Borrower to make payments under the Loan Agreement or reduce the
amount of or extend the time for making such payments without the consent of the Owners of all Bonds
then Outstanding.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the consent to and approval of the execution of such amendment, change or modification is given
by the Owners of not less than the aggregate principal amount or number of Bonds specified in subsection
(a) within the time and in the manner provided by Section 9.02 hereof with respect to Supplements
hereto, but not otherwise, such amendment, change or modification may be consented to, executed and
delivered upon the terms and conditions and with like binding effect upon the Owners as provided
in Sections 9.02 and 9.03 hereof with respect to Supplements hereto.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="authority1"></a>Section 9.06. &nbsp;&nbsp;Authority Consent to</B> <B>Amendments.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any proposed amendment, modification, or supplement to this Indenture which provides for terms less
favorable to the Authority than those set forth in Sections 6.06, 6.07 or 11.10 of this Indenture
as originally executed and delivered, but permitted by law, shall require the Authority&#146;s consent,
which may be withheld for any reason.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any proposed amendment, modification or supplement of the Loan Agreement which provides for terms
less favorable to the Authority than those set forth in Sections 5.05 or 5.06 of the Loan Agreement
as originally executed and delivered, but permitted by law, shall require the Authority&#146;s consent,
which shall not be withheld unreasonably.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>-50-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="isurer1"></a>Section 9.07.&nbsp;&nbsp; Insurer Consent to Amendments.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Indenture, the Loan Agreement or the Deed of Trust expressly recognizing or
granting rights in or to Insurer may not be amended in any manner which affects the rights of Insurer
hereunder or thereunder without the prior written consent of Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wherever the Authority Documents require the consent of Bondowners, Insurer&#146;s consent shall also
be required.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE X </B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>SATISFACTION AND DISCHARGE</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="discharge1"></a>Section 10.01. &nbsp;&nbsp;Discharge. </B>&nbsp;&nbsp;&nbsp;If payment of all principal of, premium, if any, and interest on all of the Bonds in accordance with
their terms and as provided herein is made, or is provided for in accordance with this Article, and
if all Reimbursement Obligations and other sums, if any, payable by the Authority hereunder shall
be paid, then the liens, estates and security interests granted hereby shall cease. Upon all conditions
precedent to the satisfaction and discharge of the lien hereof have been satisfied, the Trustee shall
execute and deliver proper instruments acknowledging such satisfaction and discharging the lien hereof
and the Trustee shall transfer all property held by it hereunder, other than money or obligations
held by the Trustee for payment of amounts due or to become due on the Bonds, to the Borrower or
such other person as may be entitled thereto as their respective interests may appear. Such satisfaction
and discharge shall be without prejudice to the rights of the Trustee thereafter to charge and be
compensated or reimbursed for services rendered and expenditures incurred in connection herewith.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Authority or the Borrower may at any time surrender to the Trustee for cancellation any Bonds previously
authenticated and delivered which the Authority or the Borrower may have acquired in any manner whatsoever
and such Bonds upon such surrender and cancellation shall be deemed to be paid and retired.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="providing1"></a>Section 10.02. &nbsp;&nbsp;Providing for Payment of Bonds. </B>&nbsp;&nbsp;&nbsp;Payment of all or any part of the Bonds in Authorized Denominations may be provided for by the deposit
with the Trustee of money or Government Obligations which are not redeemable in advance of their
maturity dates, or which are redeemable in advance of their maturity dates only at the option of
the Owner thereof, or both. The money and the maturing principal and interest income on such Government
Obligations, if any, shall be sufficient, as evidenced by a certificate of an independent certified
public accountant or firm of such accountants acceptable to the Trustee, to pay when due the principal
or redemption price of and interest on such Bonds. The money and Government Obligations shall be
held by the Trustee irrevocably in trust for the Owners of such Bonds solely for the purpose of paying
the principal, or redemption price of and interest on such Bonds as the same shall mature, come due
or become payable upon prior redemption, and, if applicable, upon simultaneous direction, expressed
to be irrevocable, to the Trustee as to the dates upon which any such Bonds are to be redeemed prior
to their respective maturities.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-51-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If payment of Bonds is so provided for, the Trustee shall mail a notice so stating to each Owner of
a Bond so provided for, which notice shall also describe the rights retained and reserved pursuant
to Section 10.04.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Except as provided in Section 10.03, Bonds the payment of which has been provided for in accordance
with this Section shall no longer be deemed Outstanding hereunder or secured hereby. The obligation
of the Authority in respect of such Bonds shall nevertheless continue but the Owners thereof shall
thereafter be entitled to payment only from the money or Government Obligations deposited with the
Trustee to provide for the payment of such Bonds.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No Bond may be refunded or defeased unless an opinion of counsel is provided to Insurer stating that
(A) any escrow deposit will not constitute a voidable preference or transfer under the Federal Bankruptcy
Code or any other similar state or federal statute in the event the Authority or the Borrower becomes
a debtor within the meaning of the Federal Bankruptcy Code or comes within the protection of such
similar state or federal statute (&#147;Insolvency Event&#148;), and (B) in such Insolvency Event,
any escrow deposit will not be treated as part of the estate of the Authority or the Borrower.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="provisions1"></a>Section 10.03. &nbsp;Provisions to Survive After Discharge. </B>&nbsp;&nbsp;&nbsp;Notwithstanding the discharge of the lien hereof as in this Article provided, the Trustee shall nevertheless
retain such rights, powers, trusts, obligations and duties hereunder as may be necessary and convenient
for the payment of amounts due or to become due on the Bonds and the registration, transfer, exchange
and replacement of Bonds as provided herein. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the payment in full of the Bonds, the discharge of the Indenture, and the </FONT><FONT face="Times New Roman, Times, Serif" size=2>termination or expiration of the Loan Agreement, all provisions in this Indenture concerning (a) the
interpretation of this Indenture, (b) the governing law, (c) the forum for resolving disputes, (d)
the Authority&#146;s right to rely on facts or certificates, (e) the immunity from and limitation
on liabilities of the Authority Indemnified Parties, (f) the Authority Indemnified Parties&#146; rights
to indemnity, and (g) the Authority&#146;s lack of pecuniary liability shall survive and remain in
full force and effect.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event that the principal and/or interest due on the Bonds shall be paid by Insurer pursuant
to the Policy, the Bonds shall remain Outstanding for all purposes, not be defeased or otherwise
satisfied and not be considered paid by the Authority, and the assignment and pledge of the trust
estate and all covenants, agreements and other obligations of the Authority to the registered owners
shall continue to exist and shall run to the benefit of Insurer, and Insurer shall be subrogated
to the rights of such registered owners including, without limitation, any rights that such owners
may have in respect of securities law violations arising from the offer and sale of the Bonds.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="reserved2" id="reserved2"></a>Section 10.04. &nbsp;Reserved Rights. </B>&nbsp;&nbsp;&nbsp;If, in connection with a redemption of all or any part of the Bonds, or in connection with providing
for payment of all or any part of the Bonds pursuant to this Article X, money and/or securities are
deposited with the Trustee sufficient to pay debt service on all or a portion of the Bonds to any
date after the first date on which the Bonds may be redeemed, the Borrower expressly reserves and
retains the right to subsequently change the date</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-52-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>on which any Bonds
  for which such an escrow has been established are to be redeemed. The Borrower
  further reserves and retains the right to restructure the money and/or securities
  in the escrow and to apply any of the proceeds available following such restructuring
  for any lawful purpose.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="escrow1"></a>Section 10.05. &nbsp;Escrow. </B>&nbsp;&nbsp;&nbsp;Any escrow agreement shall provide that:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any substitution of securities shall require a Certified Public Accountant verification and the prior
written consent of the Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Authority and the Borrower will not exercise any optional redemption of Bonds secured by the escrow
agreement or any other redemption other than mandatory sinking fund redemptions unless (i) the right
to make any such redemption has been expressly reserved in the escrow agreement and such reservation
has been disclosed in detail in the official statement for the refunding bonds, and (ii) as a condition
of any such redemption there shall be provided to the Insurer a Certified Public Accountant verification
as to the sufficiency of escrow receipts without reinvestment to meet the escrow requirements remaining
following such redemption.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Authority and the Borrower shall not amend the escrow agreement or enter into a forward purchase
agreement or other agreement with respect to rights in the escrow without the prior written consent
of Insurer.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>ARTICLE XI</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>MISCELLANEOUS</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="evidence1"></a>Section 11.01. &nbsp;Evidence of Acts of Bondowners.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any request, direction, consent or other instrument provided hereby to be signed and executed by
the Bondowners may be in any number of concurrent writings of similar tenor and may be signed or
executed by such Bondowners in person or by agent appointed in writing. Proof of the execution of
any such request, direction, consent or other instrument or of the writing appointing any such agent
and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the
purposes hereof and shall be conclusive in favor of the Trustee and Authority, with regard to any
action taken by them, or either of them, under such request or other instrument, namely:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fact and date of the execution by any person of any such request, direction, consent or other
instrument or of a writing appointing any such agent may be proved by the certificate of any officer
in any jurisdiction who by law has power to take acknowledgments in such jurisdiction, that the person
signing such writing acknowledged before him the execution thereof, or by the affidavit of a witness
of such execution; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fact of ownership of Bonds and the amount or amounts, numbers and other identification of
such Bonds, and the date of acquiring the same shall be</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-53-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>proved by the registration books. of the Authority maintained by the Trustee pursuant to Section 2.02.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Nothing in this Section shall be construed as limiting the Trustee to the proof herein specified, it
being intended that the Trustee may accept any other evidence of the matters herein stated that it
may deem sufficient.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any action taken or suffered by the Trustee pursuant to any provision hereof, upon the request
or with the assent of any person who at the time is the Owner of any Bond or Bonds, shall be conclusive
and binding upon all future Owners of the same Bond or Bonds.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="limitation2" id="limitation2"></a>Section 11.02. &nbsp;Limitation of Rights; Third Party Beneficiaries. </B>&nbsp;&nbsp;&nbsp;With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be
implied from this Indenture or the Bonds is intended or shall be construed to give to any person
other than the parties hereto, the Borrower, the Insurer, and the Owners of the Bonds any legal or
equitable right, remedy or claim under or in respect to this Indenture. This Indenture and all of
the covenants, conditions and provisions hereof are intended to be and being for the sole and exclusive
benefit of the parties hereto, the Owners of the Bonds, and the Borrower as herein provided.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="unrelated1"></a>Section 11.03. &nbsp;Unrelated Bond Issues. </B>&nbsp;&nbsp;&nbsp;Prior to the issuance of the Bonds, the Authority has issued, and subsequent to the issuance of the
Bonds the Authority may issue, bonds in connection with the financing of other projects (said bonds
together with any bonds issued by the Authority between the date hereof and issuance of the Bonds
shall be referred to herein as the &#147;Other Bonds&#148;). Any pledge, mortgage or assignment made
in connection with any Other Bonds shall be protected and any funds pledged or assigned for the payment
of the Other Bonds will not be used for the payment of principal, premium, if any, or interest on
the Bonds. Correspondingly, any pledge, mortgage or assignment made in connection with the Bonds
shall be protected, and no funds pledged or assigned for the payment of the Bonds shall be used for
the payment of principal, premium, if any, or interest on the Other Bonds.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><a name="severability1"></a>Section 11.04.&nbsp;&nbsp;SeverabiIity.</b> &nbsp;&nbsp;&nbsp;If any one or more sections, clauses, sentences or parts hereof shall for
any reason be questioned in any court of competent jurisdiction and shall be adjudged unconstitutional
or invalid, such judgment shall not affect, impair or invalidate the remaining provisions hereof,
or the Bonds issued pursuant hereto, but shall be confined to the specific sections, clauses, sentences
and parts so adjudged.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="holidays1"></a>Section 11.05. &nbsp;Holidays. </B>&nbsp;&nbsp;&nbsp;When the date on which principal of or interest or premium on any Bond is due and payable is not a
Business Day, payment may be made on Bonds presented at the place of payment on the next ensuing
Business Day with effect as though payment were made on the due date, and, if such payment is made,
no additional interest shall accrue from and after such due date. When any other action is provided
herein to be done on a day named or within a time period named, and the day or the last day of the
period falls on a day other than a Business Day, it may be performed on the next ensuing Business
Day with effect as though performed on the appointed day or within the specified period.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-54-</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><a name="compliance1"></a>Section 11.06. &nbsp;Compliance with Continuing Disclosure Requirements of the SEC. </B>&nbsp;&nbsp;&nbsp;Pursuant to Section 5.5 of the Loan Agreement, the Borrower has undertaken all responsibility to comply
with the continuing disclosure requirements of Section (b)(5)(i) of Securities and Exchange Commission
Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (the &#147;Rule&#148;). Neither
the Authority nor the Trustee shall have any liability to the Owners of the Bonds or any other Person
with respect to such disclosure matters. Notwithstanding any other provision of this Indenture, failure
of the Borrower to comply with Section 5.5 the Loan Agreement shall not be considered an Event of
Default under this Indenture; however the disclosure agent may (and, at the request of the owners
of at least a majority in aggregate principal amount of the Bonds Outstanding and payment of its
fees and expenses, including attorneys&#146; fees, shall) or any Bondowner may, take such actions
as may be necessary and appropriate, including seeking specific performance by court order, to cause
the Borrower or the disclosure agent, to comply with its obligations under Section 5.5 of the Loan Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="governing1"></a>Section 11.07. &nbsp;Governing Law and Forum. </B>&nbsp;&nbsp;&nbsp;This Indenture shall be governed by and construed in accordance with the laws and judicial decisions
of the State, except as such laws may be preempted by any federal rules, regulations, and laws applicable
to the Authority. The parties hereto expressly acknowledge and agree that any judicial action to
interpret or enforce the terms of this Indenture against the Authority shall be brought and maintained
in Superior Court in King County, Washington, the United States District Court for the Western District
of Washington, or in any United States Bankruptcy Court in any case involving or having jurisdiction
over the Borrower or the Project.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><b><a name="notices1"></a>Section 11.08. &nbsp;&nbsp;Notices.</b></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise expressly specified or permitted by the terms hereof, all notices, consents or
other communications required or permitted hereunder shall be deemed sufficiently given or served
if given in writing, mailed by first class mail, postage prepaid, or sent by overnight courier service
mutually acceptable to the delivering and receiving parties, courier charges prepaid, and addressed
as follows:</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD width=180 valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B></B></FONT><FONT face="Times New Roman, Times, Serif" size=2>To the Authority:</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Washington Economic Development Finance Authority <BR>1000 Second Avenue, Suite 2700 <BR>Seattle, WA 98104 <BR>Attention: Executive Director <BR>Telephone: (206) 587-5634 <BR>
Facsimile: (206) 389-2819</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-55-</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
  <TR>
    <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD valign=top nowrap><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the Trustee:&nbsp;&nbsp;</FONT></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>U.S. Bank National Association</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Corporate Trust Department PD-WA-T7CT</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>1420 Fifth Avenue, 7<SUP>th</SUP> Floor</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Seattle, Washington 98101</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Attention: Carolyn Whalen, Vice President</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Telephone: (206) 344-4678</FONT></TD>
  </TR>
  <TR>
    <TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile: (206) 344-4630</FONT></TD>
  </TR>
</TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=180><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>To the Borrower:</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC of Tacoma LLC <BR>c/o AMACAR Group, LLC <BR>6525 Morrison Blvd., Suite 318 <BR>Charlotte, NC 28211 <BR>Attention: Doug Johnson <BR>Telephone: (704) 365-0569 <BR>
Facsimile: (704) 365-1362</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>CSC of Tacoma LLC</FONT></TD></TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>c/o Correctional Services Corporation</FONT></TD></TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>1819 Main Street, Suite 1000</FONT></TD></TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Sarasota, FL 34236</FONT></TD></TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Attention: James Slattery</FONT></TD></TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Telephone: (941) 953-9199</FONT></TD>
</TR>
<TR>
<TD valign=top width=180><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><FONT face="Times New Roman, Times, serif" size=2>Facsimile: (941) 389-9198</FONT></TD>
</TR>
<TR>
<TD width="180" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR></TABLE>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=180>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC of Tacoma LLC <BR>c/o Craig Scott Bartlett <BR>64 Melrose Place <BR>Montclair, NJ 07042 <BR>
Telephone: (973) 744-4696 <BR>
Facsimile: (973) 744-5747</FONT></TD>
</TR>
<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">To the Insurer:&nbsp;&nbsp;&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">MBIA Insurance Corporation </font></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">113 King Street </font></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">Armonk, NY 10504 </font></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">Attention: Surveillance</font></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">Telephone: (914) 765-3533 </font></TD>
</TR>
<TR>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">Fax: (914) 765-3665</font></TD>
</TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The parties listed above may from time to time by notice in writing to the others designate a different
address or addresses for notices hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="additional3"></a></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Section 11.09. Additional Notices to Rating Agencies.</B> The Trustee hereby agrees that if at any time (i) payment of principal and interest on the Bonds
is accelerated pursuant to the provisions of Section 7.02 hereof, (ii) the Authority shall redeem
the entire principal amount of the Bonds Outstanding hereunder prior to maturity, (iii) a successor
Trustee is appointed</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-56-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>hereunder, or (iv) the Bondowners or Insurer consent to any amendment to this Indenture or the Loan
Agreement or waive any provision of this Indenture or the Loan Agreement, then, in each case, the
Trustee will promptly give notice of the occurrence of such event to each Rating Agency, if any,
then maintaining a rating on the Bonds, which notice in the case of an event referred to in clause
(iv) shall include a copy of any such amendment or waiver.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="counterparts1"></a>Section 11.10. Counterparts. </B>This Indenture may be executed in several counterparts, each of which shall be an original and all
of which together shall constitute one instrument.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><a name="binding2" id="binding2"></a>Section 11.11. Binding Effect. </B>This instrument shall inure to the benefit of and shall be binding upon the parties hereto and their
respective successors and assigns subject to the limitations contained herein.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-57-</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the Authority has caused this Indenture of Trust to be signed in its name and on
its behalf by its duly authorized officer, and to evidence its acceptance of the trusts hereby created
the Trustee has caused this Indenture of Trust to be signed in its name and on its behalf by its
duly authorized officer, all as of the day and year first above written.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD width="59%" valign=top>&nbsp;</TD>
<TD width="41%" valign=top><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC <BR>
  DEVELOPMENT FINANCE <BR>AUTHORITY</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ </u></FONT><u><font size="2" face="Times New Roman, Times, serif">Scott L. Hardman, Chair&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scott L. Hardman, Chair</font></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>U.S. BANK NATIONAL ASSOCIATION, <br>
    as Trustee</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By:<u> &nbsp;&nbsp;&nbsp;&nbsp;/s/ </u></FONT><u><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><FONT face="Times New Roman, Times, Serif" size=2>Carolyn Whalen&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></u></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT face="Times New Roman, Times, Serif" size=2>Carolyn Whalen, Vice President</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;[SIGNATURE PAGE TO THE INDENTURE]</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT A </B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>FORM OF BONDS</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>STATEMENT OF INSURANCE</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>MBIA Insurance Corporation (the &#147;Insurer&#148;) has issued a policy containing the following provisions,
such policy being on file at the principal office of U.S. Bank National Association, as trustee under
the Indenture (as defined below) (the &#147;Trustee&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Insurer, in consideration of the payment of the premium and subject to the terms of the policy,
hereby unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of the following
described obligations, the full and complete payment required to be made by or on behalf of the Washington
Economic Development Finance Authority (the &#147;Issuer&#148;) to the Trustee or its successor (the
&#147;Paying Agent&#148;), of an amount equal to (i) the principal of (either at the stated maturity
or by any advancement of maturity pursuant to a mandatory sinking fund payment) and interest on,
the Obligations (as that term is defined below) as such payments shall become due but shall not be
so paid (except that in the event of any acceleration of the due date of such principal by reason
of mandatory or optional redemption or acceleration resulting from default or otherwise, other than
any advancement of maturity pursuant to a mandatory sinking fund payment, the payments guaranteed
hereby shall be made in such amounts and at such times as such payments of principal would have been
due had there not been any such acceleration); and (ii) the reimbursement of any such payment which
is subsequently recovered from any owner pursuant to a final judgment by a court of competent jurisdiction
that such payment constitutes an avoidable preference to such owner within the meaning of any applicable
bankruptcy law. The amounts referred to in clauses (i) and (ii) of the preceding sentence shall be
referred to herein collectively as the &#147;Insured Amounts.&#148; &#147;Obligations&#148; shall mean:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>$57,415,000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>TAXABLE ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 2003A<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>(CSC OF TACOMA LLC DETENTION FACILITY PROJECT)</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Upon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in writing by
registered or certified mail, or upon receipt of written notice by registered or certified mail,
by the Insurer from the Paying Agent or any owner of an Obligation the payment of an Insured Amount
for which is then due, that such required payment has not been made, the Insurer on the due date
of such payment or within one business day after receipt of notice of such nonpayment, whichever
is later, will make a deposit of funds, in an account with U.S. Bank Trust National Association,
in New York, New York, or its successor, sufficient for the payment of any such Insured Amounts which
are then due. Upon presentment and surrender of such Obligations or presentment of such other proof
of ownership of the Obligations, together with any appropriate instruments of assignment to evidence
the assignment of the Insured Amounts due on the Obligations as are paid by the Insurer, and appropriate
instruments to effect the appointment of the Insurer as agent for such owners of the Obligations
in any legal proceeding</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-1</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>related to payment of Insured Amounts on the Obligations, such instruments being in a form satisfactory
to U.S. Bank Trust National Association, U.S. Bank Trust National Association shall disburse to such
owners or the Paying Agent payment of the Insured Amounts due on such Obligations, less any amount
held by the Paying Agent for the payment of such Insured Amounts and legally available therefor.
This policy does not insure against loss of any prepayment premium which may at any time be payable
with respect to any Obligation.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>As used herein, the term &#147;owner&#148; shall mean the registered owner of any Obligation as indicated
in the books maintained by the Paying Agent, the Issuer, or any designee of the Issuer for such purpose.
The term owner shall not include the Issuer or any party whose agreement with the Issuer constitutes
the underlying security for the Obligations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Any service of process on the Insurer may be made to the Insurer at its offices located at 113 King
Street, Armonk, New York 10504 and such service of process shall be valid and binding.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This policy is non-cancelable for any reason. The premium on this policy is not refundable for any
reason including the payment prior to maturity of the Obligations.</FONT></P>
<P align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>MBIA Insurance Corporation </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>UNITED STATES OF AMERICA</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>TAXABLE ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 2003A<br>
(CSC OF TACOMA LLC DETENTION FACILITY PROJECT)</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>No. R-&nbsp;</FONT></td>
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;$________</FONT></td>
  </tr>
</table>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%" height="22"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="25%" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">INTEREST RATE </font></td>
    <td width="25%" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">MATURITY DATE </font></td>
    <td width="25%" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">CUSIP</font></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" valign="bottom" nowrap><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td align="center" valign="bottom" nowrap><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td align="center" valign="bottom" nowrap><font size="2" face="Times New Roman, Times, serif">&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</font></td>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">______________, 20__</font></td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>

<P><FONT face="Times New Roman, Times, Serif" size=2>REGISTERED OWNER:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CEDE &amp; CO. </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>PRINCIPAL AMOUNT:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THE WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY (the &#147;Authority&#148;), an instrumentality
of the State of Washington, for value received, hereby promises to pay (but only out of the source
hereinafter provided) to the Registered Owner identified above, or registered assigns as hereinafter
provided, on the Maturity Date identified above, the Principal Amount identified above, and to pay
(but only out of the source hereinafter provided) interest on the balance of said Principal Amount
from time to time remaining unpaid until payment of said Principal Amount has been made or duly provided
for, at the Interest Rate per annum set forth above payable on April 1 and October 1 of each year
commencing October 1, 2003, until the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-2</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2> obligation with respect to payment of the Principal Amount is discharged. Interest is calculated based
upon an assumption of a 360-day year of twelve 30-day months.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Both principal of and interest on this bond are payable in lawful money of the United States of America.
For so long as the bonds of this issue are held in fully immobilized form, payments of principal
and interest thereon shall be made as provided in accordance with the operational arrangements of
The Depository Trust Company (&#147;DTC&#148;) referred to in the Blanket Issuer Letter of Representations
(the &#147;Letter of Representations&#148;) from the Authority to DTC.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Bond is one of an authorized issue of bonds limited in aggregate principal amount to $57,415,000
(the &#147;Bonds&#148;) issued pursuant to and in full compliance with Resolution No. W-2003-002
duly adopted by the Authority on April 4, 2003, and the Constitution and laws of the State of Washington,
and particularly Chap. 43.163 of the Revised Code of Washington, as amended (the &#147;Act&#148;),
and issued under an Indenture of Trust (the &#147;Indenture&#148;), dated as of June 1, 2003, between
the Authority and the Trustee, for the purpose of providing financing for CSC of Tacoma LLC, a Delaware
limited liability company (the &#147;Borrower&#148;) of the costs of acquiring, constructing and
equipping a detention facility constituting economic development facilities within the meaning of
the Act in Tacoma, Washington (the &#147;Project&#148;), and the payment of necessary costs incidental
thereto. Proceeds from the sale of the Bonds are to be loaned by the Authority to the Borrower under
the terms of a Loan Agreement, dated as of June 1, 2003 (the &#147;Loan Agreement&#148;). The Bonds
are all issued under and secured by and entitled to the benefits of the Indenture, including the
security of a pledge and assignment of certain revenues and receipts derived by the Authority pursuant
to the Loan Agreement.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Counterparts or copies of the Indenture and the other documents referred to herein are on file at the
office of the Trustee and reference is hereby made thereto and to the documents referred to therein
for the provisions thereof, including the provisions with respect to the rights, obligations, duties,
powers and immunities of the Authority, the Trustee, the Borrower, and the registered owners of the
Bonds under such documents. Capitalized terms used in this Bond and not otherwise defined herein
shall have the meanings given such terms in the Indenture.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Bonds are subject to optional and mandatory redemption prior to maturity, as provided in the Indenture.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Bond may be transferred or exchanged by the registered owner hereof in person or by his attorney
duly authorized in writing at the Designated Office of the Trustee but only in the manner, subject
to the limitations and upon payment of the charges provided in the Indenture, and upon surrender
and cancellation of this Bond. Upon such transfer or exchange a new registered Bond or Bonds, of
Authorized Denomination or Denominations, for the same aggregate principal amount will be issued
to the transferee in exchange herefor.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>THIS BOND IS A SPECIAL LIMITED OBLIGATION OF THE AUTHORITY. THIS BOND SHALL NOT BE DEEMED TO CONSTITUTE
A DEBT, LIABILITY OR </B><B>GENERAL OBLIGATION OF THE AUTHORITY OR THE STATE OF WASHINGTON </B><B>OR ANY POLITICAL SUBDIVISION THEREOF, OR A PLEDGE OF THE FAITH AND </B><B>CREDIT OF THE AUTHORITY OR THE STATE OF WASHINGTON OR ANY SUCH</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-3</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2><B>POLITICAL SUBDIVISION, BUT SHALL BE PAYABLE SOLELY FROM THE REVENUES AND PROCEEDS PROVIDED THEREFOR. THE AUTHORITY SHALL NOT BE OBLIGATED TO PAY THE SAME NOR INTEREST OR PREMIUM, IF ANY, THEREON EXCEPT FROM THE REVENUES AND PROCEEDS PLEDGED THEREFOR, AND NEITHER THE FAITH AND CREDIT NOR
THE TAXING POWER OF THE STATE OF WASHINGTON OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF OR THE INTEREST OR PREMIUM, IF ANY, ON THE BONDS. THE AUTHORITY HAS NO
TAXING POWER.</B></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The registered owner of this Bond shall have no right to enforce the provisions of the Indenture or
to institute an action to enforce the covenants thereof, or to take any action with respect to a
default hereof, or to institute, appear in or defend any suit or other proceedings with respect thereto,
except as provided in the Indenture.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Indenture and other documents referred to therein may be modified or amended to the extent permitted
by and as provided therein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Upon the occurrence of certain Events of Default (as defined in the Indenture), all Bonds may be declared
immediately due and payable and thereupon shall become and be immediately due and payable as provided
in the Indenture.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Authority, the Trustee and any successor paying agent may treat the registered owner of this Bond
as the absolute owner for the purpose of receiving payment as herein provided and for all other purposes
and none of them shall be affected by any notice to the contrary.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required to exist, to happen
and to be performed precedent to and in the issuance of this bond have existed, have happened and
have been performed in due form, time and manner as required by law.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the Authority has caused this Bond to be executed in its name by the manual or
facsimile signatures of its Chair and attested by the manual or facsimile signature of its Secretary,
all as of __ ________&nbsp;, 2003.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD width="63%" valign=top>&nbsp;</TD>
<TD width="37%" valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC <BR>
  DEVELOPMENT FINANCE <BR>
  AUTHORITY</FONT></TD></TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>By: ________________________________________ </FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>Name: ______________________________________</FONT></TD>
</TR>
<TR>
  <TD height="20" valign=top>&nbsp;</TD>
  <TD align="left" valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>Chair</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-4</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="25%"><FONT face="Times New Roman, Times, Serif" size=2>Attest:</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>_____________________________________</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Secretary</FONT></td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>CERTIFICATE OF AUTHENTICATION</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The undersigned Trustee hereby certifies that this is one of the bonds described in the within-mentioned
Indenture.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Date ____________________________</FONT></td>
    <td width="10%">&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>________________________________,  as Trustee</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>By ____________________________________</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="top"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Representative</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>  (Form of Assignment)</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The following abbreviations, when used in the inscription on the face of this certificate, shall be
construed as though they were written out in full according to applicable laws or regulations:</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="13%" nowrap><FONT face="Times New Roman, Times, serif" size=2>TEN COM &#151;</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>as tenants in common</FONT></td>
    <td width="10%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>&nbsp;UNIF GIFT/TRANS MIN ACT</FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>TEN ENT &#151;</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>as tenants by the entireties</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>_____________ Custodian __________</FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>JT TEN &#151;</FONT></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>as joint tenants with right of </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left"><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Cust)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Minor)</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>survivorship and not as tenants in </FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Under Uniform Gifts/Transfers to Minors Act</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>common</FONT></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td nowrap><FONT face="Times New Roman, Times, serif" size=2>________________________________</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="left" valign="top"><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(State)</FONT></td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Additional abbreviations may also be used, though not in the above list.</FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><U>ASSIGNMENT</U></FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto ________ _________________________________________________________________________________</FONT></td>
  </tr>
  <tr>
    <td height="40" align="center" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(Please Print or Typewrite Name, Address and Social Security Number <br>
or other Federal Tax Identification Number of Assignee)</FONT></td>
  </tr>
</table>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td height="25">&nbsp;</td>
    <td width="50%" style="BORDER:1px solid #000000">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<br>
<TABLE width="100%"  border="0" cellspacing="0" cellpadding="0">
<TR>
<TD valign="top" ><FONT face="Times New Roman, Times, Serif" size=2>the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints ________ _________________________________________________________________________________</FONT></TD>
</TR>
<TR>
<TD><FONT face="Times New Roman, Times, Serif" size=2>attorney to transfer the within bond on the books kept for registration thereof, with full power of

    substitution in the premises.</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-5</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="49%"><FONT face="Times New Roman, Times, Serif" size=2>Date _____________________________________</FONT></td>
    <td>&nbsp;</td>
    <td width="49%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Signature Guaranteed:</FONT></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>______________________________________</FONT></td>
    <td>&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>______________________________________</FONT></td>
  </tr>
  <tr>
    <td align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>(Signature(s) must be guaranteed by an eligible&nbsp;<br>
    guarantor institution pursuant to Securities and <br>
    Exchange Commission Rule 17Ad-15.)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Note: The signature(s) on this assignment&nbsp;<br>
    must correspond with the name(s) as written on&nbsp;<br>
    the face of the within registered certificate in<br>
    every particular without alteration or<br>
    enlargement or any change whatsoever.</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-6</FONT></P>
<HR color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT B</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>FORM OF PROJECT FUND <BR></B><B>REQUISITION CERTIFICATE</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>$57,415,000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Washington Economic Development Finance Authority<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Taxable Economic Development Revenue Bonds, Series 2003A<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>(CSC of Tacoma LLC Detention Facility Project)</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Requisition No</U>.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="center" nowrap><FONT face="Times New Roman, Times, Serif" size=2>______________________________________</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Borrower Representative</FONT></td>
  </tr>
</table>
<P align=right>&nbsp;</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>APPROVED BY CONSTRUCTION MANAGER: </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Washington Construction Services, Inc.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By; ___________________________________________ </FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Its ________________________________________:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>B-1</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT C</B></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>FORM OF OPERATING RESERVE FUND/ <BR>REPAIR AND REPLACEMENT FUND REQUISITION CERTIFICATE<BR>
</B></FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD align="center" valign=top><FONT face="Times New Roman, Times, Serif" size=2>$57,415,000<br>
  Washington Economic Development Finance Authority<br>
  Taxable Economic Development Revenue Bonds<br>
  (CSC of
Tacoma LLC Detention Facility Project),<br>
Series 2003A</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Requisition No</U>.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>C-1</FONT></P>
<HR color=#000000 noshade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT D</B></FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>FORM OF COSTS OF ISSUANCE</B><B><br>
FUND REQUISITION CERTIFICATE</B></FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>$57,415,000<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Washington Economic Development Finance Authority<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>Taxable Economic Development Revenue Bonds, Series 2003A<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>(CSC of Tacoma LLC Detention Facility Project)</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Requisition No</U>.<br>
</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="30%" align="center" nowrap><FONT face="Times New Roman, Times, Serif" size=2>______________________________________</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>Borrower Representative</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>D-1</FONT></P>
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<TYPE>EX-10
<SEQUENCE>10
<FILENAME>ex10-84.htm
<DESCRIPTION>EXHIBIT 10.84
<TEXT>
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<HEAD>
<TITLE></TITLE>
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<BODY>
<P align=right><FONT size=2><b>Exhibit 10.84</b></FONT></P>

<HR size="2" noshade color=#000000>
<P align=center>&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>LOAN AGREEMENT</B></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>Between</FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>WASHINGTON ECONOMIC DEVELOPMENT FINANCE AUTHORITY</B></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>and</FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CSC OF TACOMA LLC, a Delaware limited liability company</B></FONT> </td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>Dated as of June 1, 2003</FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2>Relating to</FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>$57,415,000<BR>
Washington Economic Development Finance Authority<BR>
Taxable Economic Development Revenue Bonds, Series 2003A<BR>
(CSC of Tacoma LLC Project)</B></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
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<P align=center><FONT face="Times New Roman, Times, serif" size=2></FONT></P>

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<p style="page-break-before: always">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>TABLE OF CONTENTS</B></FONT></P>
<TABLE width="100%"  border="0" cellspacing="0" cellpadding="0">
<TR valign="bottom">
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif"><b>Page</b></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
  <TD height="22" colspan="6" align="center">&nbsp;</TD>
</TR>
<TR valign="top">
<TD height="22" colspan="6" align="center"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE I DEFINITIONS</FONT></TD>
</TR>
<TR valign="bottom">
<TD width="11%" height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 1.1</FONT></TD>
<TD width="3%" height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#definitions">Definitions</a></FONT></TD>
<TD width="2%" height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD width="3%" height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">1</FONT></TD>
<TD width="2%" height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="middle">
<TD height="25" colspan="6" align="center"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE II REPRESENTATIONS AND WARRANTIES</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 2.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#representations">Representations and Warranties of the Borrower</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 2.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#representations1">Representations and Warranties of the Authority</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="25" colspan="6" align="center" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE III ISSUANCE OF BONDS; LOAN OF PROCEEDS</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 3.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#the">The Bonds </a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">4 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR align="center" valign="bottom">
<TD height="25" colspan="6" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE IV REPAYMENT OF LOAN</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 4.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><p align="left"><a href="#loan"><FONT size="2" face="Times New Roman, Times, serif">Loan Repayments</FONT></a></p></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 4.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#additional">Additional Payments</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">5</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 4.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#security">Security for Borrower Obligations</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">6 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 4.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#obligations">Obligations of the Borrower Unconditional; Net Contract</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">6</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 4.5</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#extraordinary">Extraordinary Optional Prepayment</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">7</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="25" colspan="6" align="center" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE V PARTICULAR COVENANTS</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#assignments">Assignments</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">7</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#mergers">Mergers or Consolidations</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#obligations1">Obligations Under the Indenture</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#consent">Consent to Assignment</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.5</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#continuing">Continuing Disclosure</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.6</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#annual">Annual Budget</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">14 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.7</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#notice">Notice of Termination for Convenience</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">14 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 5.8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#limitation">Limitation on Lending</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">14 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR align="center" valign="bottom">
<TD height="25" colspan="6" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE VI THE PROJECT</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#completion">Completion and Payment of Cost Deficiencies</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">14 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#permits">Permits, Licenses and Consents</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">15 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"><a href="#maintenance">Maintenance and Operation of the Detention Facility</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">15 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#use">Use of Detention Facility</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">15 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.5.</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#taxes">Taxes, Other Governmental Charges and Utility Charges</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">15 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.6.</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#insurance">Insurance</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">16 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.7</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#pledge">Pledge of Facility Revenues and other Amounts Payable under the Use Agreement</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">20 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 6.8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#revenue">Revenue Covenant</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">20</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="25" colspan="6" align="center" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE VII EXPENSES, INDEMNIFICATION</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 7.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#expenses">Expenses</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">20 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 7.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#indemnification">Indemnification</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">20 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 7.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><a href="#payment"><FONT size="2" face="Times New Roman, Times, serif"> Payment of Trustee</FONT></a></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">21 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 7.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#survive">Survive Termination</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">21 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="25" colspan="6" align="center" valign="middle"><FONT size="2" face="Times New Roman, Times, serif">ARTICLE VIII LOAN DEFAULT EVENTS AND REMEDIES</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#loan1">Loan Default Events</a></FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18" align="right"><FONT size="2" face="Times New Roman, Times, serif">21 </FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT size="2" face="Times New Roman, Times, serif">-i-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<TABLE width="100%"  border="0" cellspacing="0" cellpadding="0">
<TR valign="bottom">
<TD width="11%" height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.2</FONT></TD>
<TD width="3%" height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#remedies">Remedies on Default</a></FONT></TD>
<TD width="2%"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD width="3%" align="right"><FONT size="2" face="Times New Roman, Times, serif">22</FONT></TD>
<TD width="2%"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#remedies1">Remedies Not Exclusive; No Waiver of Rights</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">23</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#expenses1">Expenses on Default</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">23</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.5</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#notice1">Notice of Default; Other Notices</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">23</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 8.6</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><a href="#no"><FONT size="2" face="Times New Roman, Times, serif"> No Liability of Member and Managers Hereunder</FONT></a></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">24</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR align="center" valign="bottom">
<TD height="25" colspan="6" valign="middle"><FONT size="2" face="Times New Roman, Times, serif"> ARTICLE IX MISCELLANEOUS </FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.1</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#further">Further Assurances</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">24</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.2</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#amendment">Amendment of Indenture</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">24</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.3</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#notices">Notices</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">24</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.4</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#governing">Governing Law</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif"> 25</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.5</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#binding">Binding Effect</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif"> 25</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.6</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#severability">Severability of Invalid Provisions</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">25</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.7</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#article">Article and Section Headings and References</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">25</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.8</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#execution">Execution of Counterparts</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">26</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.9</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#term">Term of Loan Agreement</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">26</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.10</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#washington">Washington State Notice</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">26</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Section 9.11</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#commercial">Commercial Purposes</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">26</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
  <TD height="18">&nbsp;</TD>
  <TD height="18">&nbsp;</TD>
  <TD height="18">&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align="right">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Exhibit A:</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#project">Project Description</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">Exhibit B:</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD height="18"><FONT size="2" face="Times New Roman, Times, serif"> <a href="#form">Form of Quarterly Disclosing Certificate</a></FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD align="right"><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
<TD><FONT size="2" face="Times New Roman, Times, serif">&nbsp;</FONT></TD>
</TR>
</TABLE>

