Document:

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                                                                   EXHIBIT 10.15

                             AVALON PROPERTIES, INC.

                           1995 ANNUAL INCENTIVE PLAN

         1. PURPOSE. The purpose of the Avalon Properties, Inc. (the "Company")
Annual Incentive Plan (the "Plan ") is to enhance the Company's ability to
attract, motivate, reward, and retain key employees, to strengthen their
commitment to the success of the Company and to align their interests with those
of the Company's shareholders by providing additional compensation to designated
key employees of the Company based on the achievement of performance objectives.
To this end, the Plan provides a means of rewarding participants based on the
performance of the Company.

         2. DEFINITIONS.

         "Award" means a Threshold Award, Target Award or Maximum Award, any of
which may not be a Code Section 163(m) Award, paid pursuant to this Plan.

         "Award Agreement" means the agreement entered into between the Company
and a participant, setting forth the terms and conditions applicable to an award
granted to the participant.

         "Code" means the Internal Revenue Code of 1986, and any successor
statute, and the regulations promulgated thereunder, as it or they may be
amended from time to time.

         "Code Section 162(m) Aware" means an Award intended to satisfy the
requirements of Code Section 162(m) and designated as such in the Award
Agreement.

         "Covered Employee" means a Covered Employee within the meaning of Cede
Section 162(m)(3).

         "FFO" means ______________.

         "Maximum Award" means the amount payable for achieving [150%] of the
Performance Goals for the Performance Period.

         "Performance Criteria" means one or more of the following criteria
selected by, and as further defined by, the Committee each Year to measure
achievement of Performance Goals for a Year:

                  1.       A.      [FFO Growth];

                           B.      [Stock Price]; and

                           C.      [FFO Multiple].

                  2. Any other criteria related to performance of the Company,
         individual performance or any other category of performance selected by
         the Committee.

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         "Performance Goals" are the performance objectives applicable to each
Performance Period with respect to Performance Criteria established by the
Committee for the Company for the purpose of determining whether, and the extent
to which, awards under the Plan will be made for that Performance Period.

         "Performance Period" means each three-year period commencing on January
1 in any Year under the Plan and ending on December 31 in the third succeeding
Year.

         "Target Award" means the amount payable for achieving 100% of the
Performance Goals for the Performance Period.

         "Threshold Award" means the amount payable for achieving [50%] of the
Performance Goals for the Performance Period.

         "Year" means the Company's fiscal year.

         3. ADMINISTRATION. The Plan shall be administered by the Compensation
Committee (the "Committee") of the Company's Board of Directors (the "Board").

         The Committee's determinations under the Plan need not be uniform and
may be made by it selectively among persons who receive, or are eligible to
receive, awards under the Plan, whether or not such persons are similarly
situated. Without limiting the generality of the foregoing, the Committee will
be entitled, among other things, to make non-uniform and selective
determinations and to establish non-uniform and selective Performance Criteria,
Performance Goals, the weightings thereof, and Threshold, Target and Maximum
Awards. Whenever the Plan refers to a determination being made by the Committee,
it shall be deemed to mean a determination by the Committee in its sole
discretion.

         It is the intent of the Company that this Plan and Code Section 162(m)
Awards hereunder satisfy and be interpreted in a manner that satisfy, in the
case of participants who are or may be Covered Employees, the applicable
requirements of Code Section 162(m), including the administration requirement of
Code Section 162(m)(4)(C), so that the Company's tax deduction for remuneration
in respect of such an award for services performed by such Covered Employees is
not disallowed in whole or in part by the operation of such Code section. If any
provision of this Plan would otherwise frustrate or conflict with the intent
expressed in this Article, that provision, to the extent possible, shall be
interpreted and deemed amended so as to avoid such conflict. To the extent of
any remaining irreconcilable conflict with such intent, [such provision shall be
deemed void as applicable to Covered Employees with respect to whom such
conflict exists.] Nothing herein shall be interpreted so as to preclude a
participant who is or may be a Covered Employee from receiving an award that is
not a Code Section 162(m) Award.

