Document:

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                                                                   Exhibit 10.65

                              FIXED PRICE CONTRACT

                                    BETWEEN

                              PANAMSAT CORPORATION

                                      AND

                         BOEING SATELLITE SYSTEMS, INC.

                                      FOR

                           GALAXY VIII(i)R AND OPTION

                 SPACECRAFT, RELATED SERVICES AND DOCUMENTATION

                            CONTRACT No. 00-PAS-001

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This Contract (excluding the Exhibits A1, A2, B1, B2, C and D which have their
own separate proprietary markings and proprietary legend) contains information
that is proprietary to PanAmSat Corporation and Boeing Satellite Systems, Inc.
All information contained herein is deemed to be Proprietary Information (as
such term is defined in Article 22 of this Contract) of both Parties, and
disclosure thereof is governed by Article 22.
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[***] Filed separately with the Commission pursuant to a request for
confidential treatment.
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                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                               PAGE
<S>                                                                            <C>
ARTICLE 1.     EXHIBITS AND INCORPORATIONS....................................    2
ARTICLE 2.     ORDER OF PRECEDENCE............................................    3
ARTICLE 3.     SPACECRAFT, DOCUMENTATION AND RELATED SERVICES
("DELIVERABLES")..............................................................    4
ARTICLE 4.     DELIVERABLES AND SCHEDULE......................................    6
ARTICLE 5.     PRICE..........................................................    9
ARTICLE 6.     PAYMENTS.......................................................   12
ARTICLE 7.     SPACECRAFT LAUNCH DATE.........................................   30
ARTICLE 8.     BUYER-FURNISHED ITEMS..........................................   32
ARTICLE 9.     INSPECTION AND ACCEPTANCE......................................   35
ARTICLE 10.    ACCESS TO WORK IN PROCESS......................................   39
ARTICLE 11.    TERMINATION FOR DEFAULT; LIMITATION OF LIABILITY...............   41
ARTICLE 12.    EXCUSABLE DELAYS...............................................   43
ARTICLE 13.    AMENDMENTS.....................................................   45
ARTICLE 14.    TERMINATION FOR CONVENIENCE....................................   46
ARTICLE 15.    TITLE AND RISK OF LOSS.........................................   49
ARTICLE 16.    SPACECRAFT WARRANTY............................................   52
ARTICLE 17.    INDEMNIFICATION................................................   54
ARTICLE 18.    SPACECRAFT NOT LAUNCHED WITHIN SIX MONTHS AFTER
ACCEPTANCE....................................................................   55
ARTICLE 19.    PATENT/COPYRIGHT INDEMNITY.....................................   57
</TABLE>

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<TABLE>
<S>                                                                              <C>
ARTICLE 20.    RIGHTS IN INVENTIONS...........................................   59
ARTICLE 21.    INTELLECTUAL PROPERTY RIGHTS...................................   62
ARTICLE 22.    FURNISHED DATA AND INFORMATION, DISCLOSURE AND USE.............   63
ARTICLE 23.    PUBLIC RELEASE OF INFORMATION..................................   66
ARTICLE 24.    TAXES..........................................................   67
ARTICLE 25.    GOVERNING LAW..................................................   68
ARTICLE 26.    TITLES.........................................................   69
ARTICLE 27.    NOTICES AND AUTHORIZED REPRESENTATIVES.........................   70
ARTICLE 28.    INTEGRATION....................................................   72
ARTICLE 29.    CHANGES........................................................   73
ARTICLE 30.    EFFECTS OF STORAGE ON BATTERIES................................   79
ARTICLE 31.    INTER-PARTY WAIVER OF LIABILITY................................   80
ARTICLE 32.    SPACECRAFT STORAGE.............................................   81
ARTICLE 33.    DISPUTES.......................................................   82
ARTICLE 34.    ASSIGNMENT.....................................................   85
ARTICLE 35.    LIMITATION OF LIABILITY........................................   87
ARTICLE 36.    CORRECTIVE MEASURES; OPERATIONAL DEFICIENCIES..................   88
ARTICLE 37.    LIQUIDATED DAMAGES FOR LATE PERFORMANCE........................   90
ARTICLE 38.    OPTION SPACECRAFT..............................................   91
ARTICLE 39.    NO THIRD PARTY RIGHTS..........................................   98
ARTICLE 40.    INDEX OF DEFINED TERMS.........................................   99
</TABLE>

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<TABLE>
<S>                                                                             <C>
ARTICLE 41.    EFFECTIVE DATE OF CONTRACT.....................................  102
</TABLE>

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This FIXED PRICE CONTRACT  (the "Contract") is entered into as of the 15th day
of December, 2000, by and between PANAMSAT CORPORATION (herein called "Buyer"),
a Delaware corporation having a place of business at One Pickwick Plaza,
Greenwich, Connecticut 06830, and BOEING SATELLITE SYSTEMS, INC. (herein called
"Contractor"), a Delaware corporation having a place of business at 909 North
Sepulveda Boulevard, El Segundo, California 90245.

                                  WITNESSETH:

         WHEREAS, the Parties now desire to enter into this Contract for Buyer
to purchase and Contractor to manufacture, deliver and perform (as applicable)
the Galaxy VIII(i)R Spacecraft, Documentation and Related Services with an
option for one (1) additional Spacecraft, Documentation and Related Services, as
provided and defined herein below;

         NOW, THEREFORE, the Parties hereby agree as follows:

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ARTICLE 1.  EXHIBITS AND INCORPORATIONS

     The following documents are hereby incorporated and made a part of this
     Contract with the same force and effect as though set forth herein:

     1.1A  Exhibit A1 - Statement of Work and Contract Data Requirements List
           for Flight Spacecraft - dated December 2000.
     1.1B  Exhibit A2 - Statement of Work and Contract Data Requirements List
           for Operations Products - dated December 2000.

     1.2A  Exhibit B1 - Galaxy VIII(i)R Spacecraft Specification - dated
           December 2000.
     1.2B  Exhibit B2 - Option Spacecraft Specification - dated December 2000
           (subject to completion in accordance with Paragraph 38.1).

     1.3   Exhibit C - Spacecraft Integration Test Plan - dated December 2000.

     1.4   Exhibit D - Product Assurance Plan - dated October 9, 1998.

     1.5A  Exhibit E1 - Maximum Termination Liability Schedule, GVIII(i)R and
           Option Spacecraft.
     1.5B  Exhibit E2 - Maximum Termination Liability Schedule, Replacement
           Spacecraft.

     1.6   Exhibit F -  Payment Plan for Replacement Spacecraft

     1.7   Exhibit G - Sample Incentives Obligations Payment Schedule.

     1.8   Exhibit H - Certain Documentation.

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ARTICLE 2.  ORDER OF PRECEDENCE

     In the event of any conflict or inconsistency among the provisions of this
     document and the exhibits attached and incorporated into this Contract,
     such conflict or inconsistency shall be resolved by giving precedence to
     this document, and then to the attached and incorporated exhibits in the
     order listed in Article 1 herein, entitled "Exhibits and Incorporations."
     Notwithstanding the foregoing, for avoidance of doubt, any reference to
     G8iR or similar designation in the Exhibits shall be deemed to refer to
     Galaxy VIII(i)R.

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ARTICLE 3.  SPACECRAFT, DOCUMENTATION AND RELATED SERVICES ("DELIVERABLES")

     3.1  Contractor shall sell and provide, and Buyer shall purchase, the items
          and services referred to in Section 4.1.  Contractor shall provide the
          necessary personnel, material, services and facilities to design,
          fabricate, test and deliver one (1) HS601HP type Spacecraft designated
          Galaxy VIII(i)R (hereinafter referred to as "Galaxy VIII(i)R" or the
          "Spacecraft"), including Documentation and Related Services (as
          defined in Article 4) in accordance with the provisions of this
          Contract and in the manner specified under Exhibits A1, A2, B(1 or 2),
          C and D hereto.

     3.2  All materials and services specified in Exhibit A1, and A2 "Statement
          of Work," shall meet the requirements of the applicable Exhibit B(1 or
          2), entitled "Spacecraft Specification," for the applicable
          Spacecraft.

     3.3  If Contractor has not made delivery [***] or if, prior to the Launch
          Date, [***] Buyer may at its election:

               (a) [***]
               (b) [***]

          Any such election shall be made by Buyer in writing.  [***]

          In addition, in the event that (i) Contractor has earned a Delivery
          Incentive under Paragraph 5.5 and (ii) the scheduled Commencement Date
          is delayed as a result of [***]

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     3.4  [***] in accordance with: (i) current directives and instructions in
          the Boeing Spacecraft Operators Handbook, utilized at Buyer's OCC; and
          (ii) any other Documentation utilized, including that Documentation
          which takes into consideration the unique or special characteristics
          of such Spacecraft.  [***]  Buyer has responsibility and liability for
          the Operations Control Center and its associated ground station(s).
          [***]

     3.5  Spacecraft, Documentation and Related Services described above shall
          be delivered to Buyer at the indicated locations on the dates set
          forth in Article 4 entitled, "Deliverables and Schedule" herein.

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ARTICLE 4.  DELIVERABLES AND SCHEDULE

     4.1  The following deliverables to be furnished under this Contract shall
          be furnished at the designated location(s) on or before the dates
          specified below:

<TABLE>
<CAPTION>
     -----------------------------------------------------------------------------------------------------------
                                                   Date of Shipment                   Location of Shipment
                                                      Delivery                           Delivery or
               Deliverables                         or Performance                       Performance
     -----------------------------------------------------------------------------------------------------------
     <S>                                       <C>                               <C>
     1.   Galaxy VIII(i)R Spacecraft           15 June 2002 (the "Shipment       . Shipped from Contractor's
                                               Date")/1/                           facility.
                                                                                 . Delivery Site at Launch
                                                                                 . Integration Facility/2/.
     -----------------------------------------------------------------------------------------------------------
     2.   Launch Support, Mission Operations   In Accordance with Exhibit A      . Performance Site to be
          and In-Orbit Testing for Galaxy                                          determined pursuant to
          VIII(i)R ("Related Services")                                            Paragraph 4.2.
                                                                                 . Fillmore, California
                                                                                 . Castle Rock, Colorado
                                                                                 . El Segundo, California
     -----------------------------------------------------------------------------------------------------------
     3.   Documentation for Galaxy VIII(i)R    In Accordance with Exhibit A      1500 Hughes Way
          ("Documentation")                                                      Long Beach, California
     -----------------------------------------------------------------------------------------------------------
</TABLE>

     /1/ Contractor agrees to ship the Spacecraft from its facility on or before
     such date as may be necessary to support the launch of the Spacecraft on
     the Launch Date in accordance with the requirements of this Contract and
     the Exhibits hereto.  [***]  Notwithstanding anything herein to the
     contrary, Contractor shall not be required to ship any Spacecraft earlier
     than its applicable Shipment Date (as such Shipment Date may be adjusted by
     mutual agreement of the Parties).

     /2/ Delivery Site to be (i) the Launch Integration Facility (Port of Long
     Beach) in the event Buyer uses a Sea Launch launch vehicle, (ii) the Launch
     Integration Facility in Baikonur, Kazakhstan in the event Buyer uses a
     Proton launch vehicle, or (iii) the Launch Integration Facility in Kourou,
     French Guyana in the event Buyer uses an Ariane launch vehicle.

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    4.2  Designation of Launch Vehicle.

