Document:

SECOND AMENDMENT TO LEASE

         This Second Amendment to Lease (the "Second Amendment") is entered into
as of this 1st day of October, 1999 by and between The Realty Associates Fund V,
L.P., a Delaware limited  partnership  ("Lessor"),  and IMPAC Mortgage Holdings,
Inc., a Maryland corporation ("IMH") and IMPAC Funding Corporation, a California
corporation (collectively, "Lessee"), with reference to the following recitals.

                                                RECITALS:

        A. In or about June of 1998,  IMH/ICH Dove Street,  LLC ("Dove  Street")
and Lessee entered into a Standard  Office Lease - Gross (the "Original  Lease")
for the lease of floors one through six (the  "Premises") of an office  building
(the  "Building")  located on a larger parcel of real  property  located at 1401
Dove Street, Newport Beach,  California (the "Property").  The Premises does not
include the real property and improvements owned by Lessor which are outside the
exterior walls of the Premises.

        B.     Dove Street assigned all of its right, title and interest under
the Lease to IMPAC Commercial Holdings, Inc. ("ICH").

        C. In or  about  May of  1999,  ICH and  Lessee  entered  into a First
Amendment to Standard Office Lease - Gross (the "First Amendment"). The Original
Lease and the First  Amendment are hereinafter  collectively  referred to as the
"Lease."  Prior to the execution of the First  Amendment,  Dove Street,  ICH and
IMPAC Mortgage Holdings, Inc. ("IMPAC") entered into a Contract of Sale relating
to the Property (the "Contract").

        D.  Pursuant  to  Section 2 of the First  Amendment,  ICH and  Lessee
agreed  to  collectively  fund on a pro rata  basis up to  $1,922,830.00  (i.e.,
$961,415.00  each) to finance the  construction  of certain  improvements at the
Building (the "Improvement Allowance"). As of the date of this Second Amendment,
ICH and Lessee have paid a total of $207,415.41 of the Improvement Allowance. Of
this $207,415.41,  ICH has paid $103,707.70 and Lessee has paid $103,707.71.  As
of the date of this Second Amendment, $1,715,414.59 of the Improvement Allowance
remains unpaid. Of this $1,715,414.59, Lessor is obligated to pay $857,707.29 of
additional  Improvement  Allowance and Lessee is obligated to pay $857,707.30 of
additional Improvement Allowance.

         E.      ICH has sold the Property to Lessor and, as part of the sale,
ICH has assigned all of its right, title and interest under the Lease to Lessor.

         F. Lessor may elect to construct  another building on the real property
adjacent to the Building (the "Additional Building").  Lessee has caused certain
plans and  specifications  to be prepared for the construction of a building and
has obtained certain entitlements and approvals with respect to the construction
of the building (the "Plans and  Approvals").  The Plans and Approvals  include,
but are not necessarily  limited to,  Lessee's right,  title and interest in all
architectural,  structural,  mechanical,  electrical, plumbing, landscape, civil
engineering  and  soils  engineering  plans,   specifications  and  calculations
obtained by Lessee and relating to the building.

         G.       Portions of the fifth floor of the Building are now leased to
Bankers  Preferred,  Hotel  Partners,  Inc.,  Quinlivan & Kaniewski and Colbert,
Eichinger & Co., LLC (the "Fifth Floor Tenants"). The Fifth Floor Tenants occupy
portions  of the fifth floor (the "Fifth  Floor  Premises")  pursuant to written
leases (the "Fifth Floor Leases")  originally  entered into with Ken Development
Corporation,  a previous  owner of the Building.  Following the execution of the
Fifth Floor Leases,  Dove Street leased to Lessee the Premises,  which  includes
the entire fifth floor of the Building. True, correct and complete copies of the
Fifth Floor Leases are attached hereto as Exhibit "A."
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          H.        Lessor and Lessee wish to amend the Lease on the terms
and conditions set forth below.

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

         1 . Assignment.  Lessee hereby  acknowledges and agrees that Lessor
shall have no  obligation  to Lessee or to any other  person or entity under the
Contract and no term or condition of the Contract shall be binding on Lessor.

         2.     Right of First Offer.  Section 8 of the First Amendment gives
Lessee a right of first offer to purchase the Property. Lessee hereby represents
and warrants that it has previously  waived any rights it may have under Section
8 with respect to the sale of the Property to Lessor.

         3.      Improvements.
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                  (a)      Use of Improvement Allowance.  The Improvement
Allowance shall be used to fund the construction of the  improvements  described
on  Schedule  1 of  the  First  Amendment  and in  this  Second  Amendment  (the
"Improvements").