         The Committee shall have the discretion, subject to the limitations
described in Article 4 below relating to Code 162(m) Awards, to (a) determine
the Plan participants; (b) determine who will be treated as a Covered Employee;
(c) determine Performance Criteria and Performance Goals for each Performance
Period within the time period required by Code Section 162(m); (d) establish an
Award Schedule; (e) establish performance thresholds for payment of any awards;
(f) determine whether and to what extent the Performance Goals have been met or
exceeded; (g) make discretionary awards as may be appropriate in order to assure
the proper motivation and retention of personnel and attainment of business
goals; (h) to make adjustments to Performance Criteria, Performance Goals and
thresholds; and (i) determine the aggregate number of shares of the

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Company's common stock, par value $.01 per share ( "Common Stock") available for
distribution as awards for each Performance Period. Subject to the provisions of
the Plan, the Committee shall be authorized to interpret the Plan, the make,
amend and rescind such rules as it deems necessary for the proper administration
of the Plan, to make all other determination necessary or advisable for the
administration of the Plan and to correct any defect or supply any omission or
reconcile any inconsistency in the Plan in the manner and to the extent the
Committee deems desirable to carry the Plan into effect. Any action taken or
determination made by the Committee shall be conclusive on all parties.

         4. CODE SECTION 162(m) AWARDS. A participant who is or may be a Covered
Employee may receive a Code Section 162(m) Aware and/or an award that is not a
Code Section 162(m) Award. The Committee will determine who is to be treated as
a Covered Employee, determine who is eligible to be granted Code Section 162(m)
Awards and establish the Target Awards and Award Schedules for Code Section
162(m) Awards. Such determinations will be made in a timely manner, as required
by Code Section 162(m). Each award shall be evidenced by an Award Agreement
setting forth the Award Schedule and such other terms and conditions applicable
to the award, as determined by the Committee, not inconsistent with the terms of
the Plan. Notwithstanding anything else in this Plan to the contrary, the
aggregate maximum amount payable under the Plan to a Covered Employee with
respect to a Performance Period shall be [________]. In the event of any
conflict between an Award Agreement and the Plan, the terms of the Plan shall
govern.

         5. ALL AWARDS. Performance Criteria and Performance Goals will be
established by the Committee for each Performance Period, which, in the case of
Performance Criteria and Performance Goals for Covered Persons, will be
established within the time period required by Code Section 162(m). The
Committee also shall determine the extent to which each Performance Criteria
shall be weighted in determining awards. The Committee will establish an Award
Schedule for each award to each participant setting forth the Threshold, Target
and Maximum Awards for such participant payable at specified levels of
performance, based on the Performance Goal for each of the Performance Criteria
and the weighting established for such criteria. The Committee may vary the
Performance Criteria, performance Goals and weightings from participant to
participant, award to award and from Performance Period to Performance Period.
Notwithstanding the foregoing, the Performance Criteria with respect to a Code
Section 162(m) Award shall be limited to the Performance Criteria set forth in
Article 2.g.1.

         6. ELIGIBLE PERSONS. Any key employee of the Company who the Committee
determines, in its discretion, is responsible for producing profits for the
Company or otherwise has a significant effect on the operations of the Company
shall be eligible to participate in the Plan. Committee members are not eligible
to participate in the Plan. No employee shall have a right (a) to be selected
under the Plan, or (b) having once been selected, to (i) be selected again or
(ii) continue as an employee.

         7. AMOUNT AVAILABLE FOR AWARDS. The amount available for awards (the
"Bonus Pool") for each Performance Period shall be determined by the Committee.
The Bonus Pool created in respect of any fiscal year shall be allocated among
Plan participants in the manner established by the Committee prior to the
beginning of such fiscal year; provided, however, that the Committee in its sole
discretion may reduce at any time, including during or following the fiscal
year, the amount of the bonus payable to any or all participants in respect of
such fiscal year.