         4.2.1 Buyer shall designate a Spacecraft's Launch Vehicle on or
               before [***]  months prior to the Shipment Date for such
               Spacecraft, in which event the Contract Price shall be increased
               by the applicable amount specified in Paragraph 5.3 if the Buyer
               designates a Proton Launch Vehicle.  If, subsequent to the date
               that is [***] months prior to such Shipment Date, Buyer requests
               a change in the Launch Vehicle or Approved Storage Facility for
               such Spacecraft, such request shall be dealt with as a Change
               Order Request of Buyer under Article 29.

         4.2.2 Buyer shall pay the costs of delivering the Spacecraft to the
               Launch Site, which costs are included in the Contract Price.
               Contractor shall arrange and provide transportation required for
               the deliverables specified in Section 4.1.

     4.3 Contractor shall be responsible for obtaining: (i) all U.S. Government
         export licenses to enable export of each Spacecraft, and related test
         and support equipment to the Launch Site and disclosure of information
         reasonably requested by Buyer's foreign insurers; and (ii) all
         authorizations required for Contractor to perform this Contract.
         Notwithstanding the foregoing, (i) the failure or refusal of the U.S.
         Government to issue a required export license or (ii) the U.S.
         Government's revocation of a previously issued license, or (iii) the
         export authorization by the U.S. Government (a) of only a portion of
         the information requested by Buyer's foreign insurers, or (b) to fewer
         than all of Buyer's foreign insurers, or (iv) the U.S. Government's
         issuance of a limited or

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          restricted export license that prevents Contractor's performance
          (provided in the case of (i), (ii), (iii) and (iv) that (A) Contractor
          has used its reasonable best efforts to obtain and retain such export
          license and (B) any revocation of a previously issued license or
          imposition of license limitations or restrictions is not due to any
          violation of U.S. Government export laws, regulations or licenses by
          Contractor) shall be deemed under Paragraph 12.1 to constitute a Force
          Majeure Event.

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ARTICLE 5.  PRICE

     5.1  The total price (the "Contract Price") for Contractor to provide the
          Galaxy VIII(i)R Spacecraft, Documentation and Related Services shall
          [***]

     5.2  Buyer shall pay Contractor the Contract Price stated in Paragraph 5.1
          above in accordance with Article 6, Paragraph 6.2 of this Contract.

     5.3  The Contract Price for a Spacecraft shall be adjusted in accordance
          with the following table, based upon the Launch Vehicle designated by
          Buyer for such Spacecraft pursuant to Paragraph 4.2.1.  If Buyer
          changes the designated Launch Vehicle for the Spacecraft in accordance
          with Paragraph 4.2.1 (as opposed to Article 29), the Contract Price
          shall be adjusted in accordance with the following table:

                                  Table 5.3.1
                                  -----------
                          Adjustment to Contract Price
                          ----------------------------

     -------------------------------------------------------------------
                  Launch Vehicle                     Adjustment
     -------------------------------------------------------------------
                    Sea Launch                          [***]
     -------------------------------------------------------------------
          Ariane 4/5 (applicable to Option              [***]
                 Spacecraft only)
     -------------------------------------------------------------------
             Proton - any configuration                 [***]
     -------------------------------------------------------------------

     5.4  Any adjustment to the Contract Price under Paragraph 5.3 shall be
          allocated pro rata over the entire Payment Plan for such Spacecraft.
          Adjustments allocated to payments already made shall be promptly paid
          by Buyer or refunded by Contractor.

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     5.5  Buyer agrees to pay to Contractor a delivery incentive (the "Delivery
          Incentive") up to a maximum amount [***] due and payable in accordance
          with this Paragraph 5.5.  In the event that [***] Buyer agrees to pay
          to Contractor a delivery incentive (the "Delivery Incentive") as
          follows:

          5.5.1  In the event that [***] the Delivery Incentive shall equal
          [***] or

          5.5.2  In the event that [***] the Delivery Incentive shall equal
          [***]

     5.6  Contractor shall submit an invoice for any Delivery Incentive
          after such amount is earned under Paragraph 5.5, and Buyer shall pay
          such Delivery Incentive within thirty (30) days of receipt by Buyer of
          such invoice.

     5.7  The Delivery Incentive (if any) paid by Buyer for each Spacecraft
          shall be [***] in accordance with this Paragraph 5.7. The [***] shall
          be equal to the sum of: [***] pursuant to Paragraph 6.3 (and all
          subparagraphs thereof); plus [***] in clause (i) at the [***]. For
          example, if the Contractor earns a Delivery Incentive of [***] for a
          Spacecraft and if with respect to such Spacecraft, Contractor [***].

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        [***] in accordance with clause (ii) above. If [***].

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ARTICLE 6.  PAYMENTS

     6.1  Pursuant to the terms set forth in this Article 6, and subject to
          Buyer's rights, defenses and remedies as expressly stated in this
          Contract, Buyer shall pay to Contractor the Contract Price as stated
          in Article 5 herein for the applicable Spacecraft, Documentation, and
          Related Services under this Contract.

     6.2  Invoices shall be prepared and submitted by Contractor for each
          Spacecraft in a form reasonably acceptable to Buyer. Payments to
          Contractor for such Spacecraft shall be made according to the
          following payment plans:

                                   Table 6.2
                                   ---------

                    Galaxy VIII(i)R - Progress Payment Plan*
                    ----------------------------------------

     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
          [***]                 [***]                    [***]
     -------------------------------------------------------------
      [***]                     [***]                    [***]
     -------------------------------------------------------------
      [***]                     [***]                    [***]
     -------------------------------------------------------------
      [***]                     [***]                    [***]
     -------------------------------------------------------------
     [***]
     *This plan also applies to the Option in Article 38, Section 38.1 (but not
     the Replacement Spacecraft Options) if ordered and the Shipment Date is
     determined to be 18 months from option exercise in accordance with
     Paragraph 38.2.

     **Initial Payment shall be paid by the Buyer to the Contractor not later
     than 10 business days after the later of (i) Contract award or Option
     exercise date or (ii) the business day that the Buyer receives a proper
     invoice

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     from the Contractor for such Initial Payment. For purposes of GVIII(i)R,
     this means the initial payment is due to the Contractor not later than 29
     December 2000.

     6.3  Incentives Obligations.

          6.3.1  The following definitions are applicable to this Section 6.3:

                 6.3.1.1 "Specified Operation Lifetime" means (i) fifteen (15)
                         years if the Launch Vehicle is Sea Launch or Proton
                         Breeze M ,or (ii) fourteen and one half (14.5) years if
                         the Launch Vehicle is Proton D-1-e or (iii) fifteen
                         (15) years if the Launch Vehicle is Ariane 42L (or
                         larger) and the Spacecraft dry mass specified by
                         Contractor at the contract execution date (in the case
                         of Galaxy VIII(i)R), the Option exercise date (for the
                         Option Spacecraft), or the order date (for any
                         Replacement Spacecraft) does not exceed [***]

                 6.3.1.2 "Successfully Operating Payload." Each Spacecraft shall
                         be equipped with one or more Payloads, as defined in
                         Paragraph 6.3.1.8. Each Payload shall be deemed to be
                         Successfully Operating if at least that number of
                         Transponders that is one more than one-half of the
                         total number of Transponders within such Payload are
                         Successfully Operating Transponders (as defined below).

                 6.3.1.3 "Successfully Operating Transponder". A Successfully
                         Operating Transponder is a Transponder which meets
                         either or both of the following two criteria:

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                    (a)  The Transponder meets or exceeds the performance
                         specifications set forth in Exhibit B. For the
                         avoidance of doubt, if the Spacecraft is placed into
                         inclined orbit, then the Transponders shall be deemed
                         not to meet the criteria stated in this Paragraph
                         6.3.1.3(a) at such time as the Spacecraft would have
                         ceased to have a Useful Commercial Life, (as mutually
                         determined by the Parties) had it not been placed in
                         such an orbit.

                    (b)  The Transponder, while not meeting or exceeding the
                         performance specifications, provides Buyer with no
                         material loss in its commercial value.

                    A Transponder shall also be deemed to be a Successfully
                    Operating Transponder if it meets the performance
                    specifications through use of any redundant or spare
                    equipment not already in use by another Transponder.

                    [***]

           6.3.1.4  "Useful Commercial Life". The Useful Commercial Life of a
                    Spacecraft means the period beginning on the Commencement
                    Date and ending on the earlier to occur of (i) the date on
                    which there is just sufficient fuel remaining on board the
                    Spacecraft only to eject the Spacecraft from its
                    geostationary orbital location or (ii) the date on which at
                    least one-half of the

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                    Transponders on each Payload are not Successfully Operating
                    Transponders.

            6.3.1.5 "Successfully Injected Spacecraft". A Launched Spacecraft
                    shall be deemed to be a Successfully Injected Spacecraft if:

                    (a)  The transfer orbit/spacecraft attitude meets the
                         following required criteria:

                         (1)  Perigee altitude error is less than or equal to +3
                              sigma;

                         (2)  Apogee Altitude error is less than or equal to +3
                              sigma;

                         (3)  Inclination error is less than or equal to +3
                              sigma;

                         (4)  Argument of perigee error is less than or equal to
                              +3 sigma; and

                         (5)  The Spacecraft has been separated with attitude
                              rate errors of less than or equal to +3 sigma and

                    (b)  The Spacecraft has not suffered physical damage which
                         resulted from Launch Vehicle malfunction.

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                    The calculated amount of Useful Commercial Life (the
                    "Calculated Operational Lifetime") shall be mutually
                    determined by Buyer and Contractor, based on standard
                    engineering practices, using measured actuals of the
                    Spacecraft, existing at the time of the operational hand-off
                    of the Spacecraft to Contractor from the Launch Vehicle
                    provider. If the attained transfer orbit/Spacecraft attitude
                    does not meet the criteria stated in this Section, but the
                    Calculated Operational Lifetime is greater than or equal to
                    the Specified Operational Lifetime for the Spacecraft, then
                    the Spacecraft shall be deemed to have been a Successfully
                    Injected Spacecraft. If, on the other hand, the attained
                    transfer orbit/Spacecraft attitude does not meet the
                    criteria stated above, and the Calculated Operational
                    Lifetime is less than the Specified Operational Lifetime,
                    then the Spacecraft shall be deemed not to be a Successfully
                    Injected Spacecraft. If Buyer and Contractor cannot agree on
                    the Calculated Operational Lifetime, then the Parties shall
                    resolve such disagreement in acceptance with the dispute
                    resolution procedures set forth in Article 33. During such
                    dispute resolution procedure, Buyer shall commence all
                    payments under Section 6.3.2 to Contractor based on
                    Contractor's calculation of such Calculated Operational
                    Lifetime, except only the disputed amount(s) which shall be
                    paid by Buyer in escrow as set forth in Section 29.4, and
                    the prevailing Party shall be entitled to interest as
                    provided therein.

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               6.3.1.6  "Incentives Interest Rate". The Incentives Interest Rate
                        shall be the lesser of (i) [***] or (ii) [***]

               6.3.1.7  "Commencement Date". The Commencement Date shall be the
                        date on which Buyer receives written certification from
                        Contractor that, based upon the results of completed in-
                        orbit performance tests, at least one Payload is a
                        Successfully Operating Payload.

               6.3.1.8  "Payload" The Payload shall be each payload specified in
                        Exhibit B1 or B2 (as applicable to the appropriate
                        spacecraft).