<P align=center><FONT face="Times New Roman, Times, serif" size=2>-ii-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>LOAN AGREEMENT</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THIS LOAN AGREEMENT, dated as of June 1, 2003, between the Washington Economic Development Finance
Authority, an instrumentality of the State of Washington (the &#147;Authority&#148;), and CSC of
Tacoma, LLC, a Delaware limited liability company (the &#147;Borrower&#148;),</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>W&nbsp;I&nbsp;T&nbsp;N E&nbsp;S S E&nbsp;T H:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Authority adopted its Resolution No. W-2003-002 on April 4, 2003 (the &#147;Resolution&#148;), authorizing the issuance of its Economic Development Revenue Bonds, Series 2003A (CSC of Tacoma LLC Project), in the aggregate principal amount of $57,415,000 (the &#147;Bonds&#148;), to finance the costs of acquiring, constructing and equipping of a Detention Facility in Tacoma, Washington (the &#147;Project&#148;), pursuant to an Indenture of Trust, dated as of June 1, 2003 (as originally executed and as thereafter supplemented, modified or amended, the &#147;Indenture&#148;) between the Authority and U.S. Bank National Association, as Trustee (the &#147;Trustee&#148;); and</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Authority and the Borrower each has duly authorized the execution and delivery of this Loan Agreement;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, for and in consideration of the premises and the material covenants hereinafter contained, the parties hereto hereby formally covenant, agree and bind themselves as follows:</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE I </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><a name="DEFINITIONS"></a>DEFINITIONS</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 1.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>  <U>Definitions</U>. Capitalized terms used in this Loan Agreement shall have the same meanings as given to such terms in the Indenture.</FONT>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE II </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><a name="REPRESENTATIONS"></a>REPRESENTATIONS AND WARRANTIES</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>  <U>Representations and Warranties of the Borrower</U>. The Borrower makes the following representations and warranties to the Authority as of the date of the execution of this Loan Agreement and as of the date of issuance of the Bonds:</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower is a limited liability company duly organized and existing under the laws of the State
of Delaware and has full legal right, power and authority to enter into this Loan Agreement and to
carry out and consummate all transactions contemplated by this Loan Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> This Loan Agreement has been duly authorized, executed and delivered by the Borrower and, assuming
due authorization, execution and delivery by the Authority, this Loan Agreement will constitute the
legal, valid and binding agreement of the Borrower with the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2></FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<FONT face="Times New Roman, Times, Serif" size=2>Authority enforceable against the Borrower in accordance with its terms for the benefit of the Owners of the Bonds, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws or equitable principles relating to or limiting creditors&#146; rights.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The execution and delivery of this Loan Agreement, the consummation of the transactions herein contemplated
and the fulfillment of or compliance with the terms and conditions hereof will not conflict with
or constitute a violation or breach of or default (with due notice or the passage of time or both)
under the Borrower&#146;s Amended and Restated Limited Liability Company Agreement, or, to the best
of its knowledge, any applicable law or administrative rule or regulation, or any applicable court
or administrative decree or order, or any indenture, mortgage, deed of trust, loan agreement, lease,
contract or other agreement or instrument to which the Borrower is a party or by which it or its
properties are otherwise subject or bound, or result in the creation or imposition of any prohibited
lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower,
which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that
would materially and adversely affect the consummation of the transactions contemplated by this Loan
Agreement or the financial condition, assets, properties or operations of the Borrower or its properties.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> No consent or approval of any trustee or holder of any indebtedness of the Borrower, and no consent,
permission, authorization, order or license of, or filing or registration with, any governmental
authority is necessary in connection with the execution and delivery of this Loan Agreement or the
consummation of any transaction herein contemplated, except such as are required in connection or
compliance with the provisions of the securities or &#147;Blue Sky&#148; laws of any jurisdiction,
as are required for issuance of the Bonds, and as have been obtained or made and as are in full force
and effect.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> There is no action, suit, proceeding, inquiry or investigation before or by any court or federal,
state, municipal or other governmental authority pending or, to the knowledge of the Borrower after
reasonable investigation, threatened against or affecting the Borrower or the assets, properties
or operations of the Borrower that, if determined adversely to the Borrower, would have a material
and adverse effect upon the consummation of the transactions contemplated by or the validity of this
Loan Agreement or upon the financial condition, assets, properties or operations of the Borrower,
and the Borrower is not in default with respect to any order or decree of any court or any order,
regulation or demand of any federal, state, municipal or other governmental authority, which&nbsp;default
might have consequences that would materially and adversely affect the consummation of the transactions
contemplated by this Loan Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> No written information, exhibit or report furnished to the Authority or the Underwriter by the Borrower
in connection with the negotiation of this Loan Agreement or the transactions contemplated thereby
contains any untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-2-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The information pertaining to the Borrower in the Official Statement does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Detention Facility shall be located at 1623 East J Street in Tacoma, Washington, which is within the federally-designated Tacoma Renewal Community.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="REPRESENTATIONS1"></a>Representations and Warranties of the Authority</U>. &nbsp;&nbsp;The Authority makes the following representations as the basis for its undertakings herein contained.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Authority is an instrumentality of the State of Washington. Under the provisions of the Resolution,
the Authority has the power to enter into the transactions contemplated by this Loan Agreement and
to carry out its obligations hereunder. By proper action, the Authority has been duly authorized
to execute, deliver and duly perform this Loan Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> To finance Costs of the Project, the Authority will issue its Bonds, which will mature, bear interest
and be subject to redemption as set forth in the Indenture.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Bonds will be issued under and secured by the Indenture, pursuant to which the Authority&#146;s
interest in this Loan Agreement (except for Reserved Rights) will be assigned to the Trustee as security
for payment of the principal of, premium, if any, and interest on the Bonds.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Authority is not in default under any of the provisions of the laws of the State of Washington,
which default would affect its existence or its powers referred to in subsection (a) of this Section
2.2.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Authority has found and determined and hereby finds and determines that all requirements of the
Act and the Resolution with respect to the issuance of the Bonds and the execution of this Loan Agreement
have been complied with.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> This Loan Agreement, when executed and delivered by the Borrower, will constitute a valid and binding
obligation of the Authority, enforceable against it in accordance with its terms, except as the binding
effect and enforceability thereof may be limited by applicable laws in effect from time to time affecting
the rights of creditors and except to the extent that the enforceability thereof may be limited by
the application of general principles of equity.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The execution and delivery of this Loan Agreement and the compliance with the terms, conditions or
provisions thereof, and the consummation of the transactions herein contemplated do not and will
not violate any law, regulation, order, writ, injunction or decree of any court or governmental body
or result in a breach of any of the terms, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of any mortgage, lien, charge or encumbrance of any nature
whatsoever upon any of the properties or assets of the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-3-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>Authority pursuant to any mortgage, resolution, agreement or instrument to which the Authority is a party or by which it or any of its properties is bound other than those provided for in or contemplated by this Loan Agreement.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The information pertaining to the Authority in the Official Statement does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> There is no action, suit, proceeding, inquiry or investigation by or before any court, governmental agency or public board or body pending against the Authority or, to the best knowledge of the Authority, threatened against the Authority that (i) affects or seeks to prohibit, restrain or enjoin the issuance of the Bonds, or the execution and delivery of the Bonds or the loaning of the proceeds of the Bonds to the Borrower, or the execution and delivery of the Indenture or the
Loan Agreement, or (ii) affects or questions the validity or enforceability of the Bonds, the Indenture or the Loan Agreement.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE III</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ISSUANCE OF BONDS; LOAN OF PROCEEDS</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 3.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="the" id="the"></a></FONT> <U>The Bonds</U>. &nbsp;&nbsp;The Authority has authorized the issuance of the Bonds pursuant to the Indenture in the aggregate principal amount of $57,415,000. The Authority hereby lends and advances to the Borrower and the Borrower hereby borrows and accepts from the Authority (solely from the proceeds of the sale of the Bonds) the amount of $57,415,000, to be applied under the terms and conditions of this Loan Agreement and the Indenture. The Borrower hereby approves the Indenture and the form of Bonds therein, the assignment thereunder to the Trustee of
the rights, title and interests of the Authority (with certain exceptions described therein) in this Loan Agreement, and the issuance thereunder by the Authority of the Bonds.</FONT>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE IV</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>REPAYMENT OF LOAN</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><a name="loan" id="loan"></a> <U>Loan Repayments</U>. &nbsp;&nbsp;In consideration of the issuance of the Bonds by the Authority and the lending of the proceeds thereof
to the Borrower, the Borrower agrees that on or before each day on which a payment of principal of,
premium, if any, and/or interest on the Bonds is due and payable under the terms thereof and of the
Indenture, including the disbursement provisions of Section 5.04 of the Indenture, whether at maturity,
or upon extraordinary optional redemption, it shall pay or cause to be paid to the Trustee such amount
as is necessary to pay when due the principal of, premium, if any, and/or interest on the Bonds and
to pay when due any and all Reimbursement Obligations. Each payment to the Trustee hereunder (the
&#147;Loan Repayments&#148;) shall be in immediately available funds in lawful money of the United
States of America and paid to the Trustee at its Principal Office during normal banking hours, and
be held, invested, disbursed and applied as provided in the Indenture.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-4-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>It is the intention of the Authority and the Borrower that the Trustee, as assignee of the Authority&#146;s rights under this Loan Agreement pursuant to the Indenture, shall receive funds from or on behalf of the Borrower, including funds the Trustee may receive as assignee of the Operator pursuant to the Assignment of Claims or any similar assignment of payments under an Agency Contract, in such amounts and at such times as will enable the Authority to make all payments of principal of, premium, if any, and interest on the Bonds. The Borrower shall receive a credit against its obligations to make Loan Repayments to the extent of funds available in the Bond Fund to pay such amounts.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="additional"></a>Additional Payments</U>. &nbsp;&nbsp;In addition to Loan Repayments, the Borrower shall also pay &#147;Additional Payments,&#148; as follows:</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All taxes and assessments of any type or character charged to the Authority or to the Trustee affecting
the amount available to the Authority or the Trustee from payments to be received hereunder or in
any way arising due to the transactions contemplated hereby (including taxes and assessments assessed
or levied by any public agency or governmental authority of whatsoever character having power to
levy taxes or assessments, but excluding franchise taxes based upon the capital, income or revenues
of the Trustee and taxes based upon or measured by the net income or revenues of the Trustee); provided,
however, that the Borrower shall have the right to protest any such taxes or assessments and to require
the Authority or the Trustee, as the case may be, at the Borrower&#146;s expense, to protest and
contest any such taxes or assessments assessed or levied upon them, subject to the provisions of
Sections 6.5 hereof;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> In accordance with written fee agreements and fee schedules therefor, all fees, charges and expenses
of the Trustee, as and when the same become due and payable pursuant to the agreement between the
Borrower and the Trustee and the indemnification provisions of the Indenture and Sections 7.2 and
7.3 hereof;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The reasonable fees and expenses of such accountants, consultants, attorneys and other experts as
may be engaged by the Trustee to prepare audits, financial statements, reports or opinions or to
provide such other services required under this Loan Agreement or the Indenture;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All payments provided in the Indemnification and Compensation Agreement;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All payments required to replenish the Debt Service Reserve Fund in accordance with Section 5.07 of
the Indenture;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All payments required to replenish the Repair and Replacement Fund in accordance with Section 5.08
of the Indenture;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All payments required to replenish the Insurance and Property Taxes Fund in accordance with Section
5.10 of the Indenture;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-5-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All deposits required to be made to the Operating Reserve Fund in accordance with Section 5.09 of the Indenture; and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All Reimbursement Obligations not paid as Loan Repayments and the Insurer&#146;s Surveillance Fee.</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such
  Additional Payments shall be billed to the Borrower from time to time by the
  Authority or the Trustee, as the case may be, together with a statement certifying
  that the amount billed has been incurred or paid for one or more of the above
  items in all invoices relating thereto. Except as otherwise provided in the
  Indenture with respect to Additional Payments described in subparagraphs (e),
  (f), (g), and (h) above, amounts so billed shall be paid by the Borrower within
  30 days after receipt of the bill by the Borrower; provided, that the Authority
  or the Trustee may require that any item constituting an Additional Payment
  for which the Authority or the Trustee is itself unable to pay on an open account
  or deferred basis be paid by the Borrower within two days of written notice
  thereof before any expense is incurred for such item.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>It is the intention of the Authority and the Borrower that the Trustee, as assignee of the Authority&#146;s rights under this Loan Agreement pursuant to the Indenture, shall receive funds from or on behalf of the Borrower, including funds the Trustee may receive as assignee of the Operator pursuant to the Assignment of Claims, in such amounts and at such times to make the Additional Payments described in Sections 4.2(e), (f) and (g) hereof. The Borrower shall receive a credit against its obligations to make such Additional Payments to the extent of funds available in the Revenue Fund to pay such amounts in accordance with the provisions for replenishment of the Debt Service Reserve Fund,
the Repair and Replacement Fund and the Insurance and Property Taxes Fund in accordance with Sections 5.07, 5.08 and 5.10 of the Indenture, respectively.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4.3</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="security"></a>Security for Borrower Obligations</U>. &nbsp;&nbsp;The Borrower&#146;s obligations hereunder to pay the Loan Repayments shall be secured by the Borrower&#146;s execution and delivery of the Deed of Trust, the Assignment of Leases and the Assignment Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4.4</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="obligations"></a>Obligations of the Borrower Unconditional: Net Contract</U>. &nbsp;&nbsp;The obligations of the Borrower to make the Loan Repayments required hereunder and to perform and
observe the other agreements on its part contained herein shall be absolute and unconditional, and
shall not be abated, rebated, set-off, reduced, abrogated, terminated, waived, diminished, postponed
or otherwise modified in any manner or to any extent whatsoever, while any Bonds remain Outstanding,
regardless of any contingency, act of God, event or cause whatsoever, including, without limiting
the generality of the foregoing, any acts or circumstances that may constitute failure of consideration,
eviction or constructive eviction, the taking by eminent domain or destruction of or damage to the
Detention Facility, commercial frustration of purpose, any change in the laws of the United States
of America or of the State of Washington or any political subdivision of either or in the rule or
regulations of any governmental authority. The Borrower shall pay the Loan Repayments regardless
of any rights of set-off, recoupment, abatement or counterclaim that the Borrower might otherwise
have against the Authority, the Trustee, or any</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-6-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>other party or parties. The Borrower&#146;s obligation to pay Additional Payments are subject to other terms and conditions contained in the Indenture and in its agreements with the Authority.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4.5</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="extraordinary" id="extraordinary"></a>Extraordinary Optional Prepayment</U>. &nbsp;&nbsp;The Borrower shall have the right at the times and upon the prior notice provided in Section 3.03 of the Indenture to prepay all or any part of the Loan Repayments as provided herein, and the Authority agrees that the Trustee shall accept such prepayments when the same are made as provided herein. All such prepayments shall be deposited upon receipt in the Bond Fund established under the Indenture. The Borrower also shall have the right to surrender Bonds acquired by it in any manner whatsoever to the
Trustee for cancellation, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and surrendered, and the Trustee shall cancel the surrendered Bonds and delete them from the Bond Register. Notwithstanding any such prepayment or surrender of Bonds, as long as any Bonds remain Outstanding or any Reimbursement Obligations or Additional Payments remain unpaid, the Borrower shall not be relieved of its obligations hereunder.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Borrower is not in default in the payment of any Reimbursement Obligations or Additional Payments, the Authority, at the request of the Borrower, at any time that there is on deposit with the Trustee money or securities in the amount necessary to pay or redeem all Bonds Outstanding and to pay all Reimbursement Obligations (as provided in Article IX of the Indenture), shall forthwith take all steps that may be necessary to discharge the entire indebtedness on all Bonds Outstanding.</FONT> </P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE V</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>PARTICULAR COVENANTS</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="assignments"></a>Assignments</U>. &nbsp;&nbsp;This Loan Agreement may be assigned by the Borrower subject, however, to each of the following conditions:</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> No assignment shall relieve the Borrower from primary liability for any of its obligations hereunder,
and in the event of any such assignment the Borrower shall continue to remain primarily liable for
the payments specified in Article IV hereof and for performance and observance of the other agreements
on its part herein provided to be performed and observed by it to the same extent as though no assignment
had been granted, unless the Borrower shall have delivered to the Authority and the Trustee an Opinion
of Counsel in form and substance satisfactory to the Authority and the Trustee that a release from
such liability is not prohibited by the Act.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Any assignment by the Borrower shall retain for the Borrower such rights and interests as will permit
it to perform its obligations under this Loan Agreement and any assignee of the Borrower shall assume
the obligations of the Borrower hereunder to the extent of the interest assigned; and under such
circumstances such assignee shall agree in writing with the Authority to operate the Detention Facility
or portion thereof assigned as an economic development activity within the meaning of the Act.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-7-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower shall, at least 30 days prior to the proposed delivery thereof, furnish or cause to be furnished to the Authority, Insurer and the Trustee a form of each such assignment together with an instrument of assumption of obligation.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower shall first obtain the written consent of the Authority, which consent shall not be unreasonably withheld, and the written consent of the Insurer.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower shall, within 30 days after delivery thereof, furnish or cause to be furnished to the Insurer, Authority and Trustee a true and complete copy of each such assignment together with an instrument of assumption of obligation.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The foregoing restrictions shall not apply to any assignment of this Loan Agreement in connection with any consolidation, merger or transfer of assets permitted by Section 5.2.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="mergers"></a>Mergers or Consolidations</U>. &nbsp;&nbsp;The Borrower agrees that during the term of this Loan Agreement it will:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Maintain its existence and will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge into any other entity or permit one or more entities to consolidate with or merge into it; provided that with the prior written consent of the Insurer, the Borrower may, without violating the covenants contained in this Section, consolidate with or merge into another entity, or permit one or more other entities to consolidate with
or merge into it, or sell or otherwise transfer to another entity all or substantially all of its assets and thereafter dissolve, provided that the surviving, resulting or transferee entity, as the case may be, (i) assumes and agrees in writing to pay and perform all of the obligations of the Borrower hereunder, and (ii) qualifies to do business in the State.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Maintain its qualification to do business in the State, except as otherwise permitted by Section 5.2(a) hereof.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>A copy of each proposed instrument of assumption described in Section 5.2(a)(i) herein shall be provided to the Insurer, the Trustee and the Authority at least 30 days prior to the proposed effective date of such assumption, and promptly upon its execution, a copy of each such instrument of assumption shall be provided to the Insurer, the Trustee and the Authority.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.3</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="obligations1" id="obligations1"></a></FONT> <U>Obligations Under the Indenture</U>.&nbsp;&nbsp; The Borrower hereby agrees to all terms and provisions of the Indenture and accepts each of its obligations expressed thereunder.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.4</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><a name="consent"></a> <U>Consent to Assignment</U>. &nbsp;&nbsp;Under the Indenture, the Authority has assigned to the Trustee for the benefit of the Owners all
rights and interest of the Authority in and to this Loan Agreement (except its Reserved Rights),
and the Borrower hereby acknowledges and consents to such assignment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section 5.5</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="continuing"></a>Continuing Disclosure</U>.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> This Section 5.5 constitutes the written undertaking for the benefit of the</FONT>
</P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-8-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>Owners of the Bonds as required by Section (b)(5)(i) of Securities and Exchange Commission Rule 15c2-12
under the Securities Exchange Act of 1934, as amended (17 CFR Part 240, &#167;240.15c2-12) (the &#147;Rule&#148;).
It is the Borrower&#146;s express intention that this Section 5.5 be assigned pursuant to and in
accordance with Granting Clause First of the Indenture to the Trustee, acting as the dissemination
agent (the &#147;Dissemination Agent&#148;), for the benefit of the Bondowners and that each Bondowner
be a beneficiary of this Section 5.5 with the right to enforce this Section 5.5 directly against
the Borrower. Each Bondowner&#146;s right of enforcement shall be limited solely to the right to
seek specific performance of the Borrower&#146;s obligations under this Section 5.5. Capitalized
terms used in this Section and not otherwise defined in this Loan Agreement shall have the meanings
assigned such terms in subsection (d) hereof.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower, as an &#147;obligated person&#148; within the meaning of the Rule, undertakes to provide the following information, or cause the Operator to provide the following information, as provided in this Section 5.5:</FONT><BR>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=150>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(1)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Quarterly Financial Information;</FONT></TD></TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(2)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Audited Financial Statements; and</FONT></TD></TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=135>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>(3)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Material Event Notices.</FONT></TD></TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD></TR></TABLE>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower shall while any Bonds are Outstanding and any amount is owing under this Loan Agreement provide the Quarterly Financial Information to the Dissemination Agent, on or before February 15, May 15, August 15, and November 15 of each year (the &#147;Submission Date&#148;), beginning on November 15, 2004, and the Dissemination Agent, as the agent of the Authority and the Borrower, shall provide to the Authority and to each then
existing NRMSIR and the SID, if any, such Quarterly Financial Information on or before September 1 of each year (the &#147;Report Date&#148;) while any Bonds are Outstanding or, if not received by the Dissemination Agent, by the Submission Date, then within the later of five Business Days after of its receipt by the Dissemination Agent or September 1 of each year. The Borrower shall include with each submission of Quarterly Financial Information to the Dissemination Agent and the Authority a written representation addressed to the Dissemination Agent, and the Authority to the effect that the Quarterly Financial Information is the Annual Financial Information required by this Section 5.5 and that it complies with the applicable requirements of this Section 5.5.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Borrower may adjust the Submission Date and the Report Date if the Borrower changes its Fiscal
Year by providing written notice of the change of Fiscal Year and the new Submission Date and Report
Date to the Dissemination Agent, the Authority, each then existing NRMSIR and the SID, if any; provided
that the new Report Date shall be seven months after the end of the new Fiscal Year and the new Submission
Date shall be 30 days prior to the Report Date, and provided further that the period between the
final Report Date relating to the former Fiscal Year and the initial Report Date relating to the
new Fiscal Year shall not exceed one year in duration. It shall be sufficient if the Borrower provides
to the Dissemination Agent, and the Dissemination Agent provides to the Authority and to each then
existing NRMSIR and SID, if any, the Annual Financial Information by specific reference to documents
previously provided to</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-9-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>each NRMSIR and the SID, if any, or filed with the Securities and Exchange Commission and, if such
a document is a final official statement within the meaning of the Rule, available from the Municipal
Securities Rulemaking Board (the &#147;MSRB&#148;).</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(2)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Borrower shall provide the Audited Financial Statements to the Dissemination Agent, when available
while any Bonds are Outstanding, and the Dissemination Agent shall then promptly provide the Authority
and each then existing NRMSIR and the SID, if any, with such Audited Financial Statements.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(3)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Material Event occurs while any Bonds are Outstanding, the Borrower shall provide a
Material Event Notice to the Dissemination Agent, promptly and the Dissemination Agent shall promptly
provide to the Authority, the MSRB and the SID, if any, such Material Event Notice. Each Material
Event Notice shall be so captioned and shall prominently state the date, title and CUSIP numbers
of the Bonds.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall promptly advise the Borrower whenever,</FONT>
<FONT face="Times New Roman, Times, Serif" size=2>in the course of performing its duties as Trustee under the Indenture, the Trustee, has actual notice
of an occurrence listed as a Material Event pursuant to clause (d)(6) of this Section 5.5; provided,
that the failure of the Dissemination Agent, so to advise the Borrower shall not constitute a breach
by the Trustee, of any of its duties and responsibilities hereunder nor relieve the Borrower of its
obligation to determine if an event is a Material Event and to notify the Dissemination Agent of
such event pursuant to Section 5.5(c)(3) hereof.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(4)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Dissemination Agent shall, without further direction or instruction from the Borrower, provide
in a timely manner to the MSRB and to the SID, if any, notice of any failure while any Bonds are
Outstanding by the Dissemination Agent, to receive from the Borrower Annual Financial Information
on or before the Report Date (whether caused by failure of the Borrower to provide such information
to the Dissemination Agent by the Submission Date or for any other reason). For the purposes of determining
whether information received from the Borrower is Annual Financial Information, the Dissemination
Agent shall be entitled conclusively to rely on the Borrower&#146;s written representation made pursuant
to clause (c)(l) of this Section 5.5 so long as such information is in the form of Exhibit B hereto.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(5)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> If the Borrower provides to the Dissemination Agent, information relating to the Borrower or the Bonds,
which information is not designated as a Material Event Notice, and directs the Dissemination Agent
to provide such information to information repositories, the Dissemination Agent shall promptly provide
such information to the Commission, the MSRB, each then existing NRMSIR and the SID, if any.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following are the definitions of the capitalized terms used in this Section 5.5 and not otherwise defined in this Loan Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(1)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> &#147;Dissemination Agent&#148; means U.S. Bank Trust National Association, acting in the capacity of dissemination agent, or any successor dissemination agent designated in writing by the Borrower with the consent of the Authority and which has filed with the Borrower, Authority, and Trustee a written acceptance of such designation.</FONT>
</P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-10-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(2)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Quarterly Financial Information&#148; means financial information, including a statement of profit and loss, balance sheets and cash flow statements (which shall be based on financial statements prepared in accordance with generally accepted accounting principles (&#147;GAAP&#148;)), related to the operation of the Detention Facility and data describing the average daily inmate or
detainee population for the Detention Facility, each for the 3-month period immediately preceding the applicable Submission Date, which shall be provided by the Borrower or the Operator quarterly on each Submission Date, as provided above.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(3)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Audited Financial Statements&#148; means the annual financial statements of the Borrower and any Operator, prepared in accordance with GAAP, which financial statements shall have been audited by a firm of independent certified public accountants.</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(4)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Beneficial Owner&#148; means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(5)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Fiscal Year&#148; means the year ending December 31.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(6)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Material Event&#148; means any of the following events, if material,&nbsp;with respect to the Bonds:</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td width="220" align="right"><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT></td>
    <td width="35">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Principal and interest payment delinquencies; </FONT></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Non-payment related defaults; </FONT></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Unscheduled draws on debt service reserves reflecting financial difficulties;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(iv)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Unscheduled draws on credit enhancements reflecting financial difficulties;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(v)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Substitution of credit or liquidity providers, or their failure to perform;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(vi)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Adverse tax opinions or events affecting the tax-exempt status of the Series A Bonds;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="left">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(vii)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Modifications to rights of Bondholders;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(viii)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Optional, contingent or unscheduled calls of any Bonds other than scheduled sinking</FONT></td>
  </tr>
  <tr valign="top">
    <td colspan="3" align="left"><FONT face="Times New Roman, Times, Serif" size=2> fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856;</FONT></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(ix)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Defeasances;</FONT></td>
  </tr>
</table>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-11-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr valign="top">
    <td width="220" align="right"><FONT face="Times New Roman, Times, Serif" size=2>(x)</FONT></td>
    <td width="35">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Release,&nbsp;substitution,&nbsp;or&nbsp;sale of property securing repayment of the Bonds; and</FONT></td>
  </tr>
  <tr valign="top">
    <td align="right">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2>(xi)</FONT></td>
    <td>&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Rating changes. </FONT></td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The occurrence of events in items (v)-(xi) above are hereby deemed material. The Trustee, as the Dissemination
Agent shall presume that the occurrence of any of the events in items (i)-(iv) are material, unless
the Borrower informs the Authority and the Dissemination Agent within 10 days of the occurrence of
the event, that such event is not material and the Authority concurs with the Borrower. Neither the
Trustee nor the Dissemination Agent shall have any responsibility to determine the materiality of
any such events.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(7)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;Material Event Notice&#148; means written or electronic notice of a Material Event.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(8)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;NRMSIR&#148; means a nationally recognized municipal securities information repository, as recognized
from time to time by the Securities and Exchange Commission for the purposes referred to in the Rule.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(9)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&#147;SID&#148; means a state information depository as operated or designated by the State as such
for the purposes referred to in the Rule.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The continuing obligation hereunder of the Borrower to provide Annual Financial Information, Audited
Financial Statements and Material Event Notices and the obligations of the Dissemination Agent under
this Section 5.5 shall terminate immediately once the Bonds are no longer Outstanding. This Section
5.5, or any provision hereof, shall be null and void in the event that the Borrower delivers to the
Dissemination Agent and the Authority an opinion of nationally recognized Bond Counsel to the effect
that those portions of the Rule which require this Section 5.5, or any such provisions, are invalid,
have been repealed retroactively or otherwise do not apply to the Bonds; provided that the Dissemination
Agent, upon receipt of such opinion is hereby directed to provide notice of such delivery and the
cancellation of this Section 5.5 to each then existing NRMSIR and the SID, if any. Notwithstanding
any other provision of this Loan Agreement, the Authority, as it deems necessary and with written
notice to Borrower, or, at the request of the Borrower, may amend this Section 5.5, and any provision
of this Section 5.5 may be waived, provided that the following conditions are satisfied:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If the amendment or waiver relates to the provisions of Sections 5.5(b) or (d)(6), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted;</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized Bond Counsel, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-12-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>account any amendments or interpretations of the Rule, as well as any change in circumstances; and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The amendment or waiver either (i) is approved by the Owners of the Bonds in the same manner as provided in the Indenture for amendments to this Loan Agreement with the consent of Owners, or (ii) does not, in the opinion of nationally recognized Bond Counsel, materially impair the interests of the Owners or beneficial owners of the Bonds.</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event of any amendment or waiver of a provision of this Section 5.5, the Borrower shall describe such amendment as part of the submittal of the next Annual Financial Information, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Borrower. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Material Event under subsection (c), and (ii)
the Annual Financial Information for the year in which the change is made should present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Any failure by the Borrower to perform in accordance with this Section 5.5 shall not constitute an
&#147;Event of Default&#148; under Article VIII of the Indenture, and the rights and remedies provided
by Article VIII upon the occurrence of an &#147;Event of Default&#148; shall not apply to any such
failure. Neither the Authority, the Trustee nor the Dissemination Agent, shall have any power or
duty to enforce this Section 5.5; however, the Bondholders and Beneficial Owners of Bonds shall have
the right to enforce this Section 5.5 in accordance with Section 1313 of the Indenture. The right
of a Bondholder and Beneficial Owner of Bonds to enforce the provisions of this Section shall be
limited to a right to obtain specific enforcement of the Authority and the Borrower&#146;s obligations
hereunder.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> For purposes of this Section 5.5, the Trustee shall act as Dissemination Agent of the Authority and
the Borrower and not in its capacity as Trustee. As Dissemination Agent of the Authority and the
Borrower, the Trustee is not obligated to independently investigate the accuracy of any information,
notices or certificates received by it in its capacity as Trustee. The Borrower and the Authority
acknowledge the following in connection with the appointment of the Dissemination Agent and its acceptance
of such appointment: the Dissemination Agent agrees to perform only those duties of the Dissemination
Agent specifically set forth in this Section 5.5, and no duties, covenants, or obligations shall
be implied against the Dissemination Agent. The Dissemination Agent may conclusively rely upon all
reports, notices, and information provided to it and shall have no duty to investigate the same.
The Dissemination Agent is not acting in a fiduciary capacity to the Bondholders, the Authority,
the Borrower, or any other Person. The Dissemination Agent may consult with counsel of its choice
and shall be protected in any action taken or not taken by it in accordance with the advice or opinion
of such counsel. No provision hereunder shall require the Dissemination Agent to risk or advance
its own funds or incur any financial liability. The Dissemination Agent may resign from its duties
as Dissemination Agent upon thirty days&#146; prior written notice to the Borrower and</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-13-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>to the Authority. The Dissemination Agent shall be entitled to compensation from the Borrower (separate and apart from its compensation as Trustee) for its services as agent and reimbursement for its reasonable out-of-pocket expenses, attorneys&#146; fees, costs and advances made or incurred in the performance of its duties in accordance with the written fee schedule provided to the Borrower and the Authority, as such fee schedule may be amended from time to time.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Borrower agrees to indemnify and save the Dissemination Agent, its officers, directors, and employees harmless against any losses, costs, expenses, claims, and liabilities of any kind whatsoever, including without limitation, fees and expenses of its attorneys and extraordinary fees of the Dissemination Agent which the Dissemination Agent may incur related to or arising from the acceptance and performance of its duties hereunder. The Dissemination Agent shall have no duty to prepare any Annual Report nor shall the Dissemination Agent be responsible to file any Annual Report or other information, including a Material Event Notice, not provided to it by the Borrower in a form suitable for filing.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section
  5.6</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
  <U><a name="annual"></a>Annual Budget</U>. &nbsp;&nbsp;Borrower shall prepare
  or cause the Operator to prepare a budget for operation of the Detention Facility.
  The Annual Budget shall be prepared for each calendar year (or fiscal year of
  the Borrower or Operator, as applicable) and shall be provided to the Trustee
  and the Insurer at least 30 days prior to the commencement of such year.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.7</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="notice"></a>Notice of Termination for Convenience</U>. &nbsp;&nbsp;The Borrower shall provide or cause the Operator to provide prompt notice of the receipt by the Borrower or the Operator of notice from the INS (or any subsequent governmental agency) of termination of the INS Contract (or any Agency Contract).</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5.8</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="limitation"></a>Limitation on Lending</U>. &nbsp;&nbsp;So long as the Bonds are Outstanding, unless both of Borrower&#146;s Outside Managers and Borrower&#146;s Independent Manager otherwise consent, Borrower shall not (i) make loans to any of its affiliates, (ii) imply that anyone else is responsible for its debts, (iii) mislead anyone as to its identity, or (iv) hold or establish subsidiaries.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VI</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>THE PROJECT</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="completion"></a>Completion and Payment of Cost Deficiencies</U>.&nbsp;&nbsp; The Borrower will use its best efforts to complete the Project in accordance with the Development
Agreement and the INS Contract. If the money available from the proceeds of the sale of the Bonds
is not sufficient to pay the Costs of the Project in full, the Borrower shall pay from its own funds
or from other funds that may be available to the Borrower under the Development Agreement or Use
Agreement all of that portion of the costs of the Project in excess of the money available therefor
from Bond proceeds. The Authority makes no warranty, either express or implied, that the money from
the proceeds of the Bonds will be sufficient to pay the Costs of the Project. If the Borrower shall
pay from its own funds any portion of the Costs of the Project pursuant to the provisions of this
Section, it shall not be entitled to any reimbursement therefor from the Authority, the Trustee or
the Owners of any of the Bonds, nor shall it be entitled to any diminution in or postponement of
the payments required to be paid by the Borrower hereunder.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-14-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the Act, the Authority hereby authorizes the Borrower to provide for the acquisition, construction and installation of the Project, as generally described in Exhibit A hereto, by any means available to the Borrower and in the manner determined by the Borrower in accordance with the Development Agreement or Use Agreement.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="permits"></a>Permits, Licenses and Consents</U>. &nbsp;&nbsp;The Borrower covenants and agrees that in the development, construction and operation of the Detention Facility it will comply, or will ensure that the Developer and Operator comply, with all material laws, lawful ordinances, regulations and rulings of all governmental bodies having jurisdiction, will obtain, or will ensure that the Developer and Operator obtain, all permits and licenses required thereby, will obtain, or will ensure that the Developer and Operator obtain, all necessary consents and
approvals and will observe and comply with all applicable covenants, conditions, restrictions, easements and other obligations affecting title to the land upon which the Detention Facility is situated.</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.3</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="maintenance"></a>Maintenance and Operation of the Detention Facility</U>. &nbsp;&nbsp;The Borrower covenants and agrees that it will operate and maintain the Detention Facility &#150; or cause the Detention Facility to be operated and maintained &#150; in accordance with the Use Agreement, the INS Contract and all applicable governmental laws, ordinances, approvals, rules, regulations and requirements including, without limitation, such zoning, sanitary, pollution and safety ordinances and laws and such rules and regulations thereunder as may be binding upon the Borrower.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.4</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="use"></a>Use of Detention Facility</U>.&nbsp;&nbsp; Borrower covenants to enter into the Use Agreement with Operator. Borrower shall not terminate or amend the Use Agreement or exercise remedies under the Use Agreement without the prior written consent of the Insurer. Borrower covenants that in the event that the Operator defaults under the INS Contract (or under any Agency Contract) and INS or any other government agency opts to continue utilizing the Detention Facility with a new operator or tenant of the Detention Facility, Borrower will enter into a use agreement or lease with such new operator.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.5</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="taxes"></a>Taxes, Other Governmental Charges and Utility Charges</U>. &nbsp;&nbsp;During the term of this Loan Agreement, the Borrower will pay or cause to be paid, as the same respectively
become due, all taxes, other governmental charges and utility charges of any kind whatsoever that
may at any time be lawfully assessed or levied against the Borrower with respect to the Project (to
the extent permitted or required under the Development Agreement or the Use Agreement) or the Loan
Repayments, all of which are herein called &#147;impositions.&#148; The Borrower shall promptly forward
to the Trustee any notice, bill or other statement it receives regarding property taxes assessed
on the Detention Facility. The Authority or the Trustee shall promptly forward to the Borrower any
notice, bill or other statement received by the Authority or the Trustee concerning any imposition.
The Borrower may contest any such tax, charge, or assessment, but only after paying such tax, charge
or assessment (or after the Trustee has paid such tax, charge or assessment, in accordance with the
Indenture), which payment may be made under protest if necessary to protect Borrower&#146;s right
to contest such tax, charge or assessment. On or before January 1 of each year, Borrower shall notify
the Authority and Trustee in writing of the amount of property taxes to be assessed against the Detention
Facility during such calendar year.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-15-</FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.6</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="insurance"></a>Insurance</U>.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Coverage for Borrower. </I>&nbsp;&nbsp;&nbsp;During the term of this Loan Agreement, Borrower shall at a minimum maintain the following insurance
coverage:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial general liability insurance (Insurance Services Office Form number (CG00 001 Ed. 11-88), covering commercial general liability with a limit of not less than $5,000,000 combined single limit per occurrence; $10,000,000 aggregate. Such insurance coverage shall be issued and maintained on an &#147;occurrence&#148; basis;</FONT>
</P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policies of insurance insuring the Property against the loss of &#147;rental value&#148; of any building which constitutes a part of the Improvements on a &#147;rented or vacant basis&#148; arising out of the perils insured against pursuant to subparagraphs (b) and (c) below in an amount equal to 24 months&#146; gross &#147;rental value&#148; of the Improvements with co&shy;insurance in such percentage as may be acceptable to the Trustee. &#147;Rental value&#148;
as used herein is defined as the sum of (a) the total anticipated amount of User Fees to be paid by Operator under the Use Agreement, if the Use Agreement is in full force and effect, or the total anticipated gross rental income from tenant occupancy of such buildings if the Use Agreement is not in full force and effect, and (b) the amount of all charges which are the legal obligation of Operator or of tenants and which would otherwise be the obligation of the Borrower, and (c) the fair rental value of any portion of such buildings which are occupied by Borrower. The proceeds of such insurance shall be assigned to Trustee, to be applied in payment of each installment of principal and interest payable on the Bonds as they come due, insurance premiums, taxes, assessments and impositions until such time as the buildings shall have been restored and placed in full operation, at which
time, provided Borrower is not then in default under this Loan Agreement, the balance of such insurance proceeds, if any, shall be used by the Trustee for the extraordinary optional redemption of Bonds in accordance with the provisions of Section 3.03 of the Indenture;</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Required Insurance during Construction of the Project. </I>&nbsp;&nbsp;During construction of the Project pursuant to the Development Agreement and throughout the term of
the Development Agreement, and in addition to the coverage Borrower is required to maintain pursuant
to Section 6.6(a), Borrower shall cause the Developer or Developer&#146;s General Contractor to obtain,
insurance against claims for injuries to persons or damages to property that may arise from, or in
connection with the performance of, work under the Development Agreement by Developer, Developer&#146;s
General Contractor, their agents, representatives, employees and/or subcontractors. The cost of such
insurance shall be paid as provided for under the Development Agreement. Such coverage shall include,
at a minimum:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial general liability insurance (Insurance Services Office form number CG00 001 Ed. 11-88),
covering commercial general liability with a limit of not less than $1,000,000 combined single limit
per occurrence; $2,000,000 aggregate;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workers&#146; compensation coverage, as required by the Industrial Insurance Act of the State of Washington, statutory limits;</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business automobile coverage (Insurance Services Office form</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-16-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>number CA 00 01 Ed. 12-90), symbol 1 &#147;any auto&#148; or the combination of symbols 2, 8, &amp; 9, with a limit of not less than $1,000,000 combined single limit per occurrence;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Builders risk insurance (Insurance Services Office form number CP 00 02 Ed. 10-90) covering all work to be done on the Property for the full 100% replacement cost of all such improvements. Coverage shall be provided for (1) the perils of earth movement and flood, except as provided below; (2) resultant damage from errors in design, plans, specifications, faulty workmanship, materials and construction; (3) all materials to be stored offsite and while in
transit to the jobsite; (4) &#147;cold testing&#148; of all building systems; (5) Borrower&#146;s loss of use of the Property due to delays in Project completion caused by covered peril losses to the Project, including loss of income and rents and soft costs such as interest on the Bonds, real estate taxes and insurance premiums; (6) the increased cost of construction, debris removal and demolition due to the operation of building laws and code upgrades; and (7) direct physical damage to the Project and loss of use caused by an off premises power interruption. The policy shall include a waiver of subrogation provision, shall grant permission for partial occupancy of the facilities without having a detrimental affect on the coverage provided, and shall contain a debris removal limit of liability that is separate from, in addition to, and not part of the overall policy limit of liability. The builder&#146;s risk policy shall include Borrower, Developer, General Contractor and its subcontractors as insureds in an amount equal to their interest, with a loss payable clause in favor of the Trustee. To the extent the insurance proceeds intended to cover damage to or repair or reconstruction of the Project are not used to repair or rebuild the Project at the request of Borrower, Developer shall be relieved of the obligation to pay for the repairs or restorations that were intended to be covered by such insurance proceeds.</FONT> </P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The builder&#146;s risk policy shall include coverage for the earthquake and flood insurance so long as such coverage is available at a commercially reasonable cost and in coverage amounts that are commercially available, and the Borrower shall not be in default under this Loan Agreement (A) if coverage is no longer written, is unavailable for properties comparable to the premises or is not available at commercially reasonable premium amounts and (B) if prior to the beginning of each policy year in which the insurance coverage will not include coverage for losses caused by earthquake or flood, Borrower shall file with the Insurer a report evidencing that such coverage is no longer written,
is unavailable for properties comparable to the premises, or is not available at commercially reasonable premium amounts. The Borrower shall or shall cause the Operator to provide the Authority, the Insurer and the Trustee with 30 days&#146; prior written notification of material changes in coverage. The Borrower shall or shall cause the Operator, upon request, to furnish the Authority, the Insurer and the Trustee with satisfactory evidence that such coverage is in effect</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Required Insurance following Completion of the Project. </I>&nbsp;&nbsp;From and after the Commencement Date (as such term is defined in the Use Agreement) and throughout the term of any other lease or use agreement entered into with respect to the Detention Facility, and in addition to the coverage Borrower is required to maintain pursuant to Section 6.6(a), Borrower shall obtain or cause the Operator to obtain insurance against claims for injuries to persons or damages to property that may arise from, or in connection with the performance of, use of
the Detention Facility pursuant to the Use Agreement by Operator, its agents, representatives, employees and/or subcontractors. If provided by Operator, the cost of such insurance shall be paid as provided for</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-17-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>under the Use Agreement. Such coverage shall include, at a minimum:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial general liability insurance (Insurance Services Office Form number CG00 001 Ed. 11-88), covering commercial general liability with a limit of not less than $5,000,000 combined single limit per occurrence; $10,000,000 aggregate. Such insurance coverage shall be issued and maintained on an &#147;occurrence&#148; basis;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workers&#146; compensation coverage, as required by the Industrial Insurance Act of the State of Washington, statutory limits;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business automobile coverage (Insurance Services Office form number CA 00 01 Ed. 12-90), symbol 1 &#147;any auto&#148; or the combination of symbols 2, 8, &amp; 9, with a limit of not less than $1,000,000 combined single limit per occurrence;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property insurance at 100% of replacement value for fire and other perils currently covered by a special causes of loss commercial property insurance form. Such coverage shall include 24 months of rental interruption coverage and shall name Trustee as loss payee as its interests may appear. Except as provided below, the Detention Facility shall also be insured against the perils of earthquake and flood, either as part of the aforementioned commercial property
policy, or under a separate policy or policies. Such earthquake and flood insurance shall include 24 months of rental interruption coverage and shall name Trustee as loss payee as its interests may appear. The Borrower shall maintain or cause the Operator to maintain earthquake and flood insurance so long as such coverage is available at a commercially reasonable cost and in coverage amounts that are commercially available, but shall not be in default under this Loan Agreement (A) if coverage is no longer written, is unavailable for properties comparable to the premises or is not available at commercially reasonable premium amounts and (B) if prior to the beginning of each policy year in which the insurance coverage will not include coverage for losses caused by earthquake or flood, Borrower shall file with the Insurer a report evidencing that such coverage is no longer written, is unavailable for properties comparable to the premises, or is not available at commercially reasonable premium amounts. The Borrower shall or shall cause the Operator to provide the Authority, the Insurer and the Trustee with 30 days&#146; prior written notification of material changes in coverage. The Borrower shall or shall cause the Operator, upon request, to furnish the Authority, the Insurer and the Trustee with satisfactory evidence that such coverage is in effect;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall be named as an additional insured on the environmental pollution liability insurance policy of Borrower or Operator;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other Insurance Provisions. </I>&nbsp;&nbsp;The insurance policies required by this Loan Agreement are to contain or be endorsed to contain the following provisions where applicable:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Liability Policies</U>: &nbsp;&nbsp;Borrower and its officers are to be covered as additional insureds as respects liability arising
out of activities performed by or on behalf of the Developer in connection with the Development Agreement
or the Operator in connection with the Use Agreement.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-18-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent of the negligence of the Developer or Operator, as applicable, insurance coverage shall be primary insurance as respects the Borrower, its officers,
officials, employees and agents. Any insurance maintained by the Borrower, its officers, officials,
employees and/or agents shall not contribute with the Developer&#146;s or Operator&#146;s insurance or benefit the Developer or Operator in any way.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance of the Developer and Operator shall apply separately to each insured against whom a claim is made and/or lawsuit is brought, except with respect
to the limits of the insurer&#146;s liability.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>All Policies</U>: &nbsp;&nbsp;Coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except by the reduction of the applicable aggregate limit by claims paid, until after 30 days&#146; prior written notice has been given to the Borrower, Authority, Insurer and Trustee. Any policy that is a master or blanket policy shall include a rider or endorsement affirming that up to the coverage limit for the Detention Facility
set forth in the policy, a claim filed in connection with another facility will not reduce the coverage available or the ability to make a claim in connection with the Detention Facility. Deductibles payable by Operator shall not exceed $500,000, and deductibles payable directly or indirectly from Facility Revenues shall not exceed $100,000.</FONT>
</P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceptability of Insurers</U>: &nbsp;&nbsp;Unless otherwise agreed to by the Insurer, all insurance is to be placed with insurers with a Best&#146;s or S&amp;P rating of no less than A.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Verification of Coverage</U>. &nbsp;&nbsp;Borrower shall obtain certificates of insurance and endorsements as required by this Loan Agreement and shall submit them to the Trustee at least 10 days prior to the expiration dates of such policies. The certificates and endorsements for each policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms approved by the
Borrower and are to be received and approved by the Borrower prior to the commencement of activities of the Developer and Operator, respectively.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall be named as a loss payee and an additional insured on all such insurance policies and shall receive notices of all premiums payable for such insurance policies. On or before January 1 of each year, the Borrower shall certify to the Authority and the Trustee the total estimated amount of premiums required during such calendar year to maintain such insurance. During such calendar year, Borrower shall promptly notify the
Authority and Trustee in writing of any adjustment to such estimated cost of insurance premiums.</FONT></P><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The policies of coverage required by Sections 6.6(a)(i), 6.6(b)(i) and (b)(iii) and 6.6(c)(i)
and (c)(iii), if maintained or provided by the Developer or Operator, may be maintained by the Developer
and/or Operator under the blanket policies of insurance issued to the Developer and/or Operator provided
that such coverage is provided and maintained in the amounts and on the terms herein described. The
Operator and/or the Developer shall not be required, however, to obtain any sublimits or allocate
any coverage thereunder specifically for the operations of the Detention Facility.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-19-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.7</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="pledge"></a></FONT><U>Pledge of Facility Revenues and other Amounts Payable under the Use Agreement</U>. &nbsp;&nbsp;Pursuant to the Use Agreement, the Borrower has required the Operator to assign to the Trustee, pursuant to the Assignment of Claims, all amounts received by the Operator under the INS Contract. The Borrower hereby pledges to the Authority, to secure Borrower&#146;s obligations under this Loan Agreement, all right, title and interest of the Borrower in such Facility Revenues and in all other amounts to which it is entitled under the Use Agreement. The Monthly Minimum
Amount under the INS Contract is initially $1,140,650. The Borrower shall notify the Trustee in writing of any change in this amount. In the event that the Borrower enters into any other use agreement or lease of the Detention Facility pursuant to Section 6.4 hereof, the Borrower shall (i) assign such use agreement or lease to the Trustee to secure payment of the Bonds or (ii) shall require the operator under such use agreement or tenant under such lease to enter into an assignment of claims or substantially similar agreement assigning to the Trustee all Facility Revenues derived from such use agreement or lease.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6.8</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="revenue"></a></FONT><U></U><U>Revenue Covenant</U>. &nbsp;&nbsp;Borrower hereby covenants that (i) if during any Facility Collection Period the Trustee receives Facility Revenues in an amount less than the Monthly Minimum Amount or (ii) if during any quarter, the amount of Facility Revenues is less than 1.2 times the amounts required to be disbursed pursuant to clauses First through Seventh of Section 5.04 of the Indenture (the &#147;rate covenant&#148;), the Borrower and Operator will provide to the Insurer and the Trustee, within 30 days after the end of any such quarter in which the rate covenant was not met, a
written review of Facility Revenues, including a written plan to meet the rate covenant.</FONT> </P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VII </FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>EXPENSES, INDEMNIFICATION</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U></U><U><a name="expenses"></a>Expenses</U>. &nbsp;&nbsp;The Borrower hereby acknowledges that the Authority&#146;s sole source of money to repay the Bonds will be provided by the payments made by the Borrower pursuant to this Loan Agreement, together with investment income on certain funds and accounts held by the Trustee under the Indenture, and hereby agrees that if the payments to be made hereunder shall ever prove insufficient to pay all principal of, premium, if any, and interest on the Bonds as the same shall become due (whether by maturity, redemption, acceleration or otherwise),
or to pay the fees of the Trustee, then upon written notice from the Trustee, the Borrower shall pay such amounts as are required from time to time to prevent any deficiency or default in the payment of such fees, principal, premium or interest, including, but not limited to, any deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Authority or the Trustee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7.2</U><U></U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U></U><U><a name="indemnification"></a>Indemnification</U>. &nbsp;&nbsp;The Borrower agrees, to the extent permitted by law, to indemnify and hold harmless the Trustee and
its members, directors, officers, officials, employees, affiliates and agents (the &#147;Indemnified
Parties&#148;) from and against any and all losses, claims, damages, liabilities or expenses, of
every conceivable kind, character and nature whatsoever (except where arising from negligence or
willful misconduct by the Indemnified Party or Parties) including, but not limited to, losses, claims,
damages, liabilities, or expenses</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-20-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>arising out of, resulting from or in any way connected with (1) the Project, or the conditions, occupancy,
use, possession, conduct or management of, or work done in or about, or from the planning, design,
acquisition, installation or construction of the Project or any part thereof; (2) the issuance of
the Bonds and the carrying out of any of the transactions contemplated by the Indenture and this
Loan Agreement; (3) the Trustee&#146;s acceptance and administration of the trust created by, and
the Trustee&#146;s performance of its duties under, the Indenture; (4) the Trustee&#146;s performance
of its duties under this Loan Agreement; (5) any violation of any environmental law, rule or regulation
or the release of any hazardous or toxic substance on or near the Detention Facility; or (6) any
untrue statement or alleged untrue statement of any material fact or omission or alleged omission
to state a material fact necessary to make the statements made with respect to the Borrower, in light
of the circumstances under which they were made, not misleading in any Official Statement utilized
in connection with the sale of the Bonds. The Borrower further agrees, to the extent permitted by
law, to pay or to reimburse the Trustee and its respective members, officers, directors, officials,
employees, affiliates and agents for any and all costs, reasonable attorneys&#146; fees, liabilities
or expenses incurred in connection with investigating, defending against or otherwise in connection
with any such losses, claims, damages, liabilities, expenses or actions. The Indemnified Parties
shall give the Borrower written notice of any such losses, claims, damages, liabilities, expenses
or actions of which they receive actual knowledge, but their failure to do so shall not relieve the
Borrower of its obligations under this Section 7.2.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7.3</U><U></U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="payment"></a></FONT><U></U><U>Payment of Trustee</U>. &nbsp;&nbsp;The Borrower shall pay compensation to the Trustee for its services pursuant to the Indenture and this Loan Agreement, which compensation shall be determined in accordance with the written fee schedule of the Trustee in effect as of the date of issuance of the Bonds, as amended from time to time by the written agreement of the Borrower or Trustee, or as of the date of appointment of any successor Trustee, and also all reasonable expenses, charges, legal and consulting fees and other disbursements and those of its attorneys, agents,
affiliates and employees, incurred in and about the performance of its powers and duties as Trustee under the Indenture. The Trustee&#146;s compensation shall not be limited by any provision of law regarding compensation of a trustee of an express trust.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7.4</U><U></U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="survive"></a></FONT><U></U><U>Survive Termination</U>. &nbsp;&nbsp;The provisions of this Article shall survive payment in full of the Bonds, discharge of the Indenture and termination or expiration of this Loan Agreement or the resignation or removal of the Trustee under the Indenture.</FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE VIII</FONT></P>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>  LOAN DEFAULT EVENTS AND REMEDIES</FONT></P>
<P align="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U></U><U><a name="loan1" id="loan1"></a>Loan Default Events</U>. &nbsp;&nbsp;The following events shall be &#147;Loan Default Events&#148;:</FONT></P>
<P align="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<U></U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U></U>The failure of the Borrower to pay any Loan Repayment on the day on which such Loan Repayment is due and payable;</FONT></P>
<P align="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The failure of the Borrower to make any Additional Payment required by the provisions of Section 4.2 herein within any applicable grace period;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-21-</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure by the Borrower to observe or perform any material covenant, condition, agreement or provision in this Loan Agreement on its part to be observed or performed, other than as referred to in subsection (a) or (b) of this Section, or breach of any warranty by the Borrower herein contained, for a period of 30 days after written notice, specifying such failure or breach and requesting that it be remedied, has been given to the Borrower by the Trustee; except that, if such
failure or breach can be remedied but not within such 30-day period and if the Borrower has taken all action reasonably possible to remedy such failure or breach within such 30-day period, such failure or breach shall not become a Loan Default Event for so long as the Borrower shall diligently proceed to remedy the same;</FONT>
</p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The filing by the Borrower of a petition in voluntary bankruptcy, for the composition of its affairs or for its reorganization under any state or federal bankruptcy or insolvency law, or the making of an assignment for the benefit of creditors, or the admission in writing by the Borrower of its insolvency or inability to pay debts as they mature, or the consent by the Borrower in writing to the appointment of a trustee or receiver for itself or for the whole or any substantial part of the Detention Facility;</FONT></p>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The entry by a court of competent jurisdiction of an order, judgment or decree declaring the Borrower
an insolvent, or adjudging it bankrupt, or appointing a trustee or receiver of the Borrower or of
the whole or any substantial part of the Detention Facility, or approving a petition filed against
the Borrower seeking reorganization of the Borrower under any applicable law or statute of the United
States of America or any state thereof, and such order, judgment or decree shall not be vacated or
set aside or stayed within 60 days from the date of the entry thereof;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The assumption by any court of competent jurisdiction of custody or control of the Borrower or of the whole or any substantial part of the Detention Facility, and such custody or control shall not be terminated within 60 days from the date of assumption of such custody or control; or</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of an Event of Default under the Indenture.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U><a name="remedies"></a>Remedies on Default</U>. &nbsp;&nbsp;If a Loan Default Event shall occur, then, and in each and every such case during the continuance of such Loan Default Event subject to the provisions of the Indenture, the Trustee may with the prior written consent of the Insurer (and in the event of (a) below and otherwise at the written direction of the Insurer shall) take any one or more of the following remedial steps:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall, if the Bonds have been accelerated pursuant to Section 7.02 of the Indenture and upon notice in writing to the Borrower, declare all installments of Loan Repayments and Additional Payments payable for the remainder of the term of this Loan Agreement to be immediately due and payable, whereupon the same shall be immediately due and payable, anything in this Loan Agreement to the contrary notwithstanding. &#147;All installments&#148; as used in this subsection
shall mean an amount equal to the entire principal amount of the then Outstanding Bonds, together with any applicable redemption premiums and</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-22-</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>all interest accrued or to accrue on and prior to the date specified by the Trustee pursuant to Section 9.02 of the Indenture (less money available for such purpose then held by the Trustee) plus any other payments due or to become due hereunder, including, without limitation, all Reimbursement Obligations and any unpaid fees and expenses of the Trustee that are then due or will become due prior to the time that the Bonds are paid in full and the trust established by the Indenture is terminated.</FONT>
</p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to receipt of indemnity satisfactory to it as specified in the Indenture, the Trustee may take whatever action, at law or in equity, is reasonably necessary or desirable to collect the Loan Repayments, Reimbursement Obligations, Additional Payments and any other payments then due and thereafter to become due under this Loan Agreement or to enforce the performance and observance of any obligation, covenant, agreement or provision contained in this Loan Agreement to be observed or performed by the Borrower.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may take whatever other legal action may appear necessary or desirable to enforce its rights and the rights of the Owners of the Bonds and the rights of the Insurer under this Loan Agreement.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.3</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="remedies1"></a>Remedies Not Exclusive; No Waiver of Rights</U>. &nbsp;&nbsp;No remedy herein conferred upon or reserved to the Trustee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy, to the extent permitted by law, shall be in addition to every other remedy given under this Loan Agreement or now or hereafter existing at law or in equity or otherwise. In order to entitle the Trustee to exercise any remedy, to the extent permitted by law, reserved to it contained in this Loan Agreement, it shall not be necessary to give any notice, other than such notice
as may be herein expressly required. Such rights and remedies as are given to the Authority hereunder shall also extend to the Trustee, and the Trustee may exercise any rights of the Authority under this Loan Agreement (except for Reserved Rights), and the Trustee and the Owners of the Bonds and the Insurer shall be deemed third party beneficiaries of all covenants and conditions herein contained.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No delay in exercising or failing to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.4</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="expenses1" id="expenses1"></a>Expenses on Default</U>. &nbsp;&nbsp;If the Borrower should default under any of the provisions of this Loan Agreement and the Authority, the Insurer or the Trustee should employ attorneys or incur other reasonable expenses for the enforcement of performance or observance of any obligation or agreement of the Borrower contained herein or for the collection of the payments due hereunder, the Borrower agrees that it shall on demand therefor pay to the Authority, the Insurer and the Trustee the reasonable fees of such attorneys and such other reasonable
expenses so incurred by the Authority or the Trustee.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.5</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="notice1" id="notice1"></a>Notice of Default; Other Notices</U>. &nbsp;&nbsp;The Borrower agrees that, as soon as practicable, and in any event within 10 days, the Borrower will furnish the Trustee notice of any event that is or with the passage of time will become a Loan Default Event pursuant to</FONT></p>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-23-</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>Section 8.1 hereof that has occurred and is continuing on the date of such notice, which notice shall set forth the nature of such event and the action the Borrower proposes to take with respect thereto. The Trustee shall not be deemed to have knowledge of the occurrence of a Loan Default Event unless or until the Trustee has actual knowledge of such Loan Default Event.</FONT>
</p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Borrower shall also provide prompt written notice to the Insurer of any default or event of default under the Use Agreement, any of the Project Agreements, and any other agreements between the Borrower and the Developer or Operator and a copy of any notice from the INS or any subsequent user of the Detention Facility that the INS Contract or any Agency Contract will be terminated.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8.6</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="no"></a>No Liability of Member and Managers Hereunder</U>. &nbsp;&nbsp;The Borrower and the Authority understand and agree that Borrower&#146;s obligations under this Loan Agreement are obligations of the Borrower only and that Borrower&#146;s obligations hereunder are not obligations of the Member or Managers of Borrower nor are such obligations or the Bonds guaranteed in any way by the Member or Managers of Borrower.</FONT></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>ARTICLE IX </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>MISCELLANEOUS</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.1</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="further"></a>Further Assurances</U>. &nbsp;&nbsp;The Borrower agrees that it will execute and deliver any and all such further agreements, instruments,
financing statements or other assurances as may be reasonably required by the Authority or the Trustee
to carry out the intention or to facilitate the performance of this Loan Agreement, including, without
limitation, to perfect and continue the security interests herein intended to be created.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section
  9.2</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
  <U></U><U><a name="amendment"></a>Amendment of Indenture</U>. &nbsp;&nbsp;The
  Authority covenants that it will take no action to amend or supplement the Indenture
  in any manner without obtaining the prior written consent of the Insurer and
  the Borrower to such amendment or supplement as required by Article IX of the
  Indenture.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.3</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U><a name="notices"></a>Notices</U>. &nbsp;&nbsp;All notices or communications herein required or permitted to be given shall be in writing and mailed
by first class mail, postage prepaid, or delivered as follows:</FONT></P>
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<TR>
<TD valign=top width=50>&nbsp;</TD>
<TD width="160" valign=top><FONT face="Times New Roman, Times, Serif" size=2>If to the Authority:</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>Washington Economic Development Finance Authority<br>
  1000 Second Avenue, Suite 2700 <br>
  Seattle, WA 98104-1046 <br>
  Attention: &nbsp;Executive Director</FONT></TD>
</TR>
<TR>
<TD valign=top></TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>If to the Borrower:&nbsp;</FONT></TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC of Tacoma LLC<br>
    c/o AMACAR Group, LLC <br>
    6525 Morrison Blvd., Suite 318 <br>
    Charlotte, NC 28211 <br>
    Attention: &nbsp;Doug Johnson  </FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-24-</FONT></P>
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<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
<TD valign=top width=50>&nbsp;</TD>
<TD width="160" valign=top>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC of Tacoma LLC<br>
  c/o Correctional Services Corporation<br>
  1819 Main Street, Suite 1000<br>
  Sarasota, FL 34236<br>
  Attention: James Slattery</FONT></TD></TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC of Tacoma LLC <br>
  c/o Craig Scott Bartlett <br>
  64 Melrose Place <br>
  Montclair, NJ 07042</FONT></TD></TR>
<TR>
<TD width="45" valign=top></TD>
<TD valign=top>&nbsp;</TD>
<TD valign=top>&nbsp;</TD></TR>
<TR>
<TD valign=top width=45>&nbsp;</TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>If to the Trustee:&nbsp;</FONT></TD>
<TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>U.S. Bank National Association<br>
  Corporate Trust Department PD-WA-T7CT <br>
  1420 Fifth Avenue, 7<SUP>th</SUP> Floor <br>
  Seattle, WA 98101 <br>
Attention:</FONT></TD></TR>
</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2>A duplicate copy of each notice or communication given hereunder by either the Authority or the Borrower to the other shall also be given to the Trustee. The Authority, the Borrower and the Trustee may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates and other communications shall be sent.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.4</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="governing"></a>Governing Law</U>. &nbsp;&nbsp;This Loan Agreement shall be construed in accordance with and governed by the Constitution and laws of the State.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.5</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="binding"></a>Binding Effect</U>. &nbsp;&nbsp;This Loan Agreement shall inure to the benefit of and shall be binding upon the Authority, the Borrower and their respective successors, assigns and legal representatives, subject, however, to the limitations contained herein.</FONT></p>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.6</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="severabilitv"></a>Severabilitv of Invalid Provisions</U>. &nbsp;&nbsp;If any one or more of the provisions contained in this Loan Agreement shall for any reason be held
to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be
deemed severable from the remaining provisions contained in this Loan Agreement and such invalidity,
illegality or unenforceability shall not affect any other provision of this Loan Agreement, and this
Loan Agreement shall be construed as if such invalid or illegal or unenforceable provision had never
been contained herein.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.7</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="article"></a>Article and Section Headings and References</U>. &nbsp;&nbsp;The headings or titles of the several Articles and Sections hereof, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not affect the meaning, construction or effect of this Loan Agreement. All references herein to &#147;Articles,&#148; &#147;Sections&#148; and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Loan Agreement; the words &#147;herein,&#148; &#147;hereof,&#148; &#147;hereby,&#148; &#147;hereunder&#148;
and other words of similar import refer to this Loan Agreement as a whole and not to any particular Article, Section or subdivision hereof;</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-25-</FONT></P>
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<FONT face="Times New Roman, Times, Serif" size=2>and words of the masculine gender shall mean and include words of the feminine and neuter genders.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.8</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="execution"></a>Execution of Counterparts</U>. &nbsp;&nbsp;This Loan Agreement may be executed in any number of counterparts, each of which shall for all purposes
be deemed to be an original and all of which shall together constitute but one and the same instrument.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.9</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="term"></a>Term of Loan Agreement</U>. &nbsp;&nbsp;Except as otherwise provided herein, this Loan Agreement shall remain in full force and effect from
the date of execution hereof until no Bonds remain Outstanding under the Indenture, all Reimbursement
Obligations and Additional Payments have been paid in full and all bankruptcy preference periods
applicable to any Loan Repayments, Reimbursement Obligations and Additional Payments have expired.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.10</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <U></U><U></U><U><a name="washington"></a>Washington State Notice</U>. <B>&nbsp;&nbsp;&nbsp;&nbsp;ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT
OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9.11</U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><a name="commercial"></a> <U></U><U></U><U>Commercial Purposes</U>. &nbsp;&nbsp;The obligations and indebtedness evidenced by this Loan Agreement were incurred primarily for commercial,
investment or business purposes and not for personal, family or household purposes.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>-26-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the Authority and the Borrower have caused this Loan Agreement to be executed in

their respective names by their duly authorized officers, all as of the date first above written.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=55%>&nbsp;</TD>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC <BR>DEVELOPMENT FINANCE <BR>AUTHORITY</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD width="2%" valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By</FONT></TD>
  <TD valign=top><u><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;/s/ Scott L. Hardman, Chair&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scott L. Hardman, Chair</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC OF TACOMA LLC, a Delaware <br>
    limited liability company</FONT></TD>
  </TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By</FONT></TD>
  <TD valign=bottom><font size="3" face="Times New Roman, Times, serif">___________________________</font></TD>
</TR>
</TABLE>
<P align="center"><FONT face="Times New Roman, Times, Serif" size=2>[SIGNATURE PAGE TO LOAN AGREEMENT]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2></FONT></P>
<HR noshade color=#000000>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the Authority and the Borrower have caused this Loan Agreement to be executed in

their respective names by their duly authorized officers, all as of the date first above written.</FONT></P>
<TABLE cellspacing="0" cellpadding="0" width="100%" border="0">

<TR>
<TD valign=top width=55%>&nbsp;</TD>
<TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>WASHINGTON ECONOMIC <BR>DEVELOPMENT FINANCE <BR>AUTHORITY</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD width="2%" valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By</FONT></TD>
  <TD valign=bottom><font size="3" face="Times New Roman, Times, serif">___________________________</font></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chair</FONT></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD colspan="2" valign=top><FONT face="Times New Roman, Times, Serif" size=2>CSC OF TACOMA LLC, a Delaware <BR>
    limited liability company</FONT></TD>
  </TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top><FONT face="Times New Roman, Times, Serif" size=2>By</FONT></TD>
  <TD valign=top><u><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></TD>
</TR>
<TR>
  <TD valign=top>&nbsp;</TD>
  <TD valign=top>&nbsp;</TD>
  <TD valign=bottom><font size="2" face="Times New Roman, Times, serif">James F. Slattery, Class A Manager </font></TD>
</TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[Signature Page to Loan Agreement]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>26</FONT></P>
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<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>EXHIBIT A </FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><a name="project"></a>PROJECT DESCRIPTION</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Project consists of the acquisition, construction and equipping of a Detention Facility providing
approximately 500 beds and including related operating and administrative facilities. The Detention
Facility will be located at 1623 East J Street in Tacoma, Washington, which is within the federally-designated
Tacoma Renewal Community.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>A-1</FONT></P>
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<div align="center">
  <p><FONT face="Times New Roman, Times, Serif" size=2>EXHIBIT B </FONT></p>
  <p><FONT face="Times New Roman, Times, Serif" size=2><a name="form"></a>FORM OF QUARTERLY DISCLOSURE CERTIFICATE</FONT>
  </p>
</div>
<P><FONT face="Times New Roman, Times, Serif" size=2>Required operating data: Average daily population for quarter reporting period</FONT></P>
<P align=center><FONT face="Times New Roman, Times, serif" size=2>B-1</FONT></P>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>11
<FILENAME>ex10-85.htm
<DESCRIPTION>EXHIBIT 10.85
<TEXT>
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<P align=right><FONT size=2><b>Exhibit 10.85</b></FONT></P>

<p align="center"><FONT face="Times New Roman, Times, Serif" size=2><B><U>LEASE AGREEMENT</U></B></FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Lease Agreement is made and entered into this <u>28<SUP>th</SUP></u> day of <u>FEBRUARY</u>&nbsp;2003, by and between</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Claude J. Yow and wife, Frances M. Yow, of 6716 Central Avenue Pike, Suite 6, Knoxville, Tennessee
  37912, their personal representatives, heirs, and assigns (hereinafter collectively referred to as
  the &#147;Landlord&#148;),</FONT></p>
<p align="right" style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>AND</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation, d/b/a Youth Services International, a corporation duly organized and operating under the laws of the state of Delaware and with offices for the conduct of business located at 1819 Main Street, Suite 1000, Sarasota, Florida 37236, its successors and assigns (hereinafter referred to as the &#147;Tenant&#148;).</FONT></p>
<p align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>WITNESSETH:</B></FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS,
  the Landlord is the fee simple owner of certain property situated in Knox County,
  Tennessee which is identified as all of Parcel 086.06 of Tax Map 057 on the
  maps of the Property Assessor for Knox County, Tennessee and which is more particularly
  described in that certain deed from Jim Hill to Claude J. Yow and wife, Frances
  M. Yow recorded in Deed Book 1986, page 637 in the Register&#146;s Office for
  Knox County, Tennessee, to which deed specific reference is hereby made for
  a more particular description (hereinafter referred to as the &#147;Commercial
  Park&#148;); and</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Landlord desires to lease, let and demise, and the Tenant desires to rent, hire, take and lease a certain portion of the Commercial Park; and</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, in consideration of the premises, of Ten Dollars ($10.00), and other good and valuable considerations exchanged between the parties hereto, the receipt and sufficiency of which is hereby acknowledged, the parties hereby mutually covenant and agree as follows:</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 1</U>. <U>Demised Premises</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord hereby leases, demises and lets to Tenant, and Tenant hereby takes, leases and hires from Landlord, upon and subject to the terms, conditions, covenants, and provisions of this Lease, a portion of that real property having an address of 6628 Central Avenue Pike, Knoxville, Tennessee 37912 and which is more particularly described in the attached <B><U>&#147;Exhibit A&#148;</U>,</B> to which Exhibit specific reference is hereby made (hereinafter &#147;Land&#148;); TOGETHER WITH (a) any and all buildings, improvements and structures located on the Land; (b) any and all appurtenances, rights, privileges and easements benefiting, belonging or pertaining to the Land; (c) any rights, title and interests of Landlord in and to any land lying in the bed of any street, road, or highway in front of or adjoining said Land, together with any strips and gores relating to said Land; and (d) all </FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1</FONT> </p>
<hr color=#000000 noshade>
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<PAGE>
<p><FONT face="Times New Roman, Times, Serif" size=2>rights in the Common Areas (as hereinafter defined) (all the foregoing and the Land hereinafter collectively referred to as the &#147;Demised Premises&#148;).</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2</U>. <U>Base Term of Lease</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The initial term of this Lease shall be for a period of three (3) years (&#147;Base Term&#148;) which shall begin on March 1, 2003 (hereinafter &#147;Commencement Date&#148;) and end at 11:59 p.m. on Feb 28, 2006. The Tenant&#146;s obligation to pay Rent shall commence on April 1<B>, </B>2003 (hereinafter &#147;Rent Commencement Date&#148;); Tenant agrees that, at on or after the Rent Commencement Date, and upon the reasonable request of the Landlord, that it will execute a Rent Commencement Statement in a form substantially similar to that attached hereto as <B>&#147;<U>Exhibit B</U>&#148;</B>, to which Exhibit specific reference is hereby made for a more particular description. A Memorandum of Lease shall be executed by the parties hereto and recorded in the Register&#146;s Office for Knox County, Tennessee pursuant to Section 43.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2A</U>. <U>Option Periods</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>At Tenant&#146;s option, and so long as the Tenant shall be in compliance with all the terms and provisions set forth in this Lease, the Tenant shall have the right to extend the term of this Lease beyond the Base Term for two (2) additional, consecutive periods of five (5) years each (the first five-year period hereinafter referred to as the &#147;First Option to Extend Lease&#148;, the second period as the &#147;Second Option to Extend Lease&#148;, both options collectively referred to as the &#147;Options to Extend Lease&#148;, and both periods collectively referred to as the &#147;Option Periods&#148; or individually as an &#147;Option Period&#148;), at the Rent and upon all of the other terms, conditions, covenants, and provisions set forth herein. The Options to Extend Lease shall be exercised by the Tenant giving notice (as described in Section 21 of this Lease) to the Landlord at least six (6) months
before the expiration of the Base Term or any Option Period, as the case may be. In the event Tenant exercises the Options to Extend Lease, or either of them, the Parties agree that they shall, at the request of either of them, execute an Extension Lease Statement which shall be in substantially the same form as set forth in <B>&#147;<U>Exhibit C</U>&#148; </B>hereof.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2B</U>. <U>Delivery of Possession and Condition of Demised Premises</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The Landlord shall deliver possession of the Demised Premises to the Tenant on the Commencement Date, vacant and free of any right of possession or claim to right of possession by any party, including liens, claiming by, through or under Landlord. However, Tenant, its agents, employees, contractors and servants shall have a right to enter upon the Demised Premises after the execution of this Lease, and to conduct all such surveys, tests, examinations, and analyses which it deems necessary, in its sole discretion.</FONT></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td colspan="4"><font face="Times New Roman, Times, Serif" size=2><u>Section 2C</u>. <u>Apportionment of Costs</u>.</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td width="6%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%"><font face="Times New Roman, Times, serif" size=2>A.</font></td>
    <td colspan="2"><font face="Times New Roman, Times, serif" size=2>Tenant shall pay in connection with the transactions contemplated hereby:</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%"><font face="Times New Roman, Times, serif" size=2>1) </font></td>
    <td><font face="Times New Roman, Times, serif" size=2>the fees and expenses of Tenant&#146;s counsel;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>2)</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>except as provided herein, all of the recording, transfer, or other taxes and fees imposed by Knox County or the State of Tennessee on the Memorandum of Lease contemplated by Section 43;</font></td>
  </tr>
</table>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2</FONT></p>
<hr color=#000000 noshade>
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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="6%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%"><font face="Times New Roman, Times, serif" size=2>3) </font></td>
    <td><font face="Times New Roman, Times, serif" size=2>except as otherwise expressly provided by this Agreement, all costs of Purchaser&#146;s due diligence;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>4)</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>except as otherwise provided by this Agreement, the costs of a title examination of the Demised Premises, the Title Commitment and the Policy;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">5)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">all closing or settlement fees imposed in connection with the closing of the contemplated transaction; and</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">6)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">such other fees, expenses, and costs as may be expressly provided by this Lease.</font> </td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>B. </font></td>
    <td colspan="2"><font face="Times New Roman, Times, serif" size=2>Landlord shall pay in connection with the transactions contemplated hereby:</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">1)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">the fees and expenses of Landlord&#146;s counsel, if any;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>2) </font></td>
    <td><font face="Times New Roman, Times, serif" size=2>any and all expenses of placing title in proper condition including, but not limited to, the preparation and recording&nbsp;costs of any remedial documents;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">3)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">any agricultural transfer or similar tax imposed by Knox County or the State of Tennessee on the transaction contemplated by this Agreement;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">4)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">any and all real property taxes for any previous tax periods up to and including the year 2002;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">5)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">Intentionally Deleted.</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">6)</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">such other fees, expenses, and costs as may be expressly provided by this Lease; and</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">7) </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">The entire real estate broker&#146;s commission to Collins, Sharp &amp; Koella.</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td colspan="4"><font face="Times New Roman, Times, serif" size=2><u>Section 3</u>. <u>Rent</u>.</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>A.</font></td>
    <td colspan="2"><font face="Times New Roman, Times, serif" size=2>During the Base Term and any Option Period(s), Tenant shall pay to Landlord as minimum rent (&#147;Minimum Rent&#148;) for the Demised Premises an annual rental of $ 5.50 per square foot space of 23,000 square foot for a total of One Hundred Twenty Six Thousand Five Hundred Dollars and No One-Hundredths Dollar ($126,500.00) U.S. per year which, except as provided herein, shall be paid by Tenant in monthly installments of Ten Thousand Five Hundred Forty One Dollars and Sixty Six One-Hundredths Dollar ($10,541.66) in advance on the first (1<sup>st</sup>) day of each calendar month at the address specified herein for notices to Landlord, or at such other address as Landlord may from time to time designate to Tenant by notice in the manner provided in Section 21. Except as otherwise provided herein, all Rent shall be paid to Landlord in advance and without demand or setoff by Tenant.</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font face="Times New Roman, Times, serif" size=2>Notwithstanding anything contained herein to the contrary: </font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>1)</font></td>
    <td><font face="Times New Roman, Times, serif" size=2>In the event the Rent Commencement Date shall fall on a day other than the first day of the month, the Rent for that month shall be pro-rated based on the number of days during that month which the Tenant occupies the Land, and the Rent for that month shall be due on the Rent Commencement Date.</font></td>
  </tr>
</table>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3</FONT></p>
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<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=6%><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top width=3%><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top width=3%><FONT face="Times New Roman, Times, serif" size=2>2)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>In the event this Lease shall terminate or expire on a day other than the last day of the month, the Rent for that month shall be pro-rated based on the number of days during that month which the Tenant occupies the Land. Further, any Rent paid in advance for a month or months in which the termination or expiration of the Lease occurs, shall be fully refunded to Tenant.</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>B.</font></TD>
  <TD colspan="2" vAlign=top><font face="Times New Roman, Times, serif" size=2>The Minimum Rent payable pursuant to this Section 3 shall be increased on the first anniversary of the Rent Commencement Date and on each anniversary of the Rent Commencement Date thereafter, including any Option Periods, by the product of the Minimum Rent in effect prior to any such increase multiplied by one plus the annual percentage increase in the Consumer Price Index for all Urban Consumers, U.S. City Average, as published by the U.S. Department of Labor Statistics (CPI-U)(1982-1984 equals 100) during the prior one-year period.</font></TD>
  </TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>C.</font></TD>
  <TD colspan="2" vAlign=top><font face="Times New Roman, Times, serif" size=2>Except as provided in this Lease, the Tenant, in addition to the Minimum Rent provided above, shall be responsible for, during the Base Term of the Lease and any Option Periods, if any, for the following costs and expenditures related to the Land:</font></TD>
  </TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>1)</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>All real property taxes imposed on the Land by Knox County or the City of Knoxville, except for the first year of the Lease which shall be prorated between the parties as of the Rent Commencement Date;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>2)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>All utilities used with the Tenant&#146;s use of the Land which shall include all charges and costs for water, electricity, gas, heat, steam, cable, and sewer charges.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>3)</FONT></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>Such other charges which are set forth in Section 4 of this Lease.</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>All of the above-enumerated items are hereinafter collectively referred to as the &#147;Additional Rent&#148;. Tenant agrees to indemnify and hold Landlord harmless from all Additional Rent, and any other costs, charges, penalties, interest and expenses related thereto. In the event the Tenant shall not pay the Additional Rent stated above before said amounts shall become delinquent, Landlord shall first give written notice to the Tenant as provided in Section 21 of this Lease. After receiving said notice, Tenant shall promptly pay the delinquent amounts, together with any interest and penalties thereon, within ten (10) business days of receipt. In the event the Tenant shall not pay said amounts within said period, Landlord shall have the right to pay said amounts and pursue any and all rights and remedies with respect thereto as Landlord has for the nonpayment of the Minimum Rent.</FONT></TD>
  </TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>D.</FONT></TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>All references in this Lease to &#147;rent&#148; or &#147;Rent&#148; shall, unless otherwise specified, include Minimum Rent and Additional Rent.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>E.</FONT></TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Except as provided herein, in the event Tenant shall fail to pay any</FONT></TD>
</TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4</FONT></p>
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<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td width=6% valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width=3% valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" valign=top><font face="Times New Roman, Times, serif" size=2>Minimum Rent within five (5) days of when it is due, Tenant shall be liable to the Landlord in an amount equal to ten percent (10%) of the late payment. In the event such Minimum Rent amount and penalty remains unpaid for another fifteen (15) days, interest shall begin to accrue on said delinquent Minimum Rent amount at the rate of twelve percent (12%) per annum, and said non-payment, then said non-payment shall be an Event of Default (as defined in Section 15), and Landlord shall have the right to pursue all remedies provided in Section 16.</font></td>
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  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="4" valign=top><font face="Times New Roman, Times, serif" size=2><u>Section 4</u>. <u>Pro-Rata Share of Real Estate Taxes, etc</u>.</font></td>
  </tr>
</table>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In addition to the Minimum Rent and the Additional Rent, the Tenant shall also remit to Landlord, its Pro-Rata Share (which shall be defined as a fraction &#150; the numerator of which shall be the number of square feet in the Land and the denominator of which shall be the number of square feet in the Commercial Park less the Common Areas) of the Taxes, Insurance Premiums, and Common Area Maintenance Expenses assessed against the Common Areas.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>The term &#147;Taxes&#148; shall mean all taxes and assessments (special or otherwise) levied or assessed against the Common Areas, whether imposed by federal, state or local governmental authorities or any other agency having jurisdiction over the Common Areas.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The term &#147;Insurance Premiums&#148; shall mean the insurance premiums charged for fire, public liability, all-risk insurance, and property damage insurance for the Common Area.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The term &#147;Common Areas&#148; shall mean those areas and facilities, which are not subject to the payment of Rent (other than Common Area Maintenance Expenses, as hereinafter defined) and are shown as cross-hatched areas on the attached Exhibit A-l.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The phrase &#147;Common Area Maintenance Expenses&#148; shall mean those reasonable expenses incurred by the Landlord in the operation, maintenance, cleaning and repairing of the Common Areas which shall include, without limitation, reasonable maintenance and replacement (when reasonably necessary) of the current landscaping of the Common Areas, repair, painting and maintenance of the parking lot(s), lighting, sanitary control, removal of snow, trash, rubbish and garbage, music or other communication systems for the Commercial Park, but excluding any all costs and expenses for repairs and maintenance which are required to be performed and paid for by the Landlord under this Lease.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5</U>. <U>Estimation of Taxes, Insurance and Common Area Maintenance Charges</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord may, within its sole discretion, estimate for each succeeding calendar year the Tenant&#146;s Pro-Rata Share of the expenses enumerated in Section 4 hereof (the &#147;Tenant&#146;s Estimated Share&#148;). Landlord may require the Tenant to pay, with each monthly installment of Rent for such succeeding calendar year, one-twelfth (1/12) of the Tenants Estimated Share. At any time during any twelve (12) month period, Landlord may re-estimate Tenant&#146;s Pro-Rata Share of the expenses enumerated in Section 4 above and thereafter adjust Tenant&#146;s Estimated Share per month during such twelve (12) month period to more accurately reflect Tenant&#146;s Pro Rata Share. Within sixty (60) calendar days after the expiration of the calendar year or the expiration or termination of this Lease, the</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>Landlord shall forward to the Tenant an itemized statement showing the Tenant&#146;s actual share of the expenses set forth in Section 4 (&#147;Tenant&#146;s Actual Share&#148;). In the event the Tenant&#146;s Actual Share differs from the Tenant&#146;s Estimated Share, then, within thirty (30) days after the date the Landlord submits the required itemized statement to the Tenant, either Landlord shall refund to Tenant any amounts paid in excess of Tenant&#146;s Actual Share, or Tenant shall remit to Landlord any amounts by which the Tenant&#146;s Estimate</FONT><FONT face="Times New Roman, Times, Serif" size=2>d Share was deficient. In the event the Landlord shall fail to provide the Tenant with the itemized list required by this Section 5:</FONT></p>
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<TD width=6% vAlign=top></TD>
<TD width=3% vAlign=top>&nbsp;</TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>And the Lease is still a valid and on-going obligation of the parties, the Tenant shall not be required to remit any further payments for the Common Area Maintenance Expenses until said itemized list is provided. In such an event, the Tenant shall have thirty (30) calendar days after receipt of the itemized list within which to pay any Common Area Maintenance Expenses which shall be due; or</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In the event the Lease has expired or terminated, the Landlord shall be responsible to the Tenant for interest at a rate of 10% per annum on any amounts owed to the Tenant pursuant to said itemized list.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>The Tenant&#146;s Estimated Share for the first year of this Lease is Fourteen Thousand Two Hundred Sixty Dollars and No One-Hundredths Dollar ($14,260.00) U.S. which is equal to One Thousand One Hundred Eighty Eight Dollars and Thirty-Three One-Hundredths Dollar ($1,188.33) U.S. per month.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6</U>. <U>Tenant&#146;s Use, Operation, and Construction</U>.</FONT></P>
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<TD width=6% vAlign=top></TD>
<TD width=3% vAlign=top>&nbsp;</TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A. </FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Proposed Use</U>. The Demised Premises may be used by the Tenant for the operation of a rehabilitation center for persons,
who are admitted by the Tenant at the age of 18 years or under, and who have attempted, threatened
to commit, committed, or pose a risk of committing sexual offenses, acts, or crimes (hereinafter
&#147;Proposed Use&#148;). Tenant may operate the Demised Premises for the Proposed Use, along with
any such other uses which are necessary or incidental to the operation thereof. In the event Tenant
desires to use the Demised Premises for a use other than the Proposed Use, or any use which is incidental
or necessary thereto, then Tenant shall first obtain the written consent of the Landlord, which consent
shall not be unreasonably withheld.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord and Tenant acknowledge and agree that nothing contained in this Lease shall obligate Tenant to operate continuously for business (or operate for business at all) at the Demised Premises, and the failure of Tenant to operate continuously for business (or operate any business at all) at the Demised Premises shall not be an Event of&nbsp;Default hereunder.</FONT></p>
    <p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant shall comply with all rules, regulations, ordinances, and laws of any governmental authority which has jurisdiction over the</FONT></p></TD>
</TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6</FONT></p>
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  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD width=6% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD width=3% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD width=3% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Demised Premises of Tenant&#146;s operation of the Demised Premises for the Proposed Use. Tenant acknowledges
that Landlord may lease or rent other portions of the Commercial Park to other tenants, and will
take such reasonable steps so as to ensure that it will not unreasonably interfere with the operations
of said other tenants&#146; businesses. In the event that the Landlord gives written notice to the
Tenant that the Tenant&#146;s operations have unreasonably interfered or are interfering with Landlord&#146;s
other tenants in the Commercial Park, Tenant and Landlord will mutually agree on a course of action.</FONT></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>B. </font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2><u>Construction and Remodeling</u>. At Tenant&#146;s option and during the Base Term of this Lease, as well as any Option Periods, Tenant shall have the absolute right to construct those improvements, facilities and/or structures on the Land and remodel, rebuild, or reconstruct any improvements, facilities and/or structures already located on the Land as it shall determine are necessary for the Proposed Use. During the course of said construction, reconstruction, etc., the Tenant shall ensure that all bills associated with said construction are paid in full, and shall provide copies of all invoices and receipts for the same to the Landlord.</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>Tenant shall insure that all construction, remodeling and reconstruction made by it shall comply with all applicable building codes, as well as state, federal and local statutes. Tenant shall also hold Landlord harmless on account of all claims for mechanic&#146;s, materialmen&#146;s or other liens in connection with any construction performed by Tenant, its licensees, agents, or contractors to the Land, and any such liens <B><U>shall only attach against the Tenant&#146;s leasehold interest</U></B>.</FONT></p>
    <p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>All improvements, repairs, and alterations which are permanently affixed to the Land by the Tenant, except for Trade Fixtures (which shall remain the sole and exclusive property of the Tenant), shall become the property of Landlord at the expiration or termination of this Lease. Tenant also agrees that it will repair any damage to the Demised Premises occasioned by the removal of any Trade Fixtures. As used in this Lease, the term &#147;Trade Fixtures&#148; shall mean those items of personal property brought upon the Demised Premises by the Tenant which are necessary to carry on the Proposed Use.</FONT></p></TD>
</TR>
</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7</U>. <U>Intentionally Omitted</U>. </FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 8</U>. <U>Intentionally Omitted</U>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 9</U>. <U>Tenant&#146;s Duty to Repair and Maintain</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>With respect to the Land and any improvements located thereon, except as set forth in this Section 9 and Section 11, the Tenant shall keep and maintain the same in good order, condition and repair. Tenant&#146;s obligation to do so shall include the repair and maintenance of the exterior and interior portion of all doors, windows plate glass, all plumbing and sewage facilities (from the point where they connect to any structures on</FONT></p>

