Document:

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                                                                   Exhibit 10.15

                                SECOND AMENDMENT
                                       TO
                              EMPLOYMENT AGREEMENT

      This amendment (the "Amendment") is made by and between Putnam
Investments, L.L.C. ("Putnam") and Lawrence J. Lasser (the "Executive") to amend
the employment agreement between the Executive and Putnam, dated December 31,
1997 and amended on January 1, 2001 (the "Agreement"). Except as may be
otherwise herein modified, all provisions of the Agreement shall continue in
full force and effect. Any capitalized term not defined in this Amendment shall
have the meaning ascribed to it in the Agreement. In consideration of the
covenants and agreements set forth herein, Putnam hereby agrees that the
Executive shall continue to be employed by Putnam, and the Executive hereby
agrees to continue his employment with Putnam, on the terms and conditions
contained in the Agreement, as amended hereby.

      1.    The first sentence of Paragraph 1 of the Agreement is hereby amended
by substituting "December 31, 2005" for "December 31, 2001" therein.

      2.    The first sentence of paragraph 2.B of the Agreement is hereby
amended by the substitution of "year 2003 annual meeting" for the words "year
2000 annual meeting" therein.

      3.    Paragraph 3.B of the Agreement is hereby amended by the addition of
the following language immediately after the second sentence thereof:

      "The intent is to provide an Annual Bonus reflecting the Compensation
      Committee's assessment, based on the recommendation of the Chief Executive
      Officer of MMC, of your performance, which will be the sum of (a) an
      amount ranging from 80% to 120% of two times the bonus attributable to a
      Pre-Assigned Partnership Interest (as defined in the Partners Plan) in the
      Putnam Investments, L.L.C. Partners Incentive Compensation Plan (the
      "Partners Plan") of a 5% Partner (as defined in paragraph 4.E) and (b)
      bonus attributable to one unit under the Putnam Investments L.L.C.
      Operating Heads Incentive Compensation Plan (the "Operating Heads
      Agreement")."

      4.    The fourth sentence of paragraph 3.B of the Agreement is hereby
restated in its entirety to read as follows:

      "The Annual Bonus shall be paid in cash in the first quarter of the
calendar year following the year to which such Annual Bonus shall relate."

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      5.    The third sentence of paragraph 3.D (i) is hereby amended by the
addition of the following language immediately after the words "Fair Market
Value" therein:

      "(as used here and, unless otherwise provided herein, as used hereafter,
Fair Market Value with respect to a Class B Share shall be as defined in the
Putnam Investments, L.L.C. Equity Partnership Plan (the "Equity Partnership
Plan"))"

      6.    Paragraph 3.D of the Agreement is hereby amended by the addition of
new paragraphs, 3.D(vii), (viii), (ix) and (x) which shall read as follows:

      "(vii) NEW PUTNAM STOCK OPTIONS. Effective as of March 15, 2001, Putnam
Investments Trust, a Massachusetts business trust (the "Business Trust") shall
grant to you a nonqualified option (the "Fifth Putnam Option") to purchase
50,000 Class B Shares. You shall also receive, in March 2002, a nonqualified
option (the "Sixth Putnam Option", and, together with the Fifth Putnam Option,
the "New Putnam Options") to purchase an additional 50,000 Class B Shares. The
per share exercise price shall be equal to the Fair Market Value of a Class B
Share as of the date of the applicable grant. Each New Putnam Option shall
expire on the tenth anniversary of the date of grant of such option. The Fifth
Putnam Option shall become exercisable with respect to 25% of the Class B Shares
subject thereto on March 10 in each of 2002, 2003, 2004 and 2005. The Sixth
Putnam Option shall become exercisable with respect to 25% of the Class B Shares
subject thereto on March 10 in each of 2003, 2004, 2005 and 2006. In all other
respects, the New Putnam Options granted pursuant to the Amendment shall be
treated as if they were subject to the terms and conditions of the Equity
Partnership Plan and as if such New Putnam Options had been granted thereunder,
except that (a) any amounts paid to you with respect to the exercise of any and
all rights or obligations of Putnam or the Business Trust pursuant to the Equity
Partnership Plan (including with respect to cancellation, forfeiture, purchase,
sale, exchange, conversion or similar events affecting New Putnam Options or
Class B Shares acquired by exercise of New Putnam Options) shall be paid to you
as soon as practicable following the Payment Date as defined in paragraph
3.D(iii) and (b) the New Putnam Options shall be subject to subparagraph (b),
(c), (e) and the next to last sentence of paragraph 3.D(i) hereof as if such New
Putnam Options were Putnam Options granted under paragraph 3.D(i) (except that
subparagraphs (b) and (e) thereof shall be read as if the words "December 31,
2005" replaced the words "December 31, 2001" therein). Furthermore,
notwithstanding anything in the Equity Partnership Plan to the contrary, Putnam,
the Business Trust

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and MMC, as applicable, may exercise the rights set forth in the first sentence
of Section 8(b)(ii) of the Equity Partnership Plan, to cancel New Putnam Options
or Class B Shares acquired by exercise of the New Putnam Options only if all
options granted under the Equity Partnership Plan or all Class B Shares, as
applicable, are also cancelled. Each New Putnam Option granted to you shall be
evidenced by an Award Agreement substantially in the form of the award agreement
attached hereto as Exhibit D, or with respect to the Sixth Putnam Option, in the
form then used for option grants to Putnam senior executives. Notwithstanding
anything herein to the contrary, the Sixth Putnam Option may be granted subject
to the terms and conditions of a successor plan to the Equity Partnership Plan
and relate to a different class of Putnam Common Shares (in each case, to the
same extent as applies to awards then being made to other Putnam senior
executives).