        6.3.2  Buyer shall pay to Contractor the Incentives Obligations, and the
               Change Order Profit Component (if applicable), as follows:

               6.3.2.1  Incentives Obligations and Change Order Profit
                        Component. Subject to Section 6.3.2.3 through 6.3.2.6,
                        Buyer shall be obligated to pay to Contractor the
                        Incentives Obligation and any Change Order Profit
                        Component (if applicable), as follows: Buyer shall pay
                        Contractor equal monthly payments that, when summed on a
                        net present value basis to the Commencement Date using
                        the Incentives Interest Rate, equals the total amount of
                        Incentives Obligations plus Change Order Profit
                        Component due hereunder. For example, if the Galaxy
                        VIII(i)R Spacecraft is a Successfully Injected
                        Spacecraft and on the Commencement Date all Transponders
                        on such Spacecraft are and continue to be Successfully
                        Operating Transponders for fifteen (15) years,

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                        assuming the maximum [***] for the entire period, the
                        monthly Incentives Obligations payment would be [***]
                        (the "Nominal Payment"). If the Incentives Interest Rate
                        is less than [***] per annum for any given month, the
                        Incentives Obligations payment will be less than the
                        Nominal Payment. In such circumstances, the amount of
                        each month's payment will be calculated on a net present
                        value basis to the date of the last month's payment
                        using the remaining unpaid principal as the new
                        principal, the Incentives Interest Rate, and a term
                        equal to the number of months remaining in the
                        Incentives period. In the event that a Spacecraft has
                        multiple Payloads, the Incentives Obligations will be
                        allocated among such Payloads in the same manner as the
                        allocation in Buyer's policy for launch and in-orbit
                        insurance for such Spacecraft on the date that is not
                        less than 30 days prior to the Launch Date. The
                        Incentives Obligations, identified above, shall be
                        payable in equal and consecutive monthly installments
                        over the Specified Operation Lifetime of the Spacecraft,
                        except as may be adjusted as set forth herein. Except as
                        provided in Paragraph 6.3.4, the first installment of
                        each Incentives Obligations shall be paid on the
                        Spacecraft's Commencement Date. A sample schedule matrix
                        showing Incentives Obligations payments for fifteen
                        years, assuming fully successful operation, and with a
                        hypothetical interest rate will be attached to this
                        Contract as Exhibit G.

                        The foregoing notwithstanding:

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                    (a)  If the Spacecraft is not a Successfully Injected
                         Spacecraft pursuant to Section 6.3.1.4 but is
                         successfully placed into its on-station orbit by
                         Contractor during the "Transfer Period" (defined as the
                         period from separation of the Launch Vehicle through
                         on-station acquisition) then, subject to Section
                         6.3.2.3, Buyer shall pay the Incentives Obligations for
                         the Spacecraft in equal and consecutive monthly
                         installments over a period of the Spacecraft's On
                         Station Operational Lifetime (defined at Section
                         6.3.2.1(b)).

                    (b)  If the Spacecraft is Successfully Injected, but is not
                         successfully placed into its on-station orbit by
                         Contractor during the Transfer Period, then the total
                         amount of the Incentives Obligations for the Spacecraft
                         shall be multiplied by a percentage equal to (i) the
                         On-Station Operational Lifetime divided by (ii) the
                         Calculated Operational Lifetime, which percentage
                         shall, in no event, be greater than one. Subject to
                         Section 6.3.2.3, Buyer shall pay such Incentives
                         Obligations for the Spacecraft in equal and consecutive
                         monthly installments over a period of the Spacecraft's
                         On-Station Operational Lifetime. The "On Station
                         Operational Lifetime" shall be mutually determined by
                         Buyer and Contractor, based on standard engineering
                         practices, using measured actuals of the Spacecraft,
                         existing at the end of the Transfer Period. However,
                         should the

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                         Spacecraft continue to operate successfully beyond the
                         On-Station Operational Lifetime, Contractor will
                         continue to earn Incentives Obligations at the same
                         monthly rate up to the Specified Operational Lifetime.

                    (c)  Finally, if the Spacecraft is not a Successfully
                         Injected Spacecraft and, in addition, is not
                         successfully placed into its on-station orbit during
                         the Transfer Period, then the total amount of the
                         Incentives Obligations shall be multiplied by the sum
                         of (A)(i) the Specified Operational Lifetime, plus (ii)
                         the On-Station Operational Lifetime, minus (iii) the
                         Calculated Operational Lifetime, divided by (B) the
                         Specified Operational Lifetime, which percentile shall,
                         in no event, be greater than one. Subject to Section
                         6.3.2.3, Buyer shall pay such Incentives Obligations
                         for the Spacecraft in equal and consecutive monthly
                         installments over a period of the Spacecraft's On-
                         Station Operational Lifetime.

                         For purposes of any provision of this Contract, if the
                         Incentives Obligations or related payment periods are
                         to be recalculated, the monthly installments due shall
                         be recalculated to reflect the appropriate interest
                         amount based upon the Incentive Interest Rate.

           6.3.2.2  Notwithstanding the foregoing, if at any time Buyer
                    continues to utilize for revenue-producing purposes any
                    Transponder that is

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                    not a Successfully Operating Transponder, then Buyer shall
                    pay a pro rated amount of the Incentives Obligation
                    attributable to such Transponder that is proportionate to
                    the partial benefit that Buyer derives from such Transponder
                    (the "Partial Incentive Payment"), all as mutually agreed
                    upon by the Parties in good faith.

           6.3.2.3  Except for any Change Order Profit Component (which is
                    non-contingent), and except as provided in Paragraph
                    6.3.2.2, payment of any Incentives Obligation shall be
                    contingent upon the Transponders being Successfully
                    Operating Transponders, as set forth herein, on the
                    applicable Payload and shall be pro-rated, therefore, on a
                    Transponder equivalent-by-Transponder equivalent basis over
                    the duration of the applicable term of such Obligation;
                    provided, however, that beginning on the date, if any, that
                    any one or more of the Payloads are no longer a Successfully
                    Operating Payload, as and when ascertained pursuant to
                    Section 6.3.2.4 (the "Degraded Payload"), then Buyer's then-
                    remaining Incentives Obligations for such Payload(s)
                    (exclusive of any Change Order Profit Component, as
                    applicable) shall be deemed extinguished.

           6.3.2.4  Whether any Transponder is not Successfully Operating
                    shall be mutually determined by Buyer and Contractor, based
                    on relevant technical data, reports and analyses, and each
                    Party will make available to the other Party for its review
                    upon reasonable request all data used in making such
                    determination. Any

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                    disagreements between the Parties shall be resolved in
                    accordance with the dispute resolution procedure set forth
                    in Article 33.

           6.3.2.5  If the Spacecraft has not been, or is not being,
                    Properly Operated by the Buyer, and any Transponders thereof
                    are not Successfully Operating Transponders, then the
                    Transponders of the Spacecraft which were Successfully
                    Operating prior to such improper operation of the Spacecraft
                    shall be deemed to be Successfully Operating Transponders
                    for purposes of Contractor's entitlement to payment of any
                    applicable Incentives Obligations for such period as such
                    Transponders would have reasonably been predicted to
                    continue to be Successfully Operating had the Spacecraft and
                    transponder thereon been Properly Operated by Buyer;
                    provided, however, that if the failure is the result of a
                    defect in the deliverable software (except to the extent
                    that such defect was caused solely by a modification to such
                    software by Buyer) or if Buyer demonstrates that the failure
                    of any Transponder to be Successfully Operating was not
                    caused primarily, directly or indirectly, by any act or
                    omission of Buyer, its agents, Subcontractors, Consultants
                    or representatives of any kind, then the foregoing provision
                    shall not apply with respect to such Transponder.

           6.3.2.6  Buyer may prepay any portion of the Incentives
                    Obligations or the Change Order Profit Component pursuant to
                    the schedule

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                    matrix attached as Exhibit G. Any remaining Incentives
                    Obligations so prepaid shall be subject to refund by
                    Contractor to Buyer, in any instance and to the extent that
                    Buyer's obligation to make such payments is relieved
                    pursuant to this Article 6, as outlined in the last sentence
                    of Section 6.3.4.1 hereof.

        6.3.3  "Spacecraft Retirement Payment". At any time following the
               Spacecraft's Delivery, Buyer may, at its option, cease to utilize
               the Spacecraft for any purpose; provided, however, that if Buyer
               does cease using the Spacecraft (or if the Spacecraft is rendered
               a total loss by virtue of Buyer's failure to Properly Operate the
               Spacecraft), then, upon the exercise date of such option or the
               declaration of the Spacecraft as a total loss as applicable, all
               remaining Incentives Obligations payments for any Transponder
               (and any Change Order Profit Component, if applicable) (subject
               to the provisions of Section 6.3.2.3 through 6.3.2.5) shall
               become immediately due and payable, all relative to the
               Spacecraft; and Buyer shall pay to Contractor such amounts, in
               immediately available funds, along with the outstanding balance
               of principal and accrued interest on any other outstanding
               payment obligations with respect to the Spacecraft, if any, as of
               such date. In determining the amount of principal and interest
               due, present value analysis discounted at the Incentives Interest
               Rate per annum shall be done for any scheduled payment stream
               previously created by the Parties hereunder. Notwithstanding the
               foregoing, Buyer shall have the right to cease using the
               Spacecraft and remove it from its orbital location at any time
               following the expiration of the Spacecraft's Useful

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               Commercial Life, without payment of such Spacecraft Retirement
               Payment.

        6.3.4  Incentive Obligations and Launch Delay

               6.3.4.1  If the Spacecraft has not been launched by the 181st day
                        after the earlier of (i) the actual date of shipment of
                        the Spacecraft by Contractor or (ii) Buyer's Preliminary
                        Acceptance of the Spacecraft, then, except as set forth
                        in Paragraph 6.3.4.2, the first of the equal and
                        consecutive monthly installment payments for Incentive
                        Obligations on the Spacecraft shall be due and payable
                        and the Specified Operational Lifetime shall be deemed
                        to have begun for purposes of this Paragraph 6.3 and
                        such payments shall commence (the "Pre-Launch Incentive
                        Payments"). If upon the Commencement Date or at any time
                        thereafter, any Transponder ceases to be a successfully
                        Operating Transponder or a Payload becomes a Degraded
                        Payload, then Contractor shall deliver to Buyer a refund
                        of that portion of the Pre-Launch Incentive Payment
                        attributable to such Transponder or Payload (plus
                        interest thereon calculated at the Incentives Interest
                        Rate), taking into account the amount of such time such
                        Transponder or Payload met the performance
                        specifications, and Buyer's subsequent Incentives
                        Obligations shall be reduced thereafter on a pro rata
                        basis; provided, if applicable, Buyer shall receive a
                        credit to the extent of any Pre-Launch Incentive
                        Payments, to be applied as an offset against Buyer's
                        consecutive monthly installment payments for the

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                    Incentives Obligations otherwise due and payable for the
                    months immediately following the Commencement Date.