                  (b) Building Systems Work.  Lessor and Lessee agree to reserve
not  less  than  One  Hundred   Eighty-Nine   Thousand  Seven  Hundred   Dollars
($189,700.00) of the Improvement  Allowance (the "Building  Systems  Allowance")
for the HVAC Controller and Core Work and the  rehabilitation  of the mechanical
elements of the Building's existing elevators (the "Elevator Work"), all as more
particularly  described in Exhibit "B" attached hereto.  The HVAC Controller and
Core Work and the Elevator Work is hereinafter  collectively  referred to as the
"Building  Systems Work." Lessee shall complete the Building  Systems Work using
contractors,  methods and  procedures  approved  by Lessor and Lessee,  in their
reasonable  discretion.   The  Building  Systems  Work  shall  be  completed  in
accordance with the terms and conditions of the Work Letter  Agreement  attached
hereto as  Exhibit  "C" and  incorporated  herein by this  reference  (the "Work
Letter Agreement"). Lessee shall use commercially reasonable efforts to complete
the Building  Systems Work on or before November 1, 2000. To the extent the cost
of the Building  Systems Work exceeds the Building  Systems  Allowance  ("Excess
Costs"),  Lessee shall pay such Excess Costs at Lessee's  sole cost and expense;
provided,  however, if after all other Improvements have been completed and paid
for, and unused  monies  remain in the  Improvement  Allowance,  Lessee shall be
entitled to use such monies to reimburse  Lessee for such Excess Costs.  . It is
expressly  agreed by Lessor and Lessee that  Lessor's  obligation to pay for the
cost of the  Building  Systems Work and the cost of the Floor  Improvements  (as
defined below) shall in no event exceed in total $857,707.29.

                  (c)    Floor Improvements.  The portion of the Improvement
Allowance  not reserved to pay for Building  Systems Work (i.e.,  $1,525,714.59)
shall be used to construct  tenant  improvements on the fourth,  fifth and sixth
floors of the Building  (collectively the "Floor Improvements") and for no other
purpose.  The Floor  Improvements  shall be constructed  in accordance  with the
terms and conditions of the Work Letter Agreement including, but not limited to,
the allocation requirements of Section 2.1 of the Work Letter Agreement.  Lessee
shall pay, at Lessee's sole expense,  amounts in excess of $1,525.714.59  needed
to complete the Floor  Improvements.  Lessor makes no representation or warranty
that  $1,525.714.59 will be sufficient to complete the Floor  Improvements,  and
under no  circumstances  shall Lessor be obligated to fund more than $762,857.30
towards the completion of the Floor Improvements. Notwithstanding the foregoing,
if after all Building  Systems Work is completed  and paid for, it is determined
that  the  cost of the  Building  Systems  Work  was  less  than  $189,700,  the
difference  between the actual cost of the  Building  Systems  Work and $189,700
shall be available to pay the cost of  constructing  Floor  Improvements  (or to
reimburse   Lessor  and  Lessee   for  such  costs
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if previously incurred). Notwithstanding anything to the contrary in this Second
Amendment  or in the First  Amendment,  under no  circumstances  shall Lessor be
obligated to fund any portion of the Improvement Allowance for any purpose other
than the completion of the Building Systems Work and the Floor Improvements, and
Lessee  shall not be entitled to a credit or other  benefit due to the fact that
all of the  Improvement  Allowance is not used to pay for the  Building  Systems
Work and the Floor  Improvements.  The Floor Improvements shall include for each
floor (i) removal (not  encapsulation)  of all asbestos in  accordance  with all
applicable laws, (ii) installation of fire sprinklers, (iii) installation of new
restrooms  and  (iv)  a  buildout   consistent  with   improvements   previously
constructed for Lessee on the second and third floors of the Building. The first
Floor  Improvements to be completed on a floor shall be asbestos removal and the
installation  of fire  sprinklers,  and  any  other  work  associated  with  the
completion  of such items.  Lessee  shall  complete  the Floor  Improvements  in
accordance  with the Work  Letter  Agreement.  The Floor  Improvements  shall be
completed  by Lessee no later  than  October 1, 2004  subject  to Force  Majeure
Delays.  As used  herein,  "Force  Majeure  Delays"  shall mean any actual delay
beyond  the  reasonable  control  of  Lessee  in the  construction  of the Floor
Improvements,  which is caused by,  without  limitation,  any one or more of the
following: (i) strikes or labor disturbances; (b) war; (c) fire; (d) earthquake,
flood or other natural disaster;  (e) unusual or unforeseeable  delay not within
the  reasonable  control of Lessee or Contractor  (as defined in the Work Letter
Agreement) or its Contractors  subcontractors (excluding financial inability) in
transportation  of materials or equipment and the  unavailability  of reasonable
substitutes  therefor;  (f) casualties;  or (g) governmental  action or inaction
(including  failure,  refusal  or delay in  issuing  permits,  approvals  and/or
authorizations), or injunction, permit appeal or court order requiring cessation
of construction taking place in the Building and/or the Premises.  Lessee's lack
of financial  resources shall not constitute a Force Majeure Delay

        4.     Additional Building.  Lessor and Lessee shall cooperate with each
other in coordinating the construction of the Additional  Building in a way that
does not  unnecessarily  interfere  with Lessee's use of the Building.  However,
Lessee  acknowledges and agrees that the construction of the Additional Building
may  necessitate  the  relocation  of some of the  Building's  parking area to a
reasonable  temporary  offsite  location  pursuant  to  paragraph 5 of the First
Amendment.  Lessee  acknowledges  and  agrees  that  the  design,  location  and
construction  of the  Additional  Building  shall be  determined  by Lessor,  in
Lessor's  sole  discretion.  Lessee  hereby  assigns to Lessor its entire right,
title and interest in the Plans and Approvals without representation or warranty
of any kind other than as set forth  herein and agrees to deliver  the Plans and
Approvals to Lessor  concurrently  with its execution of this Second  Amendment.
Such assignment shall not obligate Lessor to pay any cost or expense or to incur
any liability with respect to such Plans and Approvals.