         8. DETERMINATION OF AWARDS. The Committee shall select the participants
and determine which participants, if any, are to be treated as Covered Employees
and which awards, if

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any, are to be Code Section 162(m) Awards. Except in the case of Code Section
162(m) Awards, the Committee shall determine the actual award to each
participant for each Performance Period, taking into consideration, as it deems
appropriate, the performance for such Performance Period of the Company in
relation to the Performance Goals theretofore established by the Committee, and
the performance of the respective participants during such Performance Period.
The fact that an employee is selected as a participant for any Performance
Period shall not mean that such employee necessarily will receive an award for
that Performance Period. Except in the case of Code Section 162(m) Awards,
notwithstanding any other provisions of the Plan to the contrary, the Committee
may make discretionary awards as it sees fit under the Plan.

         A Code Section 162(m) Award payable to any Covered Employee may range
from zero (0) to [one hundred and fifty (150)] percent of the Covered Employee's
Target Award, depending upon whether, or the extent to which, the Performance
Goals with respect to such Code Section 162(m) Award have been achieved. Actual
Code Section 162(m) Awards will be derived from the Award Schedule based on the
level of performance achieved. All such determinations regarding the achievement
of Performance Goals and the determination of actual Code Section 162(m) Awards
will be made by the Committee; [provided, however, that with respect to a Code
Section 162(m) Award, the Committee may, in its sole discretion, decrease, but
not increase, the amount of the Award that otherwise would be payable].

         9. DISTRIBUTION OF AWARDS. Awards under the Plan for a particular
Performance Period shall be paid in shares of Common Stock as soon as
practicable after the end of that Performance Period. To the extent that the
Company's tax deduction for remuneration in respect of the payment of an Award
to a Covered Employee would be disallowed under Code Section 162(m) by reason of
the fact that such Covered Employee's applicable employee remuneration, as
defined in Code Section 162(m)(4), either exceeds or, if such Award were paid,
would exceed the $1,000,000 limitation in Code Section 162(m)(1), the Committee
may, in its sole discretion, defer the payment of such Award, but only to the
extent that, and for so long as, the Company's tax deduction in respect of the
payment thereof would be so disallowed; provided that the Committee may,
nevertheless, accelerate the payment of previously deferred Awards if it
determines that the amount of the tax deduction that would be disallowed is not
significant. Deferred Awards will be deemed credited with interest at a rate
determined by the Committee from time to time.

         10. TERMINATION OF EMPLOYMENT. A participant must be actively employed
by the Company on the date his or her award is determined by the Committee (the
"Payment Date") in order to be entitled to payment of any award for that
Performance Period. [In the event active employment of a participant shall be
terminated before the Payment Date for any reason other than discharge for cause
or voluntary resignation, such participant may receive such portion of his or
her award for the Year as may be determined by the Committee.] A participant
discharged for cause shall not be entitled to receive any award for the
Performance Period. A participant who voluntarily resigns prior to the Payment
Date shall not be entitled to receive any award for the Performance Period
unless otherwise determined by the Committee.

         11. MISCELLANEOUS.

                  a. NONASSIGNABILITY. No award will be assignable or
         transferable without the written consent of the Committee in its sole
         discretion, except by will or by the laws of descent and distribution.

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                  b. WITHHOLDING TAXES. Whenever payments under the Plan are to
         be made, the Company will withhold therefrom an amount sufficient to
         satisfy any applicable governmental withholding tax requirements
         related thereto.

                  c. AMENDMENT OR TERMINATION OF THE PLAN. The Board of
         Directors of the Company may at any time amend, suspend or discontinue
         the Plan, in whole or in part. The Committee may at any time alter or
         amend any or all Award Agreements under the Plan to the extent
         permitted by law. No such action may, however, without approval of the
         stockholders of the Company, be effective with respect to any Code
         Section 162(m) Award to any Covered Employee if such approval is
         required by Code Section 162(m)(4)(C).

                  d. OTHER PAYMENTS OR AWARDS. Nothing contained in the Plan
         will be deemed in any way to limit or restrict the Company from making
         any award or payment to any person under any other plan, arrangement or
         understanding, whether now existing or hereafter in effect.

                  e. PAYMENTS TO OTHER PERSONS. If payments are legally required
         to be made to any person other than the person to whom any amount is
         available under the Plan, payments will be made accordingly. Any such
         payment will be a complete discharge of the liability of the Company.

                  f. LIMITS OF LIABILITY.