           6.3.4.2  If the Spacecraft has not been Launched due primarily to
                    (1) Contractor's fault after shipment or (2) Contractor's
                    failure to timely meet the Spacecraft's scheduled Shipment
                    Date (where such failure in shipment is not caused by
                    Buyer's actions or inactions) (or a combination of clauses
                    (1) and (2) immediately above), then the first of the equal
                    and consecutive monthly installments of the Incentives
                    Obligations on the Spacecraft shall be due and payable on,
                    and interest shall not accrue until, the earlier to occur of
                    (i) the Commencement Date or (ii) one year after the earlier
                    of (a) the actual date of shipment of the Spacecraft by
                    Contractor or (b) Buyer's Preliminary Acceptance of the
                    Spacecraft.  If upon the Commencement Date, or at any time
                    thereafter, any Transponder on the Spacecraft (which has
                    been subject to a Launch delay under this Paragraph 6.3.4.2)
                    ceases to be a Successfully Operating Transponder or a
                    Payload becomes a Degraded Payload, then Contractor shall
                    deliver to Buyer a refund (plus interest thereon calculated
                    at the Incentives Interest Rate) of that portion of the Pre-
                    Launch Incentives Payments attributable to such Transponder
                    or Payload, taking into account the amount of time such
                    Transponder or Payload met the performance specifications,
                    and Buyer's subsequent Incentives Obligation for the
                    affected Payload on the Spacecraft shall be reduced
                    thereafter on a pro rata basis; provided, however, that
                    Buyer shall receive a credit to the extent of any

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                    Pre-Launch Incentive Payments, such credit to be applied as
                    an offset against Buyer's consecutive monthly installment
                    payments for the Incentives Obligations otherwise due and
                    payable for the months immediately following the
                    Commencement Date.

           6.3.4.3  If, for any reason other than primarily Contractor's
                    Fault, the Spacecraft has not been Launched within 24 months
                    following the Spacecraft's actual earliest date that the
                    Spacecraft is available for shipment provided that
                    Preliminary Acceptance has occurred (the "Shipment
                    Availability Date"), then the full amount of the Incentives
                    Obligations (and any Change Order Profit Component, if
                    applicable) (including principal and accrued interest, if
                    any) shall become immediately due and payable upon the last
                    day of such 24th month. If, however, the Spacecraft is
                    subsequently Launched within 54 months of its Shipment
                    Availability Date and any Transponder of the Spacecraft
                    ceases to be a Successfully Operating Transponder or a
                    Payload becomes a Degraded Payload, then Buyer shall be
                    entitled to a proportionate refund (plus interest thereon
                    calculated at the Incentives Interest Rate) for any
                    Incentives Obligations (and any Change Order Profit, if
                    applicable) paid for such Transponder or Payload, taking
                    into account the amount of time such Transponder or Payload
                    met the performance specifications. If, for any reason, the
                    Spacecraft has not been Launched prior to the third
                    anniversary of Shipment Availability Date (the "Third
                    Anniversary"), then Buyer shall have an

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                    option (the "LOPS/MOPS Option"), exercisable in writing
                    received by Contractor on or before the Third Anniversary,
                    to extend its right to utilize the Related Services for the
                    Spacecraft to the fifth anniversary of the Spacecraft's
                    Shipment Availability Date (the "Extension Period"). If
                    Buyer does not timely exercise the LOPS/MOPS Option, then
                    Buyer shall pay Contractor the portion of the "Related
                    Services Price" (as defined below) for the Spacecraft
                    expended by the Contractor. If Buyer timely exercises the
                    LOPS/MOPS Option, then the Related Services Price for the
                    Spacecraft during the Extension Period, shall be increased
                    by [***] beginning on the Third Anniversary. Buyer shall be
                    obligated to pay such escalation amount within 30 days of
                    receipt of invoice from Contractor. In any case,
                    Contractor's obligation to provide such services shall
                    terminate on the date which is fifty-four (54) months (or as
                    early as thirty-six (36) months) from the Shipment
                    Availability Date of the Spacecraft. If Contractor's
                    obligation to provide Related Services is terminated under
                    the immediately preceding sentence, then Buyer shall pay the
                    portion of the Related Services Price expended by the
                    Contractor. For purposes of this Paragraph 6.3.4.3, "Related
                    Services Price" shall mean the amount payable upon
                    completion of the Related Services pursuant to Paragraph
                    6.2.

           6.3.4.4  If, for any reason, other than Contractor's fault, a
                    Launch failure occurs between the time of Launch and the
                    Commencement Date (or if no Commencement occurs), then the
                    full amount of the

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                    Incentives Obligations (and any Change Order Profit
                    Component, if applicable) (the "Recoverable Amount(s)")
                    shall become immediately due and payable upon the date of
                    such Launch failure. Contractor shall be entitled to obtain
                    payment of such Recoverable Amounts from the proceeds of the
                    launch insurance obtained by Buyer and shall be entitled to
                    a priority in obtaining such proceeds over Buyer and all
                    other parties or claims; provided, however, that nothing
                    herein shall relieve Buyer of its obligations to pay to
                    Contractor all such Recoverable Amounts, as set forth
                    herein. Buyer agrees to name Contractor as a loss payee
                    under Buyer's launch insurance policy to the extent
                    Contractor is entitled to payment of Recoverable Amounts.
                    During the [***] immediately following such Launch failure,
                    Buyer shall use best reasonable efforts to obtain the
                    proceeds of its launch insurance to pay Contractor the
                    Recoverable Amounts, hereunder. However, if Contractor does
                    not receive all such Recoverable Amounts from the proceeds
                    of Buyer's launch insurance within such [***] period, then
                    Buyer shall be obligated immediately to compensate
                    Contractor for, and Contractor may also look to Buyer
                    directly for satisfaction of, all such Recoverable Amounts.
                    For the purposes of this Paragraph 6.3.4.4, "Launch" shall
                    mean intentional ignition of any first stage engine of the
                    Launch Vehicle.

     6.4  Contractor shall not be obligated to deliver the Spacecraft to the
          Launch Site if there are any outstanding Delinquent Payments owed by
          Buyer to Contractor

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          with respect to such Spacecraft under this Contract one month prior to
          shipment of such Spacecraft from the Contractor facility. "Delinquent
          Payments" are defined as those payments not received by Contractor
          within thirty (30) days of the later of (i) the dates due as defined
          in Paragraphs 6.2.1 and 6.2.2 above or (ii) the date that Buyer
          received Contractor's invoice therefor. Once Buyer has paid Contractor
          for any "Delinquent Payments" and any interest accrued in accordance
          with Paragraph 6.6 below, Contractor shall use its reasonable best
          efforts to ship such Spacecraft to the Launch Site so as to enable
          launch on the scheduled Launch Date and in any event to make shipment
          as soon as practicable and no later than sixteen (16) weeks after
          payment by Buyer of such Delinquent Payments. Buyer will be
          responsible for and will pay to Contractor any reasonable costs and
          [***] profit on such costs that Contractor may incur as a result of a
          delay in delivery due to Buyer's Delinquent Payments. Notwithstanding
          the foregoing, this Section 6.4 shall not relieve Contractor of its
          obligation to deliver a Spacecraft, and no "Delinquent Payment" shall
          be deemed to have occurred, due to any non-payment by Buyer on account
          of an alleged breach by Contractor or other dispute as to such payment
          provided such alleged breach of dispute is being handled in accordance
          with Article 33. . In such event, Buyer shall, within thirty (30) days
          of the date such payment is due, pay the full amount of such payment
          into an interest-bearing escrow account to be established at Bank of
          America, Concord, California. Upon settlement of the dispute as to
          such payment and alleged breach in accordance with Article 33, the
          Party entitled to the amount in escrow shall receive such amount
          together with all accrued interest thereon and the other Party shall
          pay all costs and fees associated with the escrow of such amount.

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     6.5  Invoice

          6.5.1  Invoices submitted to Buyer for payment shall contain a cross-
                 reference to the Contract number and the date specified in the
                 Payment Plan of Paragraph 6.2, if any. Contractor shall submit
                 one (1) original invoice for the Spacecraft in each instance
                 to:

                 PanAmSat Corporation
                 One Pickwick Plaza
                 Greenwich, CT 06830

                 Attention:  Adrienne Calderone, Controller, and Robert
                 Bednarek, Executive Vice President and
                             Chief Technology Officer

                 cc:  James Frownfelter, Senior Vice President -- Space
                      Systems

          6.5.2  Invoice amounts, as specified in Paragraph 6.2, provide for
                 billings to be submitted by the 15th day of each month (unless
                 such invoice is for Related Services or Exhibit H
                 Documentation) and in any case shall be paid by Buyer within
                 thirty (30) days upon receipt of the proper invoice by Buyer.

          6.5.3  The Contractor may submit the invoice for initial payments via
                 facsimile to Adrienne Calderone and the original invoice copy
                 shall be forwarded to the Buyer for record purposes. Such
                 facsimile copy shall be recognized as the formal submittal of
                 and receipt by the Buyer of such invoice.

     6.6  Late Payments

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                    In the event of a failure by the Buyer or the Contractor to
                    make a payment required pursuant to this Contract, the
                    delinquent Party shall pay interest at the rate of [***] on
                    the overdue amount for the number of days that the payment
                    is overdue, commencing on the date payment is due and
                    terminating on the date the overdue amount is paid in full.
                    Notwithstanding the foregoing, this Section 6.6 shall not
                    apply to any payment made into escrow in accordance with
                    Section 29.4.

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ARTICLE 7.  SPACECRAFT LAUNCH DATE

          7.1.1  "Launch Date" Defined. The calendar date during which a Launch
                 will occur. The Launch Date shall be notified by Buyer to
                 Contractor no later than three (3) months prior to the first
                 day of the applicable Launch month and once established, shall
                 become an express term of this Contract, subject to change in
                 accordance with this Article 7.

          7.1.2  "Launch Window" Defined. A period of time within the Launch
                 Date during which a Launch can occur and meet mission
                 requirements. The Launch Window shall be established by mutual
                 agreement of Buyer and Contractor no later than forty-five (45)
                 days prior to the Launch Date and once established, shall
                 become an express term of this Contract.

          7.1.3  Adjustment of dates. The time periods as delineated in Sections
                 7.1.1 and 7.1.2 shall be adjusted to reflect applicable launch
                 provider contracts, consistent with ordinary practices of such
                 providers as familiar to the Parties.

     7.2  The Contract Price set forth in Paragraph 5.1 includes Contractor
          furnished launch support services, post launch support services, in-
          orbit test support services, and post title transfer monitoring and
          command of the Spacecraft if Buyer invokes the remedial provisions of
          Article 3, Paragraph 3.3.

     7.3  If the Spacecraft Launch Date is postponed for any reason other than
          the primary fault of Contractor (and/or any of its subcontractors or
          suppliers), excluding any postponement due to an Excusable Delay as
          defined in Article

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          12, the Parties shall negotiate in good faith to determine an
          equitable adjustment to the price and affected terms of this Contract,
          if any. If the cost of supplies or materials made obsolete or excess
          as a result of such postponement is included in the equitable
          adjustment, Buyer shall have the right to prescribe the manner of
          disposition of such supplies or materials. Costs included in the
          equitable adjustment shall include but not be limited to: support
          personnel standby; extra travel expenses; transport termination or
          rescheduling fees and a profit rate of [***]

     7.4  Notwithstanding the foregoing, if the Spacecraft Launch Date is
          postponed by either Party due to an Excusable Delay, as defined in
          Paragraph 12.1 herein, the terms of Article 12 herein shall govern
          such postponement.