      (viii) NEW MMC STOCK OPTIONS. Effective as of March 15, 2001, the
Compensation Committee shall grant to you, pursuant to and subject to the terms
of the MMC 2000 Senior Executive Incentive and Stock Award Plan (such plan, or
any amended or successor plan, the "2000 Plan") a nonqualified option (the
"Second MMC Option") to purchase 50,000 MMC Shares at an exercise price per
share equal to the Fair Market Value (for all purposes hereunder with respect to
the New MMC Options (as defined below), Fair Market Value shall be as defined in
the 2000 Plan) of an MMC Share as of such date, which shall expire on March 14,
2011 and shall vest with respect to 25% of the shares subject thereto on each
anniversary of the date of grant in each of 2002, 2003, 2004 and 2005. You shall
also receive, in each of March 2002, March 2003 and March 2004, pursuant to and
subject to the terms of the 2000 Plan, a nonqualified option (collectively with
the Second MMC Option, the "New MMC Options") to purchase 50,000 MMC Shares at
an exercise price per share equal to the Fair Market Value of an MMC Share as of
the applicable date of grant, which shall expire on the day preceding the tenth
anniversary of the applicable date of grant and shall vest with respect to 25%
of the shares subject thereto per year on each anniversary of the applicable
date of grant. In all other respects, unless otherwise noted herein, each New
MMC Option shall be treated as an MMC Option granted pursuant to Paragraph
3.D(ii) hereof. Each New MMC Option granted to you shall be evidenced by an
Award Agreement substantially in the form of the award agreement attached as
Exhibit E.

      (ix)  NEW PUTNAM RESTRICTED STOCK UNITS. Effective as of March 15, 2001,
the Business Trust shall grant to you 100,000 Putnam Restricted Stock Units (the
"New Putnam Restricted Stock Units"). The New Putnam Restricted Stock Units
shall vest at

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the rate of 25% per year on March 10 in each of 2002, 2003, 2004 and 2005 and
shall otherwise be treated as if they were subject to the terms and conditions
of the Equity Partnership Plan applicable to the shares of Restricted Stock
awarded under the Equity Partnership Plan except that any amounts paid to you
with respect to the exercise of any and all rights or obligations of Putnam or
the Business Trust pursuant to the Equity Partnership Plan (including with
respect to cancellation, forfeiture, purchase, sale, exchange, conversion, or
similar events affecting New Putnam Restricted Stock Units or Class B Shares)
shall be paid to you as soon as practicable following the Payment Date. Each
individual New Putnam Restricted Stock Unit shall represent and shall have a
Fair Market Value equal to the Fair Market Value of one Class B Share. In
addition, notwithstanding anything to the contrary contained in the Equity
Partnership Plan, the New Putnam Restricted Stock Units shall be subject to the
terms of subparagraphs (a), (b), (e), (f) and the first sentence of the next to
last paragraph of paragraph 3.D(iii) hereof as if such New Putnam Restricted
Stock Units were Putnam Restricted Stock Units granted pursuant to paragraph
3.D(iii) hereof (except that subparagraph (f) thereof shall be read as if the
words "December 31, 2005" replaced the words "December 31, 2001" therein).
Notwithstanding anything in the Equity Partnership Plan to the contrary, Putnam,
the Business Trust and MMC, as applicable, may exercise the rights, set forth in
the first sentence of Section 8(b)(ii) of the Equity Partnership Plan, to cancel
the New Putnam Restricted Stock Units, or Class B Shares acquired by payment
with respect to New Putnam Restricted Stock Units, only if all restricted stock
granted under the Equity Partnership Plan, or all Class B Shares, as applicable,
are also cancelled. The New Putnam Restricted Stock Units granted to you shall
be evidenced by an Award Agreement substantially in the form of the award
agreement attached hereto as Exhibit D.

            (x) The Putnam Class B Shares related to the New Putnam Stock
Options and the New Putnam Restricted Stock Units shall reduce the four million
additional Putnam Class B Shares authorized by MMC's Board of Directors in
October of 2000 to be sold or granted to Putnam participants under plans or
related agreements approved by the Compensation Committee.

7. Paragraph 3.D(v) of the Agreement is hereby amended by the insertion of the
following words between the words "Restricted Stock Units" and "referred" in the
first sentence thereof:

      "(but not with respect to the New Putnam Options or the New Putnam
Restricted Stock Units)."

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      8.    Paragraph 3 of the Agreement is hereby amended by the addition of
the following new paragraph 3.F, with the existing paragraphs 3.F, 3.G and 3.H
being re-designated as paragraphs 3.G, 3.H and 3.I respectively and existing
cross references to such paragraphs being re-designated accordingly.

