Document:

<PAGE>
                                                                    EXHIBIT 10.2

                                      LEASE

                                    AGREEMENT

                                     BETWEEN

                        RIVER BEND EXECUTIVE CENTER, INC.

                                    LANDLORD

                                       AND

                           LEVIN MANAGEMENT CO., INC.

                                     TENANT
<PAGE>
                                COMMERCIAL LEASE
                                     BETWEEN
                        RIVER BEND EXECUTIVE CENTER, INC.
                                       AND
                           LEVIN MANAGEMENT CO., INC.
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
  Paragraph        Title                                                    Page
<S>                <C>                                                      <C>
      1            Reference Data                                            1
      2            Definitions                                               3
      3            Demised Premises and Term                                 4
      3(a)         Demised Premises                                          4
      3(b)         Term                                                      4
      3(c)         Commencement and Expiration Date Agreement                5
      4            Rent and Security Deposit                                 5
      4(a)         Fixed Rent                                                5
      4(b)         Additional Rent                                           5
      4(c)         Past Due Annual Fixed Rent or Additional Rent             6
      4(d)         Security Deposit                                          6
      5            Tenant's Share of Operating Costs and Taxes               7
      5(a)         Operating Costs Definitions                               7
      5(b)         Payment of Tenant's Share of Operating
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                <C>                                                      <C>
                   Costs and Real Estate Taxes                              10
      6            Occupancy of Demised Premises                            12
      7            Use of Demised Premises                                  12
      8            Tenant's Operation of Business                           12
      9            Designation of Brokers                                   13
     10            Signs                                                    13
     11            Repairs, Alterations and Maintenance                     13
     11(a)         Care of Demised Premises                                 13
     11(b)         Tenant's Repairs and Replacements                        13
     11(c)         Landlord's Repairs                                       14
     11(d)         Tenant's Alterations                                     15
     11(e)         Mechanic's Liens                                         16
     12            Utilities and Building Services                          17
     12(a)         Heating and Air Conditioning                             17
     12(b)         Water                                                    18
     12(c)         Interruption of Services                                 18
     12(d)         Electricity, Demised Premises                            18
     13            Property and Other Taxes                                 20
     14            Indemnification by Tenant                                20
     15            Insurance                                                21
     16            Damage to or Destruction of Demised Premises             23
     17            Eminent Domain                                           24
     18            Default by Tenant                                        24
     19            Landlord's Remedies                                      25
     20            Sublease or Assignment                                   28
     21            Environmental Matters                                    31
     22            Attornment                                               32
     23            Subordination                                            33
     24            Surrender                                                33
</TABLE>

                                      iii
<PAGE>
<TABLE>
<S>                <C>                                                      <C>
     25            Certificates                                             34
     26            Landlord's Right of Access to Demised Premises           35
     27            Additional Rights Reserved to Landlord                   36
     28            Safe Environment                                         39
     29            Notice                                                   39
     30            Quiet Enjoyment                                          40
     31            Waiver of Liability                                      40
     32            No Representations                                       41
     33            Occupancy                                                41
     34            Successors and Assigns                                   41
     35            Entire Agreement                                         41
     36            Invalidation of Particular Provisions                    41
     37            Notice of Lease                                          41
     38            Janitorial Services                                      41
     39            Moving-In, Moving-Out or Relocating within
                     the Premises                                           42
     40            No Waiver to Landlord                                    42
     41            Waiver of Trial by Jury                                  42
     42            Integration of Agreement and Amendments                  43
     43            Governing Law                                            43
     44            Counterparts                                             43
     45            Attorneys' Fees                                          43
     46            Roof-Top Communication Equipment                         43
     47            Installation of Elevator                                 45
</TABLE>

                                       iv
<PAGE>
                                      LEASE

      This Lease is made as of this day between the Landlord and Tenant named in
Paragraph 1. Landlord and Tenant agree to the terms and conditions set forth in
this Lease.

      1.    REFERENCE DATA.

            Each reference in this Lease to any of the following subjects shall
incorporate the data stated for that subject in this Paragraph 1.

      DATE OF THIS LEASE September 25, 2002

      LANDLORD: RIVER BEND EXECUTIVE CENTER, INC.
                One Omega Drive
                P.O. Box 4047
                Stamford, CT  06907

      TENANT:   Levin Management Co., Inc.

      TENANT'S ADDRESS:  One Rockefeller Plaza
                         19th Floor
                         New York, New York  10020

      DEMISED PREMISES:     That portion of the Building (the "Building")
                            known as 5 River Bend Drive or River Bend 5,
                            Stamford, Connecticut, as depicted on Exhibit
                            A attached hereto (hereinafter referred to as
                            the "Demised Premises").

      TENANT'S USE OF THE DEMISED PREMISES:   Redundant Office Space/Office.

      COMMENCEMENT DATE: Upon the substantial completion of the Landlord's Work.
For purposes hereof, Landlord's Work shall be deemed substantially completed
upon the completion of all work (excluding any minor details of construction,
decoration, or mechanical adjustment which do not materially interfere with
Tenant's use of such part of the Demised Premises).

      RENT COMMENCEMENT DATE:  Upon Commencement Date.
<PAGE>
      EXPIRATION DATE:   September 30, 2011 (subject to extensions pursuant
                         to subsection 3(b)(ii)).

      LEASE TERM: Commencing on the Commencement Date and terminating on the
Expiration Date (the "Lease Term").

<TABLE>
<CAPTION>
RENT*:                                 YEARS             TOTAL              PER SQUARE FOOT
------                                 -----             -----              ---------------
<S>                                <C>                <C>                   <C>
Annual Fixed Rent:  Lease Years         1 - 3         $101,262.00               $21.00
                                        4 - 7          106,084.00                22.00
                                   Thereafter          110,906.00                23.00

Monthly Fixed Rent: Lease Years         1 - 3         $  8,438.50               $ 1.75
                                        4 - 7            8,840.33                 1.83
                                   Thereafter            9,242.17                 1.92
</TABLE>

*     Does not include $2,500 per month Additional Rent in connection with the
      emergency generator to be installed by Landlord in accordance with Section
      12(e)(i).

            ESTIMATED BASE YEAR OPERATING COSTS AND TAXES: Tenant will pay its
            share of any increase in Taxes and Operating Costs over the
            applicable Base Year. The Base Year, for purposes of Operating
            Costs, shall be the calendar year 2003 (the "Base Operating Year").
            The Base Year, for purposes of Taxes, will be the Taxes payable on a
            payment year basis for the period July 1, 2002 through June 30, 2003
            (the "Base Tax Year").

            TENANT ELECTRICITY: Demised Premises shall be submetered with Tenant
            paying all charges for electricity. (See Paragraph 12d(iii)).

            NUMBER OF PARKING SPACES: Landlord will provide 14 parking spaces.
            In the event of a disaster at Tenant's primary offices, Tenant will
            be allowed the use of an additional ten (10) spaces in reasonably
            close proximity to the Building.

            RENTABLE SQUARE FOOTAGE OF THE DEMISED PREMISES: The Demised
            Premises for purposes of this Lease shall be deemed to comprise
            4,822 Rentable Square Feet on the second (2nd) floor of the
            Building.

            INITIAL PAYMENTS OF FIXED RENT AND SECURITY DEPOSIT: The first
            month's Fixed Rent ($8,438.50) (such amount the "First Month's
            Rent") and the last month's Fixed Rent ($9,242.17) (such amount, the
            "Last Month's Rent"), Security Deposit in the sum of ($17,680.67),
            and first and last month's Additional Rent for access to Landlord's
            emergency generator ($5,000), for a total of $22,680.67, are payable
            upon execution of this Lease.

            GUARANTORS: (Parent Company - BKF Capital Group, Inc.) See Rider No.
            3.

            BROKER(S): Landlord recognizes Grubb & Ellis as the broker of
            record.

            TENANT'S SHARE: 19.0% which is calculated on a proportionate basis
            comparing Tenant's rentable square footage to the total rentable
            square footage in the Building (whether or not leased) computed on a
            consistent basis.

            2.    DEFINITIONS.

                                       2
<PAGE>
            For all purposes of this Lease, the terms defined in this Paragraph
shall have the meanings specified in this Paragraph unless the context otherwise
requires.

            (a) "Landlord" shall mean the owner or lessee of the Building (or
part thereof) of which the Demised Premises form a part. In the event of the
termination of the Landlord's interest in the Building, the current Landlord
shall be relieved of all obligations under this Lease, and without further
agreement, the purchaser of the Building or other assignee of the Landlord's
interest therein will assume all obligations of Landlord under this Lease.

            (b) "Tenant" shall mean the Tenant named in this Lease and any
person, firm, corporation or other legal entity, immediate or remote, to which
Tenant's interest in this Lease may be assigned pursuant to the terms of this
Lease.

            (c) "Common Areas" shall mean that part of the Building and its
appurtenances designated by Landlord for the common use of all tenants, invitees
and others, which includes, sidewalks, landscaping, curbs, driveways, parking
areas, delivery passages, loading areas, hallways, lighting facilities, drinking
fountains, lobbies, elevators, meeting rooms, public toilets and the like.
Landlord reserves the right to change, from time to time, the dimensions and
locations of the Common Areas. Tenant's access to the Demised Premises shall be
24 hours a day, 7 days a week, 365 days a year basis.

            (d) "Building" shall mean 5 River Bend Drive, Stamford, Connecticut
and all improvements located thereon. The Building is also known as River Bend 5
and 5 River Bend. Landlord reserves the right to change the name of the Building
at any time or times.

            (e) "Normal Business Hours" shall mean 8:30 a.m. until 5:30 p.m.
weekdays, exclusive of those days reasonably designated as holidays by Landlord.

            (f) "Park" shall mean the River Bend Office Park in which the
Building and Common Areas are located.

            (g) "Rent" shall mean Annual Fixed Rent as defined in Paragraph 4(a)
and Additional Rent as defined in Paragraph 4(b).

                                       3
<PAGE>
            (h) "Approximate Square Footage of the Demised Premises" shall mean
that figure indicated in Paragraph 1.

      3.    DEMISED PREMISES AND TERM.

            (a) DEMISED PREMISES. Landlord hereby leases to Tenant, and Tenant
hereby leases from Landlord for the Term and Rent and upon the other conditions
and covenants as provided for herein, the Demised Premises, as defined in
Paragraph 1 hereof, together with the right to use in common with Landlord,
other tenants in the Building, their invitees and others, the Common Areas. In
addition, the Landlord shall provide to Tenant, on a rent-inclusive basis,
parking for the number of cars specified in Paragraph 1. Tenant's use of said
parking area shall be in common with other tenants, and the parking of said cars
shall be on a non-reserved basis unless otherwise noted in Paragraph 1 hereof
and shall be subject to the reasonable rules, regulations and arrangements which
may be established or altered by Landlord at any time or from time to time
during the Term hereof. Landlord shall use commercially reasonable efforts to
enforce any such rules and regulations in a uniform manner as to all tenants of
the Building. Landlord shall not be responsible for any theft of or damage to
cars owned by Tenant's employees and/or invitees.

            (b) TERM.

                  (i) The Term of the Lease shall be for the period as indicated
in Paragraph 1, unless sooner terminated as herein provided. In the event that
for any reason whatsoever the Landlord cannot deliver possession of the Demised
Premises to Tenant within three (3) months of Lease execution, Landlord shall
not be liable to Tenant for any loss or damage resulting therefrom. Should
Landlord be unable to deliver possession of the Demised Premises to Tenant
within said three (3) month period, Tenant may elect to terminate this Lease by
providing thirty (30) days written notice; provided, however, that Landlord
shall have the opportunity to deliver possession during such notice period. The
dates upon which the Term shall commence and terminate as provided for herein
are called the "Commencement Date" and the "Expiration Date", respectively.

                                       4
<PAGE>
                  (ii) The Tenant shall have no option to renew this Lease
except as contained in Rider No. 2.

            (c) COMMENCEMENT AND EXPIRATION DATE AGREEMENT. In order to place in
writing the exact dates of the Commencement Date and the Expiration Date, if
such are different from those set forth in Paragraph 1 hereof, the parties
shall, upon the request of either of them, within ten (10) days after the
Commencement Date, execute a supplemental agreement to become a part of this
Lease, setting forth the Commencement Date and Expiration Date.

      4. RENT AND SECURITY DEPOSIT.

            (a) FIXED RENT. Tenant agrees to pay to Landlord at the address set
forth in Paragraph 1, or at such other place designated by Landlord, without any
prior demand and without any deduction or setoff whatsoever, the Annual Fixed
Rent as defined in Paragraph 1, which shall be due and payable in twelve monthly
installments, each equal to the Monthly Fixed Rent as defined in Paragraph 1.
The Monthly Fixed Rent shall be paid in lawful currency of the United States of
America, in advance, on the first day of each calendar month during the Term. If
the Commencement Date is a day other than the first day of a calendar month, the
Tenant shall pay on the Commencement Date the portion of the Monthly Fixed Rent
due for that month, prorated on a per diem basis. Landlord shall apply the First
Month's Rent delivered to Landlord concurrently with Tenant's execution and
delivery of this Lease to the Monthly Fixed Rent payable for the first full
calendar month during the Term. Landlord shall apply the Last Month's Rent
delivered to Landlord concurrently with Tenant's execution and delivery of this
Lease to the Fixed Rent due for the last month of the Lease Term.

            (b) ADDITIONAL RENT. Any sums of money or charges to be paid by
Tenant pursuant to the provisions of this Lease, other than the Annual Fixed
Rent, shall be designated as "Additional Rent" and shall be payable within ten
(10) days after Landlord gives written notice and demand for payment. Payment
will be made in the same manner as the Annual Fixed Rent. Landlord shall have
the same rights against Tenant for the default in payment of Additional Rent as
for default in payment of the Annual Fixed Rent.

                                       5
<PAGE>
            (c) PAST DUE ANNUAL FIXED RENT OR ADDITIONAL RENT. If Tenant fails
to pay any Rent before the eleventh (11th) day after such Rent is due, Tenant
agrees to pay as Additional Rent for each day after and including the sixth day
that the Rent remains unpaid a late charge which shall be the greater of (1)
$50.00 per day or (2) five percent (5%) of the amount of such unpaid Rent
divided by 30. Tenant agrees that such amounts are not a penalty, but are a
reasonable amount to reimburse Landlord for the loss of the use of the money and
the additional administrative costs resulting from late payments.

            (d) SECURITY DEPOSIT. Tenant will deposit with Landlord upon signing
this Lease, and throughout the term of this Lease shall keep on deposit with
Landlord, the rental for the last month of the Term herein granted, as well as a
Security Deposit in the amount set out in Paragraph 1 as security for Tenant's
payment of the Rent and Tenant's faithful performance under this Lease. All
interest earned on the Security Deposit shall be the property of Landlord. If at
any time during the Term of this Lease, Tenant defaults in the performance of
any provisions of this Lease, Landlord may, but shall not be required, to use
the Security Deposit, or so much thereof as necessary, to pay any Rent in
default, to reimburse any expense incurred by Landlord, and to pay for the
damages incurred by Landlord by reason of Tenant's default. In such event,
Tenant shall, on written demand of Landlord, immediately remit to Landlord a
sufficient amount in cash to restore the Security Deposit to its original
amount. Within 60 days after the end of the Term, and in the event such Security
Deposit has not been entirely utilized as provided above, any remaining balance
of the Security Deposit will be refunded to Tenant without interest. Landlord
will deliver the Security Deposit to the purchaser or assignee of Landlord's
interest in the Demised Premises in the event such interest is sold or assigned
and at that time Landlord will be discharged from further liability with respect
to the Security Deposit; provided, however, that said transferee or assignee
takes the Security Deposit subject to this Lease and assumes Landlord's
obligations with respect thereto Notwithstanding the provisions of this
Paragraph 4, if the claims of Landlord exceed the Security Deposit, Tenant will
remain liable for the balance of such claims.

                                       6
<PAGE>
      5.    TENANT'S SHARE OF OPERATING COSTS AND TAXES.

            (a) DEFINITIONS. As used in this Lease the following definitions
shall apply:

                  (i) "Real Estate Taxes" shall mean the total amount of all
taxes, charges and assessments levied or assessed against the Building and any
personal property of Landlord used in the operation of the Building, including,
without limitation, real property taxes, assessments, water and water
assessments, sewer rentals, rates, taxes and charges, and any other governmental
charge, general, special, ordinary or extraordinary, foreseen or unforeseen, of
any kind and nature whatsoever which may at any time prior or during the Term of
this Lease become due and payable, or be levied, assessed or imposed by any
authority having power to do so, on, against or with respect to the Building and
any appurtenance thereof, but excluding, however, any tax, levy or assessment
against any income of Landlord, and any income, franchise, corporation, estate,
gift, transfer, inheritance and capital stock taxes of Landlord or mortgage
recording taxes. Real Estate Taxes shall not include any penalties or interest
that derives from Landlord's failure to pay Real Estate Taxes on a timely basis.
The said exclusions notwithstanding, Real Estate Taxes shall include any tax,
charge or other imposition levied by the State of Connecticut or political
subdivision thereof against Landlord's interest in this Lease or the rents
(whether gross or net) derived from this Lease, and shall also include, to the
extent applicable, any other tax, fee or other excise, however described, that
may be levied or assessed against the Building as a substitute for, or as an
addition to, in whole or in part, any other Real Estate Taxes, whether or not
now customary or in the contemplation of the parties hereto as of the date of
this Lease.

                  (ii) "Operating Costs" shall mean costs, actual and accrued,
incurred by or on behalf of Landlord in connection with the management, use,
operation, maintenance, repair, preservation and protection of the Building and
Common Areas, including, without limitation or duplication, (1) cost of
electricity, air conditioning, ventilating, heating, mechanical, security
protection and elevator systems and all other utilities; (2) cost of water,
supplies and equipment, and maintenance, security and service contracts; (3)
cost of repairs, general maintenance, and cleaning; (4) cost of

                                       7
<PAGE>
fire, extended coverage, boiler, sprinklers, public liability, property damage,
rent, umbrella coverage, and other insurance; (5) wages, salaries, accident
insurance, and retirement, medical and other employee benefits and other labor
costs for Landlord's personnel; (6) fees, charges, and other costs including
management fees, consultant fees, legal fees, and accounting fees of all
independent contractors engaged by Landlord or reasonably charged by Landlord to
perform services in connection with the operation of the Building; (7) cost of
maintaining Common Areas, public areas, lobbies, parking areas, and similar
areas adjacent to the Building; (8) amortized costs of capital improvements to
the Building, Common Areas or the real property on which the Building is located
which (i) are required by governmental law or regulation and were not required
by law as of the date hereof or (ii) are reasonably and customarily intended to
reduce, stabilize or limit increases in Operating Costs (including, without
limitation, the replacement of structural and non-structural Building
components, machinery, equipment and other capital items that have become
obsolete or otherwise have reached the end of their useful lives); and (9) such
other items as are customarily included in the cost of managing, operating, and
maintaining the Building in accordance with customary commercial real estate
practices of owners of similar buildings in Fairfield County, Connecticut.
Notwithstanding anything to the contrary herein contained, the term Operating
Costs shall not include (1) Real Estate Taxes; (2) debt service and financing
costs, including, without limitation, sums paid under mortgages and related
agreements with respect to secured and unsecured loans; (3) rent paid under
superior or ground leases; (4) any expense for which (a) Landlord is otherwise
compensated through the proceeds of insurance to the extent Landlord is
compensated, (b) Landlord receives or is entitled to receive compensation or
reimbursement from other tenants in the Building, or (c) Landlord receives
compensation or reimbursement from any other source to the extent Landlord is
compensated; (5) all leasing costs applicable to this Lease (and other leases in
the Building), including, without limitation, leasing and brokerage commissions
and similar fees, and the cost of the Landlord Work and legal and other
professional services in connection with the execution and delivery hereof (and
thereof); (6) costs and expenses

                                       8
<PAGE>
incurred in connection with negotiations or disputes with present or prospective
tenants of the Building; (7) costs incurred with respect to a sale or transfer
of all or any portion of the Building or any direct or indirect interest
therein; (8) costs and expenditures payable to any affiliate of Landlord in
excess of the amount which would be paid in the absence of such relationship;
(9) salaries of Landlord's personnel, or the personnel of the property manager
for the Building, in either case above the grade of building manager; (10)
expenses incurred in connection with services or other benefits of a type that
are not provided to Tenant (or are provided at separate or additional charge)
but that are provided to another tenant or occupant of the Building (or a group
of tenants or occupants of the Building) regardless of whether the same are
provided with or without separate or additional charge and (11) the cost of
acquiring, leasing, restoring, removing or replacing (a) sculptures, (b)
paintings, and (c) other objects of art located within or outside of the
Building.

                  (iii) "Computation Year" shall mean each twelve (12) month
period following the Base Operating Year (in the case of Operating Costs) or the
Base Tax Year (in the case of Real Estate Taxes) in which occurs any part of the
term of this Lease Term.

                  (iv) "Base Year Operating Costs" shall mean Tenant's Share
(i.e. 19.0%) of the Operating Costs during the Base Operating Year.

                  (v) "Base Year Real Estate Taxes" shall mean Tenant's Share
(i.e. 19.0%) of the Real Estate Taxes during the Base Tax Year.

            (b) PAYMENT OF TENANT'S SHARE OF OPERATING COSTS AND REAL ESTATE
TAXES. Tenant shall pay to Landlord, as Additional Rent, Tenant's Share of
Operating Costs and Real Estate Taxes at the times and in the manner provided
below:

                  (i) Tenant's Share of Operating Costs for any Computation Year
shall be the amount by which Tenant's Share (i.e. 19.0%) of the Operating Costs
for that Computation Year, exceed the Base Year Operating Costs. Tenant's Share
of Real Estate Taxes for any Computation Year shall be the amount by which
Tenant's Share (i.e. 19.0%) of the Real Estate Taxes , for that Computation
Year, exceed the Base Year Real Estate Taxes.

                                       9
<PAGE>
                  (ii) At the beginning of each Computation Year, Landlord shall
compute and deliver to Tenant an estimate of the amount to be paid by Tenant on
Tenant's Share of the Operating Costs and on Tenant's Share of Real Estate Taxes
for the appropriate Computation Year, and without further notice, Tenant shall
pay to Landlord as Additional Rent, simultaneously with Tenant's Monthly Fixed
Rent during such Computation Year, monthly installments of one-twelfth (1/12th)
of such estimate.

                  (iii) Unless delayed by causes beyond Landlord's reasonable
control, Landlord shall deliver to Tenant within one hundred eighty (180) days
after the end of each Computation Year, written statements setting out in
reasonable detail the amount of Tenant's Share of Operating Costs and Tenant's
Share of Real Estate Taxes. If the aggregate of monthly installments of Tenant's
Share of Operating Costs actually paid by Tenant to Landlord differs from the
amount of Tenant's Share of Operating Costs payable according to the Statement
of Tenant's Share of Operating Costs ("Statement - Operating Costs") under this
Paragraph 5, Tenant shall pay the increase or be credited with a decrease
without interest within thirty (30) days after the date of delivery of the
Statement - Operating Costs provided that if Tenant is entitled to a credit and
no further amounts are due to Landlord hereunder, the Landlord shall promptly
remit such amounts to Tenant. If the aggregate of monthly installments of
Tenant's Share of Real Estate Taxes actually paid by Tenant to Landlord differs
from the amount of Tenant's Share of Real Estate Taxes payable according to the
Statement of Tenant's Share of Real Estate Taxes ("Statement - Real Estate
Taxes") under this Paragraph 5, Tenant shall pay the increase, or be credited
with a decrease without interest, within thirty (30) days after the date of
delivery of the Statement - Real Estate Taxes provided that if Tenant is
entitled to a credit and no further amounts are due to Landlord hereunder, the
Landlord shall promptly remit such amounts to Tenant.

                  (iv) If Landlord and Tenant disagree on the accuracy of
Tenant's Share of Operating Costs as set forth in the Statement - Operating
Costs or Tenant's Share of Real Estate Taxes as set forth in the Statement -
Real Estate Taxes, Tenant shall nevertheless make payment in accordance with any
notice given by Landlord, but the disagreement shall immediately be referred by
Landlord for prompt decision by a

                                       10
<PAGE>
mutually acceptable public accountant or other professional consultant who shall
be deemed to be acting as an expert and not as an arbitrator, and a
determination signed by the selected expert shall be final and binding on both
Landlord and Tenant. Any adjustment required to any previous payment made by
Tenant or Landlord by reason of any such decision shall be made within fourteen
(14) days after the date of the decision. Tenant will pay the costs of retaining
the expert.

                  (v) Neither party may claim a readjustment in respect of
Tenant's Share of Operating Costs if based upon any error of computation or
allocation except by notice delivered to the other party within six (6) months
after the date of delivery of the Statement - Operating Costs or the Statement -
Real Estate Taxes.

                  (vi) In the event that the Building is less than ninety
percent (90%) occupied in any Computation Year including Base Year as reasonably
determined by the Landlord, an adjustment shall be made in computing the
Operating Costs for such Computation Year so that the Operating Costs shall be
computed as though the Building had been ninety percent (90%) occupied. If
ninety percent (90%) or more of the Building is occupied as reasonably
determined by the Landlord, Tenant shall pay its Tenant's Share of Operating
Costs based upon the actual Operating Costs for such Computation Year. The
provisions of this Paragraph 5 shall survive the expiration or earlier
termination of the Lease.

      6.    OCCUPANCY OF DEMISED PREMISES.

            Tenant's occupancy of all or part of the Demised Premises shall be
conclusive evidence that Tenant accepts possession of the Demised Premises in an
"as is" condition, and that the Demised Premises are complete and finished in
every material respect. Tenant relies on no warranties or representations
express or implied of Landlord or any agent or other party associated with
Landlord as to the nature, condition, repair or specific area of the Demised
Premises or the Building, except as otherwise expressly provided in this Lease.

      7.    USE OF DEMISED PREMISES.

                                       11
<PAGE>
            Tenant shall use the Demised Premises for the purposes set forth in
Paragraph 1 and for no other use or purpose without the prior written consent of
Landlord.

      8. TENANT'S OPERATION OF BUSINESS.

            (a) Tenant shall comply with all laws, orders and regulations of
federal, state, county and municipal authorities (including without limitation
the Americans With Disabilities Act, 42 U.S.C. Section 12101 et seq. to the
extent such Act affects the Demised Premises) ("Legal Requirements"), and with
any direction of any public officer or officers which shall impose any violation
order or duty with respect to the Demised Premises or the use or occupancy
thereof. Landlord represents that it has not received any notice that the
Demised Premises are in violation of the Legal Requirements.

            (b) Tenant agrees that it shall not at any time during the Lease do
or permit to be done any act or practice which may tend to injure or damage the
Demised Premises or the Building.

            (c) Tenant shall not use or knowingly permit any part of the Demised
Premises to be used for any unlawful purpose; nor shall the Tenant use or occupy
or permit the Demised Premises to be used or occupied, nor do or permit anything
to be done in or on the Demised Premises, in a manner which will knowingly
violate any certificate of occupancy affecting the Demised Premises; or to make
void or voidable any insurance then in force with respect thereto, or which will
make it impossible or uneconomical to obtain fire or other insurance required to
be furnished by the Landlord or the Tenant; or which will cause or be likely to
cause roof or structural damage to the Building or any part thereof; or which
will constitute a public or private nuisance; or which will violate any laws or
regulations of any governmental authority.