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ARTICLE 8.  BUYER-FURNISHED ITEMS

     8.1  The following facilities, equipment, and services ("Buyer-Furnished
          Items") shall be furnished by Buyer at no cost to Contractor, in a
          timely manner, so as to enable Contractor to perform the work
          described herein.

          1)  Reservation and procurement of launch services, launch insurance
              (Contractor to be named a loss payee as provided in Paragraph
              6.3.4.2), and associated services and facilities as described in
              the applicable Launch Vehicle users' manual.

          2)  Storage of a Spacecraft and related test equipment for all Force
              Majeure Events which prevent Buyer from supplying Buyer-Furnished
              Items and/or Launch Vehicle delays.

          3)  Earth station facilities for IOT including appropriate RF
              facilities, but not specialized test equipment.

          4)  Lightning warning services.

          Contractor will provide preliminary requirements of Item 1 above to
          Buyer no later than two (2) months after the Effective Date of this
          Contract to assist Buyer's compliance with this Article, which shall
          be consistent with what Contractor has generally required Buyer to
          secure for previous launches with the same launch provider. Subject to
          the confidentiality requirements of the applicable agreements,
          Contractor will be allowed to review the list of services which Buyer
          has procured in Buyer's contract(s) for launch services.

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          In the event that the Buyer-Furnished Items set forth above are not
          provided in a timely manner, excluding any excusable delay as defined
          in Article 12 herein, then Buyer shall be liable to Contractor for all
          applicable costs which shall include but not be limited to:
          procurement or rental of suitable substitutes for such Buyer Furnished
          Items at no higher than market prices, with title and possession of
          all such procured items reverting to Buyer after Contractor's use
          under this Contract; support personnel standby; extra travel expenses;
          transport termination or rescheduling fees; and installation/de-
          installation of communication links to the Launch Site and a profit
          rate of [***].  In the event that the Buyer-Furnished Items are not
          provided in a timely manner and the Contractor must procure or rent
          suitable substitutes, and the foregoing process has materially
          affected the Contractor's ability to ship the Spacecraft on or prior
          to the applicable Shipment Date, the Parties agree to adjust such
          Shipment Date to account for any delay resulting from the non-
          suitability or non-timely provision of such Buyer-Furnished Items.

     8.2  Contractor shall maintain a system to ensure the adequate control and
          protection of Buyer's Property. For the purposes of this Article,
          "Buyer's Property" shall be defined as any item which Buyer provides
          to the Contractor or directs Contractor to maintain in storage or an
          inventory account under this Contract. Upon receipt of notification
          from Buyer, the Contractor shall complete and return within fifteen
          (15) working days a Property System Certification describing the
          system that will be used to control Buyer's Property. Additionally,
          upon prior notice to Contractor, Buyer's representative may, at its
          option and at no additional cost to Buyer, conduct surveillance of the
          Contractor's Property Control System during normal

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          business hours as Buyer deems necessary to assure compliance with the
          terms and conditions of this Article.

     8.3  Contractor shall, commencing with its receipt and during its custody
          or the use of any Buyer's Property, accomplish the following:

          A.   Establish and maintain inventory records and make such records
               available for review upon Buyer's request;

          B.   Provide the necessary precautions to guard against damage from
               handling and deterioration during storage;

          C.   Perform periodic inspection to assure adequacy of storage
               conditions; and

          D.   Ensure that Buyer's Property is used only for performing this
               Contract, unless otherwise provided in this Article or approved
               by Buyer.

     8.4  Contractor shall not modify, add-on, or replace any Buyer's Property
          without Buyer's prior written authorization. Contractor shall
          immediately report to Buyer's contract representative the loss of any
          Buyer's Property or any such property found damaged, malfunctioning,
          or otherwise unsuitable for use. The Contractor shall determine and
          report the probable cause and necessity for withholding such property
          from use.

     8.5  Upon termination or completion of this Contract, and upon request by
          Buyer, the Contractor shall perform a physical inventory, adequate for
          accountability and disposition purposes, of all Buyer's Property
          applicable to such terminated or completed agreement and shall cause
          its subcontractors and suppliers at every tier to do likewise.

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     8.6  The use of Buyer's TT&C ground systems at Fillmore (for C-Band
          Programs) or Castlerock (for K-Band programs) shall be provided at no
          cost to the Contractor for transfer orbit services.

ARTICLE 9.  INSPECTION AND ACCEPTANCE

     9.1  Inspection of all deliverable hardware, documentation and Contractor's
          services provided hereunder shall take place in accordance with the
          terms of Article 10, entitled "Access to Work in Process," herein.

     9.2  "Preliminary Acceptance" of the Spacecraft shall occur when all in-
          plant tests required to be performed by Contractor for the Spacecraft
          and other deliverable hardware have been completed and the Contractor
          has demonstrated at the pre-ship review that the Spacecraft and other
          deliverable hardware and contract deliverables meet the requirements
          of this Contract, at which time Buyer shall accept the Spacecraft and
          other deliverable hardware on a preliminary basis in writing within
          five (5) business days. If the Spacecraft or other deliverable
          hardware is unacceptable, Contractor shall promptly and at its
          expense, rectify the unsatisfactory hardware and resubmit such
          hardware for acceptance by Buyer as provided above. In either case,
          such hardware shall be deemed accepted upon failure of Buyer to notify
          Contractor in writing within the above five (5) business days that it
          is accepted, rejected or that in Buyer's opinion further corrective
          action must be taken by the Contractor.  In the event that Buyer has
          not given Preliminary Acceptance of the Spacecraft, Contractor shall
          not ship the Spacecraft from Contractor's facility without Buyer's
          prior

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          written consent. Any such Preliminary Acceptance shall not constitute
          a "Consent to Fuel" nor a "Final Acceptance", which shall occur
          pursuant to Paragraphs 9.3 and 9.4, respectively.

     9.3  Buyer shall have access to launch integration facility and/or launch
          site test results during the launch campaign in accordance with the
          provisions of Article 10, Paragraph 10.1 "Access to Work in Process."
          Contractor shall not fuel the Spacecraft at the launch site until
          Buyer has given its written "Consent to Fuel" notice after
          satisfactory completion and Buyer's review of successful launch site
          test data upon completion of launch integration facility and/or launch
          site tests specified in Exhibit C, Spacecraft Integration Test Plan.

     9.4  Final Acceptance of the Spacecraft shall occur upon the earlier to
          occur of (i) the completion of In-orbit Testing in accordance with
          Exhibit A, or (ii) immediately before a Partial Failure, Total Failure
          or Total Constructive Failure of the Spacecraft (as each such term is
          defined in the applicable launch insurance contract or successor
          contract), which occurs at or after Intentional Ignition.

     9.5  With respect to deliverable Hardware which Buyer orders Contractor to
          store, the Hardware shall be stored at a location to be negotiated and
          Final Acceptance shall occur at the end of the [***] warranty period
          as set forth in Article 16 herein, entitled "Spacecraft Warranty," or
          such other event mutually agreed upon between the Parties.

     9.6  Non-Conforming Products.

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        9.6.1  At (i) the Effective Date (in the case of Galaxy VIII(i)R),
               (ii) the Option exercise Date (in the case of an Option
               Spacecraft) and (iii) the order date (in the case of a
               Replacement Spacecraft), Contractor shall notify Buyer in writing
               of the dry mass of such Spacecraft (the "Specified Dry Mass").
               Contractor shall formally notify Buyer, by letter, not later than
               ten (10) months prior to the Shipment Date for such Spacecraft,
               and at any time thereafter, in the event that, based on actual
               mass measurements and historical statistics, the dry mass for a
               Spacecraft is projected to exceed [***]. If (i) the Specified Dry
               Mass for a Spacecraft does not exceed [***], (ii) Contractor
               notifies Buyer pursuant to the immediately preceding sentence
               that dry mass for such Spacecraft is projected to exceed [***]
               and as a result such Spacecraft cannot achieve the Specified
               Operational Lifetime on a Ariane 42L launch vehicle and (iii)
               Buyer will be required to pay for additional weight from the
               Ariane launch provider in order to achieve the Specified
               Operational Lifetime without delaying the placing of the
               Spacecraft in its orbital location by more than fifteen (15)
               additional days, then Contractor shall reimburse Buyer for such
               additional payments up to a maximum of [***].

        9.6.2  Any Preliminary Acceptance or Final Acceptance by Buyer of a
               Spacecraft that does not conform to the requirements of this
               Contract (whether or not related to weight) shall not affect the
               Parties rights and obligations under Paragraph 6.3 ("Incentive
               Obligations") with respect to the Spacecraft or other deliverable
               that does not perform to the specifications of this Contract.

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          9.6.3  In the event that (i) Contractor makes a reimbursement to Buyer
                 with respect to a Spacecraft pursuant to Paragraph 9.6.1, and
                 (ii) the Useful Commercial Life of such Spacecraft continues
                 beyond the Specified Operational Lifetime, then Buyer shall pay
                 to Contractor each month that the Useful Commercial Life of
                 such Spacecraft continues (not to exceed thirty-six months
                 beyond the Specified Operational Lifetime) an amount equal to
                 the lesser of (a) [***] or (b) [***] All amounts payable by
                 Buyer pursuant to this Paragraph 9.6.3 shall include interest
                 on the amount payable by Buyer, calculated at the Incentives
                 Interest Rate from the date that Contractor reimbursed Buyer
                 pursuant to Paragraph 9.6.1 until the date of the applicable
                 payment by Buyer. [***]

     9.7  Until there has been a launch of the Spacecraft that does not result
          in a Total Failure, Total Constructive Failure or Partial Failure, (as
          defined in the applicable launch insurance contract) prior to the
          completion of the Related Services, Contractor shall [***] and shall
          [***]

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ARTICLE 10.  ACCESS TO WORK IN PROCESS

    10.1  Contractor shall afford Buyer access to work in progress being
          performed at Contractor's plants and (subject to the Buyer's launch
          vehicle contract) at the launch integration facility and/or launch
          site pursuant to this Contract, including technical data,
          documentation, and hardware, at all times, subject to Contractor's
          approval not to be unreasonably withheld, during the period of
          Contract performance, provided such access does not unreasonably
          interfere with such work or require the disclosure of Contractor's
          proprietary information to third parties and subject to (i)
          Contractor's security procedures and (ii) U.S. or foreign government
          laws, rules and regulations.

    10.2  To the extent that the Contractor's major subcontracts permit,
          Contractor shall afford Buyer access to work being performed pursuant
          to this Contract in subcontractor's plants during normal business
          hours in the company of Contractor's representatives.

          Contractor shall exert reasonable efforts in subcontracting to obtain
          permission for Buyer access to those major subcontractors' plants.
          Major subcontracts are defined as those subcontracts in excess of
          [***]

    10.3  Buyer shall have the right to witness on a non-interference basis all
          system and subsystem tests scheduled by Contractor in connection with
          the performance of work under this Contract. If the system or
          subsystem tests are performed by a subcontractor of Contractor,
          Contractor shall take all reasonable steps to secure Buyer's access to
          the subcontractor's facility or facilities. Buyer's right to witness
          testing shall be on a non-interference basis with the subcontractor's

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          activities and subject to (i) any subcontractor security procedures
          and (ii) U.S. or foreign government laws, rules, and regulations.