      "F.   PUTNAM FUND PAYMENT. You are hereby granted a deferred special
payment in an amount equal to the Fair Market Value (as defined in the 2000
Plan) as of February 15, 2001, of 150,000 MMC Shares. Such amount shall be
deemed invested, pursuant to your investment direction, among the various Putnam
funds. On the later of (a) December 31, 2005 and (b) the Payment Date, you shall
be entitled to receive in cash the amount referenced in the immediately
preceding sentence, plus the earnings, if any, net of any losses, if any, of the
deemed investment thereof (such total, the "Putnam Fund Payment"). The Putnam
Fund Payment shall vest on December 31, 2005. If your employment with Putnam is
terminated by Putnam or MMC (acting through its Compensation Committee) pursuant
to paragraph 4.A of this Agreement or by you prior to December 31, 2005 for any
reason other than pursuant to paragraph 4.E of this Agreement, then you shall
forfeit all of the Putnam Fund Payment granted pursuant to this paragraph 3.F.
If your employment with Putnam is terminated in accordance with paragraphs 4.B,
4.C, 4.D or 4.E of this Agreement prior to December 31, 2005, then the Putnam
Fund Payment granted to you pursuant to this paragraph 3.F shall vest as of the
date of such termination and shall be paid to you on the later of (a) the date
of such termination or (b) the Payment Date."

      9.    Paragraph 3 of the Agreement is hereby amended by the addition of a
new paragraph 3.J which shall read as follows:

      "J.   SPLIT DOLLAR LIFE INSURANCE. In accordance with the Compensation
Committee approval of September 16, 1999, you were permitted to participate in
the Putnam Estate Enhancement Program, pursuant to which you have previously
chosen to forego $2 million with respect to a certain Annual Bonus in exchange
for two (2) so called "split dollar" life insurance policies of $1 million each.
You are hereby permitted to elect to forego an additional $2 million in the
aggregate with respect to future Annual Bonuses as a premium for additional
split dollar life insurance policies under such program."

      10.   Paragraph 4.A is hereby amended by the addition of ", the 2000 Plan"
after each occurrence of the words "1997 Plan" therein.

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      11.   Paragraph 4.A is hereby amended by the addition of the following
sentence immediately after the last sentence thereof:

      "Notwithstanding anything herein to the contrary, after December 31, 2001,
the forfeiture provisions contained in this paragraph 4.A shall be of no further
force and effect with respect to the Putnam Options, the MMC Stock Option,
Putnam Restricted Stock Units, MMC Restricted Stock Units or any Class B Shares
which were issued in settlement of such awards; provided, however that such
provisions shall continue to be applicable to the New Putnam Options, New MMC
Options and New Putnam Restricted Stock Units."

      12.   Paragraph 4.D of the Agreement is hereby amended by substituting
"December 31, 2005" for the words "December 31, 2001" therein.

      13.   The third sentence of paragraph 4.E of the Agreement is hereby
restated in its entirety to read as follows:

      "For purposes of this Agreement, the phrase "Good Cause" shall mean (a) a
breach by MMC, the Business Trust or Putnam of a material term of this Agreement
which is not cured within 30 business days from receipt of written notice
thereof from you, (b) relocation of Putnam's executive offices outside of the
Boston area, (c) reassignment of you to a location outside of the Boston area,
(d) failure to pay you an annual bonus, as contemplated by paragraph 3.B above,
with respect to each full year of your employment during the term commencing
with year 2001 of at least the sum (such sum, the "Minimum Amount") of (1) two
times an amount equal to a bonus attributable to a 5% Pre-Assigned Partnership
Interest (as such term is defined in the Partners Plan) under the Partners Plan
(a participant with such 5% Pre-Assigned Partnership Interest, a "5% Partner)
for a 5% Partner with a Base Partnership Percentage (as such term is defined in
the Partners Plan) of 80%, plus (ii) the bonus with respect to such year
determined under the Putnam Investments, L.L.C. Operating Heads Incentive
Compensation Plan with respect to one Unit (as defined in such plan), (e) a
Change in Control of MMC or a Change in Control of Putnam, each as defined
below, or (f) failure to grant to you the New Putnam Options, the New MMC
Options or the New Putnam Restricted Stock Units."

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      14.   The first sentence of paragraph 4.F is hereby amended by the
addition of ", the New MMC Options, Putnam Fund Payment" immediately after the
words "the MMC Option" therein.

      15.   Paragraph 4.F is hereby amended by the addition of the following
immediately at the end thereof:

      "Notwithstanding anything herein to the contrary, no Gross-Up Payments
shall be payable to you with respect to any Excise Tax attributable to the New
Putnam Options or the New Putnam Restricted Stock Units."

      16.   Paragraphs 7.A and 7.B of the Agreement are hereby amended by
substituting "68" for each occurrence of "65" therein.

      17.   The third from the last sentence of paragraph 7.A shall be amended
by the addition of "and the Putnam Fund Payment" after "Special Retirement
Benefit", by the addition of "and New Putnam Options" after each occurrence of
"Putnam Options" and by the addition of "and New Putnam Restricted Stock Units"
after each occurrence of "Putnam Restricted Stock Units" therein.

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IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed
as of this 22nd day of March, 2001.

                              PUTNAM INVESTMENTS, L.L.C.
                              By:  PUTNAM INVESTMENTS TRUST,
                                      its sole member

                               By:
                                  --------------------------
                                     J.W. Greenberg
                                     Trustee

Agreed and Accepted:

---------------------
Lawrence J. Lasser

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       The Business Trust hereby agrees to perform any and all obligations and
duties owed to the Executive pursuant to paragraph 3D(vii) and 3D(ix) of the
Agreement, and the Executive agrees to perform any and all obligations owed to
the Business Trust by the Executive pursuant to the terms and conditions of the
Agreement and acknowledges all of the rights of the Business Trust under the
Agreement.