      9. DESIGNATION OF BROKERS.

            Landlord agrees to pay brokerage fees and commissions in connection
with this Lease, subject to the conditions set forth below. As part of the
consideration for granting this Lease, Tenant represents and warrants to
Landlord that it has dealt with no broker or agent other than as specified in
Paragraph 1 hereof with respect to the Demised Premises. Landlord represents and
warrants to Tenant that no broker has an

                                       12
<PAGE>
exclusive agency listing with respect of the Demised Premises. Tenant agrees to
indemnify and hold Landlord harmless against any claims (including costs and
attorneys' fees) for brokerage fees and commissions by any broker or agent other
than above claiming to have introduced Tenant to the Demised Premises. The
indemnity in this paragraph 9 shall survive the expiration or earlier
termination of this Lease.

      10. SIGNS.

            Tenant shall have the right at its expense, in conformity with all
applicable laws, ordinances and municipal regulations, and subject to the prior
written consent which shall not be unreasonably withheld of Landlord, to install
interior signs in the Demised Premises.

      11. REPAIRS, ALTERATIONS AND MAINTENANCE.

            (a) CARE OF DEMISED PREMISES. Tenant, at its expense, shall take
good care of the Demised Premises, including all Building equipment and systems
located within the Demised Premises, partitions, carpets, drapes, ceilings,
lights, doors, and other interior finish items. Tenant shall maintain all such
interior finish items as necessary to preserve them in reasonably good order,
condition and appearance, reasonable wear and tear excepted.

            (b) TENANT'S REPAIRS AND REPLACEMENTS. Tenant shall, at its sole
cost and expense, make and be responsible for all repairs and replacements, as
and when needed, to preserve the Demised Premises and the Building (except as
provided for as Landlord's responsibility in this Lease), including Building
equipment and systems and Tenant's property and fixtures, in good working order
and condition, if the need for which arises out of or results from (1) the
performance or existence of any alteration of or modification to the Demised
Premises made by Tenant, (2) the installation, use, or operation of Tenant's
property or fixtures, (3) the moving of Tenant's property or fixtures in or out
of the Building or in and about the Demised Premises, or (4) the acts, omission,
negligence or misuse by Tenant, those holding under Tenant or Tenant's servants,
employees, agents, invitees, or licensees, or their use or occupancy or manner
of use or occupancy of the Demised Premises. All repairs and replacements shall
conform to the provisions of Paragraph 11(d) and shall be at least equal in
quality

                                       13
<PAGE>
and class to the standards then applicable for the Building as established by
Landlord. If Tenant fails after ten (10) days notice by Landlord to proceed with
due diligence to make repairs required to be made by Tenant (except in an
emergency, wherein Landlord may proceed immediately if Tenant does not
immediately proceed to repair) the same may be made by Landlord at the expense
of Tenant, and the reasonable expenses of repairs incurred by Landlord shall be
reimbursed immediately as Additional Rent after submission of a bill or
statement for the repairs.

            (c) LANDLORD'S REPAIRS. Landlord, shall make all necessary repairs
to keep the Building, including Building equipment and systems serving the
Demised Premises (but only up to the point where such systems penetrate the
outer walls or slabs of the Demised Premises) in reasonably good order and
repair, excluding, however, all repairs which Tenant is obligated to make
pursuant to Paragraph 11(b). Tenant shall use reasonable efforts to give
Landlord prompt notice of any defective condition known to Tenant in any
plumbing, heating system or electrical lines located in, servicing, or passing
through, the Demised Premises. Except as otherwise specifically provided in this
Lease, there shall be no allowance to Tenant for a diminution of rental value
and no liability on the part of Landlord by reason of inconvenience, annoyance,
interruption or injury to business arising from Landlord, Tenant or others
making any repairs, alterations, additions or improvements in or to any portion
of the Building. Except in the case of an emergency, Landlord shall use
reasonable efforts to minimize any interference with Tenant's use, occupancy and
business conducted at the Demised Premises.

            (d) TENANT'S ALTERATIONS.

                  (i) Provided Tenant has secured the prior written consent by
Landlord, and subject to the provisions of Paragraph 11(e), Tenant may, at
Tenant's expense, make installations and other alterations to the Demised
Premises which are non-structural, by using contractors first approved by
Landlord, such consents and approvals not to t be unreasonably withheld by
Landlord. Tenant shall, at its expense, obtain all permits, approvals and
certificates required by any governmental or quasi-governmental bodies, both
before initiating and upon completing the installations and

                                       14
<PAGE>
other alterations, as applicable, and Tenant shall deliver promptly duplicates
of all such permits, approvals, and certificates to Landlord. Tenant agrees to
carry or will cause Tenant's contractors and subcontractors to carry such
workmen's compensation, general liability, and personal and property damage
insurance as Landlord may reasonably require. Certificates evidencing such
insurance coverage shall be delivered to Landlord prior to commencing any such
installations or alterations. Any increase in any Real Estate Taxes as a result
of such installations and other alterations by Tenant shall be paid entirely by
Tenant.

                  (ii) Notwithstanding the foregoing, Tenant shall be permitted
to make aesthetic, non-material alterations (such as painting, wall covering,
floor covering, etc.) without the prior written consent of Landlord. All
fixtures and all paneling, partitions, and like installations and other
alterations made in the Demised Premises at any time, either by Tenant or by
Landlord on Tenant's behalf, shall, upon installation, become the property of
Landlord and shall remain upon and be surrendered with the Demised Premises,
except as provided in this subparagraph and subparagraph (iii) of this Paragraph
11(d). Upon the issuance of Landlord's consent to any proposed alteration,
Landlord shall also advise Tenant as to whether Tenant will be required to
remove such alteration upon the expiration of the Lease. With respect to
improvements made without Landlord's consent, Landlord shall have the right, by
notice to Tenant no later than thirty (30) days prior to the end of the Term, to
elect to have the improvements removed by Tenant, and Tenant shall remove the
improvements and repair and restore the Demised Premises prior to the end of the
Term, at Tenant's expense.

                  (iii) Nothing in this Paragraph shall be construed to give
Landlord title to or to prevent Tenant's removal of trade fixtures or movable
office furniture and equipment, but upon removal of any such equipment and
fixtures from the Demised Premises or upon removal of other installations as may
be required by Landlord, Tenant shall immediately and at its expense, repair and
restore the Demised Premises to the condition existing prior to installation,
ordinary wear and tear excepted, and Tenant shall repair any damage to the
Demised Premises or the Building due to such removal.

                                       15
<PAGE>
            (e) MECHANIC'S LIENS. Tenant shall keep the title to the Building
free and clear of any lien or encumbrance in respect of any work performed by
Tenant or its contractors in the Demised Premises. Tenant shall indemnify and
hold Landlord harmless against any claim, loss, cost, demand and legal or other
expense, whether in respect of any lien or otherwise, arising out of the supply
of material, services or labor for such work. Tenant shall immediately notify
Landlord of any such lien, claim of lien, or other action of which it has or
reasonably should have knowledge and which affects the title to the Building and
shall fully bond or at Landlord's request cause the same to be removed within
ten (10) business days (or such additional time as Landlord may consent to in
writing, which consent shall not be unreasonably withheld), failing which
Landlord may take such action as Landlord deems reasonably necessary to remove
the same, and the entire cost of removal shall be immediately due and payable by
Tenant to Landlord upon written demand therefor. Such amount together with
interest thereon at the rate of one percent (1%) per month from the date
Landlord makes such payment shall be payable as Additional Rent. At least five
(5) days prior to the commencement of any work by Tenant on the Building, Tenant
shall notify Landlord of the proposed work and the names and addresses of the
persons supplying labor and materials for the proposed work.

      12. UTILITIES AND BUILDING SERVICES.

            (a) HEATING AND AIR CONDITIONING.

                  (i) Subject to limitations and restrictions imposed by
federal, state and/or local authorities, Landlord shall furnish heating and
air-conditioning ("HVAC") to the Demised Premises during Normal Business Hours.
Wherever heat-generating machines or equipment are used in the Demised Premises
which affect the temperature otherwise maintained by the air-conditioning
system, Landlord reserves the right to install supplemental air-conditioning
units for the Demised Premises, and the cost of such units' operation and
maintenance thereof shall be paid by Tenant to Landlord. Any air-conditioning
units required for Tenant's computer systems ("Supplementary AC") shall be
installed at the expense of Tenant and shall become the property of Landlord,
and the costs of operation and maintenance thereon shall be paid

                                       16
<PAGE>
by Tenant. If Tenant desires heating and/or air-conditioning from the Building's
HVAC system (as opposed to any Supplementary AC units installed by Tenant which
serve only the Demised Premises) at other than Normal Business Hours, Landlord
will, upon reasonable notice, if practicable, make arrangements therefor, but
Tenant shall pay the actual costs therefore without any profit or mark-up to
Landlord or its affiliates.

                  (ii) Landlord will not be responsible for the failure or
insufficiency of the HVAC system if such failure or insufficiency results from
Tenant's installation or operation of machines and appliances, the installed
electrical load of which, when combined with the load of all lighting fixtures
and the HVAC systems exceeds 600 amps. If due to (a) the use of the Demised
Premises in a manner exceeding the foregoing electrical load criteria, (b)
Tenant's improvements or modifications by Tenant to the existing HVAC system in
the Demised Premises (if same are constructed by Tenant), (c) the rearrangement
of partitioning after the initial preparation of the Demised Premises, or (d)
the interference with normal operation of the air-conditioning in the Demised
Premises, a condition results, necessitating changes in the HVAC system
servicing the Demised Premises, such changes shall be made by Tenant, at
Tenant's sole cost and expense.

            (b) WATER. Landlord shall furnish cold water from city water mains
for drinking, lavatory and toilet purposes drawn through fixtures installed by
Landlord, and hot water for lavatory purposes from the regular Building supply.
Tenant shall not waste water. If Tenant uses or consumes water for any other
purpose or in unusual quantities (of which fact Landlord shall reasonably
judge), Landlord may install a water meter at Tenant's expense, which Tenant
shall thereafter maintain at Tenant's expense in good working order and repair
to register such water consumption. Tenant shall pay for water consumed as shown
on the meter as Additional Rent as and when bills are rendered. On Tenant's
default in making such payment, Landlord may pay such charges and collect the
same from Tenant. If Tenant fails to pay promptly Landlord's proper charges for
water, Landlord, upon not less than twenty (20) days' notice, may discontinue
furnishing that service, and no such discontinuance shall be deemed an eviction
or disturbance of Tenant's use of the Demised Premises, or render Landlord

                                       17
<PAGE>
liable for damages, or relieve Tenant from any obligation under the Lease.
Landlord shall reinstate service once Tenant cures any such default.

            (c) INTERRUPTION OF SERVICES. Landlord does not warrant that any
service will be free from interruptions caused by repairs, renewals,
improvements, changes of service, alterations, strikes, lockouts, labor
controversies, accidents, inability to obtain fuel, water, or supplies, or other
cause beyond the reasonable control of Landlord. No such interruption of service
shall be deemed an eviction or disturbance of Tenant's use and possession of the
Demised Premises, or render Landlord liable to Tenant for damages by abatement
of Rent or otherwise, or relieve Tenant from performance of Tenant's obligations
under this Lease. Tenant hereby waives and releases all claims against Landlord
for damages for interruption or stoppage of service.

            (d) ELECTRICITY, DEMISED PREMISES.

                  (i) Tenant agrees that at all times its use of electric power
shall not exceed 600 amps and Tenant shall not use any electrical equipment
which, in the opinion of Landlord reasonably exercised, will overload such
installation or interfere with the use thereof by other tenants of the Building.

                  (ii) Landlord will provide a 600 amp electrical service for
Tenant's intended use of the Demised Premises including office lighting, the
operation of business machines and similar office uses.

                  (iii) Landlord, at its sole cost and expense, will install a
submeter on the feed side of the automatic transfer switch (ATS) to measure the
consumption of electricity within the Demised Premises. Landlord shall be
reimbursed for Tenant's share of utility charges for electricity based upon
actual electrical power consumed without any profit or mark-up to Landlord or
its affiliates.

                  (iv) Tenant, at Tenant's cost and expense, shall purchase and
install all light bulbs (including incandescent and fluorescent), starters and
ballasts used in the Demised Premises.

                  (v) Landlord shall not be liable in any way to Tenant for any
failure or defect in the supply or character of electricity furnished to the
Demised Premises by

                                       18
<PAGE>
reason of any requirement, act or omission of the public utility serving the
Building or for any other reason not attributable to Landlord.

            (e) CONDUITS, WIRING AND GENERATORS.

                  (i) Landlord has installed or will install and will maintain
an emergency motor generator as more particularly detailed in Rider 1 attached
hereto (the "Emergency Generator"). The Emergency Generator shall provide 150 kw
of emergency power for Tenant's exclusive use in the Premises during the Lease
Term. Tenant shall pay Landlord Additional Rent of $2,500 per month (or part
thereof for partial months of the Lease Term) in consideration for Landlord's
installation and maintenance of the Emergency Generator, which shall include
industry standard preventative service and maintenance and regular testing under
load.

                  (ii) Landlord shall, at its expense, bring all conduit and
electrical wiring from the generator into Tenant's Demised Space. Landlord shall
provide a panel box to service the Demised Premises. Tenant shall have the
right, at its own cost, to bring fiber optic and other data/voice transmission
lines and service lines to the Demised Premises.

      13. PROPERTY AND OTHER TAXES.

      In addition to the Annual Fixed Rent and other charges to be paid by
Tenant hereunder, but without duplication of any Real Estate Taxes or Operating
Costs payable by Tenant. Tenant shall reimburse Landlord, upon demand, for
Tenant's Share of any and all taxes payable by Landlord (other than net income
taxes) whether or not now customary or within the contemplation of the parties
hereto: (1) upon, allocable to, or measured by the Rent payable hereunder,
including without limitation, any gross receipts tax or excise tax levied by any
governmental or taxing body with respect to the receipt of such Rent, or (2)
upon or with respect to the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of all or any part
of the Demised Premises; or (3) upon (i) the measured value of Tenant's personal
property located in the Demised Premises or in any storeroom, garage or any
other place in the Demised Premises or the Building, (ii) any and all fixtures
and/or improvements in or to the Demised Premises which are owned by Tenant
and/or

                                       19
<PAGE>
constructed, installed and/or paid for by Tenant, it being the intention of
Landlord and Tenant that, to the extent possible, any such taxes (real, personal
or otherwise) shall be billed to and paid directly by Tenant. The parties will
endeavor to cause the applicable taxing authority to itemize such taxes
separately for the convenience of the parties but if unsuccessful, the Landlord
shall reasonably itemize and allocate such taxes to be payable by Tenant. The
Tenant shall pay all such taxes becoming due after the expiration of the Term of
this Lease which are attributable to a portion of the term of this Lease. Any
reimbursement referred to above shall be collected by Landlord as Additional
Rent under this Lease.

      14. INDEMNIFICATION BY TENANT AND LANDLORD.

              (a) Subject to the waivers of subrogation required under Paragraph
15(d) hereof, Tenant shall indemnify Landlord, its affiliates, agents, officers,
directors, contractors and employees and save it harmless from and against any
and all claims, actions, damages, liability and expense in connection with loss
of life, personal injury and/or damage to property arising from or out of any
occurrence in, upon, at or about the Demised Premises from or out of the
occupancy or use by Tenant of the Demised Premises or any part thereof, or
occasioned wholly or in part by any act or omission of Tenant, its agents,
contractors, employees, lessees or concessionaires. Notwithstanding anything
contained in this Lease to the contrary, Tenant shall have no liability for any
consequential damages suffered by Landlord or by any party claiming through
Landlord. Subject to Paragraph 31 and the waivers of subrogation required under
Paragraph 15(b) hereof, Landlord shall indemnify Tenant for all claims, actions,
damages, liability and expense in connection with loss of life, personal injury
and/or damage to property at or about the Demised Premises arising solely from
Landlord's gross negligence or willful misconduct. In case Landlord (including
its agents, contractors and employees)shall, without fault on its part, be made
a party to any litigation commenced by or against Tenant, then Tenant agrees to
protect and hold Landlord harmless. Notwithstanding anything contained in this
Lease to the contrary, Landlord shall have no liability for any consequential
damages suffered either by

                                       20
<PAGE>
Tenant or by any party claiming through Tenant. The indemnifications in this
paragraph 14 shall survive the expiration or earlier termination of the Lease.

            (b) Tenant shall store its property in and shall occupy and operate
in the Demised Premises and all other portions of the Demised Premises at its
own risk, and hereby releases Landlord, its agents and employees from any claims
for damages or injury to such property to the full extent permitted by law.

      15. INSURANCE.

            (a) At all times during the Term of this Lease and at any other time
Tenant shall have access to the Demised Premises to ready the same for its
occupancy, Tenant shall, at its own cost and expense, carry and maintain the
following insurance with insurance carriers and in forms reasonably acceptable
to Landlord:

                  (i) Comprehensive General Liability insurance coverage, for
bodily injury, personal injury, property damage and contractual liability, with
limits of not less than $1,000,000 combined single limit liability, per
occurrence.

                  (ii) Excess Liability insurance in umbrella form with limits
of not less than $4,000,000 single limit bodily injury and property damage
liability, per occurrence.

                  (iii) "All Risk" coverage, including but not limited to, fire,
vandalism, theft, with extended coverage, on Tenant's property and all
improvements in the Demised Premises.

                  (iv) Worker's Compensation insurance in such amounts as may be
required by law or regulation and employer's liability coverage in an amount not
less than $1,000,000, per occurrence.

            (b) Every policy of insurance referred to in this Lease and each
certificate therefor issued by the insurer shall (i) contain an express
agreement by the insurer that no cancellation or nonrenewal in the coverage
afforded under said policies will be effective until at least thirty (30) days'
prior written notice of such cancellation, non-renewal, or reduction has been
given by the insurer to Landlord; (ii) contain a standard mortgagee and loss
payable clause in favor of any mortgagee designated by Landlord, and (iii)
provide for a waiver of all rights of recovery by way of subrogation against

                                       21
<PAGE>
Landlord. Tenant shall promptly advise Landlord of any policy cancellation,
reduction, non-renewal, or amendment.

            (c) If Tenant shall fail to maintain such insurance as is required
by this Paragraph, Landlord may obtain such insurance, the amount of the premium
or premiums paid by Landlord for such insurance shall be collectible as
Additional Rent following delivery by Landlord of an invoice therefore.

            (d) Landlord shall at all times during the Lease Term carry fire and
extended coverage insurance, and insurance against such other risks as Landlord
considers reasonably appropriate, including the leasehold improvements, Building
and Common Areas, but excluding Tenant's improvements, merchandise, trade
fixtures, furnishings, equipment and personal property (collectively, "Tenant's
Property"). Landlord's policy shall provide for a waiver of all rights of
recovery by way of subrogation against Tenant.

      16. DAMAGE TO OR DESTRUCTION OF DEMISED PREMISES.

            (a) The parties agree that if the Demised Premises are partially or
totally destroyed or damaged by fire or other hazard, Landlord shall repair and
restore the Demised Premises, as soon as it is reasonably practicable, to
substantially the same condition in which the Demised Premises were before such
damage; provided however that Landlord shall not be obligated to repair or
restore the Demised Premises, and at its option, may terminate this Lease by
giving written notice to that effect to Tenant within sixty (60) days after such
damage or destruction, if the estimated cost of said repairs and restorations to
the Building is in excess of $1,000,000.

            (b) Landlord shall not be required to repair or restore any damage
caused by an act or omission of Tenant, its agents, employees, customers,
contractors, or licensees unless Landlord has received insurance proceeds in an
amount sufficient to rebuild and restore the Demised Premises (notwithstanding
said act or omission of Tenant, its agent, employee, customer, contractor or
licensee) and so long as Tenant pays Landlord the amount of any deductible
within Landlord's insurance coverage.

            (c) The Rent shall be abated proportionately during any period in
which by reason of any such damage or destruction (according to the extent which
the Tenant is unable to conduct its business), there is substantial interference
with the Tenant's

                                       22
<PAGE>
ability to operate its business in the Demised Premises, and such abatement
shall continue for the period commencing with such destruction or damage and
ending on the date which is fifteen (15) days following the substantial
completion by Landlord of such work or repair as Landlord undertakes to do.

             (d) If repairs of the destruction or damage of the Demised Premises
by fire or other hazard have not been substantially completed by Landlord within
one hundred eighty (180) days after the date on which Landlord shall receive
insurance proceeds therefore, or one hundred eighty (180) days from the date of
said damage or destruction, whichever shall first occur, this Lease may be
terminated by the Tenant so long as Tenant gives Landlord not less than ninety
(90) days written notice, which must be given within ten (10) days of the
expiration of such period.

      17. EMINENT DOMAIN.

            (a) If any part of the Demised Premises is taken by any public
authority under the power of eminent domain so as to render the remainder of the
Demised Premises unusable as reasonably determined by Landlord, Tenant may, at
its option, terminate this Lease on thirty (30) days' prior written notice to
Landlord, given within sixty (60) days after the date on which Landlord receives
notice of a proposed taking.

            (b) All damages awarded for such taking shall belong to and be the
property of the Landlord, except that Tenant shall be entitled to receive and
retain the amount specifically awarded to it for the taking of its fixtures and
its leasehold improvements which have not become a part of the Building and its
moving expenses. It is understood that in the event of the termination of this
Lease pursuant to this Paragraph because of a taking by eminent domain, Tenant
shall have no claim against the Landlord for the value of any unexpired term of
its Lease.

      18. DEFAULT BY TENANT.

      The following occurrences shall constitute, and are referred to
individually as an "Event of Default" and collectively as "Events of Default":

            (a) If Tenant shall fail to pay any installment of the Annual Fixed
Rental or Additional Rent or any part thereof when the same shall become due and
payable and such failure shall continue for ten (10) days following delivery by
Landlord to Tenant of

                                       23
<PAGE>
written notice of such failure to pay; provided, however, following Tenant's
receipt of one (1) written notice from Landlord in any calendar year regarding
past due amounts during such calendar year. Tenant shall not be entitled to any
further notice of, and cure period with respect to, any subsequent past due
payment of any installment of the Annual Fixed Rental or Additional Rent) during
such calendar year; or

            (b) If Tenant shall make an assignment of all or a substantial
portion of its assets for the benefit of creditors; or

            (c) If the leasehold estate hereby created in Tenant shall be taken
by attachment, execution or by other process of law; or

            (d) If any petition shall be filed against Tenant in any Court,
whether or not pursuant to any statute of United States or of any state, in any
bankruptcy, reorganization, composition, extension, arrangement or insolvency
proceedings, and Tenant shall thereafter be adjudicated bankrupt, or such
petition shall be approved by the Court, or the Court shall assume jurisdiction
of the subject matter and if such proceedings shall not be dismissed within
ninety (90) days after the institution of the same, or if any petition shall be
so filed by Tenant; or

            (e) If, in any proceedings, a receiver or trustee shall be appointed
for Tenant's property and such receivership or trusteeship shall not be vacated
or set aside within ninety (90) days after the appointment of such receiver or
trustee; or

            (f) If Tenant shall fail to perform or observe any other requirement
or condition of this Lease on the part of Tenant to be performed or observed and
such failure shall continue for thirty (30) days after mailing of written notice
thereof from Landlord to Tenant or such longer period so long as Tenant
diligently prosecutes the cure of such default; provided, however that in event
shall such period exceed ninety (90) days;

            (g) If Tenant shall abandon the Demised Premises for sixty (60)
consecutive days, it being understood that Tenant's mere vacating of the Demised
Premises shall not constitute an Event of Default, providing Rents are being
paid on a current basis;

      19. LANDLORD'S REMEDIES.

                                       24
<PAGE>
            (a) Upon the occurrence of an Event of Default, then Landlord, in
addition to the other rights and remedies it may have at law or equity, shall
have the right to immediately declare this Lease terminated, whereupon all of
the right, title and interest of the Tenant hereunder shall wholly cease and
expire. Tenant shall then quit, and surrender the Demised Premises to Landlord
but Tenant shall remain liable to Landlord as hereinafter provided.

                  (i) If this Lease shall be terminated, Landlord or Landlord's
agents or employees may immediately, either by summary process proceedings or by
any suitable action or proceeding at law, enter and repossess the Demised
Premises, together with all alterations, additions and improvements thereto,
without being liable for indictment or prosecution for damages therefore. In the
event of such re-entry and repossession, Landlord may store Tenant's property in
a public warehouse or elsewhere at the sole cost to, and for the account of,
Tenant.

                  (ii) If this Lease shall be terminated, all rents and other
charges required to be paid up to the time of such termination, re-entry or
dispossession, shall be paid by Tenant and Tenant shall also pay to Landlord all
expenses which Landlord may then or thereafter incur for reasonable attorneys'
fees and costs of suit, and brokerage commissions and all other costs paid or
incurred by Landlord in repossessing the Demised Premises, restoring the Demised
Premises to order and condition necessary to relet same, for reletting thereof
and for any other item or cost which Landlord incurs as a result of Tenant's
Event of Default..

                  (iii) If this Lease shall be terminated, Tenant nevertheless
covenants and agrees, notwithstanding any entry or re-entry by Landlord whether
by summary process proceedings, termination or otherwise, to pay and be liable
for on the days originally fixed herein for the payment thereof, amounts equal
to the several installments of Rent and other charges due under the terms of
this Lease, as if this Lease had not been terminated; but in the event the
Demised Premises shall be relet by the Landlord, Tenant shall be entitled to a
credit (but not in excess of the Rent or other charges reserved under the terms
of this Lease) of the net amount of rent and additional rent received by
Landlord, pursuant to such reletting, after deduction by

                                       25
<PAGE>
Landlord of all expenses and costs incurred by it. As an alternative, at the
election of Landlord, Tenant shall pay to Landlord, as liquidated damages, such
a sum as at the time of such termination represents the discounted present value
(using prime rate listed at Fleet Bank) of the amount of the excess, if any, of
the then present value of the total Fixed Rent and Additional Rent which would
have accrued to Landlord under this Lease for the remainder of the Lease Term if
the Lease terms had been fully complied with by Tenant over and above the then
present market rental value of the Demised Premises for the balance of the Lease
Term or, if the Demised Premises have been relet to a non-affiliated third
party, the discounted present value of the difference between the total Fixed
Rent and Additional Rent payable under this Lease and the new lease. Suit or
suits for the recovery of the deficiency of damages referred to in this
Paragraph or for any installment or installments of Fixed Rent or Additional
Rent hereunder, or for a sum equal to any such installment or installments, may
be brought by Landlord at once or from time to time at Landlord's election, and
nothing in this Lease shall be deemed to require Landlord to await the date
whereon this Lease or the term hereof would have expired by limitation had there
been no such default by Tenant or no such cancellation or termination.

            (b) All costs incurred by Landlord in collecting any amounts and
damages owing by Tenant by reason of the occurrence of an Event of Default, or
enforcing any provisions of this Lease, including court costs and reasonable
attorneys fees, shall be recoverable by Landlord from Tenant.