         5.     Fifth Floor Tenancies.
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                (a) Concurrently  with the execution of this Second Amendment by
the parties hereto,  Lessor,  Lessee, on the one hand, and Quinlivan & Kaniewski
and Hotel  Partners,  Inc.,  on the other hand,  shall  execute  the  agreements
attached  hereto as Exhibit "D" and  incorporated  herein by this reference (the
"Sublease Agreements

                (b) The Lease is hereby  amended to eliminate  from the Premises
the space being  occupied  by Bankers  Preferred  Mortgage,  Inc.  (the  "Direct
Tenant") and,  except as provided in (c) below,  the space being occupied by the
Direct Tenant (the  "Eliminated  Space") shall no longer be subject to the terms
and  conditions  of the Lease.  The reduction of the size of the Premises by the
removal of the Eliminated Space shall not reduce the Base Rent payable by Lessee
under the Lease,  Lessee's share of Operating Expense increases (i.e.,  Lessee's
share shall remain  100%) or any other  payment  obligation  of Lessee under the
Lease.  Lessor  shall have the right to collect all rent and other  charges from
the Direct Tenant.  All rent and operating  expense payments  received by Lessor
from the Direct Tenant shall be credited towards the payment of amounts due from
Lessee to Lessor under the Lease for the calendar  month  following the calendar
month in which Lessor  receives a payment from the Direct  Tenant.  Lessor shall
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notify Lessee of its receipt of a payment from the Direct Tenant within ten (10)
days after it receives such payment. Lessor shall have no obligation to commence
a legal action against the Direct Tenant for non-payment of monies due under the
Direct Tenant's lease or for any other reason. Notwithstanding the foregoing, if
the Direct Tenant fails to pay rent or operating  expense payments to Lessor and
such failure is a breach of the Direct  Tenant's  lease,  upon Lessee's  written
request,  and subject to Lessee  reimbursing  Lessor on a monthly  basis for all
costs and expenses incurred by Lessor (including, but not limited to, attorneys'
fees and court  costs),  Lessor  shall file a legal  action  against  the Direct
Tenant to  recover  the rent  and/or  operating  expense  payments.  Any  monies
recovered  by Lessor in the legal  action  shall be applied  first to  reimburse
Lessor for any unpaid costs and expenses  associated with the legal action,  and
the  remainder  shall be credited to the next Base Rent  payable by Lessee under
the Lease.  Lessee's  obligations  under the Lease are in no way  conditioned or
contingent  upon the payment of rent or other amounts by the Direct Tenant,  and
the  failure of the Direct  Tenant to perform any of its  obligations  under its
lease shall in no way reduce or otherwise modify Lessee's  obligations under the
Lease.

               (c) Lessor shall not voluntarily extend the term of the Direct
Tenant's lease or expand the space being occupied by the Direct Tenant. Upon the
termination  of the Direct  Tenant's  lease and the return of  possession of the
premises being  occupied by the Direct Tenant to Lessor (the "Returned  Space"),
the Lease shall  automatically  be deemed  amended to make the Returned  Space a
part of the  Premises,  as if the  Returned  Space had always been a part of the
Premises.  The  increase  in the size of the  Premises  by the  addition  of the
Returned  Space shall not  increase  the Base Rent  payable by Lessee  under the
Lease or Lessee's share of Operating  Expense  increases.  At Lessors'  request,
Lessee shall  execute an amendment to the Lease  confirming  the addition of the
Returned Space to the Premises.  After the Direct Tenant's Lease has terminated,
Lessee shall have the right to sublease space to the Direct Tenant in accordance
with the requirements of Paragraph 12 of the Lease.