       Notice is hereby given that the shareholders of the Business Trust shall
not be personally liable for any claims arising from obligations of the Business
Trust under the Agreement and the Executive shall look solely to the Trust
Estate (as such term is defined in the Declaration of Trust for the Business
Trust) for the payment of any claim arising from obligations of the Business
Trust under the Agreement.

                              PUTNAM INVESTMENTS TRUST

                               By:
                                  --------------------------
                                      J.W. Greenberg
                                      Trustee
Agreed and Accepted:

---------------------
Lawrence J. Lasser<PAGE>

                                                                   Exhibit 10.16

                               AMENDED & RESTATED
                                MMC CAPITAL, INC.
                            LONG TERM INCENTIVE PLAN
                           DATED AS OF MARCH 19, 2001

I.       STATEMENT OF PURPOSE

         The purpose of the MMC Capital, Inc. Long Term Incentive Plan (the
         "LTIP") is to attract, retain and motivate key employees and
         consultants of MMC Capital, Inc. ("MMC Capital") and affiliates of MMC
         Capital to originate, structure and manage insurance and related
         industry investments by allowing them to participate in the
         profitability of such investments.

II.      CERTAIN DEFINITIONS

         (a)      CAUSE shall mean "Cause" as defined in a Participant's
                  employment, consulting or other written agreement with MMC or
                  MMC Capital or, in the absence of any such agreement, (1) the
                  conviction for any felony, (2) willful malfeasance or gross
                  negligence in the performance of duties, (3) misconduct that
                  causes actual material injury to MMC or any of its affiliates,
                  or (4) prior to a Change in Control of MMC or Change in
                  Control of MMC Capital (in each case, as defined in Paragraphs
                  VI(b) and (c)) , the continued and substantial failure to
                  perform duties consistent with a Participant's position and
                  responsibilities within 60 days after notice of such failure
                  being given.

         (b)      DISABILITY shall mean total disability as defined in a
                  Participant's employment, consulting or other written
                  agreement with MMC or MMC Capital or, in the absence of such
                  an agreement, as defined in the MMC benefits program.

         (c)      EXCEPTION GRANT PAYMENT shall mean an additional Grant
                  Payment, which is not otherwise provided for in the applicable
                  Grant.

         (d)      GRANT shall mean the right to receive a payment of an amount
                  determined by reference to one or more Incentive Pools.
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         (e)      FEE INCOME shall mean fees received by MMC Capital, including
                  investment banking fees, monitoring fees, break-up fees,
                  directors fees, advisory fees and other similar fees, less the
                  amount of any offsets required for the benefit of partnerships
                  managed by MMC Capital relating to the receipt of such fees
                  and net of any unreimbursed expenses incurred by MMC Capital
                  in earning such fees (e.g., travel expenses, outside counsel
                  fees, auditors and actuaries fees, etc.), but excluding any
                  fees paid by affiliates of MMC Capital (i.e., MMC companies
                  not portfolio companies) unless otherwise approved by MMC.

         (f)      GRANT PAYMENT shall mean a payment made with respect to a
                  Grant.

         (g)      GROSS PROFITS shall mean, with respect to each MMRCH
                  Designated Investment (as defined in Paragraph II(h) (2)
                  (aa)), the sum (whether positive or negative) of all: (1)
                  pre-tax gains realized upon the sale of such investment, (2)
                  pre-tax distributions of dividends, interest, or other
                  distributions (including break-up fees) received in respect of
                  the investment except to the extent included in the Fee Income
                  Incentive Pool, (3) pre-tax losses realized upon the sale of
                  such investment, and (4) pre-tax write-downs of such
                  investment (decreases in value which have been determined to
                  be other than temporary in accordance with Generally Accepted
                  Accounting Principles as reflected in the consolidated
                  financial statements of Marsh & McLennan Risk Capital
                  Holdings, Ltd. ("MMRCH")). In the event a MMRCH Designated
                  Investment is held indefinitely and determined to be a
                  strategic investment, as agreed upon by the LTIP Committee and
                  MMC, the applicable Valuation Date and Gross Profits shall be
                  determined, in good faith, by the LTIP Committee and MMC.

         (h)      INCENTIVE POOL shall mean the aggregate amounts realized in
                  cash and, accordingly, available for distribution as Grant
                  Payments and Exception Grant Payments to Participants,
                  determined separately solely for The Trident Partnership,

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                  L.P. ("Trident"), MMRCH, Risk Capital Reinsurance Company
                  ("RCRe") and any Fee Income received by MMC Capital, as
                  follows:

                  (1)      Trident Incentive Pool -50% of the Trident Carry for
                           the applicable Realization Period;

                  (2)      MMRCH Incentive Pool -the sum of (aa) 50% of 20%
                           (i.e., 10%) of Gross Profits realized in cash by
                           MMRCH during the applicable Realization Period with
                           respect to the investments to be set forth in a
                           schedule of the MMRCH Incentive Pool, as amended from
                           time to time (the "MMRCH Designated Investments");
                           and (bb) 50% of pre-tax gains realized by MMRCH for
                           the applicable Realization Period from (i) the sale
                           of shares of common stock, $.01 par value per share,
                           of Arch Capital Holdings, Inc. ("Arch Capital
                           Holdings"), received upon the exercise of any Class A
                           or Class B warrants, in each case to be set forth in
                           a schedule of the MMRCH Incentive Pool, owned by
                           MMRCH (the cost basis of the Class B warrants shall
                           be $7.007 per share plus the exercise price per share
                           of such warrants) and (ii) the sale of such Class A
                           or Class B warrants; and