            (c) No failure by Landlord to insist upon the strict performance of
any covenant, agreement, term or condition of this Lease or to exercise any
right or remedy consequent upon breach thereof, and no acceptance of full or
partial Rent during the continuance of any such breach, shall constitute a
waiver of any such breach or of such covenant, agreement, term or condition. No
waiver of any breach shall affect or alter this Lease, but each and every
covenant, agreement, term and condition of this Lease shall continue in full
force and effect with respect to any other then existing or subsequent breach
thereof.

                                       26
<PAGE>
            (d) Each right and remedy of Landlord provided for in this Lease
shall be cumulative and shall be in addition to every other right or remedy
provided for in this Lease or now or hereafter existing at law or in equity, by
statute or otherwise.

            (e) TENANT, FOR ITSELF AND FOR ALL PERSONS CLAIMING THROUGH OR UNDER
IT, HEREBY ACKNOWLEDGES THAT THIS LEASE CONSTITUTES A COMMERCIAL TRANSACTION AS
SUCH TERM IS USED AND DEFINED IN SECTION 52-278 OF THE CONNECTICUT GENERAL
STATUTES, AND HEREBY EXPRESSLY WAIVES ANY AND ALL RIGHTS WHICH ARE OR MAY BE
CONFERRED UPON TENANT BY SAID STATUTORY PROVISION TO ANY NOTICE OR HEARING PRIOR
TO A PREJUDGMENT REMEDY.

            (f) In the event of any breach or threatened breach by Tenant or any
persons claiming through or under Tenant of any of the agreements, terms,
covenants or conditions contained in this Lease, Landlord shall be entitled to
enjoin such breach or threatened breach and shall have the right to invoke any
right and remedy allowed at law or in equity or by statute or otherwise as if
re-entry, summary proceedings or other specific remedies were not provided for
in this Lease.

      20. SUBLEASE OR ASSIGNMENT.

            (a) Neither this Lease, nor the term and estate hereby granted, nor
any part hereof or thereof, shall be subleased, assigned, mortgaged, pledged,
encumbered or otherwise transferred by Tenant by operation of law or otherwise,
and neither the Demised Premises, nor any part thereof, shall be encumbered in
any manner by reason of any act or omission on the part of Tenant or anyone
claiming under or through Tenant. Tenant shall have the right, with the prior
consent of Landlord which consent shall not be unreasonably withheld, to assign
this Lease or to sublet the Demised Premises or any portion thereof provided:

                  (i) Tenant shall furnish Landlord in writing with the name and
business address of the proposed assignee or subtenant, a copy of the proposed
terms of the assignment or subletting including the amounts to be paid by the
assignee or subtenant, and reasonably satisfactory information with respect to
the nature, character or the business and financial condition of the proposed
assignee or subtenant. The

                                       27
<PAGE>
proposed assignee or subtenant must, in the reasonable judgment of the Landlord,
be of a character, engage in a business and maintain a financial condition which
is in keeping with the standards of Landlord for the Building and the Park.

                  (ii) The purposes for which the proposed assignee or subtenant
intends to use the Demised Premises are expressly permitted by this Lease;

                  (iii) No subletting shall be for a term (including renewals,
if any), ending later than one day prior to the Expiration Date of this Lease;

                  (iv) No Event of Default shall have occurred and be continuing
either at the time that Landlord's consent to any assignment or subletting is
required or on (i) the proposed effective date of the assignment or sublease, or
(ii) the date of the commencement of the term of the assignment or sublease;

                  (v) Tenant agrees to pay Landlord, in consideration for
Landlord's consent to the assignment or sublease, fifty percent (50%) of any
profits on such sublease or assignment. For purposes of this provision, "profit"
shall be the difference between (i) all payments made by a subtenant or assignee
to Tenant as rent or otherwise under or in connection with the sublet or
assignment after deduction of customary broker commissions, tenant improvements
tenant improvement allowances and attorneys' fees incurred by Tenant, and (ii)
the Fixed Annual Rent and Additional Rent payable with respect to the space
affected by the sublet or assignment;

                  (vi) Tenant agrees to pay to Landlord an amount that will
reimburse Landlord for reasonable legal fees actually incurred by it to engage
outside counsel to assist it in reviewing and approving the proposed assignment
or subletting not to exceed $2,500; and

                  (vii) Tenant shall deliver to Landlord an executed copy of
each assignment or subletting agreement as may be authorized by this Paragraph
within ten (10) days following the execution of any such agreement.

            (b) Upon receipt of Tenant's notice regarding a proposed subletting
of all or substantially all of the Demised Premises or an assignment of this
Lease, Landlord shall have the right, to be exercised by giving written notice
to the Tenant within thirty (30) days after such receipt, to recapture the space
described in the Tenant's notice.

                                       28
<PAGE>
Such recapture notice shall terminate this Lease with respect to the space
therein described as of the date stated in Tenant's request notice. If the
Tenant's request notice shall cover all of the Demised Premises and the Landlord
shall give the recapture notice with respect thereto, the Term of this Lease
shall end on the date stated in the Tenant's request notice as if that date were
the Expiration Date. If this Lease be so terminated with respect to less than
the entire Demised Premises, the Rent (including, without limitation, the
"Tenant's Share" and the $2,500/month generator cost) shall be proportionately
adjusted on the basis of the number of square feet retained by Tenant.

            (c) No assignment, subletting or occupancy shall be deemed a waiver
of the provisions in this Paragraph or a release of Tenant from the full
performance by Tenant of all of the terms, conditions and covenants of this
Lease. Each assignee shall assume and be deemed to have assumed this Lease and
shall be and remain liable jointly and severally with Tenant for the payment of
the Fixed Annual Rent and Additional Rent and for the due performance of all the
terms, covenants, conditions and agreements herein contained on Tenant's part to
be performed for the Term of this Lease. Each sublease shall be subject and
subordinate to this Lease and any then or future modifications thereof.

            (d) Anything in this Paragraph to the contrary notwithstanding, the
prior written consent of Landlord shall not be required (and Landlord shall have
no recapture rights) with respect to an assignment of this Lease or a sublease
of part or all of the Demised Premises to an entity controlled by, controlling
or under common control with Tenant ("Tenant Affiliate"). For this purpose
"control" shall mean the possession of the power to direct or cause the
direction of the management and policies of such entity, whether through the
ownership of a sufficient percentage of voting securities, by contract or
otherwise. In connection with an assignment or sublease under this subparagraph
(d), Tenant shall give notice to Landlord at least ten (10) days prior to the
transaction and shall provide Landlord with such information as may be
reasonably requested by Landlord in order to establish the relationship of the
Tenant Affiliate. Notwithstanding the foregoing, the prior written consent of
Landlord shall not be required (and Landlord shall have no recapture right) with
respect to any transaction

                                       29
<PAGE>
entered into by Tenant with an entity into or with which Tenant is merged or
consolidated or with an entity to which all or substantially all of Tenant's
assets or stock are transferred or in connection with a public or private
offering of debt or equity with respect to Tenant; provided, however, that any
such successor entity has a financial condition equal to or greater than Tenant
as of the date hereof, as evidenced by current financial statements provided by
the successor entity at the time of the proposed assignment.

      21. ENVIRONMENTAL MATTERS.

            (a) Tenant shall not cause or permit its agents, employees,
contractors licensees, invitees, subtenants or other occupants of the Demised
Premises to store, use, possess, dispose or release or threaten to release
Hazardous Substance in, on or from any portion of the Demised Premises, Building
or Park in violation of Legal Requirements.

            (b) Tenant shall not cause or permit, on behalf of itself or its
agents, employees, contractors, licensees, invitees, subtenants or other
occupants of the Demised Premises, any violation of any Environmental Laws.

            (c) Tenant shall indemnify, defend and hold harmless Landlord, any
property manager(s) engaged by Landlord, their successors and assigns, each of
their affiliates, parents and subsidiaries, and all partners, trustees,
shareholders, agents, directors, officers and employees of any of the foregoing
from and against any and all claims, demands, penalties, fines, liabilities,
settlements, suits, damages, losses, injuries, costs and expenses of whatever
kind or nature, known or unknown, contingent or otherwise, including, without
limitation, reasonable attorneys' and consultants' fees and disbursements and
investigation and laboratory fees arising out of, and in any way related to: (i)
the storage, use, possession, presence, disposal, release, or threat of release
of any Hazardous Substance as a result of any act or omission of Tenant, its
agents, employees, contractors, licensees, invitees, subtenants or other
occupants of the Demised Premises, in, on, from or affecting the Building; (ii)
any personal injury (including, without limitation, wrongful death) or property
damage (real or personal) arising out of or related to any such Hazardous
Substance; (iii) any lawsuit brought or

                                       30
<PAGE>
threatened, settlement reached or government order relating to such Hazardous
Substance; and/or any intentional or unintentional act or omission on the part
of Tenant, its agents, employees, contractors, licensees, invitees, subtenants
or other occupants of the Demised Premises which violate any Environmental Laws.

            (d) "Hazardous Substance" shall mean any substance or material which
has been determined by any state, federal or local governmental authority to be
capable of posing a risk of injury to health, safety or property, including all
of those materials and substances designated as hazardous or toxic by the
municipality in which the Demised Premises are located, the U.S. Environmental
Protection Agency, the Consumer Product Safety Commission, the Food and Drug
Administration, and any state agencies that have overlapping jurisdiction with
such federal agencies, or any other governmental agency now or hereafter
authorized to regulate materials and substances in the environment.

            (e) "Environmental Laws" shall mean all federal, state and local
environmental laws; regulations and codes.

            (f) The covenants and indemnity in this Paragraph shall survive the
expiration or earlier termination of this Lease.

            (g) Landlord represents to Tenant that it has not received notice
that the Building and the Demised Premises do not comply with Environmental Laws
as of the date hereof. Landlord represents to its best knowledge and belief that
the Building and the Demised Premises do not contain asbestos.

      22. ATTORNMENT.

            Tenant shall attorn to and recognize the purchase, transfer or
assignment of Landlord's interest in the Demised Premises and in the event of
any proceeding brought for the foreclosure of, or in the event of exercise of
the power of sale under any mortgage made by Landlord, Tenant shall attorn to
and recognize such purchaser, transferee, or assignee as Landlord under this
Lease for the balance then remaining of the Lease, subject to all of the terms
of this Lease.

      23. SUBORDINATION.

                                       31
<PAGE>
      All rights of Tenant hereunder shall be subject and subordinate in all
respect to (a) all present and/or future ground leases, overriding leases and
underlying leases, (b) all mortgages and building loan agreements, including
leasehold mortgages and building loan agreements, which may now or hereafter
affect the Building and/or the Demised Premises, in whole or in part,
(hereinafter referred to individually as a "SUPERIOR MORTGAGE" and collectively
as "SUPERIOR MORTGAGES") whether or not the Superior Mortgages shall also cover
other lands and/or buildings, and (c) each and every advance made or hereafter
to be made under the Superior Mortgages and to all renewals, modifications,
replacements, substitutions and extensions of the Superior Mortgages. The
provisions of this Section 23 shall be self-operative and no further instrument
of subordination shall be required. In confirmation of such subordination,
Tenant shall promptly execute and deliver at its own cost and expense any
instrument, in recordable form if required, that Landlord, or the holder of a
Superior Mortgage or any of their respective successors in interest may request
to evidence such subordination and attornment, and Tenant hereby constitutes and
appoints Landlord attorney-in-fact for Tenant to execute any such instrument for
and on behalf of Tenant. Landlord shall (i) obtain a Non-Disturbance Agreement
in favor of Tenant from the landlord under the ground lease to which the
Building is subject, and the present holder of the Superior Mortgage, if any,
and (ii) use commercially reasonable efforts to obtain a Non-Disturbance
Agreement in favor of Tenant, from future holders of Superior Mortgages, which
in all events shall be in such Superior Mortgagee's standard forms. In the case
of future holders of Superior Mortgages, "commercially reasonable efforts" shall
not include payment of consideration to such Superior Mortgagee's and Landlord's
failure to obtain such a Non-Disturbance Agreement shall not constitute a
default by Landlord under this Lease.

      24. SURRENDER.

            (a) On the last day of the Term, or upon any earlier termination of
this Lease, or upon any permitted re-entry by Landlord upon the Demised
Premises, Tenant shall, at its own expense, quit and surrender the Demised
Premises to Landlord broom clean, in good order, condition and repair except for
ordinary wear, tear and damage by

                                       32
<PAGE>
fire or other insured casualty and together with all improvements (subject to
paragraph 11(d) herein) which have been made upon the Demised Premises. Subject
to Paragraph 11(d) Tenant shall remove from the Demised Premises and the
Building all of Tenant's personal property, including, without limitation all
furniture, trade fixtures and equipment and all personal property and personal
effects of all persons claiming through or under Tenant shall pay the cost of
repairing all damage to the Demised Premises and the Building occasioned by such
removal and shall deliver all keys and pass cards to Landlord.

            (b) After the expiration of the Term, or any extension thereof, if
Tenant shall continue in possession thereafter, such possession shall be on a
month-to-month basis upon the same terms of this lease, but Fixed Rent shall be:
(i)one hundred fifty percent (150%) of the Fixed Rent paid during the preceding
expired Term for the period beginning with the first (1st) day and continuing
through the thirtieth (30th) day of such continued possession; (ii) one hundred
seventy-five percent (175) of the Fixed Rent paid during the preceding expired
Term for the period beginning on the thirty-first (31st) day and continuing
through the sixtieth (60th) day of such continued possession; and (iii) two
hundred percent (200%) of the Fixed Rent paid during the preceding expired Term
for the period beginning on the sixty-first (61st) day of such continued
possession and continuing through and including the date upon which Landlord
regains possession of the Demised. Nothing contained herein shall be construed
as a consent by the Landlord to a holdover by Tenant.

            (d) Tenant's obligations under this Paragraph 24 shall survive the
Expiration Date or sooner termination of this Lease.

      25. CERTIFICATES.

            Within fifteen (15) days after request by Landlord for any
legitimate business reason, Tenant from time to time and without charge, shall
deliver to Landlord or to a person, firm or corporation, specified by Landlord,
a duly executed and acknowledged instrument, indicating:

            (a) whether this Lease is in full force and effect, or if not in
full force and effect, the reasons therefore; and

                                       33
<PAGE>
            (b) whether Tenant knows or does not know, as the case may be, of
any default by Landlord in the performance by Landlord of the terms, covenants
and conditions of this Lease, and specifying the nature of such defaults, if
any:

            (c) whether or not there are any then existing setoffs or defenses
by Tenant to the enforcement of this Lease, and if so, specifying same; and

            (d) the date to which the Annual Fixed Rent and Additional Rent have
been paid. Such certification shall stop Tenant from thereafter asserting any
existing default of which Tenant had knowledge as of the date of the
certification.

      26. LANDLORD'S RIGHT OF ACCESS TO DEMISED PREMISES.

            (a) Landlord or Landlord's agents shall have the right (but shall
not be obligated) to enter the Demised Premises in any emergency at any time,
and to perform any acts related to the safety, protection or preservation of the
Demised Premises or the Building.

            (b) At other reasonable times, after giving reasonable notice to
Tenant, Landlord may enter the Demised Premises to examine them and make such
repairs, replacements and improvements as Landlord may deem necessary and
reasonably desirable to the Demised Premises or to any other portion of the
Building, or for the purpose of complying with laws, regulations and other
requirements of governmental authorities. Tenant shall permit Landlord to use,
maintain and replace pipes, wires, conduits and like installations and to
install new concealed pipes, wires, conduits, and like installations in and
through the Demised Premises. Landlord may, during the progress of any work in
the Demised Premises, take all necessary materials and equipment into the
Demised Premises and close or temporarily suspend operation of entrances, doors,
corridors, elevators or other facilities without such interference constituting
an eviction. Except as otherwise set forth in subsection (e) below, Tenant shall
not be entitled to any damages by reason of loss or interruption of business or
otherwise during such periods.

            (c) Throughout the Term, after giving reasonable notice to Tenant,
Landlord shall also have the right to enter the Demised Premises at reasonable
hours for the purposes of showing the same to prospective purchasers or
mortgagees of the

                                       34
<PAGE>
Building, and during the last six (6) months of the Lease Term for the purpose
of showing the same to prospective tenants.

            (d) If Tenant is not present to open and permit an entry into the
Demised Premises upon reasonable notice from Landlord (except in an emergency),
as provided under this Paragraph 26, Landlord or Landlord's agents may enter the
same whenever such entry may be necessary or permissible, by master key or
forcibly, provided reasonable care is exercised to safeguard Tenant's property.
Such entry shall not render Landlord or its agents liable for the entry, nor in
any event shall the obligations of Tenant under this Lease be affected.

            (e) During any time that Landlord is accessing the Demised Premises
as permitted hereunder, Landlord shall use reasonable efforts to minimize any
interference with Tenant's use, occupancy and business conducted at the Demised
Premises.

      27. ADDITIONAL RIGHTS RESERVED TO LANDLORD.

            Subject to the other provisions of this Lease, Landlord shall have
the following additional rights exercisable without notice and without liability
to Tenant for damage or injury to property, person or business, all claims for
damage being hereby released, and without effecting an eviction or disturbance
of Tenant's use or possession or giving rise to any claim for setoffs, or
abatement of Rent:

            (a) To make such changes in the Building, including the Building
equipment and systems, as well as to change the arrangement and/or location of
any cafeteria, conference facility, mechanical rooms, public entrances,
passageways, doors, doorways, corridors, elevators, stairs, toilets, parking
areas or other parts of the Building as Landlord may deem necessary or
desirable, and to change the name, number or designation by which the Building
may be known; provided that (i) Landlord will repair any structural damage
caused to the Demised Premises, and (ii) any such changes shall not unreasonably
deprive Tenant of a reasonable means of access to the Demised Premises or
interfere with the use of the Demised Premises for an unreasonable length of
time.

            (b) To require all persons entering or leaving the Building during
such hours as Landlord may from time to time reasonably determine to identify
themselves to a

                                       35
<PAGE>
watchman by registration or otherwise and to establish their right to enter or
leave Building.

            (c) To approve the weight, size and location of safes, computers and
other heavy articles in and about the Demised Premises and the Building. Such
approval shall not be unreasonably withheld.

            (d) To do or permit to be done any work in or about the Demised
Premises or the Building or any adjacent or nearby building, street, parking
area, land or alley. Except in the case of an emergency, Landlord shall use
reasonable efforts to minimize any interference with Tenant's use, occupancy and
business conducted at the Demised Premises.

            (e) To grant to anyone the exclusive right to conduct any business
or render any services in the Building provided such exclusive right shall not
operate to exclude Tenant from the use expressly permitted by Paragraph 7 or 8.

            (f) To close the Building for repairs, improvements, maintenance,
and in the case of emergencies, at any such reasonable times after Normal
Business Hours as Landlord may determine in its reasonable discretion, subject,
however, to Tenant's right to admittance under such rules and regulations as
shall be prescribed from time to time by Landlord.

            (g) To install, operate, maintain, and employ any security devices,
systems and services in the Building and to include in the Operating Costs the
cost of installing, employing, operating, and maintaining such devices, services
and systems.

            (h) To change the name or street address of the Building.

            (i) To install and maintain a sign or signs on the interior or
exterior of the Building; provided, however, that Landlord shall not obstruct
any windows in the Demised Premises.

            (j) To have access for the Landlord and other tenants of the
Building to any mail chutes located on the Demised Premises according to the
rules of the United States Post Office.

            (k) To retain at all times pass keys and security or alarm system
access cards, keys or codes to or for the Demised Premises.

                                       36
<PAGE>
            (l) To exhibit the Demised Premises to others subject to Paragraph
26 hereof and to display "For Rent" signs on the Demised Premises during the
last six (6) months of the Term of the Lease.

            (m) To take any and all measures, including inspections, repairs,
alterations, decoration, additions and improvements to the Demised Premises or
to the Building, as may be necessary or desirable for the safety, protection or
preservation of the Demised Premises or the Building or the Landlord's
interests, or as may be necessary or desirable in the operation of the Building.

            (n) The Landlord may enter upon the Demised Premises and may
exercise any or all of the foregoing rights hereby reserved without being deemed
liable for an eviction or disturbance of the Tenant's use or possession and
without being liable in any manner to the Tenant and without abatement of rent
or affecting any of the Tenant's obligations hereunder provided that Landlord
shall use reasonable efforts to minimize any interference with Tenant's use,
occupancy and business conducted in the Demised Premises.

            (o) Should any mortgage require a modification or modifications of
this Lease, which modification or modifications will not bring about any
increased cost or expense to Tenant or in any other way materially change the
rights and obligations of Tenant hereunder, then and in such event, Tenant
agrees that this Lease will be so modified.

            (p) The Landlord's title or interest is and always shall be
paramount to the interest of the Tenant, and nothing herein contained shall
empower the Tenant to do any act which can, shall or may encumber such title or
interest.

            (q) Upon reasonable prior notice to Tenant, to perform any act,
obligation or other commitment reasonably required of or by Tenant which Tenant
has not performed for any reason whatsoever, and to charge Tenant as Additional
Rent all reasonable costs and expenses incurred by Landlord for such
performances.

      28. SAFE ENVIRONMENT.

            Landlord considers the safety of all Park employees a matter of
utmost importance. It is essential that all employees of Tenant conduct
themselves in a manner that would not impact their safety or the safety of
others or cause damage to

                                       37
<PAGE>
the Park's buildings or grounds. Accordingly, Tenant is responsible for ensuring
its employees, agents, invitees, licensees:

      -  Adhere to rules regarding driving patterns, including but not limited
         to, speed limits and one-way passageways.

      -  Adhere to the Park cardkey reader policy. Loaning of Park cardkey
         badges or admittance of unauthorized visitors into a building by an
         employee is strictly prohibited.

      -  Notify Landlord when contractors have been employed by Tenant for use
         on the site.

      -  Without limiting any of Tenant's rights pursuant to Paragraph 46,
         notify and seek permission of Landlord prior to erecting or using
         satellite dishes.

      -  Notify Landlord of any situation that may endanger or cause harm to
         employees of the Park.

Tenant warrants and covenants to use reasonable efforts to ensure compliance by
all of its employees and will take immediate corrective action if notified of a
breach by Landlord.

      29. NOTICE.

            Any notice, demand or request required or agreed to be given under
this Lease by either party shall be sufficiently given when mailed by certified
mail, return receipt requested or by a nationally recognized overnight delivery
service, addressed to the party to be notified as follows:

      TO LANDLORD:

            RIVER BEND EXECUTIVE CENTER, INC.
            c/o Ralph Michel
            Vice President
            One Omega Drive
            P.O. Box 4047
            Stamford, CT  06907

      TO TENANT:

            Levin Management Co., Inc.
            One Rockefeller Plaza
            19th Floor
            New York, NY  10020
            Attention: Mr. Glenn Aigen

      with an informational copy to:

            Willkie Farr & Gallagher
            787 Seventh Avenue
            New York, NY  10019

                                       38
<PAGE>
            Attention:  Douglas Ulene, Esq.

      30. QUIET ENJOYMENT

            Landlord covenants that upon Tenant performing and observing all of
Tenant's obligations under the Lease, Tenant may quietly enjoy the Demised
Premises for the Lease Term.

      31. WAIVER OF LIABILITY.

            Anything in this Lease to the contrary notwithstanding, Tenant
agrees that it shall look solely to the estate and property of the Landlord in
the Park (subject to prior rights of any mortgagees of the Park (or any portion
thereof) for the collection of any judgment (or other judicial process)
requiring the payment of money by Landlord in the event of any default or breach
by Landlord with respect to any of the terms, covenants and conditions of this
Lease, and no other assets of Landlord or any stockholder, partner, principal,
investor, officer or director shall be subject to levy, execution, attachment or
other procedure for the satisfaction of the Tenant's remedies.

      The obligations of Landlord or Tenant hereunder do not constitute personal
obligations of any officer, director, partner, owner, stockholder, or employee
of Landlord or Tenant.

      32. NO REPRESENTATIONS.

            Neither Landlord nor Landlord's agents has made any representation,
warranty or promise with respect to the Demised Premises or the Building in
which they are a part except as herein expressly set forth.

      33. OCCUPANCY.

            Landlord reserves the right to establish reasonable rules and
regulations with regard to the occupancy and usage of the Demised Premises,
which shall be limited to the manner and schedule of maintaining the Building,
and Tenant agrees to abide by all such rules and regulations; provided, however,
that in no event shall any such rules or regulations increase Tenant's financial
obligations, or decrease Tenant's rights, under this Lease in any material
respect.. Landlord shall use commercially reasonable efforts to apply and
enforce such rules and regulations uniformly as to all tenants and other
occupants of the Building.

                                       39
<PAGE>
      34. SUCCESSORS AND ASSIGNS.

            This Lease is binding on the parties, their heirs, successors and
assigns, except as otherwise provided herein.

      35. ENTIRE AGREEMENT.

            This Lease contains the entire agreement between the parties and it
may not be changed orally or by any agreement between the parties unless in
writing, signed and acknowledged by the parties or their successors.

      36. INVALIDATION OF PARTICULAR PROVISIONS.

            If any term or provision of this Lease shall be invalid or
unenforceable, the remainder of the Lease shall not be affected and shall be
valid and enforceable to the extent permitted by law.

      37. NOTICE OF LEASE; NO RECORDING.

            The parties agree that neither party hereto will execute a Notice of
Lease or record this Lease.

      38. JANITORIAL SERVICES.

            Tenant is responsible for its own janitorial services.

      39. MOVING-IN, MOVING-OUT OR RELOCATING WITHIN THE BUILDING.

            (a) At least two (2) weeks prior to Tenant moving-in, moving out or
relocating within the building or any sublessee, assignee, agents, servants,
employees or invitees moving-in, moving-out or relocating within the Building,
Tenant must notify Landlord of the time of any such move and obtain Landlord's
written approval. No move-in, move-out or relocation may occur unless
coordinated with Landlord. Subject to the other provisions of this Lease,
(including, without limitation, the waivers of subrogation required under
Paragraph 15(d) hereof). Tenant indemnifies Landlord from all costs and expenses
and any damage to the Building caused by Tenant or any of its contractors,
licensees, agents, servants or employees during such move.

            (b) Tenant acknowledges that Landlord has previously granted the
existing second floor tenant, Lava Trading, Inc., the exclusive use of the
existing elevator serving the Building, on the condition, however, that other
tenants on the second floor of the Building shall be permitted to use said
elevator for the purposes of moving in and moving out of the Building; provided
that Landlord gives Lava Trading, Inc. at least forty-eight (48) hours prior
notice of such proposed use and the use is limited to Normal Business Hours
unless Laving Trading, Inc. agrees otherwise.

            (c) In the event of an emergency necessitating the relocation of the
Tenant's primary office to the Demised Premises, Landlord shall use commercially

                                       40
<PAGE>
reasonable efforts to reach an accommodation with Lava Trading for Tenant's use
of the existing elevator as a means of access and egress to the Demised Premises
by handicapped persons.

      40. NO WAIVER TO LANDLORD.

            The failure of Landlord to insist in any instance on strict
performance of any covenant or condition hereof, or to exercise any option
herein contained, shall not be construed as a waiver of such covenant, condition
or option in any other instance. Unless otherwise expressly provided herein,
this Lease cannot be changed or terminated except in writing.

      41. WAIVER OF TRIAL BY JURY.

            (a) Landlord and Tenant hereby waive trial by jury in any action,
proceeding or counterclaim brought by either against the other on any matter
whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant's use of or occupancy of the Demised
Premises, and any statutory remedy.