<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">7</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>the Land), fixtures, heating, air conditioning and electrical systems, sprinkler systems, interior walls, floors, and ceilings, utility meters located on the Land and which measure utilities
servicing the Land, and all installations made by Tenant under the terms of this Lease, if any. Tenant
shall have the right to perform all repairs and maintenance without seeking the Landlord&#146;s prior approval. Tenant shall insure that all repairs and maintenance made by it shall comply with all applicable building codes, as well as state, federal and local statutes.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant shall save Landlord harmless on account of all claims for mechanics&#146;, materialmen&#146;s or other liens in connection with any work performed by Tenant to the Land, and any such liens <B><U>shall only attach against the Tenant&#146;s leasehold interest</U></B>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>All improvements, repairs, and alterations which are permanently affixed to the Land by the Tenant, except for Trade Fixtures, shall become the property of Landlord at the expiration or termination of this Lease.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 10</U>. <U>Surrender of Premises</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Unless terminated sooner, Tenant shall deliver the Demised Premises to the Landlord at the termination of the Base Term or any Option Periods, whichever shall occur later. Except as provided in Section 9 and unless otherwise specified by the Landlord in writing, the Tenant shall deliver the Demised Premises to the Landlord together with all improvements, alterations and repairs made by it during the Base Term and any Option Periods. At the time of surrender, Tenant shall deliver all keys for the Demised Premises to the Landlord at the place then fixed for the payment of Rent and shall inform the Landlord of all combination locks, safes and vaults, if any, which are a part of the Demised Premises. Any items remaining in the Demised Premises after surrender of the keys
to the Demised Premises shall be deemed abandoned for all purposes and shall become the property
of Landlord, and the latter may dispose of the same without liability of any type or nature.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>If Tenant shall default in surrendering the Demised Premises, Tenant&#146;s occupancy subsequent to such expiration or termination, in the event such occupancy is without the consent or acquiescence of Landlord or pursuant to an amendment or extension of this Lease, said occupancy shall be deemed to be a tenancy-at-will and in no event for month to month or year to year, and it shall be subject to all the terms, covenants and conditions of this Lease applicable thereto, and no extension or renewal of this Lease shall be deemed to have occurred by such holding over; provided, however, that the monthly installments of Minimum Rents payable hereunder during said holdover period shall be equal to 150% of the monthly installments of Minimum Rent payable during the last month of the term of the Lease, and all Additional Rent payable hereunder shall be prorated during such holdover period.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 11</U>. <U>Landlord&#146;s Duty to Repair</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Except for those repairs, maintenance, and improvements which are expressly to be made by the Tenant pursuant to this Lease, Landlord shall have the duty and obligation to make all repairs, maintenance and improvements to the Demised Premises. Notwithstanding anything contained in this Lease to the contrary, said repairs, maintenance, and improvements shall include, without limitation, the duty of Landlord to keep the foundation, roof, roadways, driveways, as well as the compressor for the HVAC</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p><FONT face="Times New Roman, Times, Serif" size=2>system on the Demised Premises, and exterior walls and surfaces of all buildings and improvements, whether now or hereafter constructed, which are located on the Demised Premises in good condition, working order and repair. Provided that, any of the foregoing repairs which are not due to ordinary  wear and tear, but rather are due to the intentional or negligent acts of the Tenant shall be the   sole responsibility of the Tenant. Notwithstanding anything to the contrary contained herein, the   Landlord shall not be required to make any additions to any buildings currently located on the Demised Premises.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 12</U>. <U>Liability of Tenant: Insurance</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant shall protect, indemnify and save Landlord harmless from and against all and any liability, including reasonable attorneys&#146; fees and court costs, arising or allegedly arising from injuries or damages to persons or property in, on or about the Demised Premises occasioned by any act or omission of Tenant, its agents, officers, invitees, licenses, customers, residents, or employees during the Base Term or this Lease, and any Option Periods thereto.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant shall also protect, indemnify and save Landlord harmless from and against all and any liability, including reasonable attorneys&#146; fees and court costs, arising or allegedly arising from any intentional or negligent conduct, act, activity, omission, or operation of the Demised Premises, by the Tenant, its agents, officers, or employees, during the term of this Lease, involving the use, handling, generation, treatment, storage, disposal, or release of any Hazardous Material (as defined below). Tenant&#146;s obligation pursuant to this Section 12 shall survive the termination of the Lease.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;For purposes of this Lease, the term &#147;Hazardous Materials&#148; means gasoline, motor oil, fuel oil, waste oil, other petroleum or petroleum-based products, asbestos, polychlorinated biphenyls, medical and infectious wastes and any chemical, substance and material defined or designated as &#147;hazardous substances&#147;, &#147;hazardous wastes&#148;, &#147;pollutants&#147;, &#147;contaminants&#148;, &#147;hazardous materials&#147;, or &#147;toxic substances&#148; under any Environmental Law. Notwithstanding anything to the contrary, the term &#147;Hazardous Material&#148; shall not include dust or similar non-carcinogenic particulate matter, which may be created as a result of the Tenant&#146;s operations on the Demised Premises.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>As used in this Lease, the term &#147;Environmental Law&#148; means any and all federal, state, regional, county, municipal or local laws, statutes, rules, regulations or ordinances, now or hereafter in effect, relating to the generation, recycling, use, reuse, sale, storage, handling, transport, treatment or disposal of Hazardous Materials, including the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended by Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. &#167; 9601 et seq. (&#147;CERCLA&#148;), the Resource Conservation and Recovery Act of 1976,  as amended by the Solid and Hazardous Waste Amendments of 1984, 42 U.S.C. &#167; 6901 et seq. (&#147;RCRA&#148;),     the Toxic Substances Control Act, 15 U.S.C. &#167; 2601 et seq., the Hazardous Materials Transportation     Act, 49 U.S.C. &#167; 1801 et seq., the
Clean Air Act, 42 U.S.C. &#167; 7401 et seq., the Clean Water Act of 1977, 33 U.S.C. &#167; 1251 et seq., and any rules, regulations, and guidance documents promulgated     or published thereunder, and any state, regional, county, municipal, or local statute, law, rule,     regulation, and guidance documents promulgated or published thereunder, and any state, regional,     county, or local statue, law, rule, regulation or ordinance now or hereafter in effect that relates to the</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT></p>
<hr color=#000000 noshade>
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<P><FONT face="Times New Roman, Times, Serif" size=2>discharge, emission or disposal of Hazardous Materials in or to land or groundwater, to the withdrawal or use of groundwater, to the use, handling or disposal of asbestos, polychlorinated biphenyls, petroleum, petroleum derivatives or by-products, other hydrocarbons or urea formaldehyde, to the treatment, storage, disposal, management or release of gaseous or liquid substances, and any regulation, order, injunction, judgment, declaration, notice or demand issued thereunder.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant shall carry public liability insurance covering the Land, the basketball court, and the Creek
  Area, and the use and occupancy of the same in a company or companies licensed to do business in
  the state where the Land is located under a policy satisfactory to Landlord both as to amount and
  coverage and shall provide evidence of same to Landlord. The policy shall contain a provision that
  it may not be canceled or amended, nor may it lapse, without first giving Landlord not less than
  thirty (30) days prior written notice. Tenant agrees not to keep upon the Land any articles or goods
  which may be prohibited by the standard form of fire insurance policy. Tenant agrees that if any
  property owned by it and located in, on or about the Land shall be destroyed by an insured peril,
  Landlord shall not have any liability to Tenant, nor to any insurer of Tenant, for or in respect
  to such damage or destruction, and Tenant shall require all policies of risk insurance carried by
  it on its property in, on and about the Land to contain or be endorsed with a provision in and by
  which the insurer designated therein shall waive its rights of subrogation against Landlord, while
  also including the Landlord as an additional insured. Unless Landlord notifies Tenant otherwise,
  Tenant shall carry a minimum of Three Million Dollars ($3,000,000.00) in public liability insurance covering the Land.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 13</U>. <U>Damage or Destruction by Fire or Other Casualty</U>.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="6%" vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Total Loss</U>. If at any time the Demised Premises becomes totally untenable by reason of damage or loss by fire or other casualty, as determined in the
  sole discretion of the Tenant, and such fire or other casualty shall not have
  been caused by the negligence or wrongful act or omission of Tenant,
  Tenant&#146;s servants, agents, licensees, residents, employees, or invitees, the Rent shall abate until the Demised Premises shall have been restored to a condition which was comparable to their condition prior to the casualty,  but nothing herein is to be construed as requiring Landlord to restore or rebuild the Demised Premises.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Partial Loss</U>. If the Demised Premises are damaged by reason of fire or other casualty, but not to the extent that they are totally untenable and
  continued occupancy or use is not prohibited by applicable laws, building codes, ordinances or other regulations, then Tenant shall continue to occupy same, or the tenable portion thereof, and the Rent shall abate proportionately in the ratio that the unusable portion bears to the entire Demised Premises.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Reconstruction by Landlord</U>. In the event of a loss from fire or other casualty, Landlord may elect not to rebuild or recondition the Demised Premises, which election shall be exercised by written notice thereof to</FONT></TD>
</TR></TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10</FONT></p>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Tenant, given within ten (10) calendar days from date of said loss. If Landlord exercises such election,
this Lease shall cease and terminate, effective on the date of such loss, and Tenant shall pay the
accrued Rent up to date of such loss, or Landlord, if the Rent has been paid beyond such date, will
refund to Tenant the proportionate part of any such Rent prepaid, and thereupon this Lease shall
become null and void, with no further obligation on the part of either party hereto, even though
the building may at a later date be rebuilt, restored or reconditioned. No damage or destruction
shall allow Tenant to surrender possession of Demised Premises, nor affect Tenant&#146;s liability
for the payment of Rent, except as specifically provided in this Lease. If Tenant cannot conduct
business as usual because of loss of usage due to fire, or other casualty this Lease shall be terminated
at Landlord&#146;s and Tenant&#146;s agreement.</FONT></TD></TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 14</U>. <U>Tenant Assignment and Subletting</U>.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Except as expressly provided herein, Tenant may not assign this Lease or enter into a sublease for all or any portion of the Demised Premises without Landlord&#146;s prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. In the event Landlord shall fail to respond within thirty (30) days to any written request for consent to an assignment or subletting, such consent shall be deemed to have been given.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The provisions of this Section 14 shall not apply to the transfer of stock in connection with a merger or consolidation of Tenant and another legal entity (e.g. corporation, limited partnership, etc.), provided that Tenant&#146;s successor shall, as a result of such reorganization, be legally obligated to pay Rent and all of the charges due hereunder and to perform all of the terms, covenants, and provisions to be performed by Tenant. This Section 14 shall also not apply in the event Tenant offers its shares to the public pursuant to a registered securities offering or for the transfer of stock as part of a &#147;financing&#148; vehicle which otherwise does not significantly alter the management and control of Tenant. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding any other provision to the contrary set forth in this Lease, the transfer of stock among the current stockholders of Tenant, a transfer of stock among the current stockholders of Tenant and their immediate families (i.e. spouses, parents, brothers, sisters, children, grandchildren or any spouse of any such parent, brother, sister, child or grandchild), a transfer of stock by will or devise, or a transfer of stock to any employee, officer or director of Tenant shall not constitute an assignment for the purposes of this Lease.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>D.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding any other provision to the contrary set forth in this Lease, Tenant shall have the right to assign this Lease or sublet the Demised Premises, without Landlord&#146;s consent, to any firm, person, corporation,</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11</FONT></p>
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<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td valign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="6%" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>partnership, or other entity now or hereafter controlled by, in control of, or under common control with Tenant.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>E.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>In the event that Tenant assigns or sublets all or a portion of its interest in the Demised Premises, Tenant shall remain fully liable under the terms and conditions of this Lease during the remainder of the Base Term or Option Period, as applicable, of the Lease in effect at the time of said assignment or subletting.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="3" valign=top><FONT face="Times New Roman, Times, serif" size=2><U>Section 15</U>. <U>Events of Default</U>. Any one or more of the following events shall constitute an &#147;Event of Default&#148;:</FONT></td>
  </tr>
  <tr>
    <td colspan="3" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>A.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The failure of Tenant to pay any Rent or any other sum of money, subject to the conditions of Section 3;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>B.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The admission in writing by Tenant, or any guarantor hereunder, of its inability to pay its own debts when due;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top nowrap><font face="Times New Roman, Times, serif" size=2>C. &nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>Intentionally Omitted.</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>D.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The sale of Tenant&#146;s interest in the Demised Premises under attachment, execution or similar legal process, or if Tenant is adjudicated as bankrupt or insolvent under any state bankruptcy or insolvency law, or an order for relief is entered against Tenant under the Federal Bankruptcy Code and such adjudication or order is not vacated within thirty (30) days;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>E.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The commencement of a case under any chapter of the Federal Bankruptcy Code by or against Tenant, or any guarantor of Tenant&#146;s obligations hereunder, or the filing of a voluntary or involuntary petition proposing the adjudication of Tenant, or any such guarantor, as bankrupt or insolvent, or the reorganization of Tenant or any such guarantor, or an arrangement by Tenant or any such guarantor with its creditors, unless the petition is filed or case commenced by a party other than Tenant or any such guarantor and is withdrawn or dismissed within thirty (30) days after the date of its filing;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>F.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The appointment of a receiver for the business or property of Tenant or any such guarantor, unless such appointment shall be vacated within ten (10) days of its entry;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>G.</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>Intentionally Omitted.</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>H.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Default by Tenant in the performance or observance of any covenant or provision of this Lease (other than a default involving the payment of money), which default is not cured within ten (10) days after the giving of notice thereof by Landlord.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>I.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Failure of Tenant to satisfy any judgment or lien arising out of the Proposed Use, within a reasonable time after the making of the same, which complaint, action or lawsuit shall impose liability on the Landlord. Provided, however, that nothing in this subsection I shall be construed as preventing the Tenant from defending itself or challenging the validity of said judgment or lien.</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 16</U>. <U>Remedies</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Upon the occurrence of any Event of Default, the Landlord shall provide notice of the same to the Tenant. Upon receipt of said notice, Tenant shall have fifteen (15) days within which to correct the matter noticed. In the event Tenant does not correct said Event of Default within said period, then the Landlord may, at its option:</FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Give to Tenant a notice of election to end the term of this Lease upon a date specified in such notice, which date shall be not less than ten (10) business days (Saturdays, Sundays and legal holidays excluded) after the date of receipt by Tenant of such notice from Landlord, and upon the date specified in said notice the term and estate hereby vested in Tenant shall cease and any and all other right, title and interest of Tenant hereunder shall likewise cease without further notice or lapse of time, as fully and with like effect as if the entire term of this Lease had elapsed; or</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Landlord may re-enter and take possession of the Demised Premises and any improvements without terminating this Lease, and sublease in their entirety the same for the account of Tenant, holding Tenant liable for the difference in the Rent and other amounts actually paid by such subtenant in such subletting and the Rents and other amounts payable by Tenant hereunder; or</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Landlord may take whatever action may be permissible at law or in equity to collect the Rent and other amounts then due, or which become due or to enforce performance and observance of any obligation, agreement, or covenant of Tenant under this Lease, and in connection with such actions, to recover any of all damages to Landlord for Tenant&#146;s violation or breach of this Lease. The curing of any  Event(s) of Default within the above time limits set forth in this Section 16 by any of the permissible parties or combination thereof, shall constitute a curing of any <br>
    Event(s) of Default hereunder with like effects as if Tenant had cured same hereunder.</FONT></TD>
  </TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 17</U>. <U>Condemnation</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>If all or a portion of the Demised Premises shall be taken under the exercise of eminent domain, and
  the Demised Premises shall continue to be reasonably suitable for the Proposed Use, as the same shall
  be determined in the sole discretion of the Tenant, then the Rent shall be reduced from the date
  of such taking in direct proportion to the reduction in the usefulness of the Demised Premises, as
  said proportion is agreed to between the parties hereto. In the event the Tenant determines, in its
  sole discretion that the Demised Premises are not reasonably suitable for the Proposed Use, then
  Tenant shall have the right, at its sole option, to terminate and cancel this Lease after giving
  thirty (30) days notice to the Landlord. Such notice shall be given within ninety (90) days from
  the date of said taking, and Tenant shall be liable only for the Rent which is or has been earned
  to the date of the surrender of the Demised Premises to Landlord and for the performance of other
  obligations maturing prior to said date. In the event Tenant has</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>prepaid any Rent for any period of time after the date of surrender, Landlord shall refund the same to Tenant upon surrender of the Demised Premises.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 18</U>. <U>Landlord&#146;s Right of Entry</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord reserves the right, at all reasonable times during the term of this Lease, for Landlord or Landlord&#146;s agents to enter the Demised Premises for the purposes of inspecting or examining the same, and to show the same to prospective purchasers or tenants, and to make such repairs, alterations, improvements or additions as Landlord may deem necessary or desirable. During the sixty (60) days prior to the expiration of the term of this Lease or any renewal term, Landlord may exhibit the Demised Premises to prospective tenants or purchasers, and place upon the Demised Premises the usual notices advertising the Demised Premises for sale or lease, as the case may be, which notices Tenant shall permit to remain thereon without molestation.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything contained herein to the contrary, Landlord shall give Tenant at least twenty four (24) hours notice (which may be accomplished by telephone call from Landlord or other reasonable means) prior to the exercising of its right of entry pursuant to this Section 18. Further, notwithstanding anything contained herein to the contrary, Landlord agrees, for itself and for its agents and employees, that it shall indemnify and hold the Tenant harmless from any and all actions, lawsuits, demands, liability and judgments, whether actual or threatened, including court costs and attorneys&#146; fees which arise due to the negligence or intentional acts of the Landlord, its agents or employees, while exercising the right of entry granted herein.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 19</U>. <U>Quiet Enjoyment</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Landlord agrees that, if the Rent is being paid in the manner and at the time prescribed and the covenants and obligations of the Tenant are being all and singularly kept, fulfilled and performed, Tenant shall lawfully and peaceably have, hold, possess, use, occupy and enjoy the Demised Premises as long as this Lease remains in force, without hindrance, disturbance or molestation from Landlord subject to the specific provisions of this Lease.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 20</U>. <U>Subordination and Attornment</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>At the request of the Landlord, the Tenant agrees that it will execute a Subordination, Non-Disturbance and Attornment Agreement in substantially the same form as that attached as <B>&#147;<U>Exhibit D</U>&#148;</B>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 21</U>. <U>Notices</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>All notices, demands, request, consents, and other instruments required or permitted to be given pursuant to the terms of this Lease shall be in writing and shall be deemed to have been properly given if sent by personal delivery, Federal Express, or first class registered or certified United States Mail, return receipt requested, addressed to Landlord and Tenant as follows:</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>If to Landlord:</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>Yow Properties<br>Claude Yow, President<br>6716 Central Avenue<br>Suite # 6<br>Knoxville, Tennessee 37912</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><br>
If to Tenant:</FONT></p>
<P><FONT face="Times New Roman, Times, Serif" size=2>Mr. James F. Slattery, President<BR>
    Youth Services International<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>1819 Main St #1000<br>
Sarasota, FL 34236</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>with a copy to:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Arthur Seymour, Jr., Esq.<br>
Frantz, McConnell &amp; Seymour <br>
P.O. Box 39 <br>
Knoxville, TN 37901 <br>
Fax: (865) 637-5249</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Or, at such other address in the United States as Landlord or Tenant may from time to time designate in writing and deliver to the other party.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 22</U>. <U>Successors</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The provisions, covenants and conditions of this Lease shall bind and inure to the benefit of the legal representatives, successors and assigns of each of the parties.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 23</U>. <U>Governing Law</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Lease shall be governed by, and construed in accordance with, the laws of the state of Tennessee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 24</U>. <U>Disclosure of Financing</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>At Landlord&#146;s reasonable request, Tenant shall provide to the Landlord, within thirty (30) calendar days, a list of all equipment which it maintains on the Demised Premises which is financed.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 25</U>. <U>Tenant&#146;s Remedies</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In the event that Landlord fails to perform any duties or obligations under this Lease, Tenant shall provide notice of the same to Landlord. After receiving notice, Landlord shall either correct or perform the matters stated in the notice within ten (10) calendar days. In the event Landlord fails to correct the same, to the satisfaction of the</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>Tenant, then Tenant may pursue any and all remedies available in law or equity including, but not limited to, the right to rescind the remaining term of the Base Term, or Option Periods, as applicable, the right to perform said duties or obligations of the Landlord and recoup the same from the Landlord together with interest on all amounts expended by Tenant at the rate of 15% interest per annum, or the maximum rate allowable by law, whichever shall be greater, and/or filing suit against the Landlord. None of the remedies provided herein shall be exclusive, but rather shall be cumulative.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 26</U>. <U>Intentionally Omitted</U>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 27</U>. <U>Addenda and Exhibits</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>All addenda and exhibits attached hereto are made a part of this Lease for all purposes.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 28</U>. <U>Documentation</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Tenant covenants and agrees to execute and/or deliver to Landlord, any lender of the Landlord, or the lender of any prospective purchaser of the Demised Premises, within thirty (30) days from the Landlord&#146;s reasonable request, such financial statements and estoppel certificates as may be requested by Landlord. Any such financial statements and estoppel certificates may be relied upon by any prospective purchaser&#146;s lender, any lender or prospective lender of the Landlord, or any assignee or prospective assignee of any lender thereof. If Tenant shall fail or refuse to furnish the estoppel certificates within thirty (30) days after Landlord&#146;s reasonable request, it will be presumed that this Lease is in full force and effect, in accordance with its terms, and that Landlord is not in default.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 29</U>. <U>Guarantor</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Any guarantor executing this Lease hereby guarantees to Landlord, its successors and assigns, the full performance of all obligations of Tenant arising hereunder, whether now existing or hereafter arising. The obligations of the guarantor shall in no way be terminated, affected or impaired by reason of the assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord pursuant to the provisions of this Lease, or the granting of any indulgence or extension of time to Tenant, or by reason of the amendment, modification, renewal or extension to Tenant of this Lease, to all of which the guarantor consents in advance.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 30</U>. <U>Re-execution; Acknowledgement</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord, Tenant and any guarantor, if any, agree that that they, or any of them, will, on request of the other party, re-execute this Lease, or any other documents associated therewith, in order to satisfy any legal formalities (e.g., acknowledgement required under the laws of the state where the Demised Premises are located.)</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 31</U>. <U>Provisions Severable</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 32</U>. <U>Security Deposit</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>As security for the prompt and punctual performance of all obligations required to be performed hereunder by Tenant, Tenant shall deposit with Landlord the sum of Ten Thousand Five Hundred Forty One Dollars and Sixty Six One-Hundredths Dollar ($10,541.66) U.S. (&#147;Security Deposit&#148;) which shall be held as a security deposit until the expiration of the Base Term, or any Option Periods, whichever shall occur later. In the event of the occurrence of any Event of Default hereunder by Tenant, Landlord may apply the Security Deposit to offset either in whole or in part any obligations of the Tenant hereunder. The covenants relating to the Security Deposit are personal covenants between Landlord and Tenant and are not covenants running with the land, and in no event will Landlord&#146;s mortgagee or any purchaser at a foreclosure sale or a sale in lieu of foreclosure be liable to Tenant for the return of the
Security Deposit. Tenant shall not assign or encumber the Security Deposit or its interest therein, and neither Landlord nor its successors and assigns shall be bound by any attempted assignment or encumbrance. Landlord may deposit the Security Deposit upon execution of this Lease by Tenant and before final execution of this Lease by Landlord. In the event Landlord does not accept this Lease, Landlord shall refund the Security Deposit in full to Tenant.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 33</U>. <U>Intentionally Omitted</U>. </FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 34</U>. <U>Intentionally Omitted</U>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 35</U>. <U>Force Majeure</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In the event Landlord or Tenant is prevented, delayed, or stopped from performing any act, undertaking, or obligation by reason of an event of &#147;force majeure&#148;, including unusual or adverse weather, strikes, lockouts, labor disputes, failure of power, acts of public enemies of this state or the United States of America, riots, insurrection, war, civil commotion, delay caused by restrictive governmental laws or regulations or the failure of any government agency to issue a building or occupancy permit, inability to obtain labor or materials, governmental action or inaction, and/or any other cause beyond the reasonable control of Landlord or Tenant, then the time for Landlord&#146;s or Tenant&#146;s performance, as applicable, shall be extended one (1) day for each day&#146;s prevention, delay or stoppage by reason of such event of force majeure.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 36</U>. <U>Intentionally Omitted</U>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 37</U>. <U>Acceptance of Demised Premises.</U></FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Upon acceptance of the Premises, Tenant agrees to execute an Acceptance Letter which shall be substantially similar in form to the letter attached hereto as &#147;<U>Exhibit E</U>&#148;.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In the event the Landlord makes the repairs, changes and/or improvements required by this Lease prior to Tenant&#146;s acceptance of the Demised Premises, and Tenant refuses to accept the Demised Premises thereafter despite the repairs, changes and/or improvements being satisfactory, then Tenant shall reimburse Landlord for the actual</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17</FONT></p>
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<P><FONT face="Times New Roman, Times, Serif" size=2>costs expended by Landlord for all repairs, changes, and/or improvements made by Landlord to the Demised Premises out of the Security Deposit.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 38</U>. <U>Intentionally Omitted</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 39</U>. <U>Entire and Binding Agreement</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Lease contains all of the agreements between the parties hereto, and it may not be modified in any manner other than by agreement signed by all parties hereto or their successors in interest. This Lease is of no force or effect until it has been fully executed by both parties.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 40</U>. <U>Conditions Precedent to Tenant&#146;s Obligations</U>.</FONT></P>
<P style="text-indent:30pt"><FONT face="Times New Roman, Times, Serif" size=2>Tenant&#146;s obligations hereunder are conditioned upon the satisfaction of each of the following
  conditions within forty five (45) days of the Commencement Date of this Lease (each of which may
  be waived by Tenant upon giving Notice of such waiver to Landlord):</FONT></P>
<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td width=6% valign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td width=3% valign=top><font face="Times New Roman, Times, serif" size=2>A.</font></td>
    <td colspan="3" valign=top><font face="Times New Roman, Times, serif" size=2>The Tenant obtaining, at its sole expense, a current survey of the Demised Premises prepared by surveyor acceptable to Tenant (the &#147;Survey&#148;). The Survey shall:</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="3%" valign=top nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td width="3%" valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>1)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Be in a form and content acceptable to the Tenant and any title company chosen by Tenant to close this lease transaction. Additionally, Tenant may notify the Landlord of its objections to the Survey. If Tenant notifies Landlord of such objections, Landlord shall seek to have the Survey corrected as expeditiously as reasonably possible.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>2)&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Contain all the elements and requirements of an ALTA survey;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>3)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Locate all present and future easements, rights-of-way, building lines, utility lines, roadways, and encroachments on or abutting the Land, which are contemplated by this Lease and any agreements or exhibits attached hereto.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Contain an accurate metes and bounds description of the Land;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>5)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Show the location of any and all temporary construction easements, if any;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>6)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Contain the certification of the surveyor as to the number of square feet of the Land;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>7)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Contain the certification of the surveyor as to the number of parking spaces required for the Proposed Use of the Land;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>8)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Contain the certification of the surveyor as to the number of square feet located within any buildings, structures, or improvements currently located on the Land; and</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>9)</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Show all matters listed on Schedule B-2 of any Title Insurance Commitment.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>B.</font></td>
    <td colspan="3" valign=top><font face="Times New Roman, Times, serif" size=2>Tenant, at Tenant&#146;s sole cost and expense, shall be able to obtain and approve a commitment for title insurance for the Demised Premises (the &#147;Title</font></td>
  </tr>
</table>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">18</FONT></p>
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<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><p><FONT face="Times New Roman, Times, serif" size=2>Commitment&#148;) issued by a national title insurance company selected and engaged by Tenant (&#147;Title
  Company&#148;), together with copies of all instruments, if any, referred to in the Title Commitment
  as exceptions or requirements to the title. The Title Commitment shall commit the Title Company to
  insure that (i) fee simple title is vested in Landlord and a leasehold interest will be vested in
  the Tenant; (ii) title is good and merchantable of record; and (iii) title is free of all liens,
  encumbrances, easements, restrictions, claims of title, leases, adverse possession, condemnation,
  and other matters except for the Permitted Exceptions (as defined below); and (iv) the Demised Premises
  has access to a public right of way, either directly or by means of an easement, which has been recorded
  in the Register&#146;s Office for Knox County, Tennessee.</font></p>
  <p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>If any exceptions appear in the Title Commitment, other than the standard pre-printed exceptions (which shall be totally deleted in the Policy (as defined below), except for an exception for real property taxes not yet due and payable), which are objectionable to Tenant, Tenant shall, within thirty (30) days of the receipt of the Title Commitment, send notice to Landlord of such fact. Upon the expiration of the thirty (30) day period, Tenant shall be deemed to have accepted all exceptions to title as shown on the Title Commitment, except for matters to which a notice under the preceding sentence has been given by Tenant, and such exceptions shall be included in the term &#147;Permitted Exceptions&#148; as used herein. Landlord shall, within ten (10) days of receipt of said notice, clear the title of the defects and objections so specified. The phrase &#147;Permitted Exceptions&#148; as used in this Lease shall mean
any and all matters affecting the title to the Demised Premises which are not objectionable to the Tenant and have been either approved or waived in writing by the same.</font></p>
  <p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>Tenant shall also be able to obtain, at its expense, a standard form ALTA Leasehold Owner&#146;s Title Insurance Policy, together with endorsements to the leasehold owner&#146;s title insurance policy which include, but are not limited to, the (a) ALTA 9.1 Endorsement (Leasehold Owner&#146;s Comprehensive for Improved Property); (b) ALTA 3.1 Endorsement (Zoning with Parking); (c) ALTA Leasehold Owner&#146;s Policy Endorsement for Deletion of Creditor&#146;s Rights; (d) ALTA Leasehold Owner&#146;s Policy Endorsement for Access; (e) ALTA Leasehold Owner&#146;s Policy Endorsement for Separate Tax Parcel; (f) ALTA Leasehold Owner&#146;s Policy Endorsement for Utilities; (g) ALTA Leasehold Owner&#146;s Policy Endorsement for Waiver of Arbitration; and (h) ALTA Leasehold Owner&#146;s Policy Endorsement for Subdivision, (the leasehold owner&#146;s policy and listed endorsements hereinafter collectively referred to as
the &#147;Policy&#148;) issued by the Title Company, insuring marketable leasehold title to Tenant in the full amount of the contemplated improvements and containing no exceptions or conditions other than the Permitted Exceptions as provided in this Section 40.</FONT></p></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font face="Times New Roman, Times, serif" size=2>C.</font></TD>
<TD vAlign=top><font face="Times New Roman, Times, serif" size=2>Tenant, at Tenant&#146;s sole cost and expense, shall have obtained an environmental site assessment report of the Demised Premises by a consultant</font></TD>
</TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<table cellspacing="0" cellpadding="0" width="100%" border="0">
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width=6% valign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></td>
    <td width=3% valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>selected and engaged by Tenant which does not reveal, in Tenant&#146;s reasonable discretion, any unsatisfactory environmental conditions at the Demised Premises, including but not limited to the presence of any Hazardous Materials.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top nowrap><font face="Times New Roman, Times, serif" size=2>D.&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>All applicable zoning and land use laws, ordinances, and regulations will permit, as a matter of right, the use of the Demised Premises for the Proposed Use;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>E.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Intentionally Omitted.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>F.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Stormwater management and all utilities including, but not limited to, public water, sewer service, electric service, gas service, television cable service, and telephone service, shall be available and connected to all structures located on the Land at the Commencement Date;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>G.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Tenant shall have received a valid and irrevocable grant, on terms and conditions satisfactory to Tenant, in its sole discretion, of all necessary building permits and similar approvals that are necessary to permit Tenant to develop the Demised Premises for the Proposed Use (hereinafter &#147;Approvals&#148;), and Landlord agrees to cooperate, at no cost to Landlord, in Tenant&#146;s attempt to obtain the Approvals;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>H.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>All of the documents and other items required to be delivered by Landlord to Tenant, as provided by this Lease, shall be delivered in form and substance reasonably satisfactory to Tenant;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>I.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Landlord shall comply with, fulfill, and perform, in each case in all material respects, each of the covenants, terms, and conditions to be complied with, fulfilled, or performed by Landlord under this Lease; and</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>J.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>All of the representations and warranties made by Landlord in this Lease shall be true in all material respects as of the Rent Commencement Date of this Lease.</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><p style="text-indent:20pt "><font face="Times New Roman, Times, serif" size=2>If Tenant fails to satisfy or be satisfied with or waive the contingency set forth in this Section 40, the Tenant may, at its option, terminate this Lease by giving notice to Landlord whereupon any Rent or other amounts paid by Tenant to Landlord shall be refunded to Tenant and this Lease shall be of no further force or effect, with Tenant and Landlord having no further rights, obligations, or liabilities hereunder, except as otherwise expressly set forth herein.</font></p></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td valign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>K.</font></td>
    <td valign=top><font face="Times New Roman, Times, serif" size=2>Landlord shall install and have in good working order, at Landlord&#146;s sole cost and expense, a smoke and security alarm system for the Demised Premises and all structures located thereon.</font></td>
  </tr>
</table>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 41</U>. <U>Landlord&#146;s Warranties, Covenants and Representations</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>For the purpose of inducing Tenant to enter into this Lease and to consummate the closing of the same
  as contemplated by this Lease, Landlord does hereby expressly warrant and represent to Tenant, to
  the best of Landlord&#146;s knowledge, as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, serif" size=2>A.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>There are no actions, suits or proceedings of any kind or nature whatsoever, legal or equitable, pending or threatened against the Demised Premises or Landlord in any court or before or by any federal, state, county, municipal department, municipal subdivision, commission, board, bureau, or agency, or other governmental or quasi-governmental instrumentality, including, without limitation, any condemnation or eminent domain proceedings.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>B.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>No person, firm, corporation or other legal entity whatsoever (other than Tenant) has any right or option whatsoever to acquire or lease the Demised Premises or any portion or portions thereof or any interest or interests therein.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>C.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The Demised Premises is not and will not be subject to or affected by any special assessments, whether or not presently a lien thereon.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>D.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>There is no existing violation or breach of any ordinance, code, law, rule, requirement or regulation applicable to the Demised Premises.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>E.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>There are no actions, suits, proceedings or proposals of any kind or nature whatsoever pending or being considered relating to any proposed changes to the highways, roadways and/or accessways adjoining or adjacent to the Demised Premises, including without limitation, the widening thereof, proposed or pending construction of road medians, proposed or pending construction of acceleration/deceleration lanes, changes in or additions to existing or approved curb cuts, proposed or pending installation or removal of traffic lights or any other changes or proposed changes in traffic patterns or management of traffic flow thereover.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>F.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The Landlord has not filed for protection in bankruptcy and does not anticipate filing, in the foreseeable future, for protection under any law, statute, ordinance or regulation, including but not limited to the federal bankruptcy code.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>G.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>To the best of Landlord&#146;s knowledge, there is no stigma attached to the Demised Premises by reason of any criminal activity or any other matter which would impair or adversely the operation of the Demised Premises for the Proposed Use.</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">21</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top nowrap><FONT face="Times New Roman, Times, serif" size=2>H.&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>None of the representations of Landlord in this Lease contain any untrue statement of a material fact
or fail to state a material fact necessary in order to make any representation contained herein misleading
in light of the circumstances in which such representation is made;</FONT></TD></TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>I.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The representations made in this Section 41 are correct as of the Commencement Date and shall survive
the closing of the transaction contemplated herein.</FONT></TD></TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>J.</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>Within ten (10) calendar days after the Commencement Date, the Landlord will provide the Tenant with copies of all documents, reports, title insurance policies, surveys and analyses pertaining to or affecting the Demised Premises in Landlord&#146;s possession.</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>K.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>This Lease constitutes the legal, valid and binding obligation of the Landlord enforceable in accordance
with its terms; Landlord has full power and authority to enter into and perform the terms and conditions
of this Lease; Landlord has obtained all necessary approvals and consents to lease, let and demise
the Demised Premises as contemplated by this Lease.</FONT></TD></TR>
</TABLE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>For purposes of this Section 41, the term &#147;to the best of Landlord&#146;s knowledge&#148; shall mean the personal knowledge of Claude J. Yow and Frances M. Yow with a reasonable amount of investigation.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 42</U>. <U>Brokerage Commissions</U>.</FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, serif" size=2>A.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Landlord represents to Tenant that there are no real estate or brokerage commissions payable in connection with the transactions contemplated by this Lease to any party claiming through Landlord, or arising out of the actions of Landlord, other than the commission payable by Landlord to Townsend Collins of Collins, Sharp and Koella as provided by a separate agreement, and which Landlord shall be completely responsible for. Landlord shall indemnify and hold Tenant harmless from all costs, claims, damages, or liability of any kind in connection with the breach of this representation.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>B.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Tenant represents to Landlord that there are no real estate or brokerage commissions payable in connection with the transactions contemplated by this Lease to any party claiming through Tenant, or arising out of the actions of Tenant. Tenant shall indemnify and hold Landlord harmless from all costs, claims, damages, or liability of any kind in connection with the breach of this representation.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>C.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The representations and indemnities set forth in this Section 42 shall survive the expiration or the earlier termination of this Lease.</FONT></TD>
  </TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 43</U>. <U>Memorandum of Lease</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The parties agree that they shall execute a memorandum of lease which shall be recorded in the Register&#146;s
  Office for Knox County, Tennessee, as evidence of this Lease</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">22</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P><FONT face="Times New Roman, Times, Serif" size=2>and the options contained herein and which shall be substantially in the same form as set forth on <B>&#147;<U>Exhibit F</U>&#148;</B>. The Tenant shall be responsible for all costs and expenses associated with the preparation and recording of the same.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 44</U>. <U>Forum Selection Clause</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In the event litigation results from or regarding any portion of this Lease, the parties hereto agree that all matters shall be determined in the Chancery Court of Knox County, Tennessee or the Circuit Court for Knox County, Tennessee. The parties hereto hereby waive any and all objections or defenses as to jurisdiction or venue which they may have the right to assert with respect to any and all legal proceedings in these courts.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 45</U>. <U>Environmental Waste</U>.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>A.</font></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2><U>Landlord&#146;s Warranties and Representations</U>. Landlord represents and warrants that Landlord has not used or operated the Demised Premises in any manner for the storage, use, treatment, manufacture, or disposal of any Hazardous Materials, and to the best of Landlord&#146;s knowledge (as defined in Section 41) and belief, the Demised Premises have never been used or operated for the storage, use, treatment, manufacture, or disposal of any Hazardous Materials. Landlord hereby indemnifies and holds Tenant harmless from and against any loss, cost, damage or expense arising out of or relating to the presence of Hazardous Materials on the Demised Premises unless due to the act or omission of Tenant.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>B.</font></TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2><U>Tenant&#146;s Warranties and Representations</U>.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width=6% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width=3% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, serif" size=2>1)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>To the best of Tenant&#146;s knowledge, its use of the Demised Premises will not result in the disposal or other release of any Hazardous Materials on or to the Demised Premises in violation of any Environmental Law.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>2)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Tenant shall not allow any Hazardous Materials to be stored, located, discharged, possessed, managed, processed, or otherwise handled on the Demised Premises in violation of any Environmental Law.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>3)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>In the event the Tenant becomes aware of any violation (&#147;Violation&#148;) of any Environmental Law with respect to the Demised Premises, the Tenant shall promptly notify the Landlord. In the event and only in the event that the Violation was caused solely by Tenant, Tenant shall, at Tenant&#146;s own cost and expense, take all actions required by the Environmental Laws for the clean-up of the Demised Premises. Such cleanup shall be initiated within a reasonable amount of time, but not more than thirty (30) days after notice is given to Landlord. Cleanup shall include all removal, containment and remedial actions required by all Environmental Laws. Notwithstanding any other provision contained herein to the contrary, in no event shall Tenant be required to clean-up, remove, contain, remediate or pay any costs associated with any Hazardous Material or other environmental problem which was not introduced to the
Demised Premises by the Tenant.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>4)&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Tenant hereby indemnifies and holds Landlord harmless from and</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">23</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width="3%" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD width="3%" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>against any loss, cost, damage, or expense arising out of or relating to the presence of Hazardous
Materials on the Demised Premises due to the act or omission of Tenant.</FONT></TD></TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD></TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>5)</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>As used in this Section 45, the term &#147;to the best of Tenant&#146;s knowledge&#148; shall mean the personal knowledge of James F. Slattery without further investigation.</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>C.</font></TD>
  <TD colspan="2" vAlign=top><font face="Times New Roman, Times, serif" size=2><u>Survival of Warranties</u>.</font></TD>
  </TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>The warranties and representations contained in this Section 45 shall survive the termination or expiration of this Lease.</FONT></TD>
  </TR>
</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 46</U>. <U>Landlord&#146;s Covenants Against Liens</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Landlord covenants that it has not done or performed any act, nor has it omitted any act, which has caused or threatened to cause, any mechanic&#146;s lien or other lien, charge or order for the payment of money to be filed against Landlord, Tenant, or the interest of either Landlord or Tenant, in and to any portion of the Demised Premises. Landlord further covenants that, during the Base Term and any Option Periods of this Lease, it shall not commit any act or omission that will result in the same. In the event an act or omission of the Landlord causes or permits a lien to be filed against either the Landlord&#146;s or Tenant&#146;s interest in the Demised Premises, the Landlord shall take all such actions which are necessary to remove the same. Further, in such an event, the Landlord acknowledges and agrees that the Tenant shall have the absolute right, after providing notice to the Landlord, to pay
said lien and seek indemnification from the Landlord for all its costs and expenses, including but not limited to reasonable attorneys&#146; fees and court costs, expended in the same.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>If, because of any act or omission of Tenant, any mechanic&#146;s lien or other lien, charge or order
  for the payment of money, other than the Tenants rights to obtain financing under Section 47, shall
  be filed against Landlord or the interest of Landlord in and to any portion of the Demised Premises,
  Tenant shall, at its own cost and expense, cause the same to be discharged of record or bonded within
  thirty (30) days after written notice from Landlord to Tenant of the filing thereof, and Tenant shall
  indemnify and save Landlord harmless from and against all costs, liabilities, suits, penalties, claims
  and demands, including reasonable attorneys&#146; fees, resulting therefrom. <B><U>Notice is hereby given that all such liens shall relate and attach only to the interest of Tenant in
  the Demised Premises</U>.</B></FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 47</U>. <U>Leasehold Mortgages</U>.</FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>A.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding any other provision hereof to the contrary, Tenant shall have the right, from time
to time, to convey or encumber by mortgage, deed to secure debt, deed of trust, or similar financing
instrument, Tenant&#146;s leasehold estate and interest in and to the Demised Premises or any part
thereof (each such leasehold mortgage, deed to secure debt, deed of trust, or other financing instrument
being hereinafter referred to as a &#147;Leasehold Mortgage&#148; and the holder thereof as a &#147;Leasehold
Mortgagee&#148;) provided that the rights acquired under such mortgage shall</FONT></TD></TR></TABLE><P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">24</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>be subject to each and all of the covenants, conditions, and restrictions set forth in this Lease and
to all rights and interest of Landlord herein, none of which covenants, conditions or restrictions
is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this
Lease, except as expressly provided herein. The execution and delivery of a Leasehold Mortgage shall
not, in and of itself, be deemed to constitute an assignment or transfer of this Lease nor shall
the Leasehold Mortgagee, as such, be deemed an assignee or transferee of this Lease so as to require
such Leasehold Mortgagee to assume the performance of any of the covenants or agreements on the part
of Tenant to be performed hereunder. Tenant shall also have the right from time to time to obtain
financing by a &#147;sale and leaseback&#148; of Tenant&#146;s leasehold interest hereunder (i.e.,
an assignment of Tenant&#146;s leasehold estate under this Lease simultaneously with or subsequent
to the making of a sublease of all of the Demised Premises to Tenant). If Tenant shall enter into
any such financing arrangement, it shall deliver to Landlord true and complete copies of the instruments
effecting such transaction within thirty (30) days of their execution. Simultaneously with the delivery
to the Landlord of the aforesaid instruments effecting such transaction, Tenant shall also give Landlord
notice of the name and address of the party providing such financing.</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>B.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Tenant agrees that it shall not encumber its leasehold estate with more than two (2) Leasehold Mortgages
at one time without the prior, written consent of Landlord. With respect to any Leasehold Mortgagee
or other person providing financing as to which Landlord shall have been given notice in accordance
with the provisions of such subparagraph (a), the following shall apply, notwithstanding any other
provision of this Lease to the contrary:</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>1)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>No voluntary termination by Tenant of this Lease shall be effective unless consented to in writing by such Leasehold Mortgagee; and any material amendment or material modification of this Lease or the exercise by Tenant of any option to terminate this Lease, without the written consent of such Leasehold Mortgagee, shall be voidable as against such Leasehold Mortgagee at its option. If any Leasehold Mortgagee shall fail to respond to any written consent under this Section 47(b)(l) within thirty (30) days after the receipt by such Leasehold Mortgagee of such written request [which written request shall make specific reference to this Section 47(b)(l)], the Leasehold Mortgagee shall be deemed to have granted its consent to such request.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Landlord shall give any and all notices given to Tenant hereunder simultaneously to any such Leasehold Mortgagee at the address of such Leasehold Mortgagee provided to Landlord, and no such</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">25</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>notice shall be effective as to such Leasehold Mortgagee unless and until a copy thereof has been given
to such Leasehold Mortgagee. In the event Landlord sends Tenant notice of an Event of Default, from
and after the time that such notice has been delivered to such Leasehold Mortgagee, such Leasehold
Mortgagee shall have a period equal to the period granted to the Tenant plus, with respect to monetary
defaults, an additional five (5) business days in which to effect a cure, and with respect to non-monetary
defaults only, an additional ten (10) business days in which to affect a cure of any Event of Default
by Tenant under this Lease (provided, however, that if such cure is of a nature that it cannot be
effected within such a period of time, no Event of Default shall have been deemed to have occurred
hereunder as long as such Leasehold Mortgagee shall have commenced to cure such Event of Default
within such period and shall thereafter be taking diligent steps to effect the same). Landlord shall
accept performance of any and all of Tenant&#146;s obligations hereunder, including the obligations
to pay Rent, from any such Leasehold Mortgagee and the performance of such obligation by such Leasehold
Mortgagee shall be deemed to have been a cure effected by Tenant. Landlord hereby consents to the
entry into the Demised Premises by any such Leasehold Mortgagee for the purpose of effecting the
cure of any default by Tenant. In the event of an Event of Default by the Tenant hereunder, any Leasehold
Mortgagee may effect the cure of such Event of Default by foreclosing its Leasehold Mortgage, obtaining
possession of the Demised Premises and performing all of Tenant&#146;s obligations hereunder.</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>3)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything contained herein to the contrary, if it shall be necessary for any such Leasehold
Mortgagee to obtain possession of the Demised Premises to effect any such cure of an Event of Default
by Tenant under this Lease, then Landlord shall not commence any proceeding or action to terminate
this Lease if (i) such Leasehold Mortgagee shall have informed Landlord within the grace period applicable
to such Leasehold Mortgage that such Leasehold Mortgagee has taken steps to foreclose its Leasehold
Mortgage, or cancel its sublease or other financing arrangement, necessary to obtain possession of
the Demised Premises, (ii) the Rent shall be paid and all other provisions and requirements of this
Lease which are capable of being observed and performed without obtaining possession of the Demised
Premises are so observed and performed while any such foreclosure, other action or other remedy is
being prosecuted by any such Leasehold Mortgagee and for so long thereafter as such Leasehold Mortgagee
shall have obtained possession of the Demised Premises, and (iii) such</FONT></TD></TR></TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD width=3% vAlign=top>&nbsp;&nbsp;&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Leasehold Mortgagee shall be diligently prosecuting such foreclosure or cancellation and attempting to effect a cure of the Event of Default. Nothing herein contained shall be deemed to require the Leasehold Mortgagee to continue
with any foreclosure or other proceedings, or, in the event such Leasehold Mortgagee shall otherwise
acquire possession of the Demised Premises, to continue such possession, if the Event of Default
in respect to which Landlord shall have given the notice shall be remedied.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>4)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Landlord agrees that in the event of the termination of this Lease by reason of any Event of Default
by Tenant, and if Landlord has prior to such termination been given notice of the name and address
of such Leasehold Mortgagee, Landlord will enter into a new lease of the Demised Premises with any
Leasehold Mortgagee or its nominee for the remainder of the Base Term of this Lease, and any Option
Periods thereto, effective as of the date of such termination, at the Rent and upon the terms, options,
provisions, covenants and agreements as herein contained, provided:</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=6% vAlign=top><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a.&nbsp;&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Such Leasehold Mortgagee shall make written request upon Landlord for such new lease prior to or within ten (10) business days after the date of such termination and such written request is accompanied by (i) payment to Landlord of all sums then due to Landlord hereunder, (ii) a written, enforceable agreement by which Leasehold Mortgagee agrees to be bound by the terms, provisions and conditions hereof, in a form reasonably satisfactory to Landlord; and (iii) if Leasehold Mortgagee is not an individual, reasonable evidence of the authority of such Leasehold Mortgagee to assume this Lease; and</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Such Leasehold Mortgagee or its nominee shall pay to Landlord at the time of the execution and delivery of said new lease any and all sums which would at that time be due hereunder but for such termination, together with any expenses, including reasonable attorneys&#146; fees, incurred by Landlord as a result of such termination, as well as in the preparation, execution and delivery of such new lease.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>c.</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Such Leasehold Mortgagee or its nominee shall perform and observe all covenants herein contained to be performed on Tenant&#146;s part and shall further remedy any other conditions which Tenant, under the terminated Lease, was obligated to perform.</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
  <TD width=3% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The tenant under such new lease shall have the same right, title and interest in and to the buildings and improvements on the Demised Premises as Tenant had under the terminated
lease.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
  <TR>
    <TD width=6% vAlign=top></TD>
    <TD width=3% vAlign=top></TD>
    <TD width=3% vAlign=top>&nbsp;</TD>
    <TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>5)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>No Leasehold Mortgagee shall become liable under the agreements, terms, covenants or conditions of this Lease unless and until it becomes the owner of the leasehold estate. If Leasehold Mortgagee or its nominee shall so become the owner of the leasehold estate, then any assignment of the entire interest in this Lease by Leasehold Mortgagee or such nominee shall be subject to Section 14 of this Lease, except that the Leasehold Mortgagee or such nominee shall be relieved of any further liability which may accrue hereunder from and after the date of such assignment, provided that the assignee shall execute and deliver to Landlord a recordable instrument of assumption wherein such assignee shall assume and agree to perform and observe the covenants and conditions in this Lease contained on Tenant&#146;s part to be performed and observed; <U>provided however</U>, that the foregoing provision shall not apply (a) to
any subsequent assignments of the leasehold estate, or (b) if Tenant or an affiliate of Tenant is the Leasehold Mortgagee or its nominee.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
<TR>
  <TD width=6% vAlign=top></TD>
<TD width=3% vAlign=top></TD>
<TD width=3% vAlign=top>&nbsp;</TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>6)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>If at any time there shall be two or more Leasehold Mortgages constituting a lien on the Tenant&#146;s interest in this Lease and the leasehold estate hereby created, the holder of the Leasehold Mortgage recorded prior in time shall
be vested with the rights under Section 47(b)(4) of this Lease to the exclusion of the holder(s)
of the other Leasehold Mortgages; provided, however, that if the holder of a Leasehold Mortgage recorded
prior in time to any other Leasehold Mortgage shall fail or refuse to exercise the rights set forth
in this Lease, the holder of the other Leasehold Mortgage next in time shall have the right to exercise
such rights; provided, however, such other Leasehold Mortgagee shall be likewise required to fully
comply with all the terms and conditions hereof in exercising such rights. All of the provisions
contained in this Lease with respect to Leasehold Mortgages and the rights of Leasehold Mortgages
shall survive the termination of this Lease for such period of time as shall be necessary to effectuate
the rights granted to all Leasehold Mortgagees by the provisions of this Lease.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>7)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Nothing contained herein shall require any Leasehold Mortgagee or its nominee to cure any Event of Default by Tenant hereunder, unless Leasehold Mortgagee or its nominee enters into a new lease with Landlord as provided for under subsection 4 above.</FONT></TD>
  </TR>
</TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD width=6% vAlign=top nowrap><FONT color="#FFFFFF" size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD width=3% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>C.</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything contained in this Section 46 to the contrary, Landlord shall have the right
to approve or decline any new tenant which obtains possession or seeks to obtain possession of the
Demised Premises pursuant to this Section 46.</FONT></TD></TR>
</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 47</U>. <U>Use of Pronouns</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Whenever used in this Lease, as necessary to effectuate the purposes herein, the singular number shall include the plural, the plural shall include the singular, and the use of any gender shall be applicable to all genders.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 48</U>. <U>Use of Captions</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The captions used in this Agreement are for the purpose of convenience only and shall not be construed to limit the contents of the paragraphs contained therein.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 49</U>. <U>Multiple Counterparts</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Lease may be executed in multiple counterparts, the combination of which, shall constitute the entire Lease. Copies, facsimiles, or other duplications of the original signatures of the parties hereto shall constitute effective execution of this Agreement.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the parties hereto have executed this Lease on the day and year first above written.</FONT></p>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Landlord&#148;</B></FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Tenant&#148;</B></FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ Claude J. Yow&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U>Correctional Services Corporation</U></FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Claude J. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U> d/b/a Youth Services International</U></FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td width="35%" nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ Frances M. Yow&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
    <td width="20%" nowrap>&nbsp;</td>
    <td width="3%" nowrap><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp;&nbsp;</FONT></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Frances M. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James F. Slattery</FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap><font face="Times New Roman, Times, Serif" size=2>Its:</font></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
</table>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">29</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P align="center"><FONT face="Times New Roman, Times, Serif" size=2><b>EXHIBIT A<br>
</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Legal Description of Land)</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><b>EXHIBIT A-l<br>
</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Attach map showing Common Areas Cross-Hatched)</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">31</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><b>EXHIBIT B<br>
</b></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Rent Commencement Statement)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>RENT COMMENCEMENT STATEMENT</U></FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Rent Commencement Statement (&#147;Statement&#148;) is made this 28<sup>th</sup> day of Feb, 2003 by and between Claude J. Yow and wife, Frances M. Yow (hereinafter collectively referred to as the &#147;Landlord&#148;) and Correctional Services Corporation d.b.a. Youth Services International (hereinafter referred to as the &#147;Tenant&#148;).</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Landlord and Tenant previously entered into that certain Lease Agreement dated&nbsp;2/28/2003&nbsp;(hereinafter &#147;Lease&#148;), wherein the Landlord leased, let and demised and the Tenant hired, took, and leased certain real property from the Landlord as described in said Lease; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Landlord desires the Tenant to execute this Statement to confirm the date upon which Rent (as defined in the Lease) is due thereunder; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, the Parties, for and in consideration of the Demised Premises and other good and valuable consideration exchanged between them, the receipt and sufficiency of which is hereby acknowledged, hereby acknowledge as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Date of Lease Execution:</FONT></TD>
  <TD width="50%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>March 3, 2003</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Commencement Date of Lease: </FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>March 1, 2003</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Rent Commencement Date:</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>April 1,&nbsp;2003</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>  Initial Monthly Minimum
Rent:</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>$ 10,541.66 (except that the first month&#146;s rent shall be prorated as provided by the Lease) </FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Monthly Additional Rent:</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>$1,188.00 (except that the first month&#146;s Additional Rent shall be prorated as provided by the Lease)</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Security Deposit:</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>$10,541.66, which was delivered to Landlord on _____________________, 2003.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Possession Delivered to Tenant on:</FONT></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">________________________________________</font></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD colspan="4" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Additional Terms and Disclaimers:</FONT></TD>
  </TR>
<TR>
  <TD width="6%" vAlign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD width="3%" vAlign=top>&nbsp;</TD>
  <TD width="3%" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>(1)&nbsp;&nbsp;</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>In the event there is a conflict or disagreement in the language contained in the Lease and the language
contained in this Rent Commencement Statement, the language of the Lease shall control.</FONT></TD></TR></TABLE>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width=9% vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width=3% vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>(2)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>This document is for informational purposes only, and nothing contained herein shall be construed as modifying, changing, or adding additional terms to the Lease.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top nowrap><FONT face="Times New Roman, Times, Serif" size=2>(3)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;</FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Unless defined herein, all capitalized terms shall have the same meaning as designated in the Lease.</FONT></TD>
  </TR>
</TABLE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the parties have executed this Statement on the day and year first above written.</FONT></P>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Landlord&#148;</B></FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Tenant&#148;</B></FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ Claude J. Yow&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U>Correctional Services Corporation</U></FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Claude J. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U> d/b/a Youth Services International</U></FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td width="35%" nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ Frances M. Yow&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
    <td width="20%" nowrap>&nbsp;</td>
    <td width="3%" nowrap><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp;&nbsp;</FONT></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
  <tr>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Frances M. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James F. Slattery</FONT></td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap><font face="Times New Roman, Times, Serif" size=2>Its:</font></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
</table>
<P align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">33</FONT></P>

<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT C<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Extension Lease Statement)</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>EXTENSION LEASE STATEMENT</U></FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>This Extension Lease Statement made this ____________ day of ____________________, 2003 by and between:</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation, d/b/a Youth Services International, a corporation duly organized and operating under the laws of the state of Delaware and with offices for the conduct of business located at 1819 Main Street, Suite 1000, Sarasota, Florida 37236, its successors and assigns (hereinafter referred to as the &#147;Tenant&#148;), and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>Claude J. Yow and wife, Frances M. Yow, both of Knox County, Tennessee, their personal representatives, heirs, and assigns (hereinafter collectively referred to as the Landlord).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>WITNESSETH:</B></FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Landlord and Tenant entered into that Lease Agreement dated _____ (hereinafter &#147;Lease&#148;) wherein the Landlord leased, let and demised, and the Tenant rented, took, and hired, that certain real estate described in said Lease; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the term of the Lease was for an initial term of three (3) years (hereinafter the &#147;Base Term&#148;) commencing on ___________________; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Lease also provided that the Tenant would have two options, pursuant to the provisions contained in the Lease, to renew the Lease for up to two (2) additional periods of five (5) years each (each termed an &#147;Option&#148;); and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Tenant now desires to exercise its Option to renew the Lease; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, in consideration of the Demised Premises and other good and valuable consideration exchanged between the Parties, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>1. &nbsp;&nbsp;That the Tenant is in good standing under the Lease.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>2. &nbsp;&nbsp;The Tenant has given proper and timely notice to the Landlord of its right to exercise its Option under the Lease.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>3. &nbsp;&nbsp;The Tenant has the absolute right to exercise its Option under the Lease, provided the Tenant is in compliance with its obligations under the Lease.</FONT></P>
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<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>4. &nbsp;&nbsp;The Lease is hereby extended for an additional 5-year period beginning at the expiration of the Base Term of the Lease, or the Option, as applicable.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>5. &nbsp;&nbsp;Except as modified hereby, the Option exercised herein is subject to all the terms and provisions of the Lease, and all remaining terms and provisions of the Lease are hereby confirmed and ratified by the parties hereto.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the parties hereto have executed this Extension of Lease Statement on the day and year first above written.</FONT></p>