                  (3)      RCRe Fee Incentive Pool -50% of the excess of (A)
                           fees received by MMC Capital during the applicable
                           Realization Period pursuant to the Investment
                           Advisory Agreement dated September 19, 1995, between
                           RCRe and MMC Capital (the "7.5% Fees"), with respect
                           to investments made during the term of such
                           agreement, to be set forth in a schedule of the RCRe
                           Fee Incentive Pool, as amended from time to, time
                           (the "RCRe Designated Investments"), over (B) any
                           amounts payable to Robert Clements with respect to
                           1998 and 2000 with respect to such 7.5% Fees under
                           the Amended and Restated Employment Agreement,
                           effective as of December 31, 1993, between MMC
                           Capital and Robert Clements, as such agreement may be
                           amended from time to time.

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                  (4)      Fee Income Incentive Pool - 50% of Fee Income
                           received by MMC Capital during the applicable
                           Realization Period arising out of (i) the other
                           incentive pools described herein, (ii) other existing
                           or new investments managed by MMC Capital, or (iii)
                           other fees (net of any offsets deemed appropriate) as
                           might be considered and approved by MMC.

                  The computation of amounts available for distribution with
                  respect to an Incentive Pool as of the applicable Realization
                  Date (or Valuation Date, if earlier) shall be made available
                  by MMC Capital to MMC for review and, if deemed appropriate,
                  confirmation by MMC's independent auditors.

         (i)      LTIP Committee shall mean a committee with authority to
                  administer the LTIP, initially comprised of the following
                  individuals: Jeffrey W. Greenberg, Robert Clements, Stephen
                  Friedman and Charles A. Davis. The appointment of any
                  additional or successor members to the LTIP Committee shall be
                  subject to approval by the MMC Compensation Committee.
                  Notwithstanding the foregoing, the MMC Compensation Committee
                  shall serve as the LTIP Committee with respect to employees or
                  consultants of MMC Capital who either (1) are members of the
                  MMC Partners Group or (2) are or were members of the LTIP
                  Committee. In the event of a deadlock on any matter submitted
                  to the LTIP Committee, the composition of the LTIP Committee
                  will be expanded (solely for purposes of resolving such
                  matter) by the appointment of an additional member selected by
                  MMC.

         (j)      MMC shall mean Marsh & McLennan Companies, Inc.

         (k)      MMC COMPENSATION COMMITTEE shall mean the Compensation
                  Committee of the Board of Directors of MMC.

         (l)      MMC PARTNERS GROUP shall mean the Partners Group of MMC, as
                  then constituted.

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         (m)      PARTICIPANT shall mean an employee or consultant of MMC
                  Capital selected by the LTIP Committee for participation in
                  the LTIP.

         (n)      REALIZATION DATE shall mean the end of each calendar quarter
                  during which there occurred an increase in amounts realized in
                  cash with respect to (or, in the discretion of the LTIP
                  Committee, otherwise distributable from) an Incentive Pool, or
                  any earlier date selected by the LTIP Committee within such
                  calendar quarter.

         (o)      REALIZATION PERIOD shall mean a period commencing on the later
                  of the next preceding Realization Date, and, with respect to
                  the Trident Incentive Pool, the date of formation of Trident
                  (i.e., 11/93); with respect to the MMRCH Incentive Pool, the
                  date indicated on the schedule of the MMRCH Incentive Pool
                  with respect to the applicable MMRCH Designated Investment or
                  the date of formation of Risk Capital Holdings (i.e., 3/95),
                  as applicable; and with respect to the RCRe Fee Incentive
                  Pool, the date indicated on the schedule of the RCRe Fee
                  Incentive Pool with respect to the applicable RCRe Designated
                  Investment, and ending on any Realization Date or Valuation
                  Date, as applicable; and with respect to the Fee Income
                  Incentive Pool, January 1, 2000.

         (p)      RETIREMENT shall mean "Retirement" as defined in a
                  Participant's employment, consulting or other written
                  agreement with MMC or MMC Capital or, in the absence of such
                  an agreement, a termination of a Participant's employment or
                  service following the date the Participant attains age 65 or
                  higher with five or more years of service with MMC or any of
                  its affiliates or, subject to approval by the board of
                  directors of MMC Capital, an earlier termination of
                  employment.

         (q)      TRIDENT CARRY shall mean the sum of:

                  (1)      the advisor's fee received by MMC Capital from
                           Trident; and

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                  (2)      special limited partner distributions to MMRCH (after
                           giving effect to any repayment to Trident resulting
                           from a "claw-back").

         (r)      VALUATION DATE with respect to an investment shall mean the
                  earliest of (1) with respect to a MMRCH Designated Investment
                  only, the tenth anniversary of the date such investment was
                  originally made, (2) the fifth anniversary of the date of
                  termination of MMC Capital as investment advisor with respect
                  to such investment, or (3) the fifth anniversary of the date
                  of termination of the LTIP.