                           1. Any liability of the Company to any participant
                  with respect to an award shall be based solely upon
                  contractual obligations created by the Plan and the Award
                  Agreement.

                           2. Neither the Company, nor any member of its Board
                  of Directors or the Committee, nor any other person
                  participating in any determination of any question under the
                  Plan, or in the interpretation, administration or application
                  of the Plan, shall have any liability to any party for any
                  action taken or not taken in good faith under the Plan.

                  g. RIGHTS OF EMPLOYEES.

                           1. Status as an employee eligible to receive an award
                  under the Plan shall not be construed as a commitment that any
                  award will be made under this Plan to such employee or to
                  other such employees generally.

                           2. Nothing contained in this Plan or in any Award
                  Agreement (or in any other documents related to this Plan or
                  to any Award Agreement) shall confer upon any employee or
                  participant any right to continue in the employ or other
                  service of the Company or constitute any contract or limit in
                  any way the right of the Company to change such person's
                  compensation or other benefits or to terminate the employment
                  or other service of such person with or without cause.

                  h. SECTION HEADINGS. The section headings contained herein are
         for the purposes of convenience only, and in the event of any conflict,
         the text of the Plan, rather than the section headings, will control.

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                  i. INVALIDITY. If any term or provision contained herein will
         to any extent be invalid or unenforceable, such term or provision will
         be reformed so that it is valid, and such invalidity or
         unenforceability will not affect any other provision or part thereof.

                  j. APPLICABLE LAW. The Plan, the Award Agreements and all
         actions taken hereunder or thereunder shall be governed by, and
         construed in accordance with, the laws of the State of California
         without regard to the conflict of law principles thereof.

                  k. EFFECTIVE DATE. The Plan shall be effective as of
         ___________, 1995.

                  l. SHAREHOLDER APPROVAL. The adoption of this Plan is subject
         to the approval of the shareholders of the Company.

                                       6<PAGE>

                                                                   EXHIBIT 10.23

                PROMISSORY NOTE AND PLEDGE AND SECURITY AGREEMENT

$450,000                                                           June 15, 2000

         FOR VALUE RECEIVED, Samuel B. Fuller, who resides at 1 Searles Road,
Darien, CT 06820 (the "Borrower"), promises to pay to the order of AvalonBay
Communities, Inc., a Maryland corporation, and its successors and assigns at its
address of 2900 Eisenhower Avenue, 3rd Floor, Alexandria, Virginia, 22314 (the
"Lender" or "Company") or such other place as Lender may designate, the amount
of $450,000 on the Maturity Date (as such term is hereinafter defined) and to
pay interest on the unpaid principal amount outstanding hereunder from time to
time on the dates and at the rate or rates hereinafter provided.

         (c) USE OF PROCEEDS.

         The principal amount advanced on the date hereof will be used for
         personal purposes, PROVIDED, HOWEVER, that $79,334 shall be used to
         repay the principal and accrued interest outstanding under the
         promissory notes given by the Borrower to the Lender as set forth on
         EXHIBIT A hereto. Therefore, (i) the Lender shall advance on the date
         hereof the net amount due the Borrower (i.e., $370,666), (ii) the
         Lender shall promptly thereafter return to the Borrower the promissory
         notes set forth on Exhibit A marked "cancelled" or "paid in full", and
         (iii) the principal amount outstanding as of the date hereof shall be
         $450,000.

         (d) INTEREST.