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    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Landlord&#148;</B></FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Tenant&#148;</B></FONT></td>
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    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
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    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U>Correctional Services Corporation</U></FONT></td>
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    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Claude J. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="Times New Roman, Times, Serif" size=2><U> d/b/a Youth Services International</U></FONT></td>
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    <td width="35%" nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
    <td width="20%" nowrap>&nbsp;</td>
    <td width="3%" nowrap><FONT face="Times New Roman, Times, Serif" size=2>By:&nbsp;&nbsp;</FONT></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
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    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>Frances M. Yow</FONT></td>
    <td nowrap>&nbsp;</td>
    <td nowrap>&nbsp;</td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James F. Slattery</FONT></td>
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    <td nowrap><font face="Times New Roman, Times, Serif" size=2>Its:</font></td>
    <td nowrap><FONT face="Times New Roman, Times, Serif" size=2> <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
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<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">35</FONT></p>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>EXHIBIT D<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Subordination, Non-Disturbance and Attornment Agreement)</FONT></P>
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<TD width=45% vAlign=top><font face="Times New Roman, Times, Serif" size=2>This Instrument Prepared By:&nbsp;</font></TD>
<TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>Jason T. Murphy, Attorney <br>
  Frantz, McConnell &amp; Seymour, LLP <br>
  P.O. Box 39 <br>
  Knoxville, TN 37901</font></TD>
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<p align="center"><FONT face="Times New Roman, Times, Serif" size=2><b>SUBORDINATION, NONDISTURBANCE, AND <br>
ATTORNMENT AGREEMENT</b></FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>THIS SUBORDINATION, NONDISTURBANCE, AND ATTORNMENT AGREEMENT (&#147;this Agreement&#148;) is made this _____ day of __________________________, 200_ (the &#147;Effective Date&#148;), by and between <br>
  <br>
__________________________________, a________________________________, whose address is ______________________________________________________, its successors and assigns (hereinafter referred to as the &#147;Mortgagee&#148;), and</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation, d/b/a Youth Services International, a corporation duly organized and operating under the laws of the state of Delaware and with offices for the conduct of business located at 1819 Main Street, Suite 1000, Sarasota, Florida 37236, its successors and assigns (hereinafter referred to as the &#147;Tenant&#148;).</FONT></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><b>WITNESSETH:</b></FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Claude J. Yow and wife, Frances M. Yow (together with their personal representatives, heirs and assigns are hereinafter collectively referred to as the &#147;Landlord&#148;), owns the land described in <B>&#147;<U>Exhibit&nbsp;</U></B><U><b>A</b></U>&#148; to this Agreement (such land, together with all improvements thereon, and all easements, rights, and ways appurtenant thereto or in anywise belonging and all of Landlord&#146;s right, title, and interest in all public ways adjoining the same is collectively called the &#147;Demised Premises&#148;). The improvements on such land are commonly known as the &#147;VIP Building&#148; located at 6628 Central Avenue Pike, Knoxville, Tennessee 37912; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Mortgagee has made a loan to Landlord in the original principal amount of _______________________________ Dollars ($_______________) (hereinafter the &#147;Loan&#148;); and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, to secure the Loan, Landlord has encumbered the Landlord&#146;s Premises by entering into that certain _________________________________________ dated __________________, 200_, in favor of Mortgagee (as amended, increased, renewed, extended, spread, consolidated, severed, restated, or otherwise changed from time to time, the &#147;Mortgage&#148;) [to be] recorded [on _________________________, 200_, as Instrument No. __________________________ among the land records of the Register&#146;s Office for Knox County, Tennessee (the &#147;Register&#146;s Office&#148;); and</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36</FONT></p>
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<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Landlord, as lessor, and Tenant, as lessee, entered into that Lease Agreement dated as of ___________________ (together with all amendments, modifications, and supplements thereto, the &#147;Lease&#148;), for the demise of a portion of the Landlord&#146;s Premises to Tenant (the &#147;Tenant&#146;s Premises&#148;). The Tenant&#146;s Premises are commonly known as the &#147;VIP Building&#148; at 6628 Central Avenue Pike, Knoxville, Tennessee 37912.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, a Memorandum of Lease [is to be recorded in the Register&#146;s Office prior to the recording of this Agreement.] [was recorded [on ____________________________, 200_, as Instrument No. ___________________________ in the Register&#146;s Office]; and</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Mortgagee and Tenant desire to agree upon the relative priorities of their interests in the Landlord&#146;s Premises and their rights and obligations if certain events occur.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Landlord, as borrower of the Loan and lessor under the Lease, joins in executing and delivering this Agreement solely to give its consent and agreement to this Agreement; and</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>NOW THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged by the parties, Mortgagee and Tenant agree as follows:</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 1</U>. <U>Definitions</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>For purposes of this Agreement, the following terms shall have the meanings set forth in this Section 1:</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;<U>Construction-Related Obligation</U>. A &#147;Construction-Related Obligation&#148; means any obligation of Landlord under the Lease to make, pay for, or reimburse Tenant for any alterations, demolition, or other improvements or work at the Landlord&#146;s Premises, including the Tenant&#146;s Premises. &#147;Construction-Related Obligations&#148; shall not include:
  (a) reconstruction or repair following fire, casualty, or condemnation; or (b) day-to-day maintenance and repairs.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;<U>Event of Foreclosure</U>. An &#147;Event of Foreclosure&#148; means: (a) foreclosure under the Mortgage; (b) any other exercise by Mortgagee of rights and remedies (whether under the Mortgage or under applicable law, including bankruptcy law) as holder of the Loan or of the Mortgage, as a result of which any party other than Landlord succeeds Landlord as owner of the Landlord&#146;s Premises; or (c) delivery by Landlord to Mortgagee (or Mortgagee&#146;s designee or nominee) of a deed or other conveyance of Landlord&#146;s interest in the Landlord&#146;s Premises in lieu of foreclosure or such exercise of Mortgagee&#146;s rights and remedies.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>C. &nbsp;&nbsp;&nbsp;<U>Former Landlord</U>. A &#147;Former Landlord&#148; means Landlord and any other party that was landlord under the Lease at any time before the occurrence of any Event of Foreclosure.</FONT></p>
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<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>D. &nbsp;&nbsp;&nbsp;<U>Offset Right</U>. An &#147;Offset Right&#148; means any right or alleged right of Tenant to any offset, defense (other than one arising from actual payment and performance, which payment and performance would bind a Successor Landlord as provided by this Agreement), claim, counterclaim, reduction, deduction, or abatement against Tenant&#146;s payment of Rent or performance of Tenant&#146;s other obligations under the Lease, arising (whether under the Lease or applicable law) from Landlord&#146;s breach or default under the Lease.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>E. &nbsp;&nbsp;&nbsp;<U>Rent</U>. The &#147;Rent&#148; means any minimum rent, base rent, or additional rent under the Lease.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>F. &nbsp;&nbsp;&nbsp;<U>Successor Landlord</U>. A &#147;Successor Landlord&#148; means any party that becomes owner of the Landlord&#146;s Premises as the result of an Event of Foreclosure. &#147;Successor Landlord&#148; shall not mean any successor or assignee of Landlord that becomes the owner of the Landlord&#146;s Premises other than as the result of an Event of Foreclosure.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>G. &nbsp;&nbsp;&nbsp;<U>Termination Right</U>. A &#147;Termination Right&#148; means any right of Tenant to cancel or terminate the Lease or to claim a partial or total eviction arising (whether under the Lease or under applicable law) from Landlord&#146;s breach or default under the Lease.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 2</U>. <U>Subordination</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The Lease shall be, and shall at all times remain, subject and subordinate to the Mortgage, the lien imposed by the Mortgage, and all advances made under the Mortgage.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Section 3</U>. <U>Nondisturbance, Recognition, and Attornment</U>.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;<U>No Exercise of Lease Remedies Against Tenant</U>. So long as the Lease has not been terminated on account of Tenant&#146;s default that has continued beyond any applicable cure period under the Lease (an &#147;Event of Default&#148;), Mortgagee shall not name or join Tenant as a defendant in any exercise of Mortgagee&#146;s rights and remedies upon a default under the Mortgage unless applicable law requires Tenant to be made a party thereto as a condition to proceeding against Landlord or prosecuting such rights and remedies. In the latter case, Mortgagee may join Tenant as defendant in such action only for such purpose and not to terminate the Lease or otherwise adversely affect Tenant&#146;s rights under the Lease or this Agreement in such action.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;<U>Nondisturbance and Attornment</U>. If the Lease has not been terminated as a result of an Event of Default by Tenant, then, upon the occurrence of an Event of Foreclosure:</FONT></P>
<P style="text-indent:45pt "><FONT face="Times New Roman, Times, Serif" size=2>(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Successor Landlord shall not terminate or disturb Tenant&#146;s possession
    of the Tenant&#146;s Premises under the Lease, except in accordance with the terms of the
Lease and this Agreement;</FONT></P>
<P style="text-indent:45pt"><FONT face="Times New Roman, Times, Serif" size=2>(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Successor Landlord shall be bound to Tenant under all the terms and
  conditions of the Lease, except as otherwise provided by this Agreement;</FONT></P>
<P style="text-indent:45pt "><FONT face="Times New Roman, Times, Serif" size=2>(3) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall recognize and attorn to the Successor Landlord as Tenant&#146;s direct lessor under the Lease as modified by this Agreement; and</FONT></P>
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<p style="text-indent:45pt "><FONT face="Times New Roman, Times, Serif" size=2>(4) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Lease shall continue in full force and effect as a direct lease, in accordance with its terms, except as otherwise provided by this Agreement, between the Successor Landlord and Tenant.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>C. &nbsp;&nbsp;&nbsp;<U>Further Documentation</U>. The provisions of this Section 3 shall be effective and self-operative without any need for the Successor Landlord or Tenant to execute any further documents. Tenant and the Successor Landlord shall, however, confirm the provisions of this Section 3 in writing upon request by either of them.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 4</U>. <U>Protection of Successor Landlord</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The Successor Landlord shall not be liable for or bound by any of the following matters:</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;<U>Claims Against Successor Landlord</U>. Any Offset Right that Tenant may have against any Former Landlord relating to any event or occurrence before the date of an Event of Foreclosure, including any claim for damages of any kind whatsoever as the result of any breach by a Former Landlord that occurred before the date of such Event of Foreclosure. The foregoing shall not limit either (a) Tenant&#146;s right to exercise against a Successor Landlord any Offset Right otherwise available to Tenant because of events occurring after the date of the Event of Foreclosure; or (b) the Successor Landlord&#146;s obligation to correct any conditions that existed as of the date of the Event of Foreclosure and which violate the Successor Landlord&#146;s obligations as landlord under the Lease.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;<U>Prepayments</U>. Any payment of Rent that Tenant may have made to a Former Landlord more than thirty (30) days before the date such Rent was first due and payable under the Lease with respect to any period before the date of an Event of Foreclosure.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>C. &nbsp;&nbsp;&nbsp;<U>Payment; Security Deposit</U>. Any obligation (a) to pay Tenant any sum that any Former Landlord owed to Tenant; or (b) with respect to any security deposited with a Former Landlord, unless such security was actually delivered to the Successor Landlord. This paragraph is not intended to apply to a Successor Landlord&#146;s obligation to make any payment that constitutes a &#147;Construction-Related Obligation.&#148;</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>D. &nbsp;&nbsp;&nbsp;<U>Modification, Amendment or Waiver</U>. Any modification or amendment of the Lease, or any waiver of any terms of the Lease, made without Mortgagee&#146;s written consent.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>E. &nbsp;&nbsp;&nbsp;<U>Surrender, Etc</U>. Any consensual or negotiated surrender, cancellation, or termination of the Lease, in whole or in part, agreed upon between Landlord and Tenant, unless effected unilaterally by Tenant pursuant to the express terms of the Lease.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 5</U>. <U>Exculpation of Successor Landlord</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Upon the occurrence of any Event of Foreclosure, the Lease shall be deemed to have been automatically
  amended to provide that the Successor Landlord&#146;s obligations and liability under the Lease shall
  never extend beyond the Successor Landlord&#146;s interest (or the interest of its successors or
  assigns), if any, in the Landlord&#146;s Premises from time to time, including insurance and condemnation
  proceeds, the Successor Landlord&#146;s interest</FONT></p>
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<p><FONT face="Times New Roman, Times, Serif" size=2>in the Lease, and the proceeds from any sale or other disposition of the Landlord&#146;s Premises by the Successor Landlord (collectively, the &#147;Successor Landlord&#146;s Interest&#148;). Tenant shall look exclusively to the Successor Landlord&#146;s Interest (or that of its successors and assigns) for payment or discharge of any obligations of the Successor Landlord under the Lease as modified by this Agreement. If Tenant obtains any money judgment against the Successor Landlord with respect to the Lease or the relationship between the Successor Landlord and Tenant, then Tenant shall look solely to the Successor Landlord&#146;s Interest (or that of its successors or assigns) to collect such judgment. Tenant shall not collect or attempt to collect any such judgment out of any other assets of the Successor Landlord.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 6</U>. <U>Mortgagee&#146;s Right to Cure</U>.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;<U>Notice to Mortgagee</U>. Before exercising any Termination Right or Offset Right, Tenant shall provide Mortgagee with notice of the breach or default by Landlord or the Successor Landlord under the Lease giving rise to such Termination Right or Offset Right (the &#147;Mortgagee&#146;s Default Notice&#148;) and, thereafter, the opportunity to cure such breach or default as provided by this Section 6.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;<U>Mortgagee&#146;s Cure Period</U>. After Mortgagee receives a Mortgagee&#146;s Default Notice, Mortgagee shall have a period of thirty (30) days beyond the time available to Landlord or the Successor Landlord under the Lease in which to cure the breach or default by Landlord or the Successor Landlord. Mortgagee shall have no obligation to cure (and shall have no liability or obligation for not curing) any breach or default by Landlord or the Successor Landlord, except to the extent that Mortgagee agrees or undertakes otherwise in writing.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>C. &nbsp;&nbsp;&nbsp;<U>Extended Cure Period.</U> In addition, as to any breach or default by Landlord or the Successor Landlord under the Lease, the cure of which requires possession and control of the Premises, provided only that Mortgagee undertakes, by written notice to Tenant within thirty (30) days after receipt of the Mortgagee&#146;s Default Notice, to exercise reasonable efforts to cure or cause to be cured by a receiver such breach or default within the period permitted by this Section 6(C), Mortgagee&#146;s cure period shall continue for such additional time as Mortgagee may reasonably require either to (a) obtain possession and control of the Premises and thereafter cure the breach or default with reasonable diligence and continuity; or to (b) obtain the appointment of a receiver and give such receiver a reasonable period of time in which to cure the breach or default.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2><U>Section 7</U>. <U>Miscellaneous</U>.</FONT></p>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>A. &nbsp;&nbsp;&nbsp;<U>Notices</U>. All notices or other communications required or permitted under this Agreement shall be in writing
and given by certified mail (return receipt requested) or by nationally recognized overnight courier
service that regularly maintains records of items delivered. Each party&#146;s address is as set
forth in the opening paragraph of this Agreement, subject to change by notice given as provided by
this Section 7(A). Notices shall be effective the next business day after being sent by overnight
courier service, and five (5) business days after being sent by certified mail (return receipt requested).</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40</FONT></p>
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<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>B. &nbsp;&nbsp;&nbsp;<U>Due Authorization</U>.</FONT></p>
<p style="text-indent:52pt "><FONT face="Times New Roman, Times, Serif" size=2>(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgagee has full authority to enter into this Agreement, and has duly authorized its execution and delivery of this Agreement by all actions required by Mortgagee&#146;s organizational documents.</FONT></p>
<p style="text-indent:52pt "><FONT face="Times New Roman, Times, Serif" size=2>(2) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant has full authority to enter into this Agreement, and has duly authorized its execution and delivery of this Agreement by all actions required by Tenant&#146;s organizational documents.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>C. &nbsp;&nbsp;&nbsp;<U>Successors and Assigns</U>. This Agreement shall bind and benefit the parties, their successors and assigns, any Successor Landlord, and its successors and assigns. If Mortgagee assigns the Mortgage, then upon delivery to Tenant of written notice thereof accompanied by the assignee&#146;s written assumption of all obligations under this Agreement, all liability of the assignor shall terminate.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>D. &nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. This Agreement constitutes the entire agreement between Mortgagee and Tenant regarding the subordination of the Lease to the Mortgage and the rights and obligations of Tenant and Mortgagee as to the subject matter of this Agreement.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>E. &nbsp;&nbsp;&nbsp;<U>Interaction with Lease and with Mortgage</U>. If this Agreement conflicts with the Lease, then this Agreement shall govern as among the parties and any Successor Landlord, including upon any Event of Foreclosure. This Agreement supersedes, and upon execution and delivery shall constitute full compliance with, any provisions in the Lease that provide for subordination of the Lease to, or for delivery of nondisturbance agreements by the holder of, the Mortgage. Mortgagee confirms that Mortgagee has consented to Landlord&#146;s entering into the Lease.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>F. &nbsp;&nbsp;&nbsp;<U>Mortgagee&#146;s Rights and Obligations</U>. Except as expressly provided in this Agreement, Mortgagee shall have no obligations to Tenant with respect to the Lease.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>G. &nbsp;&nbsp;&nbsp;<U>Amendments</U>. This Agreement may be amended, discharged, or terminated, or any of its provisions waived, only by a written instrument executed by the party to be bound.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>H.&nbsp;&nbsp;&nbsp; <U>Counterparts</U>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, serif" size=2>I.&nbsp;&nbsp;&nbsp; <U>Governing Law</U>. This Agreement shall be governed by the laws of the state of Tennessee.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>J.&nbsp;&nbsp;&nbsp; <U>Consent of Landlord.</U> The Landlord, as landlord under the Lease and borrower under the Mortgage, consents and agrees to
  this Agreement. Landlord is not a party to this Agreement, and joins in executing and delivering
  this Agreement solely to give its consent and agreement hereto.</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">41</FONT></p>
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    <td width="12%" nowrap>&nbsp;</td>
    <td width="30%" nowrap><font size="2" face="Times New Roman, Times, serif">___________________________________</font></td>
    <td width="20%" nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="30%" nowrap><font size="2" face="Times New Roman, Times, serif">___________________________________</font></td>
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    <td nowrap>&nbsp;</td>
    <td nowrap><font face="Times New Roman, Times, serif" size=2>Claude J. Yow</font></td>
    <td nowrap><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td nowrap><font face="Times New Roman, Times, serif" size=2>Frances M. Yow</font></td>
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<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the parties have duly executed this Agreement under seal on the Effective Date.</FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><b>(See</b> <B>&#147;Attached Signature Pages&#148;)</B></FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">42</FONT></p>
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<p align="center"><FONT face="Times New Roman, Times, Serif" size=2><B><U>&#147;Attached Signature Page&#148;</U></B></FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>
  <B>&#147;Mortgagee&#148;</B></FONT></p>
<p><font size="2" face="Times New Roman, Times, Serif">_______________________________________</font></p>
<p><font size="2" face="Times New Roman, Times, Serif"> By: ____________________________________ </font></p>
<p><font size="2" face="Times New Roman, Times, Serif"> Its: ____________________________________ </font></p>
<p>&nbsp;</p>
<p><FONT face="Times New Roman, Times, Serif" size=2>STATE OF ______________________________ &nbsp;&nbsp;)<br>
  COUNTY OF ____________________________&nbsp; &nbsp;) ss.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Before me, the undersigned authority, a Notary Public in and for said County and State aforesaid, personally appeared _____________________________________ with whom I am personally acquainted, or proved to me on the basis of satisfactory evidence, and who, upon oath acknowledged herself/himself to be the______________________________________, of the_________________________________________, the within named bargainor, a corporation, and that he/she as such ___________________________________________ being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing
the name of the corporation by himself/herself as ___________________________________________.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Witness my hand and official seal at office, this _____________ day of _______________________ A.D. 200___.</FONT></p>
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    <td width="30%" align="center" nowrap><font size="2" face="Times New Roman, Times, serif">______________________________</font></td>
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    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" nowrap><FONT face="Times New Roman, Times, serif" size=2>Notary Public</FONT></td>
  </tr>
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<P><FONT face="Times New Roman, Times, Serif" size=2>My Commission expires: __________________________ </FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">43</FONT></p>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&#147;Attached Signature Page&#148;</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>&#147;Tenant&#148;</B></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U>Correctional Services Corporation <br>
d/b/a Youth Services International</U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>By: <u>/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; James F. Slattery</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Its: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></P>
<P>&nbsp;</P>
<P><FONT face="Times New Roman, Times, serif" size=2>Witness: _________________________</FONT> </P>
<P><FONT face="Times New Roman, Times, serif" size=2>Witness: _________________________</FONT> </P>
<P><font size="2" face="Times New Roman, Times, serif">STATE OF&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Florida&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) <br>
COUNTY OF &nbsp;&nbsp;&nbsp;Sarasota&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)&nbsp;&nbsp;ss.</font></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Before me, the undersigned authority, a Notary Public in and for said County and State aforesaid, personally appeared, James F. Slattery, with whom I am personally acquainted, or proved to me on the basis of satisfactory evidence, and who, upon oath acknowledged himself to be the ___________________________________ , of the Correctional Services Corporation d/b/a Youth Services International, the within named bargainor, a corporation, and that he as such ______________________________________ being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as __________________________________________.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Witness my hand and official seal at office, this 26 day of Feb A.D.2003.</FONT></P>
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    <td width="20%" align="center" nowrap><font face="Times New Roman, Times, Serif" size=2><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Elizabeth Hall&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
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    <td>&nbsp;</td>
    <td align="center" nowrap><FONT face="Times New Roman, Times, Serif" size=2>Notary Public</FONT></td>
  </tr>
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<P ><FONT face="Times New Roman, Times, Serif" size=2>My Commission expires: 12/18/03</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">44</FONT></p>
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<TYPE>EX-10
<SEQUENCE>12
<FILENAME>ex10-86.htm
<DESCRIPTION>EXHIBIT 10.86
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<P align=right><FONT size=2><b>Exhibit 10.86</b></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3><U><b><br>
LEASE AGREEMENT<br>
<br>
<br>
</b></U></FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>BETWEEN</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>FRIO COUNTY,</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>LESSOR</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>AND</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>CORRECTIONAL SERVICES CORPORATION</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=3>LESSEE</FONT></P>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THIS LEASE AGREEMENT (<U>Lease</U>) is made and entered into pursuant to Subchapter F of Chapter 351 of the Texas Local Government Code,
as amended, dated to be effective as of November 26, 1997 (the <U>&#147;Effective Date</U>&#148;), between Frio County, a political subdivision of the State of Texas (&#147;FRIO&#148;) (<U>Lessor</U>), having an office at 500 East San Antonio Street, Box 7, Pearsall, Texas 78061 and Correctional Services
Corporation (&#147;CSC&#148;) (<U>Lessee</U>), a Delaware corporation, having an address at 1819 Main Street, Suite 1000, Sarasota, Florida 34236.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>. As used in this Lease the following terms have the meanings set forth below:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Bankruptcy Code</U> &nbsp;means Title 11 of the United States Code or any other Federal or state bankruptcy, insolvency
or similar law, now or hereafter in effect in the United States.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Business Day</U> &nbsp;means any day except Saturday, Sunday and any days on which banks in the State of Texas shall
be closed.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Environmental Laws</U> &nbsp;means and includes but shall not be limited to the Resource Conservation and Recovery Act (42
U.S.C. &#167;6901 <U>et seq</U>.), as amended by the Hazardous and Solid Waste Amendments of 1984, the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. &#167;9601 <U>et seq</U>.), as amended by the Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials
Transportation Act (49 U.S.C. &#167;1801 <U>et seq</U>.), the Toxic Substances Control Act (15 U.S.C. &#167;2601 <U>et seq</U>.), Clean Air Act (42 U.S.C. &#167;9402 <U>et seq</U>.), the Clean Water Act (33 U.S.C. &#167;1251 <U>et seq</U>.) the Federal Insecticide, Fungicide and Rodenticide
Act (7 U.S.C. &#167;136 <U>et seq</U>.), the Resource Conservation and Recovery Act of 1976 (42 U.S.C. &#167;690 <U>et seq</U>.) and the Occupational Safety and Health Act (29 U.S.C. &#167;651 <U>et seq.</U>) (collectively <U>CERCLA</U>) and all applicable federal, state and local environmental laws, including obligations under the common
law, ordinances, rules, regulations, private agreements (such as covenants, conditions and restrictions)
as any of the foregoing may have been or may be from time to time amended, supplemented or supplanted,
and any other federal, state or local laws, including obligations under the common law, ordinances,
rules, regulations, private agreements (such as covenants, conditions and restrictions) now or hereafter
existing relating to regulation or control of Hazardous Substances or environmental health and safety.
As used herein, &#147;private agreements&#148; shall not include any private agreements entered into
by Lessee that purport to be binding upon either Lessor or the Premises unless Lessor has expressly
consented thereto in writing prior to Lessee&#146;s entering into the same.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Governmental Requirements means any law, statute, ordinance, order, rule, regulation or determination
of any federal, state, county, municipal, local or other governmental or quasi-governmental authority
having jurisdiction over Lessor, Lessee, the Premises, the Sheriff&#146;s Offices or any activities
or operations engaged in at the Premises by any Person at any time.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Hazardous Substances</U> &nbsp;means (i) those substances included within the definitions of or identified as &#147;hazardous
substances&#148;, &#147;hazardous materials&#148;, or &#147;toxic substances&#148; in or pursuant
to, without limitation, CERCLA and in the regulations promulgated pursuant to said laws, all as amended;
(ii) those substances listed in the United States</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-2-</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Department of Transportation Table (40 CFR 172.101 and amendments thereto) or by the Environmental
Protection Agency (or any successor agency) as hazardous substances (40 CFR Part 302 and amendments
thereto); (iii) any material, waste or substance which is or contains (A) petroleum, including crude
oil or any fraction thereof, natural gas, or synthetic gas usable for fuel or any mixture thereof,
(B) asbestos, (C) polychlorinated biphenyls, (D) designated as &#147;hazardous substance&#148; pursuant
to Section 311 of the Clean Water Act, 33 U.S.C. &#167; 1251 <U>et seq</U>., (33 U.S.C. &#167; 1321) or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C. &#167;
1317); (E) flammable explosives; (F) radioactive materials; and (iv) such other substances, materials
and wastes which are or become regulated as hazardous, toxic or &#147;special wastes&#148; under
applicable local, state or federal law, or the United States government, or which are classified
as hazardous, toxic or as &#147;special wastes&#148; under federal, state or local laws or regulations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Lessee Entity</U> &nbsp;means Lessee or any corporation or partnership more than fifty percent of the voting power or
partnership interests or membership interests of which are owned directly or indirectly by Lessee
or one or more of its shareholders or members who in the aggregate hold more than fifty percent of
the voting power of Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Lessor&#146;s Inmates</U> &nbsp;means inmates the Lessor has responsibility to confine as part of its governmental obligations.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Lessor&#146;s actual knowledge</U> &nbsp;or any other reference to the knowledge of Lessor shall mean only those facts that are within
the current actual knowledge of Lessor&#146;s Commissioners Court or the Sheriff, no independent
investigation or inquiry having been undertaken by or required of any such persons.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Person</U> &nbsp;means any individual, corporation, partnership, joint venture, association, joint stock company,
trust, trustee of a trust, unincorporated organization or government or governmental authority, agency
or political subdivision thereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Qualified Assignee</U> &nbsp;means a person or entity (a) with, at the time of an assignment of this Lease to such person
or entity, a net worth of at least Ten Million Dollars as of the end of its most recent fiscal year
as certified by a public accountant; (b) which has been in existence and doing business for not less than three years; and (c) has experience operating detention facilities similar to the Facility.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Renter&#146;s Price Index</U> &nbsp;shall mean that component of the Consumer Price Index as reported by the United States government.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Demise: Condition</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessor hereby agrees to lease
to Lessee, and Lessee hereby agrees to lease from Lessor, subject to the terms and conditions hereof
and all matters of record with respect to the Premises (hereinafter defined) in Frio County, Texas,
(i) the parcel of land (the <U>Land</U>) described in Exhibit B attached hereto, (ii) the facility on the Land currently known as the Frio
County Detention Facilities as depicted on Exhibit A (the <U>Facility</U>), buildings and improvements now or hereafter existing on the Land and fixtures appurtenant thereto
(collectively the <U>Improvements</U>) and (iii) all easements,</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-3-</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>rights and appurtenances thereto (the Land, Improvements and all such easements, rights and appurtenances
collectively, the <U>Premises</U>) save and except that space described as the Sheriff&#146;s office on Exhibit B hereto and all easements,
rights and appurtenances thereto, including, without limitation, the right to utilize common spaces
on the Premises, such as access hallways, booking areas, and parking spaces (the &#147;Sheriff&#146;s Offices&#148;).
As the attached survey indicates, a certain portion of the recreation yard as well as that portion
of the Facility currently utilized for administrative space is not under possession of Lessor and
is not a part of the Premises.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Lessee has examined the Premises and Lessor&#146;s interest in and title to the Premises, and has
found the same to be satisfactory for all purposes. Lessee&#146;s taking possession of the Premises
shall constitute conclusive evidence for all purposes of Lessee&#146;s acceptance of the Premises
in a state and condition satisfactory, acceptable and suitable for Lessee&#146;s use pursuant to
this Lease. LESSEE ACCEPTS THE PREMISES AS IS, WHERE IS, AND WITH ALL FAULTS, AND WITHOUT ANY WARRANTIES
OR REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE PREMISES&#146; CONDITION, SUITABILITY OR FITNESS
FOR ANY PURPOSE OR THE PREMISES&#146; COMPLIANCE WITH ANY GOVERNMENTAL REQUIREMENTS.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Lessor warrants and represents that once the obligations noted in Section 37 of this Lease are extinguished
by the Purchase of the Premises, it will have the unilateral right to lease the Land, Facility, Improvements
and Premises to Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Lessee has the unilateral right at any time to make alterations, additions or improvements to the
Premises, including the unilateral right to expand the bed capacity of all buildings without Lessor&#146;s
consent (the <U>Expansion</U>). All Expansions shall be performed in a good and workmanlike manner in compliance with all applicable
Governmental Requirements. Upon completion of all Expansions, a full set of as-built plans covering
such Expansion shall promptly be delivered to Lessor. All Expansions shall become part of the Premises
and shall be surrendered along with the Premises upon the expiration or termination hereof. In no
event shall the aggregate of all Expansions exceed beds more than exist as of the date hereof.</FONT></P>
<font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><u>Term</u>.</font>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Subject to the provisions hereof, Lessee shall hold the Premises for a term (the <U>Term</U>) which shall begin on the date that all outstanding debt of Lessor relating to the Premises is discharged
and title to the Premises has been conveyed to Lessor and end at midnight on December 1, 2009, unless
sooner terminated or extended as expressly provided herein.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Lessee shall vacate the Premises upon the expiration of the Lease Term or earlier termination of this
Lease. Lessee shall reimburse Lessor for and indemnify Lessor against all damages incurred by Lessor
as a result of any delay by Lessee in vacating the Premises. If Lessee does not vacate the Premises
upon the expiration of the Lease Term or earlier termination of the Lease, Lessee&#146;s occupancy
of the Premises shall be a &#147;month to month&#148; tenancy, subject to all of the terms of this
Lease, and Lessee shall pay to Lessor, as Additional Rent hereunder (which shall be in addition to,
and not in lieu of, all other Basic Rent, Additional Rent and other sums payable from Lessee to Lessor
hereunder) holdover rental in the amount of $50,000.00 per month,</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-4-</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>payable in advance on or before the first day of each month or fraction thereof that Lessee remains
in occupancy of the Premises after the expiration or earlier termination hereof.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>This Lease may be extended for
one (1) additional five (5) year term upon mutual agreement of the parties.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Rent and Other Consideration</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Effective Date, Lessee shall pre-pay one hundred forty-four (144) months [twelve (12) years]
  of rent equaling $4,500,000 (<U>Basic Rent</U>) for the Premises to Lessor.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>During the Term of the Lease, Lessor shall be entitled to 30 beds for Lessor&#146;s Inmates in the
Premises at no cost to Lessor. It is agreed that Lessor&#146;s Inmates will be confined to the extent
of its capacity in the Sanders Facility on the Premises.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>For beds in excess of such 30 free beds, up to a total of 40 beds (including the 30 free beds), Lessor
shall pay $28 per day per bed for each bed used by Lessor during the first 12 months of the Term.
Thereafter, Lessor shall pay $28 per bed per day plus the increase as determined by the Renter&#146;s
Price Index.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>For all other beds beyond forty (40), Lessor shall be entitled to additional beds in the Premises
to house Lessor&#146;s own Inmates by paying the prevailing market rate as established by Lessee
as it pertains to non-Frio County inmates housed in the Facility.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>To the extent permitted by law, Lessee shall provide telephone service at the Facility. Lessee shall
remit to Lessor: 1) 50% of all monthly telephone revenue received by Lessee for phone services used
by inmates at the Premises plus; 2) 50% of the monthly value of all per diem increases in the rates
charged for housing inmates (above $39.75 for out-of-state inmates, and above $35.25 for all other
non-Lessor inmates). In no event shall the aggregate amount received by the Lessor pursuant to subsections
1) and 2) exceed the sum of $1 times the number of non-Lessor Inmates times the number of days of
incarceration.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Upon any expansion of at least 25 beds, in lieu of the monies set forth in subparagraph (e), Lessor shall receive $1 for each non-Lessor Inmate per day.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All amounts which Lessee is required to pay or discharge pursuant to this Lease in addition to Basic Rent shall constitute additional rent hereunder (<U>Additional Rent</U>). Lessee may pay Additional Rent directly to the Person entitled thereto. All sums payable as Additional Rent to Persons other than Lessor shall be paid when they become due to such Persons, and Lessee
shall indemnify Lessor against any liens or claims against Lessor or the Premises arising out of
Lessee&#146;s failure to timely pay any such sums. All sums payable as Additional Rent to Lessor
shall be paid monthly in arrears, not later than the tenth day of the month immediately following
the month in which they accrue. Neither phone revenue nor per diem payments shall be deemed to accrue
until such time as the monies have been received by Lessee. Each such payment</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-5-</FONT></P>
<HR color=#000000 noShade>
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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>of Additional Rent to Lessor shall be accompanied by (i) a daily prisoner count (specifically identifying
those Inmates constituting Lessor Inmates) for the month for which Additional Rent is being paid,
(ii) a statement of Lessee&#146;s income and expenses for the Premises for such month, and (iii)
a statement of phone revenue for such month. Lessor shall have the right, not more than once each
year, at Lessor&#146;s expense and upon at least five day&#146;s notice to Lessee, to perform or,
to cause a firm of independent public accountants or auditors to perform, an audit of Lessee&#146;s
books and records pertaining to the Premises, and if such audit establishes that Lessee has underpaid
or failed to pay Lessor any sums due to Lessor by Lessee hereunder, Lessee shall promptly pay to
Lessor such deficiency.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>All payments Lessee is required to make to Lessor under this Lease shall be paid to the Frio County Auditor and deposited in an escrow account to be established for the exclusive (subject to the provisions hereof) benefit of Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>All monies received under
Intergovernmental Agreements by Lessor which relate to the Premises must be paid to Lessee within ten (10) business days of receipt.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U>Lessee&#146;s covenants to pay Basic Rent and Additional
Rent are separate and independent covenants from all other covenants of Lessor and Lessee hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IT IS UNDERSTOOD AND AGREED THAT ALL REVENUES RELATED TO THE FACILITY WILL BELONG EXCLUSIVELY TO LESSEE
EXCEPT FOR AMOUNTS LESSEE IS EXPRESSLY REQUIRED TO PAY PURSUANT TO THIS SECTION 4.</FONT></P>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>5.</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Use</U>.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee shall use and operate the Premises throughout the Term as a minimum or medium security correctional
facility. Lessee and Lessor shall comply with &#167;511.0092 of the Government Code at Lessee&#146;s
sole expense pursuant to Texas law and the rules and standards promulgated or adopted by the Texas
Commission on Jail Standards. Lessor shall provide Lessee with sufficient spaces to meet its governmental
obligations to maintain a County jail and shall provide the Sheriff of Lessee with sufficient access
to such space to carry out his duties as imposed by state law.</FONT></p>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee shall not do or permit anything to be done in or about the Premises nor bring or keep anything
therein which will in any way cause cancellation of any insurance policy covering the Premises or
any part thereof.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Except as provided in this Lease, or as required by law, Lessor or its successors or assigns shall
in no way have responsibility for, interfere or oversee Lessee&#146;s operations on the Premises.</FONT></P>
<FONT size=2 face="Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Times New Roman, Times, Serif">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee shall comply with all covenants, conditions, restrictions and Governmental Requirements applicable
to the Premises, and shall promptly comply with all governmental orders and directives for the correction,
prevention and abatement of nuisances, hazards and other conditions or activities in or upon, or
connected with the Premises, all at Lessee&#146;s sole cost, risk and expense, including any expense
or cost resulting from the compliance with improvements for handicapped or</FONT>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-6-</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>disabled persons or any other costs, fees or expenses mandated by Governmental Requirements.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee shall pay the cost of all utility services, including but not limited to, all charges for gas,
water, sewerage, storm water disposal, trash disposal, communications and electricity used on the
Premises and in the Sheriff&#146;s Offices.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Upon 24 hours notice, Lessor and its authorized agents shall have the reasonable right, during normal
business hours, to enter the Premises, at a time set by the Warden, (a) to inspect the general condition
and state of repair thereof, (b) to make repairs required or permitted under this Lease, or (c) for
any other reasonable purpose. In the event of an emergency, Lessor may enter the Premises at any
time.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>6.</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Net Lease</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Lease is a &#147;net lease&#148; and Lessee shall pay all Basic Rent and Additional Rent without
notice, demand, counterclaim, set-off, deduction, defense, abatement, suspension, deferment, diminution
or reduction. All costs, expenses and obligations of every kind and nature whatsoever relating to
the Premises and the appurtenances thereto and the use and occupancy thereof by Lessee or anyone
claiming by, through or under Lessee which may arise or become due during or with respect to the
period constituting the Term hereof shall be paid by Lessee. Lessee assumes during the Term the sole
responsibility for the condition, use, operation, maintenance and management of the Premises and
for obtaining and paying for all utilities serving the Premises and Lessor shall have no responsibility
in respect thereof and shall have no liability for damage to the property of Lessee or any approved
sublessee or assignee of Lessee or any agent, employee, inmate, officer representative, licensee
or invitee of Lessee or for any reason whatsoever.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>7.</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Taxes and Other Charges; Law and Agreements</U>.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Nothing in this Lease shall require
payment by Lessee of:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>any property or related
taxes on the Lessor&#146;s fee interest in the Premises;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>any franchise, estate, inheritance,
succession, or transfer taxes (other than transfer taxes, recording fees, or similar charges payable
in connection with a conveyance hereunder to Lessee or in connection with Lessor&#146;s exercise
of remedies after an Event of Default hereunder);</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>net income or profits taxes of Lessor
or anyone claiming by, through or under Lessor including without limitation (other than any gross
receipts or similar taxes imposed or levied upon, assessed against or measured by the Basic Rent,
Additional Rent or any other sums payable by Lessee hereunder or levied upon or assessed against
the Premises, unless such taxes are in lieu of or a substitute in whole or in part for an income,
profit or revenue tax of Lessor, but only to the extent of such substitution and only to the extent
that such tax, assessment or other charge would be payable if the Premises were the only property
of Lessor subject thereto); or</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-7-</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any taxes imposed by any federal, state
or local government on, or measured by, the gross or net income of Lessor, tax preferences or dividends
paid, taxes in the nature of capital gains, excess profits, accumulated earnings or personal holding
company taxes, unless any such tax is in lieu of or a substitute for any other tax or assessment
upon or with respect to the Premises, which, if such other tax or assessment were in effect, would
be payable by Lessee hereunder.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee and its lease hold interest in this Lease shall be subject to tax as otherwise imposed by applicable
law. However, Lessor agrees that it will not impose any taxes, levies, fees or other impositions
upon Lessee which are for Lessor&#146;s benefit and are not either a) mandated by state law, or b)
generally applicable to the citizens or businesses within Frio County which is not designed to place
a disproportionate burden on Lessee or c) able to be passed back to Lessee&#146;s clients through
higher per diem rates. Lessee shall pay any taxes assessed against trade fixtures, furnishings, equipment,
or any other personal property belonging to Lessee for which it is not tax-exempt. Lessee shall use
reasonable efforts to have its personal property taxed separately from the Premises, but if any of
Lessee&#146;s personal property is taxed with the Premises, Lessee shall pay the portion of all such
taxes attributable to the personal property of Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee
shall furnish to Lessor promptly, and in any event within 20 days after the same becomes due and
payable, proof of the payment of any tax, assessment, fee, rent or charge which is payable by Lessee.
Such taxes, assessments, fees, water and sewer rents and other governmental charges shall be apportioned
pro rata between Lessor and Lessee as of the date on which this Lease terminates or expires with
Lessee responsible for all such taxes, fees and charges attributable to the periods during which
this Lease was in effect, and Lessor responsible for all such taxes, fees and charges attributable
to periods thereafter. Lessor and Lessee agree to use reasonable efforts to cause bills for taxes
and other assessments and all assessment notices with respect to the Premises to be sent directly to Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee shall obtain and pay all
charges for utility, communication and other services to the extent rendered or used during the Term
on or about the Premises, whether or not payment therefor shall become due after the Term.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Liens</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee will promptly, but in any event no later than 30 days after its knowledge of the filing thereof
but in any event prior to the enforcement of the same, at its own expense remove and discharge of
record, by bond or otherwise, any charge, lien, security interest or encumbrance upon the Premises,
any Basic Rent, or any Additional Rent or other sums payable by Lessee under this Lease which arises
for any reason (except for any act or omission of Lessor or anyone claiming by, through or under
Lessor, without the consent of Lessee), including all liens which arise out of Lessee&#146;s possession,
use, operation and occupancy of the Premises, but not including any permitted encumbrances. Nothing
contained in this Lease shall be construed as constituting the consent or request of Lessor, express
or implied, to or for the performance by any contractor, laborer, materialman, or vendor of any labor
or services or for the furnishing of any materials for any construction, alteration, addition, repair
or demolition of or to the Premises or any part thereof. Notice is hereby given that Lessor</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-8-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>will not be liable for any labor, services or materials furnished or to be furnished to Lessee,
or to anyone holding an interest in the Premises or any part thereof through or under Lessee, and
that no mechanic&#146;s or other liens for any such labor, services or materials shall attach to
or affect the interest of Lessor in and to the Premises.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>INDEMNIFICATION: FEES AND EXPENSES</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LESSEE SHALL UNCONDITIONALLY
AND IRREVOCABLY PAY, AND SHALL PROTECT, DEFEND, AND INDEMNIFY LESSOR, AND ITS COMMISSIONERS, OFFICERS,
EMPLOYEES, LICENSEES, AND AGENTS (<U>INDEMNIFIED PARTY</U>), AGAINST AND HOLD INDEMNIFIED PARTY HARMLESS FROM ALL LIABILITIES, LOSSES, FINES, PENALTIES, DAMAGES,
COSTS, EXPENSES (INCLUDING REASONABLE ATTORNEYS&#146; FEES, PRE AND POST JUDGEMENT INTEREST, COSTS
OF COURT, AND EXPENSES), CLAIMS, DEMANDS OR JUDGMENTS OF ANY NATURE (A) ARISING OR ALLEGED TO ARISE
IN CONNECTION WITH THE CONDITION, USE, OPERATION, MAINTENANCE, SUBLETTING AND MANAGEMENT OF THE PREMISES,
(B)&nbsp;RELATING TO THE PREMISES AND THE APPURTENANCES THERETO AND THE USE AND OCCUPANCY THEREOF
BY LESSEE OR ANYONE CLAIMING BY, THROUGH OR UNDER LESSEE OR (C) ARISING OR ALLEGED TO ARISE FROM
OR IN CONNECTION WITH: (I) ANY INJURY TO, OR DEATH OF, ANY PERSON OR ANY DAMAGE TO OR LOSS OF PROPERTY
ON OR ADJACENT TO THE PREMISES OR GROWING OUT OF OR DIRECTLY OR INDIRECTLY CONNECTED WITH, OWNERSHIP,
USE, NONUSE, OCCUPANCY, OPERATION, POSSESSION, CONDITION, CONSTRUCTION, REPAIR OR REBUILDING OF THE
PREMISES, OTHER THAN ANY INJURY, DEATH, DAMAGE OR LOSS ARISING OUT OF SUCH INDEMNIFIED PARTY&#146;S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT; OR (II) ANY CLAIMS BY THIRD PARTIES RESULTING FROM ANY VIOLATION
OR ALLEGED VIOLATION BY LESSEE OF (A) ANY PROVISION OF THIS LEASE, OR (B) ANY GOVERNMENTAL REQUIREMENT,
OR (C) ANY OTHER AGREEMENT RELATING TO THE PREMISES. IF INDEMNIFIED PARTY SHALL BE MADE A PARTY TO
ANY SUCH CLAIM, DEMAND OR LITIGATION, AND IF LESSEE, AT ITS EXPENSE, SHALL FAIL TO PROVIDE INDEMNIFIED
PARTY WITH COUNSEL APPROVED BY SUCH PARTY, WHICH APPROVAL SHALL NOT BE UNREASONABLY WITHHELD, LESSEE
SHALL PAY ALL COSTS AND REASONABLE ATTORNEY&#146;S FEES AND EXPENSES INCURRED OR PAID BY INDEMNIFIED
PARTY IN CONNECTION WITH SUCH LITIGATION. TO THE EXTENT LEGALLY PERMISSIBLE, EACH INDEMNIFIED PARTY
CONSENTS TO BEING REPRESENTED BY THE SAME COUNSEL AS LESSEE IN SUCH ACTION; PROVIDED, HOWEVER, THAT
ANY INDEMNIFIED PARTY MAY BE REPRESENTED BY SEPARATE COUNSEL AT LESSEE&#146;S EXPENSE IF, IN SUCH
INDEMNIFIED PARTY&#146;S REASONABLE JUDGMENT, SEPARATE COUNSEL IS NECESSARY TO PROTECT SUCH INDEMNIFIED PARTY&#146;S INTEREST.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LESSOR SHALL NOT BE LIABLE
TO LESSEE OR TO LESSEE&#146;S EMPLOYEES, AGENTS, INVITEES OR VISITORS, OR TO ANY OTHER PERSON WHOMSOEVER,
FOR ANY INJURY TO PERSONS OR DAMAGE TO PROPERTY ON OR ABOUT THE PREMISES OR ANY ADJACENT AREA OWNED
BY LESSOR CAUSED BY THE NEGLIGENCE OR MISCONDUCT OF LESSEE, ITS EMPLOYEES, SUBLESSEES, LICENSEES
OR CONCESSIONAIRES OR ANY</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-9-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>OTHER PERSON ENTERING THE PREMISES UNDER EXPRESS OR IMPLIED INVITATION OF LESSEE, OR ARISING OUT OF
THE USE OF THE PREMISES BY LESSEE AND THE CONDUCT OF ITS BUSINESS THEREIN, OR ARISING OUT OF ANY
BREACH OR DEFAULT BY LESSEE IN THE PERFORMANCE OF ITS OBLIGATIONS HEREUNDER; AND LESSEE HEREBY AGREES
TO INDEMNIFY AND HOLD LESSOR HARMLESS FROM ANY LOSS, EXPENSE OR CLAIMS ARISING OUT OF SUCH DAMAGE
OR INJURY.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each party hereto waives any and
every claim which arises or may arise in its favor against the other party hereto during the term
of this Lease or any renewal or extension thereof for any and all loss of, or damage to, any of its
property located within or upon, or constituting a part of, the Premises, which loss or damage is
covered by valid and collectible fire and extended coverage insurance policies, to the extent that
such loss or damage is recoverable under such insurance policies. Such mutual waivers shall be in
addition to, and not in limitation or derogation of, any other waiver or release contained in this
Lease with respect to any loss of, or damage to, property of the parties hereto. Inasmuch as such
mutual waivers will preclude the assignment of any aforesaid claim by way of subrogation or otherwise
to an insurance company (or any other person), each party hereby agrees immediately to give to each
insurance company which is issued to such party policies of fire and extended coverage insurance,
written notice of the terms of such mutual waivers, and to cause such insurance policies to be properly
endorsed, if necessary, to prevent the invalidation of such insurance coverages by reason of such waivers.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Environmental Matters</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessor represents, covenants and
warrants to Lessee that:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" border="0">

<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;(i)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>no notices, complaints or orders of violation or non-compliance of any nature whatsoever have been
issued to Lessor or, to Lessor&#146;s actual knowledge, to any Person regarding the Premises, and
to Lessor&#146;s actual knowledge, no federal, state or local environmental investigation or legal
action by a private party is pending or overtly threatened, in each case with regard to the Premises
or any use thereof or any alleged violation of, or strict liability arising under, Environmental
Laws with regard to the Premises; to Lessor&#146;s actual knowledge, no liens have been placed upon
the Premises in connection with any actual or alleged liability under any Environmental Laws;</FONT></TD>
</TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the Premises (a) have not been used by Lessor or to Lessor&#146;s actual knowledge by any other Person
to generate, manufacture, refine, produce or process any Hazardous Substance or to store, handle,
transfer or transport any Hazardous Substance other than normal and lawful uses of such Hazardous
Substances, taking into account Lessor&#146;s use of the Premises, in lawful quantities and in compliance
with Environmental Laws, and (b) will not be used by Lessor or any other Person acting under Lessor&#146;s
actual control (which excludes among others, Lessee and its agents, employees, officers, representatives,
licensees, invitees and all inmates) at any time during the Term to generate, manufacture, refine,
produce or process any Hazardous</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-10-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" border="0">

<TR>
  <TD width="51" vAlign=top></TD>
  <TD width="70" vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Substance or to store, handle, transfer or transport any Hazardous Substance;</FONT></TD>
</TR>
<TR>
  <TD width="51" vAlign=top></TD>
  <TD width="70" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>to Lessor&#146;s actual knowledge, no Hazardous Substances have been disposed of or otherwise released
on, from or to the Premises except in compliance with applicable Environmental Laws;</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(iv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the use which Lessor makes and intends to make of the Premises will not result in the disposal or other
release of any Hazardous Substances on, from or to the Premises except in compliance with applicable
Environmental Laws.</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(v)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lessor has no notice or knowledge that any lien has been created on the Premises pursuant to any Environmental
Law, nor, Lessor&#146;s actual knowledge, is the Premises listed on or proposed for listing on the
National Priorities List under CERCLA or any similar state registry.</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(vi)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lessor has no actual notice or actual knowledge that any lien has been created on the Premises pursuant
to any Environmental Law, nor, to Lessor&#146;s actual knowledge, are the Premises listed on or proposed
for listing on the National Priorities List under CERCLA or any similar state registry.</FONT></TD></TR>
</TABLE>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee represents, covenants and warrants to Lessor that:</FONT></p>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="51" vAlign=top></TD>
    <TD width="70" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>at all times during the Term, the Premises, Lessee, and all of its officers, employees, agents, representatives, licensees, invitees, inmates, sublessees and any assignee of Lessee shall comply in all respects with all applicable Environmental Laws; Lessee has, and will ensure that Lessee and all of its officers, employees, agents, representatives, licensees, and invitees have obtained all permits, licenses, and any other authorizations to conduct operations at the Premises that are required under all applicable Environmental Laws; Lessee is, and will take all reasonable steps to ensure that Lessee and all of its officers, employees, agents, representatives, licensees, invitees and inmates of the Premises are, in compliance with all terms and conditions of all permits, licenses, and any other authorizations required under all applicable Environmental Laws;</FONT></TD>
  </TR>
  <TR>
    <TD width="51" vAlign=top></TD>
    <TD width="70" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="51" vAlign=top></TD>
    <TD width="70" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>at all times during the Term, the Premises, Lessee, all sublessees and any assignee of Lessee shall comply in all respects with all applicable Environmental Laws; Lessee has and will ensure that all sublessees of the Premises have, obtained all permits, licenses, and any other authorizations to conduct operations at the Premises that are required under all applicable Environmental Laws; Lessee is, and will take all reasonable steps to ensure that all sublessees of the Premises are, in compliance with all terms and conditions of all permits, licenses, and any other authorizations required under all applicable Environmental Laws;</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-11-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" border="0">

<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>no notices, complaints or orders of violation or non-compliance of any nature whatsoever have been
issued to Lessee or, to Lessee&#146;s actual knowledge, to any Person regarding the Premises, and
to Lessee&#146;s actual knowledge, no federal, state or local environmental investigation or legal
action by a private party is pending or overtly threatened, in each case with regard to the Premises
or any use thereof or any alleged violation of, or strict liability arising under, Environmental
Laws with regard to the Premises; to Lessee&#146;s actual knowledge, no liens have been placed upon
the Premises in connection with any actual or alleged liability under any Environmental Laws;</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(iv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>the Premises (a) have not been used by Lessee or to Lessee&#146;s actual knowledge by any other Person
to generate, manufacture, refine, produce or process any Hazardous Substance or to store, handle,
transfer or transport any Hazardous Substance other than normal and lawful uses of such Hazardous
Substances, taking into account Lessee&#146;s use of the Premises, in lawful quantities and in compliance
with Environmental Laws, and (b) will not be used by Lessee or any other Person at any time during
the Term to generate, manufacture, refine, produce or process any Hazardous Substance or to store,
handle, transfer or transport any Hazardous Substance, other than normal and lawful uses of such
Hazardous Substances, taking into account Lessee&#146;s intended use of the Premises, in lawful quantities
and in compliance with Environmental Laws where such uses will have no material adverse effect upon
the Premises;</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(v)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>to Lessee&#146;s actual knowledge, (i) no contaminants have been disposed of or otherwise released
on, from or to the Premises except in compliance with applicable Environmental Laws and (ii) the
use which Lessee makes and intends to make of the Premises will not result in the disposal or other
release of any Hazardous Substances on, from or to the Premises except in compliance with applicable
Environmental Laws.</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(vi)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lessee has no actual notice or actual knowledge that any lien has been - created on the Premises pursuant
to any Environmental Law, nor, to Lessee&#146;s actual knowledge, are the Premises listed on or proposed
for listing on the National Priorities List under CERCLA or any similar state registry.</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(vii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lessee will obtain and will require subtenants to obtain and properly maintain all permits, licenses,
registrations, approvals and consents required for the Premises and Lessee&#146;s and any subtenants&#146;
operations and facilities thereon.</FONT></TD></TR>
<TR>
<TD width="51" vAlign=top></TD>
<TD width="70" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width=51 vAlign=top></TD>
<TD width=70 vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(viii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>IF LESSEE BREACHES THE OBLIGATIONS STATED IN THE PRECEDING SECTIONS OR SENTENCES, OR IF THE PRESENCE
OF HAZARDOUS SUBSTANCES ON THE PROPERTY CAUSED OR PERMITTED BY LESSEE RESULTS IN CONTAMINATION OF
THE PROPERTY OR ANY OTHER PROPERTY, OR IF</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-12-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" border="0">