III.     GRANTS

         (a)      The original Grant (the "Original Grant") to each Participant
                  shall be determined by reference to some or all of the
                  following: a subset of the Trident Incentive Pool, which for
                  this purpose may also include limited partner distributions to
                  MMRCH in excess of the cumulative preferential return,
                  determined pursuant to the applicable agreement (after giving
                  effect to any repayment to Trident resulting from a
                  "clawback") (a "Trident Pool Subset"), certain MMRCH
                  Designated Investments, and certain RCRe Designated
                  Investments, in each case stated as a percentage (the
                  "Individual Carry Percentage"). Each Participant may be
                  awarded additional Grants with respect to existing Incentive
                  Pools or new investments in such Incentive Pools.

         (b)      The sum of all Grant Payments and Exception Grant Payments
                  with respect to the Grants relating to a particular Incentive
                  Pool shall not exceed the aggregate amount available for
                  distribution with respect to such Incentive Pool.

         (c)      Unless otherwise provided in a Participant's employment,
                  consulting or other written agreement with MMC or MMC Capital,
                  Grants shall vest in accordance with a vesting schedule set
                  forth in the applicable Grant, and Grant Payments shall be
                  made in accordance with a Grant Payment schedule set forth in
                  the applicable Grant. Unless otherwise provided in a
                  Participant's employment,

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                  consulting or other written agreement with MMC or MMC Capital,
                  the vesting and Grant Payment schedule with respect to the
                  Original Grants is set forth in Exhibit A.

         (d)      In the event a Participant incurs an income tax liability
                  relating to a Grant upon a Realization Date (or Valuation
                  Date, if earlier) and the related Grant Payment is not then
                  due to be made to the Participant, the LTIP Committee may
                  authorize prepayment of a portion of such Grant Payment equal
                  to the income tax liability. The amount of any such prepayment
                  shall be subtracted from the Grant Payment when made or, if
                  the Grant is forfeited and no such Grant Payment is due, the
                  prepayment shall be repaid by the Participant upon the
                  Participant's termination of employment.

         (e)      After the date of a Grant, the terms of the Grant shall not be
                  amended adversely for any Participant.

IV.      GRANT PAYMENTS AND EXCEPTION GRANT PAYMENTS

         (a)      Grant Payments shall be made to Participants as set forth In
                  this Paragraph IV, except as otherwise provided in a
                  Participant's employment, consulting or other written
                  agreement with MMC or MMC Capital, or as otherwise determined
                  by the LTIP Committee.

         (b)      Grant Payments shall be made, subject to the applicable
                  vesting and Grant Payment schedule, as soon as reasonably
                  practicable after the end of each calendar quarter in which a
                  Realization Date or Valuation Date occurs. A Participant's
                  Grant Payment with respect to a Realization Date (or Valuation
                  Date, if earlier) shall be determined by the LTIP Committee.
                  With respect to an Original Grant, a Participant's Grant
                  Payments (in all cases subject to the applicable vesting and
                  Grant Payment schedule and to the limitations of Paragraph
                  III(b)) shall not be less than the Grant Payments determined
                  as follows:

                  (1)      With respect to the Trident Incentive Pool, the Grant
                           Payment shall not be less than the

                                       7
<PAGE>

                           product of the Participant's Individual Carry
                           Percentage with respect to the applicable Trident
                           Pool Subset, and such Trident Pool Subset;

                  (2)      With respect to the MMRCH Incentive Pool, the Grant
                           Payment shall not be less than the total of the
                           products of (aa) the Participant's Individual Carry
                           Percentage with respect to each applicable MMRCH
                           Designated Investment, and (bb) the portion of the
                           MMRCH Incentive Pool relating to such MMRCH
                           Designated Investment; and

                  (3)      With respect to the RCRe Fee Incentive Pool, the
                           Grant Payment shall not be less than the total of the
                           products of (aa) the Participant's Individual Carry
                           Percentage with respect to each applicable RCRe
                           Designated Investment, and (bb) the portion of the
                           RCRe Fee Incentive Pool relating to such RCRe
                           Designated Investment.

         (c)      The LTIP Committee may authorize Exception Grant Payments to
                  Participants with respect to Grants, subject to the limitation
                  set forth In Paragraph III(b).

         (d)      In the event that, upon a Realization Date or Valuation Date,
                  after the distribution of all applicable Grant Payments and
                  Exception Grant Payments, there remains an amount available
                  for distribution with respect to the applicable Incentive
                  Pool, the unallocated balance shall remain in a reserve
                  account (the "Reserve Account") with respect to such Incentive
                  Pool, to be distributed from time to time, in whole or in
                  part, at the discretion of the LTIP Committee. Notwithstanding
                  the foregoing, any amounts forfeited by a Participant who is
                  or was a member of the MMC Partners Group shall not be
                  redistributed without the approval of the MMC Compensation
                  Committee if such redistribution would result in a material
                  change to the remaining Participants' distributions, as
                  determined by the MMC Compensation Committee.

                                       8
<PAGE>

         (e)      All Grant Payments and Exception Grant Payments shall be made
                  in cash, unless otherwise determined by the LTIP Committee
                  with the approval of MMC.

V.       TERMINATION OF EMPLOYMENT

         (a)      Termination of employment and service provisions shall apply
                  as set forth in this Paragraph V, except as otherwise provided
                  in a Participant's employment, consulting or other written
                  agreement with MMC or MMC Capital, or as otherwise determined
                  at the time of Grant by the LTIP Committee.