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ARTICLE 11.  TERMINATION FOR DEFAULT; LIMITATION OF LIABILITY

    11.1  Subject to provisions of Article 3 entitled "Spacecraft,
          Documentation and Related Services," Article 5 entitled "Price" and
          Article 12 entitled "Excusable Delays" and the final sentence of
          Paragraph 4.3, Buyer may issue a written notice of default with
          respect to a particular Spacecraft to Contractor if: (i) Contractor
          fails [***] as confirmed in writing by the Contractor's and Buyer's
          Senior Executives and such failure may result in a delay in delivery
          of more than [***]; or (ii) the delivery of such Spacecraft or
          Contractor's performance of any material obligation under the Contract
          has been delayed for more than [***] other than due to the primary
          fault of Buyer or a Force Majeure Event. Subsequent to the issuance of
          said notice, the Buyer may terminate this Contract with respect to
          such Spacecraft and thereafter elect remedies as identified in
          Paragraph 11.2 below.

    11.2  If Buyer terminates this Contract, in whole or in part, as provided
          in Paragraph 11.1 herein, Buyer, at its sole option, shall either: (i)
          take title to all deliverable hardware, all hardware in process which
          ultimately would have been deliverable by Contractor and all drawings
          and data produced by Contractor which ultimately would have been
          deliverable by Contractor, the cost of which has been charged or
          becomes chargeable to any work terminated plus all reasonable
          reprocurement costs up to a maximum amount per Spacecraft of: (a)
          [***] in the event of a termination of this Contract solely with
          respect to Documentation and/or Related Services for such Spacecraft
          or (b) [***] with respect to a complete termination of the Contract
          with respect to such Spacecraft; or (ii) receive a refund of all
          payments submitted to Contractor by the Buyer for performance of this
          Contract for the portion terminated by Buyer, [***] and

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          Contractor shall retain title and possession to all terminated
          hardware and data which ultimately would have been deliverable by
          Contractor.

    11.3  Notwithstanding the other provisions of this Article, there will be
          no termination for default after Intentional Ignition of the Launch
          Vehicle for the applicable Spacecraft.

    11.4  If, after termination of this Contract (or portion thereof) under the
          provisions of this Article, a final determination is made pursuant to
          Article 33, entitled "Disputes," that Contractor was not in default
          under the provisions of this Article, or that the default was
          excusable under the provision of Article 12 entitled "Excusable
          Delays," the rights and obligations of the Parties shall be the same
          as if notice of termination had been issued pursuant to Article 14,
          entitled "Termination for Convenience," or pursuant to Article 12,
          Paragraph 12.4, as the case may be.

    11.5  Except as otherwise provided in the Contract, the rights and remedies
          of the Parties provided in this Article shall be in lieu of any other
          rights and remedies provided by law or in equity in the event
          Contractor fails to meet its obligations under this Contract. Buyer
          shall have no other rights or remedies for late delivery of the
          Spacecraft, Documentation and Related Services under this Contract
          except for those rights and remedies expressly provided for in this
          Contract.

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ARTICLE 12.  EXCUSABLE DELAYS

    12.1  If either Party or a subcontractor of either Party is delayed by act
          of God, or of the public enemy, fire, flood, earthquake, epidemic,
          quarantine restriction, strike, walkout, freight embargo, or any other
          event which is beyond their control and does not arise from the acts
          or omissions of the delayed Party or its respective subcontractors,
          said delay shall constitute an excusable delay ("Force Majeure
          Events").  In the event of an excusable delay, there shall be an
          equitable adjustment to the time of delivery and/or performance stated
          in this Contract. The affected Party shall give notice in writing to
          the other Party within 10 working days that an excusable delay
          condition exists after learning of such delay. Such notification shall
          include the cause of the excusable delay, the expected length of the
          excusable delay, and alternate plans to mitigate the effect of the
          excusable delay.

    12.2  If the affected Party, as defined in Paragraph 12.1 above, requests
          or experiences, on a cumulative basis, excusable delay(s) greater than
          [***] the Parties shall enter into good faith negotiations to develop
          a mutual course of action and/or an equitable adjustment to the
          affected terms of this Contract.

    12.3  Notwithstanding the foregoing, if the Launch Date for the Spacecraft
          defined in Paragraph 7.1 herein is delayed due to a Force Majeure
          Event affecting Buyer's ability to furnish any item to be supplied by
          it under Article 8 hereof, Buyer shall reimburse Contractor for all
          reasonable expenses incurred as a result, including without limitation
          expenses for: support personnel standby; extra travel expenses; and
          transport termination or rescheduling fees.

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    12.4  Notwithstanding anything herein to the contrary, in the event that a
          Force Majeure Event occurs and continues to delay or prevent
          performance by Contractor of its obligations as to either or both
          Spacecraft for a period of [***] or longer from the initial occurrence
          of such Force Majeure Event, then Buyer shall have the right to
          terminate this Contract with respect to the affected Spacecraft upon
          thirty (30) days written notice.  In the event of a termination under
          this Paragraph 12.4, Buyer shall be entitled to a refund of [***] and
          Contractor shall retain title to all Deliverables produced by
          Contractor under this Contract with respect to the affected
          Spacecraft.

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ARTICLE 13.  AMENDMENTS

     The terms and provisions of this Contract shall not be amended or modified
     without specific written provision to that effect, signed by the Authorized
     Representative(s) of both Parties. These Authorized Representative(s) are
     identified in Article 27, "Notices and Authorized Representative(s)." No
     oral statement of any person shall in any manner or degree modify or
     otherwise affect the terms and provisions of this Contract.

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ARTICLE 14.  TERMINATION FOR CONVENIENCE

    14.1  Buyer may terminate all or any portion of the work to be performed
          pursuant to this Contract upon five (5) days written notice to
          Contractor. Buyer shall pay Contractor, in the event of such
          termination, termination liability equaling all Costs (as defined in
          Paragraph 14.4 below) expended by Contractor for all work done up to
          the date of termination on the terminated portion of the Contract,
          settlements with subcontractors for work performed prior to
          termination on the terminated portion of the Contract, and
          Contractor's reasonable costs related to termination which would not
          otherwise have been incurred plus a [***] profit for the applicable
          termination costs and charges, but in no event more than the maximum
          termination liability for the applicable Spacecraft that is set forth
          in Exhibit F hereto, as of the date of termination, less amounts
          previously paid by Buyer to Contractor pursuant to Article 6; provided
          that the Parties agree that Exhibit F sets forth the maximum
          termination liability if the entire Contract is terminated under this
          Article 14 with respect to the applicable Spacecraft, and that the
          maximum termination liability shall be reduced pro rata appropriately
          in the event of a termination under this Article 14 of less than all
          the work to be performed by Contractor.  Buyer shall pay the unpaid
          balance of such termination liability within thirty (30) days of
          Buyer's receipt of certification of Contractor's costs. In the event
          that Buyer has paid to Contractor any amount in excess of such
          termination liability, then Contractor shall refund such excess amount
          to Buyer within thirty (30) days of certification of costs.  In no
          event shall the termination liability for a Spacecraft exceed either
          the Contract Price defined in Article 5 herein or the amount specified
          in Exhibit F for such Spacecraft.

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    14.2  In the event of termination by Buyer hereunder, and upon payment in
          full of all amounts due (if any) under 14.1 above (or, if any amount
          is in dispute, payment of such amount into escrow in the manner set
          forth in Paragraph 6.4), all tangible work in process inventories
          generated under this Contract, with respect to the terminated work,
          shall become the property of Buyer. Buyer shall direct disposition of
          such property within sixty (60) days from date of termination (which
          disposition may include requesting Contractor to undertake mitigation
          efforts in accordance with Paragraph 14.3 below) or such other date as
          agreed to by the Parties. Final acceptance and transfer of title for
          all tangible work in process inventories to be delivered to the Buyer
          in the event of termination shall be the subject of separate
          negotiations between Buyer and Contractor and shall be subject to
          applicable U.S. Government Export Regulations. The expense of
          disposition shall be borne by Buyer.

    14.3  At Buyer's request, Contractor shall use reasonable best efforts to
          identify an alternate use (i.e. sale to third parties and/or internal
          utilization) for any hardware affected by a termination under this
          Article 14.  The Contractor shall submit a proposal to Buyer, which,
          at a minimum, defines (i) the applicable hardware, (ii) the intended
          use of the hardware, (iii) the original acquisition cost/value of the
          applicable hardware, as available, and (iv) the sale/transfer
          payment(s) to be received by Buyer.  Contractor shall use its
          reasonable best efforts to obtain fair market value for the applicable
          hardware.  Buyer, at its sole option, may accept or reject the
          proposal submitted by Contractor. In the event that Buyer accepts the
          proposal submitted by Contractor, payment by Contractor to Buyer of
          the agreed upon payment value shall occur within thirty (30) days of
          the sale/transfer of the applicable hardware, or such other payment

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          period as mutually accepted between the Parties. If the Contractor's
          proposal is rejected by Buyer, and if Contractor is unable to find any
          alternative use within [***] of being requested to do so or if Buyer
          so directs, then Title to the applicable hardware shall be vested as
          stated in Paragraph 14.2 above.

    14.4  As used in this Article 14, Contractor's "Costs" shall mean costs
          actually incurred by Contractor in performing its obligations
          hereunder (including G&A costs) not to exceed [***] of such costs) all
          such costs to be determined in accordance with Contractor's normal
          accounting practices. Contractor shall provide to Buyer an invoice
          certified by a financial officer of the company stating that
          Contractor's claim for the costs properly includes only the costs
          specified in this paragraph. In the event Buyer desires independent
          verification of claim, Buyer may request to have independent certified
          public accountants (CPA) audit costs incurred by Contractor and report
          to the Parties.  The CPA to perform such audit shall be selected by
          the Buyer, subject to the approval of the Contractor, which approval
          shall not be unreasonably withheld (and in any event shall not be
          withheld if Buyer selects a "Big Six" accounting firm).  Contractor
          shall cooperate with such CPA and shall provide all data and records
          reasonably requested by such CPA.  Such audit shall be at Buyer's
          expense unless such audit shows Contractor's costs to have been
          overstated (in which event Contractor shall bear the audit expense).
          Such audit shall constitute a final determination of actual costs
          notwithstanding the provision of Article 33; provided that, if the
          costs determined by such report exceed the amount of Contractor's
          termination claim, Buyer shall only be obliged to pay the amount of
          Contractor's termination claim.

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    14.5  Contractor shall use its reasonable best efforts to include in its
          subcontracts for work hereunder terms that will enable Contractor to
          terminate such subcontracts with a goal of minimizing termination
          costs in a manner consistent with this Article 14.

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ARTICLE 15.  TITLE AND RISK OF LOSS

    15.1  Title and risk of loss or damage in respect of all items to be
          delivered under this Contract shall pass from Contractor to Buyer as
          follows:

          15.1.  Risk of loss of the Spacecraft and title shall pass from
                 Contractor to Buyer upon the earlier to occur of: (i) the
                 completion of In-orbit Testing in accordance with Exhibit A; or
                 (ii) immediately before a Partial Failure, Total Failure or
                 Total Constructive Failure (as each such term is defined in
                 Buyer's applicable Launch Insurance Contract) which occurs at
                 or after Intentional Ignition.

          15.1.2 In respect to a Spacecraft which Buyer directs Contractor to
                 store, title and risk of loss shall remain with the Contractor
                 until Final Acceptance as specified in Article 9.5 herein.