         The principal amount outstanding hereunder from time to time (which
         principal amount shall include monthly compounded interest), to the
         extent not paid (pursuant to Section 4(b)(i) hereof or otherwise),
         shall compound and accrue monthly on the basis of a three hundred and
         sixty-five (365) day year and the number of days actually elapsed at a
         fixed rate (the "Interest Rate") per annum equal to the rate of
         interest announced by the Internal Revenue Service as its "Long Term
         Applicable Federal Rate" of even date herewith. In the event that all
         principal and interest due hereunder are not paid before the fifth
         (5th) anniversary of this Note, then the Note shall become immediately
         due and payable at the option of and upon demand by Lender either upon
         the fifth (5th) anniversary of this Note or any date thereafter (the
         "Maturity Date"). Upon the fifth (5th) anniversary of this Note and
         until the Maturity Date, interest shall continue to accrue at either
         the Interest Rate or, if the prevailing Short Term Applicable Federal
         Rate is greater or less than the Interest Rate by an increment of 4.0%,
         at the prevailing Short Term Applicable Federal Rate. All payments
         shall be applied first to interest and the balance to principal.

(e)      PLEDGE.

         (a)      PLEDGE OF STOCK. To secure payment and performance of all
                  Borrower's obligations hereunder, Borrower hereby pledges as
                  collateral to Lender all shares of common stock of the Company
                  (whether currently vested or still unvested) that were
                  previously granted to the Borrower under the Company's 1994
                  Stock Incentive Plan, as amended (the "Pledged Stock") and
                  agrees that the Company shall have all of the rights of a
                  secured creditor under the Uniform Commercial

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                  Code with respect to the same. For clarity, EXHIBIT B sets
                  forth information regarding the Pledged Stock. Until such time
                  as the principal amount outstanding hereunder is paid in full,
                  Lender shall keep in its possession the Pledged Stock, and
                  shall cause a restrictive legend which precludes active
                  trading of the Pledged Stock without the Company's permission
                  to be placed on same. If the market value of the Company's
                  common stock (AVB; NYSE) declines such that the ratio of the
                  value of the Loan divided by the value of the market value of
                  the Pledged Stock (the "LTV Ratio") exceeds 50%, the Company
                  reserves the right to demand that the Borrower make a cash
                  payment sufficient to bring the LTV Ratio below 50%, or the
                  Company may sell or otherwise dispose of the amount of Pledged
                  Stock needed to bring the LTV Ratio below the level of 50%.

         (b)      PLEDGE OF STOCK OPTIONS. To secure payment and performance of
                  all Borrower's obligations hereunder, Borrower hereby pledges
                  as collateral to Lender all of Borrower's rights in, to and
                  under the employee stock options that were previously granted
                  to the Borrower under the Company's 1994 Stock Incentive Plan,
                  as amended (the "Pledged Options"), whether currently vested
                  or unvested, and agrees that the Company shall have all of the
                  rights of a secured creditor under the Uniform Commercial Code
                  with respect to the same, including the right to all proceeds
                  thereof. For clarity, EXHIBIT C sets forth information
                  regarding the Pledged Options. Borrower agrees that he shall
                  have no right to exercise the Pledged Options or take any
                  other action with respect to the same until the principal
                  amount and accrued interest outstanding hereunder is paid in
                  full.

(f)      PREPAYMENT.

         (a)      OPTIONAL PREPAYMENT. The Borrower may prepay this Note in
                  whole or in part without penalty or premium.

         (b)      MANDATORY PREPAYMENT.

                  (i)      Until such time as the principal amount and accrued
                           interest outstanding hereunder is paid in full,
                           Borrower shall pay or cause to be paid to the Lender
                           all dividends related to the Pledged Stock when such
                           dividends are issued by the Company to its common
                           stockholders.

                  (ii)     The Borrower shall be required to prepay the Loan in
                           its entirety within sixty (60) days following any
                           termination of the Borrower's employment by or with
                           the Company for any reason, including but not limited
                           to death or disability (the "Prepayment Date"). On
                           the Prepayment Date, for any reason, including death
                           or disability, Borrower shall immediately make such
                           prepayment together with interest accrued through the
                           date on which all amounts due hereunder are paid.