         (b)      If a Participant's employment or service is terminated for
                  Cause as defined in Paragraph II(a)(1), (2) or (3) (or for
                  actions, other than those described in Paragraph II(a)(4),
                  which constitute Cause pursuant to the Participant's
                  employment, consulting or other written agreement with MMC or
                  MMC Capital) the Participant's Grants shall be forfeited
                  (regardless of whether the Grants are vested or unvested) and
                  the value of the related Individual Carry Percentages of each
                  Incentive Pool shall be returned to the applicable Incentive
                  Pool. If a Participant's employment or service is terminated
                  for Cause as defined in Paragraph II(a)(4), (or for actions
                  described in Paragraph II(a)(4) which constitute Cause
                  pursuant to the Participant's employment, consulting or other
                  written agreement with MMC or MMC Capital), any unvested
                  portion of the Participant's Grants shall be forfeited and the
                  value of the related Individual Carry Percentages of each
                  Incentive Pool shall be returned to the applicable Incentive
                  Pool, and Grant Payments with respect to any vested but unpaid
                  portion of the Grants shall be made to the Participant as soon
                  as practicable following such termination. Such Grant Payments
                  shall be determined by calculating each Incentive Pool based
                  upon the carrying value, as reported in the most recent
                  quarterly financial statements, of the

                                       9
<PAGE>

                  investments in such Incentive Pool as of the Participant's
                  date of termination.

         (c)      If a Participant's employment or service terminates without
                  Cause for any reason except death, Disability or Retirement,
                  any unvested portion of the Participant's Grants shall be
                  forfeited and the value of the related Individual Carry
                  Percentages of each Incentive Pool shall be returned to the
                  applicable Incentive Pool, and Grant Payments with respect to
                  any vested but unpaid portion of the Grants shall be made in
                  accordance with the applicable Grant Payment schedule.

         (d)      If a Participant's employment or service terminates because of
                  death, Disability or Retirement, Grant Payments with respect
                  to any unvested portion of the Participant's Grants shall
                  become fully vested, and shall be made in accordance with the
                  applicable Grant payment schedule.

         (e)      For purposes of vesting only, a Participant's employment or
                  service shall not be deemed to have terminated as long as the
                  Participant is employed by, or renders services to, MMC or any
                  of its affiliates; in such cases, the Participant's Grants
                  shall continue to vest, subject to the limitations set forth
                  in Paragraphs V(f) and (g). Upon the subsequent termination of
                  such Participant's employment or service with MMC or any of
                  its affiliates, the provisions of Paragraphs V(b), (c) or (d)
                  (as applicable) shall apply.

         (f)      With respect to each Incentive Pool except the Trident
                  Incentive Pool, in no case shall a Grant Payment be made to a
                  Participant with respect to an investment made or Fee Income
                  received following the date of termination of the
                  Participant's employment or service with MMC Capital, and in
                  no case shall a Grant Payment with respect to a Participant's
                  Grant be reduced because of the performance of an investment
                  made following the date of termination of the

                                       10
<PAGE>

                  Participant's employment or service with MMC Capital.

         (g)      With respect to the Trident Incentive Pool, the sum of the
                  Grant Payments made to any Participant shall not exceed an
                  amount reflecting a portion of the Participant's Grant, such
                  portion being equal to (i) the portion of the Grant that is
                  vested, multiplied by, (ii) a fraction, the numerator of which
                  is the aggregate value (determined on the cost basis) of funds
                  invested (including amounts drawn down or committed) by
                  Trident prior to the date of the termination of the
                  Participant's employment or service with MMC Capital and the
                  denominator of which is $667 million, the aggregate value
                  (determined on the cost basis) of funds authorized for
                  investment by Trident.

VI.      CHANGE IN CONTROL

         (a)      Notwithstanding anything herein to the contrary, upon a Change
                  in Control of MMC or Change in Control of MMC Capital: (1) any
                  unvested Grants shall become fully vested as of the date of
                  such change in control, (2) Grant Payments shall be based upon
                  the appraised market value of the investments in each
                  applicable Incentive Pool as of such date, and such payments
                  shall be made to the Participants as soon as practicable
                  following such date, (3) the outstanding balance in each
                  Reserve Account as of such date shall be distributed to the
                  Participants ratably (as determined by the LTIP Committee at
                  its discretion) as Grant Payments or Exception Grant Payments,
                  and (4) the LTIP shall continue thereafter at the discretion
                  of the LTIP Committee.

         (b)      For purposes of the LTIP, a "Change in Control of MMC" shall
                  have occurred if:

                  (1)      any "person," as such term is used in Sections 13(d)
                           and 14(d) of the Securities Exchange Act of 1934, as
                           amended (the "Exchange Act"), (other than MMC, any
                           trustee or other fiduciary holding

                                       11
<PAGE>

                           securities under an employee benefit plan of MMC or
                           any corporation owned, directly or indirectly, by the
                           stockholders of MMC in substantially the same
                           proportions as their ownership of stock of MMC), is
                           or becomes the "beneficial owner" (as defined in Rule
                           13d-3 under the Exchange Act), directly or
                           indirectly, of securities of MMC representing 50% or
                           more of the combined voting power of MMC's then
                           outstanding voting securities;

                  (2)      during any period of two consecutive years,
                           individuals who at the beginning of such period
                           constitute the Board of Directors of MMC, and any new
                           director (other than a director designated by a
                           person who has entered into an agreement with MMC to
                           effect a transaction described in clause (1), (3), or
                           (4) of this Paragraph VI(b)) whose election by the
                           Board of Directors of MMC or nomination for election
                           by MMC's stockholders was approved by a vote of at
                           least two-thirds (2/3) of the directors then still in
                           office who either were directors at the beginning of
                           the period or whose election or nomination for
                           election was previously so approved, cease for any
                           reason to constitute at least a majority thereof;