            (b) In the event Landlord commences any summary proceeding or other
action for breach of this lease, Tenant covenants and agrees that it will not
interpose any counterclaim of whatsoever nature or description in any such
proceeding unless required to do so to avoid waiving such counterclaim. The
foregoing shall not be construed to prevent Tenant from interposing defenses in
such action or instituting a separate action for damages.

      42. INTEGRATION OF AGREEMENT AND AMENDMENTS.

      This Lease contains the entire agreement of the parties hereto and no
representations, inducements, promises or agreements, oral or otherwise, between
the parties not embodied herein, shall be of any force or effect. If any term or
provision of this Lease shall be invalid or unenforceable, the remaining terms
and provisions hereof shall not be affected thereby. This Lease shall not be
amended except by a writing executed by landlord and Tenant.

      43. GOVERNING LAW.

                                       41
<PAGE>
            This Lease shall be construed and enforced in accordance with the
laws of the State of Connecticut without giving effect to any choice or conflict
of laws principles.

      44. COUNTERPARTS.

            This Lease may be executed in counterparts, it being agreed that
such counterparts taken together shall constitute one and the same agreement.

      45. ROOF-TOP COMMUNICATION EQUIPMENT.

            (a) Tenant may install one (1) small satellite antennae or dish on
the roof of the Building in accordance with the terms of this Section 45 (the
"COMMUNICATIONS EQUIPMENT"), provided that (i) Tenant satisfies in full at
Tenant's expense the requirements of Section 11(b) and all applicable
requirements of governmental authorities relating thereto; (ii) such
installation does not interfere with the Building systems or structure, the
existing communications equipment or areas reserved for communications equipment
of other tenants of the Building or the use and enjoyment of the Building by
such tenants; (iii) the Communications Equipment is located in an area
designated by Landlord, is not visible from the street and does not, in
Landlord's reasonable judgment, adversely affect the aesthetics of the Building;
(iv) the Communications Equipment is for the sole benefit of the Demised
Premises and (v) Tenant shall be responsible, at its expense, for the
installation, maintenance and removal of the Communications Equipment. All
expenses incurred in connection with the installation, maintenance and removal
of the Communications Equipment (including Landlord's reasonable engineering
costs, if necessary, to ensure protection of the Building) shall be Tenant's
sole responsibility. All installations shall be coordinated with the Landlord's
property manager and shall comply with applicable roof warranties, if any.

            (b). At Landlord's request Tenant, at Tenant's expense, shall
relocate the Communications Equipment to other areas of, and temporarily remove
such equipment from, the roof if reasonably necessary to accommodate Landlord's
use and maintenance of the roof and the installation of other communications
equipment thereon. In the event Landlord should determine or be advised that the
operation of the

                                       42
<PAGE>
Communications Equipment should unreasonably interfere with the use and
operation of any other communication or electrical equipment at the Building,
then Tenant shall promptly cause such interference to cease immediately and if
Tenant is unable to operate the Communications Equipment in a manner which
eliminates such interference, then Landlord may terminate the use of the
Communications Equipment immediately upon delivery of notice of such termination
to Tenant.

            (c). Tenant shall be solely responsible for, and shall pay as
Additional Rent, any damage to, or maintenance or restoration of, the Building
(including, without limitation, the roof) and its systems, and equipment located
on the roof caused by the installation, maintenance or removal of the
Communications Equipment. This provision shall survive the termination of the
Lease.

            (d). Landlord shall provide Tenant with reasonable access to the
roof during normal business hours to allow Tenant to install, maintain, repair,
relocate and replace the Communications Equipment. Such access shall be
coordinated with Landlord's property manager who may require that a
representative of the property manager be present at all times that Tenant is
afforded access for the foregoing purposes.

      45. INSTALLATION OF ELEVATOR.

            (a) During the Lease Term , Tenant may, at its option, request that
Landlord install an elevator to provide direct access and egress to the Demised
Premises. Tenant `s request shall be in writing and delivered to Landlord not
later than three hundred sixty (360) days prior to the Expiration Date of the
Lease Term . Upon delivery of Tenant's notice, Landlord shall use commercially
reasonable and diligent efforts to install the elevator. The plans and
specifications of the elevator shall be determined by Landlord in its sole and
absolute discretion.

            (b) In the event that Tenant requests the installation of the
elevator during the first five (5) years of the Lease Term, Tenant shall
contribute the fifty percent (50%) of the total costs of installation (the
"Tenant Contribution"), provided, however that such amount shall not exceed
$50,000. The Tenant Contribution shall be paid to Landlord in its entirety upon
completion of the installation of the elevator.

                                       43
<PAGE>
            (c) In the event that Tenant requests the installation of the
elevator following fifth (5th) year of the Lease Term, the Tenant Contribution
shall be as follows:

                  (i)   Forty percent (40%) of the total costs of installation,
                        not to exceed $40,000, if requested in Lease Year 6;

                  (ii)  Thirty percent (30%) of the total costs of installation,
                        not to exceed $30,000, if requested in Lease Year 7;

                  (iii) Twenty percent (20%) of the total costs of installation,
                        not to exceed $20,000, if requested in Lease Year 8; and

                  (iv)  Ten percent (10%) of the total costs of installation,
                        not to exceed $10,000, if requested in Lease Year 9.

            (d) Landlord shall use commercially reasonable efforts to minimize
any disruption to Tenant's business caused by the installation of the elevator.
Landlord shall install the elevator in such a place so as to reasonable minimize
interference with Tenant's use of the Demised Premises.

                                       44
<PAGE>
            This Lease has been executed as follows:

      In Witness Whereof:

                                    LANDLORD

                                    RIVER BEND EXECUTIVE  CENTER, INC.

                                    By /s/ Ralph Michel
                                      -----------------------------
                                      Ralph Michel
                                      Its Vice President,
                                      Duly Authorized

                                    TENANT

                                    LEVIN MANAGEMENT CO., INC.

                                    By /s/ Glenn A. Aigen
                                      -----------------------------
                                      Its  CFO,
                                      Duly Authorized

                                       45
<PAGE>
State of Connecticut    )
                        ) ss:  Stamford
County of Fairfield     )

            Personally appeared Ralph Michel being the Vice President of River
Bend Executive Center, Inc., signer and sealer of the foregoing instrument, who
acknowledged the same to be his free act and deed and the free act and deed of
River Bend Executive Center, Inc. before me.

                                          -----------------------------
                                          Notary Public/
                                          Commissioner of the Superior Court
                                          My commission expires

State of Connecticut    )
                        ) ss:
County of Fairfield     )

            Personally appeared                             being
of                                     signer and sealer of the foregoing
instrument, who acknowledged the same to be his free act and deed and the free
act and deed of before me.

                                          ----------------------------
                                          Notary Public/
                                          Commissioner of the Superior Court
                                          My commission expires

                                       46
<PAGE>
                                    EXHIBIT A
                                DEMISED PREMISES

<PAGE>
                                   RIDER NO. 1

                             LEASEHOLD IMPROVEMENTS

      This Rider is made and entered into by and between Landlord and Tenant as
of the date set forth in the Lease between Landlord and Tenant to which this
Rider is attached (the "Lease"). The promises, covenants, agreements and
declarations made and set forth, herein are intended to and shall have the same
force and effect as if set forth at length in the body of the Lease. To the
extent that the provisions of this Rider are inconsistent with the terms and
conditions of the Lease, the provisions of this Rider shall control.

      LANDLORD'S WORK

      Landlord's Work shall consist of:

      1.    Landlord shall, at its expense, install a 600 Amp ATS dedicated to
            Tenant's use and interconnect same with full capacity feeders from
            the existing generator and normal utility service.

      2.    Landlord shall configure generator controls so that the generator
            will start and stop via the ATS. .

      3.    Landlord shall provide an electrical submeter on the feed side of
            the ATS.

      4.    Landlord shall install a 600 Amp main distribution panel and feeder
            back to the load side of the ATS. Said panel shall have 3-pole
            branch devices to serve the new 25 ton HVAC Unit, the two (2)
            existing circuit breaker panels and at least two (2) 3-pole spares.
            If the panel is circuit breaker type, it shall be configured to
            accept 225 Amp frame breakers. Tenant shall be solely responsible
            for the separation of the two (2) existing panels that feed the
            Demised Premises and the wiring of said panels to the 600 Amp
            generator panel.

      5.    Landlord will install a new 25-ton roof-top HVAC unit servicing the
            Demised Premises, complete with all electrical and gas connections
            and one (1) thermostat for control of the unit. Landlord shall
            connect the HVAC unit to the existing ductwork serving the Demised
            Premises.

      TENANT IMPROVEMENTS.

      1. Except for Landlord's Work, Tenant shall be responsible for the
construction of all improvements (the "Tenant Improvements") to the Demised
Premises in connection with its occupancy thereof.

      2. Prior to the commencement of any alterations, additions, improvements
or installations in or to the Demised Premises ("Alterations"), Tenant shall
submit to Landlord plans and specifications therefore, as well as the identity
of any proposed contractors, subcontractors or workmen for said Alterations.
Said plans, specifications, contractors, subcontractors and workmen must be
approved in writing by Landlord,
<PAGE>
such approval not to be unreasonably withheld, before such Alterations may be
commenced. In the exercise of such approval, Landlord may verify that the plans
and specifications are of equal standard and quality as similar alterations in
the Park.

      3. Once approved, the Plans and Specifications are hereby incorporated as
an exhibit to this Rider No. 1.

      4. All changes to the Plans and Specifications are subject to Landlord's
approval not to be unreasonably withheld or delayed.

      5. Landlord has agreed to contribute to the cost of the Tenant
Improvements in an amount not to exceed $48,220 which is based upon $10.00 per
rentable square foot (the "Improvement Allowance"). The Improvement Allowance
shall be used solely for the Tenant Improvements (including, ,but not limited
to, the purchase and installation of Supplementary AC and related wiring and
cabling) and shall exclude equipment and movable personal property.

      6. Landlord shall pay the Improvement Allowance upon completion of the
construction of the Tenant Improvements.

      7. As a condition to Landlord's payment of the Improvement Allowance,
Tenant shall submit the following to Landlord at the time it makes any request
for a payment of the Construction Allowance to Tenant:

            (i)   a copy of the contract or contracts pursuant to which payment
                  is being requested;

            (ii)  a copy of all invoices from Tenant's contractors and proof of
                  Tenant's payment thereof in full; (iii) a certification from
                  Tenant's architect construction manager, general contractor or
                  other project manager that the work described in the invoice
                  has been satisfactorily performed; and

            (iv)  mechanics' lien waivers from Tenant's contractors.

      8. Tenant shall be solely responsible for all costs incurred by Tenant, in
connection with the Tenant Improvements in excess of the Improvement Allowance.

      9. At the conclusion of construction, Tenant shall deliver to Landlord,
final plans and a certificate of occupancy and mechanics' lien waivers with
respect to the Tenant Improvements.
<PAGE>
                                   RIDER NO. 3

                          UNCONDITIONAL LEASE GUARANTY

      In consideration of the agreement of_________________________, LLC
("LANDLORD"), to enter into a certain lease for the premises located at
___________________________ (the "LEASE") dated ________, 200___, with
__________________, a ____________________________, ("TENANT")
______________________________, an individual residing at
_________________________ ("GUARANTOR") hereby guarantees to Landlord, its
successors and assigns, the full sum and timely payment of all installments of
rent and other sums due to Landlord under the Lease and the full and timely
performance of all the conditions, provisions and covenants to be performed by
Tenant under the Lease. Guarantor agrees that Landlord shall not be first
required to seek or obtain a judgment against Tenant, or institute any
proceeding or take any other action with respect to Tenant, before Landlord can
enforce its rights under this Guaranty.

      1. GUARANTY. Guarantor guarantees that all sums stated in the Lease to be
payable by Tenant will be promptly paid in full when due, whether at maturity,
by acceleration or otherwise, in accordance with the provisions thereof, and
that Tenant will perform and observe each and every covenant, agreement, term
and condition in the Lease to be performed or observed by Tenant. Unless
otherwise set forth herein, terms used herein and not defined shall have the
meanings ascribed to them in the Lease.

      2. ABSOLUTE NATURE; COSTS OF COLLECTION. This Guaranty shall be
irrevocable, absolute and unconditional, and if for any reason any such sums due
under the Lease or any part thereof, shall not be paid promptly when due,
Guarantor will immediately pay the same to Landlord pursuant to and in
accordance with the provisions of the Lease, regardless of whether Landlord
shall have taken any steps to enforce any rights against Tenant or any other
person to collect such sum, or any part thereof; . Guarantor shall also pay to
Landlord such further amount as shall be sufficient to cover the cost and
expense of collecting such sums, or part thereof, or of otherwise enforcing the
Lease or this Guaranty, including without limitation, in any case, reasonable
counsel fees, court costs and other litigation expenses. Upon Tenant's failure
to perform or observe any covenant, agreement, term or condition in the Lease to
be performed or observed by Tenant, Guarantor will promptly perform and observe
the same or cause the same promptly to be performed or observed.

      3. NO RELEASE; BANKRUPTCY.

            (a) The obligations, covenants, agreements and duties of Guarantor
under this Guaranty shall in no way be released, affected or impaired by reason
of the happening from time to time of any of the following which may occur
without notice to or the consent of Guarantor:

                  (i) the waiver by Landlord of the performance or observance by
Tenant or Guarantor of any of the agreements, covenants, terms of conditions
contained in the Lease or this Guaranty;

                  (ii) the extension, in whole or in part, of the time for
payment by Tenant or Guarantor of any sums owing or payable under the Lease or
this Guaranty, or of any other sums or obligations under or arising out of or on
account of the Lease or this Guaranty, or the extension or renewal of the Lease
or this Guaranty;

                  (iii) any assignment of the Lease or subletting of the
premises demised thereunder or any part thereof;

                  (iv) the modification or amendment of any of the obligations
of Tenant or Guarantor under the Lease or this Guaranty;
<PAGE>
                  (v) any failure, omission or delay on the part of Landlord to
enforce, assert or exercise any right, power or remedy conferred on or available
to it in or by the Lease or this Guaranty, or any action on the part of Landlord
granting indulgence or extension in any form whatsoever;

                  (vi) the voluntary or involuntary liquidation, dissolution,
sale of all or substantially all of the assets, marshaling of assets and
liabilities, receivership, conservatorship, insolvency, bankruptcy, assignment
for the benefit of creditors, reorganization, arrangement, composition or
readjustment of, or other similar proceeding affecting, Tenant or any of its
assets, or the rejection or disaffirmance of the Lease by Tenant or Tenant's
trustee in any such proceeding;

                  (vii) the release of Tenant or Guarantor from the performance
or observance of any of the agreements, covenants, terms or conditions contained
in the Lease or this Guaranty by operation of law; or

                  (viii) the inability of Landlord to enforce any provision of
the Lease against Tenant for any reason.

            (b) Landlord's recovery against Guarantor hereunder shall not be
affected by the amount of any allowable claim in a bankruptcy proceeding
involving Tenant or any other proceeding of the type described in subparagraph
(a)(vi) herein and involving Tenant.

      4. ADEQUATE CONSIDERATION. Guarantor hereby represents and acknowledges
that:

            (a) Guarantor owns a significant equity interest in Tenant;

            (b) Guarantor will receive a direct benefit from the Lease;

            (c) Landlord would not enter into the Lease without the delivery of
this Guaranty; and

            (d) Landlord's willingness to enter into the Lease with Tenant
represents valuable and sufficient consideration for the delivery of this
Guaranty.

      5. MISCELLANEOUS.

            (a) This Guaranty may not be modified or amended, except by a
written agreement duly executed by Guarantor and Landlord.

            (b) All of Guarantor's obligations under this Guaranty are
independent of the obligations of Tenant under the Lease and that a separate
action may be brought against Guarantor, whether or not an action is commenced
against Tenant under the Lease.

            (c) This Guaranty shall be governed by Connecticut law without
regard to its conflicts of laws principals. In the event it becomes necessary
for the Landlord to enforce this Guaranty by legal action, Guarantor hereby
agrees that jurisdiction and venue of such action shall be in Fairfield County,
Connecticut and Guarantor hereby irrevocably and unconditionally submits itself
to the jurisdiction of the courts of the State of Connecticut in connection
therewith.

            (d) This Guaranty shall bind and inure to the benefit of successors
and assigns of Landlord and Guarantor.

            (e) GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHT TO
TRIAL BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY. GUARANTOR HEREBY
ACKNOWLEDGES THAT THIS GUARANTY CONSTITUTES A "COMMERCIAL TRANSACTION", AS SUCH
TERM IS USED AND
<PAGE>
DEFINED IN CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES, AS AMENDED, AND TO
THE EXTENT NOT EXPRESSLY PROHIBITED BY LAW TENANT HEREBY WAIVES ITS RIGHT TO ANY
PREJUDGMENT REMEDY HEARING AS THEREIN OR ELSEWHERE PROVIDED.

            (f) All capitalized terms not defined herein shall have the same
meanings ascribed thereto in the Lease.

      IN WITNESS WHEREOF, Guarantor has executed this Guaranty and has intended
the same to be and become effective as of the ______ day of ______, 200__.

                                                  ______________________________
                                                  Name:
<PAGE>
                                   RIDER NO. 2

                                 OPTION TO RENEW

Tenant shall have one (1) option to renew the Term (the "OPTION"), for a term of
five (5) years, the first option period commencing immediately upon the
expiration of the initial Term (the "OPTION TERM"). The Option Term shall be
upon all of the terms and conditions of this Lease, except that: (i) Fixed Rent
during each year of each Option Term shall be the greater of the (x) fair rental
value of the Premises at the date of the commencement of the Option Term and (y)
the Annual Fixed Rent during the Term of this Lease; and (ii) there shall be no
further options to extend beyond the expiration of the Option Term.

      The Option may be exercised only by notice of exercise given by Tenant to
Landlord not less than ONE HUNDRED EIGHTY (180) days prior to the Expiration
Date of the then existing Term, TIME BEING OF THE ESSENCE, with respect to such
notice. The Option may not be exercised, and this Option shall be void and
without further effect, if (i) the named Tenant shall have subleased more than
fifty percent (50%) of the Premises or assigned this Lease at the time of such
notice or as of the commencement of the Option Term to an entity other than a
Tenant Affiliate or Permitted Assignee; or (ii) Tenant or its successors shall
have committed an Event of Default hereunder which has not been cured at the
time of commencement of any Option Term. Upon exercise of the Option, the
Expiration Date shall be deemed to be the last day of the Option Term.

      Within thirty (30) days following notice of Tenant's exercise of the
Option, Landlord shall deliver to Tenant written notice of its proposed fair
rental value of the Premises. Within thirty (30) days following such delivery of
notice by Landlord, Tenant by written notice delivered to Landlord shall either:
(i) accept the fair rental value as stated by Landlord; (ii) elect to submit to
binding arbitration to determine fair rental value in accordance with the
provisions set forth below; or (iii) rescind the exercise of the Option in which
case the Lease will terminate on the Expiration Date of the original Term (or
immediately preceding Option Term, as the case may be). Failure by the Tenant to
deliver notice under this Section 42 shall automatically constitute a rescission
of the Option(s).

      In the event that Tenant elects to submit to binding arbitration as set
forth
<PAGE>
herein, the fair rental value of the Premises will be determined in Stamford,
Connecticut (the "City") before a single arbitrator as follows:

            (i) Landlord and Tenant shall have ten (10) days within which to
      select one mutually agreeable arbitrator. If Landlord and Tenant fail to
      agree on one arbitrator within the ten-day period, either party may
      promptly request the American Arbitration Association (or it successor) to
      appoint an arbitrator for the matter, and said Association's selection
      shall be binding upon Landlord and Tenant. In all cases, the arbitrator
      shall be an individual with the following qualifications: MAI credentials;
      not less than ten (10) years experience in the business of appraising
      commercial real estate; generally recognized competence in the valuation
      of commercial rental properties in southern Fairfield County; and has
      never been a direct or indirect employee or agent of or consultant to
      either Landlord or Tenant.

            (ii) Not later than the thirtieth (30th) day following the selection
      or appointment of the arbitrator, Landlord and Tenant shall each submit to
      the arbitrator, in writing, a good faith determination of the fair rental
      value of the Premises, in it then existing, "As Is" condition.

            (iii) The arbitrator selected must choose either Landlord's or
      Tenant's good faith determination of the fair rental value of the Demised
      Premises and the arbitrator's choice shall be final and binding upon the
      parties. In determining the fair rental value of the Demised Premises and
      which of Landlord's or Tenant's determinations to select, the arbitrator
      shall consider all relevant factors, and shall give primary consideration
      to the then current market rents in comparable type buildings in downtown
      Stamford, Connecticut for renewal tenants, occupying space similar in size
      and condition to that of the Demised Premises, pursuant to leases having
      terms and conditions similar to those of this Lease. Notwithstanding the
      foregoing, the arbitrator shall not consider any potential savings to
      Landlord by reason of Landlord's not having to secure a new tenant for the
      Premises (including, without limitation, such potential savings as
      brokerage commissions, leasehold improvements, rent concessions or
      abatements, or lost rental income during any
<PAGE>
      period of vacancy). From the date of the later submission of Landlord's or
      Tenant's determination, the arbitrator shall have thirty (30) days within
      which to render a decision as to the fair rental value of the Premises. If
      the arbitrator fails to render a decision within the applicable 30-day
      period, either party shall have the right to apply to the American
      Arbitration Association for a decision. Arbitration conducted under this
      subsection shall be held in the City.

            (iv) The cost of the arbitration shall be shared equally by Landlord
      and Tenant.<PAGE>
                                                                    Exhibit 10.1

IN THE MATTER OF
METROPOLITAN LIFE INSURANCE COMPANY
___________________________________/

                        REGULATORY SETTLEMENT AGREEMENT

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>      <C>                                                                <C>
I.       BACKGROUND AND RECITALS..........................................    1

II.      GENERAL TERMS....................................................    3

         A.   Definitions.................................................    3

III.     REGULATORY SETTLEMENT AGREEMENT TERMS............................   24

IV.      BENEFITS FOR IN-FORCE POLICIES...................................   30

         A.   The Enhanced Future Death/Maturity Benefit..................   30
         B.   The Enhanced Future Termination/Non-Forfeiture Benefit......   33
         C.   The Enhanced Additional Insurance Benefit...................   35
         D.   The Cash Payment Option.....................................   36
         E.   The Prospective Commitment..................................   37

V.       RELIEF FOR DEATH/MATURITY POLICIES: THE ENHANCED
         PAST DEATH/MATURITY BENEFIT......................................   38

         A.   Standard Enhancements.......................................   39
         B.   Additional Enhancements.....................................   40

VI.      BENEFITS FOR TERMINATED POLICIES.................................   41

         A.   The Enhanced Past Termination Benefit.......................   41
         B.   The Settlement Death Benefit................................   42

VII.     MET SERIES ENHANCEMENT...........................................   45

VIII.    UNCLAIMED BENEFITS RELIEF........................................   45

IX.      COMPANY CERTIFICATION OF RELIEF..................................   49

X.       RELIEF QUALIFICATIONS............................................   50

XI.      MINIMUM/MAXIMUM COST OF BENEFITS.................................   56
</TABLE>

                                       i

<PAGE>

                                TABLE OF CONTENTS
                                   (Continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>      <C>                                                                <C>
XII.     NOTICE TO CLASS MEMBERS AND COMMUNICATIONS WITH
         CLASS MEMBERS AND POLICYOWNERS...................................   59

         A.   Class Notice Package........................................   59
         B.   Publication Notice and Other Media Notice...................   63
         C.   Remailing and Additional Notice.............................   64
         D.   Post-Settlement Mailing.....................................   65
         E.   Retention of Administrator..................................   65
         F.   Communication with Class Members, Policyowners and Producers   70

XIII.    ORDER OF DISMISSAL...............................................   71

XIV.     ORDER OF NOTICE, FAIRNESS HEARING AND ADMINISTRATION.............   71

XV.      FINAL APPROVAL, AND FINAL JUDGMENT AND ORDER APPROVING SETTLEMENT   72

XVI.     NEW ENGLAND MUTUAL...............................................   72

XVII.    REGULATORY RESOLUTION............................................   74

XVIII.   MODIFICATION OR TERMINATION OF THIS AGREEMENT....................   76

XIX.     GENERAL MATTERS AND RESERVATIONS.................................   78
</TABLE>

                                       ii

<PAGE>

IN THE MATTER OF
METROPOLITAN LIFE INSURANCE COMPANY

____________________________________/

                         REGULATORY SETTLEMENT AGREEMENT

         THIS REGULATORY SETTLEMENT AGREEMENT (the "Regulatory Settlement
Agreement") is entered into as of this 29th day of August 2002, by and between
Metropolitan Life Insurance Company ("Metropolitan Life" or "MetLife") as party
of the first part, and the State of New York Insurance Department (the
"Department" or "Lead Regulatory Negotiator"), along with the insurance
regulators of each of the states of the United States and of the District of
Columbia that adopt, approve and agree to this Regulatory Settlement Agreement
(the "Participating Regulators"), as parties of the second part.

I.       BACKGROUND AND RECITALS

         A.       On June 22, 2000, the Department issued Supplement No. 1 to
Circular Letter No. 19 (2000) notifying all life insurers and fraternal benefit
societies that the Department was investigating allegations of race-based
underwriting of life insurance by its licensees.

         B.       The Department thereafter conducted an examination with
respect to race-based underwriting practices and policies of MetLife, New
England Mutual Life

<PAGE>

Insurance Company ("New England Mutual Life"), and United Mutual Life Insurance
Company. New England Mutual Life merged with and into MetLife in 1996, and
United Mutual Life Insurance Company merged with and into MetLife in 1992. The
examination included a review of more than 750,000 pages of documents, thousands
of policy application files, extensive data analysis and interviews of current
and former employees and agents.

         C.       Details regarding the scope of, and findings from, the
Department's examination are set forth in a report entitled State of New York
Insurance Department Report on Examination of Metropolitan Life Insurance
Company Regarding Response to Supplement No. 1 to Circular Letter No. 19 (2000)
dated March 1, 2002 (the "Report on Examination").

         D.       Members of the National Association of Insurance Commissioners
("NAIC"), including the Participating Regulators, as the chief regulatory
officials of their respective jurisdictions, agreed that the Department would be
principally responsible as Lead Regulatory Negotiator for negotiating this
Regulatory Settlement Agreement on behalf of and for the benefit of the
Participating Regulators and the NAIC.

         E.       After extensive negotiations, MetLife and the Department have
agreed to enter into this Regulatory Settlement Agreement. This Regulatory
Settlement Agreement provides benefits to current and former policyholders and
others who may have been affected by certain race-based underwriting practices.

         F.       MetLife is a defendant in various lawsuits (collectively, the
"Action"), which are more specifically identified at Section II.A.1.a of this
Agreement and assert,

                                       2

<PAGE>

among other things, racial discrimination claims relating to the pricing,
underwriting, sale, issuance, characteristics, and/or administration of
MetLife's Industrial Policies and Ordinary Policies.