                (d) Lessee  represents  and warrants to Lessor that, to the best
of  Lessee's  actual  knowledge,  the  Direct  Tenant's  lease  and the lease of
Colbert,  Eichinger  & Co.,  LLC  ("Colbert")  attached  hereto as  Exhibit  "A"
(collectively, the "Direct Tenant Leases") are true, correct and complete copies
of the Direct Tenant Leases,  that the Direct Tenant Leases are the only written
agreements  with the  Direct  Tenant  and  Colbert  and that  there  are no oral
agreements  with the Direct Tenant or Colbert.  Lessee  further  represents  and
warrants  to  Lessor  that,  to the  best  of  Lessee's  actual  knowledge,  Ken
Development  Corporation,  Dove Street,  ICH and any other person or entity that
has been the  "Lessor"  under the  Direct  Tenant  Leases,  has never  failed to
perform  any of its  obligations  under the  Direct  Tenant  Leases and that the
Direct  Tenants  have not failed to perform any of their  obligations  under the
Direct Tenant Leases.  Lessee further  represents and warrants that, to the best
of Lessee's actual knowledge,  except for Lessee, the Direct Tenant and Colbert,
there are no other  persons or entities with the right to use or occupy space in
the Building.  Lessee shall indemnify,  defend and hold Lessor harmless from and
against any cost, loss, liability, damage or expense (including, but not limited
to,  attorneys  fees and court costs)  incurred by Lessor  because the foregoing
representations  and  warranties  are untrue in whole or in part. To the best of
Lessee's actual  knowledge shall mean to the actual knowledge of Ronald Morrison
without duty of investigation.

        6.  Option  to Extend -  Paragraph  51 of the  Original  Lease is hereby
deleted  in its  entirety  and shall be of no further  force or  effect.  Lessor
hereby  grants to Lessee  the option to extend the term of the Lease for two (2)
consecutive five (5)-year periods (the "Extension  Options") commencing when the
initial lease term expires  (i.e.,  June 1, 2008) and when the first option term
expires  (i.e.,  June 1,  2013)  upon  each and all of the  following  terms and
conditions:

         (a)  Lessee  shall  give to Lessor on a date which is prior to the date
that the applicable  option period would commence (if exercised) by at least one
hundred  eighty (180) days and not more than two hundred  seventy  (270) days, a
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written  notice of the  exercise  of the  option  to  extend  the Lease for said
additional  term,  time  being of the  essence.  Such  notice  shall be given in
accordance  with the  requirements of the Original Lease. If notification of the
exercise  of an  option  is not so  given  and  received,  all  options  granted
hereunder shall automatically expire.

          (b) The  provisions  of section 39 of the Original  Lease apply to the
option granted hereunder.

          (c)  All  of the  terms  and  conditions  of the  Lease  except  where
specifically modified by this section shall apply to each option term.

          (d)    The Base Rent payable during each option term shall be the
Market Rate on the date the option is exercised pursuant to (a) above.

          (e) The term "Market  Rate" shall mean the annual  amount per rentable
square foot that a willing,  comparable  renewal tenant would pay and a willing,
comparable  landlord of a similar office  building (with tenant  improvements in
similar  condition)  would  accept at arm's  length for  similar  space,  giving
appropriate  consideration to the following matters: (i) annual rental rates per
rentable  square  foot;  (ii) the type of  escalation  clauses  (including,  but
without  limitation,  operating  expense,  real estate  taxes,  and CPI) and the
extent of liability under the escalation clauses (i.e.,  whether determined on a
"net lease"  basis or by increases  over a  particular  base year or base dollar
amount);  (iii) rent abatement  provisions  reflecting  free rent and/or no rent
during the lease  term;  (iv)  length of lease  term;  (v) size and  location of
premises being leased; and (vi) other generally  applicable terms and conditions
of tenancy for similar space; provided, however, Lessee shall not be entitled to
any tenant  improvement  or  refurbishment  allowance.  The Market Rate may also
designate  periodic  rental  increases,  a new Base  Year and  similar  economic
adjustments.  The Market Rate may also  include  fair market  value  charges for
parking if similar single-tenant offices are charging for parking.

            (f) If Lessee exercises the Extension Option, Lessor shall determine
the Market Rate by using its good faith  judgment.  Lessor shall provide  Lessee
with  written  notice of such  amount  within  fifteen  (15) days  after  Lessee
exercises an Extension  Option.  Lessee shall have fifteen (15) days  ("Lessee's
Review  Period")  after receipt of Lessors notice of the new rental within which
to accept  such  rental.  In the event  Lessee  fails to accept in writing  such
rental  proposal by Lessor,  then such proposal  shall be deemed  rejected,  and
Lessor and Lessee shall attempt to agree upon such Market Rate, using their best
good faith efforts.  If Lessor and Lessee fail to reach agreement within fifteen
(15) days following Lessee's Review Period ("Outside Agreement Date"), then each
party shall place in a separate  sealed  envelope their final proposal as to the
Market  Rate,  and such  determination  shall be  submitted  to  arbitration  in
accordance  with  subsections  (i) through  (v) below.  In the event that Lessor
fails to timely  generate  the initial  notice of Lessor's opinion of the Market
Rate,  then Lessee may  commence  such  negotiations  by  providing  the initial
notice,  in which event Lessor shall have  fifteen (15) days  ("Lessor's  Review
Period")  after  receipt of Lessee's  notice of the new rental  within  which to
accept such  rental.  In the event Lessor fails to accept in writing such rental
proposed by Lessee, then such proposal shall be deemed rejected,  and Lessor and
Lessee shall  attempt in good faith to agree upon such Market Rate,  using their
best good faith  efforts.  If Lessor and Lessee fail to reach  agreement  within
fifteen (15) days  following  Lessor's  Review  Period  (which shall be, in such
event,  the "Outside  Agreement  Date" in lieu of the above  definition  of such
date),  then each party shall place in a separate  sealed  envelope  their final
proposal  as to  Market  Rate,  and such  determination  shall be  submitted  to
arbitration in accordance with subsections (i) through (v) below.

