THE CORPORATION OF THE CITY OF PORT COQUITLAM

4.02 Statements of the operating accounts shall be furnished
periodically by the Bank to the Corporation in accordance with the
Bank's normal practice, save that each such statement shall consist of
two parts; one part shall be designated "Transfer to Concentration
Account" or an abbreviation thereof and shall show the amount of each
day's transfer made pursuant to Paragraph 2.0] hereof during the period
covered by such statement (or where the Corporation so requests, the
aggregate amount of each day's transfers made from designated groups of
such accounts during such period) and the other part shall bear the
account number and shall show all other amounts credited or charged to
such account during such period. For purposes of the Bank's internal
procedures the part designated "Transfers to Concentration Account" will
bear a different number and vouchers will not be provided with respect
to transfer entries.

5. The Corporation agrees to indemnify and save the Bank
harmless from and against all loss and liability which the Bank may
incur or be under arising from or by reason of compliance by the Bank
with the provisions hereof.

6. This Agreement shall continue in effect until terminated
by the Corporation or by the Bank at a termination date to be specified
in written notice given to the other at least thirty days prior to the
termination date so specified, provided that this Agreement may at the
option of the Bank be terminated by the Bank without prior notice im-
mediately upon the happening of any of the following events:

(a) a default in payment of any present or future indebtedness
or liability of the Corporation to the Bank;

(b) service on the Bank of attachment, garnishment or other
process with respect to any account of the Corporation or;

(c) A default by the Corporation in the observance or per-
formance of any term, condition or provision of this
Agreement.

Notice hereunder shall be hand delivered or mailed by registered mail
during any period when normal postal services prevail and shall be
addressed:

(a) in the case of notice given by the Bank, to
The Corporation of the Cicy of Port Coquitlam
2272 McAllister Avenue
Port Coquitlam, B.C.
V3C 2A8