         G.       By the execution of a Stipulation of Settlement (the
"Stipulation of Settlement" or "Settlement Agreement") MetLife has agreed to
settle the Action without admitting the allegations made or any wrongdoing. A
copy of the Stipulation of Settlement accompanies this Regulatory Settlement
Agreement.

         H.       The Department, the Participating Regulators and the Company
desire to resolve all regulatory issues arising from or in any way relating to
race-based underwriting practices, including the subject matter described in the
Report on Examination, on the terms and conditions set forth herein.

IT IS HEREBY STIPULATED AND AGREED:

II.      GENERAL TERMS

         A.       DEFINITIONS

                  1.       As used in this Regulatory Settlement Agreement and
the annexed exhibits (which are an integral part of this Regulatory Settlement
Agreement and are incorporated in their entirety by reference), the following
terms have the following meanings, unless a Section or Subsection of this
Regulatory Settlement Agreement or its exhibits expressly provides otherwise:

                           a.       "Action" shall mean the lawsuit captioned
Thompson, et al. v. Metropolitan Life Insurance Company, No. 00 Civ. 5071 (HB),
and all cases consolidated with it, including, but not limited to, Justin, et
al. v. Metropolitan Life

                                       3

<PAGE>

Insurance Company, No. 00 Civ. 9068 (HB), McCallop v. Metropolitan Life
Insurance Company, No. 01 Civ. 2090 (HB) and Billups v. Metropolitan Life
Insurance Company, No. 01 Civ. 5579 (HB).

                           b.       "Additional Enhancement" shall mean the
enhancements or payments, in addition to the enhancements or payments provided
as Standard Enhancements (defined in Section II.A.1.jjjj, below), that shall be
provided to Holders of certain In-Force Policies and Death/Maturity Policies
pursuant to this Regulatory Settlement Agreement.

                           c.       "Additional Insurance" shall mean paid-up
insurance additional to the Face Amount of a Policy, having its own contractual
cash values.

                           d.       "Additional Premium" shall mean the
annualized amount by which the premiums paid for a New England Mutual Affected
Policy exceeded the premiums that were charged for an otherwise identical life
insurance policy insuring a person of the same age and issued with a standard
risk classification.

                           e.       "Adjustment Amount" shall mean the sum of
(i) all Additional Premiums on a New England Mutual Affected Policy and (ii)
interest on each Additional Premium accumulated at 4% per annum from the premium
due date to the date that the benefit under Section XVI is provided.

                           f.       "Administrator" shall mean any third-party
agents or administrators whom the Company shall retain to help implement the
terms of this Regulatory Settlement Agreement.

                                       4

<PAGE>

                           g.       "Affinity Group" shall mean (i) the Class
Member or his or her spouse, sibling, parent or child (including a stepchild
residing with the Class Member), and/or (ii) any person in whom the Class Member
has an insurable interest; provided however, that no member of the Affinity
Group shall be over age 72 as of January 1, 2004.

                           h.       "Agent Script" shall mean the script that
the Company shall disseminate to its current Producers, as further described in
Section XII.F.3 below.

                           i.       "Agreement" or "Regulatory Settlement
Agreement" shall mean this Regulatory Settlement Agreement and the attached
exhibits, including any subsequent amendments thereto and any exhibits to such
amendments.

                           j.       "Alternate Covered Person" shall mean, for
purposes of any Settlement Death Benefit provided pursuant to Section VI.B, a
person who is a member of the Class Member's Affinity Group who is designated
pursuant to the terms of Section VI.B.7 as the person upon whose qualifying
death the Settlement Death Benefit provided under this Agreement shall be paid.

                           k.       "Alternate Recipient" shall mean such person
as the Class Member may choose to receive the SDB payment pursuant to the terms
and conditions set forth in Section VI.B below.

                           l.       "Amended Complaint" shall mean the Amended
Consolidated Class Action Complaint in the Action filed by Plaintiffs on July
19, 2002.

                           m.       "Application File" shall mean the
application submitted for the Policy; any statement of the agent or other sales
representative submitted in

                                       5

<PAGE>

connection with the application for the Policy; any report of medical or
paramedical examination obtained in connection with the underwriting of the
application; any mercantile report obtained in connection with the underwriting
of the application; and any other documents in the application file for the
Policy.

                           n.       "Automatic Adjustment Date" shall mean a
date selected by the Company that is no more than 40 days following the Final
Settlement Date.

                           o.       "Cash Payment Option" shall mean the option
of Eligible Holders of In-Force Policies to receive a cash payment from the
Company instead of the Enhanced Future Death/Maturity Benefit, the Enhanced
Future Termination/Non-Forfeiture Benefit and the Enhanced Additional Insurance
Benefit, as described in Section IV.D below.

                           p.       "Cash Payment Option Election Letter" shall
mean the letter sent to the Holders of In-Force Policies, substantially in the
form attached hereto as Exhibit J, by which such Class Members may exercise
their right to receive a cash payment from the Company instead of the Enhanced
Future Death/Maturity Benefit, the Enhanced Future Termination/Non-Forfeiture
Benefit and the Enhanced Additional Insurance Benefit, as described in Section
IV.D below.

                           q.       "Cash Value" shall mean the cash value
associated with a Policy's Face Amount. For each Policy other than any Policy
that went onto an extended term-insurance non-forfeiture status and then expired
prior to January 1, 1968, the cash value associated with the Policy's Face
Amount shall not be reduced by any policy loan.

                                       6

<PAGE>

                           r.       "Claim Form" shall mean the form included
with the Class Notice Package that Holders of certain Policies shall be required
to complete and submit in order to become Eligible Holders, pursuant to Sections
X.B and X.E below. The Claim Form shall be in substantially the form appended
hereto as Exhibit A, and shall be contained in a wrapper that clearly indicates
that (i) a Claim Form is enclosed, (ii) the Claim Form must be submitted to
obtain settlement benefits unless a Statement of Benefits included in the Class
Notice Package states that submission of the Claim Form for the Policy is
unnecessary, and (iii) Claim Forms must be postmarked by the Claim-In Date.

                           s.       "Claim-In Date" shall mean the date 75 days
after the Fairness Hearing.

                           t.       "Claim-Resolution Date" shall mean the date
by which all disputes concerning the eligibility for settlement benefits of any
person or entity who submits a Claim Form shall be finally resolved pursuant to
Section X.G below, which date shall be no later than 195 days after the Claim-In
Date.

                           u.       "Class" or "Class Members" shall mean all
Holders (including their estates) of Policies, but shall not include (unless and
to the extent such persons or entities are Class Members by virtue of their
status as Holder of another Policy) the following: (i) any Excluded Entity; (ii)
any persons or entities who are Holders (or their estates) of a Policy (a) for
which a timely request for exclusion from the proposed class has been received
from any Holder or Estate Holder; (b) that was issued by the Company, but not
accepted and paid for, or was returned to the Company as part

                                       7

<PAGE>

of the exercise of a free look provision in the Policy; or (c) that is the
subject of a release signed by any person or entity while represented by counsel
settling a claim or dispute and releasing Metropolitan Life from any further
liability concerning such Policy; and (iii) any insurance company that owns or
owned a Policy pursuant to an absolute assignment effected as part of an
exchange under section 1035 of the Internal Revenue Code.

                           v.       "Class Counsel" shall mean Milberg Weiss
Bershad Hynes & Lerach LLP; Bonnett, Fairbourn, Friedman & Balint, P.C.; James,
Hoyer, Newcomer & Smiljanich, P.A.; Watson Jimmerson Givhan & Martin, P.C.;
Whatley Drake, LLC; Arnzen, Parry & Wentz, P.S.C.; Herman Herman Katz & Cotlar,
LLP; Carter & Cates; The Nygaard Law Firm; Barrett, Towmey, Broom, Hughes &
Wesley; Campbell, Waller & Loper, LLC; Foote, Meyers, Miekle, Flowers & Solano,
LLC; and Specter Specter Evans & Manogue, P.C.

                           w.       "Class Notice" shall mean the notice of the
terms of the proposed settlement included in the Class Notice Package.

                           x.       "Class Notice Package" shall mean the notice
package, as approved in form and content by the Department, Lead Counsel and the
Company, and the Court, and substantially in the form attached hereto as Exhibit
A, to be provided to Class Members pursuant to Section XII.A of this Regulatory
Settlement Agreement. The Class Notice Package shall include (i) the Class
Notice, (ii) a Claim Form, and (iii) in the case of Database Policies, a
Statement of Benefits.

                                       8

<PAGE>

                           y.       "Company" or "Metropolitan" or "Metropolitan
Life" shall mean Metropolitan Life Insurance Company.

                           z.       "Company's Counsel" shall mean the law firm
of Debevoise & Plimpton.

                           aa.      "Confirmatory Letter" shall mean the letter,
in the form attached hereto as Exhibit K, to be sent to the last-known address
on the Company's electronic records of payees of certain Death/Maturity Policies
as updated hereunder, seeking to confirm the address of such payee or to obtain
an updated address for such payee postmarked within 30 days of the date of the
letter, as described in Section X.C.3 below.

                           bb.      "Court" shall mean the United States
District Court for the Southern District of New York, where the Action is
pending.

                           cc.      "Covered Met Series Policy" shall mean any
life insurance policy described in Exhibit N hereto.

                           dd.      "Covered Person" shall mean the person upon
whose qualifying death the Settlement Death Benefit provided under this
Agreement will be paid, which person shall be the insured under the Policy
making the Class Member eligible for relief, unless the Class Member designates
an Alternate Covered Person pursuant to Section VI.B.7 below.

                           ee.      "Database Policies" shall mean (a) any
Policy for which the insured is reflected on the Company's electronic records as
non-Caucasian; (b) any 1920-1929 Intermediate Policy and any Other Industrial
Monthly Substandard

                                       9

<PAGE>

Policy on the Company's electronic records for which the race of the insured is
identified in the Application File as other than Caucasian; and (c) any
1930-1935 Ordinary Substandard Policy, 1927-1929 Industrial Monthly Substandard
Policy or Industrial Weekly Substandard Policy on the Company's electronic
records for which the race of the insured is not identified in the Company's
electronic records as Caucasian.

                           ff.      "Death/Maturity Policies" shall mean any
Policy on which, prior to the Eligibility Date, a death, maturity or endowment
benefit has been paid or has become payable pursuant to its terms.

                           gg.      "Domestic Partner" shall mean an individual
who, prior to the death of a Holder:

                                    (i)      Lived with the Holder in an
intimate and committed relationship of mutual caring at a time where both
individuals were at least 18 years of age and neither individual was married or
in another domestic partnership;

                                    (ii)     Shared the same residence with the
Holder at the time of the Holder's death; and

                                    (iii)    Agreed with the Holder to be
jointly responsible for basic living expenses incurred during the domestic
partnership.

                           hh.      "Early Termination Adjustment" shall equal
X/Y, where:

                                    (i) X equals the number of years that a
Policy was premium-paying; and

                                       10

<PAGE>

                                    (ii)     Y equals the lesser of (a) the
number of years that the Company required premiums to be paid for the Policy
absent the death of the insured and (b) 2002 minus the year in which the Policy
was issued.

                           ii.      "Eligibility Date" shall mean August 19,
2002.

                           jj.      "Eligible Holder" shall mean a Holder who
has satisfied the requirements, if any, set forth in Section X below. Only those
Holders who are Eligible Holders shall be entitled to receive benefits under
this Agreement.

                           kk.      "Enhanced Additional Insurance Benefit"
shall mean the Additional Insurance to be provided to Eligible Holders of
certain In-Force Policies under this Regulatory Settlement Agreement, as
described in Section IV.C below.

                           ll.      "Enhanced Future Death/Maturity Benefit"
shall mean the terminal dividend (composed of a Standard Enhancement and, where
applicable, an Additional Enhancement) to be provided to Eligible Holders of
certain In-Force Policies under this Regulatory Settlement Agreement, as
described in Section IV.A below.

                           mm.      "Enhanced Future Termination/Non-Forfeiture
Benefit" shall mean the surrender dividend (composed of a Standard Enhancement
and, where applicable, an Additional Enhancement) to be provided to Eligible
Holders of certain In-Force Policies under this Regulatory Settlement Agreement,
as described in Section IV.B below.

                           nn.      "Enhanced Past Death/Maturity Benefit" shall
mean the cash payment to be provided to Eligible Holders of Death/Maturity
Policies under this Regulatory Settlement Agreement, as described in Section V
below.

                                       11

<PAGE>

                           oo.      "Enhanced Past Termination Benefit" shall
mean the cash payment to be provided to Eligible Holders of certain Terminated
Policies under this Regulatory Settlement Agreement, as described in Section
VI.A below.

                           pp.      "Estate Holder" shall mean, with respect to
any Policy for which all Eligible Holders are deceased, any estate of a Holder
of the Policy that satisfies the requirements of Section III.C below.

                           qq.      "Excluded Entity" shall mean any entity that
is not a natural person (such as a funeral home, creditor, institutional
assignee or state government, or any branch, department or entity thereof) and
that is an assignee of the benefits of, or is not an owner of, a Policy.
Excluded Entities shall not be Class Members and shall not be eligible to
receive any benefit provided under this Agreement, whether directly, indirectly,
or on behalf of, or on account of benefits made available to, a Class Member.

                           rr.      "Execution Date" shall mean the first date
on which the Settlement Agreement in the Action has been executed.

                           ss.      "Face Amount" shall mean the amount of
insurance specified on the face of the Policy, including any additions to such
amount of insurance by Company liberalizations, equalizations or other
enhancements.

                                    (i)      The Face Amount of a Policy shall
be exclusive of any Additional Insurance, ancillary benefit or rider coverage;
provided however, that if a Policy has paid or pays in the future an accidental
death benefit in addition to the amount of insurance specified on the face of
the Policy (including any additions thereto by

                                       12

<PAGE>

Company liberalizations, equalizations or other enhancement), then the
accidental death benefit shall be included as part of the Face Amount.

                                    (ii)     Except as provided in Section
II.A.1.ss(iii) below, the Face Amount of a Policy that is providing reduced
paid-up insurance coverage under a contractual non-forfeiture option shall be
the amount of reduced paid-up insurance coverage provided under that option.

                                    (iii)    For purposes of the calculation of
any Settlement Death Benefit pursuant to Section VI.B below, (a) the Face Amount
of any Policy on a reduced paid-up non-forfeiture status shall equal the face
amount of the Policy at the time that it was issued; and (b) for any Industrial
Weekly Policy that was issued in a substandard policy plan, and that was placed
on a reduced paid-up non-forfeiture status at any time, the Face Amount of the
Policy shall equal the face amount of the Policy at the time that it was issued,
multiplied by 1.32.

                           tt.      "Fairness Hearing" shall mean the hearing at
or after which the Court will make a final decision whether to approve the
Settlement Agreement in the Action.

                           uu.      "Final Judgment" shall mean the judgment
entered pursuant to the Order Approving Settlement in the Action.

                           vv.      "Final Settlement Date" shall mean the date
on which the Final Judgment and Order Approving Settlement in the Action become
final. For purposes of this definition, the Final Judgment and Order Approving
Settlement in the Action shall become final:

                                       13

<PAGE>

                                    (i)      if no appeal is taken therefrom, on
the date on which the time to appeal has expired;

                                    (ii)     if any appeal is taken therefrom,
on the date on which all appeals therefrom, including petitions for rehearing or
reargument, petitions for rehearing en banc and petitions for certiorari or any
other form of review, have been finally disposed of in a manner resulting in an
affirmance of the Final Judgment and Order Approving Settlement; or

                                    (iii)    on a date after entry of the Final
Judgment and Order Approving Settlement, which date counsel for the Plaintiffs,
the Company and the Department agree to in writing.

                           ww.      "Hearing Order" shall mean the order to be
entered by the Court concerning notice, administration and the Fairness Hearing,
as contemplated in Section XVI of the Settlement Agreement in the Action, and
substantially in the form attached hereto as Exhibit D.

                           xx.      "Holders" shall mean, with respect to any
Policy, the following persons and entities:

                           (i)      All past and present owners of Ordinary
                                    Policies;

                           (ii)     All past and present insureds under
                                    Industrial Policies;

                           (iii)    All individual assignees of Industrial
                                    Policies that have been assigned by the
                                    Policy's named Insured; and

                           (iv)     All payees of the contractual death benefits
                                    of Policies, where such death benefits
                                    became payable prior to the Eligibility Date
                                    based upon the death of the insured under
                                    the Policy.

                                       14

<PAGE>

                           yy.      "Identifying Information" shall mean either
(i) the policy number for a Policy or (ii) the alternative identifying
information requested by Exhibit E hereto. Persons or entities who have
completed and submitted Claim Forms postmarked on or before the Claim-In Date
shall be given a reasonable opportunity to provide additional Identifying
Information if such information is required to locate a Policy; provided
however, that all such additional Identifying Information must be postmarked
within 60 days of the Claim-In Date.

                           zz.      "Implementation Period" shall mean a period
of time that (i) commences on a date selected by the Company, is communicated in
writing to the Department, and is on or before the later of (a) 30 days after
the Final Settlement Date and (b) 130 days after the Claim-Resolution Date; and
(ii) ends on a date 150 days after it commences.

                           aaa.     "Industrial Monthly Policies" shall mean (i)
any 1927-1929 Industrial Monthly Substandard Policy, (ii) any Other Industrial
Monthly Substandard Policy and (iii) any Industrial Monthly Standard Policy.

                           bbb.     "Industrial Monthly Standard Policy" shall
mean any life insurance policy issued by the Company from its Industrial
Department insuring the life of a non-Caucasian, issued in a standard policy
plan or with a standard risk classification, and on which the policy's terms
required payment of monthly premiums.

                           ccc.     "Industrial Policies" shall mean Industrial
Monthly Policies and Industrial Weekly Policies.

                                       15

<PAGE>

                           ddd.     "Industrial Weekly Policies" shall mean (i)
any Pre-1948 Industrial Weekly Substandard Death/Maturity Policy, (ii) any
Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policy, (iii) any Pre-1963
Industrial Weekly Substandard Terminated Policy and (iv) any other life
insurance policy issued by the Company from its Industrial Department insuring
the life of a non-Caucasian, and on which the policy's terms required payment of
weekly premiums.

                           eee.     "Industrial Weekly Substandard Policies"
shall mean any life insurance policy issued by the Company from its Industrial
Department in a substandard policy plan, on which the policy's terms required
payment of weekly premiums, and for which the Company's records do not indicate
the race of the insured as Caucasian.

                           fff.     "In-Force Policies" or "In Force" shall
mean, for purposes of this Regulatory Settlement Agreement only, any Policy that
is providing insurance coverage as of the Eligibility Date, including Policies
that as of the Eligibility Date are (a) fully paid-up; (b) providing coverage as
reduced paid-up or extended term insurance under a contractual non-forfeiture
provision; or (c) in the process of escheatment to any state but for which a
returned Claim Form discloses information sufficient to identify the appropriate
payee of the Policy's benefits.

                           ggg.     "Interest" shall mean simple interest at 4.0
percent per annum calculated to the first day of the Implementation Period, and
commencing on the later of (i) the date of the Policy's termination, maturity,
or payment of death benefit, as applicable, or (ii) January 1, 1975.

                                       16

<PAGE>

                           hhh.     "Issue Date" shall mean the "issue date"
set forth in the Policy contract.

                           iii.     "Lead Counsel" shall mean the law firms of
Milberg Weiss Bershad Hynes & Lerach LLP; Bonnett, Fairbourn, Friedman & Balint,
P.C.; and Herman Herman Katz & Cotlar, LLP.

                           jjj.     "Neutral" shall mean a third-party to whom
the Department, the Company and Lead Counsel shall agree, which third-party
shall resolve disputes as to whether a person or entity who has submitted a
Claim Form and, when requested, other Identifying Information is entitled to
benefits under this Settlement Agreement, as described in Section X.G below.

                           kkk.     "New England Mutual Affected Policy" shall
mean one of the seven life insurance policies issued by New England Mutual, and
identified by the Department in its Report on Examination of Metropolitan Life
Insurance Company Regarding Response to Supplement No. 1 to Circular Letter No.
19 (2000), as having been issued with a substandard "Special Class B" risk
rating and for which the examiners' review identified no race-neutral basis for
the rating.

                           lll.     "1930-1935 Ordinary Substandard Policies"
shall mean any life insurance policy issued by the Company from its Ordinary
Department in the Endowment at 80, 25-Year Endowment or 25-Pay Life policy plan,
from January 1, 1930 through December 31, 1935, for which the Company's records
do not indicate the race of the insured as Caucasian.

                                       17

<PAGE>

                           mmm.     "1920-1929 Intermediate Policies" shall
mean any life insurance policy insuring the life of a non-Caucasian issued by
the Company from January 1, 1920 through December 31, 1929 in an intermediate
policy plan.

                           nnn.     "1927-1929 Industrial Monthly Substandard
Policies" shall mean any life insurance policy issued by the Company from its
Industrial Department in a substandard policy plan from January 1, 1927 through
December 31, 1929, for which the Company's records do not indicate the race of
the insured as Caucasian, where such policy's terms required payment of a stated
amount of premiums per month.

                           ooo.     "Notice Card" shall mean the card,
substantially in the form attached hereto as Exhibit F, that the Company shall
make available to its Producers, and that the Administrator shall make available
to certain others (by hand, mail, or via the Internet, including the
Administrator's Web site), to give to Class Members who inquire about this
Regulatory Settlement Agreement or Stipulation of Settlement, as further
described in Section XII.F.3 below.

                           ppp.     "Order Approving Settlement" shall mean the
order entered by the Court approving the Settlement Agreement in the Action.

                           qqq.     "Ordinary Policies" shall mean all Ordinary
Substandard Policies and Covered Met Series Policies.

                           rrr.     "Ordinary Substandard Policies" shall mean
(i) any 1930-1935 Ordinary Substandard Policy and (ii) any other life insurance
policy, other than a 1920-1929 Intermediate Policy, issued by the Company from
its Ordinary Department

                                       18

<PAGE>

with an intermediate, special-class or other substandard risk classification,
and insuring the life of a non-Caucasian.

                           sss.     "Other Industrial Monthly Substandard
Policy" shall mean any life insurance policy, other than a 1927-1929 Industrial
Monthly Substandard Policy, issued by the Company from its Industrial Department
insuring the life of a non-Caucasian, in an other-than-standard policy plan or
with an other-than-standard risk classification, and on which the policy's terms
required payment of monthly premiums.

                           ttt.     "Other Ordinary Substandard Policies" shall
mean any Ordinary Substandard Policy other than a 1930-1935 Ordinary Substandard
Policy.

                           uuu.     "Parties" or "Party" shall mean the
Department and the Company collectively and, where applicable, their respective
counsel.

                           vvv.     "Plaintiffs" shall mean Karl M. Thompson,
Lucile Ellis, Charlene McCallop, Marguerite Guillmette Justin, Adrienne Delpit
Blazio, Myron Billups (as the administrator of the Estate of Nellie Gillespie)
and any other Class Members added to the Amended Complaint or any subsequent
pleading as named plaintiffs, in their individual and representative capacities.

                           www.     "Policy" or "Policies" shall mean any and
all Industrial Policies, Ordinary Substandard Policies, 1920-1929 Intermediate
Policies and Covered Met Series Policies with an Issue Date during the period
from January 1, 1901 through December 31, 1972, inclusive; provided however,
that any Metropolitan Life insurance policy for which the claims asserted in the
Action have been previously litigated and resolved or dismissed with prejudice,
and are barred by the doctrine of res judicata, shall

                                       19

<PAGE>

not be a Policy; and provided however, that any Metropolitan Life insurance
policy for which any Holder or Estate Holder has timely requested exclusion from
the proposed class shall not be a Policy.

                           xxx.     "Postal Service" shall mean the United
States Postal Service.

                           yyy.     "Post-Settlement Mailing" shall mean the
mailing that the Company shall make starting at the commencement of the
Implementation Period, as described in Section XII.D below. The Post-Settlement
Mailing shall be completed within 60 days of the commencement of the
Implementation Period.

                           zzz.     "Preliminary Approval Hearing" shall mean
the hearing at or after which the Court will make a decision whether notice of
the Action and the proposed Settlement Agreement in the Action may be given.

                           aaaa.    "Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies" shall mean any life insurance policy issued by the
Company from its Industrial Department in a substandard policy plan, for which
the Company's records do not indicate the race of the insured as Caucasian, on
which the policy's terms required payment of a stated amount of premiums per
week, and where the policy terminated prior to January 1, 1948 by reason of the
death of the insured or the maturity of the Policy.

                           bbbb.    "Pre-1963 Industrial Weekly Substandard
Non-Forfeiture Policies" shall mean any life insurance policy issued by the
Company from its Industrial Department in a substandard policy plan, for which
the Company's records do not indicate the race of the insured as Caucasian, on
which the policy's terms required

                                       20

<PAGE>

payment of a stated amount of premiums per week, and where the policy went onto
a reduced paid-up or extended term non-forfeiture status prior to January 1,
1963.

                           cccc.    "Pre-1963 Industrial Weekly Substandard
Terminated Policies" shall mean any life insurance policy issued by the Company
from its Industrial Department in a substandard policy plan, for which the
Company's records do not indicate the race of the insured as Caucasian, on which
the policy's terms required payment of a stated amount of premiums per week, and
where the policy lapsed, surrendered, or was terminated (other than by reason of
Policy maturity or the death of the insured) prior to January 1, 1963.

                           dddd.    "Primary Eligible Holder" shall mean, with
respect to any Terminated Policy eligible for the SDB hereunder, the following
Eligible Holder of the Policy:

                                    (i)      For an Industrial Policy, the
insured under the Policy.

                                    (ii)     For an Ordinary Policy, the owner
of the Policy at the time it terminated, or if such person is not an Eligible
Holder, the first Eligible Holder of the Policy to become an Eligible Holder
under Section X below.

                           eeee.    "Producer" shall mean any of the Company's
current account representatives, managers or managing directors.

                           ffff.    "Publication Notice" shall mean the
published notice and other media notice of the proposed settlement, as approved
in form and content by the

                                       21

<PAGE>

Department, counsel for Plaintiffs and the Defendant, and the Court, as
described in Section XII.B.

                           gggg.    "Recipient" shall mean the person or persons
to whom the Settlement Death Benefit under this Agreement shall be paid. Subject
to Section III.F below, the Eligible Holder(s) of the Policy under Section X
below shall be entitled to payments under the SDB, unless the Class Member
designates an Alternate Recipient; provided however, that if the Recipient is
deceased at the time the payment is to be made, the Company may pay the
applicable death benefit to any person named as the beneficiary of the Policy
making the Class Member eligible for the SDB, or if that person is deceased or
cannot be paid for any reason, to any other person who appears to the Company to
be equitably entitled to such payment under Section III.D below.

                           hhhh.    "SDB Certificate" shall mean the
certificate, substantially in the form included at Exhibit H and including a
tear-off sheet for Class Members to designate an Alternate Covered Person and/or
Alternate Recipient, that shall be provided to Eligible Holders of certain
Terminated Policies starting at the commencement of the Implementation Period as
evidence of the benefits provided by the SDB.

                           iiii.    "Settlement Death Benefit" or "SDB" shall
mean a form of relief to be provided to Eligible Holders of certain Terminated
Policies, as described in Section VI.B below.