          15.1.3 "Risk of Loss" for purposes of this Article 15 is limited to
                 the responsibility and liability for a Partial Failure, Total
                 Failure or Total Constructive Failure (as each such term is
                 defined in Buyer's applicable Launch Insurance Contract).
                 Responsibility and liability for the Spacecraft prior to
                 Intentional Ignition is with the Contractor.

    15.2  In the event of damage to or destruction of deliverable hardware when
          Contractor shall have risk of loss, Contractor shall repair or replace
          (subject to Buyer's consent, not to be unreasonably withheld) said
          hardware.

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    15.3  Insurance Provided By Contractor: The Contractor shall, at its own
          ---------------------------------
          expense, provide and maintain the following insurance:

          15.3.1  "All Risk" Insurance

                  (i)   The Policy for "All Risks" insurance shall insure the
                        Contractor and name Buyer as additional insured and Loss
                        Payee as their interest may appear.

                  (ii)  The insurance shall cover the Spacecraft while in or
                        about the Contractor's and subcontractors' plants, while
                        at other premises which may be used or operated by the
                        Contractor for construction or storage purposes, while
                        in transit, or while at the designated launch site until
                        Intentional Ignition, or while the Spacecraft is stored
                        by the Contractor at Buyer's direction until Final
                        Acceptance as specified in Article 9.5.

                  (iii) Such insurance shall be sufficient to cover the full
                        replacement value or selling price of the Spacecraft and
                        may be issued with deductibles, for which losses shall
                        be borne by the Contractor.

                  (iv)  This "All Risk" insurance shall be in force from the
                        time of the Effective Date of this Contract and shall
                        continue in effect until Contractor's liabilities have
                        expired at Intentional Ignition, or Final Acceptance, if
                        earlier.

          15.3.2  Third Party Liability Insurance

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               (i)   The policy(s) for third party liability insurance shall be
                     written on forms the Buyer may review and shall include
                     Buyer as additional insured.

               (ii)  This third party liability insurance shall be in force from
                     the time of the Effective Date of this Contract and shall
                     continue in effect until Contractor's liabilities have
                     expired at Intentional Ignition.

               (iii) The policy(s) may be issued with deductibles, for which
                     losses shall be borne by the Contractor.

     15.4  General Insurance Requirements

               (i)   The Contractor shall, upon request, provide to the Buyer
                     certificates of the insurance policy(s) issued by an agent
                     of the Contractor's insurer(s) for coverage which the
                     Contractor is required to provide pursuant to the
                     provisions of these Articles.

               (ii)  All policies of insurance to be provided and maintained
                     pursuant to these Articles shall require the insurer(s) or
                     its authorized agent(s) to give each insured not less than
                     thirty (30) days prior written notice in the event of
                     cancellation or any proposed material change in such
                     policies, except for ten (10) days prior written notice in
                     the event of cancellation due to non-payment of premium.

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              (iii) The Contractor may also acquire and maintain, at its own
                    expense, other insurance for amounts and perils, and upon
                    such terms, conditions and deductibles as it may deem
                    advisable or necessary to cover any loss or damage to
                    persons or property that may occur as a result of the
                    performance of this Contract.

ARTICLE 16.  SPACECRAFT WARRANTY

    16.1  Contractor warrants that the Spacecraft, upon successful completion
          of Spacecraft in plant tests pursuant to Article 9 herein, shall be
          free from any defects in material or workmanship and shall conform to
          the applicable specifications and drawings, as evidenced by the
          applicable acceptance criteria in Exhibits A-D herein.

    16.2  This warranty shall start from the date of Preliminary Acceptance of
          the Spacecraft as stated in Article 9 herein, entitled "Inspection and
          Acceptance," and continue for a period of [***], or until the
          "Intentional Ignition" (defined herein as the Intentional Ignition of
          any rocket motor on the first stage of the Launch Vehicle) of the
          applicable Launch Vehicle, whichever is earlier.  [***] ("Warranty
          Time Period"). Contractor shall not be liable in Contract or in Tort
          for any incidental, special, contingent, or consequential damages.

    16.3  Buyer shall have the right at any time during the Warranty Time
          Period to reject any goods not conforming to this warranty and require
          that Contractor, at its expense, correct or replace (at Contractor's
          option) such goods with conforming goods. If at any time during the
          Warranty Time Period Contractor fails to correct or replace such
          defective goods and fails to initiate reasonable

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          efforts to correct or replace such defective goods within a reasonable
          period after written notification and authorization from Buyer, Buyer
          may then, by contract or otherwise, correct or replace such defective
          goods and equitably adjust the price.

    16.4  Except as otherwise expressly agreed upon in this Contract,
          Contractor shall have no liability, or responsibility in Contract or
          in Tort with respect to the Spacecraft after Intentional Ignition (as
          defined in Paragraph 16.2) of the Launch Vehicle.

    16.5  THE ABOVE WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR
          IMPLIED, INCLUDING FITNESS FOR PARTICULAR PURPOSE OR MERCHANTABILITY,
          AND THE REMEDY PROVIDED HEREIN IS THE SOLE REMEDY FOR FAILURE BY
          CONTRACTOR TO FURNISH A SPACECRAFT THAT IS FREE FROM MATERIAL DEFECTS
          IN MATERIAL OR WORKMANSHIP AS SET FORTH IN PARAGRAPH 16.1 ABOVE. ALL
          OTHER WARRANTIES OR CONDITIONS IMPLIED BY ANY OTHER STATUTORY
          ENACTMENT OR RULE OF LAW WHATSOEVER ARE EXPRESSLY EXCLUDED AND
          DISCLAIMED. CONTRACTOR AND ITS SUBCONTRACTORS SHALL HAVE NO LIABILITY
          IN CONTRACT OR IN TORT (INCLUDING NEGLIGENCE) OR IN ANY OTHER MANNER
          WHATSOEVER FOR A SPACECRAFT AFTER INTENTIONAL IGNITION OTHER THAN AS
          EXPRESSLY PROVIDED IN THIS CONTRACT.

    16.6  Any limitations on warranties, liability or requests for
          indemnification from liability for the malfunction of delivered items
          which are imposed upon the

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          Contractor by its various equipment suppliers shall be passed on
          directly to Buyer provided, however, nothing therein shall decrease or
          invalidate the rights of the Buyer during, or the length of, the
          Warranty Time Period as stated in this Article.

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ARTICLE 17.  INDEMNIFICATION

    17.1  Each Party shall indemnify and hold the other and/or all its
          officers, agents, servants, subsidiaries, affiliates, parent companies
          and employees, or any of them, harmless from any liability or expense
          in connection herewith on account of damage to property (excepting
          other Spacecraft in flight) and injuries, including death, to all
          persons including but not limited to employees of the Parties, and
          their subcontractors, and of all other persons performing any part of
          the work hereunder, arising from any occurrence caused by a negligent
          act or omission of the indemnifying Party or its subcontractors, or
          any of them in connection with the work to be performed by such Party
          under this Contract. The indemnifying Party shall have the right, but
          not the obligation, to participate in any legal or other proceedings
          concerning claims for which it is indemnifying under this Article 17
          and to direct the defense of such claims. However, with respect to
          such legal or other proceedings, the indemnifying Party shall pay all
          expenses (including attorneys fees incurred by the indemnified Party
          in connection with such legal or other proceedings) and satisfy all
          judgments, costs or other awards which have been incurred by or
          rendered against the indemnified Party. The indemnifying Party shall
          not settle any such claim, legal or other proceeding without first
          giving thirty (30) days prior written notice of the Terms and
          Conditions of such settlement and obtaining the consent of the
          indemnified Party, which consent shall not be unreasonably withheld or
          delayed.

    17.2  Notwithstanding the foregoing, neither the Contractor nor its
          subcontractors shall have any liability in Contract or in Tort, for
          damages to or caused by the Spacecraft after Intentional Ignition (as
          defined in Paragraph 16.2), and Buyer

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          shall obtain waivers of subrogation rights from Buyer's insurers
          against Contractor, and affiliates and subcontractors of Contractor.

ARTICLE 18.  SPACECRAFT NOT LAUNCHED WITHIN SIX MONTHS AFTER ACCEPTANCE

    18.1  If the Spacecraft is not launched within six (6) months after its
          Preliminary Acceptance per Article 9, entitled "Inspection and
          Acceptance," and is subsequently ordered to be launched within [***]
          following its Preliminary Acceptance, it is agreed that the Spacecraft
          shall be returned at Contractor's option and at Contractor's expense,
          to Contractor's facility for inspection and refurbishment Any
          inspection and refurbishment undertaken by Contractor to meet the
          requirements of Article 16 entitled, "Spacecraft Warranty," shall be
          at Contractor's expense, including Spacecraft transit insurance.
          After completion of inspection and refurbishment, Contractor shall not
          re-ship such Spacecraft without the consent of Buyer, which shall be
          governed by Paragraph 9.2.

    18.2  If the Spacecraft is not launched within six (6) months after its
          Preliminary Acceptance and is subsequently ordered to be launched
          later than [***] following its Preliminary Acceptance, it is agreed
          that the Spacecraft shall be returned, at Buyer's expense, to
          Contractor's facility for inspection and refurbishment. An equitable
          adjustment to Contract price for such inspection and refurbishment, to
          include a [***] profit component shall be negotiated by the Parties
          unless the fact that the launch is scheduled for later than [***] is
          due to Contractor's negligent acts or omissions.  After completion of
          inspection and refurbishment, Contractor shall not re-ship such
          Spacecraft without the consent of Buyer, which shall be governed by
          Paragraph 9.2.

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   18.3  If the Spacecraft is returned to Contractor's facility for inspection
          and refurbishment per the terms of Paragraph 18.2 above, all charges
          to return the Spacecraft to the Launch Site shall be borne by Buyer.

   18.4  If the Spacecraft has not been launched within [***] after its
          preliminary Acceptance, neither Party shall be further obligated to
          the other with respect to the Spacecraft. Disposition of the
          Spacecraft shall be at the option of Buyer with costs of such
          disposition to be borne by Buyer.

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ARTICLE 19.  PATENT/COPYRIGHT INDEMNITY

     19.1  Contractor shall indemnify and hold Buyer harmless against any
           liability or expense as a result of claims, actions, or proceedings
           against Buyer alleging the infringement of any trademarks, United
           States Copyright or mask work, United States Letters Patent, any
           other intellectual property rights, by any article fabricated by
           Contractor and delivered to Buyer pursuant to this Contract as set
           forth below.

     19.2  Contractor agrees to defend at its own expense any claim, action,
           proceeding or request for royalty payments or any claim for equitable
           relief or damages against Buyer, its subsidiaries, and the officers,
           employees, consultants and advisors of Buyer and its subsidiaries
           (each such party entitled to indemnification being referred to herein
           as a "Buyer Indemnitee") based on an allegation that the manufacture
           of any item under this Contract or the use, lease, or sale thereof
           infringes any United States Letters Patent trademark, United States
           Copyright or mask work or any other intellectual property right, and
           to pay any royalties and other costs related to the settlement of
           such claim, action, proceeding or request and to pay the costs and
           damages, including reasonable attorney's fees finally awarded as the
           result of any claim, action or proceeding based on such request,
           provided that Contractor is given prompt written notice of such
           request or claim by Buyer and given authority and such assistance and
           information as is available to Buyer for resisting such request or
           for the defense of such claim, action or proceeding, and provided
           that such Buyer Indemnitee has not intentionally done and shall not
           intentionally do anything to prejudice materially the defense of such
           claim, action or proceeding.