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                             ARBITRATION OF DISPUTES

              (i) LESSOR AND LESSEE  SHALL MEET WITH EACH OTHER  WITHIN FIVE (5)
BUSINESS  DAYS  AFTER THE  OUTSIDE  AGREEMENT  DATE AND  EXCHANGE  THEIR  SEALED
ENVELOPES AND THEN OPEN SUCH ENVELOPES IN EACH OTHER'S  PRESENCE.  IF LESSOR AND
LESSEE DO NOT MUTUALLY AGREE UPON THE MARKET RATE WITHIN ONE (1) BUSINESS DAY OF
THE EXCHANGE AND OPENING OF  ENVELOPES,  THEN,  WITHIN TEN (10) BUSINESS DAYS OF
THE  EXCHANGE AND OPENING OF  ENVELOPES,  LESSOR AND LESSEE SHALL AGREE UPON AND
JOINTLY  APPOINT A SINGLE  ARBITRATOR  WHO SHALL BY  PROFESSION BE A REAL ESTATE
BROKER OR AGENT WHO SHALL HAVE BEEN ACTIVE OVER THE FIVE (5) YEAR PERIOD  ENDING
ON THE DATE OF SUCH  APPOINTMENT IN THE LEASING OF COMMERCIAL  OFFICE  BUILDINGS
SIMILAR TO THE PREMISES IN THE GEOGRAPHICAL AREA OF THE PREMISES. NEITHER LESSOR
NOR LESSEE  SHALL  CONSULT WITH SUCH BROKER OR AGENT AS TO HIS OR HER OPINION AS
TO THE MARKET RATE PRIOR TO THE APPOINTMENT. THE DETERMINATION OF THE ARBITRATOR
SHALL BE LIMITED SOLELY TO THE ISSUE OF WHETHER  LESSOR'S OR LESSEE'S  SUBMITTED
MARKET RATE FOR THE  PREMISES  IS THE CLOSEST TO THE ACTUAL  MARKET RATE FOR THE
PREMISES AS DETERMINED BY THE ARBITRATOR,  TAKING INTO ACCOUNT THE  REQUIREMENTS
FOR  DETERMINING  MARKET RATE SET FORTH HEREIN.  SUCH  ARBITRATOR  MAY HOLD SUCH
HEARINGS  AND  REQUIRE  SUCH  BRIEFS  AS THE  ARBITRATOR,  IN  HIS  OR HER  SOLE
DISCRETION, DETERMINES IS NECESSARY. IN ADDITION, LESSOR OR LESSEE MAY SUBMIT TO
THE  ARBITRATOR  WITH A COPY TO THE OTHER PARTY  WITHIN FIVE (5)  BUSINESS  DAYS
AFTER  THE  APPOINTMENT  OF  THE  ARBITRATOR  ANY  MARKET  DATA  AND  ADDITIONAL
INFORMATION  SUCH PARTY DEEMS RELEVANT TO THE  DETERMINATION  OF THE MARKET RATE
("RR DATA"),  AND THE OTHER PARTY MAY SUBMIT A REPLY IN WRITING  WITHIN FIVE (5)
BUSINESS DAYS AFTER RECEIPT OF SUCH RR DATA.

                (ii)         THE ARBITRATOR  SHALL,  WITHIN THIRTY (30) DAYS OF
HIS OR HER  APPOINTMENT,  REACH A DECISION AS TO WHETHER  THE PARTIES  SHALL USE
LESSOR'S OR LESSEE'S SUBMITTED MARKET RATE AND SHALL NOTIFY LESSOR AND LESSEE OF
SUCH DETERMINATION.

                (iii)         THE DECISION OF THE ARBITRATOR SHALL BE FINAL AND
BINDING UPON LESSOR AND LESSEE.

                 (iv)         IF LESSOR AND LESSEE  FAIL TO AGREE UPON AND
APPOINT AN ARBITRATOR,  THEN THE APPOINTMENT OF THE ARBITRATOR  SHALL BE MADE BY
THE  PRESIDING  JUDGE OF THE  ORANGE  COUNTY  SUPERIOR  COURT,  OR, IF HE OR SHE
REFUSES TO ACT, BY ANY JUDGE HAVING JURISDICTION OVER THE PARTIES.

                 (v)           THE COST OF THE ARBITRATION SHALL BE PAID BY THE
PARTY WHOSE MARKET RATE IS NOT SELECTED BY THE ARBITRATOR.