                  (3)      the stockholders of MMC approve a merger or
                           consolidation of MMC with any other corporation,
                           other than (A) a merger or consolidation which
                           would result in the voting securities of MMC
                           outstanding immediately prior thereto continuing
                           to represent (either by remaining outstanding or by
                           being converted into voting securities of the
                           surviving or parent entity) 50% or more of the
                           combined voting power of the voting securities of MMC
                           or such surviving or parent entity outstanding
                           immediately after such merger or consolidation or (B)
                           a merger or consolidation effected to implement a
                           recapitalization of MMC (or

                                       12
<PAGE>

                           similar transaction) in which no "person" (as
                           hereinabove defined) acquired 50% or more of the
                           combined voting power of MMC's then outstanding
                           securities; or

                  (4)      the stockholders of MMC approve a plan of complete
                           liquidation of MMC or an agreement for the sale or
                           disposition by MMC of all or substantially all of
                           MMC's assets (or any transaction having a similar
                           effect).

         (c)      For purposes of the LTIP, a "Change in Control of MMC Capital"
                  shall have occurred if MMC no longer owns (directly or
                  indirectly) at least 50% of the value and voting power of MMC
                  Capital.

VII. ADMINISTRATION

         (a)      The LTIP Committee shall have the authority in its sole
                  discretion, subject to and not inconsistent with the express
                  provisions of the LTIP, to administer the LTIP and to exercise
                  all the powers and authorities either specifically granted to
                  it under the LTIP or necessary or advisable in the
                  administration of the LTIP, including, without limitation, the
                  authority to make Grants; to determine the persons to whom
                  Grants shall be made; to determine the size of Grants to be
                  made, and the terms and conditions relating to any Grant
                  including vesting; to determine whether, to what extent, and
                  under what circumstances a Grant may be settled, cancelled,
                  forfeited or surrendered; to determine and make Grant payments
                  and Exception Grant Payments; to construe and interpret the
                  LTIP and any Grant; and to prescribe, amend and rescind rules
                  and regulations relating to the LTIP.

         (b)      No member of the LTIP Committee shall be liable for any action
                  taken or determination made in good faith with respect to the
                  LTIP or any Grant hereunder.

VIII. OTHER

                                       13
<PAGE>

         (a)      COMPLIANCE WITH LEGAL REQUIREMENTS. Awarding Grants, making
                  Grant Payments and Exception Grant Payments, and any other
                  terms pursuant to the LTIP shall be subject to applicable
                  Federal and state laws, rules and regulations, and approvals
                  by any regulatory or governmental agency as may be required.

         (b)      GOVERNING LAW. The LTIP and all determinations made and
                  actions taken pursuant hereto shall be governed by the laws of
                  the State of New York, without giving effect to the conflict
                  of laws principles thereof.

         (c)      EFFECTIVE DATE. The effective date of the LTIP shall be
                  December 31, 1998.

         (d)      PARTICIPANT RIGHTS. No Participant shall have any claim to
                  receive any Grant (other than the Original Grant) under the
                  LTIP, and there is no obligation for uniformity of treatment
                  with respect to Participants.

         (e)      NO RIGHT TO CONTINUED EMPLOYMENT OR SERVICE. Nothing in the
                  LTIP or in any Grant shall confer upon any Participant the
                  right to continue in the employ or service of MMC Capital, MMC
                  or an affiliate of MMC, interfere with or limit in any way the
                  right of MMC Capital, MMC or an affiliate of MMC to terminate
                  any Participant's employment or service, or entitle any
                  Participant to remuneration or benefits not set forth in the
                  LTIP.

         (f)      NONTRANSFERABILITY. Grants shall not be transferable by a
                  Participant except by will or the laws of descent and
                  distribution.

         (g)      BENEFICIARY DESIGNATION. Using the beneficiary designation
                  form set forth in Exhibit B, a Participant shall have the
                  right, at any time, to designate any person or persons as
                  beneficiary or beneficiaries (both principal and contingent)
                  to whom payment shall be made in the event of the
                  Participant's death prior to the complete distribution to the
                  participant of the amounts due under the LTIP. Upon completion
                  of the form,

                                       14
<PAGE>

                  it should be submitted to the LTIP Committee. A Participant
                  may change a beneficiary designation by completing a new form
                  and submitting it to the LTIP Committee. A new beneficiary
                  designation shall cancel any prior beneficiary designation. If
                  a Participant does not have a beneficiary designation in
                  effect, or if all designated beneficiaries predecease the
                  Participant, then any amounts otherwise payable to a
                  beneficiary shall be paid to the Participant's estate. The
                  payment to a designated beneficiary or to the Participant's
                  estate shall completely discharge MMC Capital's obligations
                  under the LTIP.

         (h)      AMENDMENT; TERMINATION. The Board of Directors of MMC Capital
                  shall, with the consent of MMC, have the right to alter,
                  amend, suspend and terminate the LTIP, provided that, without
                  the written consent of the Participant, no such alteration,
                  amendment, suspension or termination shall adversely affect
                  the terms and conditions of any Grant theretofore made to such
                  Participant under the LTIP.

                                       15

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