                           jjjj.    "Standard Enhancement" shall mean the
enhancements or payments that shall be provided to Holders of certain In-Force
and Death/Maturity Policies pursuant to this Regulatory Settlement Agreement.
Wherever a Holder is

                                       22

<PAGE>

eligible for an Additional Enhancement (defined in Section II.A.1.b, above), the
Standard Enhancement calculation shall utilize the Policy's Face Amount, Cash
Value or death or maturity benefit as enhanced by the Additional Enhancement,
exclusive of Interest.

                           kkkk.    "Statement of Benefits" shall mean the
summary of benefits that is included in the Class Notice Package for Database
Policies, and provided upon request to Eligible Holders whose policies have been
confirmed to be Policies or whose Claim Forms identify the number of a Policy
for which information is available on the Company's electronic records, as
described in Section XII.A.4 below.

                           llll.    "Terminated Policies" shall mean any Policy
that, as of the Eligibility Date, has lapsed, surrendered or otherwise
terminated without insurance coverage, and has not been reinstated. For purposes
of this Regulatory Settlement Agreement, the term "terminated" shall not include
policies that, as of the Eligibility Date, are fully paid-up or are providing
coverage as reduced paid-up or extended term insurance under a contractual
non-forfeiture provision.

                  2.       Defined terms used in combination in this Regulatory
Settlement Agreement shall have the combined definitions ascribed to them in the
Regulatory Settlement Agreement. For example, an In-Force Industrial Weekly
Policy shall mean an Industrial Policy that is both an Industrial Weekly Policy
and In Force.

                  3.       Capitalized terms used in this Regulatory Settlement
Agreement but not defined above shall have the meaning ascribed to them in this
Regulatory Settlement Agreement and the attached exhibits.

                                       23

<PAGE>

III.     REGULATORY SETTLEMENT AGREEMENT TERMS

         A.       Pursuant to this Regulatory Settlement Agreement, Class
Members will, depending on their eligibility hereunder, receive one or more
forms of the benefits described in Sections IV through VIII below.

         B.       With respect to each Policy making a Class Member eligible for
benefits, the Policy's Eligible Holder(s) will receive the benefits for which
that Policy is eligible hereunder, subject to the terms of Sections III.C,
III.D, III.E and III.F below; provided however, that for any settlement benefit
payable under this Agreement based upon a Policy for which a death claim is made
following the commencement of the Implementation Period, the settlement benefit
shall be paid to the payee of the Policy's contractual benefits (or, if there is
more than one payee, to each payee in proportion to the relative amounts of
benefits to which each is entitled under the Policy); and provided however, that
in the event of any conflict between this Section III and Section X below, the
provisions of Section X shall govern. No duplicate relief shall be provided to
multiple Holders of the same Policy, or to their estates or descendants.

         C.       If all Eligible Holders associated with a Policy are deceased,
then the Estate Holder(s) may exercise the rights of, and receive all settlement
benefits payable to, the Holders of such Policy, subject to the terms of
Sections III.D, III.E and III.F below. Settlement benefits shall be payable to
the Estate Holder only if, prior to the commencement of the Implementation
Period, either (a) the Holder's estate's administrator submits evidence of his
or her court-appointment as administrator of the

                                       24

<PAGE>

estate or (b) an heir of the Holder submits a declaration, in the form attached
hereto as Exhibit I, establishing the authority of the heir to act for the
Holder's estate.

         D.       For all benefits under this Regulatory Settlement Agreement
other than the SDB:

                  1.       Where more than one person or entity is an Eligible
Holder of a Policy, settlement benefits shall be distributed among such Eligible
Holders in the manner and using the procedures specified in Section III.E below.

                  2.       If all Eligible Holders of a Policy are deceased as
of the Eligibility Date, and more than one person or entity is an Estate Holder
of a Policy, settlement benefits shall be distributed among such Estate Holders
in the manner and using the procedures specified in Section III.E below.

                  3.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.2 above, then any
spouse or Domestic Partner of any Holder may come forward to claim the benefits
for the Policy by submitting a Claim Form received by the Claim-In Date. Where
more than one such person timely claims to be entitled to receive benefits
associated with a Policy, the settlement benefits shall be distributed among
such persons in the manner and using the procedures specified in Section III.E
below.

                  4.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.3 above, then any
child (including stepchildren) of any Holder may come forward to claim the
benefits for the Policy by submitting a Claim Form received by the Claim-In
Date. Where more than one such

                                       25

<PAGE>

person timely claims to be entitled to receive benefits associated with a
Policy, the settlement benefits shall be distributed among such persons in the
manner and using the procedures specified in Section III.E below.

                  5.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.4 above, then any
parent of any Holder may come forward to claim the benefits for the Policy by
submitting a Claim Form received by the Claim-In Date. Where more than one such
person timely claims to be entitled to receive benefits associated with a
Policy, the settlement benefits shall be distributed among such persons in the
manner and using the procedures specified in Section III.E below.

                  6.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.5 above, then any
sibling of any Holder may come forward to claim the benefits for the Policy by
submitting a Claim Form received by the Claim-In Date. Where more than one such
person timely claims to be entitled to receive benefits associated with a
Policy, the settlement benefits shall be distributed among such persons in the
manner and using the procedures specified in Section III.E below.

                  7.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.6 above, then any
grandchild of any Holder, or any offspring of such a grandchild, may come
forward to claim the benefits for the Policy by submitting a Claim Form received
by the Claim-In Date. Where more than one such person timely claims to be
entitled to receive benefits associated with a Policy, the

                                       26

<PAGE>

settlement benefits shall be distributed among such persons in the manner and
using the procedures specified in Section III.E below.

                  8.       If no person or entity is eligible for settlement
benefits under the provisions of Sections III.C through III.D.7 above, then any
other descendant or other relative of any Holder may come forward to claim the
benefits for the Policy by submitting a Claim Form received by the Claim-In
Date. Where more than one such person timely claims to be entitled to receive
benefits associated with a Policy, the settlement benefits shall be distributed
among such persons in the manner and using the procedures specified in Section
III.E below.

                  9.       If, by the Claim-In Date, no person or entity is
eligible for settlement benefits under the provisions of Sections III.C through
III.D.8 above, then the Company may provide the settlement benefits to any other
person appearing to the Company to be equitably entitled to receive the
benefits.

         E.       If more than one person or entity is eligible for benefits
under Section III.D above, then the settlement benefits for the Policy shall be
divided equally among all such persons and entities. In the event both an owner
and a payee of contractual death benefits are Eligible Holders of a
Death/Maturity Ordinary Policy, each shall be eligible at least to the benefits
described in Section XI.D below.

         F.       For the SDB provided under this Regulatory Settlement
Agreement and described in Section VI.B below:

                  1.       If more than one person or entity is an Eligible
Holder, then:

                                       27

<PAGE>

                           a.       Unless an Alternate Recipient is designated,
all Eligible Holders shall be the Recipients under the SDB. Payments under the
SDB shall be made jointly to all Eligible Holders and mailed to the first person
or entity to become an Eligible Holder.

                           b.       The Primary Eligible Holder shall have the
authority to designate an Alternate Covered Person or Alternate Recipient for
the SDB.

                  2.       If all Eligible Holders under a Policy are deceased
as of the Eligibility Date, and more than one person or entity is an Estate
Holder, then:

                           a.       Unless an Alternate Recipient is designated,
all Estate Holders shall be the Recipients under the SDB. Payments under the SDB
shall be made jointly to all Estate Holders and mailed to the first person or
entity to become an Estate Holder.

                           b.       The first Estate Holder satisfying the
requirements of Section III.C above shall have the authority to designate an
Alternate Covered Person or Alternate Recipient for the SDB.

                  3.       If no person or entity is eligible for the SDB
pursuant to Sections III.C, III.F.1 or III.F.2 above, then the first relative of
any Holder to timely submit a Claim Form for the Policy shall be the Recipient
under the SDB and shall have the authority to designate an Alternate Covered
Person or Alternate Recipient for the SDB.

                  4.       If no person or entity is eligible for the SDB
pursuant to Sections III.C, III.F.1, III.F.2 or III.F.3 above, then the Company
may provide the settlement

                                       28

<PAGE>

benefits to any other person appearing to the Company to be equitably entitled
to receive the benefits.

         G.       Notwithstanding any other provision of this Agreement, where
no address is available for an Eligible Holder or other person eligible for
settlement benefits, or where there is an available address but it is known by
the Company to be invalid, no settlement benefits shall be mailed to the
Eligible Holder or other person.

         H.       If any Holder or Estate Holder excludes himself or herself
from the Class with respect to a Policy, all Holders (and their estates) of that
Policy will be deemed to be excluded with respect to that Policy.

         I.       In the event that provision of a particular form of relief
hereunder could cause adverse tax and/or other regulatory consequences to the
Class Member, or to his or her Policy, the Company shall not be obligated to
provide such relief but may, in its sole discretion and as an alternative, make
an economically comparable form of relief available to the Class Member. The
Department shall be notified in advance of any such substitution of relief.

         J.       In the event that the Parties determine that any provision of
this Regulatory Settlement Agreement regarding its implementation has become
administratively impracticable, the Parties may agree to amend or eliminate such
provision as they mutually deem appropriate.

         K.       If a death claim is made under an In-Force Policy, or if an
In-Force Policy matures, after the Eligibility Date but before the commencement
of the Implementation

                                       29

<PAGE>

Period, then the Inforce Policy shall be treated as if it were a Death/Maturity
Policy on the Eligibility Date.

         L.       If an In-Force Policy is terminated after the Eligibility
Date but before the commencement of the Implementation Period, then the In-Force
Policy shall be treated as if it were a Terminated Policy on the Eligibility
Date.

         M.       Pursuant to the terms of Section 8.2(a)(iii) of Metropolitan
Life Insurance Company's Plan of Reorganization under Section 7312 of the New
York Insurance Law as adopted on September 28, 1999 (and subsequently amended
and restated by the Company's Board of Directors), the Company shall neither add
assets to nor deduct assets from the "closed block" (as that term is defined in
the Plan) in connection with this Settlement Agreement without the prior
approval of the Department.

IV.      BENEFITS FOR IN-FORCE POLICIES

         A.       THE ENHANCED FUTURE DEATH/MATURITY BENEFIT

                  1.       Starting at the commencement of the Implementation
Period, Eligible Holders of In-Force Industrial Weekly Policies, In-Force
Industrial Monthly Policies, and In-Force Other Ordinary Substandard Policies
that mature or pay a death benefit in the future shall receive, in addition to
the contractual death or maturity benefit, a terminal dividend in the amount of
the sum of the Standard Enhancement and the Additional Enhancement (if any) for
the Policy (calculated pursuant to Sections IV.A.2 and IV.A.3 below). Eligible
Holders of all such In-Force Policies shall receive the Standard Enhancement.
Eligible Holders of In-Force Pre-1963 Industrial Weekly

                                       30

<PAGE>

Substandard Non-Forfeiture Policies shall receive both the Standard Enhancement
and the Additional Enhancement.

                  2.       Standard Enhancements. The percentage of the Face
Amount at the time of the insured's death or the Policy's maturity (as enhanced
by any Additional Enhancement) constituting the Standard Enhancement shall be as
follows:

<TABLE>
<CAPTION>
Policy Type                                         Percentage Enhancement
-----------                                         ----------------------
<S>                                                 <C>
Industrial Weekly                                           12.5%
Other Industrial Monthly Substandard                        12.5%
Industrial Monthly Standard                                    5%
Other Ordinary Substandard                                    15%
</TABLE>

                  3.       Additional Enhancements. For In-Force Pre-1963
Industrial Weekly Substandard Non-Forfeiture Policies, the Additional
Enhancement to the Policy's Face Amount at the time of the insured's death or
the Policy's maturity shall be calculated, on a Policy-by-Policy basis, based
upon the ratios in Exhibit L hereto. Such Additional Enhancement is designed to
provide In-Force Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policies
with the benefit of the Company's 1963 equalization of Industrial Weekly
Substandard policy non-forfeiture values.

                  4.       In-Force 1920-1929 Intermediate Policies. Eligible
Holders of In-Force 1920-1929 Intermediate Policies shall be provided the
Enhanced Future Death/Maturity Benefit in the form of an increase, at the
commencement of the Implementation Date, of 9% to the Policy's Face Amount and
associated Cash Value.

                  5.       Death Certificate Review Obligation. Starting on the
Final Settlement Date, the Company shall review all future death certificates
submitted in

                                       31

<PAGE>

connection with claims for benefits under life insurance policies that may be
Policies eligible for the Enhanced Future Death/Maturity Benefit depending on
the race of the insured.

                           a.       If, for any such policy, the Company's
review discloses that the insured's race was listed on the death certificate as
other than Caucasian, then the Holders of such Policy shall be deemed Eligible
Holders and the Enhanced Future Death/Maturity Benefit for the Policy shall be
provided, unless all documents in the Application File that describe the
insured's race indicate that the insured's race is Caucasian.

                           b.       If the death certificate does not provide
the race of the insured, then the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) for the life insurance policy. If the Company's review discloses
that the insured's race was identified in any part of the Application File as
other than Caucasian, then the Holders of such Policy shall be deemed Eligible
Holders and the Enhanced Future Death/Maturity Benefit for the Policy shall be
provided.

                  6.       Policy Application File Review Obligation. Starting
on the Final Settlement Date, the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) of any life insurance policy that becomes eligible for payment
of maturity or endowment benefits and that may be a Policy eligible for the
Enhanced Future Death/Maturity Benefit depending on the race of the insured. If,
for any such policy, the Company's review

                                       32

<PAGE>

discloses that the insured's race was listed in any part of the Application File
as other than Caucasian, then the Holders of such Policy shall be deemed
Eligible Holders and the Enhanced Future Death/Maturity Benefit for the Policy
shall be provided.

         B.       The Enhanced Future Termination/Non-Forfeiture Benefit

                  1.       Starting at the commencement of the Implementation
Period, Eligible Holders of In-Force Industrial Weekly Policies, In-Force
Industrial Monthly Policies, and In-Force Other Ordinary Substandard Policies
that lapse, surrender, or otherwise terminate (other than by death or maturity)
in the future, or that are placed on a reduced paid-up or extended term
non-forfeiture status in the future, shall receive a surrender dividend in the
amount of the sum of the Standard Enhancement and the Additional Enhancement (if
any) for the Policy (calculated pursuant to Sections IV.B.2 and IV.B.3 below).
Eligible Holders of all such Policies shall receive the Standard Enhancement.
Eligible Holders of In-Force Pre-1963 Industrial Weekly Substandard
Non-Forfeiture Policies shall receive both the Standard Enhancement and the
Additional Enhancement.

                  2.       Standard Enhancements. The percentage of the Policy's
Cash Value at the time of termination or placement on non-forfeiture status (as
enhanced by any Additional Enhancement) constituting the Standard Enhancement
shall be as follows:

                                       33

<PAGE>

<TABLE>
<CAPTION>
Policy Type                                             Percentage Enhancement
-----------                                             ----------------------
<S>                                                     <C>
Industrial Weekly                                                12.5%
Other Industrial Monthly Substandard                             12.5%
Industrial Monthly Standard                                         5%
Other Ordinary Substandard                                         15%
</TABLE>

                  3.       Additional Enhancements. For In-Force Pre-1963
Industrial Weekly Substandard Non-Forfeiture Policies, the Additional
Enhancement to the Policy's Cash Value at the time of termination or placement
on non-forfeiture status shall be calculated, on a Policy-by-Policy basis, based
upon the ratios in Exhibit L hereto. Such Additional Enhancement is designed to
provide In-Force Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policies
with the benefit of the Company's 1963 equalization of Industrial Weekly
Substandard policy non-forfeiture values.

                  4.       Application of Surrender Dividends to Non-Forfeiture
Policies. For those Policies that are placed on non-forfeiture status after the
commencement of the Implementation Period, the surrender dividend (composed of
the Standard Enhancement plus, where applicable, the Additional Enhancement)
shall be provided in the following form:

                           a.       For Policies placed on an extended term
insurance non-forfeiture status, the surrender dividend shall be added to the
Policy's total cash value for the purpose of calculating the duration of
non-forfeiture benefits provided by the Policy and the amount of cash value
available in the event the Policy is later surrendered for its cash value.

                                       34

<PAGE>

                           b.       For Policies placed on a reduced paid-up
non-forfeiture status, the surrender dividend shall be provided for the Policy
at the time the Policy pays a death benefit or is surrendered for its cash
value.

                  5.       In-Force 1920-1929 Intermediate Policies. Eligible
Holders of In-Force 1920-1929 Intermediate Policies shall be provided the
Enhanced Future Termination/Non-Forfeiture Benefit in the form of an increase,
at the commencement of the Implementation Date, of 9% to the Policy's Face
Amount and associated Cash Value.

                  6.       Policy Application File Review Obligation. Starting
on the Final Settlement Date, the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) of any life insurance policy that terminates and is presented
for payment of cash surrender benefits, and that may be a Policy eligible for
the Enhanced Future Termination/Non-Forfeiture Benefit depending on the race of
the insured. If, for any such policy, the Company's review discloses that the
insured's race was listed in the Application File as other than Caucasian, then
the Holders of such Policy shall be deemed Eligible Holders and the Enhanced
Future Termination/Non-Forfeiture Benefit for the Policy shall be provided.

         C.       THE ENHANCED ADDITIONAL INSURANCE BENEFIT

                  1.       Eligible Holders of In-Force 1920-1929 Intermediate
Policies and In-Force 1930-1935 Ordinary Substandard Policies shall receive at
the commencement of the Implementation Period an increase in the Policy's amount
of insurance coverage in the form of Additional Insurance.

                                       35

<PAGE>

                  2.       For Eligible Holders of In-Force 1920-1929
Intermediate Policies, the amount of Additional Insurance comprising the
Enhanced Additional Insurance Benefit shall equal 35 percent of the Face Amount
of the Policy as of the Eligibility Date; provided however, that for any such
Policy on a non-forfeiture status as of the Eligibility Date, the Face Amount of
the Policy shall be increased by 35 percent. The Enhanced Additional Insurance
Benefit shall be provided in addition to the Enhanced Future Death/Maturity
Benefit and the Enhanced Future Termination/Non-Forfeiture Benefit for which the
Policy is eligible.

                  3.       For Eligible Holders of In-Force 1930-1935 Ordinary
Substandard Policies, the amount of Additional Insurance comprising the Enhanced
Additional Insurance Benefit shall equal 15 percent of the Face Amount of the
Policy as of the Eligibility Date; provided however, that for any such Policy on
a non-forfeiture status as of the Eligibility Date, the Face Amount of the
Policy shall be increased by 15 percent.

         D.       THE CASH PAYMENT OPTION

                  1.       Eligible Holders of any In-Force Policy may, instead
of receiving the Enhanced Future Death/Maturity Benefit, the Enhanced Future
Termination/Non-Forfeiture Benefit or the Enhanced Additional Insurance Benefit,
elect to receive a cash payment from the Company in an amount equal to the cost
for the Policy's settlement benefits pursuant to column 4 of the table in
Section I of Exhibit M hereto.

                  2.       Starting at the commencement of the Implementation
Period and ending no later than 30 days thereafter, the Company shall mail the
Cash Payment Option Election Letter, substantially in the form attached hereto
as Exhibit J, to each Eligible

                                       36

<PAGE>

Holder associated with an In-Force Policy at the address indicated on a Claim
Form for the Policy, or at the last-known address for the Eligible Holder if no
Claim Form is submitted for the Policy. The Cash Payment Option Election Letter
shall indicate both (i) the dollar amounts of the Enhanced Future Death/Maturity
Benefit, the Enhanced Future Termination/Non-Forfeiture Benefit and the Enhanced
Additional Insurance Benefit (if any) for the Policy, together with a general
description of those forms of benefits and (ii) the dollar amount that is
payable in the alternative under the Cash Payment Option. The Cash Payment
Option Election Letter shall contain a tear-off form that allows the Eligible
Holder to request the Cash Payment Option.

                  3.       To exercise the Cash Payment Option described in this
Section IV.D, the Eligible Holder(s) of the Policy must elect the cash payment
by either (i) contacting the Administrator at the Toll-Free Number within 30
days after the date of the Cash Payment Option Election Letter for the Policy or
(ii) completing and returning the form included with the Cash Payment Option
Election Letter (which form must be postmarked no later than 30 days after the
date of the Cash Payment Option Election Letter).

                  4.       Eligible Holders who timely elect the Cash Payment
Option shall be provided their cash payments within 60 days of the date of the
Cash Payment Option Election Letter.

         E.       THE PROSPECTIVE COMMITMENT

                  1.       The Company commits under this Agreement that,
starting at the commencement of the Implementation Period, any future
non-guaranteed policy elements

                                       37

<PAGE>

that may be provided to Holders of 1930-1935 Ordinary Substandard Policies shall
utilize the mortality assumptions and factors utilized for the corresponding
standard policy plan or form issued in the same year to insure persons of the
same issue age in the same risk classification, and with the same Face Amount as
the Policy (as enhanced by the Enhanced Additional Insurance Benefit).

                  2.       The Company commits under this Agreement that,
starting at the commencement of the Implementation Period, any future
non-guaranteed policy elements that may be provided to Holders of 1920-1929
Intermediate Policies shall utilize the mortality assumptions and factors
utilized for the standard risk classification in the corresponding policy plan
or form issued in the same year to insure persons of the same issue age, and
with the same Face Amount as the Policy (as enhanced by the Enhanced Future
Death/Maturity Benefit and the Enhanced Additional Insurance Benefit).

V.       RELIEF FOR DEATH/MATURITY POLICIES:
         THE ENHANCED PAST DEATH/MATURITY BENEFIT

         Eligible Holders of Death/Maturity Industrial Weekly Policies,
Death/Maturity Industrial Monthly Policies, Death/Maturity Ordinary Substandard
Policies and Death/Maturity 1920-1929 Intermediate Policies shall receive a cash
payment equal to the amount that is the sum of the Standard Enhancement and the
Additional Enhancement (if any) for the Policy (calculated pursuant to Sections
V.A and V.B below). Eligible Holders of all such Policies shall receive the
Standard Enhancement. Eligible Holders of Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies, Pre-1963 Industrial Weekly Substandard Non-Forfeiture
Policies and 1927-1929 Industrial Monthly

                                       38

<PAGE>

Substandard Policies shall receive both the Standard Enhancement and the
Additional Enhancement. Such cash payment shall be provided via the
Post-Settlement Mailing, as further described in Section XII.D below.

         A.       STANDARD ENHANCEMENTS

                  1.       For Death/Maturity Industrial Weekly Policies and
Death/Maturity Other Industrial Monthly Substandard Policies, the Standard
Enhancement (if any) shall equal 12.5 percent of the Policy's Face Amount at the
time of the insured's death or the Policy's maturity (as enhanced by any
Additional Enhancement).

                  2.       For Death/Maturity Industrial Monthly Standard
Policies and 1927-1929 Industrial Monthly Substandard Policies, the Standard
Enhancement shall equal 5 percent of the Policy's Face Amount at the time of the
insured's death or the Policy's maturity (as enhanced by any Additional
Enhancement).

                  3.       For Death/Maturity Other Ordinary Substandard
Policies, the Standard Enhancement shall equal 15 percent of the Policy's Face
Amount at the time of the insured's death or the Policy's maturity.

                  4.       For Death/Maturity 1930-1935 Ordinary Substandard
Policies, the Standard Enhancement shall equal 15 percent of the Policy's Face
Amount at the time of the insured's death or the Policy's maturity, multiplied
by the Early Termination Adjustment, accumulated with Interest; provided
however, that the Early Termination Adjustment shall not apply to any such
Policy that paid a death or maturity benefit while providing reduced paid-up
insurance coverage under a contractual non-forfeiture provision.

                                       39

<PAGE>

                  5.       For Death/Maturity 1920-1929 Intermediate Policies,
the Standard Enhancement shall equal the sum of (i) 35 percent of the Policy's
Face Amount at the time of the insured's death or the Policy's maturity,
multiplied by the Early Termination Adjustment, accumulated with Interest; and
(ii) 9 percent of the Policy's Face Amount at the time of the insured's death or
the Policy's maturity, accumulated with Interest; provided however, that the
Early Termination Adjustment shall not apply to any such Policy that paid a
death or maturity benefit while providing reduced paid-up insurance coverage
under a contractual non-forfeiture provision.

         B.       ADDITIONAL ENHANCEMENTS

                  1.       For Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies and Death/Maturity Pre-1963 Industrial Weekly
Substandard Non-Forfeiture Policies, the Additional Enhancement shall equal the
enhancement calculated for the particular Policy using the ratios set forth in
Exhibit L hereto, accumulated with Interest. Such Additional Enhancement shall
be designed to provide these Policies with the benefit of the Company's 1948 and
1963 equalizations of Industrial Weekly Substandard policy amounts of insurance
and non-forfeiture values.

                  2.       For Death/Maturity 1927-1929 Industrial Monthly
Substandard Policies, the Additional Enhancement shall equal 13 percent (for
25-Year Endowment Policies) or 36 percent (for Endowment at 75 Policies) of the
Policy's Face Amount at the time of the insured's death or the Policy's
maturity, accumulated with Interest.

                                       40

<PAGE>

VI.      BENEFITS FOR TERMINATED POLICIES

         A.       THE ENHANCED PAST TERMINATION BENEFIT

                  1.       Eligible Holders of Terminated Pre-1963 Industrial
Weekly Substandard Terminated/Non-Forfeiture Policies, Terminated 1927-1929
Industrial Monthly Substandard Policies, Terminated 1930-1935 Ordinary
Substandard Policies and Terminated 1920-1929 Intermediate Policies shall
receive a cash payment equal to the amount calculated for the Policy pursuant to
Sections VI.A.2 through VI.A.5 below. Such cash payment shall be provided via
the Post-Settlement Mailing, as further described in Section XII.D below.

                  2.       For Terminated Pre-1963 Industrial Weekly Substandard
Terminated/Non-Forfeiture Policies, the cash payment shall equal the enhancement
calculated for the particular Policy calculated using the ratios in Exhibit L
hereto, accumulated with Interest. Such payment shall be designed to provide
Terminated Pre-1963 Industrial Weekly Substandard Terminated/Non-Forfeiture
Policies with the benefit of the Company's 1963 equalization of Industrial
Weekly Substandard policy non-forfeiture values.

                  3.       For Terminated 1930-1935 Ordinary Substandard
Policies, the cash payment shall equal 15 percent of the Cash Value of the
Policy at the time of termination, accumulated with Interest.

                  4.       For Terminated 1920-1929 Intermediate Policies, the
cash payment shall equal the 44 percent of the Cash Value of the Policy at the
time of termination, accumulated with Interest.

                                       41

<PAGE>

                  5.       For Terminated 1927-1929 Industrial Monthly
Substandard Policies, the cash payment shall equal 13 percent (for 25-Year
Endowment Policies) or 36 percent (for Endowment at 75 Policies) of the Cash
Value of the Policy at the time of termination, accumulated with Interest.

         B.       THE SETTLEMENT DEATH BENEFIT

                  1.       Eligible Holders of Terminated Industrial Weekly
Policies, Terminated Industrial Monthly Policies and Terminated Other Ordinary
Substandard Policies shall be entitled to the Settlement Death Benefit ("SDB").
Subject to Section VI.B.7 below, the SDB shall commence on the Final Settlement
Date.