(g)      DEFAULT.

         If any payment to be made by Borrower under this Note is not made when
         due (a "Default"), Lender, at its option, may (i) sell or otherwise
         dispose of an amount of Pledged Stock and apply the proceeds to the
         outstanding payment due to Lender and/or (ii) exercise all or a portion
         of the Pledged Options and sell the underlying stock or cancel all or a
         portion of the Pledged Options, in

$450,000 Promissory Note to S. Fuller
June 15, 2000
Page 2

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         either case as described in Section 14 hereof. Borrower agrees to pay
         all charges (including reasonable attorneys' fees) of the Lender in
         connection with the collection and/or enforcement of this Note.

(h)      NOTICES.

         Any notice required or permitted to be delivered hereunder shall be in
         writing and shall be deemed to be delivered on the earlier of (i) the
         date received, or (ii) the date of delivery, refusal, or non-delivery
         indicated on the return receipt, if deposited in a United States Postal
         Service depository, postage prepaid, sent registered or certified mail,
         return receipt requested, addressed to the party to receive the same at
         the address of such party set forth at the beginning of this Note, or
         at such other address as may be designated in a notice delivered or
         mailed as herein provided.

(i)      WAIVER.

         (a)      The failure of the Lender at any time to exercise any option
                  or right hereunder shall not constitute a waiver of the
                  Lender's right to exercise such option or right at any other
                  time.

         (b)      Borrower and all endorsers and guarantors of the Note hereby
                  jointly and severally waive presentment, demand, notice,
                  protest and all other suretyship defenses generally and agree
                  that (i) any renewal, extension or postponement of the time of
                  payment or any other indulgence, (ii) any modification,
                  supplement or alteration of any of the Borrower's obligations
                  undertaken in connection with this Note, or (iii) any
                  substitution, exchange or release of collateral or the
                  addition or release of any person or entity primarily or
                  secondarily liable, may be effected without notice to Borrower
                  or any endorser or guarantor or Borrower's obligations, and
                  without releasing Borrower or such endorser or guarantor from
                  any liability hereunder.

(j)      MODIFICATION.

         This Note may not be modified, altered, or amended in any manner or
         form except by an agreement in writing, executed by a duly authorized
         officer of Lender and the Borrower, which writing shall make specific
         reference hereto.

(k)      TRANSFER BY BORROWER.

         Borrower will not sell, assign, transfer or otherwise dispose of,
         directly or indirectly, nor grant any option with respect to, or pledge
         or grant any security interest in or otherwise encumber any of the
         Pledged Stock or the Pledged Options, any interest therein, except for
         the pledge provided for in this Note.

(l)      FURTHER ASSURANCES.

         Borrower will from time to time execute and deliver to the Company all
         such other and further instruments and documents and take or cause to
         be taken all such other and further actions as the Company may
         reasonably request in order to effect and confirm more securely in the
         Company all rights contemplated in this Note and to maintain at all
         times the perfection and first priority of the

$450,000 Promissory Note to S. Fuller
June 15, 2000
Page 3

<PAGE>

         security interest herein granted in the Pledged Stock, including
         without limitation, any UCC financing statements, reports, statements
         or other documents required by any applicable law, rule or regulation.
         A carbon photocopy or other reproduction of this note may be filed as a
         financing statement.

(m)      COSTS.

         Borrower agrees to promptly reimburse the Company for actual reasonable
         out-of-pocket expenses, including, without limitation, reasonable
         counsel fees and disbursements, incurred by the Company in connection
         with the administration and enforcement of this Note.

(n)      FULL RECOURSE.

         The Company's recourse against the Borrower under this Note for
         satisfaction of the Loan and all other amounts due hereunder shall be
         full recourse to the Borrower and all of Borrower's assets, and Lender
         shall have no obligation to take any action against the collateral
         granted hereunder prior to proceeding directly against Borrower.