<TR>
<TD width=121 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>CONTAMINATION OF THE PROPERTY OR ANY OTHER PROPERTY BY HAZARDOUS SUBSTANCES OTHERWISE OCCURS FOR WHICH
LESSEE IS LEGALLY LIABLE TO LESSOR FOR DAMAGE RESULTING THEREFROM, THEN LESSEE SHALL INDEMNIFY, DEFEND
AND HOLD LESSOR HARMLESS FROM ANY AND ALL CLAIMS, JUDGMENTS, DAMAGES, PENALTIES, FINES, COSTS, LIABILITIES
OR LOSSES (INCLUDING, WITHOUT LIMITATION, DIMINUTION IN VALUE OF THE PROPERTY, DAMAGES FOR THE LOSS
OR RESTRICTION ON USE OF RENTABLE OR UNUSABLE SPACE OR OF ANY AMENITY OR APPURTENANCE OF THE PROPERTY,
DAMAGES ARISING FROM ANY ADVERSE IMPACT ON MARKETING OF BUILDING SPACE OR LAND AREA, AND SUMS PAID
IN SETTLEMENT OF CLAIMS, ATTORNEYS&#146; FEES, CONSULTANT FEES AND EXPERT FEES) WHICH ARISE DURING
OR AFTER THE LEASE TERM AS A RESULT OF SUCH CONTAMINATION. THIS INDEMNIFICATION OF LESSOR BY LESSEE
INCLUDES, WITHOUT LIMITATION, COSTS INCURRED IN CONNECTION WITH ANY INVESTIGATION OF SITE CONDITIONS
OR ANY CLEAN-UP, REMEDIAL WORK, REMOVAL OR RESTORATION WORK REQUIRED BY ANY FEDERAL, STATE OR LOCAL
GOVERNMENT AGENCY OR POLITICAL SUBDIVISION BECAUSE OF HAZARDOUS SUBSTANCES PRESENT IN THE SOIL OR
GROUND WATER ON OR UNDER THE PROPERTY. WITHOUT LIMITING THE FOREGOING, IF THE PRESENCE OF ANY HAZARDOUS
SUBSTANCES ON THE PROPERTY OR ANY OTHER PROPERTY CAUSED OR PERMITTED BY LESSEE RESULTS IN ANY CONTAMINATION
OF THE PROPERTY, LESSEE SHALL PROMPTLY TAKE ALL ACTIONS AT ITS SOLE EXPENSE AS ARE NECESSARY TO RETURN
THE PROPERTY TO THE CONDITION EXISTING PRIOR TO THE INTRODUCTION OF ANY SUCH HAZARDOUS SUBSTANCES
TO THE PROPERTY, PROVIDED THAT LESSOR&#146;S APPROVAL OF SUCH ACTIONS SHALL FIRST BE OBTAINED. THE
FOREGOING INDEMNITY SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS LEASE.</FONT></TD></TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Maintenance and Repair</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee will, at its sole cost, risk and expense, keep and maintain the Premises, including any Expansions
  and any altered, rebuilt, additional or substituted buildings, structures and other improvements
  thereto, in a good condition, ordinary wear and tear excepted. Lessee will make all structural and
  non-structural, and ordinary and extraordinary changes, capital and other repairs and replacements,
  foreseen or unforeseen, which may be required, whether or not caused by its act or omission, to keep
  the Premises in such condition, ordinary wear and tear excepted, including taking, or causing to
  be taken, action necessary to maintain the Premises in compliance with all applicable Governmental
  Requirements, including all applicable Environmental Laws. Lessee shall keep the Premises orderly
  and free and clear of rubbish. Lessor shall not be required to maintain, alter, repair, rebuild or
  replace any portion of the Premises or to maintain the Premises, and Lessee expressly waives the
  right to make repairs at</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-13-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>the expense of Lessor pursuant to any law at any time in effect. Without in any way limiting the foregoing,
Lessee shall also be responsible for maintaining the Sheriff&#146;s Offices, including, without limitation,
the roof, interior and exterior walls, foundation and all structural components thereof, as well
as all HVAC, gas, electric, telephone and other utility facilities and equipment serving the Sheriff&#146;s
Offices, and for providing routine janitorial service for the Sheriff&#146;s Offices.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>12.</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U>Trade Fixtures</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Title to all trade fixtures or other personal property placed on or affixed to the Premises by or on
  behalf of Lessee during the Term shall be and remain vested in Lessee. All such personalty of Lessee
  shall be removed at the expiration of the Term. Lessee shall restore the Premises to the extent damaged
  by any such removal.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Condemnation and Casualty</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If during the Term less than &#147;substantially all&#148; (hereinafter defined) of the Premises shall
be damaged by fire or other casualty, then Lessee shall give prompt written notice of such damage
to Lessor and shall, at Lessee&#146;s own cost and expense, proceed with diligence and promptness
to carry out any necessary demolition and to restore, repair, replace, and/or rebuild the Premises
in order to restore the Premises, as nearly as practicable, to a condition not less than the condition
required to be maintained hereunder and to a fair market value not less than the fair market value
immediately prior to such damage. All repair work shall be undertaken and completed in a good and
workmanlike manner and in compliance in all material respects with all Governmental Requirements
then in effect with respect to the Premises.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If all or substantially all of the Premises shall be destroyed or damaged by fire or other casualty,
then Lessee may, at its sole election, (1) use the insurance proceeds to restore the Premises, as
nearly as practicable, to a condition not less than the condition required to be maintained hereunder
and to a fair market value not less than the fair market value immediately prior to such damage.
All repair work shall be undertaken and completed in a good and workmanlike manner and in compliance
in all material respects with all Governmental Requirements then in effect with respect to the Premises,
or (2) give notice to Lessor of Lessee&#146;s intention to terminate this Lease and immediately assign
to Lessor all of Lessee&#146;s insurance proceeds and benefits in connection therewith and pay any
required deductible. &#147;Substantially all&#148; of the Premises shall be deemed to have been damaged
or destroyed if the cost of restoring the Improvements is more than one-third of the greater of the
fair market value of or the replacement cost of the Improvements immediately before the Destruction
occurs. In the event that Lessee elects to terminate this Lease in accordance with the provisions
of this paragraph (b), Lessor shall have no duty or obligation to refund to Lessee all or any portion
of the prepaid Basic Rent.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of a temporary condemnation, this Lease shall remain in full force and effect and Lessee
shall be entitled to the portion of the condemnation award or proceeds in connection therewith that
is attributable to the leasehold interest hereunder.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-14-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Premises shall be
taken or condemned for any public purpose to such extent as to render the Premises, in the reasonable
opinion of Lessor or Lessee, not reasonably suitable for Lessee&#146;s occupancy, this Lease shall,
at the option of either party, terminate on the date title shall vest in the condemnor or transferee.
Lessor and Lessee shall attempt to cause any proceeds to be determined by separate awards and to
the extent that they are, such award will be the exclusive compensation to both Lessor and Lessee
for such taking or condemnation. To the extent that there is not a separate award for Lessee&#146;s
and Lessor&#146;s interest, the entire award shall be paid to Lessor, who shall refund a portion
of the Basic Rent paid under this Lease according to the following formula: Basic Rent times number
of beds lost due exclusively to the taking or condemnation divided by (295 plus the number of beds
added in any expansion) times the number of days remaining in the Term divided by 4,380. The refund
of Basic Rent shall be paid exclusively from, and is limited by, the award Lessor receives due to
such taking or condemnation.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Insurance</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Lessee shall, at its cost and
expense, maintain or cause to be maintained insurance of the following character and shall cause
to be delivered to Lessor annual certificates of the insurers as to such coverage:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#147;All risk&#148; property insurance covering the Premises and all replacements and additions thereto,
in amounts not less than the actual replacement cost of the Premises less Land and other uninsurable
items against perils as are insurable under then available &#147;all risk&#148; policies.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Public liability insurance covering liability against claims for bodily injury, death or property damage,
occurring on, in or about the Premises and the adjoining land, streets, sidewalks or ways or occurring
as a result of construction, use or occupancy of the Premises or the use of products sold, or services
rendered, on the Premises, in the minimum amount of $20,000,000 with respect to any one occurrence,
accident or disaster or incidence of negligence. Coverage should include &#147;premises/operations&#148;,
&#147;independent contractors&#148;, and &#147;blanket contractual&#148; liabilities. Up to the first
$20 million of such coverage may be a self-insured retention, so long as Lessee maintains at least
$20 million in additional coverage and has a tangible net worth of $30 million as shown on its last
audited financial statements.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Worker&#146;s compensation insurance (or other similar insurance or self insurance program permitted
and in compliance with the laws of the State of Texas) covering all Persons employed in connection
with any work done on or about the Premises with respect to which claims for death or bodily injury
could be asserted against Lessor, Lessee or the Premises, complying with the laws of the State of
Texas.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(iv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Such other insurance, in such amounts, against such risks, and with such other provisions as is customarily
and generally maintained by private operators of facilities similar to those at the Premises.</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-15-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Such insurance shall not limit Lessee&#146;s liability nor relieve Lessee of any obligation hereunder;
although such insurance shall, in part, insure Lessee&#146;s performance of any indemnity provision
of this Lease. Such insurance shall be written by insurance companies legally qualified to issue
such insurance and shall name Lessee as insured, and Lessor as additional insured with respect to
insurance described in clause (ii) and, to the extent applicable, clause (iv), above, and shall name
Lessor as loss payee, as its interest may appear, with respect to insurance described in clause (i)
and, to the extent applicable, clause (iv) above. Lessee shall obtain such insurance policies from
insurance companies with a General Policy Rating of A or better in Best&#146;s Key Rating Guide or
such other insurance companies or risk management programs approved in writing by Lessor&#146;s Mortgagee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each policy shall (i) provide that 30 days advance written notice of cancellation, modification, termination
or lapse of coverage shall be given to Lessor; and (ii) be primary and without right or provision
of contribution as to any other insurance carried by Lessor or any other interested party.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessee shall deliver to Lessor such original or duplicate policies or certificates of insurers, evidencing
all of the insurance required under paragraph 14(a). Lessee shall, within ten (10) Business Days
prior to the expiration of any such policy, deliver to Lessor such original or duplicate policies
or such certificates evidencing the renewal of any such policy and payment of the premiums for such
policy. If Lessee fails to maintain or renew any insurance required by this Lease and timely deliver
evidence thereof as required pursuant to the preceding sentence, or to pay the premium therefor,
then Lessor, at its option, but without obligation to do so, may, upon three days&#146; notice to
Lessee, procure such insurance. Any sums so expended by Lessor shall be Additional Rent hereunder
and shall be repaid by Lessee immediately after notice to Lessee of such expenditure.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessee shall comply with all of the terms and conditions of each insurance policy maintained pursuant
to the terms of this Lease.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As long as their respective insurers so permit, Lessor and Lessee hereby mutually waive their respective
rights of recovery against each other for any loss insured by fire, extended coverage, and other
property insurance policies existing for the benefit of the respective parties and Lessor and Lessee
shall each use their best efforts to cause their respective insurers to waive all rights of recovery
by way of subrogation against the other party. Each party shall obtain any special endorsements,
if required by its insurer, to evidence compliance with the aforementioned waiver by such party and
its insurer.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Responsibilities of Lessor</U>.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent permitted by law, Lessor will enter into all intergovernmental
agreements, including those relating to prisoners from out-of-state, presented by Lessee that are
authorized by, and comply with all applicable Governmental Requirements, including but not limited
to &#167;511 of the Governmental Code, are for the type of prisoners for which the Premises are licensed
and which contain a satisfactory indemnification of the Lessor. An indemnification substantially</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-16-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>equivalent to the indemnification provided by Lessee to Lessor pursuant to Section 9 of this Lease
will be deemed to be satisfactory to Lessor. Even though such Intergovernmental Agreements are between
Lessor and a third party, Lessee assumes all obligations of Lessor thereunder and shall pay all reasonable
expenses to be incurred thereunder directly related to the Agreement, and, except as provided in
this Lease, shall retain all income therefrom. If Lessor pays any amounts due or required under such
an Intergovernmental Agreement and such payment is not reimbursed by Lessee within 60 days after
it is made by Lessor, such failure to reimburse Lessor shall constitute a breach of this Lease by Lessee.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>For Intergovernmental Agreements involving out-of-state inmates, Lessor will take such actions at Lessee&#146;s expense as necessary to comply with Texas law and regulations governing contracts for out-of-state inmates and federal prisoners in order to permit Lessee to house such out-of-state inmates or federal prisoners in the Facility.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessor will at Lessee&#146;s expense cooperate with Lessee for the term of the Lease to obtain all
necessary approvals for operation of the Facility, including but not limited to securing use permits
and licensing.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prior to Lessor incurring any expenses for which it will seek reimbursement from Lessee, Lessor shall
obtain Lessee&#146;s prior written approval.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessor will cooperate with Lessee to obtain all necessary approvals for expansions of Facility and
will consent to any reasonable expansion plan up to approximately fifty (50) beds.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><U>Fees.</U></FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee shall pay reasonable professional fees up to and not to exceed $100,000 in the aggregate to
Lessor for legal and financial advisors upon the execution of this Lease and presentation of itemized
bills. Lessee shall have no objection to Lessor&#146;s legal and financial advisors.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>17.</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quiet Enjoyment</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>So long as no Event of Default under this Lease shall have occurred and be continuing, Lessor covenants
that Lessee shall and may at all times peaceably and quietly have, hold and enjoy the Premises during
the Term subject to the provisions of this Lease.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>18.</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event of the termination of this Lease as herein provided, the obligations and liabilities of
Lessee, actual or contingent, under this Lease which arose at or prior to such termination shall
survive such termination.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subletting: Assignment</U>.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as permitted under subparagraph (b), Lessee may not assign this </FONT><FONT face="Times New Roman, Times, Serif" size=2>Lease or sublet all or any portion of the Premises without Lessor&#146;s consent, which</FONT>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-17-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>consent will not be unreasonably withheld or delayed. Each such request for consent shall be
accompanied by the form of the proposed assignment or sublease and financial statements of the proposed
assignee or sublessee. The Lessor will place the request on the agenda within fifteen (15) business
days. Lessor&#146;s consent shall in no event be conditioned on an increase in the Basic or Additional
Rent and/or any amendment to this Lease. Any assignment or subletting without Lessor&#146;s consent
shall be voidable at Lessor&#146;s election. The consent to one assignment or subletting shall not
be deemed to be a consent to any subsequent assignment or subletting.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lessee may assign this Lease
or sublet all or any part or its interests in the Premises, without the consent of Lessor, in any
of the following situations:</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=15% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>If the assignment or subletting is to a Lessee Entity which is a Qualified Assignee; or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>If the assignment or subletting is made to a Qualified Assignee in connection with a merger, consolidation
or reorganization involving a Lessee Entity.</FONT></TD></TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No such sublease or assignment,
whether to a Lessee Entity or to a Qualified Assignee or otherwise, shall affect or reduce any obligations
of Lessee or rights of Lessor hereunder, and all obligations of Lessee hereunder shall continue in
full effect as the obligations of a principal and not of a guarantor or surety, as though no subletting
or assignment had been made. Each such sublease shall specifically provide that the rights, title
and estate of the sublessee are subordinate and inferior to the rights, title and estate of Lessor
hereunder and shall be bound by the provisions of this Lease.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Lease,
the following events shall be deemed an assignment or sublease, as appropriate: (i) the issuance
of equity interests (whether stock, partnership interests or otherwise) in Lessee or any subtenant
or assignee, or any entity controlling any of them, to any person or group of related persons, in
a single transaction or a series of related or unrelated transactions, such that, following such
issuance, such person or group shall have Control (as defined below) of Lessee; or (ii) a transfer
of Control of Lessee or any subtenant or assignee, or any entity controlling any of them, in a single
transaction or a series of related or unrelated transactions (including, without limitation, by consolidation,
merger, acquisition or reorganization), except that the transfer of outstanding capital stock or
other listed equity interests by persons or parties other than &#147;insiders&#148; within the meaning
of the Securities Exchange Act of 1934, as amended, through the &#147;over-the-counter&#148; market
or any recognized national or international securities exchange, shall not be included in determining
whether Control has been transferred. &#147;Control&#148; shall mean direct or indirect ownership
of 50% or more of all of the voting stock of such corporation or 50% or more of all the legal and
equitable interest in any other business entity.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>20.</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<U>Events of Default and Remedies</U>.</FONT></TD>
</TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any of the following occurrences
or acts shall constitute an <U>Event of Default</U> under this Lease:</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-18-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(i)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if Lessee shall fail to keep in full force and effect the insurance coverage required to be maintained
by Lessee hereunder from Lessor; or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if Lessee shall default in making payment of any Basic Rent or Additional Rent and such failure shall
continue for ten Business Days after receipt of written notice of such failure from Lessor; or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if Lessee shall default in the performance of any material covenant, agreement or obligation on the part
of Lessee to be performed under this Lease and such default shall continue for 30 days after Lessee&#146;s
receipt of written notice thereof from Lessor; provided, however, that in the case of a default which
can with reasonable diligence be remedied by Lessee, if Lessee shall commence within such 30 days
after its receipt of such written notice to remedy the default and thereafter shall prosecute such
remedy with all reasonable diligence, the period of time within which to remedy the default shall
be extended for such period as may be reasonable to remedy the same with reasonable diligence not
to exceed an extension of ninety (90) days; or</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(iv)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if Lessee shall vacate or abandon the Premises, provided a temporary decrease in the number of inmates
shall not be deemed to be a vacation or abandonment so long as Lessee is actively seeking inmates;
or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(v)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if Lessee shall file a petition in bankruptcy, reorganization or arrangement pursuant to the Bankruptcy
Code, or shall be adjudicated a bankrupt, make an assignment for the benefit of its creditors, admit
in writing its inability to pay its debts generally as they become due, be dissolved, or suspend
payment of its obligations; or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(vi)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if a petition or answer shall be filed proposing the adjudication of Lessee as a bankrupt or its reorganization
pursuant to the Bankruptcy Code, and (A) Lessee shall consent to such filing, or (B) such petition
or answer shall not be discharged or denied within 60 days after such filing; or</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48></TD>
<TD vAlign=top width=72><FONT face="Times New Roman, Times, Serif" size=2>(vii)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>if a receiver, trustee or liquidator (or similar official) shall be appointed for or take possession
or charge of Lessee, of Lessee&#146;s estate or interest in the Premises, and shall not be discharged
within 60 days, or if Lessee shall consent to or acquiesce in such appointment.</FONT></TD></TR></TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At
any time after the occurrence of an Event of Default by Lessee, Lessor shall be entitled to exercise
any and all rights and remedies available to it at law or in equity, provided, Lessor shall only
be entitled to terminate this Lease as a result of a default by the Lessee in the case of a default
which: (1) continues undisputed for thirty (30) days after Lessee&#146;s receipt of a written notice
thereof from Lessor; provided, however, that in the case of a default which can with reasonable diligence
be remedied by Lessee, if Lessee shall commence within such thirty (30) days after its receipt of
such written notice to remedy the default and thereafter shall prosecute such remedy with all reasonable
diligence until the cure of same, the period of time within which to</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-19-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>remedy such default shall be extended for such period as may be reasonably necessary to remedy
the same; or (2) is disputed in writing by Lessee within thirty (30) days after its receipt of notice
of default from Lessor and, within ninety (90) days of Lessee&#146;s receipt of such notice either
(i) is not resolved to the mutual satisfaction of Lessor and Lessee, or (ii) is not the subject of
a pending action in an appropriate judicial court within Texas; or (3) results in the termination
of the license or authority to operate the Facility. Lessor may also terminate this Lease in the
event an event of default is disputed as provided in (b) (2) above and results in a final nonappealable
judgment in its favor, in whole or in part, which is not paid to Lessor or otherwise implemented
to Lessor&#146;s satisfaction within thirty (30) days of such judgment.</FONT></P>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>21. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U></U><U>Notices</U>.</FONT></p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All communications made pursuant to this Lease shall be in writing and shall sent by (i) registered
or certified mail, return receipt requested, and the giving of such communication shall be complete
on the third Business Day after deposit, postage prepaid, in a United States Post Office, (ii) reputable
overnight delivery service, and the giving of such communication shall be complete on the immediately
succeeding Business Day after deposit with such delivery service or (iii) legible fax with original
to follow in due course (failure to send such original shall not affect the validity of such fax
notice), and the giving of such communication shall be complete upon receipt. Communications to Lessor
and Lessee shall be sent to the respective addresses first shown above or to such other address as
Lessor and Lessee shall subsequently provide in writing to the other.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>22. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Protection of Lenders</U></FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subordination</U>. Lessor shall have the right to subordinate this Lease to any existing or future ground lease, deed
of trust or mortgage encumbering the Premises, and advances made on the security thereof and any
renewals, modifications, consolidations, replacements or extensions thereof, whenever made or recorded.
Lessor&#146;s right to obtain such a future subordination is subject to Lessor&#146;s providing Lessee
with a written Subordination, Nondisturbance and Attornment Agreement reasonably acceptable to Lessor&#146;s
Mortgagee and Lessee from any such ground lessor, beneficiary or mortgagee wherein Lessee&#146;s
right to peaceable possession of the Premises during the Lease Term shall not in any way or at any
time be disturbed if Lessee pays all rental due and performs all of Lessee&#146;s obligations under
this Lease and is not otherwise in default. If any ground lessor, beneficiary, or mortgagee elects
to have this Lease superior to the lien of its ground lease, deed of trust or mortgage and gives
written notice thereof to Lessee, this Lease shall be deemed superior to such ground lease, deed
of trust or mortgage whether this Lease is dated prior or subsequent to the date of said ground lease,
deed of trust or mortgage or the date of recording thereof. Lessee&#146;s rights under this Lease,
unless specifically modified at the time this Lease is executed, are subordinated to any existing
ground lease, deed of trust or mortgage encumbering the Premises.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Attornment</U>. If Lessor&#146;s interest in the Premises is transferred voluntarily or involuntarily to any ground
lessor, beneficiary under a deed of trust, mortgagee or purchaser at a foreclosure sale, Lessee shall
attorn to the transferee of or successor to</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-20-</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Lessor&#146;s interest in the Premises and recognize such transferee or successor as Lessor under this
Lease.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U>Signing of Documents</U>. Lessee shall sign and deliver any instruments or documents necessary or appropriate to evidence any
such attornment or subordination or agreement to do so or any estoppel certificate.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Estoppel Certificates</U>. Each party hereto agrees that at any time and from time to time (but not more than two (2) times
in any fiscal year), it will within ten days after request by the other party, execute, acknowledge
and deliver to such other party a certificate stating, to the best of such party&#146;s knowledge,
(a) that this Lease is unmodified and in force and effect (or if there have been modifications, that
this Lease is in force and effect as modified, and setting forth any modifications); (b) the date
to which Basic Rent, Additional Rent and other sums payable hereunder have been paid; (c) whether
or not there is an existing default by Lessee in the payment of Basic Rent or any other sum required
to be paid hereunder, and whether or not there is any other existing default by Lessee with respect
to which a notice of default has been served or of which the signer has knowledge, and, if there
is any such default, specifying the nature and extent thereof; (d) whether or not there are any setoffs,
defenses or counterclaims against enforcement of the obligations to be performed hereunder existing
in favor of the party executing such certificate; and (e) stating that Lessee is in possession of the Premises.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Merger</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessee agrees that there shall be no merger of this Lease or of any sublease under this Lease or of
any leasehold or subleasehold estate hereby or thereby created with the fee or any other estate or
ownership interest in the Premises or any part thereof by reason of the fact that the same entity
may acquire or own or hold, directly or indirectly, (a) this Lease or any sublease or any leasehold
or subleasehold estate created hereby or thereby or any interest in this Lease or any such sublease
or in any such leasehold or subleasehold estate and (b) the fee estate or other estate or ownership
interest in the Premises or any part thereof.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Surrender</U>.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U>Upon the expiration or earlier termination of the Term, Lessee shall peaceably leave and surrender
the Premises to Lessor in the same condition in which the Premises was originally received from Lessor,
except as repaired, rebuilt, restored, altered or added to as required by or permitted by this Lease;
ordinary wear and tear excepted.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U>Lessee shall remove from the Premises on or prior to such expiration or earlier termination all property
which is not the property of Lessor, and shall repair any damage caused by such removal.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U>All fixed assets installed by Lessee after the date first written above remain the properly of Lessee,
upon termination, provided the same are removed by Lessee in accordance with paragraph (b) of this
Section 24.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-21-</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U>Except for surrender upon the expiration or earlier termination of the Term hereof, no surrender to Lessor of this Lease or of the Premises shall be valid or effective unless
agreed to and accepted in writing by Lessor.</FONT></p>
<p><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U>Separability</U>.</FONT>
</p>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If any provision of this Lease or the application thereof to any Person or circumstance shall be invalid
or unenforceable, the remainder of this Lease, or the application of such provision to persons or
circumstances other than those as to which it is invalid or unenforceable, shall not be affected
thereby, and each provision of this Lease shall be valid and enforceable to the extent permitted
by law.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U>Signs</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessor shall not, at any time without Lessee&#146;s consent (not to be unreasonably withheld or delayed),
place on or about the Premises any signs, including &#147;For Sale&#148; signs except for signs identifying
the Sheriff&#146;s Offices or related to the activities conducted therein. Lessee shall have the
right to place, construct and maintain on the Premises one or more signs identifying Lessee, any
assignee or sublessee and advertising any business located at the Premises that is permitted under
this Lease, subject to compliance with all applicable Governmental Requirements.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U>Recording</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Lessor and Lessee will execute, acknowledge, deliver and cause to be recorded in the manner and place
required or permitted by any present or future law, a memorandum hereof, and all other instruments,
including financing statements, continuation statements, releases and instruments of similar character,
which shall be reasonably requested by Lessor or Lessee as being necessary or appropriate to protect
their respective interests in the Premises.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Lessee&#146;s Right Of First Refusal</U>.</FONT>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U>To the extent permitted by law, if during the Term Lessor determines to sell, transfer, or exchange
the Premises, or any part thereof, Lessor shall first notify Lessee of the terms of such transaction.
If a Lessee Entity, within thirty (30) days after Lessee&#146;s receipt of Lessor&#146;s notice,
indicates in writing its agreement to purchase the Premises or part of the Premises on the terms
stated in Lessor&#146;s notice, including terms of any required down payment and delivery to Lessor
of such down payment, Lessor shall sell and convey the Premises or a part thereof to such Lessee
Entity on the terms stated in the notice. If a Lessee Entity does not so indicate its agreement within
thirty days, Lessor thereafter shall have the right to sell and convey the Premises or a part of
the Premises to a third party on substantially the same material terms as stated in the notice. If
Lessor does not sell and convey the Premises or part of the Premises within one hundred eighty days
following the date of notice given to Lessee, any further sale shall be deemed a new determination
by Lessor to sell and convey the Premises or a part of the Premises, and the provisions of this Section
shall be applicable.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U>The right of first refusal set forth in this Article shall not apply to any foreclosure sale or any
transfer of the Premises by deed in lieu of foreclosure. All</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-22-</FONT></P>
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<P align=left><FONT face="Times New Roman, Times, Serif" size=2>indebtedness of Lessor to Lessor&#146;s Mortgagee shall be paid in full to Lessor&#146;s Mortgagee
or assumed by the purchaser from Lessor in connection with any sale of the Premises or any part thereof.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Time is of the Essence</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Time is of the essence of this Lease and of the performance of each provision hereof.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Miscellaneous</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Subject to the limitations on Lessee&#146;s assignment and subletting set forth in Section 19 hereof,
this Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. This Lease may not be amended, changed, waived, discharged or terminated
orally, but only by an instrument executed by the party against whom enforcement is sought. No failure,
delay, forbearance or indulgence in exercising any right, power or privilege hereunder shall operate
as a waiver thereof, or as an acquiescence in any breach, nor shall any single or partial exercise
of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. This Lease and the rights and obligations in respect hereof
shall be governed by, and construed and interpreted in accordance with, the laws of the State of
Texas. This Lease may be executed in any number of counterparts, each of which shall be an original,
and such counterparts together shall constitute but one and the same instrument.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Broker</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Each of the parties hereto represent and warrant to the other that no commissions or fees are due and
payable to any broker or other person as a result of the execution, delivery or performance of this
Lease by the warranting party, and each party agrees, to the extent permitted by law, to indemnify,
defend and hold the other party harmless from and against all claims for commissions or other brokerage
claims by an person claiming by, through or under the indemnifying party.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Interpretation</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease
and are not a part of the terms or provisions of this Lease. Whenever required by the context of
this Lease, the singular shall include the plural and the plural shall include the singular. For
convenience, each party hereto is referred to in the neuter gender, but the masculine, feminine and
neuter genders shall each include the other. In any provision relating to the conduct, acts or omissions
of Lessee, the term &#147;Lessee&#148; shall include Lessee&#146;s agents, employees, contractors,
invitees, successors or others using the Premises with Lessee&#146;s expressed or implied permission.</FONT></P>
<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U></U><U></U><U>Termination of Prior Agreements; Modifications</U>.</FONT>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Lease is the only agreement between the parties pertaining to the Premises and no other agreements
are effective, except for that certain Contract between Lessor</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-23-</FONT></P>
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<P><FONT face="Times New Roman, Times, Serif" size=2>and Lessee whereby Lessee agrees to pay Lessor $1,700,000. All amendments to this Lease shall be in
writing and signed by all parties. Any other attempted amendment shall be void. All prior agreements
between the parties are hereby terminated, including any agreements Lessee acquired from Dove Development
Corporation. Lessee agrees to execute any required termination statements or releases requested by
Lessor. Lessor and Lessee shall enter into a separate management and operations agreement dated of
even date herewith with regard to the housing of Lessor Inmates.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Venue</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All obligations hereunder shall be performable and payable in the county in which the Property is located.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The laws of the State of Texas shall govern this Lease.<BR><BR></FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Waiver</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>None of Lessor&#146;s obligations herein nor any other terms or provisions of this Lease are intended
or shall operate as a waiver by Lessor of any immunities, limitations of liability, or other rights
afforded Lessor under the Texas Tort Claims Act, V.T.C.A., Civil Practice &amp; Remedies Code &#167;
101.001 <I>et seq., </I>including all amendments and successor statutes thereto.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pre-Existing Agreements</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All obligations connected to the Lease-Purchase Agreements set forth below will be extinguished by
Lessor purchasing the property covered by such Agreements at the earliest date such option may be
exercised:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease Purchase Agreement dated September 1, 1987, between Consolidated Financial Resources, Inc. (&#147;CFR&#148;), as lessor, and the County, as lessee;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease Purchase Agreement dated June 1, 1988, between CFR, as
lessor, and County, as lessee; and</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal Lease Purchase Agreement dated April 19, 1994, between
County, as lessee and CFR, as lessor.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>38. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Payments and Notices</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All payments and notices under this Lease shall be sent to:</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="50%"><font face="Times New Roman, Times, Serif" size=2>LESSOR at:<br>
      Frio County Auditor<br>
      FRIO COUNTY COURTHOUSE<br>
      500 E. San Antonio St. <br>
      Box 3<br>
      Pearsall, TX 78061-3100 </font></td>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2>LESSEE at:<br>
      </FONT><FONT face="Times New Roman, Times, Serif" size=2>Chief Financial Officer<br>
      </FONT><FONT face="Times New Roman, Times, Serif" size=2>CORRECTIONAL SERVICES CORPORATION<br>
      </FONT><FONT face="Times New Roman, Times, Serif" size=2>1819 Main Street, Suite 1000<br>
      Sarasota, FL 34236</FONT> </td>
  </tr>
</table>
<P align="center"><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-24-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, Lessor and Lessee have caused this Lease to be duly executed and delivered as of
the date first written above.</FONT></P>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=45% vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Lessor:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>FRIO COUNTY</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By:<U>/s/ Carlos A. Garcia &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title: <U>Co. Judge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Date: <U>11-26-97 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Lessee:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>CORRECTIONAL SERVICES </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>CORPORATION, a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><font face="Times New Roman, Times, Serif" size=2>By:</font><font size="2" face="Times New Roman, Times, serif">&nbsp;<u>/s/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top nowrap><font face="Times New Roman, Times, Serif" size=2>Title:&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif"><u>EVP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Date: <U>11/24/97 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-25-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=right><FONT face="Times New Roman, Times, serif" size=2>Exhibit A</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>OUT OF COURTHOUSE SQUARE<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>COUNTY OF FRIO<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>PEARSALL, TEXAS</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Field notes of 0.327 acres of land out of Courthouse Square of the City of Pearsall, Frio County, Texas
according to a plat thereof recorded in the Map and Plat Records of said Frio County and is described
by metes and bounds as follows:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Begin at the intersection of the prolongation of the north line of East Medina Street with the west
line of said Courthouse Square and being in the east line of South Walnut Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min E, with the common line of said Courthouse Square and South Walnut Street, 83.6
feet to the northwest corner of this tract;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 75 deg 00 min E, passing 10 feet northerly of the old Sheriff&#146;s Office and Jail, 148.6
feet to the northeast corner of this tract;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 15 deg 00 min W, passing 4.4 feet westerly of the old Sheriff&#146;s House, at 83.6 feet pass
the prolongation of said East Medina Street and continuing on the same course 96.0 feet in all to
the southeast corner of this tract being in the north line of East Medina Street, a concrete and
stone curb, as now maintained and used;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 75 deg 00 min W, partly with said curb, 148.6 feet to the southwest corner of this tract in
the common line of said South Walnut Street and said west line of Courthouse Square;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min E, with said common line, 12.4 feet to the place of beginning.</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=right><FONT face="Arial, Helvetica, sans-serif" size=2>Exhibit A</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>COUNTY OF FRIO<br>
</FONT><FONT face="Times New Roman, Times, Serif" size=2>JAIL FACILITIES LEASE</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U><b>BLOCK 68</b></U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Field notes of 1.674 acres of land out of Block 68 of the City of Pearsall, Frio County, Texas according
to plats thereof recorded in the Map and Plat Records of Frio County, Texas; said 1.674 acre tract
being all of said Block 68 and is described by metes and bounds as follows:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Begin at a stake for the southwest corner of said Block 68 at the intersection of the east line of
South Cedar Street with the north line of East Leona Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min 00 sec E, with the common line of said South Cedar Street and said Block 68,
270.00 feet to a stake for the northwest corner of said Block 68 in the south line of East Medina
Street;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Thence S 75 deg 00 min 00 sec E, with the common line of said East Medina Street and said Block 68,
270.00 feet to a stake for the northeast corner of said Block 68 in the west line of South Chestnut
Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 15 deg 00 min 00 sec W, with the common line of said South Chestnut Street and said Block
68, 270.00 feet to a stake for the southeast corner of said Block 68 in the north line of said East
Leona Street;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Thence N 75 deg 00 min 00 sec W, with the common line of said East Leona Street and said Block 68,
270.00 feet to the place of beginning.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U><b>CITY OF PEARSALL, EAST MEDINA STREET</b></U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Field notes of 0.496 acres of land in the City of Pearsall, Frio County, Texas being a part of East
Medina Street according to plats of said City recorded in the Map and Plat Records, Frio County,
Texas and is described by metes and bounds as follows:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Begin at the northwest corner of Block 68, said City of Pearsall, and being at the intersection of the
south line of said East Medina Street with the east line of South Cedar Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min 00 sec E, crossing said East Medina Street, 80.00 feet to a stake for the southwest
corner of Block 67, said City of Pearsall and being at the intersection of the north line of said
East Medina Street with the east line of said South Cedar Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 75 deg 00 min 00 sec E, with the common line of said East Medina Street and said Block 67,
270.00 feet to a stake for the southeast corner of said Block 67 at the intersection of the north
line of said East Medina Street with the west line of South Chestnut Street;</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Page 1</FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 15 deg 00 min 00 sec W, crossing said East Medina Street, 80.00 feet to a stake for the northeast
corner of said Block 68 at the intersection of the south line of said East Medina Street with the
west line of said South Chestnut Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 75 deg 00 min 00 sec W, with the common line of said East Medina Street and said Block 68,
270.00 feet to the place of beginning.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2><U><b>BLOCK 67</b></U></FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Field notes of 1.255 acres of land out of Block 67 of the City of Pearsall, Frio County, Texas according
to plats thereof recorded in the Map and Plat Records of Frio County, Texas; said 1.255 acre tract
being all of said Block 67 except its northwest one-fourth and is described by metes and bounds as
follows:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Begin at a stake for the southwest corner of said Block 67, being at the intersection of the north
line of East Medina Street and the east line of South Cedar Street; said stake also being the southwest
corner of that certain tract conveyed by Sidney J. Williams, III to Dove Development Corp. by deed
dated November 28, 1994 and recorded in Volume 840, page 367, Frio County Deed Records;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min 00 sec E, with the common line of said South Cedar Street and said Block 67
and the west line of said Williams tract, 135.00 feet to a stake for the northwest corner of said
Williams tract;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 75 deg 00 min 00 sec E, with the north line of said Williams tract, 135.00 feet to a stake
for the southwest corner of that certain 0.418 acre tract conveyed Juanita G. Trevino to Dove Development
Corp. by deed dated September 20, 1994 and recorded in Volume 837, page 255, said Deed Records;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>Thence N 15 deg 00 min 00 sec E, with the west line of said 0.418 acre tract, 135.00 feet to a stake
for its northwest corner in the north line of said Block 67 and the south line of East San Antonio
Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 75 deg 00 min 00 sec E, with the common line of said East San Antonio Street and said Block
67 and the north line of said 0.418 acre tract, 135.00 feet to a stake for the northeast corner of
said 0.418 acre tract and the northeast corner of said Block 67 at the intersection of the south
line of said East San Antonio Street and the west line of South Chestnut Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence S 15 deg 00 min 00 sec W, with the common line of said Block 67 and said South Chestnut Street,
at 135.00 feet pass the southeast corner of said 0.418 acre tract and the northeast corner of that
certain tract conveyed by Artemio Trevino to Dove Development Corp. by deed dated November 10, 1994
and recorded in Volume 839, page 437, said Deed Records and continuing on the same course, 270.00
feet in all to a stake for the southeast corner of said second-mentioned Trevino tract, the southeast
corner of said Block 67 and being at the</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Page 2 </FONT></P>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>intersection of the west line of said South Chestnut Street with the north line of said East Medina
Street;</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>Thence N 75 deg 00 min 00 sec W, with the common line of said Block 67 and said East Medina Street,
at 135.00 feet pass the southwest corner of said second-mentioned Trevino tract and the southeast
corner of said Williams tract, and continuing on the same course, 270.00 feet in all to the place
of beginning.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2>The above field notes were prepared in part from surveys made by me on the ground and in part from field notes of record on this, the 18th day of September, 1997.<br>
    Carroll and Schorp</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">/s/ James Schorp</font></td>
  </tr>
  <tr>
    <td><font face="Times New Roman, Times, Serif" size=2>James Schorp<br>
Registered Professional Land Surveyor</font> </td>
  </tr>
</table>
<br>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>Page 3 </FONT></P>
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<FILENAME>ex10-87.htm
<DESCRIPTION>EXHIBIT 10.87
<TEXT>
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<P align=right><FONT size=2><b>Exhibit 10.87</b></FONT></P>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><b>LEASE AGREEMENT</b><br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>FIRST AMENDMENT</U></FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THIS AMENDMENT (this &#147;Amendment&#148;) is made and entered into effective as of January 1, 2001
(regardless of the date on which this document is executed by the parties) by and between FRIO COUNTY,
TEXAS, a political subdivision of the State of Texas (the &#147;Lessor&#148;), and CORRECTIONAL SERVICES
CORPORATION, a Delaware corporation (the &#147;Lessee&#148;), for the purposes of amending that certain
Lease Agreement, dated as of November 26, 1997, by and between the Lessor and the Lessee for the
property known generally as the Frio County Detention Center (the &#147;Lease Agreement&#148;).</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Witnesseth:</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the original term of the Lease Agreement commenced on or about December 15, 1997 and is scheduled
to expire on December 1, 2009; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Lessor and the Lessee have determined that it would be in their mutual best interests
to extend the term of Lease Agreement for an additional 5 years beyond its stated termination date
of December 1, 2009; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Lessor expects to derive economic and other benefits from the extension of the term of
the Lease Agreement; and</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Lessor and the Lessee desire to amend and restate certain of the provisions of the Lease
Agreement in order to reflect the foregoing;</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, in light of the foregoing, and in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are acknowledged by each of the parties, the Lessor and the Lessee hereby memorialize their agreement
as follows:</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Extension of the Term of the Lease Agreement</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Section 3(a) of the Lease Agreement shall be, and is hereby, amended and restated to read as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=100>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&#147;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the provisions hereof, Lessee shall hold the Premises for a term (the <U>Term</U>) which shall begin on the date that all outstanding debt of the Lessor relating to the Premises is
discharged and title to the Premises has been conveyed to Lessor and end at midnight on December
1, 2014, unless sooner terminated as expressly provided herein.&#148;</FONT></TD>
</TR>
</TABLE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U></U><U>Rent and Other Consideration</U>.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Section 4(a) of the Lease Agreement currently recites that: &#147;On the Effective Date, Lessee shall
  pre-pay one hundred forty-four (144) months [twelve (12) years] of rent equaling</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>1</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>$4,500,000 (<U>Basic Rent)</U> for the Premises to Lessor.&#148; Lessor acknowledges that it has received such payment from Lessee,
and that it has agreed to extend the term of the Lease Agreement, as provided for herein, without
requiring that Lessee pay any additional Basic Rent to Lessor, in consideration of the economic benefits
to be derived by Lessor from such an extension. Therefore, it is agreed between Lessor and Lessor
that the $4,500,000 payment previously received from Lessee as Basic Rent for the Premises shall
hereafter be considered to be a pre-payment by Lessee of Basic Rent for the entire term of the Lease,
as extended hereby (i.e., for two hundred four (204) months [seventeen (17) years] of Basic Rent
for the Premises).</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Consideration to County for Extension of Lease</U>. &nbsp;&nbsp;&nbsp;In consideration of the Lessor&#146;s agreement to extend the term of the Lease as provided for herein, Lessee agrees to pay $10,000. In addition, effective as of December 1, 2009, and continuing throughout
the remainder of the term of the Lease, the $1 per day limit on the amount of funds payable to the
Lessor by the Lessee under Section 4(e) of the Lease shall be increased to $1.50 times the number
of non-Lessor Inmates times the number of days of incarceration of non-Lessor Inmates.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Effect on Other Provisions of the Lease Agreement</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Amendment, if and when executed, shall become a substantive part of the Lease Agreement. Except
to the extent expressly provided for herein, nothing contained in this Amendment is intended to amend
or modify any of the other terms, conditions or provisions of the Lease Agreement, all of which shall
remain in full force and effect, and are hereby ratified and confirmed by the Lessor and the Lessee.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Amendment may be executed in one or more counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an original document, but all
of which counterparts shall together constitute one and the same instrument.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The terms of this Amendment constitute the entire agreement and understanding of the parties hereto
with respect to the matters herein set forth, and all prior negotiations, writings and understandings
relating to the subject matter of this Amendment are merged herein and are superseded and canceled
by this Amendment.</FONT></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation</U>.</FONT></P>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The headings of the paragraphs of this Amendment have been inserted for convenience of reference only
and shall not be considered in interpreting this Amendment. With respect to each and every term and
provision in this Amendment, the parties understand and agree that the same have or has been mutually
negotiated, prepared and drafted, and that if at any time the parties hereto desire or are required
to interpret or construe any such term or provision, no consideration</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>2</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Times New Roman, Times, Serif" size=2>shall be given to the issue of which party hereto actually prepared, drafted or requested any term
or condition of this Amendment.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="7%" nowrap><FONT face="Times New Roman, Times, serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> </td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
    <td width="7%"><font size="2" face="Times New Roman, Times, serif">*</font></td>
  </tr>
</table>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the parties have executed this Amendment intending it to become effective between
them as of the date set forth above.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="32%"><font face="Times New Roman, Times, Serif" size=2>ATTEST:</font></td>
    <td width="18%">&nbsp;</td>
    <td colspan="3"><font face="Times New Roman, Times, Serif" size=2>FRIO COUNTY, TEXAS</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left" valign="bottom" nowrap>&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Times New Roman, Times, serif">/s/ Gloria L. Cubriel </font></td>
    <td>&nbsp;</td>
    <td width="2%" align="left" valign="bottom"><font face="Times New Roman, Times, Serif" size=2>By:&nbsp;</font></td>
    <td valign="bottom" STYLE="BORDER-BOTTOM:1px solid #000000;"><div align="left"><font size="2" face="Times New Roman, Times, serif">/s/ Carlos A Garcia </font></div></td>
    <td width="5%" valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td rowspan="4"><font face="Times New Roman, Times, Serif" size=2>Gloria L. Cubriel <br>
      Frio County Clerk<br>
      Ex Officio Clerk of<br>
      the Frio County <br>
      Commissioners Court</font></td>
    <td rowspan="3">&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>The Honorable Carlos Garcia<br>
    County Judge</font></td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="left" valign="top">&nbsp;</td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3" rowspan="2" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>With the Consent and Authorization of the County Court of Commissioners of Frio County, Texas</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3" align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3" align="left" valign="top"><font face="Times New Roman, Times, Serif" size=2>CORRECTIONAL SERVICES CORPORATION</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3" align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left" valign="top" nowrap><font face="Times New Roman, Times, Serif" size=2>By:</font></td>
    <td align="left" valign="top" STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Times New Roman, Times, serif">/s/ James F. Slattery </font></td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="left" valign="top" nowrap>&nbsp;</td>
    <td align="left" valign="top"><FONT face="Times New Roman, Times, Serif" size=2>James F. Slattery <br>
    </FONT><FONT face="Times New Roman, Times, Serif" size=2>President and Chief Executive Officer</FONT></td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3</FONT></P>
<HR color=#000000 noShade>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>14
<FILENAME>ex10-88.htm
<DESCRIPTION>EXHIBIT 10.88
<TEXT>
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<BODY>

<P align=right><FONT face="Arial" size=2><b>Exhibit 10.88</b></FONT></P>

<P align="center"><FONT face="Arial" size=2>LEASE AGREEMENT<br>
SECOND AMENDMENT</FONT></P>
<P align=left><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS SECOND AMENDMENT (the &#147;Second Amendment&#148;) is made and entered into this the 22 day of February, 2001, by and between FRIO COUNTY, TEXAS, a political subdivision of the State of Texas, (the &#147;Lessor&#148;),
and CORRECTIONAL SERVICES CORPORATION, a Delaware corporation (the &#147;Lessee&#148;), for the purposes
of amending that certain Lease Agreement of the 26<sup>th</sup> day of November, 1997, by and between the Lessor
and Lessee for the property known as the Frio County Detention Center (the &#147;Detention Center&#148;).</FONT></P>
<P align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>Witnesseth: </FONT></P>
<P align=left><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the original term of the Lease Agreement commenced on or about the 15<sup>th</sup> day of December, 1997,
and was scheduled to expire on the 1<sup>st</sup> day of December, 2009; and</FONT></P>
<P align=left><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in consideration by Lessor for the extension of the Lease Agreement for a 5-year term to expire
on the 1<sup>st</sup> day of December, 2014, Lessee agrees to amend and add language to provisions of the Lease
Agreement to reflect the foregoing:</FONT></P>
<P align=left><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in light of the foregoing, and in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are acknowledged by each of the parties, the Lessor and Lessee hereby memorialize their agreement
as follows:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2><U>Amending Section 4 (f) &#147;Rent and Other Consideration.&#148; of the Lease Agreement</U><br>
  <br>
  Section 4(f) of the Lease Agreement shall be, and is hereby, amended by adding the following language: </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>&#147;It is further agreed and understood by Lessee that Lessee will remit to Lessor $ 1.00 per diem per non-Lessor prisoner incarcerated in the Detention Center on a quarterly basis, and, if the remittance is not received within a 30-day grace period following the end of such quarter, then such overdue payments due and owing to Lessor will be assessed a late charge that will be compounded at a monthly rate of 1.16% or the maximum provided by law, which ever is less.&#148;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2><U>Amending Section 4 (h) &#147;Rents and Other Consideration&#148; of the Lease Agreement </U><br>
  <br>
      &#147;Any funds, fees, or any other monies payable by Lessor to Lessee under
      Intergovernmental Agreements which relate to the Detention Center will comply
      with V.T.C.A., Government Code, Section 2251.02, and will be due and payable
      on the 31<sup>st</sup> day after the day that Lessor a) received the goods
      under the lease under the Lease Agreement or b) after the performance of
      the service under the Lease Agreement is completed, or c) after receiving
      an invoice for the goods or services under the Lease Agreement.&#148;</FONT></TD>
</TR>
</TABLE>
<P align=center>&nbsp;</P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Second Amendment to me previously described Lease Agreement between Lessor and Lessee is incorporated in full into such Lease Agreement as if it had been originally agreed to on the date of
the execution of the Lease Agreement.</FONT></P>
<P><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Lessor and Lessee have caused this Second Amendment to the Lease Agreement to be duly executed and delivered as of the date first written above.</FONT></P>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif" size=2>ATTEST:</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif" size=2>LESSOR:</font></td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2" STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Arial, Helvetica, sans-serif">/s/ GLORIA LEAL CUBRIEL</font></td>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td nowrap><font face="Arial, Helvetica, sans-serif" size=2>By:</font></td>
    <td STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Arial, Helvetica, sans-serif">/s/ CARLOS A. GARCIA</font></td>
  </tr>
  <tr>
    <td colspan="2"><FONT face="Arial, Helvetica, sans-serif" size=2>GLORIA LEAL CUBRIEL<br>
      Frio County Clerk </FONT></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif" size=2>CARLOS A. GARCIA<br>
      Frio County Judge</font></td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font size="2" face="Arial, Helvetica, sans-serif">Date:</font></td>
    <td align="left" valign="top" STYLE="BORDER-BOTTOM:1px solid #000000;"><font size="2" face="Arial, Helvetica, sans-serif">March 5, 2002</font></td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="3"><p><FONT face="Arial, Helvetica, sans-serif" size=2>LESSEE:</FONT>
          </p>
    </td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif" size=2>CORRECTIONAL SERVICES CORPORATION</font><font face="Arial, Helvetica, sans-serif" size=2><br>
A Delaware Corporation</font></td>
    <td align="left" valign="top">&nbsp;</td>
    <td align="left" valign="top" nowrap>&nbsp;</td>
    <td align="left" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="4%"><font face="Arial, Helvetica, sans-serif" size=2>By:</font></td>
    <td width="25%" STYLE="BORDER-BOTTOM:1px solid #000000;"><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;/s/ JAMES F. SLATTERY</FONT></td>
    <td width="10%" align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="3%" align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="25%" align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td nowrap><font face="Arial, Helvetica, sans-serif" size=2>Title:</font></td>
    <td STYLE="BORDER-BOTTOM:1px solid #000000;"><font face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;CEO</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif" size=2>Date:</font></td>
    <td STYLE="BORDER-BOTTOM:1px solid #000000;"><font face="Arial, Helvetica, sans-serif" size=2> &nbsp;&nbsp;2/22/02</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top" nowrap><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="left" valign="top"><font face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>15
<FILENAME>ex10-89.htm
<DESCRIPTION>EXHIBIT 10.89
<TEXT>
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<P align=right><FONT size=2><b>Exhibit 10.89</b></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR align="right">
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="right">
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">EXECUTION COPY </font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=6 vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>MANAGEMENT AGREEMENT</B></FONT></TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>between</B></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>Phoenix West Prison L.L.C., </B><B><br>
      as Owner</B></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>and</B></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>Correctional Services Corporation, </B><B><br>
      as Manager</B></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Dated as of July 31, 2002</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>

<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<table cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=7% height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>1.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#common">Common understandings</a></font></td>
    <td width=3% height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2</font></td>
    <td width=2% height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>2.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#management">Management Services</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>3.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#term">Term</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>4.</font></td>
    <td height="26" align=LEFT><a href="#personnel"><font face="Times New Roman, Times, Serif" size=2>Personnel</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>5.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#approvals">Approvals</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>6.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#purchase">Purchase of the Prison by the Department</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>7.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#equipment">Equipment and Supplies</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>8.</font></td>
    <td height="26" align=LEFT><a href="#financial"><font face="Times New Roman, Times, Serif" size=2>Financial Matters</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>9.</font></td>
    <td height="26" align=LEFT><a href="#payment"><font face="Times New Roman, Times, Serif" size=2>Payment for Services</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>10.</font></td>
    <td height="26" align=LEFT><a href="#intellectual"><font face="Times New Roman, Times, Serif" size=2>Intellectual Property</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>11.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#insurance">Insurance</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>12.</font></td>
    <td height="26" align=LEFT><a href="#cooperation"><font face="Times New Roman, Times, Serif" size=2>Cooperation</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>13.</font></td>
    <td height="26" align=LEFT><a href="#records"><font face="Times New Roman, Times, Serif" size=2>Records</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>14.</font></td>
    <td height="26" align=LEFT><a href="#confidentiality"><font face="Times New Roman, Times, Serif" size=2>Confidentiality </font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>15.</font></td>
    <td height="26" align=LEFT><a href="#Grievances"><font face="Times New Roman, Times, Serif" size=2>Grievances</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>16.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#representations1">Representations and Warranties of Manager</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>17.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#representations2">Representations and Warranties of Owner</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>18.</font></td>
    <td height="26" align=LEFT><a href="#indemnification"><font face="Times New Roman, Times, Serif" size=2>Indemnification</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>19.</font></td>
    <td height="26" align=LEFT><a href="#dispute"><font face="Times New Roman, Times, Serif" size=2>Dispute Resolution</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>20.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#termination">Termination</a></font></td>
    <td height="26" align=RIGHT><font size="2" face="Times New Roman, Times, Serif">10</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>21.</font></td>
    <td height="26" align=LEFT><a href="#effect"><font face="Times New Roman, Times, Serif" size=2>Effect of Termination</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>22.</font></td>
    <td height="26" align=LEFT><a href="#amendment"><font face="Times New Roman, Times, Serif" size=2>Amendment</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>23.</font></td>
    <td height="26" align=LEFT><a href="#force"><font face="Times New Roman, Times, Serif" size=2>Force Majeure</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>24.</font></td>
    <td height="26" align=LEFT><a href="#relationship"><font face="Times New Roman, Times, Serif" size=2>Relationship of the Parties</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>25.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#governing">Governing Law</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>26.</font></td>
    <td height="26" align=LEFT><a href="#entire"><font face="Times New Roman, Times, Serif" size=2>Entire Agreement</font></a></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>27.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#notices">Notices</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>28.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#counterparts">Counterparts</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>29.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#invalidity">Invalidity</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>30.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#assignment">Assignment</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>31.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#waiver">Waiver</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>32.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#survival">Survival</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<table width=100% border=0 cellpadding=0 cellspacing=0>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width="7%" height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>33.</font></td>
    <td height="26" align=LEFT><a href="#further"><font face="Times New Roman, Times, Serif" size=2>Further Assurances</font></a></td>
    <td width="3%" height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13</font></td>
    <td width="2%" height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>34.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#litigation">Litigation</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>35.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#third">Third Party Rights</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>36.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#nonrecourse">Nonrecourse Obligation</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>37.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#disclaimer">Disclaimer Regarding the Condition of the Property</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>38.</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#miscellaneous">Miscellaneous</a></font></td>
    <td height="26" align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14</font></td>
    <td height="26" align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=20% vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>SCHEDULE 1:&nbsp;</FONT></TD>
    <TD vAlign=top><a href="#management1"><FONT face="Times New Roman, Times, Serif" size=2>MANAGEMENT FEES</FONT></a></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>ii</FONT></P>
<HR color=#000000 noShade>
<P style="PAGE-BREAK-BEFORE: always">
<PAGE>


<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font SIZE=2>MANAGEMENT AGREEMENT</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>THIS AGREEMENT, was duly executed as of the 31st day of July, 2002, between Phoenix West Prison L.L.C., (the &#147;Owner&#148;), an Arizona limited liability company, the sole member of which is Community Finance Corporation, an Arizona non-profit corporation, and Correctional Services Corporation (&#147;Manager&#148;), a Delaware corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, the Owner owns the prison facility known as the Phoenix West Private Prison (the &#147;Prison&#148;); and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, Owner financed the purchase of the Prison with the proceeds of loan made to the Owner by The Industrial Development Authority of the County of Maricopa (the &#147;Issuer&#148;), which issued its &#147;The Industrial Development Authority of the County of Maricopa Correctional Facilities Contract Revenue Bonds (Phoenix West Prison L.L.C. Project), Series 2002A&#148; and &#147;The Industrial Development Authority of the County of Maricopa Correctional Facilities Contract Revenue Bonds (Phoenix West Prison L.L.C. Project) Series 2002B (Taxable)&#148; (jointly, the &#147;Bonds&#148;) pursuant to that certain Trust Indenture between the Issuer and National Bank of Arizona, as Trustee, dated as of July 1, 2002 (the &#147;Trust Indenture&#148;) in order to provide financing for, among other things, the purchase by the Owner of the Prison;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, the Manager has entered into Contract No. 010039DC (the &#147;Contract&#148;) with the State of Arizona Department of Corrections (the &#147;Department&#148;) for the Provision, Operation, and Management of a Secure Private Prison and has agreed to operate and manage the Prison pursuant to Arizona Revised Statutes &sect; 41-1609 </font><i><font size=2>et seq </font></i><font size=2>(the &#147;Act&#148;), which governs private prisons in the State of Arizona, RFP Number 7064 and the Contract; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, it is the intent of the parties hereto that the Department maintain a high level of oversight and control in the operation and management of the Prison; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, to that end, in the event of a conflict between the terms of the Contract and the terms hereof, the terms of the Contract will prevail; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, subject to the terms of this Agreement, the Owner may not terminate or replace the Manager without the prior written consent of the Department; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS,
  the Department may elect to terminate the services of the Manager and manage
  the facility itself, provided that the Department makes all payments required
  by Section 5.04 of the Indenture with the exception of payments required under
  the FIFTH, SIXTH, TENTH, AND ELEVENTH paragraphs of Section 5.04 of the Indenture;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, the Department has the option at any time during the initial term of the Contract, or any renewal thereof, to purchase the Prison in accordance with the terms of the Contract; and</font></p>
<p><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, Manager is in the business of managing prisons and desires to provide management services to the Owner in connection with the operation of its Prison pursuant to the Contract; and</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, the Owner regards Manager&#146;s expertise and experience to be critical to the successful operation of the Prison in the manner contemplated by the Contract, and the Owner desires to obtain the services of Manager to assist in the operation of the Prison;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, the Manager shall have the ultimate responsibility for the operation and management of the Prison, and shall be responsible for all interaction with the Department in matters relating to performance under the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the mutual covenants contained herein,</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in;text-align:left;'><font SIZE=2>IT IS AGREED AS FOLLOWS:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>1.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="common"></a>Common understandings</b>. &nbsp;&nbsp;&nbsp;Manager and the Owner both acknowledge the following as of the date of this Agreement:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>This Agreement and the rights and obligations of the parties hereunder shall be subject to the terms, provisions and conditions of the Contract. In the event of a conflict between the terms of the Contract and the terms hereof, the terms of the Contract will prevail.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Prison will be a prison as described in the Contract, and Manager shall maintain in full force and effect any licenses, certifications or permits required for the operation of the Prison.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Manager shall have the authority and responsibility to make contracts and leases for the procurement of services, equipment and supplies and for operation of the Prison, subject to any limitations set forth in the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Manager needs to have considerable discretion in the exercise of its responsibilities under this Agreement in order to manage the Prison. Subject to the limitations expressly set forth in this Agreement or applicable by law, therefore, Manager shall be entitled to fulfill its obligations hereunder in the manner that it determines is appropriate or necessary within the policies established by the Department and in a manner consistent with the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>The Manager shall be solely responsible for the establishment of, and shall establish, policy and procedures for the Prison in a manner consistent with the policies of the Department and consistent with the terms of the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(f)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Capitalized terms used herein without further definition shall have the meanings assigned to such terms in the Trust Indenture.</font></p>
<P align=center><font size="2" face="TIMES NEW ROMAN, TIMES, SERIF">2</font></P>
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<p style=' margin-bottom:0pt; margin-top:3pt; text-indent:0.5in;text-align:left;'><font size=2><a name="management"></a>2.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Services.</b> &nbsp;&nbsp;Manager will manage and operate the Prison subject to the terms of this Agreement and in a manner consistent with the Act, which governs private prisons in the State of Arizona, RFP Number 7064 and the Contract Manager shall provide or ensure the provision of the following services in connection with the Prison and its operations:</font></p>
<p style=' margin-bottom:0pt; margin-top:3pt; text-indent:0.5in;text-align:left;'>&nbsp;</p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="left" valign="top">
    <td width="8%">&nbsp;</td>
    <td width="8%">&nbsp;</td>
    <td width="8%"><font size=2>(a)</font></td>
    <td><font size=2>Business administration, including budgeting, financial and other recordkeeping, audits, </font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="3"><font size=2>and regulatory compliance;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(b)</font></td>
    <td><font size=2>Acquisition of instructional materials, equipment, and supplies;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(c)</font><font size=1>&nbsp;</font></td>
    <td><font size=2>All maintenance (including cleaning services), repair and replacement of Prison </font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="3"><font size=2>facilities and equipment;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(d)</font><font size=1>&nbsp;</font></td>
    <td><font size=2>Management of Prison affairs, including implementation of policies affecting prisoner </font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td colspan="3"><font size=2>welfare and safety, and visitor relations;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(e)</font></td>
    <td><font size=2>Food service required by the Contract;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(f)</font></td>
    <td><font size=2>Transportation services required by the Contract;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(g)</font></td>
    <td><font size=2>Other special prisoner services required by the Contract;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(h)</font></td>
    <td><font size=2>Payment of all utilities, taxes, and assessments on the Prison and equipment;</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(i)</font></td>
    <td><font size=2>Conduct of grievance procedures and due process hearings required by law; and</font></td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr align="left" valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>(j)</font></td>
    <td><font size=2>All other services required in the Contract.</font></td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>In consideration of the provision of the services described above, Manager shall be paid a management fee.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="term"></a>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Term. </font></b><font size=2>&nbsp;&nbsp;This agreement shall be effective as of the 31st day of July, 2002, and shall continue in effect for ten (10) years from such date or until the earlier termination of this Agreement in accordance with the provisions of paragraph 20 hereof. This agreement may be renewed at the direction of the Department for up to two (2) consecutive terms of five (5) years each beyond the initial 10-year term if the Department elects to renew and extend the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="personnel"></a>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Personnel. </font></b><font size=2>&nbsp;&nbsp;Except as otherwise required by law, all personnel engaged to operate the Prison shall be employed or otherwise contracted for by Manager. Such personnel shall include, without limitation, guards, guards&#146; aides, administrators, and facilities maintenance staff. Manager shall pay all personnel costs, including but not limited to compensation, employment taxes, worker&#146;s compensation and employee benefits, for employees employed by Manager at the Prison. Personnel employed by Manager at the Prison who are issued firearms shall be trained in accordance with the standards of the Department and must comply with applicable laws, rules, and regulations of the Department and the State of Arizona. Each employee shall be recruited and</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>hired by the Manager in accordance with the requirements set forth in Article IV of the Contract and in accordance with all applicable federal and state law. Subject to any limitations imposed by the Contract or by applicable law, Manager shall make all decisions regarding hiring, compensation, termination of employment, assignments, and discipline of such personnel in its sole discretion.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="approvals"></a>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Approvals.</font></b><font size=2>&nbsp;&nbsp;&nbsp;For purposes of any approvals required to be given by Owner, approval may be given from time to time by such person or persons as may be designated in a written instrument signed and dated by the sole member of the Owner and delivered to Manager. Each such designation shall remain in effect until it is expressly revoked in a written instrument signed and dated by the sole member of the Owner and delivered to Manager. Manager shall be entitled to rely on any such designation that Manager believes in good faith to meet the requirements of this Agreement. The person authorized to provide approvals on behalf of the Owner as of the date of this Agreement and until such time of change is Gary Molenda.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="purchase"></a>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Purchase of the Prison by the Department.  </font></b><font size=2>&nbsp;&nbsp;Should the Department exercise its option to purchase the Prison pursuant to the Contract, the Manager shall be responsible for taking all necessary steps, at its cost, to ensure that all responsibilities of the Owner, as the owner and seller of the Prison, under paragraph 3.3 and Article XII of the Contract are fulfilled, prior to the transfer of the Prison by the Owner to the Manager. Upon transfer of the Prison to the Manager by the Owner, the Manager will simultaneously (i) transfer the Prison to the Department in accordance with the provisions of paragraph 3.3 and Article XII of the Contract, and (ii) transfer the purchase price to the Trustee for application in accordance with Section 3.05 of
the Indenture.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="equipment"></a>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Equipment and Supplies. </font></b><font size=2>&nbsp;&nbsp;Manager shall acquire or provide all equipment and supplies necessary for the operation of the Prison; provided however that the Owner shall provide to Manager and make available for Manager&#146;s use in connection with the operation and management of the Prison during the entire term of this Agreement all of the items of furniture, fixture and equipment owned by the Owner and presently located at the Prison. Except as otherwise agreed by the parties in writing, as between the Owner and Manager, all such equipment and supplies shall be the property of the Owner, subject to the rights and interests of the Department therein as provided in the Contract.</font></p>


<a name="financial"></a>
<table border="0" cellspacing=0 cellpadding=0 width="169" style='margin-left:36.35pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td>
        <td width="121" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Matters.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a) </font><i><font size=2>&nbsp;&nbsp;&nbsp;<b>Funds</b>. </font></i><font size=2>The Manager hereby agrees that, for so long as any Bonds remain outstanding under the Trust Indenture, any and all revenues income and receipts of any nature in any form, derived from the operation and management of the Prison (&#147;Prison Revenues&#148;) shall be deposited in the Revenue Fund established under the Trust Indenture, as and when received consistent with the Assignment Agreement by and between Manager and Trustee, and shall be disbursed by the Trustee as provided in the Trust Indenture.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>The Manager shall have the right to requisition funds from the Operating Costs Fund, the Operation and Maintenance Reserve Fund and the Major Maintenance Fund in accordance with the terms of the Trust Indenture in order to pay for the costs of</font></p>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in;text-align:left;'><font size=2>operating, managing, repairing and maintaining the Prison. The amount of $1,850.00 and the Borrower&#146;s pro-rated portion of the Member&#146;s ordinary operating expenses shall be paid to the Owner monthly as part of the Operating Costs prior to the payment of any management fees to the Manager for administration and financial reporting costs expected to be incurred by the Owner related to its ownership of the Project.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><i><font size=2>&nbsp;&nbsp;&nbsp;<b>Liability for revenue shortfalls or unbudgeted expenses.</b> </font></i><font size=2>&nbsp;&nbsp;If Prison Revenues received in any month are insufficient to pay the Operating Costs for the Prison, the Manager will continue to operate the Prison under this Agreement and shall provide for the payment of any shortfalls from the Operation and Maintenance Reserve Fund in accordance with the Trust Indenture. If the Operation and Maintenance Reserve shall be depleted, then the Manager shall advance its own funds to cover any shortfalls between Prison Revenues received and Operating Costs for the Prison. The Owner shall have no obligation, responsibility or liability for any Operating Costs associated with the Prison. In the event that there shall be insufficient Prison Revenues available, either from the
Operating Costs Fund or the Operations and Maintenance Reserve Fund established under the Trust Indenture, to pay for the Operating Costs of the Prison, and the Manager shall advance its own funds to cover any resulting shortfall, such shortfalls shall accumulate and shall be reimbursed to the Manager in accordance with the Trust Indenture if and to the extent that funds become available for the payment of such accumulated shortfalls.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;If, for any reason, during the term hereof (i) the Bonds shall be defeased in full and no Bonds shall be outstanding, (ii) the Owner shall continue to be the owner of the Prison and (iii) the Contract shall remain in force, the Owner and Manager shall negotiate in good faith an appropriate amendment to the foregoing provisions of this Section 8 and Section 9 below, to provide for appropriate provisions related to the cost of operating the Prison and for the payment of a management fee to the Manager.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="payment"></a>9.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for Services. </b>&nbsp;&nbsp;Subject to the availability of funds, the Manager will be entitled to receive, a periodic fixed fee (the &#147;Management Fee&#148;) for its services hereunder during each August 1- July 31 during the term of this Agreement (a &#147;Period&#148;). THE MANAGER UNDERSTANDS AND AGREES THAT ITS MANAGEMENT FEE IS NOT GUARANTEED AND THAT IT SHALL BE PAYABLE ONLY TO THE EXTENT THAT THERE SHALL BE SURPLUS PRISON REVENUES FOLLOWING THE PAYMENT OF DEBT SERVICE ON THE PRISON, OPERATING COSTS AND THE OTHER FEES AND EXPENSES HAVING A PRIORITY OVER THE PAYMENT OF MANAGEMENT FEES TO THE MANAGER AS PROVIDED FOR IN THE TRUST INDENTURE. Such periodic fixed management fee shall be paid in twelve equal monthly installments on the
first calendar day of each month during such Period, commencing September 1, 2002, as provided in Schedule 1. The Management Fee for
subsequent Periods shall be determined by applying the West Urban Consumer Price Index (based on the preceding calendar year) or 4%, whichever is greater, to the Management Fee for the immediately preceding Period.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>In the event that there shall be insufficient funds available to pay the Manager its Management Fee in any given month, any shortfall in the payment of the Management Fees to the Manager shall accumulate and shall be reimbursed to the Manager in accordance with the Trust</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>Indenture if and to the extent that funds become available for the payment of accumulated arrearages in the payment of the Management Fee.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="intellectual"></a>10.<b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2>Intellectual Property.</font></b><font size=2>&nbsp;&nbsp;&nbsp;As between Manager and the Owner, all rights of any nature, including, without limitation, any copyrights and any trademark or service mark rights (together with any goodwill appurtenant thereto) (&#147;Rights&#148;) in and to prison or administrative materials created by Manager, and all rights in and to materials created, adapted or modified by Manager for use in connection with the Prison, shall be owned exclusively by Manager. As between Manager and the Owner, all Rights in and to materials created, adapted or modified by Owner employees for use in connection with the Prison, shall be owned exclusively by the Owner. As between Manager and the Owner, all
Rights in and to materials created, adapted or modified jointly by Owner employees and Manager for use in connection with the Prison shall be owned
jointly by the Owner and Manager and shall be used solely in connection with the operation of the Prison during the term of this Agreement, except as otherwise agreed in writing by the Owner and Manager. Without limiting any of the foregoing, however, Manager hereby grants to the Owner a non-exclusive license, for the term of this Agreement, of the Rights in and to all prison and administrative materials owned by or licensed to Manager and used in connection with the Prison; provided, however, that such license shall extend only to such uses as are necessary for the operation of the Prison and shall not permit any publication, re-sale, sub-license, distribution or other use of such materials for any other purpose.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="insurance"></a>11.&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance.&nbsp;&nbsp; </b>Beginning not later than July 31, 2002, and thereafter during the term of this Agreement, Manager will provide an adequate plan of insurance specifically including coverage or insurance for civil rights claims and liabilities as approved by the State of Arizona&#146;s Department of Administration Risk Management Unit. Further, the Manager will purchase and maintain insurance and cause its subcontractors to purchase and maintain throughout the term of this Agreement, all insurance coverages by insurers acceptable to the Department as required by Article VIII and Attachment #8 to the Contract and Section 2.02(bb) of the Loan Agreement, including insuring the value of the Prison at 100% replacement cost. The Manager shall comply with all
provisions of the Contract with respect to performance  bonds, insurance and indemnification.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The cost of such insurance and performance bond will be included in and paid by the Manager from the Operating Costs. Upon request of the Owner, Manager will provide evidence satisfactory to the Owner of such insurance, including without limitation a certificate of insurance copy of such insurance policy or performance bond.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>The Owner and its sole member, Community Finance Corporation, and the Trustee, shall be named as an additional insured under all liability insurance policies purchased and maintained by the Manager, and the Trustee and ACA Financial Guaranty Corporation (&#147;ACA&#148;) shall be named as insured mortgagees and loss payees, as their interests may appear, on all property and casualty insurance policies consistent with the requirements of the Loan Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt; text-indent:0.5in;text-align:left;'><font size=2><a name="cooperation"></a>12.<b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><b><font size=2>Cooperation.</font></b><font size=2>&nbsp;&nbsp;&nbsp;The Owner agrees to cooperate with Manager in filing all forms, notification, reports and information in obtaining all consents, authorizations and approvals required or desirable in connection with this Agreement. The Owner agrees to act promptly in the</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt;text-align:left;'><font size=2>event of an emergency or in the event that a major decision with respect to any aspect of the Prison must be made immediately. The Owner also agrees to enter into agreements and grant Contracts, either solely or in conjunction with Manager, when necessary because of the Owner&#146;s property ownership or Owner status.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="records"></a>13.<b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2>Records. </font></b><font size=2>&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Manager shall keep current, complete and accurate books, accounts and records in connection with the operation and management of the Prison. The original records necessary for the operation and management of the Prison shall be the property of the Owner, but shall be in the possession of Manager during the term of this Agreement. Manager and the Owner shall both be entitled to copies of such records at any time. All books, accounts and records shall be retained in accordance with Manager&#146;s record retention policy, subject to the requirements set forth in the Contract.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)&nbsp;&nbsp;&nbsp;</font><font size=2>Within one hundred (100) days of the end of the Manager&#146;s fiscal year, a copy of the audited financial statements of the Manger (with the supplemental information regarding the Project) and within forty-five (45) days after the close of each quarter of the Manager&#146;s fiscal year, a copy of the unaudited financial statements of the Manager shall be sent to ACA Financial Guaranty Corporation, 140 Broadway, 47 Floor, New York, New York 10005, Attention: Surveillance.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(c)</font><font size=2>&nbsp;&nbsp;&nbsp;</font><font size=2>ACA shall have the right to receive such additional information as it may reasonably request.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(d)</font><font size=2>&nbsp;&nbsp;&nbsp;</font><font size=2>The Manager will permit ACA to discuss the affairs, finances and accounts of the Manager or any information ACA may reasonably request regarding the security for the Bonds with appropriate officers of the Manager, and will grant ACA access to the facilities, books and records of the manger on any business day upon reasonable prior notice.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(e)</font><font size=2>&nbsp;&nbsp;&nbsp;</font><font size=2>Not later than fifteen (15) days following each June 30 and December 31, a report (including supporting calculations), together with a certificate signed by an authorized officer of the Manager, which confirms compliance with all covenants required to be satisfied by the Manager for such fiscal period and states whether any event of default under the Management Agreement (or event that with the giving of notice or passage of time would constitute such an event of default) has occurred and is continuing as of the date of such certificate.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="confidentiality"></a>14.</font><font size=2><b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2></font></b><b><font size=2>Confidentiality.  </font></b><font size=2>&nbsp;&nbsp;Manager shall maintain all confidential personnel and prisoner records in the manner required by law and shall obtain all necessary approvals and consents for access to such records. The Owner agrees to cooperate with and assist Manager in obtaining such approvals and consents.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="grievances"></a>15.<b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2></font></b><font size=1></font><b><font size=2>Grievances.</font></b><font size=2>&nbsp;&nbsp;&nbsp;Manager shall be responsible for conducting all grievance or complaint procedures and due process hearings to which prisoners, guards, or others may be entitled by law or pursuant to policies approved by the Department.</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:3pt; text-indent:0.5in;text-align:left;'><font size=2><a name="representations1"></a>16.</font><font size=1></font><b><font size=2><b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2></font></b><font size=2>Representations and Warranties of Manager.</font></b><font size=2>&nbsp;&nbsp; Manager represents and warrants that it is a Delaware corporation in good standing and that it has applied for and has obtained a certificate of authority to conduct activities in Arizona and that the undersigned has full corporate authority to execute this Agreement on behalf of Manager; and that the performance of the terms and conditions of this Agreement will not constitute a violation of the governing documents or other contracts or obligations of Manager.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="representations2"></a>17.</font><font size=1></font><b><font size=2><b><font size=2></font></b><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><font size=1></font><b><font size=2></font></b><font size=2>Representations and Warranties of Owner.</font></b><font size=2>&nbsp;&nbsp; The Owner represents and warrants that it is an Arizona limited liability company; that the sole member of the Owner is an Arizona nonprofit corporation; that the performance of the terms and conditions of this Agreement will not constitute a violation of the articles of incorporation, bylaws, governing documents or other contracts or obligations of the Owner.</font></p>