                  2.       For each such Policy making the Class Member eligible
for relief, the SDB shall provide a payment to the Recipient, upon the Company's
receipt of due proof of death of the Covered Person within the 5 years following
the Final Settlement Date, of an amount that is a percentage of the Face Amount
of the Policy at the time of termination (as enhanced by any Additional
Enhancement).

                  3.       For Terminated Industrial Weekly Policies and
Terminated Other Industrial Monthly Substandard Policies, the percentage of the
Face Amount of the Policy at the time of termination that is payable under the
SDB shall be 15.5 percent; provided however, that for Terminated Industrial
Weekly Policies that are eligible for the Enhanced Past Termination Benefit, and
for the sole purpose of calculating the percentage of the Face Amount at
termination payable under the SDB, the Face Amount shall be increased by the
ratio for the Policy provided in Exhibit L.

                                       42

<PAGE>

                  4.       For Terminated Industrial Monthly Standard Policies
and Terminated 1927-1929 Industrial Monthly Substandard Policies, the percentage
of the Face Amount of the Policy at the time of termination that is payable
under the SDB shall be 8 percent; provided however, that for Terminated
1927-1929 Industrial Monthly Substandard Policies, and for the sole purpose of
calculating the percentage of the Face Amount at termination payable under the
SDB, the Face Amount shall be increased by 13 percent (for 25-Year Endowment
Policies) or 36 percent (for Endowment at 75 Policies) to reflect the Enhanced
Past Termination Benefit provided for the Policy.

                  5.       For Terminated Other Ordinary Substandard Policies,
the percentage of the Face Amount of the Policy at the time of termination that
is payable under the SDB shall be 18 percent.

                  6.       At any time prior to the expiration of the SDB or the
death of the Covered Person, the Class Member may designate an Alternate
Recipient by completing and returning the portion of the SDB Certificate that is
designated for that purpose, as shown in Exhibit H hereto, or by submitting such
designation to the Administrator's Internet Web site while it is operational.

                  7.       If the insured under the Policy creating eligibility
for the SDB is deceased as of the Final Settlement Date, then the Class Member
or his or her estate must designate a member of the Class Member's Affinity
Group as an Alternate Covered Person for purposes of the SDB, either (a) by
completing and returning the portion of the SDB Certificate that is designated
for that purpose, as shown in Exhibit H hereto, postmarked within 30 days after
the commencement of the Implementation Period; or

                                       43

<PAGE>

(b) by submitting such designation to the Administrator's Internet Web site
(while it is operational) within 30 days after the commencement of the
Implementation Period. SDB coverage for the Alternate Covered Person shall
commence five days after the date of the postmark of, or submission to the
Administrator's Internet Web site of, the Class Member's designation of the
Alternate Covered Person.

                  8.       Starting at the commencement of the Implementation
Period, the Company shall mail an SDB Certificate, substantially in the form
attached hereto as Exhibit H, to each Eligible Holder entitled to the SDB. The
SDB Certificate shall include a form for designation of an Alternate Covered
Person and an Alternate Recipient.

                  9.       Research Initiative Regarding Terminated Policies
Eligible for the SDB. One year following the end of the Implementation Period,
and annually thereafter until all SDBs provided by this Agreement are no longer
in force, Metropolitan Life shall retain the services of a national information
service bureau (such as TRW, Equifax, or COMSERV, Inc.), subject to the approval
of the Department, for the purpose of determining, based on the social security
numbers of the Covered Persons for all remaining in-force SDBs that are
available to the Company on its electronic records or obtained through Claim
Forms submitted by Class Members, whether any Covered Person covered by an SDB
has died within the coverage period. If (a) the foregoing research reveals that
any such Covered Person has died, and (b) the Company, using its best efforts,
is able to contact the Recipient, and (c) the Recipient qualifies for payment of
the SDB, then the Recipient shall be eligible to receive the payment under the
SDB.

                                       44

<PAGE>

VII.     MET SERIES ENHANCEMENT

         A.       Covered Met Series Policies that are eligible to receive other
benefits pursuant to this Regulatory Settlement Agreement shall receive an
enhancement of an additional three percent to the percentages used to calculate
the benefits to be provided by Sections IV through VI above.

         B.       Covered Met Series Policies that are eligible for no other
benefits under this Regulatory Settlement Agreement shall receive the following
at the commencement of the Implementation Period:

                  1.       For In-Force Policies, either (a) an Enhanced Future
Death/Maturity Benefit of three percent of the Face Amount of the Policy at the
time of death or maturity; or (b) an Enhanced Future Termination/Non-Forfeiture
Benefit of three percent of the Cash Value of the Policy at the time of
termination or placement on non-forfeiture status. Such Policies shall also be
eligible for the Cash Payment Option described in Section IV.D above.

                  2.       For Death/Maturity Policies, a cash payment equal to
three percent of the Policy's Face Amount at the time of the insured's death or
the Policy's maturity.

                  3.       For Terminated Policies, an SDB (as described in
Section VI.B above) with an amount of coverage of three percent of the Policy's
Face Amount at the time of termination.

VIII.    UNCLAIMED BENEFITS RELIEF

         A.       For all Database Policies and Policies for which a Claim Form
has been timely submitted, and for which a death claim was paid in the period
from August 19,

                                       45

<PAGE>

1995 through the Claim-In Date, the Company shall conduct a search for other
Metropolitan Life insurance policies that also insured the person insured under
the Policy in an effort to provide any death or maturity benefits due under any
other such policies, as follows:

                  1.       Within 30 days of the Claim-In Date, the Company
shall perform a comprehensive search, using the Company's electronic policy
databases and the protocols attached hereto as Exhibit C, to determine whether
any other Metropolitan Life insurance policy or policies on those databases
insured the life of the deceased insured under the Policy.

                  2.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time of the death of the insured, was providing life insurance coverage
(including without limitation pursuant to a contractual non-forfeiture option),
and with respect to which a death benefit was not paid, the Company shall use
its best efforts to notify the beneficiary or beneficiaries of the life
insurance policy and pay any death benefits due, plus any statutorily required
interest, regardless of whether such benefits have already escheated to a state
governmental authority.

                  3.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time it reached maturity, was premium-paying, fully paid-up or providing
insurance coverage pursuant to a contractual non-forfeiture provision, and with
respect to which maturity benefits became payable but have not been paid, the
Company shall use its best efforts to notify

                                       46

<PAGE>

the person or entity to whom the policy's maturity benefits were payable (or, if
such a person is deceased, his or her estate) and pay the maturity benefits due,
plus any statutorily required interest, regardless of whether such benefits have
already escheated to a state governmental authority.

                  4.       In addition, if the Company's search reveals that the
deceased insured was covered under any other Metropolitan Life insurance policy
that was also a Policy, then the Policy shall be eligible for the settlement
benefits provided for the Policy under this Regulatory Settlement Agreement.

         B.       For all Policies for which a death claim is paid after the
Claim-In Date, the Company shall conduct a search for other Metropolitan Life
insurance policies that also insured the life of the person insured under the
Policy in an effort to provide any death or maturity benefits due under any
other such policies, as follows:

                  1.       At the time the death claim is made under the Policy,
the Company shall perform a comprehensive search, using its electronic policy
databases and the protocols attached hereto as Exhibit C, to determine whether
any other Metropolitan Life insurance policy or policies on those databases
insured the life of the deceased insured under the Policy.

                  2.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time of the death of the insured, was providing life insurance coverage
(including without limitation pursuant to a contractual non-forfeiture option),
the Company shall use its best efforts to pay the

                                       47

<PAGE>

death benefits due under the life insurance policy, regardless of whether such
benefits have already escheated to a state governmental authority.

                  3.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time it reached maturity, was premium-paying, fully paid-up or providing
insurance coverage pursuant to a contractual non-forfeiture provision, and with
respect to which maturity benefits became payable but have not been paid, the
Company shall use its best efforts to notify the person or entity to whom the
policy's maturity benefits were payable (or, if such a person is deceased, his
or her estate) and pay the maturity benefits due, plus any statutorily required
interest, regardless of whether such benefits have already escheated to a state
governmental authority.

                  4.       In addition, if the Company's search reveals that the
deceased insured was covered under any other Metropolitan Life insurance policy
that was also a Policy, then the Policy shall be eligible for the settlement
benefits provided for the Policy under this Regulatory Settlement Agreement.

         C.       Starting at the commencement of the Implementation Period, the
Company shall search its electronic records that reflect prior escheatments of
life insurance policy benefits to state governmental authorities, using the
protocols attached hereto as Exhibit C, in an effort to identify other life
insurance policies insuring the lives of the persons insured under the Policies.
If this search identifies any such other life insurance policies for which death
or maturity benefits have previously become payable, but which benefits have
been escheated to a state governmental authority, the Company

                                       48

<PAGE>

shall use its best efforts to notify the person or entity to whom the policy's
death or maturity benefits were payable (or, if such a person is deceased, his
or her estate) and pay the death or maturity benefits due, plus any statutorily
required interest.

IX.      COMPANY CERTIFICATION OF RELIEF

         A.       On a date that is not later than six months following the
first anniversary of the end of the Implementation Period, the Company, through
one of its officers who is a member in good standing of the American Academy of
Actuaries, shall provide to the Department a written certification specifying
the actual cost to the Company, determined in accordance with Exhibit M hereto,
of the benefits that have been provided to Class Members pursuant to this
Agreement in the first year following the commencement of the Implementation
Period.

         B.       Such summary shall detail the costs of benefits provided to
Class Members by each type of benefit provided under this Agreement and shall
describe the relevant supporting information on which the summary is based. In
addition, the certification shall contain a signed statement of the actuary
affirming that the actuary has reviewed the relevant supporting information for
the summary, that the actuary has authority to make the certification on behalf
of the Company, and that the summary is accurate to the best of the actuary's
knowledge and belief. Upon request of the Department, the Company shall provide
the Department with the supporting information on which the cost summary is
based.

                                       49

<PAGE>

X.       RELIEF QUALIFICATIONS

         A.       Holders of In-Force Database Policies shall automatically be
Eligible Holders.

         B.       Holders of In-Force Policies that are not Database Policies
shall become Eligible Holders if:

                  1.       All documents in the Policy's Application File that
state the insured's race do not unanimously indicate the race of the insured as
Caucasian, and

                  2.       One of the following conditions applies:

                           a.       A Claim Form identifying the insured,
identifying the race of the insured under the Policy as non-Caucasian and
providing Identifying Information for the Policy has been submitted postmarked
by the Claim-In Date or

                           b.       The Company's review under Section IV.A.5,
Section IV.A.6 or Section IV.B.6 above discloses that the race of the insured
under the Policy is identified as non-Caucasian in the certificate of death for
the insured or in any part of the Policy's Application File.

         C.       Holders of Death/Maturity and Terminated Database Policies for
which the Company paid a death benefit within the seven years preceding the
Eligibility Date, or for which the Company paid a maturity, endowment or cash
surrender benefit on or after January 1, 1989, shall automatically be Eligible
Holders, subject to the following terms and conditions:

                  1.       The Company shall conduct research (using the
National Change of Address database and ChoicePoint) to update the address of
the payee of the Policy's

                                       50

<PAGE>

contractual benefits listed in the Company's records or in a Claim Form
submitted for the Policy.

                  2.       For those Policies for which the payee's address is
updated or confirmed through the research in Section X.C.1 above, starting at
the commencement of the Implementation Period, the Company shall mail any
benefit payments due under this Agreement to the payee (or, if there are
multiple payees, to each payee in proportion to the relative amounts of benefits
to which each is entitled under the Policy); provided however, that if the
Company's records indicate that the payee of the Policy is an Excluded Entity,
then the provisions of Section X.D below shall apply.

                  3.       For those Policies for which the payee's address
cannot be updated or confirmed through the research in Section X.C.1 above, 30
days after the Claim-In Date, the Company shall mail the Confirmatory Letter,
substantially in the form attached hereto as Exhibit K, to the payee of the
Policy's contractual benefits at the payee's last-known address on the Company's
records.

                           a.       If the Company receives an updated address
or confirmation of the address from the payee, either in a writing postmarked
within 30 days of the mailing of such Confirmatory Letter, or by telephone or
e-mail within such period, then starting at the commencement of the
Implementation Period, the Company shall mail any benefit payments due under
this Agreement to the payee at the updated or confirmed address.

                           b.       If the Company does not receive an updated
address or confirmation of the address from the payee in the manner and within
the times specified

                                       51

<PAGE>

in Section X.C.3.a above, then the settlement benefits otherwise payable to the
payee shall increase the benefits that otherwise would be provided to Eligible
Holders, on a proportionate basis based on the cost of each Policy's benefits
(calculated in accordance with Exhibit M hereto).

                  4.       If the Company's records indicate that the payee of
the Policy is an Excluded Entity, then this Section X.C shall not apply and the
provisions of Section X.D below shall apply.

         D.       If the Company's records indicate that the payee of the Policy
is an Excluded Entity, then the Company shall provide the Policy's benefits
under this Agreement to the Policy's contractual beneficiary at his or her
last-known address on the Company's records. If there is no available
contractual beneficiary for the Policy, then the Company shall provide the
Policy's benefits under this Agreement as specified in Sections III.B through
III.F above.

         E.       Holders of all Death/Maturity Policies and Terminated Policies
except those described in Sections X.C through X.D above shall become Eligible
Holders only by submitting a Claim Form postmarked no later than the Claim-In
Date that (i) identifies the insured under the Policy, (ii) identifies the race
of the insured under the Policy as non-Caucasian and (iii) provides Identifying
Information for the Policy; provided however, that no Holder of a Policy shall
be an Eligible Holder if all documents in the Policy's Application File that
state the race of the person insured under the Policy indicate unanimously that
the insured's race is Caucasian.

                                       52

<PAGE>

         F.       The Administrator shall assist with the completion of Claim
Forms as follows:

                  1.       The toll-free telephone number established by the
Administrator shall permit persons seeking to obtain a Class Notice Package to
provide their names, telephone numbers, addresses and policy numbers.

                  2.       The Administrator shall establish an Internet Web
site that, in addition to providing notice of the proposed settlement,
facilitates the electronic submission of Claim Form information. If any person
or entity supplies Claim Form information electronically over the
Administrator's Web site, then to the extent practicable, the Administrator
shall provide such person or entity with a Claim Form that includes the
information that has been electronically submitted, together with a
pre-addressed and postage pre-paid envelope for return of the Claim Form to the
Administrator; provided however, that no Claim Form shall be valid unless it is
completed, signed and returned postmarked by the Claim-In Date.

         G.       Wherever a Claim Form is required by this Regulatory
Settlement Agreement, the Company shall not be obligated to provide settlement
benefits to any person or entity who does not submit a Claim Form and other
Identifying Information sufficient to permit the Company to confirm that the
person or entity is entitled to settlement benefits, subject to the following
conditions:

                  1.       The Company shall use each substantially completed
Claim Form that is submitted by any person or entity on or before the Claim-In
Date to search its electronic databases and paper records in an effort to
identify each life insurance policy

                                       53

<PAGE>

referenced in the Claim Form and determine (a) whether such policy is a Policy
and (b) the person or entity who submitted the Claim Form is an Eligible Holder
or is otherwise eligible for settlement benefits under this Agreement.

                  2.       If the Company's search locates any life insurance
policy referenced in the Claim Form but confirms that such policy is not a
Policy, then as soon as is practicable, but in no event later than 60 days after
the Claim-In Date, the Company shall notify in writing the person or entity who
submitted the Claim Form, via first-class mail to the person's or entity's
address on the Claim Form, (a) of each life insurance policy referenced in the
Claim Form that is not a Policy, (b) of the reasons why each such policy is not
a Policy, (c) that no settlement benefits will be provided for each such policy,
and (d) that the person or entity may raise any questions within 30 days of the
Company's notification. Absent such a written notification by the Company within
60 days of the Claim-In Date, any life insurance policy identified in the Claim
Form shall be deemed a Policy and shall receive the settlement benefits to which
it is entitled under this Agreement.

                  3.       If the Company's search does not locate a life
insurance policy referenced in the Claim Form, then:

                           a.       As soon as is practicable, but in no event
later than 30 days after the Claim-In Date, the Company shall request additional
Identifying Information from the person or entity who submitted the Claim Form.

                           b.       For any such person or entity who supplies
additional Identifying Information postmarked within 30 days of the Company's
request, the

                                       54

<PAGE>

Company shall use the additional Identifying Information to search its
electronic databases and paper records in an effort to identify the life
insurance policy referenced in the Claim Form and determine whether such policy
is a Policy.

                           c.       As soon as is practicable, but in no event
later than 120 days after the Claim-In Date, the Company shall notify in
writing, via first-class mail to the person's or entity's address in the Claim
Form, each person or entity that has submitted a Claim Form and other
Identifying Information to whom the Company determines not to provide settlement
benefits, either (i) because the Company's searches have not located each life
insurance policy referenced in the Claim Form or (ii) because the Company has
located any life insurance policy referenced in the Claim Form but has confirmed
that such policy is not a Policy (in which case the Company's written
notification shall include the matters set forth in Section X.G.2 above).

                  4.       If any notified person or entity objects in writing
to the Company's determination in a writing postmarked within 30 days of the
date of a Company notification under Section X.G.2 or Section X.G.3 above, then:

                           a.       The Company and Lead Counsel shall confer in
good faith to resolve any disagreement concerning the person's or entity's
eligibility for settlement benefits.

                           b.       If the Company and Lead Counsel are unable
to resolve any such disagreement within 15 days of receipt of the person or
entity's written objection, then the Company and Lead Counsel shall submit their
disagreement to the Neutral, who shall determine whether the person or entity is
entitled to settlement benefits, provided

                                       55

<PAGE>

however, that prior to submitting any disagreement to the Neutral, the Company
shall bring that disagreement to the attention of the Department.

                           c.       The Neutral's determinations under this
Section X.G.4 shall be made within 30 days of the submission of the dispute by
the Company and Lead Counsel, but in no event later than the Claim-Resolution
Date.

                           d.       The determinations of the Neutral shall be
final and binding on the Company and Lead Counsel and the person or entity in
question.

         H.       If, in the course of searching for any life insurance policy
identified in a Claim Form or by other Identifying Information, the Company
determines that the life insurance policy is a Policy and that the Company's
records for the Policy list the numbers of other life insurance policies
covering the life of the insured under the Policy, then the Company shall
attempt to determine whether the other policies referenced are also Policies and
provide any settlement benefits for which the Policies are eligible under this
Agreement.

XI.      MINIMUM/MAXIMUM COST OF BENEFITS

         A.       After the deadline under this Agreement for submission of all
Claim Forms has expired, and no later than the commencement of the
Implementation Period, the Company shall compute the total anticipated cost to
the Company of all settlement benefits to be provided to the Class, using the
factors and assumptions set forth in Exhibit M hereto.

                  1.       If the computation in this Section XI.A results in a
total cost to the Company of all anticipated settlement benefits that is less
than $52 million, then all

                                       56

<PAGE>

benefits that otherwise would be provided to Eligible Holders and other eligible
persons and entities shall be increased, on a proportionate basis based on the
cost of each Policy's benefits (calculated in accordance with Exhibit M hereto),
so that the total cost of all anticipated settlement benefits pursuant to the
factors and assumptions set forth in Exhibit M hereto equals $52 million.

                  2.       If the computation in this Section XI.A results in a
total cost to the Company of all anticipated settlement benefits in excess of
$90 million, then all benefits that otherwise would be provided to Eligible
Holders and other eligible persons and entities shall be reduced, on a
proportionate basis based on the cost of each Policy's benefits (calculated in
accordance with Exhibit M hereto), so that the total cost of all anticipated
settlement benefits pursuant to the factors and assumptions set forth in Exhibit
M hereto equals $90 million.

         B.       Within 30 days after the commencement of the Implementation
Period, the Company shall make a charitable contribution to the United Negro
College Fund, Inc. for scholarship purposes in the amount of $5 million;
provided however, that such amount shall be reduced by the excess, if any, of
the total cost to the Company of all anticipated settlement benefits (calculated
in accordance with Section XI.A above) over $85 million.

         C.       No later than 85 days prior to the commencement of the
Implementation Period, the Company may propose to the Department increases in
one or more of the percentages listed in column 3 of the table in Section II of
Exhibit M hereto that, for aggregate cost-calculation purposes, are to be
applied to certain types of In-Force life insurance policies for which no Claim
Form has been submitted and for which the

                                       57

<PAGE>

insured's race is not reflected on the Company's electronic records (referred to
in Exhibit M as policies "Subject to Race Adjustment"). Each such proposed
increase by the Company shall be subject to review by the Department, as
follows:

                  1.       With its proposal, the Company shall provide the
Department and Lead Counsel with the statistical analysis and all data,
assumptions and calculations supporting its proposed increase.

                  2.       The Department and Lead Counsel shall have 30 days
from their receipt of any proposed percentage increase from the Company to
request additional information and express any objection thereto.

                  3.       The Department, Lead Counsel, and the Company shall
attempt to resolve any objections raised by the Department or Lead Counsel
through good-faith negotiations.

                  4.       Any differences among the Department, Lead Counsel,
and the Company that are not resolved by good-faith negotiation within 10 days
of the Department's or Lead Counsel's objection shall be submitted to a
third-party actuary chosen jointly by the Department, Lead Counsel, and the
Company, who shall determine whether the Company's proposed increase is
necessary to accurately estimate the percentage of non-Caucasian insureds under
life insurance policies that are Subject to Race Adjustment, consistent with
generally accepted statistical principles. The third-party actuary shall render
his or her decision within 15 days of submission of the dispute. The third-party
actuary's decision shall be final and binding on the Parties.

                                       58

<PAGE>

         D.       Notwithstanding any other provision of this Regulatory
Settlement Agreement, if any settlement payment or benefit that would otherwise
be provided in the aggregate for a Policy under this Agreement (other than any
Enhanced Future Termination Benefit that may be payable based upon the expiry of
a Policy's term insurance coverage) is less than $10, then such payment or
benefit shall be increased to $10; provided however, that in the event a Policy
is eligible for benefits under both Section VI.A and VI.B above, then both the
payment under Section VI.A and the payment to the Recipient under Section VI.B
shall equal at least $10; and provided however, that the $10 amount shall be
reduced as necessary pursuant to Sections XI.A.2 and XI.C above; and provided
however, that in making the calculations set forth in Section XI.A.1 above, the
total cost of the payment or benefit that otherwise would have been made shall
be calculated as the cost of providing a payment or benefit of $10.

XII.     NOTICE TO CLASS MEMBERS AND COMMUNICATIONS WITH CLASS MEMBERS AND
         POLICYOWNERS

         A.       CLASS NOTICE PACKAGE

                  1.       Subject to the requirements of the Hearing Order and
no later than 85 days before the Fairness Hearing, the Company shall send a
Class Notice Package by first-class mail, postage prepaid, to the last known
address available on the Company's electronic records of each Class Member who
is a Holder of a Database Policy (as updated pursuant to Section XII.A.5 below),
and in cases where the Company is aware of pending litigation by the Class
Member against the Defendant relating to any matter proposed to be released by
this Agreement, also to all legal counsel known to represent

                                       59

<PAGE>

the Class Member. The Company will pay for the costs associated with producing
and mailing the Class Notice Package.

                  2.       The form and content of the Class Notice Package
shall be agreed to by the Parties and shall be substantially in the form
attached hereto as Exhibit A. Each Class Notice Package shall contain a Class
Notice and, in the case of Database Policies, a Statement of Benefits. In
addition, the Class Notice Package shall contain a Claim Form and a
pre-addressed and postage pre-paid envelope for return of the Claim Form to the
Administrator.

                  3.       The Class Notice

                           a.       The Class Notice shall, at a minimum,

                                    (i)      describe who is in the Class;

                                    (ii)     contain a short, plain description
                                             of the background of the Action,
                                             the Class and the proposed
                                             settlement;

                                    (iii)    generally describe the proposed
                                             benefits outlined above in Sections
                                             IV through VIII above;

                                    (iv)     explain how to secure settlement
                                             benefits, including how to submit a
                                             Claim Form if one is required to
                                             become an Eligible Holder;

                                    (v)      explain that to be excluded from
                                             the Class, a written exclusion
                                             request must be submitted no later
                                             than 40 days before the date of the
                                             Fairness Hearing;

                                    (vi)     state that any one Policy Holder's
                                             request for exclusion will exclude
                                             all Holders of the Policy;

                                    (vii)    inform Class Members that, if they
                                             do not exclude themselves from the
                                             Class with respect to a particular
                                             Policy, they will be eligible to
                                             receive one

                                       60

<PAGE>

                                             or more forms of relief under the
                                             proposed settlement;

                                    (viii)   state that any Class Member who has
                                             not submitted a written request for
                                             exclusion may, if he or she
                                             desires, object to the proposed
                                             settlement by filing and serving a
                                             written statement of objection no
                                             later than 40 days before the
                                             Fairness Hearing;

                                    (ix)     state that any Class Member who has
                                             filed and served written objections
                                             to the proposed settlement may, if
                                             he or she so requests, enter an
                                             appearance at the Fairness Hearing
                                             either personally or through
                                             counsel by providing the Court and
                                             counsel for the Parties with a
                                             notice of intention to appear;

                                    (x)      explain the impact of accepting or
                                             rejecting the benefits available to
                                             them under the Settlement Agreement
                                             on any existing litigation, claim,
                                             arbitration or other proceeding;

                                    (xi)     state that any judgment entered
                                             with respect to the Settlement
                                             Agreement shall include, and be
                                             binding on, all Class Members who
                                             have not been excluded from the
                                             Class, even if they have objected
                                             to the proposed Settlement
                                             Agreement and even if they have any
                                             other claim, lawsuit or proceeding
                                             pending against the Defendant;

                                    (xii)    provide the terms of the Release;

                                    (xiii)   explain the disposition of unknown
                                             claims; and

                                    (xiv)    state that any relief to Class
                                             Members is contingent on the
                                             Court's final approval of the
                                             proposed settlement.

                           b.       The Class Notice shall be reviewed and
approved by the Department, in form and substance, prior to issuance.

                                       61

<PAGE>

                  4.       The Statement of Benefits

                           a.       The Statement of Benefits will be included
only in the Class Notice Packages of Holders of Database Policies. A Statement
of Benefits shall also be provided upon request to any Eligible Holder who
submits a Claim Form identifying the number of a Policy for which information is
available on the Company's electronic records, or whose policy has been
confirmed to be a Policy.

                           b.       The Statement of Benefits shall provide the
Holder of the Policy with a simplified summary of certain information in the
Class Notice and also shall inform him or her, to the extent feasible and
reflected in the Company's electronic records, of

                                    (i)      the Class Member's name;

                                    (ii)     the policy number of the Policy
                                             making the Class Member eligible
                                             for relief;

                                    (iii)    the status of the Policy as of the
                                             Eligibility Date;

                                    (iv)     the form(s) and, to the extent
                                             practicable, percentages of relief
                                             for which the Class Member may be
                                             eligible; and

                                    (v)      the need, if any, of the Class
                                             Member to submit a Claim Form to
                                             become an Eligible Holder.

                  5.       Address Updating for Holders of Database Policies

                           a.       Prior to the mailing of the Class Notice
Package to Holders of Database Policies described in Section XII.A.1 above, the
Company shall conduct research to confirm or update the addresses of Holders of
Database Policies that are

                                       62

<PAGE>

currently available on the Company's electronic databases, as described in this
Section XII.A.5.