13.      USURY, ETC.

         All agreements between the Borrower and the holder of this Note are
         hereby expressly limited so that in no contingency or event whatsoever,
         whether by reason of acceleration or maturity of the indebtedness or
         otherwise, shall the amount paid or agreed to be paid to the holder for
         the use, forbearance or detention of the indebtedness evidenced hereby
         exceed the maximum amount which the holder is permitted to receive
         under applicable law. If, from any circumstances whatsoever,
         fulfillment of any provision of this Note, at the time performance of
         such provision shall be due, shall involve exceeding such amount, then
         the obligation to be fulfilled shall automatically be reduced to the
         limit of such maximum amount, and if from any circumstances the holder
         should ever receive as interest an amount which would exceed such
         maximum amount, such amount which would be excessive interest shall be
         applied to the reduction of the principal balance evidenced hereby and
         not to the payment of interest. As used herein, the term "applicable
         law" shall mean the law in effect as of the date hereof; provided,
         however, that in the event that there is a change in the law which
         results in a higher permissible rate of interest, then this Note shall
         be governed by such new law as of its effective date. This provision
         shall control every other provision of this Note.

14.      VALUATION; MANNER OF DISPOSITION; CANCELLATION OF STOCK OPTIONS;
         SECURITIES LAWS.

         (a)      The Borrower acknowledges and agrees that the Company may not
                  be able to or may not desire to effect a public sale of the
                  Pledged Stock and, accordingly, agrees that in the event of
                  any sale, collection, realization or other disposition of or
                  upon the Pledged Stock by the Company, in lieu of such public
                  sale, the Company may transfer all or any portion of the
                  Pledged Stock to itself and apply the value of such shares (at
                  a price per share equal to the closing sale reported on the
                  New York Stock Exchange (the "NYSE") on the date of such
                  action by the Company or, if the date of such action is not a
                  day on which the NYSE is open or the Company's stock is not

$450,000 Promissory Note to S. Fuller
June 15, 2000
Page 4

<PAGE>

                  traded on the NYSE on such date, the preceding business day or
                  trading date) to the amounts due under or in connection with
                  this Note.

         (b)      The Borrower acknowledges and agrees that, in the event of a
                  Default hereunder, the Company may cause the Pledged Options
                  to be exercised and the underlying common stock to be sold.
                  The Borrower acknowledges and agrees that, in lieu of such
                  exercise or sale, the Company may cancel all or a portion of
                  the Pledged Options and credit the Borrower with repayment of
                  an amount of principal and accrued interest equal to the
                  difference between (i) the product of (x) the number of
                  options cancelled and (y) the then value of the shares of
                  common stock underlying such options (such shares to be valued
                  at a price per share equal to the closing sale reported on the
                  NYSE on the date of cancellation of the options) less (ii) the
                  aggregate exercise price of the options so cancelled.

         (c)      The Borrower recognizes that a sale or other disposition of
                  the Pledged Stock or the Pledged Options can have adverse
                  consequences to the Borrower under Section 16 of the
                  Securities Exchange Act of 1934 or other securities laws. The
                  Lender shall in no event be liable for any such adverse
                  consequence and shall have no obligation to consider such
                  consequences when proceeding against the collateral after a
                  Default.

15.      CHOICE OF LAW.

         This Note shall be governed by, construed, and enforced in accordance
         with the laws of the State of Connecticut.

16.      POWER OF ATTORNEY.

         The Borrower hereby grants the Company a power of attorney to take any
         and all actions in connection with (i) any disposition or forfeiture of
         the Pledged Stock upon a Default, or (ii) any exercise of the Pledged
         Options upon a Default and disposition of the shares of common stock
         received thereby or (iii) any forfeiture of the Pledged Options upon a
         Default.

This Note shall have the effect of an instrument under seal.

                                        Borower:    \s\ SAMUEL B. FULLER
                                                 ----------------------------
                                                      Samuel B. Fuller

                                        Witness:     \s\ JOANNE LOCKRIDGE
                                                 ----------------------------

$450,000 Promissory Note to S. Fuller
June 15, 2000
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