        NOTICE:  BY  INITIALING  IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY
DISPUTE  ARISING OUT OF THE MATTERS  INCLUDED IN THE  "ARBITRATION  OF DISPUTES"
PROVISION  DECIDED BY NEUTRAL  ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU
ARE GIVING UP ANY RIGHTS YOU MIGHT  POSSESS TO HAVE THE DISPUTE  LITIGATED  IN A
COURT OR JURY  TRIAL.  BY  INITIALING  IN THE SPACE BELOW YOU ARE GIVING UP YOUR
JUDICIAL  RIGHTS TO DISCOVERY AND APPEAL,  UNLESS THOSE RIGHTS ARE  SPECIFICALLY
INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION.  IF YOU REFUSE TO SUBMIT TO
ARBITRATION AFTER AGREEING TO THIS PROVISION,  YOU MAY BE COMPELLED TO ARBITRATE
UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO
THIS ARBITRATION PROVISION IS VOLUNTARY.
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        WE HAVE READ AND UNDERSTAND  THE FOREGOING AND AGREE TO SUBMIT  DISPUTES
ARISING OUT OF THE MATTERS INCLUDED IN THE  "ARBITRATION OF DISPUTES"  PROVISION
TO NEUTRAL ARBITRATION.

             /s/        MR                               /s/        RM
               ---------------------                       -------------------
                (Lessor initials)                        (Lessee initials)

        7.        Building  Services.  Notwithstanding  anything to the contrary
contained  in the Lease,  Building  services  shall be provided  Monday  through
Friday from 6:00 a.m.  to 6:00 p.m.  and  Saturdays  from 9:00 a.m. to 1:00 p.m.
Janitorial  services  shall be  provided  Sunday  through  Thursday,  except  on
holidays.  HVAC and other Building services shall not be provided at other times
or on nationally  recognized  holidays.  Nationally  recognized  holidays  shall
include New Years Day,  Martin Luther King Jr. Day,  Presidents'  Day,  Memorial
Day,  Independence  Day, Labor Day,  Thanksgiving  Day and Christmas Day. Lessor
shall use its best  efforts to provide  HVAC to Lessee at times other than those
set forth above subject to the payment by Lessee of the actual cost of providing
HVAC after hours.

         8. Parking.  Lessor shall have the right to gate the parking areas used
by  Lessee.  In  addition,  Lessor  shall  have the right to  require  Lessee to
participate in any reasonable  parking control or security  measures  adopted by
Lessor.  Lessor shall have the right to require the employees of Lessee to use a
parking card or similar  device to gain entry to the parking area and to pay the
reasonable cost of replacing any lost or stolen parking card or similar device.

        9.  Brokers.  Lessee and Lessor each  represent and warrant to the other
that neither have had any dealings with any person, firm or broker in connection
with  the  negotiation  of this  Second  Amendment  and/or  consummation  of the
transaction  contemplated  hereby,  and that no broker or other person,  firm or
entity is entitled to any  commission  or finder's fee in  connection  with this
Second Amendment.  Lessee and Lessor hereby agree to indemnify,  defend, protect
and hold  harmless  the other from and against  liability  for  compensation  or
charges  which may be claimed by any broker,  finder or other  similar  party by
reason of any  dealings  or actions of the  indemnifying  party,  including  any
costs, expenses or attorneys' fees reasonably incurred with respect thereto.

         10.      General.  Except as modified by this Second Amendment,  all
terms and conditions of the Lease shall remain  unmodified and in full force and
effect.  Unless otherwise defined herein,  capitalized terms used in this Second
Amendment shall have the same meaning as capitalized terms used in the Lease.

         11.      Counterparts.  This Second Amendment may be executed in
counterparts. Each counterpart shall be deemed an original, and all counterparts
shall be deemed  the same  instrument  with the same  effect  as if all  parties
hereto had signed the same signature page.

             IN  WITNESS  WHEREOF,   the  parties  hereby  execute  this  Second
Amendment as of the date first written above.

                  LESSOR                                  LESSEE

THE REALTY ASSOCIATES FUND V, L.P.,              IMPAC MORTGAGE HOLDINGS, INC .,
a Delaware limited partnership                       a Maryland corporation
By:  Realty Associates Fund V LLC, a
<PAGE>
                                        7

Massachusetts limited liability company,            By: /s/    Ronald Morrison
general partner                                     --------------------------
                                                    Its: Secretary
                                                    --------------------------

By:  Realty Associates Advisors LLC,
     a Delaware limited liability company,          IMPAC FUNDING CORPORATION
     Manager                                        California corporation

By:  Realty Associates Advisors                     By: /s/    Ronald Morrison
     Trust, a Massachusetts                         --------------------------
     business trust, sole member                    Its: Secretary
                                                    --------------------------

     By: /s/    Michael Ruane
     ------------------------
     Officer

                                        8EX-10.i.(a)

EXHIBIT 10.i.(a)

 

SECOND AMENDMENT AND AGREEMENT

UNDER THE PARTNERSHIP AGREEMENT

 

     This Second Amendment and Agreement Under the Partnership Agreement (this "Agreement") dated as of January 1, 1997 by and among (i) IMC Global Operations Inc., a Delaware corporation ("Operations"), (ii)
Agrico, Limited Partnership (the "FRP Partner"), a Delaware limited partnership of which Freeport-McMoRan Resource Partners, Limited Partnership, a Delaware limited partnership ("FRP"), owns a 99.8% limited partnership interest and Agrico, Inc., a Delaware
corporation ("FRP GPCo"), owns a 0.2% general partnership interest, (iii) IMC-Agrico MP, Inc. (the "Managing Partner"), a Delaware corporation, and (iv) IMC-Agrico Company, a Delaware general partnership (the "Partnership").