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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><a name="indemnification"></a>18.</font></p> </td>
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      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><b>&nbsp;Indemnification.</b></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a) </font><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Indemnification by Manager of the Owner</b>. </font></i><font size=2>&nbsp;&nbsp;Manager shall defend in any action at law, indemnify and hold the Issuer, the City of Phoenix, the County of Maricopa, the State of Arizona, the member of Owner, the Owner and/or their attorneys, director, supervisors, officials, agents, advisors, and employees (the &#147;Indemnified Parties&#148;) harmless for and against:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td width="129" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Claims arising from:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.41in; text-indent:0.5in;text-align:left;'><font size=2>(A)</font>&nbsp;&nbsp;&nbsp;<font size=2>A breach or default on the part of the Manager in the performance of this Agreement;</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.41in; text-indent:0.5in;text-align:left;'><font size=2>(B)</font>&nbsp;&nbsp;&nbsp;<font size=2>A claim or loss for services rendered by Manager, or by any person or firm performing or supplying services, materials or supplies in connection with the performance of this Agreement;</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.41in; text-indent:0.5in;text-align:left;'><font size=2>(C)</font>&nbsp;&nbsp;&nbsp;<font size=2>A claim or loss to any person injured or property damaged from the acts or omissions of Manager, its officers, agents, or employee in the performance of this Agreement;</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.41in; text-indent:0.5in;text-align:left;'><font size=2>(D)</font>&nbsp;&nbsp;&nbsp;<font size=2>A failure by Manager, its officers, directors, agents, or employees to observe the Constitution, laws, regulations, ordinances or orders of the United States, the County of Maricopa, and the State of Arizona; and</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.41in; text-indent:0.5in;text-align:left;'><font size=2>(E)&nbsp;&nbsp;&nbsp;A claim or loss resulting from an act or omission of inmates proximately caused or permitted by Manager&#146;s negligent management or operation of the Prison.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.93in; text-indent:0.5in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2 >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs, reasonable attorney&#146;s fees, expenses, and liabilities incurred in or about such claim, action, or proceeding brought thereon.</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2 >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any and all liabilities (including strict liability), actions, demands, penalties, losses, costs or expenses (including, without limitation, consultants fees, investigations and laboratory fees, reasonable attorney&#146;s fees, expenses and remedial costs), suits, costs of any settlement or judgements and claims of any and every kind whatsoever which may now or in the future be paid, incurred or suffered by or asserted against the Indemnified Parties, the Department or by any person or entity or governmental agency for and a result of Manager&#146;s actions, the presence on, or the escape, seepage, leakage, spillage, discharge, emission or release from the Prison of any Hazardous Materials or
Hazardous Materials Contamination or arise out of or result from the environmental condition of the Prison or the applicability of any of any state or federal laws relating to Hazardous
Materials (including, without limitation, CERCLA or any so-called federal, state or local &#147;Superfund&#148; or &#147;Superlien&#148; laws, statute, law ordinance, code, rule, regulation, order or decree) (collectively, &#147;Hazardous Materials Laws&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in;text-align:left;'><font size=2>Said indemnification shall not be applicable to any claim, injury, death or damage to property arising out of any act or omission on the part of the Indemnified Parties or independent contractors (other than Manager) who are directly responsible to the Owner. Further said indemnification will not be applicable to any and all events, circumstance, or occurrences which occur at the Prison after the expiration of this Agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>In case any action or proceeding is brought against the Indemnified Parties by reason of any above listed claim, Manager, upon notice, shall defend against such action. Notice under this section shall be given to Manager within thirty (30) days of receipt of same. Neither the Manager nor the Owner will enter into any settlement with respect to any claim without first obtaining approval of the other parties.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><i><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Indemnification of Manager by the Owner.</b></font> </i><font size=2>&nbsp;&nbsp;The Owner shall indemnify and hold Manager, its officers, directors, attorneys, advisors, agents and employees harmless for and against:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(i) &nbsp;&nbsp;&nbsp;A breach or default on the part of the Owner in the performance of this Agreement;</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(ii) &nbsp;&nbsp;&nbsp;A claim or loss to any person injured or property damaged from the acts or the omissions of the Owner, its officers, directors, agents, attorneys, advisors, or employees (other than Manager and its directors, officers, agents or employees) in the performance of this Agreement; and</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1in; text-indent:0.5in;text-align:left;'><font size=2>(iii) &nbsp;&nbsp;&nbsp;A failure of the Owner, its officers, directors, attorneys, agents, advisors, or, employees to observe the laws of the United States and of the State of Arizona.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="dispute"></a>19.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Dispute Resolution. </b>&nbsp;&nbsp;Any and all disputes or claims between the parties arising out of or relating to this Agreement shall be submitted to binding arbitration before a panel of three arbitrators in Arizona under the rules of the American Arbitration Association. The parties</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9</FONT></P>
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<p><font size=2>further agree to faithfully observe this Agreement and such rules, and to abide by and perform any arbitration award rendered by the arbitrators, and that a judgment of the court having jurisdiction may be entered on the award.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="termination"></a>20.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Termination. </b>&nbsp;&nbsp;&nbsp;Notwithstanding anything contained herein which may be inconsistent or imply the contrary, this Agreement may not be terminated and the Manager may not be replaced by the Owner without the prior written consent of the Department (with a copy to ACA). The Manager shall not be terminated until a replacement Manager approved by the Department has been engaged or the Department elects to manage the Prison itself. Subject to such limitations, this Agreement may be terminated under the following circumstances:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=2>By the Owner at any time beginning July 1, 2012, without penalty or need to show cause provided that the Agreement unless this Agreement is renewed at the direction of the Department in accordance with Section 3 hereof;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  In the event of the breach of a material term of this Agreement, by the non-breaching
  party if the breach is not cured within 45 days after the breaching party receives
  written notice of the breach from the other party;</font></p>


<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=2>[Reserved];</font>
</p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By either party, immediately upon receipt of notice by the other party if the Contract has been revoked or has expired without renewal and no reasonable basis for further administrative appeal remains;</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By Manager (with a copy to ACA), within 90 days after the Owner&#146;s or Manager&#146;s receipt of written notice of:</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.15in; text-indent:0.5in;text-align:left;'><font size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the enactment, adoption, repeal, amendment, or judicial or administrative interpretation, of any federal, state or local law, regulation or court order, or any collective bargaining agreement or other contract; or</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:1.15in; text-indent:0.5in;text-align:left;'><font size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the decision of any governmental agency not to distribute any funds included as revenue in a Budget approved by the Manager that has or will have a material adverse impact on the Prison or on Manager&#146;s authority to perform its obligations under this Agreement, and the Owner fails to eliminate such adverse impact.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Reserved]</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.6in; text-indent:0.5in;text-align:left;'><font size=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By mutual written consent of the parties (with a copy to ACA).</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>Notwithstanding anything herein which may be inconsistent or to the contrary, this Agreement shall terminate upon the consummation by the Department of a purchase of the Prison pursuant to the purchase option in the Contract, upon the election by the Department to manage the Prison itself pursuant to its rights under Section 12.5 of the Contract, or if the Department shall elect at any time to terminate the Contract.</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>10</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="effect"></a>21.<font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font><b>Effect of Termination.  </b>&nbsp;&nbsp;Subject to Section 20 hereof, in the event this Agreement is terminated by either party for any reason, Manager shall be under no further obligation to begin, continue or complete any undertakings or activities contemplated by this Agreement. The termination of this Agreement shall in no way affect or impair any right which has accrued to either party hereto prior to the date when such termination shall become effective. In order to facilitate an orderly transition, the parties agree that in the event of any such termination, the parties shall reasonably cooperate with each other to develop a mutually agreeable
transition plan to assure minimal disruption in the Prison.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="amendment"></a>22.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Amendment.</b>&nbsp;&nbsp;&nbsp;This Agreement may be amended only by a written instrument executed on behalf of both Manager and the Owner, with prior approval of the Department (with a copy to ACA).</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="force"></a>23.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Force Majeure.  </b>Notwithstanding any other provision of this Agreement, neither party hereto shall be liable for any delay in performance or inability to perform due to acts of God or the public enemy, war, riot, embargo, fire, explosion, sabotage, flood, accident; or without limiting the foregoing any circumstances of like or different character beyond its reasonable control; or labor trouble from whatever cause arising; or compliance with any order, direction or request of any governmental officer, deputy or agency.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="relationship"></a>24.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Relationship of the Parties.</b>&nbsp;&nbsp;&nbsp;The relationship of Manager and the Owner hereunder shall be solely that of independent contractors and nothing herein shall be construed to create or imply any relationship of employment, agency or partnership or any relationship other than that of independent contractors. Manager and the Owner acknowledge and agree that each of them is engaged in a separate and independent business and neither shall state, represent or imply any interest in or control over the business of the other.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="governing"></a>25.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Governing Law.</b>&nbsp;&nbsp;&nbsp;This Agreement shall be governed by and construed in accordance with the internal laws of Arizona without giving effect to the principles of conflict of laws.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="entire"></a>26.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Entire Agreement.</b>&nbsp;&nbsp;&nbsp;This Agreement constitutes the entire agreement of the parties hereto and supersedes all prior agreements and understandings, written or oral, between the parties relating to the subject matter hereof.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="notices"></a>27.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Notices. </b>&nbsp;&nbsp;All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if: (i) delivered by hand, (ii) sent by overnight courier service, or (iii) sent by certified or registered mail, postage prepaid, return receipt requested, to the party to whom such notice is intended to be given at the addresses set forth herein. Any notice delivered in the manner provided above will be deemed given at the time of receipt. Until changed by notice in the manner provided above, the addresses of the parties are as follows:</font></p>
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    <td width="40%"><font size=2>To the Owner:</font></td>
    <td><font size=2>Phoenix West Prison L.L.C.</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>% Community Finance Corporation</font></td>
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    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>186 East Broadway Blvd.</font></td>
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</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>
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<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="8%">&nbsp;</td>
    <td width="40%">&nbsp;</td>
    <td><font size=2>Attention: Gary Molenda</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size=2>To the Manager:</font></td>
    <td><font size=2>Correctional Services Corporation</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Suite 1000</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>1819 Main Street</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Sarasota, FL 34236</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Attention: Jim Slattery</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size=2>To ACA:</font></td>
    <td><font size=2>ACA Financial Guaranty Corporation</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>47</font><sup><font size=2>th</font></sup><font size=2> Floor</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>140 Broadway</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>New York, New York &nbsp;10005</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Attention: &nbsp;Surveillance</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Phone:&nbsp; (212) 375-2000</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2>Fax:&nbsp; (212) 375-2100</font></td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="counterparts"></a>28.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Counterparts</b>.&nbsp;This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which, taken together, shall constitute one original.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="invalidity"></a>29.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Invalidity</b>.&nbsp;&nbsp;If any provision of this Agreement, including without limitation any grant of authority by the Owner to Manager, is held to be invalid, unlawful or unenforceable, such provision shall be revised or applied in a manner that tenders it valid, lawful and enforceable to the fullest extent possible. In such event, the parties agree to use their best efforts to revise or apply such provision in accordance with the intent of this Agreement. The invalidity of any particular provision of this Agreement shall not affect any other provision hereof.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="assignment"></a>30.<font size=2><b><font size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font></b></font><b>Assignment</b>.&nbsp;&nbsp;Except as provided below, neither Manager nor the Owner shall assign any of its rights or obligations hereunder without the prior written consent of the Department; provided, however, that Manager may, without the consent of the Owner, assign or subcontract the performance of (but not responsibility for) any duties and obligations of Manager hereunder in a manner consistent with the Contract as provided above. The Manager may, upon 60 days notice to, but without the consent of, the Owner, assign all of its rights and obligations hereunder to any entity with the prior written approval of the Department. The rights created by this Agreement shall inure to the benefit of, and the
    obligations created hereby shall be binding upon, the successors, heirs and assigns of the respective parties hereto.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="waiver"></a>31.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Waiver</b>.</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>No waiver of any provision of this Agreement shall be deemed to constitute a waiver of any other provision. No such waiver shall be binding unless it is in writing and no waiver will be held to continue unless otherwise expressly stated by the party waiving the provision.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="survival"></a>32.<b><b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></b>Survival</b>. &nbsp;The provisions contained in paragraphs 8(c) (Liability for Revenue Shortfalls or Unbudgeted Expenses), 9 (Payment for Services), 10 (Intellectual Property), 18 (Indemnification), and 21 (Effect of Termination), shall survive the termination of this Agreement and remain in full force and effect.</font></p>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:3pt; text-indent:0.5in;text-align:left;'><font size=2><a name="further"></a>33.<b><b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></b>Further Assurances.</b>&nbsp;In order to more fully assure each party of the benefit of contracting hereunder, each party agrees to deliver to the other party such confirmations of fact, records, certificates, instruments of assignment and other documents and things as may be reasonably requested by the other party to carry out the purposes of this Agreement.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="120" style='margin-left:35.95pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><a name="litigation"></a>34.</font></p> </td>
        <td width="72" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Litigation</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><i><font size=2>Prior Occurrences.</font></i></b><font size=2>&nbsp;The Manager shall remain solely responsible for any losses or costs resulting from litigation pending at the time this Agreement becomes effective or for lawsuits arising thereafter relating to events or conditions which occurred or existed prior to the effective date of this Agreement. Owner agrees to cooperate with the Manager in the defense of such suits, if any.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; margin-left:0.5in; text-indent:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size=2><b>Post Conviction</b> <b>Actions</b>. </font></i><font size=2>&nbsp;&nbsp;Owner shall not be responsible for defense of any post conviction action, including appeals and writs of habeas corpus filed by any inmate challenging the underlying judgement of conviction or the administration of the sentence imposed.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="third"></a>35.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font>Third Party Rights</b>. &nbsp;&nbsp;The Department is hereby specifically named as a third party beneficiary to this Agreement. The parties hereto expressly acknowledge that the Department shall maintain a high level of control over the operations and management of the Prison. To that end, (i) to the extent of any conflict between the terms of this Agreement and the terms of the Contract, the terms of the Contract will prevail; (ii) subject to the terms of this Agreement, the Owner may not terminate or replace the Manager without the prior written consent of the Department; and (iii) no amendment to or modification of
the terms of this Agreement shall be valid or effective unless and until approved by the Department. The provisions of this Agreement are otherwise for the sole benefit of the
parties hereto and shall not be construed as conferring any rights to any other person other than ACA as specified herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="nonrecourse"></a>36.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</font></b></font>Nonrecourse Obligation</b>.&nbsp;&nbsp; Any obligations of the Owner hereunder are nonrecourse and are limited solely to moneys received by the Trustee pursuant to the Contract, or through funds made available pursuant to the Indenture or any insurance policies.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="364" style='margin-left:35.95pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:8.0pt 0in 0in 0in'>
      <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2><a name="disclaimer"></a>37.</font></p> </td>
        <td width="316" valign=top style='padding:8.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Disclaimer Regarding the Condition of the Property</font></b><font size=2>.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font SIZE=2>MANAGER HAS BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PRISON, AND IS AND WELL BE RELYING SOLELY ON ITS OWN INSPECTION OF THE PRISON IN MAKING ITS DECISION TO ENTER INTO THIS AGREEMENT. MANAGER SHALL ASSUME THE RISK THAT ADVERSE MATTERS CONCERNING THE PRISON MAY NOT HAVE BEEN REVEALED BY MANAGER&#146;S INSPECTION OF THE PRISON. OWNER HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS CONCERNING OR WITH RESPECT TO THE PRISON DESCRIBED HEREIN, INCLUDING COVENANTS, AGREEMENTS, OR GUARANTIES CONCERNING (A) THE NATURE, QUALITY OR CONDITION OF THE PRISON OR ANY OF THE FIXTURES OR</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>13</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>EQUIPMENT THEREIN; (B) THE SUITABILITY OF THE PRISON OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN FOR ANY USE OR PURPOSE; OR (C) THE MERCHANTABILITY OF THE PRISON OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN. MANAGER HEREBY ACCEPTS THE PRISON DESCRIBED IN ITS EXISTING CONDITION, &#147;AS IS,&#148; WITH ALL FAULTS AND DEFECTS OF ANY NATURE WHATSOEVER. MANAGER SHALL NOT HAVE ANY RIGHT TO RECOURSE AGAINST OWNER ON ACCOUNT OF ANY LOSS, COST OR EXPENSE SUFFERED OR INCURRED BY MANAGER WITH REGARD TO ANY OF THE PRECEDING MATTERS.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2><a name="miscellaneous"></a>38.<b><font size=2><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</font></b></font>Miscellaneous</b>. &nbsp;&nbsp;The recitals and preamble to this Agreement are a substantive part hereof and shall be interpreted and given effect as such and are incorporated into this Agreement by this reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font size=2>[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]</font></p>

<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>14</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above written.</font></p>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Manager: CORRECTIONAL SERVICES CORPORATION</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">By&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ James E. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Name <u>&nbsp;&nbsp;&nbsp;James E. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Title <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President
      &amp; CEO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
      </font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Date <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 14, 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Owner: PHOENIX WEST PRISON L.L.C.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="left" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="4%" align="left" valign="top"><font size=2>By: </font></td>
    <td><font size=2>Community Finance Corporation, an <br>
      Arizona non-profit corporation, its sole<br>
      member</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">By&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Name&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Title&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Times New Roman, Times, serif">Date&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>15</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:0.5in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above written.</font></p>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td width="13%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size=2 face="Times New Roman, Times, serif">Manager: CORRECTIONAL SERVICES CORPORATION</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">By______________________________</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Name____________________________</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Title_____________________________&nbsp;&nbsp;&nbsp; </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Date ____________________________&nbsp;&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2>&nbsp; </font> <font size=2>Owner: PHOENIX WEST PRISON L.L.C.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30">&nbsp;</td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">By <u>&nbsp;&nbsp;/s/ Michael Hammond&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30">&nbsp;</td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Name <u>&nbsp;&nbsp;Michael Hammond&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30">&nbsp;</td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Title <u>&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><u> </u></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td height="30">&nbsp;</td>
    <td height="30"><font size=2 face="Times New Roman, Times, serif">Date ____________________________</font></td>
  </tr>
</table>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><b><font SIZE=2 face="Times New Roman, Times, serif"><a name="management1"></a>SCHEDULE 1</font></b></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><b><font SIZE=2 face="Times New Roman, Times, serif">MANAGEMENT FEES</font></b></td>
  </tr>
</table>
<table cellpadding=0 cellspacing=0 border=0 width=100%>
  <tr valign=Bottom>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <td align="center">&nbsp;</td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align="center"><font size=2><u>Period</u></font></td>
    <td align="center"><u><font size=2>Number of Inmates</font></u></td>
    <td align="center">&nbsp;</td>
    <td align="center"><u><font size=2>Management Fee</font></u></td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=center>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=30% align=center><font face="Times New Roman, Times, Serif" size=2>August 1, 2002 &#150; July 31, 2003</font></td>
    <td width=30% align=center><font face="Times New Roman, Times, Serif" size=2>1-400</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2> $1,278,084</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>401-450</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width="17%" align=center><font face="Times New Roman, Times, Serif" size=2> $109,643</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>451-500</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2> $109,643</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;&nbsp;</font></p>

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<TYPE>EX-10
<SEQUENCE>16
<FILENAME>ex10-90.htm
<DESCRIPTION>EXHIBIT 10.90
<TEXT>
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<P align=right><FONT size=2><b>Exhibit 10.90</b></FONT></P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>MANAGEMENT AGREEMENT</B></FONT></P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>between</B></FONT></P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Florence West Prison L.L.C.,<br>
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>as Owner</B></FONT></P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>and</B></FONT></P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>Correctional Services Corporation, <br>as
</B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>Manager</B></FONT></P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Dated as of December 1, 2002</FONT></P>

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<p style="page-break-before: always">
<PAGE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td height="20" valign="top">&nbsp;</td>
    <td height="20" valign="top">&nbsp;</td>
    <td height="20" align="right" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">1.</font></td>
    <td height="20" valign="top"><a href="#common"><font size="2" face="Times New Roman, Times, serif"> Common understandings </font></a></td>
    <td width="5%" height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 2 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">2.</font></td>
    <td height="20" valign="top"><a href="#management"><font size="2" face="Times New Roman, Times, serif"> Management Services </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 3 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">3.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#term">Term</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 3 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">4.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#personnel">Personnel</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 3 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">5.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#approvals">Approvals</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 4 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">6.</font></td>
    <td height="20" valign="top"><a href="#purchase"><font size="2" face="Times New Roman, Times, serif"> Purchase of the Prison by the Department </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 4 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">7.</font></td>
    <td height="20" valign="top"><a href="#equipment"><font size="2" face="Times New Roman, Times, serif"> Equipment and Supplies </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 4 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">8.</font></td>
    <td height="20" valign="top"><a href="#financial"><font size="2" face="Times New Roman, Times, serif"> Financial Matters </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 4 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">9.</font></td>
    <td height="20" valign="top"><a href="#payment"><font size="2" face="Times New Roman, Times, serif"> Payment for Services </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 5 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">10.</font></td>
    <td height="20" valign="top"><a href="#intellectual"><font size="2" face="Times New Roman, Times, serif"> Intellectual Property </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 6 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">11.</font></td>
    <td height="20" valign="top"><a href="#insurance"><font size="2" face="Times New Roman, Times, serif">Insurance</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 6 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">12.</font></td>
    <td height="20" valign="top"><a href="#cooperation"><font size="2" face="Times New Roman, Times, serif">Cooperation</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 7 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">13.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#records">Records</a></font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 7 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">14.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#confidentiality">Confidentiality</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 7 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">15.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#grievances">Grievances</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 8 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">16.</font></td>
    <td height="20" valign="top"><a href="#representations1"><font size="2" face="Times New Roman, Times, serif"> Representations and Warranties of Manager </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 8</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">17.</font></td>
    <td height="20" valign="top"><a href="#representations2"><font size="2" face="Times New Roman, Times, serif"> Representations and Warranties of Owner </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 8</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">18.</font></td>
    <td height="20" valign="top"><a href="#indemnification"><font size="2" face="Times New Roman, Times, serif">Indemnification</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 8</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">19.</font></td>
    <td height="20" valign="top"><a href="#dispute"><font size="2" face="Times New Roman, Times, serif"> Dispute Resolution </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif">10</font><font size="2" face="Times New Roman, Times, serif">&nbsp; </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">20.</font></td>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#termination">Termination</a> </font></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">21.</font></td>
    <td height="20" valign="top"><a href="#effect"><font size="2" face="Times New Roman, Times, serif"> Effect of Termination </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">22.</font></td>
    <td height="20" valign="top"><a href="#amendment"><font size="2" face="Times New Roman, Times, serif">Amendment</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">23.</font></td>
    <td height="20" valign="top"><a href="#force"><font size="2" face="Times New Roman, Times, serif"> Force Majeure </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">24.</font></td>
    <td height="20" valign="top"><a href="#relationship"><font size="2" face="Times New Roman, Times, serif"> Relationship of the Parties </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">25.</font></td>
    <td height="20" valign="top"><a href="#governing"><font size="2" face="Times New Roman, Times, serif"> Governing Law </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">26.</font></td>
    <td height="20" valign="top"><a href="#entire"><font size="2" face="Times New Roman, Times, serif"> Entire Agreement </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">27.</font></td>
    <td height="20" valign="top"><a href="#notices"><font size="2" face="Times New Roman, Times, serif">Notices</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 11 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">28.</font></td>
    <td height="20" valign="top"><a href="#counterparts"><font size="2" face="Times New Roman, Times, serif">Counterparts</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 12</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">29.</font></td>
    <td height="20" valign="top"><a href="#invalidity"><font size="2" face="Times New Roman, Times, serif">Invalidity</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 12</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">30.</font></td>
    <td height="20" valign="top"><a href="#assignment"><font size="2" face="Times New Roman, Times, serif">Assignment</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 12 </font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">31.</font></td>
    <td height="20" valign="top"><a href="#waiver"><font size="2" face="Times New Roman, Times, serif">Waiver</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13</font></td>
  </tr>
  <tr>
    <td height="20" valign="top"><font size="2" face="Times New Roman, Times, serif">32.</font></td>
    <td height="20" valign="top"><a href="#survival"><font size="2" face="Times New Roman, Times, serif">Survival</font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13</font></td>
  </tr>
  <tr>
    <td height="20" valign="top">&nbsp;</td>
    <td height="20" valign="top">&nbsp;</td>
    <td height="20" align="right" valign="top">&nbsp;</td>
  </tr>
</table>
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<PAGE>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td valign="top">&nbsp;</td>
    <td height="20" valign="top">&nbsp;</td>
    <td height="20" align="right" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top"><font size="2" face="Times New Roman, Times, serif">33.</font></td>
    <td height="20" valign="top"><a href="#further"><font size="2" face="Times New Roman, Times, serif"> Further Assurances </font></a></td>
    <td width="5%" height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13</font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">34.</font></td>
    <td height="20" valign="top"><a href="#litigation"><font size="2" face="Times New Roman, Times, serif"> Litigation </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13</font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">35.</font></td>
    <td height="20" valign="top"><a href="#third"><font size="2" face="Times New Roman, Times, serif"> Third Party Rights </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13</font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">36.</font></td>
    <td height="20" valign="top"><a href="#nonrecourse"><font size="2" face="Times New Roman, Times, serif"> Nonrecourse Obligation </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 13 </font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">37.</font></td>
    <td height="20" valign="top"><a href="#disclaimer"><font size="2" face="Times New Roman, Times, serif"> Disclaimer Regarding the Condition of the Property </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 14</font></td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">38.</font></td>
    <td height="20" valign="top"><a href="#miscellaneous"><font size="2" face="Times New Roman, Times, serif"> Miscellaneous </font></a></td>
    <td height="20" align="right" valign="top"><font size="2" face="Times New Roman, Times, serif"> 14</font></td>
  </tr>
</table>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><a href="#schedule1"><font size="2" face="Times New Roman, Times, serif"> SCHEDULE 1: </font></a></td>
    <td align="right"><font size="2" face="Times New Roman, Times, serif"> MANAGEMENT FEES </font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
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<p style="page-break-before: always">
<PAGE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>MANAGEMENT AGREEMENT</B></FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>THIS AGREEMENT, was duly executed as of the 1st day of December, 2002, between Florence West Prison L.L.C., (the &#147;Owner&#148;), an Arizona limited liability company, the sole member of which is Community Finance Corporation, an Arizona non-profit corporation, and Correctional Services Corporation (&#147;Manager&#148;), a Delaware corporation.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Owner owns the prison facility known as the Florence West Private Prison (the &#147;Prison&#148;); and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Owner financed the purchase of the Prison with the proceeds of loan made to the Owner by The Industrial Development Authority of the County of Pinal (the &#147;Issuer&#148;), which issued its &#147;The Industrial Development Authority of the County of Pinal Correctional Facilities Contract Revenue Bonds (Florence West Prison L.L.C. Project), Series 2002A&#148; and &#147;The Industrial Development Authority of the County of Pinal Correctional Facilities Contract Revenue Bonds (Florence West Prison L.L.C. Project) Series 2002B (Taxable)&#148; (jointly, the &#147;Bonds&#148;) pursuant to that certain Trust Indenture between the Issuer and National Bank of Arizona, as Trustee, dated as of December 1, 2002 (the &#147;Trust Indenture&#148;) in order to provide financing for, among other things, the purchase by the Owner of the Prison;</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Manager has entered into Contract No. 020049DC (the &#147;Contract&#148;) with the State of Arizona Department of Corrections (the &#147;Department&#148;) for the Provision, Operation, and Management of a Secure Private Prison and has agreed to operate and manage the Prison pursuant to Arizona Revised Statutes &#167; 41-1609 <I>et seq </I>(the &#147;Act&#148;), which governs private prisons in the State of Arizona, RFP Number 020049DC and the Contract; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, it is the intent of the parties hereto that the Department maintain a high level of oversight and control in the operation and management of the Prison; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, to that end, in the event of a conflict between the terms of the Contract and the terms hereof, the terms of the Contract will prevail; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, subject to the terms of this Agreement, the Owner may not terminate or replace the Manager without the prior written consent of the Department; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS,
  the Department may elect to terminate the services of the Manager and manage
  the facility itself, provided that the Department makes all payments required
  by Section 5.04 of the Indenture with the exception of payments required under
  the FIFTH, SEVENTH, ELEVENTH AND TWELFTH paragraphs of Section 5.04 of the Indenture;</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Department has the option at any time during the initial term of the Contract, or any renewal thereof, to purchase the Prison in accordance with the terms of the Contract; and</FONT></P>

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<p style="page-break-before: always">
<PAGE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Manager is in the business of managing prisons and desires to provide management services
to the Owner in connection with the operation of its Prison pursuant to the Contract; and</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Owner regards Manager&#146;s expertise and experience to be critical to the successful operation of the Prison in the manner contemplated by the Contract, and the Owner desires to obtain the services of Manager to assist in the operation of the Prison;</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Manager shall have the ultimate responsibility for the operation and management of the Prison, and shall be responsible for all interaction with the Department in matters relating to performance under the Contract.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and in consideration of the mutual covenants contained herein,</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IT IS AGREED AS FOLLOWS:</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="common"></a>1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Common understandings</B>.&nbsp;&nbsp;&nbsp;Manager and the Owner both acknowledge the following as of the date of this Agreement:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> This Agreement and the rights and obligations of the parties hereunder shall be subject to the terms,
provisions and conditions of the Contract. In the event of a conflict between the terms of the Contract
and the terms hereof, the terms of the Contract will prevail.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Prison will be a prison as described in the Contract, and Manager shall maintain in full force
and effect any licenses, certifications or permits required for the operation of the Prison.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Manager shall have the authority and responsibility to make contracts and leases for the procurement
of services, equipment and supplies and for operation of the Prison, subject to any limitations set
forth in the Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Manager needs to have considerable discretion in the exercise of its responsibilities under this Agreement
in order to manage the Prison. Subject to the limitations expressly set forth in this Agreement or
applicable by law, therefore, Manager shall be entitled to fulfill its obligations hereunder in the
manner that it determines is appropriate or necessary within the policies established by the Department
and in a manner consistent with the Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Manager shall be solely responsible for the establishment of, and shall establish, policy and
procedures for the Prison in a manner consistent with the policies of the Department and consistent
with the terms of the Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Capitalized terms used herein without further definition shall have the meanings assigned to such
terms in the Trust Indenture.</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>2</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="management"></a>2.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Services.</B> &nbsp;&nbsp;Manager will manage and operate the Prison subject to the terms of this Agreement and in a manner consistent with the Act, which governs private prisons in the State of Arizona, RFP Number 020049DC and the Contract Manager shall provide or ensure the provision of the following services in connection with the Prison and its operations:</FONT></p>
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<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Business administration, including budgeting, financial and other recordkeeping, audits, and regulatory
compliance;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Acquisition of instructional materials, equipment, and supplies;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> All maintenance (including cleaning services), repair and replacement of Prison facilities and equipment;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      Management of Prison affairs, including implementation of policies affecting
      prisoner welfare and safety, and visitor relations;</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
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<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Food service required by the Contract;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Transportation services required by the Contract;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Other special prisoner services required by the Contract;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
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<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of all utilities, taxes, and assessments
on the Prison and equipment;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct of grievance
procedures and due process hearings required by law; and</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
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<TR>
<TD vAlign=top width=40>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other services
required in the Contract.</FONT></TD>
</TR>
</TABLE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In consideration of the provision of the services described above, Manager shall be paid a management fee.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2></FONT><FONT face="Times New Roman, Times, Serif" size=2><a name="term"></a>3.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term.</B> &nbsp;&nbsp;This agreement shall be effective as of the 20th day of December, 2002, and shall continue in effect for ten (10) years from such date or until the earlier termination of this Agreement in accordance with the provisions of paragraph 20 hereof. This agreement may be renewed at the direction of the Department for up to two (2) consecutive terms of five (5) years each beyond the initial 10-year term if the Department elects to renew and extend the Contract.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="personnel"></a>4.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><b>Personnel.</b> &nbsp;&nbsp;Except as otherwise required by law, all personnel engaged to operate the Prison shall be employed or otherwise contracted for by Manager. Such personnel shall include, without limitation, guards, guards&#146; aides, administrators, and facilities maintenance staff. Manager shall pay all personnel costs, including but not limited to compensation, employment taxes, worker&#146;s compensation and employee benefits, for employees employed by Manager at the Prison. Personnel employed by Manager at the Prison who are issued firearms shall be trained in accordance with the standards of the Department and must comply with applicable laws, rules, and regulations of the Department and the State of Arizona. Each employee shall be recruited and</FONT></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>3</FONT></P>
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<p><FONT face="Times New Roman, Times, Serif" size=2>hired by the Manager in accordance with the requirements set forth in Section 2.10 (Scope of Work - Program Requirements) of the Contract and in accordance with all applicable federal and state law. Subject to any limitations imposed by the Contract or by applicable law, Manager shall make all decisions regarding hiring, compensation, termination of employment, assignments, and discipline of such personnel in its sole discretion.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="approvals"></a>5.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Approvals.</B> &nbsp;&nbsp;For purposes of any approvals required to be given by Owner, approval may be given from time to time by such person or persons as may be designated in a written instrument signed and dated by the sole member of the Owner and delivered to Manager. Each such designation shall remain in effect until it is expressly revoked in a written instrument signed and dated by the sole member of the Owner and delivered to Manager. Manager shall be entitled to rely on any such designation that Manager believes in good faith to meet the requirements of this Agreement. The person authorized to provide approvals on behalf of the Owner as of the date of this Agreement and until such time of change is Gary Molenda.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="purchase"></a>6.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Purchase
  of the Prison by the Department.</B> &nbsp;&nbsp;Should the Department exercise
  its option to purchase the Prison pursuant to the Contract, the Manager shall
  be responsible for taking all necessary steps, at its cost, to ensure that all
  responsibilities of the Owner, as the owner and seller of the Prison, under
  Section 2.9.7 - Solicitation No. 020049DC (Scope of Work) of the Contract are
  fulfilled, prior to the transfer of the Prison by the Owner to the Manager.
  Upon transfer of the Prison to the Manager by the Owner, the Manager will simultaneously
  (i) transfer the Prison to the Department in accordance with the provisions
  of Section 2.9.7 &#150; Solicitation No. 020049DC (Scope of Work) of the Contract,
  and (ii) transfer the purchase price to the Trustee for application in accordance
  with Section 3.05 of the Indenture.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="equipment"></a>7.<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Equipment and Supplies.</B> &nbsp;&nbsp;Manager shall acquire or provide all equipment and supplies necessary for the operation of the Prison; provided however that the Owner shall provide to Manager and make available for Manager&#146;s use in connection with the operation and management of the Prison during the entire term of this Agreement all of the items of furniture, fixture and equipment owned by the Owner and presently located at the Prison. Except as otherwise agreed by the parties in writing, as between the Owner and Manager, all such equipment and supplies shall be the property of the Owner, subject to the rights and interests of the Department therein as provided in the Contract.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="financial"></a>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>Financial Matters.</B></FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Funds.</I></B> &nbsp;&nbsp;The Manager hereby agrees that, for so long as any Bonds remain outstanding under the Trust Indenture,
any and all revenues income and receipts of any nature in any form, derived from the operation and
management of the Prison (&#147;Prison Revenues&#148;) shall be deposited in the Revenue Fund established
under the Trust Indenture, as and when received consistent with the Assignment Agreement by and between
Manager and Trustee, and shall be disbursed by the Trustee as provided in the Trust Indenture.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Manager shall have the right to requisition funds from the Operating Costs Fund, the Operation
and Maintenance Reserve Fund and the Major Maintenance Fund in</FONT></TD></TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>4</FONT></P>
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  <TD vAlign=top>&nbsp;</TD>
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<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>accordance with the terms of the Trust Indenture in order to pay for the costs of operating, managing,
repairing and maintaining the Prison. The amount of $1,850.00 and the Borrower&#146;s pro-rated portion
of the Member&#146;s ordinary operating expenses shall be paid to the Owner monthly as part of the
Operating Costs prior to the payment of any management fees to the Manager for administration and
financial reporting costs expected to be incurred by the Owner related to its ownership of the Project.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liability for </I></B><B><I>revenue shortfalls or unbudgeted expenses</I></B>. &nbsp;&nbsp;If Prison Revenues received in any month are insufficient to pay the Operating Costs for the Prison,
the Manager will continue to operate the Prison under this Agreement and shall provide for the payment
of any shortfalls from the Operation and Maintenance Reserve Fund in accordance with the Trust Indenture.
If the Operation and Maintenance Reserve shall be depleted, then the Manager shall advance its own
funds to cover any shortfalls between Prison Revenues received and Operating Costs for the Prison.
The Owner shall have no obligation, responsibility or liability for any Operating Costs associated
with the Prison. In the event that there shall be insufficient Prison Revenues available, either
from the Operating Costs Fund or the Operations and Maintenance Reserve Fund established under the
Trust Indenture, to pay for the Operating Costs of the Prison, and the Manager shall advance its
own funds to cover any resulting shortfall, such shortfalls shall accumulate and shall be reimbursed
to the Manager in accordance with the Trust Indenture if and to the extent that funds become available
for the payment of such accumulated shortfalls.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> If, for any reason, during the term hereof (i) the Bonds shall be defeased in full and no Bonds shall
be outstanding, (ii) the Owner shall continue to be the owner of the Prison and (iii) the Contract
shall remain in force, the Owner and Manager shall negotiate in good faith an appropriate amendment
to the foregoing provisions of this Section 8 and Section 9 below, to provide for appropriate provisions
related to the cost of operating the Prison and for the payment of a management fee to the Manager.</FONT></TD></TR></TABLE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="payment"></a>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Payment for Services.</B> &nbsp;&nbsp;Subject to the availability of funds, the Manager will be entitled to receive, a periodic fixed fee
(the &#147;Management Fee&#148;) for its services hereunder during each December 15 &#150; December
14 during the term of this Agreement (a &#147;Period&#148;) (except for the first Period which shall
be for services rendered from December 17, 2002 &#150; December 15, 2003). THE MANAGER UNDERSTANDS
AND AGREES THAT ITS MANAGEMENT FEE IS NOT GUARANTEED AND THAT IT SHALL BE PAYABLE ONLY TO THE EXTENT
THAT THERE SHALL BE SURPLUS PRISON REVENUES FOLLOWING THE PAYMENT OF DEBT SERVICE ON THE PRISON,
OPERATING COSTS AND THE OTHER FEES AND EXPENSES HAVING A PRIORITY OVER THE PAYMENT OF MANAGEMENT
FEES TO THE MANAGER AS PROVIDED FOR IN THE TRUST INDENTURE. Such periodic fixed management fee shall
be paid in twelve equal monthly installments on the fifteenth calendar day of each month during such
Period, commencing January 15, 2003, as provided in Schedule 1. The Management Fee for subsequent
Periods shall be determined by applying the West Urban Consumer Price Index (based on the preceding
calendar year) or 4%, whichever is greater, to the Management Fee for the immediately preceding Period.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>5</FONT></P>
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<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In the event that there shall be insufficient funds available to pay the Manager its Management Fee in any given month, any shortfall in the payment of the Management Fees to the Manager shall accumulate and shall be reimbursed to the Manager in accordance with the Trust Indenture if and to the extent that funds become available for the payment of accumulated arrearages in the payment of the Management Fee.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="intellectual"></a>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Intellectual Property.</B> &nbsp;&nbsp;As between Manager and the Owner, all rights of any nature, including, without limitation, any copyrights and any trademark or service mark rights (together with any goodwill appurtenant thereto) (&#147;Rights&#148;) in and to prison or administrative materials created by Manager, and all rights in and to materials created, adapted or modified by Manager for use in connection with the Prison, shall be owned exclusively by Manager. As between Manager and the Owner, all Rights in and to materials created, adapted or modified by Owner employees for use in connection with the Prison, shall be owned exclusively by the Owner. As between Manager and the Owner, all Rights in and to materials created, adapted or modified jointly by Owner employees and Manager for use in connection
with the Prison shall be owned jointly by the Owner and Manager and shall be used solely in connection with the operation of the Prison during the term of this Agreement, except as otherwise agreed in writing by the Owner and Manager. Without limiting any of the foregoing, however, Manager hereby grants to the Owner a non-exclusive license, for the term of this Agreement, of the Rights in and to all prison and administrative materials owned by or licensed to Manager and used in connection with the Prison; provided, however, that such license shall extend only to such uses as are necessary for the operation of the Prison and shall not permit any publication, re-sale, sub- license, distribution or other use of such materials for any other purpose.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="insurance"></a>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance.</B> &nbsp;&nbsp;Beginning not later than December 20, 2002, and thereafter during the term of this Agreement, Manager will provide an adequate plan of insurance specifically including coverage or insurance for civil rights claims and liabilities as approved by the State of Arizona&#146;s Department of Administration Risk Management Unit. Further, the Manager will purchase and maintain insurance and cause its subcontractors to purchase and maintain throughout the term of this Agreement, all insurance coverages by insurers acceptable to the Department as required by 12.34 (Special Terms and Conditions) of the Contract and Section 2.02(bb) of the Loan Agreement, including insuring the value of the Prison at 100% replacement cost. The Manager shall comply with all provisions of the Contract with respect
to performance bonds, insurance and indemnification.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The cost of such insurance and performance bond will be included in and paid by the Manager from the Operating Costs. Upon request of the Owner, Manager will provide evidence satisfactory to the Owner of such insurance, including without limitation a certificate of insurance copy of such insurance policy or performance bond.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>The Owner and its sole member, Community Finance Corporation, and the Trustee, shall be named as an additional insured under all liability insurance policies purchased and maintained by the Manager, and the Trustee and ACA Financial Guaranty Corporation (&#147;ACA&#148;) shall be named as insured mortgagees and loss payees, as their interests may appear, on all property and casualty insurance policies consistent with the requirements of the Loan Agreement.</FONT></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>6</FONT></P>
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<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="cooperation"></a>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>Cooperation.
</B> &nbsp;&nbsp;The Owner agrees to cooperate with Manager in filing all forms, notification, reports and information
in obtaining all consents, authorizations and approvals required or desirable in connection with
this Agreement. The Owner agrees to act promptly in the event of an emergency or in the event that
a major decision with respect to any aspect of the Prison must be made immediately. The Owner also
agrees to enter into agreements and grant Contracts, either solely or in conjunction with Manager,
when necessary because of the Owner&#146;s property ownership or Owner status.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="records" id="records"></a>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Records.</B> &nbsp;&nbsp;(a) Manager shall keep current, complete and accurate books, accounts and records in connection with
  the operation and management of the Prison. The original records necessary for the operation and
  management of the Prison shall be the property of the Owner, but shall be in the possession of Manager
  during the term of this Agreement. Manager and the Owner shall both be entitled to copies of such
  records at any time. All books, accounts and records shall be retained in accordance with Manager&#146;s
  record retention policy, subject to the requirements set forth in the Contract.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Within one hundred (100) days of the end of the Manager&#146;s fiscal year, a copy of the audited
financial statements of the Manger (with the supplemental information regarding the Project) and
within forty-five (45) days after the close of each quarter of the Manager&#146;s fiscal year, a
copy of the unaudited financial statements of the Manager shall be sent to ACA Financial Guaranty
Corporation, 140 Broadway, 47 Floor, New York, New York 10005, Attention: Surveillance.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> ACA shall have the right to receive such additional information as it may reasonably request.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Manager will permit ACA to discuss the affairs, finances and accounts of the Manager or any information
ACA may reasonably request regarding the security for the Bonds with appropriate officers of the
Manager, and will grant ACA access to the facilities, books and records of the manger on any business
day upon reasonable prior notice.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Not later than fifteen (15) days following each June 30 and December 31, a report (including supporting
calculations), together with a certificate signed by an authorized officer of the Manager, which
confirms compliance with all covenants required to be satisfied by the Manager for such fiscal period
and states whether any event of default under the Management Agreement (or event that with the giving
of notice or passage of time would constitute such an event of default) has occurred and is continuing
as of the date of such certificate.</FONT></TD>
</TR></TABLE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="confidentiality"></a>14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Confidentiality.</B> &nbsp;&nbsp;Manager shall maintain all confidential personnel and prisoner records in the manner required by law
and shall obtain all necessary approvals and consents for access to such records. The Owner agrees
to cooperate with and assist Manager in obtaining such approvals and consents.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>7</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="grievances" id="grievances"></a>15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>Grievances.</B>  &nbsp;&nbsp;Manager shall be responsible for conducting all grievance or complaint procedures and due process hearings to which prisoners, guards, or others may be entitled by law or pursuant to policies approved by the Department.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="representations1"></a>16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>Representations and Warranties of Manager.</B> &nbsp;&nbsp;Manager represents and warrants that it is a Delaware corporation in good standing and that it has applied for and has obtained a certificate of authority to conduct activities in Arizona and that the undersigned has full corporate authority to execute this Agreement on behalf of Manager; and that the performance of the terms and conditions of this Agreement will not constitute a violation of the governing documents or other contracts or obligations of Manager.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="representations2"></a>17. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>Representations and Warranties of Owner.</B> &nbsp;&nbsp;The Owner represents and warrants that it is an Arizona limited liability company; that the sole member of the Owner is an Arizona nonprofit corporation; that the performance of the terms and conditions of this Agreement will not constitute a violation of the articles of organization, operating agreement, governing documents or other contracts or obligations of the Owner.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="indemnification"></a>18. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B>Indemnification.</B></FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(a)</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B><B><I>Indemnification by Manager of the Owner. </I></B>Manager shall defend in any action at law, indemnify and hold the Issuer, the City of Florence, the
County of Pinal, the State of Arizona, the member of Owner, the Owner and/or their attorneys, director,
supervisors, officials, agents, advisors, and employees (the &#147;Indemnified Parties&#148;) harmless
for and against:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B>Claims arising from:</FONT></TD>
</TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(A)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A breach or default on the part of the Manager in the performance of this Agreement;</FONT></TD></TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(B)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A claim or loss for services rendered by Manager, or by any person or firm performing or supplying
services, materials or supplies in connection with the performance of this Agreement;</FONT></TD></TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(C)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A claim or loss to any person injured or property damaged from the acts or omissions of Manager, its
officers, agents, or employee in the performance of this Agreement;</FONT></TD></TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(D)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A failure by Manager, its officers, directors, agents, or employees to observe the Constitution, laws,
regulations, ordinances or orders of the United States, the County of Pinal, and the State of Arizona;
and</FONT></TD></TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=144>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(E)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>A claim or loss resulting from an act or omission of inmates proximately caused or permitted by Manager&#146;s
negligent management or operation of the Prison.</FONT></TD></TR></TABLE><P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=144 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B>Costs, reasonable attorney&#146;s fees, expenses, and liabilities incurred in or about such claim,
action, or proceeding brought thereon.</FONT></TD>
</TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD width="144" vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B>Any and all liabilities (including strict liability), actions, demands, penalties, losses, costs
or expenses (including, without limitation, consultants fees, investigations and laboratory fees,
reasonable attorney&#146;s fees, expenses and remedial costs), suits, costs of any settlement or
judgements and claims of any and every kind whatsoever which may now or in the future be paid, incurred
or suffered by or asserted against the Indemnified Parties, the Department or by any person or entity
or governmental agency for and a result of Manager&#146;s actions, the presence on, or the escape,
seepage, leakage, spillage, discharge, emission or release from the Prison of any Hazardous Materials
or Hazardous Materials Contamination or arise out of or result from the environmental condition of
the Prison or the applicability of any of any state or federal laws relating to Hazardous Materials
(including, without limitation, CERCLA or any so-called federal, state or local &#147;Superfund&#148;
or &#147;Superlien&#148; laws, statute, law ordinance, code, rule, regulation, order or decree) (collectively,
&#147;Hazardous Materials Laws&#148;).</FONT></TD>
</TR>
<TR>
<TD width="144" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Said indemnification shall not be applicable to any claim, injury, death or damage to property arising
out of any act or omission on the part of the Indemnified Parties or independent contractors (other
than Manager) who are directly responsible to the Owner. Further said indemnification will not be
applicable to any and all events, circumstance, or occurrences which occur at the Prison after the
expiration of this Agreement.</FONT></TD></TR>
</TABLE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>In case any action or proceeding is brought against the Indemnified Parties by reason of any above listed claim, Manager, upon notice, shall defend against such action. Notice under this section shall be given to Manager within thirty (30) days of receipt of same. Neither the Manager nor the Owner will enter into any settlement with respect to any claim without first obtaining approval of the other parties.</FONT></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=40>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(b)</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B><B><I></I></B><B><I>Indemnification of Manager by the Owner.</I></B> &nbsp;&nbsp;The Owner shall indemnify and hold Manager, its officers, directors, attorneys, advisors, agents and
employees harmless for and against:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B><B><I></I></B>A breach or default on the part of the Owner in the performance of this Agreement;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B><B><I></I></B>A claim or loss to any person injured or property damaged from the acts or the omissions of the
Owner, its officers, directors, agents, attorneys, advisors, or employees (other than Manager and
its directors, officers, agents or employees) in the performance of this Agreement; and</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B></B><B></B><B><I></I></B>A failure of the Owner, its officers, directors, attorneys, agents, advisors, or, employees to
observe the laws of the United States and of the State of Arizona.</FONT></TD>
</TR></TABLE><P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">9</FONT> </p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="dispute"></a>19. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dispute Resolution.</B> &nbsp;&nbsp;Any and all disputes or claims between the parties arising out of or relating to this Agreement shall
be submitted to binding arbitration before a panel of three arbitrators in Arizona under the rules
of the American Arbitration Association. The parties further agree to faithfully observe this Agreement
and such rules, and to abide by and perform any arbitration award rendered by the arbitrators, and
that a judgment of the court having jurisdiction may be entered on the award.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="termination"></a>20. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Termination.</B> &nbsp;&nbsp;Notwithstanding anything contained herein which may be inconsistent or imply the contrary, this Agreement
  may not be terminated and the Manager may not be replaced by the Owner without the prior written
  consent of the Department (with a copy to ACA). The Manager shall not be terminated until a replacement
  Manager approved by the Department has been engaged or the Department elects to manage the Prison
  itself. Subject to such limitations, this Agreement may be terminated under the following circumstances:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> By the Owner at any time beginning October 29, 2012, without penalty or need to show cause provided
that the Agreement unless this Agreement is renewed at the direction of the Department in accordance
with Section 3 hereof;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      In the event of the breach of a material term of this Agreement, by the
      non-breaching party if the breach is not cured within 45 days after the
      breaching party receives written notice of the breach from the other party;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> [Reserved];</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> By either party, immediately upon receipt of notice by the other party if the Contract has been revoked
or has expired without renewal and no reasonable basis for further administrative appeal remains;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> By Manager (with a copy to ACA), within 90 days after the Owner&#146;s or Manager&#146;s receipt
of written notice of:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>the enactment, adoption, repeal, amendment, or judicial or administrative interpretation, of any
federal, state or local law, regulation or court order, or any collective bargaining agreement or
other contract; or</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>the decision of any governmental agency not to distribute any funds included as revenue in a Budget
approved by the Manager that has or will have a material adverse impact on the Prison or on Manager&#146;s
authority to perform its obligations under this Agreement, and the Manager fails to eliminate such
adverse impact.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=40 vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> [Reserved]</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> By mutual written consent of the parties (with a copy to ACA).</FONT></TD>
  </TR>
</TABLE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything herein which may be inconsistent or to the contrary, this Agreement shall terminate upon the consummation by the Department of a purchase of the</FONT></p>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10</FONT> </p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>Prison pursuant to the purchase option in the Contract, upon the election by the Department to manage the Prison itself pursuant to its rights under Section 2.9.7.18 (Scope of Work &#150; Program Requirements) of the Contract, or if the Department shall elect at any time to terminate the Contract.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="effect"></a>21.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
  <B>Effect of Termination. </B>&nbsp;&nbsp;Subject to Section 20 hereof, in the
  event this Agreement is terminated by either party for any reason, Manager shall
  be under no further obligation to begin, continue or complete any undertakings
  or activities contemplated by this Agreement. The termination of this Agreement
  shall in no way affect or impair any right which has accrued to either party
  hereto prior to the date when such termination shall become effective. In order
  to facilitate an orderly transition, the parties agree that in the event of
  any such termination, the parties shall reasonably cooperate with each other
  to develop a mutually agreeable transition plan to assure minimal disruption
  in the Prison.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="amendment"></a>22.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Amendment. </B>&nbsp;&nbsp;This Agreement may be amended only by a written instrument executed on behalf of both Manager and the
Owner, with prior approval of the Department (with a copy to ACA).</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="force"></a>23.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Force Majeure. </B>&nbsp;&nbsp;Notwithstanding any other provision of this Agreement, neither party hereto shall be liable for any
  delay in performance or inability to perform due to acts of God or the public enemy, war, riot, embargo,
  fire, explosion, sabotage, flood, accident; or without limiting the foregoing any circumstances of
  like or different character beyond its reasonable control; or labor trouble from whatever cause arising;
or compliance with any order, direction or request of any governmental officer, deputy or agency.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="relationship"></a>24.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Relationship of the Parties. </B>&nbsp;&nbsp;The relationship of Manager and the Owner hereunder shall be solely that of independent contractors
  and nothing herein shall be construed to create or imply any relationship of employment, agency or
  partnership or any relationship other than that of independent contractors. Manager and the Owner
  acknowledge and agree that each of them is engaged in a separate and independent business and neither
shall state, represent or imply any interest in or control over the business of the other.</FONT></P>
<P style="text-indent:30pt "><font size="2" face="Times New Roman, Times, Serif"><a name="governing"></a>25.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Governing Law. </B>&nbsp;&nbsp;This Agreement shall be governed by and construed in accordance with the internal laws of Arizona without giving effect to the principles of conflict of laws.</font></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="entire"></a>26.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Entire Agreement. </B>&nbsp;&nbsp;This Agreement constitutes the entire agreement of the parties hereto and supersedes all prior agreements
and understandings, written or oral, between the parties relating to the subject matter hereof.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="notices"></a>27.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Notices. </B>&nbsp;&nbsp;All notices, requests, demands and other communications hereunder shall be in writing and shall be
  deemed to have been duly given if: (i) delivered by hand, (ii) sent by overnight courier service,
  or (iii) sent by certified or registered mail, postage prepaid, return receipt requested, to the
  party to whom such notice is intended to be given at the addresses set forth herein. Any notice delivered
  in the manner provided above will be deemed given at the</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>11</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p><font face="Times New Roman, Times, Serif" size=2>time of receipt. Until changed by notice in the manner provided above, the addresses of the parties are as follows:</font></p>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD width=10% vAlign=top>&nbsp;</TD>
  <TD width=30% vAlign=top><font face="Times New Roman, Times, Serif" size=2>To the Owner:&nbsp;&nbsp;</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>Florence West Prison L.L.C.</font></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>% Community Finance Corporation </FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>186 East Broadway Blvd.</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Tucson, AZ 85701</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Attention: Gary Molenda</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Telephone: (520) 623-3377</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Facsimile: (520) 624-1728</FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>To the Manager:</font></TD>
  <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>Correctional Services Corporation</font></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>Suite 1000</font></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1819 Main Street</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Sarasota, FL 34236</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Attention: Jim Slattery</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Telephone: (941) 953-9199 </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Facsimile: (941) 953-9198</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>To ACA:</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>ACA Financial Guaranty Corporation</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>47<SUP>th</SUP> Floor</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>140 Broadway</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>New York, New York 10005 </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Attention: Surveillance</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Telephone: (212) 375-2000 </FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Facsimile: (212) 375-2100</FONT></TD>
</TR>
</TABLE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="counterparts"></a>28.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Counterparts. </B>&nbsp;&nbsp;This Agreement may be executed in one or more counterparts, each of which shall constitute an original
and all of which, taken together, shall constitute one original.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="invalidity"></a>29.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Invalidity. </B>&nbsp;&nbsp;If any provision of this Agreement, including without limitation any grant of authority by the Owner
  to Manager, is held to be invalid, unlawful or unenforceable, such provision shall be revised or
  applied in a manner that tenders it valid, lawful and enforceable to the fullest extent possible.
  In such event, the parties agree to use their best efforts to revise or apply such provision in accordance
  with the intent of this Agreement. The invalidity of any particular provision of this Agreement shall
not affect any other provision hereof.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="assignment"></a>30.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B></B><B>Assignment. </B>&nbsp;&nbsp;Except as provided below, neither Manager nor the Owner shall assign any of its rights or obligations
  hereunder without the prior written consent of the Department; provided, however, that Manager may,
  without the consent of the Owner, assign or subcontract the performance of (but not responsibility
  for) any duties and obligations of Manager hereunder in a manner consistent with the Contract as
  provided above. The Manager may, upon 60 days notice to, but without the consent of, the Owner, assign
  all of its rights and obligations hereunder to any entity with the prior written approval of the
  Department. The rights created by</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<P ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12</FONT> </p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>this Agreement shall inure to the benefit of, and the obligations created hereby shall be binding upon,
the successors, heirs and assigns of the respective parties hereto.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="waiver"></a>31.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Waiver. </B>&nbsp;&nbsp;No waiver of any provision of this Agreement shall be deemed to constitute a waiver of any other provision.
No such waiver shall be binding unless it is in writing and no waiver will be held to continue unless
otherwise expressly stated by the party waiving the provision.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="survival" id="survival"></a>32.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Survival. </B>&nbsp;&nbsp;The provisions contained in paragraphs 8(c) (Liability for Revenue Shortfalls or Unbudgeted Expenses),
  9 (Payment for Services), 10 (Intellectual Property), 18 (Indemnification), and 21 (Effect of Termination),
shall survive the termination of this Agreement and remain in full force and effect.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="further"></a>33.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Further Assurances. </B>&nbsp;&nbsp;In order to more fully assure each party of the benefit of contracting hereunder, each party agrees
  to deliver to the other party such confirmations of fact, records, certificates, instruments of assignment
  and other documents and things as may be reasonably requested by the other party to carry out the
  purposes of this Agreement.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="litigation"></a>34.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Litigation</B></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width=40 vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<B><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B> <B><I>Prior Occurrences. </I></B>&nbsp;&nbsp;The Manager shall remain solely responsible for any losses or costs resulting from litigation pending
at the time this Agreement becomes effective or for lawsuits arising thereafter relating to events
or conditions which occurred or existed prior to the effective date of this Agreement. Owner agrees
to cooperate with the Manager in the defense of such suits, if any.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B><I>Post Conviction Actions. </I></B>&nbsp;&nbsp;Owner shall not be responsible for defense of any post conviction action, including appeals and writs
of habeas corpus filed by any inmate challenging the underlying judgement of conviction or the administration
of the sentence imposed.</FONT></TD>
</TR></TABLE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="third"></a>35.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Third Party Rights. </B>&nbsp;&nbsp;The Department is hereby specifically named as a third party beneficiary to this Agreement. The parties
hereto expressly acknowledge that the Department shall maintain a high level of control over the
operations and management of the Prison. To that end, (i) to the extent of any conflict between the
terms of this Agreement and the terms of the Contract, the terms of the Contract will prevail; (ii)
subject to the terms of this Agreement, the Owner may not terminate or replace the Manager without
the prior written consent of the Department; and (iii) no amendment to or modification of the terms
of this Agreement shall be valid or effective unless and until approved by the Department. The provisions
of this Agreement are otherwise for the sole benefit of the parties hereto and shall not be construed
as conferring any rights to any other person other than ACA as specified herein.</FONT></P>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="nonrecourse"></a>36.<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <B>Nonrecourse Obligation. </B>&nbsp;&nbsp;Any obligations of the Owner hereunder are nonrecourse and are limited solely to moneys received by
  the Trustee pursuant to the Contract, or through funds made available pursuant to the Indenture or
  any insurance policies.</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>13</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="disclaimer"></a>37. <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclaimer Regarding the Condition of the Property.</B></FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>MANAGER
  HAS BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PRISON, AND IS AND WILL BE RELYING
  SOLELY ON ITS OWN INSPECTION OF THE PRISON IN MAKING ITS DECISION TO ENTER INTO
  THIS AGREEMENT. MANAGER SHALL ASSUME THE RISK THAT ADVERSE MATTERS CONCERNING
  THE PRISON MAY NOT HAVE BEEN REVEALED BY MANAGER&#146;S INSPECTION OF THE PRISON.
  OWNER HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS,
  WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES OF ANY KIND OR CHARACTER
  WHATSOEVER, WHETHER EXPRESS CONCERNING OR WITH RESPECT TO THE PRISON DESCRIBED
  HEREIN, INCLUDING COVENANTS, AGREEMENTS, OR GUARANTIES CONCERNING (A) THE NATURE,
  QUALITY OR CONDITION OF THE PRISON OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN;
  (B) THE SUITABILITY OF THE PRISON OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN
  FOR ANY USE OR PURPOSE; OR (C) THE MERCHANTABILITY OF THE PRISON OR ANY OF THE
  FIXTURES OR EQUIPMENT THEREIN. MANAGER HEREBY ACCEPTS THE PRISON DESCRIBED IN
  ITS EXISTING CONDITION, &#147;AS IS,&#148; WITH ALL FAULTS AND DEFECTS OF ANY
  NATURE WHATSOEVER. MANAGER SHALL NOT HAVE ANY RIGHT TO RECOURSE AGAINST OWNER
  ON ACCOUNT OF ANY LOSS, COST OR EXPENSE SUFFERED OR INCURRED BY MANAGER WITH
  REGARD TO ANY OF THE PRECEDING MATTERS.</FONT></p>
<p style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2><a name="miscellaneous"></a>38. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Miscellaneous. </B>&nbsp;&nbsp;The recitals and preamble to this Agreement are a substantive part hereof and shall be interpreted and given effect as such and are incorporated into this Agreement by this reference.</FONT></p>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]</FONT></P>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>14</FONT></P>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P style="text-indent:30pt "><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above written.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=55% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Manager: CORRECTIONAL SERVICES </FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><font face="Times New Roman, Times, Serif" size=2>CORPORATION</font></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: <U>&nbsp;&nbsp;/s/ James F Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name: <U>&nbsp;&nbsp;James F Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title: <U>&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Owner: FLORENCE WEST PRISON L.L.C.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: Community Finance Corporation, an</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: ________________________________</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name: ______________________________</FONT></TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title: _______________________________</FONT></TD>
</TR>
</TABLE>
<p align="center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;[SIGNATURE PAGE TO MANAGEMENT AGREEMENT]</FONT> </p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above

written.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=55% vAlign=top>&nbsp;</TD>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Manager: <B>CORRECTIONAL SERVICES </B><B><br>
  CORPORATION</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: ______________________________________</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name: ____________________________________</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title: _____________________________________</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Owner: <B>FLORENCE WEST PRISON L.L.C.</B></FONT></TD>
  </TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD width="5%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: </FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Community Finance Corporation, an</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Arizona nonprofit corporation, its sole </FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>member</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By: <U></U></FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>/s/ Michael S. Hammond&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name:</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;Michael S. Hammond</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title: </FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>President</FONT></TD>
</TR>
</TABLE>
<p align="center"><FONT face="Times New Roman, Times, Serif" size=2>[SIGNATURE PAGE TO MANAGEMENT AGREEMENT]</FONT></p>
<hr color=#000000 noshade>
<p style="page-break-before: always">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" align="center" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width=20% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" align="center" vAlign=top><b><font size="2" face="Times New Roman, Times, serif"><a name="schedule1"></a>SCHEDULE 1</font></b></TD>
    <TD width=20% vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="2" align="center" vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" align="center" vAlign=top><b><font size="2" face="Times New Roman, Times, serif">MANAGEMENT FEES</font></b></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif"><u>Period</u></font></TD>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif"><u>Number of Inmates</u></font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif"><u>Management Fee</u></font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">December 17, 2002</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width=27% vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">to</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">December 14, 2003</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">1 &#150; 600</font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">$3,552,728</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">601 &#150; 650</font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">$3,706,858</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">December 15, 2003</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">to</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">December 14, 2004,</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">651 &#150; 700</font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">$3,860,988</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">and subsequent</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">701 &#150; 750</font></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">$4,015,118</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">Periods thereafter</font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD align="center" vAlign=top>&nbsp;</TD>
    <TD align="right" vAlign=top>&nbsp;</TD>
    <TD vAlign=top></TD>
    <TD align="center" vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<hr color=#000000 noshade>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>17
<FILENAME>ex10-91.htm
<DESCRIPTION>EXHIBIT 10.91
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<P align=right><FONT face="Arial" size=2><b>Exhibit 10.91</b></FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="center" valign="bottom">
    <td width="94%"><FONT face="arial" size=2>Greater Fort Worth Association of REALTORS, Inc.<br>
    </FONT><FONT face="arial" size=4><B>Commercial-Industrial Lease Agreement</B></FONT></td>
    <td width="6%" align="right"><font face="arial"><img src="logo.jpg" width="42" height="44"></font></td>
  </tr>
</table>