                           b.       Using its Trilium software, the Company
shall reformat as necessary its address information for Holders of Database
Policies that is currently available on the Company's electronic databases so
that it is in a form conducive to searching for updated addresses through the
National Change of Address Register.

                           c.       Once the Company has taken steps to reformat
its current address information, the Company shall utilize the National Change
of Address Register to confirm or update its current electronic addresses for
Holders of Database Policies.

                           d.       Once it has taken the above steps, the
Company shall provide its updated electronic address information for Holders of
Database Policies to the Administrator, which shall use ChoicePoint to further
update such address information to the extent practicable prior to the mailings
contemplated by Section XII.A.1 above.

         B.       PUBLICATION NOTICE AND OTHER MEDIA NOTICE

                  1.       As soon as is practicable after the Court's entry of
the Hearing Order, but no later than 55 days before the Fairness Hearing, the
Company will publish on at least one occasion the Publication Notice, in a form
substantially similar to that attached as Exhibit B and in the newspapers agreed
to by the Department and the Company. The Company shall pay all of the costs
associated with the Publication Notice.

                  2.       Lead Counsel and the Company shall retain a media
consultant to provide advice concerning the methods for providing the best
notice practicable to the

                                       63

<PAGE>

Class. Based on the media consultant's recommendations, the Company shall
arrange to provide notice to the Class through such media, and in such form and
frequency, as to which the Department and the Company shall agree. Such media
may include, without limitation, print media, television, radio, community
outreach, and use of the Internet. All such media notification shall be
completed as soon as is practicable following the Court's entry of the Hearing
Order, but no later than 55 days prior to the Fairness Hearing. The Company
shall pay all of the costs associated with the media notification described in
this Section XII.B.2.

         C.       REMAILING AND ADDITIONAL NOTICE

         The Company, through the Administrator, shall at its cost remail any
notice returned by the Postal Service with a forwarding address that is received
by the Administrator at least 50 days before the Fairness Hearing. With respect
to Class Notices that are returned without a forwarding address, the
Administrator shall immediately provide a copy of any returned notice to an
address research firm retained for the purpose of researching updated addresses
of Class Members, or conduct such research itself; provided however, that the
Company shall not be obligated to duplicate the efforts of an address research
firm that undertook a search for the Class Member's address prior to the initial
mailing. In addition, the Hearing Order shall provide that any retained address
research firm(s) shall provide to the Administrator in connection with each
returned notice, as soon as is possible, either an updated address or a
statement that, following due research (including, but not limited to, using the
National Change of Address Register and Social Security Numbers) it has been
unable to obtain an updated address. The

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Administrator shall remail the notice to any Class Member for whom it obtains or
the address research firm provides an updated address, so long as the updated
address is obtained by or provided to the Administrator at least 50 days before
the Fairness Hearing.

         D.       POST-SETTLEMENT MAILING

         Starting at the commencement of the Implementation Period, the Company
shall send a mailing to each person or entity eligible under Sections III.B
through III.E above to receive a cash payment under this Regulatory Settlement
Agreement by virtue of the Enhanced Past Death/Maturity Benefit (Section V
above) or the Enhanced Past Termination Benefit (Section VI.A above). The
mailing shall include a check in the amount of the cash payment for which the
Policy is eligible.

         E.       RETENTION OF ADMINISTRATOR

                  1.       The Company shall at its cost retain one or more
Administrators (including subcontractors) to help implement the terms of the
proposed Regulatory Settlement Agreement.

                           a.       The Administrator(s) may assist with various
administrative tasks, including, without limitation, (i) mailing or arranging
for the mailing of the Class Notice to Class Members, (ii) arranging for
publication of the Publication Notice, (iii) arranging for or assisting in
dissemination of the Publication Notice; (iv) handling returned mail not
delivered to Class Members, (v) attempting to obtain updated address information
for any Class Notices returned without a forwarding address or an expired
forwarding address, (vi) making any additional mailings required under the terms
of this Regulatory Settlement Agreement, (vii) arranging for and staffing

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<PAGE>

a toll-free telephone number to assist the Parties in responding to inquiries
from Class Members and others, (viii) assisting Class Members with the
completion of Claim Forms under the terms and conditions set forth above in
Section X.F above; (ix) answering written inquiries from Class Members, (x)
receiving and maintaining on behalf of the Court any Class Member correspondence
regarding requests for exclusion and objections to the settlement, (xi)
establishing and administering a Web site with information on the settlement and
the ability to submit Claim Form data; and (xii) otherwise assisting the Company
with the administration of the Regulatory Settlement Agreement. The Company will
pay the reasonable fees and expenses of the Administrator(s), as well as any
other fees and expenses incurred in performing all of the tasks described in
this Section XII.E.1.a.

                           b.       The Department shall be entitled to observe
and monitor the performance of the Administrator to assure compliance with this
Regulatory Settlement Agreement.

                           c.       The contract between the Company and the
Administrator shall obligate the Administrator to abide by the following
performance standards:

                                    (i)      The Administrator shall accurately
and neutrally describe, and shall train and instruct its employees and agents to
accurately and objectively describe, the provisions of this Regulatory
Settlement Agreement in communications with Class Members;

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                                    (ii)     The Administrator shall provide
prompt, accurate and neutral responses to inquiries from the Department or its
designee, or the Company and/or the Company's Counsel.

                  2.       Lead Counsel and the Company, in consultation with
the Department, will establish a settlement administration center for the
purpose of facilitating and providing information to Class Members regarding the
settlement and their rights under it. The settlement administration center shall
include, among other things, a telephone bank with a toll-free telephone number
for responding to inquiries from Class Members and others about the proposed
settlement and any issues related thereto. The Administrator shall direct all
callers with general product questions, product status requests, or complaints
unrelated to the settlement of the Action to call the Company's toll-free
customer service number.

                           a.       The settlement administration center shall
commence operations beginning no later than the day after the first Class Notice
Package is mailed and ending on a date to be agreed to by the Parties.

                           b.       The Administrator will be responsible for
(i) staffing the telephone bank with telephone representatives, (ii) educating
the telephone representatives about the general background of the Action, the
product concepts relevant to the proposed settlement, the notice, terms and
chronology of the proposed settlement, (iii) training the telephone
representatives to explain to Class Members the benefits available to them under
the Settlement Agreement and Regulatory Settlement Agreement, including that the
telephone representatives shall be instructed to advise all eligible Class

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<PAGE>

Members who call the telephone bank of their need, if any, to complete and
return a Claim Form to become Eligible Holders, (iv) training the telephone
representatives to answer inquiries from Class Members and others, (v) providing
scripts and model questions and answers for the telephone representatives to use
in answering inquiries from Class Members and other policyowners, (vi) training
the telephone representatives to refer Class Member inquiries to appropriate
sources, including, but not limited to Lead Counsel or its designee if the Class
Member so requests or where otherwise appropriate, (vii) training telephone
representatives to refer callers with general product questions, product status
requests, or complaints unrelated to the settlement of this Action to call the
Company's toll-free customer service number, (viii) training telephone
representatives to advise policyowners how to inquire if they own Policies
within the Class, (ix) providing for a translation service for non-English
speaking Class Members who call the toll-free number, (x) providing callers
access to a terminal for the hearing-impaired, (xi) maintaining records
reflecting communications with Class Members; (xii) providing on-site facilities
for the Department, the Company's Counsel and Company representatives; and
(xiii) taking any other steps, in consultation with the Department and the
Company, to promote accurate and efficient communications with Class Members and
others.

                           c.       The Department and the Company and/or its
counsel may monitor and participate in the education and training of telephone
representatives.

                                    (i)      The Department and the Company
and/or its counsel may participate in all training sessions, speak with
telephone representatives and

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<PAGE>

supervisors, and provide additional comment and/or instruction to telephone
representatives and/or supervisors as they deem necessary. The Department or the
Company or its designee may request and obtain a pause or cessation in any
training session or other communication with a telephone representative or
supervisor to confer regarding the content of the communication or training. All
training and other written communications between the Parties and telephone
representatives and/or supervisors must be agreed upon by the Parties.

                                    (ii)     The Department may observe any
communications between the Company or its designee and the telephone
representatives and supervisors of telephone representatives regarding training
issues.

                                    (iii)    The Company and the Department
shall consult in advance and agree on the form and content of all telephone
scripts to be used by the telephone representatives, and all training materials
and presentations, whether written or oral, provided to telephone
representatives. The Department shall be provided with complete drafts of all
telephone scripts, written materials or written presentations as soon as
possible but no later than 10 days prior to their use in training. Any proposed
changes, modifications or additions to the telephone scripts or written training
materials by either Party must be provided to the other Party with sufficient
time to permit meaningful comment prior to use. The Parties shall negotiate in
good faith concerning any such changes, modifications or additions to facilitate
providing clear, understandable and accurate information to Class Members.

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<PAGE>

                                    (iv)     The Department or its designee may
be present on-site at the telephone bank to monitor telephone representatives'
handling of Class Members' telephone inquiries. The Company and its designees
may also be present on-site at the telephone bank to monitor telephone
representatives' handling of Class Members' telephone inquiries.

         F.       COMMUNICATION WITH CLASS MEMBERS, POLICYOWNERS AND PRODUCERS

                  1.       The Company expressly reserves the right to
communicate with and respond to inquiries from policyowners and Class Members
orally and/or in writing, consistent with the provisions of the Regulatory
Settlement Agreement. The Company shall make and maintain a note in its
administrative systems reflecting any telephone call between representatives at
the Company's toll-free customer service number and any potential Class Member
relating to the settlement.

                  2.       Any communications between the Company and Class
Members concerning the terms of the settlement shall be consistent with scripted
information that is provided to the Department for its comments prior to use.
The Parties shall confer in good faith to resolve any differences concerning
such scripts. In addition, upon request, the Department shall be provided with
copies of all correspondence from the Company to Class Members concerning the
terms of the settlement.

                  3.       The Company's Producers may respond to inquiries
from, and/or communicate with, present or former Company policyowners about the
proposed settlement. However, the Company shall (a) instruct its Producers to
encourage Class Members with inquiries regarding the proposed settlement to call
the toll-free number

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established to respond to such inquiries; (b) make available to its Producers
copies of the Notice Card attached as Exhibit F hereto to give to such inquiring
Class Members; and (c) provide its Producers with copies of an Agent Script and
instruct them that any answers to Class Member questions regarding the
settlement shall be consistent with such Agent Script. The Company may also
respond to Producer questions regarding the proposed settlement.

                  4.       Mass and/or generalized communications with Class
Members regarding the proposed settlement, whether by the Company or its current
Producers, and whether by mail, the establishment or encouragement of Internet
websites or other Internet communications, telephone scripts, or any other
means, shall be made only after approval by the Department.

XIII.    ORDER OF DISMISSAL

         The Plaintiffs and the Company will seek and obtain from the Court a
Final Judgment and Order Approving Settlement (for which, as a condition of
settlement, the time for appeal has expired without any modifications in the
Final Judgment or Order Approving Settlement) as further described below in
Section XV. The Final Judgment and Order Approving Settlement shall, among other
things, (i) approve the Settlement Agreement in the Action as fair, reasonable
and adequate, and (ii) dismiss the Action with prejudice and on the merits.

XIV.     ORDER OF NOTICE, FAIRNESS HEARING AND ADMINISTRATION

         A.       The Company, Plaintiffs, and the Department have agreed to the
form of the following documents: the Class Notice Package (Exhibit A), the
Publication Notice

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(Exhibit B), the Unclaimed Benefits Protocols (Exhibit C), the Hearing Order
(Exhibit D), the Identifying Information (Exhibit E), the Notice Card (Exhibit
F), the Stipulation of Confidentiality (Exhibit G), the SDB Certificate (Exhibit
H), the Small Estate Declaration (Exhibit I), the Cash Payment Option Election
Letter (Exhibit J), the Confirmatory Letter (Exhibit K), the Industrial Weekly
Substandard Enhancement Factors (Exhibit L), the Cost Factors and Assumptions
(Exhibit M) and the Covered Met Series Policies (Exhibit N). These documents are
incorporated into, are an integral part of, and are material terms of this
Regulatory Settlement Agreement.

         B.       Plaintiffs and the Company will submit the Settlement
Agreement in the Action, including all attached exhibits, to the Court and seek
and obtain preliminary approval thereof. If the Court preliminarily approves the
Settlement Agreement, the Plaintiffs and the Company shall move the Court to set
a Fairness Hearing, and shall seek and obtain a proposed Hearing Order.

XV.      FINAL APPROVAL, AND FINAL JUDGMENT AND ORDER APPROVING SETTLEMENT

         After the Fairness Hearing, and upon the Court's approval of the
Settlement Agreement in the Action, the Plaintiffs and the Company shall seek
and obtain from the Court a Final Judgment and Order Approving Settlement in the
Action.

XVI.     NEW ENGLAND MUTUAL

         A.       Each New England Mutual Affected Policy shall be provided with
the Adjustment Amount, in the form, and on the terms and conditions, described
in this Section XVI.

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         B.       On the Automatic Adjustment Date, the Adjustment Amount shall
automatically be applied to purchase paid-up additional insurance coverage on
the policy, unless the owner of a New England Mutual Affected Policy has
previously notified the Company of an election to receive the cash payment
option described in Section XVI.C.2 below.

         C.       No later than 30 days preceding the Automatic Adjustment Date,
the Company shall mail a letter to the owner of each New England Mutual Affected
Policy, the form and content of which shall be approved by the Department prior
to mailing.

                  1.       The letter shall describe both the Adjustment Amount
and the amount of additional paid-up insurance coverage purchasable for the
policy using the Additional Amount.

                  2.       The letter shall advise the owner of the New England
Mutual Affected Policy that he or she may elect to receive the Adjustment Amount
in the form of a cash payment, instead of in the form of additional paid-up
insurance coverage.

                  3.       The letter shall advise that unless the Company
receives notification of the owner's election to receive the Adjustment Amount
in the form of a cash payment on or before the Automatic Adjustment Date, the
Adjustment Amount will automatically be applied to purchase paid-up additional
insurance coverage.

                  4.       If the owner of a New England Mutual Affected Policy
timely elects to receive the Adjustment Amount in the form of a cash payment,
the Company shall mail such cash payment no later than 10 days following the
Automatic Adjustment Date.

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<PAGE>

         D.       If the person insured under any New England Mutual Affected
Policy dies before the benefit described in this Section XVI is provided by the
Company, then the Company shall provide the policy's contractual beneficiary
with a cash payment equal to the amount of additional paid-up insurance coverage
that would have been purchasable using the policy's Adjustment Amount.

         E.       If any New England Mutual Affected Policy is surrendered or
otherwise lapses or terminates before the benefit described in this Section XVI
is provided by the Company, then the Company shall increase the cash value of
the policy at the time of surrender or termination by the Adjustment Amount.

         F.       No later than 20 days following the Automatic Adjustment Date,
the Company, through one of its officers who is a member in good standing of the
American Academy of Actuaries, shall deliver a written certification to the
Department describing in detail the benefits provided by the Company for each
New England Mutual Affected Policy under this Section XVI.

         G.       The costs to the Company of providing the benefits described
in this Section XVI shall not be considered in calculating the minimum/maximum
cost of benefits pursuant to Section XI hereof.

XVII.    REGULATORY RESOLUTION

         A.       Each person signing on behalf of a Participating Regulator
gives his/her express assurance that under applicable state laws, regulations
and judicial rulings, he/she has the authority to enter into this Regulatory
Settlement Agreement on behalf of the Participating Regulator.

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<PAGE>

         B.       Each Participating Regulator shall execute and deliver this
Regulatory Settlement Agreement to the Lead Regulatory Negotiator within sixty
(60) days following the receipt of this Regulatory Settlement Agreement from the
Lead Regulatory Negotiator. If a Participating Regulator finds that, under
applicable state law, regulation or procedure, the preparation and execution of
a consent order is necessary to carry out the terms of this Regulatory
Settlement Agreement, such a consent order (the "Applicable Consent Order")
shall be prepared by such Participating Regulator within sixty (60) days
following the receipt of this Regulatory Settlement Agreement from the Lead
Regulatory Negotiator.

         C.       For purposes of this Regulatory Settlement Agreement, an
"Applicable Consent Order" shall be satisfactory to the Company if it: (1)
incorporates by reference and attaches via exhibit a copy of this Regulatory
Settlement Agreement; (2) expressly adopts and agrees to the provisions of this
Regulatory Settlement Agreement; and (3) includes only those other terms that
may be legally required in the state of the applicable Participating Regulator.
However, nothing in this Regulatory Settlement Agreement shall be construed to
require any state to execute and deliver an Applicable Consent Order if such
State elects instead to sign this Regulatory Settlement Agreement.

         D.       Upon execution of this Regulatory Settlement Agreement, the
Department and the Participating Regulators release and forever discharge the
Company from all liability for, and from all civil or administrative causes,
actions, claims, damages, losses and demands of any nature whatsoever, that
arise from acts or omissions related to the subject matter of the Report on
Examination, the Stipulation of Settlement and this

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<PAGE>

Regulatory Settlement Agreement, and relate to the marketing, solicitation,
application, underwriting, risk classification, issuance, change issuance,
re-issuance, reinstatement, design, type, structure, terminology, pricing,
premiums, charges, rates, premium mode, acceptance, purchase, sale, operation,
retention, administration, debit or home service, collection, servicing,
performance, dividends, cash values, benefits (including non-forfeiture
benefits), or provision of demutualization shares, relating to any Policy.

         E.       Any material violation of this Regulatory Settlement Agreement
may be deemed to constitute a violation of an Order issued by the Department or
the Participating Regulators to the Company.

XVIII.   MODIFICATION OR TERMINATION OF THIS AGREEMENT

         A.       The terms and provisions of this Regulatory Settlement
Agreement may be amended, modified or expanded by agreement of the Department
and the Company.

         B.       The Company, in consultation with the Department and Lead
Counsel and without approval of the Court, may implement the terms of this
Regulatory Settlement Agreement after entry of the Final Judgment and Order
Approving Settlement but before the Final Settlement Date, in which case all
provisions in this Regulatory Settlement Agreement that specify actions to be
taken on or after the Final Settlement Date shall, to the extent necessary, be
deemed to provide that those actions shall be taken on or after the date on
which the Company elects to implement the Regulatory Settlement Agreement.

         C.       This Regulatory Settlement Agreement will terminate at the
sole option and discretion of the Department or the Company if (i) the Court, or
any appellate

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court(s), rejects, modifies or denies approval of any portion of the Settlement
Agreement in the Action or the proposed settlement that the terminating Party in
its (or their) sole judgment and discretion reasonably determine(s) is material,
including, without limitation, the terms of relief, the findings of the Court,
the provisions relating to notice, the definition of the Class and/or the terms
of the Release set forth in the Settlement Agreement, or (ii) the Court, or any
appellate court(s), does not enter or completely affirm, or alters or expands,
any portion of the Final Judgment or Order Approving Settlement, or any of the
Court's findings of fact or conclusions of law as proposed by the Company's
Counsel and Lead Counsel, that the terminating Party in its (or their) sole
judgment and discretion believe(s) is material. The terminating Party must
exercise the option to withdraw from and terminate this Regulatory Settlement
Agreement, as provided in this Section no later than 20 days after receiving
notice of the event prompting the termination.

                  1.       The Company may unilaterally withdraw from and
terminate this Regulatory Settlement Agreement if the Company properly withdraws
from and terminates the Settlement Agreement.

         D.       If an option to withdraw from and terminate this Regulatory
Settlement Agreement arises under Section XVIII.C, (i) neither the Department
nor the Company will be required for any reason or under any circumstance to
exercise that option, and (ii) any exercise of that option shall be made in good
faith.

         E.       If this Regulatory Settlement Agreement is terminated pursuant
to Section XVIII.C then:

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<PAGE>

                  1.       this Regulatory Settlement Agreement shall be null
and void and shall have no force or effect, and no Party to this Regulatory
Settlement Agreement nor the Participating Regulators shall be bound by any of
its terms, except for the terms of this Section XVIII.E;

                  2.       this Regulatory Settlement Agreement, all of its
provisions, and all negotiations, statements and proceedings relating to it
shall be without prejudice to the rights of the Department, the Participating
Regulators or the Company, all of which shall be restored to their respective
positions existing immediately before the execution of this Regulatory
Settlement Agreement;

                  3.       the Company and its current and former directors,
officers, Producers, employees, agents, attorneys and representatives expressly
and affirmatively reserve all defenses, arguments and motions as to all claims
that have been or might later be asserted with respect to the subject matter of
this Regulatory Settlement Agreement; and

                  4.       neither this Regulatory Settlement Agreement, nor the
fact of its having been made, shall be offered into evidence for any purpose.

XIX.     GENERAL MATTERS AND RESERVATIONS

         A.       The obligation, although not the ability, of the Parties to
conclude this proposed settlement is and will be contingent upon each of the
following:

                  1.       authorization by the Board of Directors of
Metropolitan Life Insurance Company to enter into this Regulatory Settlement
Agreement;

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                  2.       entry by the Court of the Final Judgment and Order
Approving Settlement in the Action, from which order the time to appeal has
expired or which has remained unmodified after any appeal(s); and

                  3.       any other conditions stated in this Regulatory
Settlement Agreement.

         B.       The Company and its counsel agree to keep the existence and
contents of this Regulatory Settlement Agreement and the Stipulation of
Settlement and all related negotiations confidential until the earlier of the
date of the first public announcement by the Department or the signing of the
order granting preliminary approval of the Settlement Agreement pursuant to
Section XIV.B; provided however, that this Section shall not prevent earlier
disclosure of such information to regulators, rating agencies, insurers or
reinsurers, financial analysts, Producers, or any other person or entity (such
as experts, courts, and/or Administrators) to whom the Parties agree disclosure
must be made to effectuate the terms and conditions of this Regulatory
Settlement Agreement or the Stipulation of Settlement.

         C.       The Company shall not issue any written statements, written
press releases or other written media notices in connection with the proposed
settlement which has not first been provided to the Department sufficiently in
advance of public release to provide the Department with adequate time to review
and comment on the proposed statement, press release or notice, and to prepare
its own statement.

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<PAGE>

         D.       The Company shall ensure that any comments about or
descriptions of the proposed settlement or its value or cost in the media or in
any other public forum are balanced, fair, accurate, and consistent with the
terms and intent of the settlement.

         E.       Lawrence A. Vranka represents that he is authorized to enter
into this Regulatory Settlement Agreement on behalf of the Company.

         F.       This Regulatory Settlement Agreement sets forth the entire
agreement among the Parties and the Participating Regulators with respect to its
subject matter, and it may not be altered or modified except by written
instrument executed by the Department and the Company. This Regulatory
Settlement Agreement supercedes any prior agreement, understanding, or
undertaking (written or oral) by or among the Parties and the Participating
Regulators regarding the subject matter of this Regulatory Settlement Agreement.

         G.       This Regulatory Settlement Agreement and any ancillary
agreements shall be governed by and interpreted according to the law of the
State of New York, excluding its conflict-of-laws provisions.

         H.       All time periods set forth herein shall be computed in
calendar days unless otherwise expressly provided. In computing any period of
time prescribed or allowed by this Regulatory Settlement Agreement or by order
of court, the day of the act, event, or default from which the designated period
of time begins to run shall not be included. The last day of the period so
computed shall be included, unless it is a Saturday, a Sunday or a legal
holiday, or, when the act to be done is the filing of a paper in court, a day on
which weather or other conditions have made the office of the clerk of the court
inaccessible, in

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<PAGE>

which event the period shall run until the end of the next day that is not one
of the aforementioned days. As used in this Section, "legal holiday" includes
New Year's Day, Birthday of Martin Luther King, Jr., Presidents' Day, Memorial
Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day,
Christmas Day and any other day appointed as a holiday by the President or the
Congress of the United States, or by the State of New York, where the Court is
located.

         I.       The Department and the Company reserve the right, subject to
the Court's approval, to make any reasonable extensions of time that might be
necessary to carry out any of the provisions of this Regulatory Settlement
Agreement.

         J.       All Parties agree that this Regulatory Settlement Agreement
was drafted during extensive arm's-length negotiations, and that no parol or
other evidence may be offered to explain, construe, contradict or clarify its
terms, the intent of the Parties or their counsel, or the circumstances under
which the Regulatory Settlement Agreement was made or executed.

         K.       In no event shall the Regulatory Settlement Agreement, any of
its provisions or any negotiations, statements or court proceedings relating to
its provisions in any way be offered by the Parties or Participating Regulators
as evidence in any action or any judicial, administrative, regulatory or other
proceeding, except a proceeding to enforce this Regulatory Settlement Agreement.
Without limiting the foregoing, neither this Regulatory Settlement Agreement nor
any related negotiations, statements or court proceedings shall be offered by
the Parties or Participating Regulators as evidence of or an admission or
concession of any liability or wrongdoing whatsoever on the part of any

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<PAGE>

person or entity, including but not limited to the Company, or as a waiver by
the Company of any applicable defense, including without limitation any
applicable statute of limitations or statute of frauds.

         L.       The Company does not admit or concede any actual or potential
fault, wrongdoing or liability in connection with any facts or claims that have
been or could have been alleged against it, but considers it desirable for this
matter to be resolved because this Agreement will provide substantial benefits
to the Company's present and former policyowners, insureds and beneficiaries.

         M.       Neither this Regulatory Settlement Agreement nor any of the
relief to be offered under the proposed settlement shall be interpreted to alter
in any way the contractual terms of any Policy, or to constitute a novation of
any Policy.

         N.       No opinion concerning the tax consequences of the proposed
settlement to individual Class Members is being given or will be given by the
Company, the Company's Counsel, the Department or the Participating Regulators
nor is any representation or warranty in this regard made by virtue of this
Regulatory Settlement Agreement. The Class Notice will direct Class Members to
consult their own tax advisors regarding the tax consequences of the proposed
settlement, including any payments, contributions or credits provided hereunder,
and any tax reporting obligations they may have with respect thereto. Each Class
Member's tax obligations, and the determination thereof, are the sole
responsibility of the Class Member, and it is understood that the tax
consequences may vary depending on the particular circumstances of each
individual Class Member.

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<PAGE>

         O.       The Parties, their successors and assigns, and their attorneys
undertake to oversee and implement the terms of this Regulatory Settlement
Agreement in good faith, and to use good faith in resolving any disputes that
may arise in the implementation of the terms of this Regulatory Settlement
Agreement.

         P.       This Settlement Agreement may be signed in counterparts, each
of which shall constitute a duplicate original.

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<PAGE>

                  Agreed to this 29th day of August, 2002.

                           APPROVED AND AGREED TO BY AND ON BEHALF OF THE STATE
                           OF NEW YORK INSURANCE DEPARTMENT

                           By:           /s/ Gregory Serio
                              --------------------------------------------------
                              GREGORY SERIO
                              SUPERINTENDENT OF INSURANCE

                           APPROVED AND AGREED TO BY AND ON BEHALF OF
                           METROPOLITAN LIFE INSURANCE COMPANY

                           By:           /s/ Lawrence A. Vranka
                              --------------------------------------------------
                              LAWRENCE A. VRANKA
                              VICE PRESIDENT
                              METROPOLITAN LIFE INSURANCE COMPANY

                                       84

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