 

     WHEREAS, Operations, the FRP Partner and the Managing Partner are parties to an Amended and Restated Partnership Agreement dated as of July 1, 1993, as further amended and restated as of May 26, 1995, as further amended
by the Amendment and Agreement under the Partnership Agreement dated January 23, 1996 (as amended, the "Partnership Agreement");

     WHEREAS, IMC Global Inc., a Delaware corporation ("IMC"), has reorganized its operations into business units and has consolidated the Farmarkets Division and Rainbow Division (each as defined in the Partnership
Agreement) into a single business unit referred to as IMC AgriBusiness ("IMC AgriBusiness");

     WHEREAS, prior to the formation of the IMC AgriBusiness business unit, the Partnership Agreement provided for separate pricing for sales to the Farmarkets Division and the Rainbow Division; and

     WHERAS, Operations, the FRP Partner, the Managing Partner and the Partnership believe that certain amendments to the Partnership Agreement are appropriate due to IMC's reorganization into business units;

     NOW, THEREFORE, in consideration of the covenants and agreements herein set forth and of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

     Section 1. Except as otherwise defined or amended herein, capitalized terms used in this Agreement shall have the meaning ascribed to such terms in Exhibit A to the Partnership Agreement.

     Section 2. Section 9.12 of the Partnership Agreement is hereby amended and restated to read in its entirety as follows:

 

 
     "9.12 Transactions with Affiliates. Except with respect to items (i)(B) and (ii) referred to in the parenthetical phrase in the following sentence, any transaction, agreement arrangement or understanding between or
on behalf of the Partnership, on the one hand, and the Operating Partner or any Affiliate of the Operating Partner, on the other hand, must be on terms no less favorable to the Partnership than those which could be obtained from an independent third party
providing similar goods or services of a like quality. All such transactions, agreements, arrangements and understandings in an aggregate amount in any Fiscal Year in excess of the Base Affiliate Transaction Amount for such Fiscal Year (other than (i)
during any period during which the IMC Partner is Operating Partner, (A) any transactions, agreements, arrangements or understandings with Operations' railcar repair business located at Fitzgerald, Georgia on terms no less favorable to the Partnership
than those which could be obtained from an independent third party providing similar goods or services of like quality and (B) any transactions, agreements, arrangements and understandings with IMC AgriBusiness or International Minerals & Chemical
(Canada) Global Limited ("IMC Canada Ltd." , formerly International Minerals & Chemical Corporation (Canada) Limited) on the terms set forth on Schedule 9.12 and (ii) (A) the Marketing and Administrative Services Agreement, (B) the Leasing Agreement, (C) the
Materials Purchase and Cost Sharing Agreement, (D) the Employee Cost Sharing Agreement and (E) the Limestone Cost Sharing Agreement) shall be subject to the approval of the Policy Committee or the CEOs , as the case may be, in accordance with Section 6.07(a) or (b). Partnership sales to IMC AgriBusiness shall be on the terms set forth in Schedule 9.12. Nothing in Schedule 9.12 shall in any way restrict or affect the right of the Partnership to enter into
transactions with Affiliates of the Non-Operating Partner.

The Operating Partner will, and will cause its affiliates to (i) give the Non-Operating Partner and its auditors and other authorized representatives such access to the offices, properties, books and records of such party, (ii) furnish to the
Non-Operating Partner and its auditors and other authorized representatives such financial and operating data and other information as such Persons may reasonably request and (iii) instruct its employees and auditors to cooperate with the Non-Operating
Partner and its auditors and other authorized representatives, in each case as may be reasonably requested by the Non-Operating Partner to evaluate any transactions, agreements, arrangements or understandings between the Partnership or the Managing
Partner on the one hand, and the Operating Partner and its Affiliates, on the other hand; provided that any investigation pursuant to this Section shall be conducted in such a manner as not to interfere unreasonably with the conduct of business of the
Operating Partner and its Affiliates."