<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td colspan="4"><FONT face="arial" size=2><B>ARTICLE ONE: BASIC TERMS</B></FONT><font size="2" face="arial">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td width="5%"><font size="2" face="arial">&nbsp;</font></td>
    <td width="2%"><font size="2" face="arial">&nbsp;</font></td>
    <td width="15%"><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.01</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2>DATE OF LEASE</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May 16&nbsp;</U></FONT><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><FONT face="arial" size=2>, 19<u>94&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.02</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2>LANDLORD:</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2><U>&nbsp;&nbsp;Region Enterprises, Inc., a Texas corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><font size="2" face="arial">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>______________________________________________________________________</td>
  </tr>
  <tr valign="bottom">
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.03</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2>TENANT:</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><FONT face="arial" size=2><U>Esmor Fort Worth, Inc., a Texas corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><font size="2" face="arial">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>______________________________________________________________________</td>
  </tr>
  <tr>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
    <td><font size="1" face="arial">&nbsp;&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.04</FONT><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td colspan="2"><FONT face="arial" size=2>PROPERTY: The entire <U>property known as the Downtown</U>&nbsp;Motor Inn</FONT></td>
  </tr>
  <tr valign="bottom">
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td><font size="2" face="arial">&nbsp;</font></td>
    <td colspan="2" nowrap><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;600 North Henderson Street&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td><font face="arial">&nbsp;</font></td>
    <td><font face="arial">&nbsp;</font></td>
    <td colspan="2"><font face="arial">&nbsp;</font><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(street address)</FONT></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fort Worth&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> (Tarrant Country, Texas)</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" valign="bottom"><FONT face="arial" size=2>&nbsp;</FONT><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(City)</FONT></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>Legal Description: <U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">____________________________________________________________________________________</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.05</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>LEASE TERM: <U></U></FONT><FONT face="arial" size=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> months, commencing on the<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16th&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, (19 <U>94&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>,)</FONT></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>and ending on the <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15th&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, day of&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;April&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 19 &nbsp;<u>99&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> .</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.06</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>RENT: <U>&nbsp;&nbsp;See Section 16.01 for Rent provisions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.07</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="arial" size=2>SECURITY DEPOSIT (See Section 3.03): <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Dollars</FONT></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>($<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U>). (If none, so state)</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.08</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2" nowrap><FONT face="arial" size=2>LAST MONTH&#146;S RENT PAYABLE IN ADVANCE: <U>&nbsp;&nbsp;&nbsp;See Section 16.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Dollars</FONT></td>
  </tr>
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>($ _________________  ). (If none, so state)</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td><FONT face="arial" size=2>1.09</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>PERMITTED USE (See Section 4.01) <U>&nbsp;A correctional facility, residential treatment center or&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td colspan="4" nowrap><FONT face="arial" size=2> <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other lawful purpose. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="arial" size=2>1.10</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>BASE YEAR FOR TAXES (See Section 12.02)__________________________</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="arial" size=2>1.11</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>RENT TO BE PAID&nbsp;TO: <U>&nbsp;&nbsp;&nbsp;Region Enterprises, Inc. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>Address: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7200 Evergreen Road, Fort Worth,&nbsp;Texas 76118&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="arial" size=2>1.12</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>DAILY RATE CHARGE (See Section 3.02) <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> Dollars</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>($<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U>) per day. (If none, so state)</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="arial" size=2>1.13</FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>PRINCIPAL REALTOR (If none, so state): <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="arial" size=2>1.14<FONT face="arial" size=2></FONT></FONT></td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="arial" size=2>COOPERATING REALTOR (If none, so state): <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
</table><br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(1)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="arial" size=2><B>ARTICLE TWO: LEASE AND LEASE TERM</B></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2><I>2.</I>01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LEASE OF PROPERTY. Landlord hereby leases the Property
to Tenant and Tenant hereby leases the Property from Landlord for the Lease Term stated in Section
1.05. As used herein, the &#147;Commencement Date&#148; shall be the date specified in Section 1.05
for the beginning of the Lease Term.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2>2.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HOLDING OVER. Tenant shall vacate the Property upon the expiration
or earlier termination of this Lease. Tenant shall reim&shy;burse Landlord for and indemnify Landlord
against all damages incurred by Landlord from any delay by Tenant in vacating the Property. If Tenant
does not vacate the Property upon the expiration or earlier termination of this Lease, Tenant&#146;s
occupancy of the Property shall be a &#147;month-to-month&#148; tenancy, subject to all the terms
and provisions applicable to a month-to-month tenancy, except that the rent then in effect shall
be increased by fifty percent (50%)</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2><B>ARTICLE THREE: RENT AND SECURITY DEPOSIT</B></FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>3.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RENT. Tenant agrees to pay rent for the Property at the
rate specified in Section 16.01. Tenant shall pay the rent for the first and last two months of the
Lease Term upon the execution of this Lease. One monthly rental installment shall be due and payable on or before the same day of the second calendar month of the Lease Term as the Commencement
Date, and a like monthly installment shall be due and payable on or before the same day of each succeeding
calendar month during the Lease Term. All rent shall be paid to the party designated in Section 1.11
at the address stated herein for such party.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2>3.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LATE CHARGE. If any rent due hereunder is not received within five (5) days after its due date,
Tenant shall pay the party named in Section 1.11 above a late charge equal to the sum stated in Section
1.12 above for each day from its due date until such delinquent sum is received. The parties agree
that such late charge represents a fair and reasonable estimate of the costs of Landlord will incur
by reason of such late payment.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>3.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECURITY DEPOSIT. Upon execution of hereof, Tenant shall deposit
with the party named in Section 1.11 above a cash Security Deposit in the sum stated in Section 1.07.
Landlord may apply all or part of the Security Deposit to any unpaid rent or other charges due from
Tenant or to cure any other defaults of Tenant. No interest shall be paid on the Security Deposit.
Landlord shall not be required to keep the Security Deposit separate from its other accounts and
no trust relationship is created in respect to the Security Deposit. Upon any termination of the
Lease not resulting from Tenant&#146;s default, and after Tenant has vacated the Property in the
manner required by this Lease, Landlord shall refund the unused portion of the Security Deposit to Tenant.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><b><FONT face="arial" size=2>ARTICLE FOUR: USE OF PROPERTY</FONT></b></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PERMITTED USE. Tenant may use the Property only for Permitted Use
stated in Section 1.09</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMPLIANCE WITH LAW. Tenant shall comply with all governmental laws,
ordinances and regulations applicable to the use of the Property, and shall promptly comply with
all governmental orders and directives for the correction, prevention and abatement of nuisances
on or upon, or connected with the Property, all at Tenant&#146;s sole expense. Tenant agrees to not
store or permit hazardous or toxic substances to be placed on the premises without prior written
permission from the Landlord. Hazardous or toxic substances as referred to in this paragraph shall
be defined by U.S. Environmental Protection Agency Regulations and/or Texas Water Commission Regulations.
Tenant further agrees to not place underground or above ground storage tanks on the leased premises
without prior written consent of Landlord.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SIGNS. Without the prior written consent
of Landlord, Tenant shall not place or affix any signs or other objects upon or to the Property,
including but not limited to the roof or exterior walls of the building or other improvements thereon,
or paint (except for a color approved by Landlord) or otherwise deface said exterior walls. Any signs
installed by Tenant shall conform with applicable laws and deed and other restrictions. Tenant shall
remove all signs at the termination of this Lease and shall repair any damage and close any holes
caused or revealed by such removal. See Section 16.09 for additional sign provisions.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UTILITIES. Tenant shall pay the cost of all
utility services, including but not limited to initial connection charges, all charges for gas, water
and electricity used on the Property, and for all electric lights, telephone service, trash removal, lamps and tubes. </FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2>4.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LANDLORD&#146;S ACCESS. Landlord and its
authorized agents shall have the right, during normal business hours, to enter the Property and any
buildings and other improvements thereon to view, inspect, repair or show the Property, * with Tenant&#146;s
prior consent, which will not be unreasonably withheld.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INTERRUPTION OF SERVICE. Interruption or curtailment of services
furnished to the Property, if caused by strikes, mechanical difficulties, or any cause beyond Landlord&#146;s
control, whether similar or dissimilar to those enumerated, shall not entitle Tenant to any claim
against Landlord or to any abatement in rent, nor shall the same constitute constructive or partial
eviction, unless Landlord fails to take such measures as may be reasonable in the circumstances to
restore the service without undue delay. If the premises are rendered untenantable in whole or in
part for fifteen (15) business days because of such interruption or curtailment of services (other
than caused by any act or omission of Tenant or its invitees, employees or customers there shall
be a proportionate abatement of rent during the period of such untenantability.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>4.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXEMPTIONS FROM LIABILITY. Landlord shall not be liable for any damage
or injury to the person, business (or any loss of income therefrom), goods, wares, merchandise or
other property of Tenant, Tenant&#146;s employees, invitees, customers or any other person in or
about the Property, whether such damage or injury is caused by or results from: (a) fire, steam,
electricity, water, gas, or rain; (b) the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures or any other cause;
(c) conditions arising on or about the Property or upon other portions of any building of which the
Property is a part, or from other sources or places; or (d) any act or omission of any other tenant
of any building of which the Property is a part. Landlord shall not be liable for any such damage
or injury even though the cause of or the means of repairing such damage or injury are not accessible
to Tenant. The provisions of this Section 4.07 shall not, however, exempt Landlord from liability
for Landlord&#146;s gross negligence or willful
misconduct.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><b><FONT face="arial" size=2>ARTICLE FIVE: MAINTENANCE, REPAIRS AND ALTERATIONS</FONT></b></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>5.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCEPTANCE OF PREMISES. Tenant acknowledges that Tenant
has fully inspected the Property. Tenant hereby accepts the property and the buildings and improvements
situated thereon, as suitable for the purpose for which the same are leased, in their present condition
(including all latent or environmental defects or risks), with such changes therein as may be caused
by reasonable deterioration between the date hereof and the Commencement Date; Landlord expressly
disclaims and Tenant waives any and all warranties (including the warranty of suitability), representations
and obliga&shy;tions of Landlord or Landlord&#146;s agents that are not expressly stated herein. </FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2>* &nbsp;&nbsp;Subject to the regulation of the Texas Dept (2) of Criminal Justice, Pardons, and  Paroles Division, if applicable.</FONT></TD>
</TR></TABLE>
<br>


<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp; </FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="arial" size=2>5.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MAINTENANCE AND REPAIRS BY LANDLORD. Landlord shall at his expense
maintain only the roof, foundation, and the structural soundness of the exterior walls (excluding
all windows, window glass, plate glass, and all doors) of the improvements on the Property in good
repair and condition, except for reasonable wear and tear and any damage caused by the act or omission
of Tenant, or Tenant&#146;s invitees, employees or customers. Tenant shall give immediate written
notice to Landlord of the need for repairs or corrections and Landlord shall proceed promptly to
make such repairs.</FONT></P>
<P><FONT face="arial" size=2>5.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MAINTENANCE AND REPAIRS BY TENANT. Tenant shall at his expense and risk
maintain all other parts of the improvements on the Property in good repair and condition, including
but not limited to repairs (including necessary replacement) to the interior plumbing, windows, window
glass, plate glass, doors, heating system, air condition equipment, fire protection sprinkler system,
elevators, and the interior of the said improvements in general; and including the reasonable care
of landscaping and regular mowing of the grass, and maintenance of the paving outside of the improvements
and any railroad siding. In the event Tenant should neglect reasonably to maintain the demised premises,
Landlord shall have the right (but not the obligation) to cause repairs or corrections to be made
and any reasonable costs therefor shall be payable by Tenant to Landlord as additional rental on
the next rental payment due date. Upon termination of this Lease, Tenant shall deliver up the Property
in good repair and condition, reasonable wear and tear, and damage by fire, windstorms or other casualty
excepted. Tenant shall repair any damage caused by Tenant&#146;s act or omission, or the act or omission
of Tenant&#146;s invitees, employees or customers. See Section 16.10 for additional&nbsp;Maintenance provisions.</FONT></P>
<P><FONT face="arial" size=2>5.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALTERATIONS.
  Tenant shall not create any openings in the roof or exterior wall, or make any
  alterations, additions or improve&shy;ments to the Property without the prior
  written consent of Landlord. Consent to nonstructural alterations, additions
  or improvements shall not be unreasonably withheld by Landlord. Tenant shall
  have the right to erect or install shelves, bins, machinery, air conditioning
  or heating equipment and trade fixtures, provided that Tenant complies with
  all applicable governmental laws, ordinances and regulations. At expiration
  or termination of this Lease, Tenant shall subject to the restrictions of Section
  5.05 below, have the right to remove such items so installed by it, provided
  Tenant is not in default at the time of such removal and provided further that
  Tenant shall, at the time of removal of such items, repair in a good and workmanlike
  manner any damage caused by installation or removal thereof. Tenant shall pay
  for all costs incurred or arising out of alterations, additions or improvements
  in or to the Property and shall not permit a mechanic&#146;s or materialman&#146;s
  lien to be asserted against the Property. See Section 16.04 for additional&nbsp;provisions.</FONT></P>
<P><FONT face="arial" size=2>5.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONDITION UPON TERMINATION. Upon termination
of this Lease, Tenant shall surrender the Property to Landlord, broom clean and in the same condition
as received except for ordinary wear and tear which Tenant was not otherwise obligated to remedy
under any provision of this Lease. However, Tenant shall not be obligated to repair any damage which
Landlord is required to repair under Article Five. In addition, Landlord may require Tenant to remove
any alterations, additions or improvements (whether or not made with Landlord&#146;s consent) prior
to the termination of this Lease. In no event, however, shall tenant remove any of the following
materials or equipment without Landlord&#146;s prior written consent: any power wiring or power panels;
lighting or lighting fixtures; wall coverings; drapes, blinds or other window coverings; carpets
or other floor coverings; heaters; air conditioners or any other heating or air conditioning equipment;
fencing or security gates; or other similar building operation equipment and decorations.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2><B>ARTICLE SIX: INSURANCE AND INDEMNITY</B></FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="arial" size=2>See Section 16.08 for Property Insurance Provisions.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
    <TD vAlign=top><FONT face="arial" size=2>6.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIABILITY
      INSURANCE. During the Lease Term, Tenant shall maintain a policy of comprehensive
      public liability insurance, at Tenant&#146;s expense, insuring Landlord
      against liability arising out of the ownership, use occupancy or maintenance
      of the Property. The initial amount of such insurance shall be at least
      $3,000,000. Such policy shall contain a provision which prohibits cancellation
      or modifica&shy;tion of the policy except upon thirty (30) days prior written
      notice to Landlord. Tenant shall deliver a copy of such policy or certificate
      (or a renewal thereof) to Landlord prior to the Commencement Date and prior
      to the expiration of any such policy during the Lease Term. If Tenant fails
      to maintain such policy, Landlord may elect to maintain such insurance at
      Tenant&#146;s expense.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>6.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INDEMNITY. Tenant hereby agrees to indemnify Landlord and hold harmless from
any loss, expense or claims arising out of any injury to persons or damage to property on or about
the Property or any adjacent area owned by Landlord caused by the negligence or misconduct of Tenant,
its employees, subtenants, licensees or concessionaires or any other person entering the Property
under express or implied invitation of Tenant, or arising out of the use of the Property by Tenant
and the conduct of its business therein, or arising out of any breach or default by Tenant in the
performance of its obligations hereunder. Tenant shall not be liable for any injury or damage caused
by the negligence or misconduct of Landlord, or its employees or agents, and Landlord agrees to indemnify
Tenant and hold it harmless from any loss, expense or damage arising out of such damage or injury.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>6.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WAIVER OF SUBROGATION. Landlord and Tenant each hereby waive any and all
rights of recovery against the other, or against the officers, employees, agents or representatives
of the other, for loss of or damage to its property, or the property of others under its control,
if such loss or damage is covered by any insurance policy in force (whether or not described in this
Lease) at the time of such loss or damage; provided however such waiver is made only on the condition
that it does not adversely affect the right of the insured to recover under the applicable insurance
policy or policies.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2><B>ARTICLE SEVEN: ASSIGNMENT AND SUBLETTING</B></FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>Tenant shall not assign this agreement or sublet the premises, or any part thereof, except to an affiliate
of Tenant, without the consent of the Landlord in writing, which consent Landlord agrees it will
not unreasonably withhold, but no assignment or subletting shall release Tenant from any obligation
hereunder.</FONT></TD></TR></TABLE><br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;&nbsp;</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P><FONT face="arial" size=2><B>ARTICLE EIGHT: DAMAGE OR DESTRUCTION</B></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2>8.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PARTIAL DAMAGE. In event the improvements situated on the property
are partially damaged, or rendered partially unfit for occupancy, by fire or other casualty, Tenant shall give immediate written notice thereof to Landlord.
If Landlord&#146;s insurance proceeds are sufficient to pay for the necessary repairs, and if the
repairs can reasonably be made within 90 days after Landlord receives such written notice from Tenant,
Landlord shall forthwith cause such repairs to be made and this Lease shall not terminate. While
such repairs are being made, Landlord shall allow Tenant a fair reduction in rent in proportion to
the extent the improvements are partially unfit for occupancy, is due to the act or omission of Tenant
or Tenant&#146;s employees, invitees or licensees.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>8.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UNINSURED PARTIAL DAMAGE OR TOTAL OR SUBSTANTIAL DESTRUCTION. In the event of
total or substantial destruction of the improvements situated on the Property by fire or other casualty,
Tenant shall give immediate written notice thereof to Landlord. If Landlord&#146;s insurance proceeds
are insufficient to pay for the necessary repairs or restoration, or the repairs or restoration cannot
reason&shy;ably be made within 90 days after Landlord receives such written notice from Tenant, this
Lease shall terminate and the rent shall be paid to the date of such casualty. However, if such damage
or destruction is due to the act or omission of Tenant or tenant&#146;s employees, invitees or licensees,
Tenant shall pay to Landlord, within 60 days after the occurrence of such casualty, any portion of
the anticipated cost of repairing or restoring the improvements to the same condition as on the date
of this Lease that are not reimbursed to Landlord by insurance proceeds. Such anticipated cost shall
be determined by Landlord. Tenant shall make such payment to Landlord, whether or not Landlord repairs
or restores the improvements.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2><B>ARTICLE NINE: DEFAULT AND REMEDIES</B></FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DEFAULT. The following events shall
be deemed to be events of default under this Lease:</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
    <TD vAlign=top><FONT face="arial" size=2>a. &nbsp;Failure of Tenant to pay
      any installment of the rent or other sum payable to Landlord hereunder on
      the date that same is due and such failure shall continue for a period of
      ten (10) days after written notice thereof to Tenant;</FONT></TD>
  </TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>b. &nbsp;Failure of Tenant to comply with any term, condition or covenant of this Lease, other than
the payment of rent or other sum of money, and such failure shall not be cured within thirty (30)
days after written notice thereof to Tenant;</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>c. &nbsp;Tenant shall make an assignment for the benefit of creditors;</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>d. &nbsp;Abandonment by Tenant of any substantial portion of the Property or cessation of the use of
the use of the Property for the purpose leased for a period of more than 5 consecutive calendar days.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>9.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REMEDIES. Upon the occurrence of any of the
events of default listed in Section 9.01, Landlord shall have the option to pursue any one or more
of the following remedies without any notice or demand whatsoever.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>a. &nbsp;Terminate this Lease, in which event Tenant shall immediately surrender the Property to Landlord.
If Tenant fails to so surrender such premises, Landlord may, without prejudice to any other remedy
which it may have for possession of the Property or arrearages in rent, enter upon and take possession
of the Property and expel or remove Tenant and any other person who may be occupying such premises
or any part thereof. Landlord may hold Tenant liable for all rent and other indebtedness accrued
to the date of such termination, plus, as liquidated damages and not as a penalty, an amount equal
to the then present value of rent provided for hereunder for the remaining portion of the Lease Term
(had this Lease not been terminated) using a ten (10%) percent value discount factor. In the event
Landlord elects to terminate this Lease by reason of an event of default, in lieu of recovering from
Tenant under the preceding sentence, Landlord may hold Tenant liable for the amount of all loss and
damage which Landlord may suffer by reason of such termination, whether through inability to relet the Property on satisfactory terms or otherwise.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>b. &nbsp;Enter upon and take possession of the Property without terminating this Lease, and expel or
remove Tenant and any other person who may be occupying such premises, or any part thereof. Landlord
may relet the Property and receive the rent therefor. Tenant agrees to pay to Landlord monthly or
on demand from time to time any deficiency that may arise by reason of any such releting. In determining
the amount of such deficiency, the brokerage commission, attorneys fees, remodeling expenses and
other costs of reletting shall be sub&shy;tracted from the amount of rent received under such reletting.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>c. &nbsp;Enter upon the Property without terminating the Lease, and do whatever Tenant is obligated
to due under the terms of this Lease. Tenant agrees to pay Landlord on demand for expenses which
Landlord may incur in thus effecting compliance with Tenant&#146;s obligations under this Lease,
together with interest thereon at the rate of eighteen (18%) percent per annum from the date expended
until paid. Landlord shall not be liable for any damages resulting to Tenant from such action, whether
caused by negligence of Landlord or otherwise.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="arial" size=2>d. &nbsp;Tenant is presumed to have abandoned the Property if Tenant&#146;s goods, equipment, or other
property are removed from the Property in an amount substantial enough to indicate a probable intent
to abandon the Property and such removal is not within the normal course of Tenant&#146;s business.
In the event that Tenant is presumed to have abandoned the Property, Landlord may remove and store
any property of Tenant that remains on the Property. Landlord may store such property at any location
satisfactory to Landlord. Landlord may dispose of such stored property after the expiration of sixty
(60) days from the date such property is so stored. Landlord shall deliver by certified mail to Tenant
at Tenant&#146;s last known address as shown by Landlord&#146;s records a notice stating that Landlord
may dispose of Tenant&#146;s property if Tenant does not claim the same within sixty (60) days after
the date the property was stored.</FONT></TD></TR></TABLE>
<P><FONT face="arial" size=2>Upon the occurrence of any of such events of default, Landlord may enter upon and take possession of
the Property by force, if necessary, without being liable for prosecution of any claim for damages
therefor. Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other
remedies herein provided or any other remedies provided by law, nor shall pursuit of any remedy herein
provided constitute a forfeiture or waiver of any rent due to landlord hereunder or of any damages
accruing to Landlord by reason of the violation of any of the terms, conditions and covenants herein
contained.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><b><FONT face="arial" size=2>ARTICLE TEN: REALTOR&#146;S COMMISSIONS</FONT></b></TD>
</TR></TABLE>
<br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(4)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="arial" size=2><B>ARTICLE ELEVEN: CONDEMNATION</B></FONT></TD></TR></TABLE>
<P><FONT face="arial" size=2>Landlord shall notify Tenant if Landlord receives notice of any potential condemnation of the Property
or portion thereof. If all or any portion of the Property is taken under the power of eminent domain
or sold under the threat of that power (all of which are called &#147;Condemnation&#148;), this Lease
shall terminate as to the part taken or sold on the date the condemning authority takes title or
possession. If such taking substantially interferes with Tenant&#146;s use of the premises Tenant
may terminate this Lease by delivering written notice to Landlord within ten (10) days after receipt
of written notice of such taking (or in the absence of such notice, within ten (10) days after the
condemning authority takes possession). If Tenant does not  terminates this Lease, this Lease shall remain
in effect as to the portion of the Property not taken, except that the rent shall be reduced in proportion
to the reduction in floor area of the Property. Any Condemnation award or payment shall be distributed
in the following order; (a) first, to any ground lessor, mortgagee or beneficiary under a deed of
trust encumbering the Property, the amount of its interest in the Property; (b) second, to Tenant,
only the amount of any award specifically designated for loss of or damage to Tenant&#146;s trade
fixtures or removable personal property; and (c) third, to Landlord, the remainder of such award,
whether as compensation for reduction in the value of the leasehold, the taking of the fee, or otherwise.
If this Lease is not terminated, Landlord shall repair any damage to the Property caused by the Condemnation,
except that Landlord shall not be obligated to repair any damage for which Tenant has been reimbursed
by the condemning authority. If the severance damages re&shy;ceived by Landlord are not sufficient
to pay for such repair, Landlord shall have the right to either terminate this Lease or make such
repair at Landlord&#146;s expense.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD colspan="2" vAlign=top><FONT face="arial" size=2><B>ARTICLE TWELVE: TAXES</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=50>&nbsp;</TD>
<TD vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;See Section 16.07 for Taxes to be paid by Tenant.</FONT></TD></TR></TABLE>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><FONT face="arial" size=2>12.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONTEST BY TENANT. Tenant may, at its own expense, contest any tax or assessment for which Tenant may be wholly or partially responsible. Except as hereinafter provided, Tenant need not pay the tax, assessment or charge during the pendency of the contest and Tenant may prevent Landlord from paying any tax, assessment or charge that Tenant is contesting pursuant to this section 12.04, pending any resolution of the contest, by depositing with Landlord, before such tax, assessment or charge becomes delinquent, Tenant&#146;s portion of the full amount of the tax or assessment, plus the full amount of any penalty that might be imposed for failure to make timely payment and six (6) months of interest at the rate imposed by the entity levying the tax or assessment. Upon final resolution of the tax or assessment contest, Landlord may use the money deposited by Tenant to pay Tenant&#146;s portion of any tax or assessment, plus

 the</FONT></TD>
  </TR>
</TABLE>
<br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(5)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<hr color=#000000 noshade>
<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>full amount of any penalty or interest, due under the final resolution, and Tenant shall receive the balance of the deposit, if any. If the deposit is insufficient to pay these amounts, Tenant must immediately pay such insufficiency to Landlord. Notwithstanding the foregoing, Landlord may pay, or require Tenant to pay, any tax, assessment or charge, or any portion thereof, for which Tenant is responsible under this Article Twelve, pending resolution of Tenant&#146;s contest of the tax, assessment or charge, if payment is demanded by a holder of a mortgage on the property, or if failure to pay will subject all or part of the Property to forfeiture or loss. Landlord reserves the right to contest any tax, assessment or charge on the Property. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2><B>ARTICLE THIRTEEN: LANDLORD&#146;S LIEN</B></FONT></TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>In addition to the statutory landlord&#146;s lien, Tenant hereby grants to Landlord a security interest to secure payment of all rent and other sums of money becoming due hereunder from Tenant, upon all goods, wares, equipment, fixtures, furniture and other personal property of Tenant situated in or upon the Property, together with the proceeds from the sale or lease thereof. Such property shall not be removed without the consent of Landlord until all arrearages in rent and other sums of money then due to Landlord hereunder shall first have been paid and discharged. Upon request by Landlord, Tenant agrees to execute and deliver to Landlord a financing statement in form sufficient to perfect the security interest of Landlord in the aforementioned property and proceeds thereof under the provisions of the Uniform Commercial Code in force in the State of Texas.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2><b>ARTICLE FOURTEEN: SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE</b></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>14.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBORDINATION. Landlord shall have the right to subordinate this lease to any ground lease, deed of trust or mortgage encum&shy;bering the Property, and advances made on the security thereof and any renewals, modifications, consolidations, replacements or exten&shy;sions thereof, whenever made or recorded. However, Tenant&#146;s right to quiet possession of the Property during the Lease Term shall not be disturbed if Tenant pays the rent and performs all of Tenant&#146;s obligations under this Lease and is not otherwise in default. If any ground lessor, beneficiary or mortgagee elects to have this Lease prior to the lien of its ground lease, deed of trust or mortgage and gives written notice thereof to Tenant, this Lease shall be deemed prior to such ground lease, deed of trust or mortgage whether this lease is dated prior or subsequent to the date of said ground lease, deed of trust or mortgage or the date of r

ecording thereof. Landlord warrants&nbsp;that no liens affect the premises at this time.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>14.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ATTORNMENT. If Landlord&#146;s interest in the Property is acquired by any ground lessor, beneficiary under a deed of trust, mort&shy;gage or purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or successor to Landlord&#146;s interest in the Property and recognize such transferee or successor as landlord under this Lease. Tenant waives the protection of any statue or rule of law which gives or purports to give Tenant any right to terminate this Lease or surrender possession of the property upon the transfer of Landlord&#146;s interest.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>14.03&nbsp;&nbsp;&nbsp;&nbsp;SIGNING OF DOCUMENTS. Tenant shall sign and deliver any instruments or documents necessary or appropriate to evidence any such attornment or subordination or agreement to do so. If Tenant fails to do so within ten (10) days after written request, Tenant hereby makes, constitutes and irrevocably appoints Landlord, or any transferee or successor of Landlord the&nbsp;attorney-in-fact of Tenant to execute and deliver any such instrument or document.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>14.04&nbsp;&nbsp; &nbsp;ESTOPPEL CERTIFICATES</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>(a)<FONT face="arial" size=2>&nbsp;&nbsp;</FONT>Upon Landlord&#146;s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying (i) that none of the terms or provisions of this Lease have been changed (or if they have been changed, stating how they have been changed); (ii) that this Lease has not been cancelled or terminated; (iii) the last due date of payment of the rent and other charges and the time period covered by such payment; and (iv) that Landlord is not in default under this Lease (or, if Landlord is claimed to be in default, stating why). Tenant shall deliver such statement to Landlord within ten (10) days after Landlord&#146;s request. Any such statement by Tenant may be given by Landlord to any prospective purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may r

ely conclusively upon such statement as true and correct.</FONT></TD>
  </TR>
  <TR>
    <TD width="3" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>&nbsp;</FONT><FONT face="arial" size=2>(b)<FONT face="arial" size=2>&nbsp;&nbsp;</FONT>If
      Tenant does not deliver such statement to Landlord within such ten (10)
      day period, Landlord, and any prospective purchaser or encumbrancer, may
      conclusively presume and rely upon the following facts: (i) that the terms
      and provisions of this Lease have not been changed except as otherwise represented
      by Landlord; (ii) that this Lease has not been cancelled or terminated except
      as otherwise represented by the Landlord; (iii) that not more than one month&#146;s
      rent or other charges have been paid in advance; and (iv) that Landlord
      is not in default under the Lease. In such event, Tenant shall be estopped
      from denying the truth of such facts.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><b><FONT face="arial" size=2>ARTICLE FIFTEEN: MISCELLANEOUS</FONT></b></TD>
  </TR>
  <TR>
    <TD width="6" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS. All exhibits, attachments, annexed instruments and addenda referred to herein shall be considered a part hereof for all purposes with the same force and effect as if copied at full length herein.</FONT></TD>
  </TR>
  <TR>
    <TD width="9" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INTERPRETATION. Words of any gender used in this Lease shall be held and construed to include any other gender, and words in the singular shall be held to include the plural, unless the context otherwise requires. In any provision relating to the conduct, acts or missions of Tenant, the term &#147;Tenant&#148; shall include Tenant&#146;s agents, employees, contractors, invitees, sucessors, permitted assigns or others using the Property with Tenant&#146;s expressed or implied permission.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CAPTIONS. The captions or headings of paragraphs in the Lease are inserted for convenience only, and shall not be considered construing the provisions hereof if any question of intent should arise.</FONT></TD>
  </TR>
  <TR>
    <TD width="12" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.04&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WAIVERS. All waivers must be in writing and signed by the waiving party. Landlord&#146;s failure to enforce any provision of this Lease its acceptance of rent shall not be a waiver and shall not prevent Landlord from enforcing that provision or any other provision of this lease in the future. No statement on a check from Tenant or in a letter accompanying a payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant, negotiate such check without being bound to the conditions of such statement.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SEVERABILITY. A determination by a court of competent jurisdiction that any provision of this Lease or any part thereof is illegal unenforceable shall not cancel or invalidate the remainder of such provision of this Lease, which shall remain in full force and effect.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.06&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JOINT AND SEVERAL LIABILITY. All parties signing this Lease as Tenants shall be jointly and severally liable for the obligations Tenant.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.07&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCORPORATION OF PRIOR AGREEMENTS; MODIFICATIONS. This lease is the only agreement between the parties pertaining to the lease of the Property and no other agreements are effect. All amendments to this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be void.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>15.08&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BINDING
      EFFECT. The terms, conditions and covenants contained in the Lease, shall
      apply to, inure to the benefit of, and be binding upon the parties hereto
      and their respective heirs, representatives, successors and permitted assigns,
      except as otherwise herein&nbsp;expressly provided. All rights, powers,
      privileges, immunities and duties of Landlord under this Lease, including
      but not limited to any&nbsp;notices required or permitted to be delivered
      by Landlord to Tenant hereunder, may, at Landlord&#146;s option, be exercised
      or performed by Landlord&#146;s agent or attorney. </FONT></TD>
  </TR>
</TABLE><br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(6)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>


<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><FONT face="arial" size=2>15.09&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTICES. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered whether actually received or not when deposited in the United States Mail, postage prepaid, registered or certified mail, return receipt requested, addressed to parties hereto at the respective addresses stated herein, or at such other address as they have theretofore specified by written notice delivered in accordance herewith. Notices to Tenant shall be delivered to the address specified on the signature page hereof, except that, upon Tenant&#146;s taking possession of the Property, the Property address shall be Tenant&#146;s address for notice purposes.</FONT></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><FONT face="arial" size=2>15.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORCE MAJEURE. In the event performance by Landlord of any term, condition or covenant in this Lease is delayed or prevented by any Act of God, strike, lockout, shortage of material or labor, restriction by any governmental authority, civil riot, flood or any other cause not within the control of Landlord, the period of performance of such term, condition or covenant shall be extended for a period equal to the period Landlord is so delayed or hindered.</FONT></TD>
  </TR>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><FONT face="arial" size=2>15.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ATTORNEYS FEES. If on account of any breach or default of any party hereto in its obligations to any other party hereto (includ&shy;ing but not limited to the Principal Realtor), it shall become necessary for the non-defaulting party to employ an attorney to enforce or defend any of its rights or remedies hereunder, the defaulting party agrees to pay the non-defaulting party its reasonable attorneys&#146; fees, whether or not suit is instituted, in connection therewith.</FONT></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><FONT face="arial" size=2>15.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TIME OF ESSENCE. Time is the essence of this Lease.</FONT></TD>
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    <TD vAlign=top>&nbsp;</TD>
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    <TD vAlign=top><FONT face="arial" size=2><B>ARTICLE SIXTEEN: SPECIAL PROVISIONS AND RIDERS.</B></FONT></TD>
  </TR>
</TABLE>
<br>
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    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>Special provisions may be set forth in the blank space and/or on a rider or riders attached hereto. If no additional provisions are to be inserted in the blank space below, please draw line through such space. If no rider or riders are to be attached hereto, please state &#147;No Riders&#148; in the blank space below. If a rider or riders are to be attached hereto, please state in the blank space below: &#147;See Rider or Riders Attached,&#148; and please have Landlord and Tenant initial all such riders.</FONT></TD>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>&nbsp;</FONT><FONT face="arial" size=2>See Rider attached for additional provisions to this Lease Agreement.</FONT></TD>
  </TR>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
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    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD width="48" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>THIS IS A LEGAL DOCUMENT, READ IT CAREFULLY. IF YOU DO NOT UNDRESTAND THE EFFECT OF ANY PART OF THIS LEASE, SEEK COMPE&shy;TENT LEGAL ADVICE. THE GREATER FORT WORTH ASSOCIATION OF REALTORS (&#147;GFWAR&#148;) HAS FURNISHED THIS FORM FOR THE CONVE&shy;NIENCE OF ITS MEMBERS. LANDLORD AND TENANT ACKNOWLEDGE THAT THEY HAVE NOT RELIED ON ANY LEGAL ADVICE FROM PRINCIPAL REALTOR, COOPERATING REALTOR, GFWAR OR GFWAR&#146;S OFFICERS, DIRECTORS, EMPLOYEES, MEMBERS, AFFILIATES OR ATTORNEYS.</FONT></TD>
  </TR>
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    <TD width="6" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
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    <TD colspan="2" vAlign=top><FONT face="arial" size=2>EXECUTED as of the date stated in Section 1.01 above.</FONT></TD>
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    <TD colspan="2" vAlign=top></TD>
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</TABLE>
<br>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
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    <TD width="30%"><FONT face="arial" size=2>LANDLORD</FONT></TD>
    <TD width="10%"><font size="2" face="arial">&nbsp;</font></TD>
    <TD width="60%"><FONT face="arial" size=2>TENANT</FONT></TD>
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    <TD><font size="1" face="arial">&nbsp;</font></TD>
    <TD><font size="1" face="arial">&nbsp;</font></TD>
    <TD><font size="1" face="arial">&nbsp;</font></TD>
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    <TD nowrap><font size="2" face="arial"><u>&nbsp;&nbsp;Region Enterprises, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
    <TD height="25" nowrap><font size="2" face="arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
    <TD nowrap><u><FONT face="arial" size=2>&nbsp;&nbsp;Esmor Fort Worth, Inc.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></u></TD>
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    <TD nowrap><font size="2" face="arial">By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Earl Region&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD height="25"><font size="2" face="arial">&nbsp;</font></TD>
    <TD nowrap><font size="2" face="arial">By: <u>/s/&nbsp;&nbsp;James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap><font size="2" face="arial">TITLE: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD height="25"><font size="2" face="arial">&nbsp;</font></TD>
    <TD nowrap><font size="2" face="arial">TITLE: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
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    <TD nowrap><font size="2" face="arial">ADDRESS <u>&nbsp;&nbsp;7200 Evergreen
      Road&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD height="25"><font size="2" face="arial">&nbsp;</font></TD>
    <TD nowrap><font size="2" face="arial">ADDRESS: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
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    <TD nowrap><u><font size="2" face="arial">Fort Worth, Texas 76118&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;</font></u></TD>
    <TD height="25"><font size="2" face="arial">&nbsp;</font></TD>
    <TD><font size="2" face="arial"><u><font size="2" face="arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</font></u><u><font size="2" face="arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></font></TD>
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    <TD height="22" nowrap><FONT face="arial" size=2>Date of execution by Landlord:
      <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5-17-94&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
    <TD height="25"><font size="2" face="arial">&nbsp;</font></TD>
    <TD nowrap><FONT face="arial" size=2>Date of execution by Tenant: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5/12/94&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
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    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(7)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>



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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.01&nbsp;&nbsp;&nbsp;<u>Rent.</u>
      Tenant agrees to pay Landlord rent in the amount of $10,200.00 for each
      of the first twenty-four (24) months during the term of this lease; rent
      in the amount of $10,404.00 for each of the next twelve months during the
      term of this Lease, rent in the amount of $10,820.15 for each of the next
      twelve months during the term of this lease and rent in the amount of $11,252.97
      for each month thereafter during the term of this Lease. Rent shall be due
      and payable on the sixteenth day of each calendar month during the term
      of this Lease commencing May 16, 1994. In addition, an amount of rent equal
      to $40,800.00 shall be paid to Landlord upon execution of this Lease, of
      which $20,400.00 shall be an additional payment to Landlord to cover any
      damages or expenses incurred by Landlord as a result of closing the motel
      and $20,400.00 shall be applied to the last two payments of rent due hereunder.</font></td>
  </tr>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.02&nbsp;&nbsp;&nbsp;<u>No Contingency</u>. &nbsp;This Lease and Tenant&#146;s&nbsp;obligations under this Lease are not contingent on Tenant obtaining any federal, state or local permits, licenses or approval or on community acceptance of Tenant&#146;s proposed use of the demised premises. Any modifications to the property which may be required by any federal, state or local authority, for the continued operation of Tenant&#146;s business, shall be made at Tenant&#146;s expense.</font></td>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.03&nbsp;&nbsp;&nbsp;<u>Renewals</u>. Provided Tenant is not in default hereunder at the expiration of the initial term or a renewal term, Tenant shall have the option to renew the term of this Lease for three (3) successive terms upon the same terms and condition, except the rent shall be increased by an amount equal to four percent (4%) per annum during each year of the renewal terms. The first renewal term shall be for three (3) years and the second and third renewal terms shall be for two (2) years each. Tenant will provide Landlord notice of its exercise of each renewal option by delivering written notice to Landlord at least thirty (30) days prior to the expiration date of this Lease as extended by any renewal term.</font></td>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.04&nbsp;&nbsp;&nbsp;<u>Alterations</u>. Landlord is aware that Tenant, at its sole cost, may fill in the swimming pool with sand, maintain a portable building in the parking lot and make certain non-structural alterations to cause the demised premises to comply with rules of the Texas Department of Criminal Justice applicable to corrections facilities and Landlord consents in advance to those alterations.</font></td>
  </tr>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.05&nbsp;&nbsp;&nbsp;<u>Personal Property and Fixtures</u>. Landlord agrees to include in the property leased to Tenant some of the personal property and fixtures located on the demised premises or used in connection with the operation of the demised premises, including without limitation, all floor, window, and wall coverings, furniture, appliances, telephones, and telephone systems, ten (10) television sets, satellite dish, towels, pillows, pillow cases and lawn mower.</font></td>
  </tr>
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    <td valign=top>&nbsp;</td>
  </tr>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.06&nbsp;&nbsp;&nbsp;<u>Storage Agreement</u>. If Tenant does not wish to lease certain of such items (i.e., beds or other items), Landlord shall remove the unwanted personal property from the demised premises and store it at a cost to Tenant of the lesser of Landlord&#146;s cost or $450.00 per month for twelve months or such lesser period as Landlord may use said space; provided that Landlord will use its best efforts to dispose of such property as soon as possible. The first monthly payment to Landlord shall be due on May 16, 1994 and like payment shall be due on the same day of each month thereafter for a period not to exceed twelve months.</font></td>
  </tr>
  <tr>
    <td valign=top>&nbsp;</td>
  </tr>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.07&nbsp;&nbsp;&nbsp;<u>Taxes to be Paid by Tenant</u>. Tenant will pay all ad valorem and personal taxes on the demised premises during the term of this Lease. Ad valorem taxes due for 1994 and the year in which the term of this Lease terminates shall be prorated between Landlord and Tenant with Tenant paying taxes for the portion of such year this Lease was in effect and Landlord paying taxes for the portion of such year prior to or after the term of this Lease.</font></td>
  </tr>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.08&nbsp;&nbsp;&nbsp;<u>Insurance</u>. &nbsp;&nbsp;During the term of this Lease, Landlord shall, at Tenant&#146;s sole cost and expense, provide and maintain or cause to be provided and maintained insurance on the improvements on the Premises. The insurance shall include protection against all hazards and perils covered by the all-risk form of insurance policy in effect in Texas, and shall be in amounts equal to the full replacement value of the improvements, and list Landlord as the loss payee. Tenant shall pay to Landlord the annual premium for such insurance within thirty (30) days after receipt of the premium notice from Landlord.</font></td>
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    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.09&nbsp;&nbsp;&nbsp;<u>Sign</u>. Tenant shall, during the term of this Lease, leave the existing motel sign in its current location, however, Tenant may remove the neon and paint the face of the sign. If at any time during the term of this Lease, the City of Fort Worth requires that the sign be removed, it will be done at Tenant&#146;s expense.</font></td>
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    <td valign=top>&nbsp;</td>
  </tr>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2>16.10&nbsp;&nbsp;&nbsp;<u>Additional Tenant Maintenance</u>. During the term hereof, Tenant will maintain the parking lot, including, but not limited to, eradication of any weeds or grass growing on the parking lot. Tenant shall also mow the alley-way and keep the trees trimmed away from the premises. Tenant shall also maintain a regular termite eradication and pest control service for the premises.</font></td>
  </tr>
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    <td valign=top>&nbsp;</td>
  </tr>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2><u></u></font><font face="arial" size=2>16.11<font face="arial" size=2>&nbsp;&nbsp;&nbsp;</font><u>Guarantee</u>. Tenant&#146;s&nbsp;obligations&nbsp;hereunder&nbsp;shall&nbsp;be&nbsp;fully&nbsp;guaranteed&nbsp;by&nbsp;Esmor Correctional Services, Inc., a Delaware corporation.</font></td>
  </tr>
  <tr>
    <td valign=top>&nbsp;</td>
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    <td valign=top><font face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="arial" size=2><u></u></font><font face="arial" size=2>&nbsp;</font><font face="arial" size=2>16.12<font face="arial" size=2>&nbsp;&nbsp;&nbsp;</font><u>Miscellaneous</u>, (a) Landlord shall retain possession of the motel office space until the end of business on May 20, 1994. (b) Tenant acknowledges that Landlord has personal property stored in the basement of the premises. Landlord shall have reasonable access to the basement until all personal property is removed. Landlord will use its best efforts to remove its personal property from the basement by June 1, 1994.</font></td>
  </tr>
</table><br>

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    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(8)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
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<P style="PAGE-BREAK-BEFORE: always"><PAGE></P>
<P align=center><FONT face="arial" size=2><strong>GUARANTY&nbsp;OF LEASE &nbsp;AGREEMENT</strong></FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>For valuable consideration, the undersigned (&#147;Guarantor&#148;) for itself, its successors and assigns, hereby unconditionally guarantees to Region Enterprises, Inc. (&#147;Landlord&#148;), it successors and assigns, the due performance of all obligations of Esmor Fort Worth, Inc., a Texas corporation (&#147;Tenant&#148;) to Landlord in connection with that certain Lease Agreement dated May 16, 1994, between Landlord and Tenant, covering the property known as the Downtown Motor Inn, 600 North Houston Street, Fort Worth, Texas.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>This guaranty will become effective upon the default by Tenant of any of the terms and conditions set forth in the Lease Agreement. Guarantor agrees to immediately cure any such default, upon receipt of written notice from Landlord stating the nature of the default and the amount due to cure the default.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>Guarantor waives any right to require Landlord to (a) proceed against Tenant; or (b) pursue any other remedy in Landlord&#146;s power whatsoever. Guarantor waives any defense arising by reason of the cessation from any cause whatsoever of the liability of Tenant. Guarantor hereby indemnifies Landlord against loss, cost or expense, by reason of the assertion by the Tenant of any defense to its obligations under any of the aforesaid Lease Agreement, or resulting from the attempted assertion by the Guarantor of any defense hereunder based upon any such action or inaction of the Tenant. Guarantor waives any right or claim of right to cause a marshalling of the Borrower&#146;s assets or to require the Landlord to proceed against the Guarantor in any particular order. No delay on the part of the Landlord
in the exercise of any right, power or privilege under the documentation with the Tenant or under this guaranty shall operate as a waiver of any such privilege, power or right.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>Guarantor agrees to pay a reasonable attorney&#146;s fee and all other costs and expenses which may be incurred by Landlord in the enforcement of the Tenant&#146;s obligation and/or of this guaranty.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>Notwithstanding any provision herein or in the instrument now or hereafter covering said indebtedness, the total liability for payments in the nature of interest shall not exceed the limits now imposed by the usury laws of the state of applicable jurisdiction governing the provisions of this guaranty or in any instrument now or hereafter covering said indebtedness.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>The Guarantor acknowledges that the Landlord has been induced by this guaranty to enter into the Lease Agreement with Tenant, and this agreement shall, without further reference or assignment, be relied upon and enforced by, any successor or participant or assignee of the Landlord in and to any liabilities or obligations of the Tenant.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>This guaranty shall, for all purposes, be governed by and construed in accordance with the laws of the State of Texas, and is performable and enforceable at Fort Worth, Tarrant County, Texas.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="arial" size=2>IN WITNESS WHEREOF, the undersigned Guarantor has hereunto set his hand this 12 day of May, 1994.</FONT></TD>
  </TR>
</TABLE>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=50%>&nbsp;</TD>
    <TD vAlign=top><FONT face="arial" size=2>ESMOR CORRECTIONAL SERVICES, INC., <br>
      a Delaware corporation</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=50%>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="arial">By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ James F. Slattery, &nbsp;As&nbsp;President</u></font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=50%>&nbsp;</TD>
    <TD vAlign=top><FONT face="arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James F. Slattery, President </FONT></TD>
  </TR>
</TABLE><br>

<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="7%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td align="center"><FONT face="Arial, Helvetica, sans-serif" size=2>(9)</FONT></td>
    <td width="7%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">1/93</font></td>
  </tr>
</table>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>19
<FILENAME>ex10-92.htm
<DESCRIPTION>EXHIBIT 10.92
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<P align=right><FONT size=2><b>Exhibit 10.92</b></FONT></P>
<P align=center>&nbsp;</P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR align="center">
    <TD colspan="3" vAlign=top><img src="csc.jpg" width="180" height="84"></TD>
  </TR>
  <TR align="center">
    <TD colspan="3" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center">
    <TD colspan="3" vAlign=top><b><FONT face="Times New Roman, Times, serif" size=2>CORRECTIONAL SERVICES CORPORATION</FONT></b></TD>
  </TR>
  <TR>
    <TD colspan="3" align="left" vAlign=top><hr size="1" color=black></TD>
  </TR>
  <TR>
    <TD width=35% align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>1819 Main Street&nbsp;</FONT></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width="35%" align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Phone (941) 953-9199</FONT></TD>
  </TR>
  <TR>
    <TD align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Suite 1000</FONT></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>1-800-275-3766</FONT></TD>
  </TR>
  <TR>
    <TD align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Sarasota, Florida 34236</FONT></TD>
    <TD align="center" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>December 14,&nbsp;1999</FONT></TD>
    <TD align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;Fax (941) 953-9198</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=7% vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>VIA HAND DELIVERY</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Region Enterprises, Inc. </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>7200 Evergreen Road</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Fort Worth, Texas 76118</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Attention: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Ronnie Region</FONT></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><U>LEASE EXTENSION AGREEMENT</U></FONT></td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=7% vAlign=top>&nbsp;</TD>
    <TD width="6%" align="right" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Re:</FONT></TD>
    <TD width="3%" align="center" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Lease Agreement dated May 16, 1994 by and between Region Enterprises, Inc. and Esmor Fort Worth, Inc. (now known as Correctional Services Corporation) for 600 North Henderson Street Fort Worth, Texas</U></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>

<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=7% vAlign=top>&nbsp;</TD>
    <TD colspan="4" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Ladies and Gentlemen:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="4" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="4" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The purpose of this letter is to confirm the agreement between Correctional Services Corporation (&#147;Tenant&#148;) and Region Enterprises, Inc. (&#147;Landlord&#148;) concerning the extension of the term of the above-referenced Lease Agreement (a copy of which is attached to this letter as Exhibit A). This letter agreement, when executed by Tenant and Landlord, shall serve as an addendum to the Lease Agreement and become part thereof.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="7%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>1. </FONT></TD>
    <TD colspan="3" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Term</U>.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD width="1%" vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The term of the Lease Agreement has been extended, effective as of 12:01 a.m on April 16, 1999, for an additional period of ten (10) years to expire at midnight on April 15, 2009 (the &#147;Extension Term&#148;); provided, however, that Tenant shall have the right to terminate the Lease Agreement at any time, with or without cause, by delivering to Landlord at least 12 months advance written notice of its intention to terminate the Lease Agreement, which notice shall set forth the effective date of the termination of the Lease Agreement.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
    <TD colspan="3" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Rent</U><FONT face="Times New Roman, Times, Serif" size=2>.</FONT></FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>During the first 24 months of the Extension Term (i.e., until April 16, 2001), Tenant shall continue to pay to Landord rent in the amount of $11,252.97 per month.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Effective as of April 16, 2001, and then again on April 16<SUP>th</SUP> each year during the remainder of the Extension Term (each such date being referred to herein as an &#147;Anniversary Date&#148;), the monthy rent to be paid by Tenant to Landlord during the immediately succeeding year shall be adjusted by an amount corresponding to the percentage increase, if any, in the Consumer Price Index (U.S. Cities Average), as</FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR align="center">
    <TD colspan="5" vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="5" vAlign=top><em><FONT face="Arial, Helvetica, sans-serif" size=2>An Equal Opportunity Employer</FONT></em></TD>
  </TR>
  <TR align="center">
    <TD width="7%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="1%" vAlign=top>&nbsp;</TD>
    <TD width="4%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="5" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>www.correctionalservices.com</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Region Enterprises, Inc.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> December 9, 1999 </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Page 2</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><hr size="1" color=black></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=7% vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="1%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> published by the United States Department of Labor, during the period which began on April 16<SUP>th</SUP> of the previous year and ends on the applicable Anniversary Date; provided, however, that in no event shall the monthly rent be increased on any Anniversary Date by an amount greater than 5% of the monthly rent in effect on the applicable Anniversary Date. For purposes of making each such adjustment, the CPI figures to be used by the parties shall be the CPI most recently published by the United States Department of Labor prior to each relevant date. If there shall be no increase in the CPI or a decrease in the CPI during the applicable period, then the monthly rent payable by Tenant shall remain at the level in effect on the Anniversary Date.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>c)</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Other Terms and Conditions</U>.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Sections 16.01 and 16.03 of the Lease Agreement have been superceded by the terms hereof and are hereby deleted from the Lease Agreement in their entirety. Each of the other terms, conditions and provisions of the Lease Agreement shall remain in effect as set forth in the Lease Agreement during the Extension Term, and, by signing this letter agreement, each of the parties ratifies and confirms each such term, condition and provision.</FONT></TD>
  </TR>
  <TR>
    <TD colspan="5" vAlign=top></TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>If the foregoing accurately reflects our agreement, kindly sign and return to me the enclosed copy of this letter in order to confirm the agreement of Region Enterprises to these terms. Please retain the original copy of this letter for your files.</FONT></td>
  </tr>
</table>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Yours truly,</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">/s/
      James F. Slattery</font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">James F. Slattery<br>
      President and Chief Executive Officer </font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></FONT></TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>CONFIRMED AND AGREED TO </FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>On behalf of Region Enterprises, Inc.</FONT></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="2%" vAlign=top><font size="2" face="Times New Roman, Times, serif">By: </font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
      Earl Region&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">Name: <u>Earl
      Region&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">Title:
      <u>President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">Dated:  12/14, 1999 </font></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>21
<FILENAME>ex10-93.htm
<DESCRIPTION>EXHIBIT 10.93
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>
<P align=right><FONT face="Arial" size=2><b>Exhibit 10.93</b></FONT></P>
<P align=center>&nbsp;</P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR align="center">
  <TD colspan="3" vAlign=top><img src="csc.jpg" width="180" height="84"></TD>
</TR>
<TR align="center">
  <TD colspan="3" vAlign=top>&nbsp;</TD>
</TR>
<TR align="center">
  <TD colspan="3" vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>CORRECTIONAL SERVICES CORPORATION</FONT></b></TD>
</TR>
<TR>
  <TD colspan="3" align="left" vAlign=top><hr size="1" color=black></TD>
  </TR>
<TR>
  <TD width=35% align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>1819 Main Street&nbsp;</FONT></TD>
  <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD width="35%" align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Phone (941) 953-9199</FONT></TD>
</TR>
<TR>
  <TD align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Suite 1000</FONT></TD>
  <TD align="center" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>1-800-275-3766</FONT></TD>
</TR>
<TR>
  <TD align="left" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>Sarasota, Florida 34236</FONT></TD>
  <TD align="center" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>December 15,&nbsp;1999</FONT></TD>
  <TD align="right" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>&nbsp;Fax (941) 953-9198</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD align="center" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=7% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>VIA HAND DELIVERY</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Region Enterprises, Inc. </FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>7200 Evergreen Road</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Fort Worth, Texas 76118</FONT></TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="7%" vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Attention: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ronnie Region</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="2" vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr align="center">
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>LEASE EXTENSION AGREEMENT</U></FONT></td>
  </tr>
</table>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
<TR>
  <TD width="7%" vAlign=top>&nbsp;</TD>
  <TD width="9%" vAlign=top><h5>&nbsp;</h5></TD>
  <TD width="3%" vAlign=top>&nbsp;</TD>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
<TD width="9%" align="right" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Re:&nbsp;&nbsp; </FONT></TD>
<TD align="right" vAlign=top>&nbsp;</TD>
<TD vAlign=top><div align="left"><FONT face="Times New Roman, Times, Serif" size=2><U>Lease Agreement dated May 16, 1994 by and between Region Enterprises, Inc. and Esmor Fort Worth, Inc. (now known as Correctional Services Corporation) for 600 North Henderson
    Street, Fort Worth, Texas</U></FONT></div></TD>
<TD width="10%" vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
<TD width="9%" vAlign=top></TD>
<TD vAlign=top></TD>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=7% vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Ladies and Gentlemen:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The purpose of this letter is to confirm the agreement between Correctional Services Corporation (&#147;Tenant&#148;)

and Region Enterprises, Inc. (&#147;Landlord&#148;) concerning the extension of the term of the
above-referenced
Lease Agreement (a copy of which is attached to this letter as Exhibit A). This
letter agreement,
when executed by Tenant and Landlord, shall serve as an addendum to the Lease
Agreement and become
part thereof.</FONT></TD>
</TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="7%" vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="7%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>1. </FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Term</U>.</FONT></TD>
  </TR>
  <TR>
    <TD width="7%" vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
<TD width=7% vAlign=top>&nbsp;</TD>
<TD width="5%" vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The term of the Lease Agreement has been extended, effective as of 12:01 a.m on April 16, 1999, for an additional period of ten (10) years to expire at midnight on April 15, 2009 (the &#147;Extension Term&#148;); provided, however, that Tenant shall have the right to terminate the Lease Agreement at any time, with or without cause, by delivering to Landlord at least 12 months advance written notice of its intention to terminate the Lease Agreement, which notice shall set forth the effective date of the termination of the Lease Agreement.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=7% vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
    <TD colspan="3" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Rent</U>.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width="3%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>a)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD width="88%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>During the first 24 months of the Extension Term (i.e., until April 16, 2001), Tenant shall continue to pay to Landord rent in the amount of $11,252.97 per month.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>b)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The monthly rent to be paid by Tenant to Landlord during the period of April 16, 2001 through April 15, 2002 shall be determined by adding to such amount the greater of 2% thereof or&nbsp;the percentage increase, if any, in the Consumer Price Index (U.S. Cities Average), as published by the United States Department of Labor, during the period which began on April 16<SUP>th</SUP> of the previous year and ends on April 16, 2001;</FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="5" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2><I>An Equal Opportunity Employer</I></FONT></TD>
  </TR>
  <TR align="center">
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top>&nbsp;</TD>
  </TR>
  <TR align="center">
    <TD colspan="5" vAlign=top><FONT face="Arial, Helvetica, sans-serif" size=2>www.correctionalservices.com</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, serif" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Region Enterprises, Inc.</FONT></TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> December 15, 1999 </FONT></TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Page 2</FONT></TD>
</TR>
<TR>
  <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
</TR>
<TR>
<TD vAlign=top><hr size="1" color=black></TD>
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  <TD vAlign=top></TD>
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  <TD vAlign=top></TD>
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  <TD vAlign=top></TD>
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  <TD vAlign=top></TD>
</TR>
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  <TD vAlign=top></TD>
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  <TD vAlign=top></TD>
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</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="7%" vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> provided, however, that in no event shall the monthly rent be increased by an amount greater than 5%.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width="3%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>c)</FONT></TD>
    <TD width="88%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>Effective as of April 16, 2002, and then again on every April 16<SUP>th</SUP> thereafter through the remainder of the term of the Lease Agreement (each such date being referred to hereinafter as an &#147;Anniversary Date&#148;), the monthly rent to be paid by Tenant during the immediately succeeding year shall be adjusted by adding to the monthly rent in effect during the immediately preceding year an amount equal to the percentage increase, if any, in the Consumer Price Index (U.S. Cities Average), as published by the United States Department of Labor, during the period which began on April 16<SUP>th </SUP>of the previous year and ends on the applicable Anniversary Date; provided, however, that in no event shall the monthly rent be increased by an amount greater than 5%.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD width="3%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>d)<FONT face="Times New Roman, Times, Serif" size=2></FONT></FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2></FONT>For purposes of making each such adjustment, the CPI figures to be used by the parties shall be the CPI most recently published by the United States Department of Labor prior to each relevant date. If there shall be no increase in the CPI or a decrease in the CPI during the applicable period, then the monthly rent payable by Tenant shall remain at the level in effect on the Anniversary Date.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top><font size="2" face="Times New Roman, Times, serif">e)</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>Other Terms and Conditions</U>.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Sections 16.0l and 16.03 of the Lease Agreement have been superceded by the terms hereof and are hereby deleted from the Lease Agreement in their entirety. Each of the other terms, conditions and provisions of the Lease Agreement shall remain in effect as set forth in the Lease Agreement during the Extension Term, and, by signing this letter agreement, each of the parties ratifies and confirms each such term, condition and provision.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD width="2%" vAlign=top>&nbsp;</TD>
    <TD width="3%" vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width="18" colspan="5" vAlign=top></TD>
  </TR>
  <TR>
    <TD colspan="5" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>If the foregoing accurately reflects our agreement, kindly sign and return to me the enclosed copy of this letter in order to confirm the agreement of Region Enterprises to these terms. Please retain the original copy of this letter for your files.</FONT></TD>
  </TR>
</TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">