 

Section 3. Schedule 9.12 of the Partnership Agreement is hereby amended and restated to read in its entirety as follows:
     "A. Sales to IMC Canada Ltd. of GTSP, DAP, GMAP 11-52-0, GMAP 10-50-0 and PFS ("Canada Products") shall be invoiced to Operations by IMC-Agrico Company at the estimated IMC-Agrico Company quarterly weighted average
domestic sales realization F.O.B plant, subject to the limitation described in Section D below, ("Quarterly Market Price") for each of Florida, Louisiana, or Offsites, depending upon the source of the Canada Products, less 10%, so long as the aggregate
volume for the Canada Products does not exceed 57,619 P2O5 tons for the fiscal year beginning July 1. Sales of the Canada Products in any annual period in excess of 57,619 P2O5 tons shall be invoiced at 100% of the Quarterly Market Price for Florida, Louisiana or
Offsites, depending upon the source of the product.

     Sales to IMC Canada Ltd. of any products other than those listed above shall be invoiced to Operations by IMC-Agrico Company at the Quarterly Market Price for Florida, Louisiana or Offsites, depending upon the source of
the product.

B.     (i) Sales of amounts set forth below in any Fiscal Year to IMC AgriBusiness of GTSP, DAP, GMAP 11-52-0 and GMAP 10-50-0 (collectively, "Concentrated Phosphates") shall be invoiced to IMC AgriBusiness by IMC-Agrico
Company as follows:
(a)     Up to 300,000 tons in the aggregate of Concentrated Phosphates to be resold in the Southeast United States shall be sold to IMC AgriBusiness at the low price reported in the most recent issue of Green Markets at
the time of shipment, less a discount of 3%.

(b)     Up to 300,000 tons in the aggregate of Concentrated Phosphates to be used in production in the Southeast United States and all sales of Concentrated Phosphates in the Midwest United States shall be sold to IMC
AgriBusiness at the low price reported in the most recent issue of Green Markets at the time of shipment, less a discount of 1.5%.

     Sales of tons of Concentrated Phosphates in excess of the 300,000 tons specified in subparagraph (a) or (b) above in any Fiscal Year shall be made on terms to be mutually agreed between IMC AgriBusiness and IMC-Agrico.

     (ii) Sales of up to 78,000 tons to IMC AgriBusiness of PMAP shall be invoiced to IMC AgriBusiness by IMC-Agrico Company at a price equal to the Partnership's domestic weighted average sales realization F.O.B. plant
(excluding sales to IMC AgriBusiness) less a discount of 18%.

     Sales of tons of PMAP in excess of 78,000 tons in any Fiscal Year shall be made on terms to be mutually agreed between IMC AgriBusiness and IMC-Agrico.

(iii) Sales to IMC AgriBusiness of PFS shall be invoiced to IMC AgriBusiness by IMC-Agrico Company at a price equal to (a) the Partnership's domestic weighted average sales realizations F.O.B. plant (excluding sales to IMC AgriBusiness) for DAP minus
(b) the market cost component of DAP attributable to anhydrous ammonia.

     C. Any transfer of sales responsibility from IMC's wholesale division to IMC AgriBusiness must be approved by the Policy Committee.

     D. Estimated prices invoiced by IMC-Agrico Company to IMC Canada Ltd. shall be adjusted to actual quarterly sales prices at the end of each quarter. Final price adjustments shall be made within 20 days of the end of each
fiscal quarter and within 45 days of the end of each fiscal year."

 

  

     Section 4. Exhibit A to the Partnership Agreement shall be amended to add a definition of "IMC AgriBusiness" as follows: "'IMC AgriBusiness ' shall mean the business of the Farmarkets Division and the Rainbow
Division as operated by IMC and Operations as of the formation of the IMC AgriBusiness business unit."

     Section 5. The parties acknowledge that the amendments provided for herein result in a reduction of the services provided by Operations under the Marketing and Administrative Services Agreement and that the substitution
of IMC AgriBusiness for Operations in this regard is reflected in the discount structure for sales to IMC AgriBusiness. Consequently, the parties agree to reduce the Administrative Fee by $150,000 per year.

     Section 6. This Agreement is solely for the benefit of the parties hereto and no provision of this Agreement shall be deemed to confer upon third parties, any remedy, claim, liability, reimbursement, cause of action or
other right in excess of those existing without reference to this Agreement.

     Section 7. This Agreement may be signed in counterparts. Any single counterpart or set of counterparts signed, in either case, by all the parties hereto shall constitute a full and original agreement for all purposes.

     IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first written above.

	
IMC Global Operations Inc.

	
(formerly IMC Fertilizer, Inc.)

	
 

	
By: /s/ Robert E. Fowler, Jr.

	
Name Printed: Robert E. Fowler, Jr.

	
Title: President

	
 

	
Agrico, Limited Partnership

	
By: Freeport-McMoran Inc., its

	
general partnership

	
 

	
By: /s/ Rene L. Latiolais

	
Name Printed: Rene L. Latiolais

	
Title: President and CEO

	
 

	
IMC-Agrico MP, Inc.

	
By: /s/ Marshall I. Smith

	
Name Printed: Marshall I. Smith

	
Title: Vice President

	
 

	
IMC-Agrico Company

	
By: IMC-Agrico MP, Inc.

	
 

	
By: /s/ Richard H. Block

	
Name Printed: Richard H. Block

	
Title: President

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