<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Yours truly,</FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top>/s/ <font size="2" face="Times New Roman, Times, serif">James F. Slattery</font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">James F. Slattery<br>
  President and Chief Executive Officer </font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></FONT></TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>CONFIRMED AND AGREED TO </FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>On behalf of Region Enterprises, Inc.</FONT></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD width="2%" vAlign=top><font size="2" face="Times New Roman, Times, serif">By: </font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif"> &nbsp;<u>/s/ Earl Region&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">Name: <u>EARL REGION&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">Title:&nbsp;&nbsp; <u>President&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">Dated: December 22, 1999 </font></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<P align=left>&nbsp;</P>
<HR color=#000000 noShade>


</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>22
<FILENAME>ex10-94.htm
<DESCRIPTION>EXHIBIT 10.94
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
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<BODY>

<P align=right><FONT size=2><b>Exhibit 10.94</b></FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center">&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><p><FONT face="Times New Roman, Times, Serif" size=2><B>USE
        AGREEMENT</B></FONT></p>
      <p>&nbsp;</p>
      <p><FONT face="Times New Roman, Times, Serif" size=2><B><br>
        <br>
        between<br>
        </B></FONT></p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p><FONT face="Times New Roman, Times, Serif" size=2><B>CSC of Tacoma LLC,
        </B><B><br>
        as Owner</B></FONT></p>
      <p>&nbsp;</p>
      <p><FONT face="Times New Roman, Times, Serif" size=2><B> and </B></FONT></p>
      <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p><FONT face="Times New Roman, Times, Serif" size=2><B>Correctional Services
        Corporation, </B><B><br>
        as Operator<br>
        </B></FONT></p>
      <p>&nbsp;</p>
      <p><FONT face="Times New Roman, Times, Serif" size=2><br>
        <br>
        Dated as of June 30, 2003 </FONT></p></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR align="center">
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> TABLE OF CONTENTS</FONT></TD>
</TR>
<TR>
<TD width="240" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">Page</font></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="right" vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD width="6%" height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">1.</font></TD>
    <TD height="20" vAlign=top><a href="#common"><font size="2" face="Times New Roman, Times, serif">Common
      understandings</font></a></TD>
    <TD width="6%" height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 2</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">2.</font></TD>
    <TD height="20" vAlign=top><a href="#utilization"><font size="2" face="Times New Roman, Times, serif">Utilization;
      Management Services</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 4</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">3.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#term">Term</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 5</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">4.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#personnel">Personnel</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 5</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">5.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#approvals">Approvals</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 6</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">6.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#accreditation">Accreditation</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 6</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">7.</font></TD>
    <TD height="20" vAlign=top><a href="#equipment"><font size="2" face="Times New Roman, Times, serif">Equipment
      and Supplies</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 6</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">8.</font></TD>
    <TD height="20" vAlign=top><a href="#financial"><font size="2" face="Times New Roman, Times, serif">Financial
      Matters; Payment of User Fee</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">7</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">9.</font></TD>
    <TD height="20" vAlign=top><a href="#operating"><font size="2" face="Times New Roman, Times, serif">Operating
      Reserve Fund</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">8</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">10.</font></TD>
    <TD height="20" vAlign=top><a href="#intellectual"><font size="2" face="Times New Roman, Times, serif">Intellectual
      Property</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">8</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">11.</font></TD>
    <TD height="20" vAlign=top><a href="#insurance"><font size="2" face="Times New Roman, Times, serif">Insurance</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">8</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">12.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#cooperation">Cooperation</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">9</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">13.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#records">Records</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">9</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">14.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#confidentiality">Confidentiality</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 10</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">15.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#grievances">Grievances</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 10</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">16.</font></TD>
    <TD height="20" vAlign=top><a href="#representations1"><font size="2" face="Times New Roman, Times, serif">Representations
      and Warranties of Operator</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 10</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">17.</font></TD>
    <TD height="20" vAlign=top><a href="#representations2"><font size="2" face="Times New Roman, Times, serif">Representations
      and Warranties of Owner</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 10</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">18.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#indemnification">Indemnification</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">11</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">19.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#waiver1">Waiver
      of Jury Trial</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 12</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">20.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#events">Events
      of Default and Remedies</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 12</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">21.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#effect">Effect
      of Termination</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">15</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">22.</font></TD>
    <TD height="20" vAlign=top><a href="#replacement"><font size="2" face="Times New Roman, Times, serif">Replacement
      Operator; Successor User</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 15</font></TD>
  </TR>
  <TR>
    <TD height="40" vAlign=top><font size="2" face="Times New Roman, Times, serif">23.</font></TD>
    <TD height="20" vAlign=top><a href="#damage"><font size="2" face="Times New Roman, Times, serif">Damage, Destruction or Loss of Property; Obligation to Rebuild; Use of <br>
      Insurance Proceeds and Condemnation Awards</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 16</font></TD>
  </TR>
  <TR>
    <TD height="30" vAlign=top><font size="2" face="Times New Roman, Times, serif">24.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#amendment">Amendment</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">16</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">25.</font></TD>
    <TD height="20" vAlign=top><a href="#force"><font size="2" face="Times New Roman, Times, serif">Force
      Majeure</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">16</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">26.</font></TD>
    <TD height="20" vAlign=top><a href="#relationship"><font size="2" face="Times New Roman, Times, serif">Relationship
      of the Parties</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">16</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">27.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#governing">Governing
      Law</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 17</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">28.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#entire">Entire
      Agreement</a></font></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 17</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">29.</font></TD>
    <TD height="20" vAlign=top><a href="#notices"><font size="2" face="Times New Roman, Times, serif">Notices</font></a></TD>
    <TD height="20" align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">17</font></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>-i-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE width="100%" border="0" cellPadding="0" cellSpacing="0">
  <TR>
    <TD width=6% height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">30.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#counterparts">Counterparts</a></font></TD>
    <TD width=6% align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 18</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">31.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#invalidity">Invalidity</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">18</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">32.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#assignment">Assignment</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 18</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">33.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#waiver2">Waiver</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">18</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">34.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#survival">Survival</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">18</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">35.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#further">Further
      Assurances</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif"> 19</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">36.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#litigation">Litigation</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">19</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">37.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#third">Third
      Party Rights</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">19</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">38.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#nonrecourse">Nonrecourse
      Obligation</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">19</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">39.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#disclaimer">Disclaimer
      Regarding the Condition of the Property</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">20</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">40.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#miscellaneous">Miscellaneous</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">20</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">41.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#partial">Partial
      Consent Decree</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">21</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">42.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#rate">Rate
      Covenant</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">21</font></TD>
  </TR>
  <TR>
    <TD height="25" vAlign=top><font size="2" face="Times New Roman, Times, serif">43.</font></TD>
    <TD height="20" vAlign=top><font size="2" face="Times New Roman, Times, serif"><a href="#continuing">Continuing
      Disclosure</a></font></TD>
    <TD align="right" vAlign=top><font size="2" face="Times New Roman, Times, serif">21</font></TD>
  </TR>
</TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>-ii-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B>USE AGREEMENT</B></FONT></P><br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>THIS AGREEMENT, was duly executed as of the 30<SUP>th</SUP> day of June, 2003, between CSC of Tacoma LLC (the &#147;Owner&#148;), a Delaware limited liability
company, the sole member of which is Correctional Services Corporation (&#147;Operator&#148;), a
Delaware corporation, and Operator.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Owner is proceeding with the construction of and will own the detention facility to be
located in Tacoma, Washington (the &#147;Detention Facility&#148;) and designed to house up to 500
detainee aliens (expandable to 800) for the Bureau of Immigration and Customs Enforcement within
the Department of Homeland Security (whose duties, powers, functions and responsibilities with respect
to detainee aliens were formerly lodged in and exercised by the former United States Immigration
and Naturalization Service) (the &#147;INS&#148;); and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Owner is financing the design, construction and development of the Detention Facility with
the proceeds of the loan being made to the Owner by Washington Economic Development Finance Authority
(the &#147;Issuer&#148;), pursuant to the Loan Agreement dated as of June 1, 2003, between the Issuer
and the Owner (the &#147;Loan Agreement&#148;) of the proceeds of the Issuer&#146;s Taxable Economic
Development Revenue Bonds (CSC of Tacoma LLC Detention Facility Project), Series 2003 (the &#147;Bonds&#148;)
to be issued pursuant to that certain Indenture of Trust between the Issuer and U.S. Bank National
Association, as Trustee, dated as of June 1, 2003 (the &#147;Indenture&#148;) in order to provide
financing for, among other things, the construction by the Owner of the Detention Facility; and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, payment when due of scheduled principal and interest on the Bonds is insured by MBIA Insurance
Corporation (the &#147;Insurer&#148;); and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, under the Loan Agreement Owner is obligated to repay the loan from the Issuer by paying to
the Trustee, for deposit under the Indenture, Loan Repayments and Additional Payments, as those terms
are defined in the Loan Agreement and is obligated to pay the Insurer any and all Reimbursement Obligations;
and</FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Operator has entered into Contract No. ACL-2-C-0004 (Requisition Purchase Reg. DET-99-251),
dated as of July 26, 2002 as modified by Amendment/Modification No. A001 dated as of September 27,
2002, and Amendment/Modification No. A002 executed by the Operator on March 6, 2003, and by the INS
on March 17, 2003 (the &#147;INS Contract&#148;) with the INS for the construction, operation and
management of the Detention Facility to provide temporary housing, safekeeping, transportation and
temporary guard services for INS detainees; and</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Owner desires to construct the Detention Facility and allow Operator to utilize the Detention
Facility in providing the services required under the INS Contract and any other Agency Contract;
and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS,
      this Agreement is intended to create a landlord-tenant relationship between
      the Owner as landlord and Operator as tenant under Washington law; and</FONT></TD>
  </TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, in consideration for the exclusive right to utilize the Detention Facility during the term
hereof and to induce Owner to undertake the financing and construction of the Detention Facility,
Operator will irrevocably pledge and assign all revenues derived from the Detention Facility to the
Trustee for the benefit of the Owner; and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, Operator is in the business of managing detention and correctional facilities and desires
to use and operate the Detention Facility and provide management services with respect thereto in
providing the services required of it pursuant to the INS Contract and pursuant to any subsequence
Agency Contract (as defined in the Indenture); and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Owner regards Operator&#146;s expertise and experience to be critical to the successful
operation of the Detention Facility in the manner contemplated by the INS Contract, and the Owner
desires for Operator to utilize the Detention Facility in furtherance of the INS Contract; and</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>WHEREAS, the Operator shall have the ultimate responsibility for the operation and management of the
Detention Facility, and shall be responsible for all interaction with INS and any other agency utilizing
the Detention Facility in matters relating to performance under the INS Contract and any Agency Contract
(collectively, the &#147;Contract&#148;).</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, and
in consideration of the mutual covenants contained herein,</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>IT IS AGREED AS FOLLOWS: </FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><a name="common"></a></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><b>1.</b><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B></B><b>Common understandings.</b></FONT></TD>
</TR>
</TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator and the Owner both acknowledge and agree to the following as of the date of this Agreement:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This Agreement and the rights and obligations of the parties hereunder
    shall be subject to the terms, provisions and conditions of the Contract so long as the
    Contract is in effect. In the event of a conflict between the terms of the Contract and the
    terms hereof, the terms of the Contract will prevail.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Detention Facility will be operated by the Operator in accordance
    with the requirements of the Contract and all applicable permits, and Operator shall
    maintain in full force and effect any licenses, certifications or permits required for the
    operation of the Detention Facility in accordance with the INS Contract&nbsp;or any other
    Agency Contract requirements.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Operator shall have the authority and responsibility to make
    contracts and leases for the procurement of services, equipment and supplies necessary
    for operation of the Detention Facility, subject to any limitations set forth in the INS
    Contract or any other Agency Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Operator needs to have considerable discretion in the exercise of its
    responsibilities under this Agreement in order to operate and manage the Detention</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-2-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=45 rowspan="2" vAlign=top>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Facility. Subject to the limitations expressly set forth in this Agreement or applicable by law, therefore,
Operator shall be entitled to fulfill its obligations hereunder in the manner that it determines
is appropriate or necessary within the policies established by INS and in a manner consistent with
the INS Contract or by any subsequent governmental agency in a manner consistent with any Agency
Contract.</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=45>&nbsp;</TD>
    <TD vAlign=top><P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The Operator shall be solely responsible for the establishment of, and
      shall establish, policy and procedures for the Detention Facility in a manner consistent
      with the policies of INS or any other agency utilizing the Detention Facility and
      consistent with the terms of the INS Contract or any other Agency Contract.</FONT></P>
    </TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=45>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In consideration of Owner&#146;s making the Detention Facility available to
Operator pursuant to this Agreement, Operator shall pay Owner a user fee, in advance, on
the first day of each month throughout the term of this Agreement (the &#147;User Fee&#148;) with
such monthly installments commencing on the first day of the month immediately
following the date on which the Trustee receives the first payment from the INS pursuant
to the INS Contract and the Assignment of Claims and continuing on the first day of each
month thereafter. For the initial period through September 30, 2005, the User Fee shall
be in the amount of $6,483,560 per annum, payable in monthly installments of
$540,296.67 each. On each October 1, commencing October 1, 2005, the User Fee shall
be increased by an amount equal to two percent (2%) of the User Fee in effect for the
prior year. The Operator shall promptly provide written notice to the Trustee of each
adjustment in the amount of the User Fee. The User Fee shall be payable without
deduction, demand or setoff. Interest at the lesser of eighteen percent (18%) per annum
or the maximum rate permitted by law shall accrue on any amount of the User Fee which
is not paid within ten days after the date due and shall be payable on demand. If any
amount of the User Fee is not paid within ten (10) days after the date due, then Operator
shall also pay Owner a late fee equal to five percent (5%) of the amount due, payable on
demand.</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=45>&nbsp;</TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To secure the payment and performance of all of its obligations under
      this Agreement and in consideration of Owner&#146;s construction of the Detention Facility
      and making it available to Operator under this Agreement, Operator hereby assigns,
      pledges as collateral and grants a security interest to the Owner and the Trustee in (1) any
      and all amounts now or hereafter due to Operator or its successors or assigns under the
      INS Contract and any and all amounts now or hereafter due pursuant to any extensions,
      modifications, renewals or substitutions for that contract, (2) any Agency Contract of
      other contract or agreement hereafter entered into by Operator for the housing of
      prisoners or detainees at the Detention Facility and any extensions, modifications,
      renewals or substitutions of such contracts or agreements, and (3) all amounts on deposit
      from time to time in the funds and accounts established under the Indenture (collectively,
      the &#147;Collateral&#148;). In the event of any default hereunder, Owner and Trustee shall have, in
      addition to any other rights permitted by law, all of the rights of a secured party under the
      Washington State Uniform Commercial Code to the extent applicable hereto. Operator
      authorizes Owner and Trustee to file any financing statements or further assurances as
    may be required in order to perfect the security interest granted under this section. </FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-3-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(h)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Capitalized terms used herein without further
definition shall have the meanings assigned to such terms in the Indenture.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45><a name="utilization"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>2.</B><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>Utilization; Management Services.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator will utilize, manage and operate the Detention Facility subject to the terms of this Agreement
and in a manner consistent with the INS Contract requirements or with the requirements of any Agency
Contract. Operator shall at all times and at its sole cost and expense maintain, preserve and keep
the Detention Facility in good repair, working order and condition. Operator shall provide or ensure
the provision of the following services in connection with the Detention Facility and its operations:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top width=50>&nbsp;</TD>
    <TD vAlign=top width=40><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width="20" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Business administration, including budgeting, financial and other recordkeeping, audits, and regulatory </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>compliance;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(b)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Acquisition of instructional materials, equipment, and supplies; </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>(c)</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif" size=2>All maintenance (including cleaning services), repair, replacement and renewal of Detention Facility capital </font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="3" vAlign=top><font face="Times New Roman, Times, serif" size=2>improvements, structures, furniture, fixtures, facilities and equipment, including, but not limited to, developing and implementing a preventive and routine maintenance plan and the keeping of adequate maintenance records;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT><FONT face="Times New Roman, Times, serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(d)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Management of Detention Facility affairs, including implementation of policies affecting prisoner welfare </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=top><font size="2" face="Times New Roman, Times, serif">and
      safety, and visitor relations;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(e)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Food service required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(f)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Transportation services required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(g)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Guard services required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(h)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Staff training required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(i)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Recreation and other program services required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(j)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Other special prisoner services required by the INS Contract or any other Agency Contract;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(k)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Payment of all utilities, insurance, real estate and other taxes, and assessments on the Detention Facility and </FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD colspan="3" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>equipment and providing evidence to Owner of payment of same;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(1)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Conduct of grievance procedures and due process hearings required by law; and</FONT></TD>
  </TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-4-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD width="50" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width="40" vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD width="20" vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(m)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2> Timely provide, with respect to the Operator, the information and the services required by Sections 5.5 </FONT></TD>
  </TR>
  <TR>
    <TD colspan="4" vAlign=top><font size="2" face="Times New Roman, Times, serif">and 5.6 of the Loan Agreement; and</font></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(n)</FONT></TD>
    <TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2> All other services required in the INS Contract or any other Agency Contract.</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width=48 colspan="2" vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><a name="term"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>3.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Term.</B></FONT></TD>
</TR>
<TR>
<TD width="45" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Owner shall make the Detention Facility available exclusively to Operator effective upon the date
of completion of the Detention Facility in accordance with the terms of the Design and Development
Agreement dated as of June 1, 2003, between Owner and Operator (the &#147;Development Agreement&#148;),
and continuously thereafter for twenty (20) years after such date or until the earlier termination
of this Agreement in accordance with the provisions of paragraph 20 hereof (that entire period being
referred to herein as the &#147;term&#148;). The term of this Agreement shall be renewed for additional
terms beyond the initial term if and to the extent that INS elects to renew and extend the INS Contract
beyond the initial term or if the term of an Agency Contract is extended for additional periods of
time, co-terminus with any such extension.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The
      Operator agrees, no later than the fourth (4<SUP>th</SUP>) anniversary of
      the date of completion of the Detention Facility in accordance with the
      terms of the Development Agreement, to use commercially reasonable efforts
      to request from the INS and pursue in good faith, renewal or extension of
      the INS Contract for an additional term beyond the initial term. No later
      than each anniversary of the commencement of the term of this Agreement,
      the Operator will submit a written strategy to the Insurer as to the means
      by which it will seek to obtain an extension of the INS Contract on terms
      no less favorable to Operator than the current INS Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="45" vAlign=top><a name="personnel"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>4.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personnel.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Except as otherwise required by law, all personnel engaged to operate the Detention Facility shall
be employed or otherwise contracted for by Operator. Such personnel shall include, without limitation,
guards, guards&#146; aides, administrators, and facilities maintenance staff. Operator shall pay
all personnel costs, including but not limited to compensation, employment taxes, worker&#146;s compensation
and employee benefits, for employees employed by Operator at the Detention Facility. Personnel employed
by Operator at the Detention Facility who are issued firearms shall be trained in accordance with
the standards of INS and/or other applicable agencies and must comply with applicable laws, rules,
and regulations of INS, other applicable agencies and the State of Washington. Each employee shall
be recruited and hired by the Operator in accordance with the requirements set forth in the INS Contract
and any other Agency Contract and in accordance with all applicable federal and state law. Subject
to any limitations imposed by the INS Contract or by applicable law, Operator shall make all decisions
regarding hiring, compensation, termination of employment, assignments, and discipline of such personnel
in its sole discretion. The Operator will make accommodations for, cooperate with and provide all
assistance to INS personnel at the Detention Facility as shall be required by the INS Contract. The
Owner and the Operator will accommodate and work with INS personnel at the Detention Facility in
accordance with the INS Contract.</FONT><B></B></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-5-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><a name="approvals"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>5.</B><b><FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></b><B>Approvals.</B></FONT></TD>
</TR>
<TR>
<TD width="45" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>For purposes of any approvals required to be given by Owner, approval may be given from time to time
by such person or persons as may be designated in a written instrument signed and dated by a Manager
of the Owner and delivered to Operator. Each such designation shall remain in effect until it is
expressly revoked in a written instrument signed and dated by a Manager of the Owner and delivered
to Operator. Operator shall be entitled to rely on any such designation that Operator believes in
good faith to meet the requirements of this Agreement. The person authorized to provide approvals
on behalf of the Owner as of the date of this Agreement and until such time of change is a Manager.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><a name="accreditation"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accreditation.</FONT></b></TD>
</TR>
<TR>
<TD width="45" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Operator shall at all times operate the Detention Facility in accordance with all applicable federal,
state and local laws, rules and regulations. Without limiting the foregoing, the Operator shall operate
the Detention Facility in accordance with all requirements of the INS Contract, in compliance with
State of Washington law, and the standards of the most recent edition of the American Correction
Association (&#147;ACA&#148;), Standards for Adult Local Detention Facilities, and the most recent
edition of the National Commission on Correctional Health Care (&#147;NCCHC&#148;), Standards for
Health Services in Jails; it being understood, however, that, in accordance with the INS Contract,
the United States Public Health Service shall be responsible for providing medical and healthcare
services for INS detainees in the Detention Facility and that the Operator shall not have the right
to control the delivery of medical or healthcare services for INS detainees at the Detention Facility or to ensure compliance by the Public Health Service with NCCHC
Standards for Health Services in Jails, and that the Operator shall not be deemed to be in breach
or default of this Agreement as a result of any failure on the part of the Public Health Service
to comply with those standards at the Detention Facility. The Operator agrees to obtain ACA accreditation
and NCCHC accreditation of the Detention Facility within the time frames set forth in the INS Contract;
provided, however, that, in light of the fact that, in accordance with the INS Contract, the United
States Public Health Service shall be responsible for providing medical and healthcare services for
INS detainees in the Detention Facility and that the Operator shall not have the right to control
the delivery of medical or healthcare services for INS detainees at the Detention Facility or to
ensure compliance by the Public Health Service with NCCHC Standards for Health Services in Jails
the Operator shall not be deemed to be in breach or default of this Agreement if it shall be unable
to obtain NCCHC accreditation due to any failure on the part of the Public Health Service to comply
with those standards at the Detention Facility.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="45" vAlign=top><a name="equipment"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><b>7.<FONT face="Times New Roman, Times, Serif" size=2> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></b><B>Equipment and Supplies.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Owner shall provide to Operator and make available for Operator&#146;s use in connection with the
operation and management of the Detention Facility during the entire term of this Agreement all of
the items of furniture, fixtures and equipment necessary for the operation of the Detention Facility
set forth in the specifications attached to the Development Agreement. All furniture, fixtures and
equipment set forth in those specifications and provided by the Owner to Operator and all furniture,
equipment and fixtures subsequently purchased for the Detention Facility, whether purchased by the
Owner or the Operator, shall be and remain the property of</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-6-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>the Owner. The Operator shall be responsible, at its expense, to provide all replacements to the furniture,
fixtures and equipment provides by the Owner hereunder and any supplies and additional or other equipment,
furniture and fixtures necessary for the continued operation of the Detention Facility, except for
equipment, furniture and fixtures provided by the INS, the U.S. Public Health Service or any other
agency utilizing the Detention Facility.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="financial"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Matters; Payment of User Fee.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;</b></FONT><b><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></b><FONT face="Times New Roman, Times, Serif" size=2> <B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds.&nbsp;&nbsp;&nbsp; </I></B>The Operator hereby agrees that, for so long as any Bonds remain outstanding under the Indenture, any
and all revenues, income and receipts of any nature in any form, derived by the Operator from the
operation and management of the Detention Facility, including, without limitation, all amounts due
or to become due from INS as a result of performance of the INS Contract (collectively, &#147;Operating
Revenues&#148;) shall be paid to the Trustee to be deposited in the Revenue Fund established under
the Indenture, as and when received consistent with the Assignment of Claims by and between Operator
and Trustee, and shall be disbursed by the Trustee as provided in the Indenture.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=42>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Indenture provides that, on a monthly basis, the User Fee shall be applied first to make all payments
and deposits required under Paragraphs First through Eighth of Section 5.04 of the Indenture, and
that except as provided in Section 5.04 of the Indenture after all required payments and deposits
have been made thereunder, the remaining balance of the User Fee shall be disbursed by the Trustee
to the Owner and all remaining Operating Revenues, if any, in excess of the monthly installments
of the User Fee then due and payable, and any other amounts required to be funded by the Operator
under the Indenture, shall be transferred by the Trustee to the Operator.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=42>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The parties hereto intend that the User Fee and all other amounts payable hereunder shall be net to
the Owner. The Operator shall pay or cause to be paid, all liabilities, all required local, state
and federal taxes including, without limitation, income, franchises, gross receipts, sales, use,
documentary, stamp, excise and personal property taxes, real estate taxes, assessments, licenses,
registration fees, freight and transportation charges and any other charges imposed or liabilities
incurred with respect to the ownership, possession or use of the Detention Facility, payment of the
User Fee or any other payments by the Operator hereunder, and any penalties, fines or interest imposed
on the Operator hereunder, and any penalties, fines or interest imposed on any of the foregoing,
during the term of this Agreement, and the Operator will pay all reasonable expenses incurred by
the Owner or the Trustee in connection with all filings or recordings of any documents relating to
this Agreement or the Owner&#146;s or the Trustee&#146;s rights hereunder. Notwithstanding the foregoing,
pursuant to the Indenture the Trustee shall pay the costs of insurance and taxes coming due on the
Detention Facility and the site thereof, and such payments shall be a credit against the obligation
of the Operator to pay such amounts under this Agreement; provided, however, that the Operator shall
be required to replenish the Insurance and Property Taxes Fund established under the Indenture in
monthly installments as provided in the Indenture.</FONT></TD></TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-7-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Operator
shall be responsible for all costs of operation and
maintenance of the Detention Facility. The&nbsp;Owner shall have no obligation,
responsibility or liability for any operating costs associated with the Detention Facility.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Operator shall assist
the Owner in preparing the annual operating
budget for the Detention Facility required by the Loan Agreement.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="operating"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating Reserve Fund.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In addition to and after payment of the User Fee from the Operating Revenues, the Operator also agrees
to utilize Operating Revenues to fund, in 48 equal monthly installments of $12,500, deposits into
the Operating Reserve Fund until the balance on hand in such Fund is equal to $600,000. Thereafter,
if and to the extent that the balance in the Operating Reserve Fund shall ever be less than $600,000,
the Operator shall use Operating Revenues next available after payment of the User Fee then due,
to make additional monthly deposits into such Operating Reserve Fund until the balance on hand therein
is at least equal to $600,000. Such deficiency shall be cured by substantially equal monthly deposits
by the Operator over (a) a twelve (12) month period if such deficiency results from a withdrawal
or (b) over a four month period if such deficiency results from calculation of the value of investments
on deposit in the Operating Reserve Funds.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to the provisions of the Indenture, the Operator shall have the ability to requisition amounts
on deposit in the Operating Reserve Fund for the sole purpose of paying the actual costs of operation
and maintenance of the Detention Facility to the extent that Operating Revenues available to the
Operator for such purpose are insufficient, subject to the obligation to restore such amounts as
set forth above.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45><a name="intellectual"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intellectual Property.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>As between Operator and the Owner, all rights of any nature, including, without limitation, any copyrights
and any trademark or service mark rights (together with any goodwill appurtenant thereto) (&#147;Rights&#148;)
in and to the Detention Facility or administrative materials created by Operator, and all rights
in and to materials created, adapted or modified by Operator for use in connection with the Detention
Facility, shall be owned exclusively by Operator.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="insurance"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Operator will purchase and maintain, and cause its subcontractors to purchase and maintain throughout
the term of this Agreement, all insurance coverages by insurers acceptable to Owner and the INS as
required by the INS Contract and Section 6.6 of the Loan Agreement, including insuring the value
of the Detention Facility at 100% replacement cost, general liability coverage, business interruption
insurance, workers&#146; compensation coverage, civil rights liability coverage, vehicle liability
coverage and all other coverages and forms of insurance customary with respect to similar detention
facilities. For the purpose of assuring that funds are available for the purchase of such insurance,
the Operator shall be responsible for funding the Insurance and Property Taxes Fund established under
the Indenture to the extent required by and in accordance with the terms of the Indenture; and the
amounts on deposit in such Fund may be</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-8-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>used to purchase such insurance. To the extent that the amount on deposit in the Insurance and Property
Taxes Fund is insufficient to purchase such insurance or if such Fund is not used to pay for such
insurance, the Operator shall immediately pay the amount of such deficiency to the Trustee or, at
the Operator&#146;s expense, shall immediately procure such insurance directly; and the Operator,
to the extent required under the Indenture, shall be responsible for replenishing the Insurance and
Property Taxes Fund to the extent required under the terms of the Indenture.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The cost of such insurance will be paid by the Operator. Upon request of the Owner, Operator will provide
evidence satisfactory to the Owner of such insurance, including without limitation, a certificate
of insurance or a copy of such insurance policy. Each policy of insurance shall provide that it shall
not be cancelled without at least 30 days prior written notice to Owner.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Owner and the Trustee shall be named as an additional insured under all liability insurance policies
purchased and maintained by the Operator, and the Trustee shall be named as an insured mortgagee
and loss payee, as its interests may appear, on all property and casualty insurance policies consistent
with the requirements of the Loan Agreement and the Deed of Trust.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="cooperation"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cooperation.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The
  Owner agrees to cooperate with Operator at no cost to Owner in filing all forms,
  notification, reports and information in obtaining all consents, authorizations
  and approvals required or desirable in connection with this Agreement and in
  performing on behalf of the Owner the obligations required by sections 5.5,
  5.6 and 8.5 of the Loan Agreement and Section 22 of this Agreement. The Owner
  agrees to act promptly in the event of an emergency or in the event that a major
  decision with respect to any aspect of the Detention Facility must be made immediately.
  The Owner also agrees to enter into agreements and grant contracts relating
  to the Detention Facility, either solely or in conjunction with Operator, when
  necessary because of the Owner&#146;s property ownership or Owner status so
  long as such agreements and contracts are not inconsistent with the terms, conditions
  and covenants set forth in the INS Contract, the Indenture, any Agency Contract,
  the Loan Agreement or any other document securing the Bonds.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="records"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Records.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Operator shall keep current, complete and accurate books, accounts and
    records in connection with the operation and management of the Detention Facility. The
    original records necessary for the operation and management of the Detention Facility
    shall be the property of the Owner, but shall be in the possession of Operator during the
    term of this Agreement. Operator, the Owner, the Insurer and the Trustee shall be
    entitled to inspect and make copies of such records at any time. All books, accounts and
    records shall be retained in accordance with Operator&#146;s record retention policy, subject to
    the requirements set forth in the INS Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> Within one hundred (100) days of the end of the Operator&#146;s fiscal year, a
    copy of the audited financial statements of the Operator (with the supplemental
    information regarding the Project) and within forty-five (45) days after the close of each</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-9-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>quarter of the Operator&#146;s fiscal year, a copy of the unaudited financial statements of the Operator
shall be sent to the Trustee and the Insurer.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Trustee and the Insurer shall have the right to receive such additional
    information as it may reasonably request, including without limitation copies of the
    Annual Budget.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Operator will permit the Trustee and the Insurer to discuss the affairs,
    finances and accounts of the Operator or any information the Trustee or the Insurer may
    reasonably request regarding the security for the Bonds with appropriate officers of the
    Operator, and will grant the Trustee and the Insurer access to the facilities, books and
    records of the Operator on any business day upon reasonable prior notice.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> The Operator shall promptly notify the Insurer of the occurrence of any event of default by the Operator under any of its bank loans or other credit facilities. </FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48><a name="confidentiality"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Confidentiality.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator shall maintain all confidential personnel and prisoner records in the manner required by law
and shall obtain all necessary approvals and consents for access to such records. The Owner agrees
to cooperate with and assist Operator in obtaining such approvals and consents.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48><a name="grievances"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Grievances.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator shall be responsible for conducting all grievance or complaint procedures and due process
hearings to which prisoners, guards, or others may be entitled by law or pursuant to policies approved
by INS.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48><a name="representations1"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of Operator.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator represents and warrants that it is a Delaware corporation in good standing and that it has
applied for and has obtained a certificate of authority to conduct activities in the State of Washington
and that the undersigned has full corporate authority to execute this Agreement on behalf of Operator;
and that the performance of the terms and conditions of this Agreement will not constitute a violation
of the governing documents or other contracts or obligations of Operator.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48><a name="representations2"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>17. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of Owner.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Owner represents and warrants that it is a Delaware limited liability company; that the only member
of the Owner is the Operator; that the performance of the terms and conditions of this Agreement
will not constitute a violation of the certificate of formation, limited liability company agreement,
governing documents or other contracts or obligations of the Owner.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-10-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="indemnification"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>18. &nbsp;&nbsp;&nbsp;&nbsp; Indemnification.</B></FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><I></I></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B>(a) </B>&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><B><I>Indemnification by Operator of the Owner. </I></B>Operator shall defend in any action at law, indemnify and hold the Issuer, the members of Owner, the Owner and/or their attorneys, managers, directors, supervisors, officials, agents, advisors, and employees (the &#147;Indemnified Parties&#148;) harmless from and against:</FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
  <TR>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">(i)</FONT><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Claims arising from:</FONT></TD>
  </TR>
  <TR>
    <TD width="135" vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=135><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A breach or default on the part of the Operator in the performance of this Agreement or the INS Contract;</FONT></TD>
  </TR>
  <TR>
    <TD width="135" vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=135><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A claim or loss for services rendered by Operator, or by any person or firm performing or supplying services, materials or supplies in connection with the performance of this Agreement;</FONT></TD>
  </TR>
  <TR>
    <TD width="135" vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=135><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A claim or loss to any person injured or property damaged from the acts or omissions of Operator, its officers, agents, or employees in the performance of this Agreement;</FONT></TD>
  </TR>
  <TR>
    <TD width="135" vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=135><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A failure by Operator, its officers, directors, agents, or employees to observe the Constitution, laws, regulations, ordinances or orders of the United States, the INS, and the State of Washington or any applicable local laws, regulations or ordinances; and</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=135><font face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A claim or loss resulting from an act or omission of inmates proximately caused or permitted by Operator&#146;s negligent management or operation of the Detention Facility.</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">
<TR>
<TD width="135" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="90">&nbsp;</td>
    <td valign="top"><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)</FONT><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2> Costs, reasonable attorney&#146;s fees, expenses, and liabilities incurred in or about such claim, action, or proceeding brought thereon.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top"><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii)</FONT><FONT size=2 face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Any
      and all liabilities (including strict liability), actions, demands, penalties,
      losses, costs or expenses (including, without limitation, consultants fees,
      investigations and laboratory fees, reasonable attorney&#146;s fees, expenses
      and remedial costs), suits, costs of any settlement or judgments and claims
      of any and every kind whatsoever which may now or in the future be paid,
      incurred or suffered by or asserted against the Indemnified Parties, INS
      or by any person or entity or governmental agency for and as a result of
      Operator&#146;s actions, the presence on, or the escape, seepage, leakage,
      spillage, discharge, emission or release from the Detention Facility of
      any Hazardous Materials or Hazardous Materials Contamination or arise out
      of or result from the environmental condition of the Detention Facility
      or the applicability of any of any state or federal laws relating to Hazardous
      Materials (including, without limitation, CERCLA or any so-called federal,
      state or local &#147;Superfund&#148; or &#147;Superlien&#148; laws, statute,
      law ordinance, code, rule, regulation, order or decree) (collectively, &#147;Hazardous
      Materials Laws&#148;).</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-11-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Said indemnification shall not be applicable to any claim, injury, death or damage to property arising
out of any act or omission on the part of the Indemnified Parties or independent contractors (other
than Operator) who are directly responsible to the Owner. Further said indemnification will not be
applicable to any and all events, circumstances, or occurrences which occur at the Detention Facility
after the expiration of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top>&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In case any action or proceeding is brought against the Indemnified Parties by reason of any above
listed claim, Operator, upon notice, shall defend against such action. Notice under this section
shall be given to Operator within thirty (30) days of receipt of same. Neither the Operator nor the
Owner will enter into any settlement with respect to any claim without first obtaining approval of
the other parties.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification of Operator by the Owner.</I></b></FONT><FONT face="Times New Roman, Times, Serif" size=2><I> </I> &nbsp;The Owner shall indemnify and hold Operator, its officers, directors, attorneys, advisors, agents and
employees harmless for and against:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A breach or default on the part of the Owner in the performance
of this Agreement (unless caused by the Operator&#146;s breach of any of its obligations);</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A claim or loss to any person injured or property damaged from the acts or the omissions of the
Owner, its officers, directors, agents, attorneys, advisors, or employees (other than Operator and
its directors, officers, agents or employees) in the performance of this Agreement; and</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=90>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii) &nbsp;&nbsp;&nbsp;&nbsp;A failure of the Owner, its officers, directors, attorneys, agents, advisors, or, employees to
observe the laws of the United States and of the State of Washington.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="waiver1"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>19. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Waiver of Jury Trial.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE OPERATOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE)
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE RELATED DOCUMENTS AND INSTRUMENTS AND
THE ACTIONS OR INACTIONS OF THE OWNER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
THEREOF.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="events"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>20. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Events of Default and Remedies.</FONT></b></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>The following constitute &#147;Events of Default&#148; under this Agreement:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;failure by the Operator to pay to Trustee, as assignee of the Owner, when due the User Fee or any
installment thereof or to pay any other payment required to be paid hereunder;</FONT></TD>
</TR>
</TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-12-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;failure by the Operator to maintain insurance on the Detention Facility in
    accordance with Section 11 hereof;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;failure by the Operator to observe and perform any other covenant,
    condition or agreement contained herein or in any other document or agreement executed
    in connection herewith on its part to be observed or performed for a period of thirty (30)
    days after written notice is given to the Operator specifying such failure and requesting
    that it be remedied; provided, however, that, if the failure stated in such notice cannot be
    corrected within such thirty (30) day period, Owner will not reasonably withhold its
    consent to an extension of such time if corrective action is instituted by the Operator
    within the applicable period and diligently pursued until the default is corrected;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; initiation by the Operator of a proceeding under any federal or state
    bankruptcy or insolvency law seeking relief under such laws concerning the indebtedness
    of the Operator;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(e)<FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the Operator shall be or become insolvent, or admit in writing its inability
    to pay its debts as they mature, or make an assignment for the benefit of creditors; or the
    Operator shall apply for or consent to the appointment of any receiver, trustee or similar
    officer for it, or for all or any substantial part of its property; or such receiver, trustee or
    similar officer shall be appointed without the application or consent of the Operator; or
    the Operator shall institute (by petition, application, answer, consent or otherwise) any
    bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution,
    liquidation or similar proceeding relating to it under the laws of any jurisdiction; or any
    such proceeding shall be instituted (by petition, application or otherwise) against the
    Operator; or any judgment, writ, warrant of attachment or execution or similar process
    shall be issued or levied against a substantial part of the property of the Operator;</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;determination by Owner that any material representation or warranty made
    by the Operator or in any other document executed in connection herewith was untrue in
    any material respect when made; or</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the occurrence of a default under the INS Contract or any Agency
    Contract.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Whenever any Event of Default shall have occurred and be continuing, Owner shall have the right, at
its sole option without any further demand or notice, to take any one or any combination of the following
remedial steps and such other steps which are accorded to the Owner, by applicable law:</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(i) &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;by notice to the Operator and the Trustee, terminate this Agreement and all right, title and interest
of Operator hereunder;</FONT></TD>
</TR>
<TR>
<TD width="96" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=96>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at the direction of the Insurer and with the consent of INS, terminate this Agreement and provide
for a successor Operator acceptable to the Insurer and the INS;</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-13-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=82>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;take possession of the Detention Facility, without any court order or other process of law and
without liability for entering the premises, and lease, sublease or make other disposition of the
Detention Facility for use over a term in a commercially reasonable manner, all for the account of
the Owner;</FONT></TD>
</TR>
<TR>
<TD width="82" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=82>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;proceed by appropriate court action to enforce specific performance by the Operator of the applicable
covenants of this Agreement or to recover for the breach thereof, including the payment of all amounts
due from the Operator. The Operator shall pay or repay to Trustee or the Owner all costs of such
action or court action, including, without limitation, reasonable attorneys&#146; fees; and</FONT></TD>
</TR>
<TR>
<TD width="82" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=82>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>(v) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;take whatever action at law or in equity may appear necessary or desirable to enforce its rights
hereunder and with respect to the Detention Facility. The Operator shall pay or repay to Trustee
or the Owner all costs of such action or court action, including, without limitation, reasonable
attorneys&#146; fees.</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No remedy herein conferred upon or reserved to the Owner is intended to be exclusive and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement
or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power
accruing upon any Event of Default shall impair any such right or power or shall be construed to
be a waiver thereof, but any such right or power may be exercised from time to time and as often
as may be deemed expedient. In order to entitle the Owner to exercise any remedy reserved to it in
this Section, it shall not be necessary to give any notice other than such notice as may be required
by this Section. All remedies herein conferred upon or reserved to the Owner shall survive the termination
of this Agreement.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If
      an Event of Default occurs hereunder, Owner may communicate with the INS
      and its representatives regarding the Event of Default, Operator, the operation
      of the Detention Facility or any other matter and may negotiate with the
      INS regarding the Detention Facility, the INS Contract and the use and operation
      of the Detention Facility; and none of those actions or any related actions
      or communications shall be deemed to constitute interference, intentional
      or otherwise, by Owner with the INS Contract or Operator&#146;s relationship
      with the INS or be deemed to be disclosure of any information which arguably
      may be considered confidential. However, Owner shall not be under any obligation
      to take any of the foregoing actions.</FONT></TD>
  </TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Owner and its agents and representatives may from time to time enter the Detention Facility to inspect
and to assure that Operator is complying with its obligation under this Agreement. If Operator fails
to satisfy any of its obligations hereunder, then, regardless of whether an Event of Default has
occurred or has been declared, Owner, Trustee or Insurer may cure the failure; and Operator, on demand,
shall reimburse Owner, Trustee or Insurer for any cost and expense incurred by Owner in curing the
failure, together with interest at the rate set forth in Section l(f) of this Agreement.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-14-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="47"><a name="effect"></a></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><B>21.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of Termination.</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Subject to Section 20 hereof, in the event this Agreement is terminated by either party for any reason,
Operator shall be under no further obligation to begin, continue or complete any undertakings or
activities contemplated by this Agreement, subject, however, to the responsibility of Operator to
provide continuous services under the INS Contract. The termination of this Agreement shall in no
way affect or impair any right which has accrued to either party hereto prior to the date when such
termination shall become effective. In order to facilitate an orderly transition, the parties agree
that in the event of any such termination, the parties shall reasonably cooperate with each other
to develop a mutually agreeable transition plan to assure minimal disruption in the Detention Facility
and to cooperate in preparing for and addressing any termination proceedings.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="replacement"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>22.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Replacement Operator; Successor User.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event the Operator defaults under the INS Contract or if INS opts to continue to utilize the
Detention Facility but replace the Operator, Owner will undertake its best efforts in good faith
to find a substitute Operator acceptable to INS and agrees to allow the assignment of this Agreement
to such substitute Operator or to enter into a substantially similar agreement with such substitute
Operator for the continued operation and utilization of the Detention Facility in compliance with
the terms of the INS Contract, if assumed by such substitute Operator, or any similar agreement with
INS for the provision of services to INS similar to those to be provided under the INS Contract.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event the INS Contract expires and INS does not desire to utilize the Detention Facility, the
Owner and Operator shall use their best efforts to market the use of the Detention Facility to other
federal, state or local agencies and bodies in order to maximize the revenues derived therefrom.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In the event the INS Contract is renewed or replaced, the Operator hereby agrees to execute an assignment
of claims in favor of the Trustee and take all necessary actions to effectively continue the assignment
and pledge of all Revenues to the Trustee in the manner contemplated by this Agreement and the Indenture.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Owner hereby agrees to require any successor or substitute operator of the Detention Facility,
to assign and pledge to the Trustee all Revenues derived from the Detention Facility in the manner
contemplated by this Agreement and the Indenture.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Operator agrees that it will not utilize the existing Seattle INS facility except for any transition
period with respect to the startup of the Detention Facility or in an overflow (over 100% occupancy
at the Detention Facility) or emergency situation.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The Operator agrees to give prompt written notice to the Insurer, the Owner and the Trustee if it receives
any notice from INS that INS is exercising the termination for convenience provisions of the INS
Contract.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-15-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD width="47" vAlign=top><font face="Times New Roman, Times, Serif" size=2><a name="damage"></a></font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>23.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Damage, Destruction or Loss of Property; Obligation to Rebuild; Use of Insurance Proceeds and </B></FONT></TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>Condemnation Awards.</B></FONT></TD>
</TR>
<TR>
  <TD colspan="2" vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If prior to full payment of all Bonds and all Reimbursement Obligations (or provision for payment thereof
having been made in accordance with the provisions of the Indenture), the site of the Detention Facility
as described in the Deed of Trust (the &#147;Project Site&#148;) or the Detention Facility or any
other property of the Owner located thereon (the &#147;Property&#148;), or any part or component
of the Property, shall be damaged or destroyed, by whatever cause, or shall be taken by any public
authority or entity in the exercise of or acquired under the threat of the exercise of its power
of eminent domain, there shall be no abatement or reduction in the User Fee and other amounts payable
under this Agreement, and the Operator will apply any insurance proceeds or condemnation awards resulting
from claims for such losses or takings as provided in this Section. If prior to full payment of all
Bonds (or provision for payment thereof having been made in accordance with the provisions of the
Indenture), the Property, or any part or component of the Property having a value of more than $50,000
shall be damaged, destroyed, or the Property or any part or component of the Property having a value
of more than $50,000 shall be taken by eminent domain or the threat of exercise of eminent domain,
the Operator shall promptly give, or cause to be given, written notice thereof to the Owner and the
Trustee, shall continue to pay all amounts payable hereunder and shall proceed promptly to repair,
rebuild, restore or replace the property damaged, destroyed or taken, with such changes, alterations
and modifications (including the substitution and addition of other property) as may be directed by the Owner.</FONT></TD>
</TR>
<TR>
<TD colspan="2" vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="amendment"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>24.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendment.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement may be amended only by a written instrument executed on behalf of both Operator and
the Owner (with a copy to the Trustee) only with the prior written consent of the Insurer.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="force"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>25.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Force Majeure.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding any other provision of this Agreement, neither party hereto shall be liable, during
the period of delay or inability to perform, for any delay in performance or inability to perform
due to acts of God or the public enemy, war, riot, embargo, fire, explosion, sabotage, flood, accident;
or without limiting the foregoing any circumstances of like or different character beyond its reasonable
control; or labor trouble from whatever cause arising (other than the duty to pay User Fees, utilities,
taxes, insurance premiums and other costs and expenses associated with the Detention Facility).</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="relationship"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>26.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Relationship of the Parties.</B></FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The relationship of Operator and the Owner hereunder shall be solely that of independent contractors
and landlord and tenant and nothing herein shall be construed to create or imply any relationship
of employment, agency or partnership or any relationship other than that of independent contractors
and landlord and tenant. Operator and the Owner acknowledge and agree that each of them is engaged
in a separate and independent business and neither shall state, represent or imply any control over
the business of the other.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-16-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="governing"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>27.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement shall be governed by and construed in accordance with the internal laws of State of
Washington without giving effect to the principles of conflict of laws.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="entire"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>28.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Entire Agreement.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement constitutes the entire agreement of the parties hereto and supersedes all prior agreements
and understandings, written or oral, between the parties relating to the subject matter hereof.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="notices"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>29.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Notices.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>All notices, requests, demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given if: (i) delivered by hand, (ii) sent by overnight courier service,
or (iii) sent by certified or registered mail, postage prepaid, return receipt requested, to the
party to whom such notice is intended to be given at the addresses set forth herein. Any notice delivered
in the manner provided above will be deemed given at the time of receipt. Until changed by notice
in the manner provided above, the addresses of the parties are as follows:</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="13%"><font size="2">&nbsp;</font></td>
    <td width="23%" valign="top"><font size="2">To the Owner:</font></td>
    <td><font size="2">CSC of Tacoma LLC <br>
    c/o AMACAR Group, LLC <br>
    6526 Morrison Blvd., Suite 318 <br>
    Charlotte, NC 28211</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">and</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">CSC of Tacoma LLC <br>
    c/o Correctional Services Corporation <br>
    1819 Main Street, Suite 1000 <br>
    Sarasota, Florida 34236 <br>
    Attention: James Slattery <br>
    Telephone: (941)&nbsp;953-9199 <br>
    Facsimile: (941)&nbsp;953-9198</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td valign="top"><font size="2">To the Operator:</font></td>
    <td><font size="2">Correctional Services Corporation <br>
    Suite 1000 <br>
    1819 Main Street <br>
    Sarasota, FL 34236 <br>
    Attention: John R. Mentzer, III <br>
    Telephone: (941)&nbsp;953-9199 <br>
    Facsimile: (941)&nbsp;953-9198</font></td>
  </tr>
</table>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-17-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="12%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="23%" valign="top"><font size="2" face="Times New Roman, Times, serif">To the Insurer:</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">MBIA Insurance Corporation <br>
    113 King Street <br>
    Armonk, New York 10504 <br>
    Attention: Surveillance <br>
    Telephone: (914) 765-3533 <br>
    Facsimile: (914)&nbsp;765-3665</font></td>
  </tr>
</table>
<br>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="counterparts"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>30.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>Counterparts.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>This Agreement may be executed in one or more counterparts, each of which shall constitute an original
and all of which, taken together, shall constitute one original.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="invalidity"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>31.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Invalidity.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>If any provision of this Agreement, including without limitation any grant of authority by the Owner
to Operator, is held to be invalid, unlawful or unenforceable, such provision shall be revised or
applied in a manner that renders it valid, lawful and enforceable to the fullest extent possible.
In such event, the parties agree to use their best efforts to revise or apply such provision in accordance
with the intent of this Agreement. The invalidity of any particular provision of this Agreement shall
not affect any other provision hereof.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="assignment"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>32.</B> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>Assignment.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Except as provided below and the assignment to the Trustee as contemplated in the Indenture and in
the Assignment of Claims referenced herein, Operator shall not assign, subcontract or sublicense
any of its rights or obligations hereunder without the prior written consent of the Insurer; provided,
however, that Operator may, without the consent of the Owner, assign or subcontract the performance
of (but not responsibility for) any duties and obligations of Operator hereunder in a manner consistent
with the INS Contract or any other Agency Contract as provided above. The Operator may, upon 60 days
notice to, but without the consent of, the Owner, assign all of its rights and obligations hereunder
to any entity with the prior written approval of INS and the Insurer. Except as provided in this
Section, the rights created by this Agreement shall inure to the benefit of, and the obligations
created hereby shall be binding upon, the successors, heirs and assigns of the respective parties hereto.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="waiver2"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>33.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Waiver.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>No waiver of any provision of this Agreement shall be deemed to constitute a waiver of any other provision.
No such waiver shall be binding unless it is in writing and no waiver will be held to continue unless
otherwise expressly stated by the party waiving the provision. Waiver of a breach shall not constitute
a waiver of any subsequent breach of that term or of any other term or provision.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="survival"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>34.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Survival.</B></FONT></TD></TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The provisions contained in paragraphs 10 (Intellectual Property), 18 (Indemnification), 21 (Effect
of Termination), and 22 (Replacement Operator; Successor User) shall survive the termination of this
Agreement and remain in full force and effect.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-18-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="further"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>35.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Further Assurances.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>In order to more fully assure each party of the benefit of contracting hereunder, each party agrees
to deliver to the other party such confirmations of fact, records, certificates, instruments of assignment
and other documents and things as may be reasonably requested by the other party to carry out the
purposes of this Agreement.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="litigation"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>36.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Litigation.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><b>(a)</b><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <I><b>Prior Occurrence.</b> </I>&nbsp;&nbsp;The Operator shall remain solely responsible for any
    losses or costs resulting from litigation pending at the time this Agreement becomes
    effective or for lawsuits arising thereafter relating to events or conditions which occurred
    or existed prior to the effective date of this Agreement.</FONT></TD>
</TR>
<TR>
<TD width="45" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=45>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2><b>(b)</b><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <I><b>Post Conviction Action.</b> </I>&nbsp;&nbsp;Owner shall not be responsible for defense of
    any post conviction action, including appeals and writs of habeas corpus filed by any
    inmate challenging the underlying judgment of conviction or the administration of the
    sentence imposed.</FONT></TD>
</TR>
<TR>
<TD width="45" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="third"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>37.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third Party Rights.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>INS, the Insurer and the Trustee are hereby specifically named as third party beneficiaries to this
Agreement. The parties hereto expressly acknowledge that INS shall maintain a high level of control
over the operations and management of the Detention Facility. To that end, (i) to the extent of any
conflict between the terms of this Agreement and the terms of the INS Contract, the terms of the
INS Contract will prevail; (ii) subject to the terms of this Agreement, the Owner may not terminate
or replace the Operator without the prior written consent of INS; and (iii) no amendment to or modification
of the terms of this Agreement shall be valid or effective unless and until approved by INS and the
Trustee. The provisions of this Agreement are otherwise for the sole benefit of the parties hereto
and shall not be construed as conferring any rights to any other person other than INS and the Trustee
as specified herein.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="nonrecourse"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>38.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nonrecourse Obligation.</B></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding anything to the contrary contained in this Agreement, but without in any manner releasing,
impairing or otherwise affecting this Agreement or the INS Contract, the liability and obligation
of the Operator for the payment of the User Fee shall be non-recourse to the Operator and upon the
occurrence of an Event of Default under Section 20(a) of this Agreement, the liability of Operator
for any and all such Events of Default shall be limited to and be satisfied solely out of User Fees
then due and payable, any and all amounts due to Operator under the INS Contract, all Operating Revenues
(as defined in this Agreement) available therefor and all other Collateral, as defined in Section
l(g) above. Owner shall not have the right to allocate and demand payment for any User Fee not then
due and payable at the time of the occurrence of the Event of Default.</FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Notwithstanding the limitation contained in the first subsection of this Section 38, nothing contained
in this Section 38 shall be deemed to prejudice the rights of Owner or Trustee to (i) proceed against
any entity or person whatsoever, including Operator with respect to the</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-19-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>enforcement of
      any leases, contracts, warranties, bonds, policies of insurance or other
      agreements, including compliance with any of the terms, covenants and conditions
      of this Agreement, including, but not limited to, Section 18 hereof, the
      INS Contract or the Assignment of Claims; and/or (ii) recover damages against
      Operator for fraud, failure to maintain insurance, misrepresentation or
      waste; and/or (iii) recover any payments made by INS under the INS Contract
      which were not paid to the Trustee under the Assignment of Claims; and/or
      (iv) recover any condemnation proceeds or insurance proceeds or other similar
      funds or payments attributable to the Detention Facility or the INS Contract,
      which may have been misapplied by Operator or which under the terms of this
      Agreement, the Deed of Trust or the Assignment of Claims should have been
      paid to Trustee; and/or (v) recover any revenue paid to or held by Operator
      in connection with the Detention Facility, and/or (vi) recover any costs,
      expenses or liabilities, including attorneys&#146; fees, incurred by Trustee
      and arising from any breach of any warranty or indemnity agreement given
      to Trustee (including, without limitation, the Environmental Indemnity Agreement);
      or any order, consent decree or settlement, in each instance, relating to
      the cleanup of hazardous substances, or any other environmental provision
      relating to the Detention Facility or any portion thereof. Operator shall
      be personally liable for Operator&#146;s obligations arising in connection
      with the matters set forth in the foregoing clauses (i) to (vi) inclusive.</FONT></TD>
  </TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="disclaimer"></a></TD>
<TD vAlign=top><b><FONT face="Times New Roman, Times, Serif" size=2>39. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclaimer Regarding the Condition of the Property.</FONT></b></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>OPERATOR HAS BEEN GIVEN THE OPPORTUNITY TO REVIEW PLANS, SPECIFICATIONS, AND CONSTRUCTION CONTRACTS
WITH RESPECT TO THE DETENTION FACILITY, AND UPON COMPLETION OF CONSTRUCTION WILL BE GIVEN THE OPPORTUNITY
TO INSPECT THE DETENTION FACILITY, AND IS AND WILL BE RELYING SOLELY ON ITS OWN REVIEW AND INSPECTION
IN MAKING ITS DECISION TO ENTER INTO THIS AGREEMENT. OPERATOR SHALL ASSUME THE RISK THAT ADVERSE
MATTERS CONCERNING THE DETENTION FACILITY MAY NOT HAVE BEEN REVEALED BY OPERATOR&#146;S REVIEW AND
INSPECTION AS AFORESAID. OWNER HAS NOT MADE, DOES NOT MAKE, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS, OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS OR IMPLIED CONCERNING OR WITH RESPECT TO THE DETENTION FACILITY DESCRIBED HEREIN, INCLUDING
COVENANTS, AGREEMENTS, OR GUARANTIES CONCERNING (A) THE NATURE, QUALITY OR CONDITION OF THE DETENTION
FACILITY OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN; (B) THE SUITABILITY OF THE DETENTION FACILITY
OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN FOR ANY USE OR PURPOSE; OR (C) THE MERCHANTABILITY OF
THE DETENTION FACILITY OR ANY OF THE FIXTURES OR EQUIPMENT THEREIN. OPERATOR HEREBY ACCEPTS THE DETENTION
FACILITY, &#147;AS IS,&#148; WITH ALL FAULTS AND DEFECTS OF ANY NATURE WHATSOEVER. OPERATOR SHALL
NOT HAVE ANY RIGHT OF RECOURSE AGAINST OWNER ON ACCOUNT OF ANY LOSS, COST OR EXPENSE SUFFERED OR
INCURRED BY OPERATOR WITH REGARD TO ANY OF THE PRECEDING MATTERS.</FONT></P>
<B></B>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-20-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="miscellaneous"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>40.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>The recitals and preamble to this Agreement are a substantive part hereof and shall be interpreted
and given effect as such and are incorporated into this Agreement by this reference.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Captions used herein are for convenience of reference only and shall not be used to interpret this
Agreement. If Owner engages an attorney to enforce its rights under this Agreement, then, whether
or not suit is filed, Operator shall reimburse Owner, on demand, for the reasonable fees of Owner&#146;s
counsel and any costs incurred in connection therewith. If any matter hereunder requires Owner&#146;s
consent or approval, then Owner may give, withhold, condition or delay its consent or approval at
its sole and absolute discretion.</FONT></TD></TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=47><a name="partial"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>41.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Partial Consent Decree.</B></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Because a portion of the site of the Detention Facility (the &#147;Project Site&#148;) lies within
the boundaries of the Tacoma Tideflats Superfund Site, the Project Site is subject to a Partial Consent
Decree for DeMinimus Settlement dated May 10, 1991 entered in the United States District Court for
the District of Washington to which the United States Environmental Protection Agency (the &#147;EPA&#148;)
is a party (the &#147;Partial Consent Decree&#148;). The Owner has joined in the Consent Decree as
a &#147;Settling Defendant&#148; for purposes of such Partial Consent Decree. The Operator and the
Owner each hereby acknowledges and agrees that the Operator&#146;s possessory interest in the Project
Site is subject to the provisions of the Partial Consent Decree relating to access, institutional
controls, and due care, and the Owner, as a Settling Defendant, and the United States of America
each retain the right to enter the Project Site to enforce the terms of the Partial Consent Decree.</FONT></TD>
</TR>
<TR>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="rate"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><b>42.</b> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Rate Covenant.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Owner
  and Operator covenant and agree as follows: if (i) during any Facility Collection
  Period (as defined in the Indenture) the Trustee receives Facility Revenues
  (as defined in the Indenture) in an amount less than the Monthly Minimum Amount
  (as defined in the Indenture) or (ii) during any quarter, the amount of Facility
  Revenues is less than 1.2 times the amounts required to be disbursed pursuant
  to clauses First through Seventh of Section 5.04 of the Indenture (the &#147;rate
  covenant&#148;), the Owner and the Operator will provide to the Insurer and
  the Trustee within 30 days after the end of any such quarter in which the rave
  covenant was not met, a written review of Facility Revenues, including a written
  plant to meet the rate covenant.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=45><a name="continuing"></a></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><B>43.</B> <B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><B>Continuing Disclosure.</B></FONT></TD>
</TR></TABLE>
<P align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>Operator agrees to perform and comply with all undertakings of the Borrower under the Loan Agreement
with respect to continuing disclosure pursuant to Rule 15c2-12 promulgated by the Securities and
Exchange Commission.</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-21-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman, Times, Serif" size=2>IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above
written.</FONT></P>
<TABLE cellSpacing="0" cellPadding="0" width="100%" border="0">

<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Operator: CORRECTIONAL SERVICES CORPORATION</FONT></TD></TR>
<TR>
<TD width="40%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By:<u>&nbsp;&nbsp;&nbsp;/s/ Russell S. Rau&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
</TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name:<FONT face="Times New Roman, Times, Serif" size=2><u>&nbsp; Russell S. Rau&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></FONT></TD>
</TR>
<TR>
  <TD width="40%" vAlign=top></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Title:<u>&nbsp;&nbsp;&nbsp;Senior Vice President&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></TD>
</TR>
<TR>
  <TD width="40%" vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD width="40%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Owner: CSC OF TACOMA LLC</FONT></TD>
</TR>
<TR>
  <TD width="40%" vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD width="40%" vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>By:_______________________________________</FONT></TD>
</TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>Name:<FONT face="Times New Roman, Times, Serif" size=2><B>____________________________________</B></FONT></FONT></TD>
</TR>
<TR>
<TD vAlign=top width=40%>&nbsp;</TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2> Title: Class A Manager</FONT></TD>
</TR></TABLE>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[SIGNATURE PAGE TO USE AGREEMENT]</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>-22-</FONT></P>
<HR color=#000000 noShade>

<P style="PAGE-BREAK-BEFORE: always">
<PAGE>
<P><FONT face="Times New Roman, Times, Serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B> IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first above
written.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Operator: CORRECTIONAL SERVICES CORPORATION</FONT></td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By:_____________________________________</FONT></td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Russell Rau, Senior Vice President</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Owner: CSC OF TACOMA LLC</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By:<u>&nbsp;/s/ James F. Slattery&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT></td>
  </tr>
  <tr>
    <td width="40%">&nbsp;</td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James F. Slattery, Class A Manager</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<P align=center><FONT face="Times New Roman, Times, Serif" size=2>[SIGNATURE PAGE TO USE AGREEMENT]</FONT></P>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2></FONT></P>
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