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           Any such assistance or information which is furnished by Buyer at the
           written request of Contractor is to be at Contractor's expense.

     19.3  In the event that, as a result of any such claim, action, proceeding
           or request: a) prior to delivery, the manufacture of any item is
           enjoined; or b) after delivery, the use, lease or sale thereof is
           enjoined, Contractor agrees to utilize its best effort to either: (1)
           negotiate a license or other agreement with plaintiff so that such
           item is no longer infringing; or (2) modify such item suitably or
           substitute a suitable item therefore, which modified or substituted
           item is not subject to such injunction, and to extend the provisions
           of this Article thereto. In the event that neither of the foregoing
           alternatives is suitably accomplished by Contractor, Contractor shall
           be liable to Buyer for Buyer's additional costs and damages arising
           as a result of such injunction; provided however, that in no event
           shall Contractor's entire liability under this Article exceed [***]
           for each Spacecraft. The existence of one or more claims, actions,
           proceedings or lawsuits shall not extend such amount.

     19.4  The foregoing indemnity shall not apply to any infringement resulting
           from a modification or addition, by other than Contractor, to an item
           after delivery.

     19.5  To the extent that an infringement of an intellectual property right
           results solely from the compliance by Contractor with an express
           direction of Buyer in a Change Order Request to employ a particular
           design not provided in the original Spacecraft Specification for such
           Spacecraft, then Buyer shall defend or settle, at its expense, any
           such suit against Contractor, subject to the same conditions,
           liability cap and other limitations provided in this Article 19 that
           are applicable to Contractor's indemnification obligations.

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     19.6  The foregoing constitutes the Parties' entire obligation with respect
           to claims for infringement described in this Article 19.

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ARTICLE 20.  RIGHTS IN INVENTIONS

     20.1  As used in this Contract, "Program Invention" shall mean any
           invention, discovery or improvement conceived of and first reduced to
           practice in the performance of work under this Contract. Information
           relating to Program Inventions shall be treated as proprietary
           information in accordance with the provisions of this Contract.
           Rights to inventions conceived solely by Contractor or its employees
           shall vest completely with Contractor.

     20.2  Contractor shall be the owner of all Program Inventions invented
           solely by Contractor. Contractor grants Buyer a royalty-free,
           nonexclusive license in Program Inventions to use Program Inventions
           solely for the purposes of maintenance and operation of the
           Spacecraft and delivered hardware. Contractor agrees that it will not
           revoke such license if Buyer is in compliance with the terms of the
           license.

           20.2.1  In the case of joint Program Inventions, that is, inventions
                   conceived jointly by one or more employees of both Parties
                   hereto, each Party shall have an equal, undivided one-half
                   interest in and to such joint Program Inventions, as well as
                   in and to patent applications and patents thereon in all
                   countries.

           20.2.2  In the case of such joint Program Inventions, Contractor
                   shall have the first right of election to file patent
                   applications in any country, and Buyer shall have a second
                   right of election. Each Party in turn shall

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                  make its election at the earliest practicable time, and shall
                  notify the other Party of its decision.

          20.2.3  The expenses for preparing, filing and securing each joint
                  Program Invention patent application, and for issuance of the
                  respective patent shall be borne by the Party which prepares
                  and files the application. The other Party shall furnish the
                  filing Party with all documents or other assistance that may
                  be necessary for the filing and prosecution of each
                  application. Where such joint Program Invention application
                  for patent is filed by either Party in a country which
                  requires the payment of taxes, annuities, maintenance fees or
                  other charges on a pending application or on an issued patent,
                  the Party which files the application shall, prior to filing,
                  request the other Party to indicate whether it will agree to
                  pay one-half of such taxes, annuities, maintenance fees or
                  other charges. If within sixty (60) days of receiving such
                  request, the non-filing Party fails to assume in writing the
                  obligation to pay its proportionate share of such taxes,
                  annuities, maintenance fees or other charges, or if either
                  Party subsequently fails to continue such payments within
                  sixty (60) days of demand, it shall forthwith relinquish to
                  the other Party, providing that said other Party continues
                  such payments, its interest in such application and patent and
                  the invention disclosed therein, subject, however, to
                  retention of a paid-up, non-exclusive, non-assignable license
                  in favor of the relinquishing Party, its parent, and any
                  subsidiary thereof to make, use, lease and sell the apparatus
                  and/or methods under said application and patent.

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     20.3  Each owner of a jointly-owned patent application or patent resulting
           therefrom shall, provided that it shall have fulfilled its
           obligation, if any, to pay its share of taxes, annuities, maintenance
           fees and other charges on such pending application or patent, have
           the right to grant non-exclusive licenses thereunder and to retain
           any consideration that it may receive therefor without obligation to
           account therefor to the other Party. In connection therewith, each of
           the Parties hereby consents to the granting of such non-exclusive
           licenses by the other Party and also agrees not to assert any claim
           with respect to the licensed application or patent against any
           licensee of the other Party thereunder during the term of any such
           license.

     20.4  No sale or lease hereunder shall convey any license by implication,
           estoppel or otherwise, under any proprietary or patent rights of
           Contractor, to practice any process with such product or part, or,
           for the combination of such product or part with any other product or
           part.

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ARTICLE 21.  INTELLECTUAL PROPERTY RIGHTS

     Except as provided in Article 20, neither Party shall acquire any rights
     with respect to any patent, trademark, trade secret, or any other
     intellectual property developed or used by the other Party in the
     performance of this Contract.

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ARTICLE 22.  FURNISHED DATA AND INFORMATION, DISCLOSURE AND USE

     "Proprietary Information" shall mean any data and information received by
     one Party from the other Party, which is identified as proprietary in
     accordance with either of the following methods: (i) if in writing, it
     shall be marked by the disclosing Party with an appropriate proprietary
     legend, or (ii) if disclosed orally, it shall be presented by the
     disclosing Party as Proprietary at the time of disclosure and shall be
     confirmed by the disclosing Party as Proprietary Information in writing
     within thirty (30) days of its initial oral disclosure.

     22.1  The receiving Party agrees to protect such data and information with
           the same degree of care which the receiving Party uses to protect its
           own confidential data and information, but in no case less than
           reasonable care.

     22.2  The receiving Party shall not disclose or have disclosed to third
           Parties, in any manner or form, or otherwise publish such data and
           information so long as it remains proprietary without the express
           written authorization of the other Party or except as otherwise
           permitted in this Article 22;

     22.3  The receiving Party agrees that it shall use such data and
           information solely in connection with the performance of work under
           this Contract, unless otherwise expressly authorized in writing by or
           on behalf of the other Party with the designation of specific data
           and information and use;

     22.4  The foregoing obligations with regard to such data and information
           shall exist unless and until such time as:

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          22.4.1  Such data and information are previously known to the
                  receiving Party or otherwise publicly available prior to its
                  receipt by the receiving Party without the default of the
                  receiving Party; or

          22.4.2  Such data and information have been lawfully disclosed to the
                  receiving Party by a third party which has the right to
                  disclose such data; or

          22.4.3  Such data and information are shown by written record to have
                  been independently developed by the receiving Party; or

          22.4.4  Such data and information are otherwise available in the
                  public domain without breach of this Contract by the receiving
                  Party; or

          22.4.5  Such data and information are disclosed by or with the
                  permission of the disclosing Party to a third party without
                  restriction; or

          22.4.6  Such data and information are disclosed by the receiving Party
                  as required by law or government regulation or order (as long
                  as the receiving Party provides reasonable notice to the
                  disclosing Party prior to such disclosure); or

          22.4.7  Such data and information are released for disclosure in
                  writing by or with the express written permission of the
                  disclosing Party.

    22.5  Providing Buyer shall obtain from the recipient a nondisclosure
          agreement at least as restrictive as this Article 22, and subject to
          Paragraph 22.7, Buyer may

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           disclose any Proprietary Information on a need to know basis to its
           customer(s), contractors, insurers, consultants, advisors, counsel
           and actual or prospective lenders, investors, or successors in
           interest. In no event shall either Party disclose any Proprietary
           Information of the other Party to any competitor of the other Party
           without first obtaining written consent from the other Party.

     22.6  Any copyrighted material belonging to a Party to this Contract may be
           copied by the other Party as necessary to enable the receiving Party
           to perform its obligations under this Contract, provided always that
           the copyright legend is retained on the material.

     22.7  Certain of the hardware and documentation ("Export-Licensed
           Products") furnished under this Contract will be authorized by the
           United States Government for export only to the designated launch
           site for Launch into space or other locations required for
           performance of obligations under this Contract. Such Export-Licensed
           Products or any other ITAR controlled hardware and/or documentation
           may not be resold, diverted, transferred, trans-shipped or otherwise
           be disposed of in any other country or in any other manner, either in
           their original form or after being incorporated through an
           intermediate process into other end items without the prior written
           approval of the United States Government, which approvals are the
           sole responsibility of the Buyer. Additionally, transferring
           ownership or control to any other person who is not a U.S. citizen or
           business entity which is not incorporated in the United States, of
           any of the Export-Licensed Products or ITAR controlled hardware
           and/or documentation furnished under this Contract is considered an
           export and as such also requires prior written approval from the
           United States Government,

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           which approvals are the sole responsibility of the Buyer. The Buyer
           represents and warrants that the ultimate end use of the Export-
           Licensed Products and ITAR controlled hardware and/or documentation
           is for provision of telecommunications services.

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ARTICLE 23.  PUBLIC RELEASE OF INFORMATION

     Neither Party shall issue news releases, articles, brochures,
     advertisements, prepared speeches, and other information releases
     concerning the work performed or to be performed under this Contract by
     Contractor or its subcontractors, or any employee or consultant of either,
     which contains new information not previously disclosed as permitted under
     the Contract, without first obtaining the prior written approval of the
     other Party concerning the content and timing of such release, which
     approval shall not be unreasonably withheld. The initiating Party shall
     provide such releases to the other Party for review within a reasonable
     time prior to the desired release date  and the other Party shall be
     required to respond within said time period.

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ARTICLE 24.  TAXES

     24.1  The price which shall be paid by Buyer for Spacecraft, Documentation
           and Related Services [***] any U.S. (federal, state or local) sales
           or use taxes, or fees or other U.S. taxes against real or personal
           property, however designated, which may be levied or assessed against
           Contractor. Buyer shall be responsible for the payment of all
           personal property taxes, if any, with regard to goods which are
           levied upon the Spacecraft and/or deliverable hardware subsequent to
           the date of delivery to Buyer. Buyer shall be responsible for any
           inventory taxes, sales taxes, state taxes or any other taxes that are
           assessed to Contractor as a result of storage of a Spacecraft in
           accordance with Article 32 or delivery of goods under the provisions
           of Article 14.

     24.2  In the event Contractor in the performance of this Contract is
           required to pay non-U.S. customs, import duties, value-added or sales
           taxes, commercial card fees, port fees, harbor maintenance tax, other
           charges, or taxes, or fees, (collectively, "Assessments") however
           designated (except for (i) any Assessment based on Contractor's
           income and (ii) any Assessment incurred as a result of or associated
           with Contractor's manufacture of a Spacecraft), then Buyer will
           reimburse Contractor for such Assessments within thirty (30) days of
           written notification by Contractor of payment; provided, however
           that, Contractor shall use its reasonable best efforts to obtain
           waivers, exemptions and/or relief from such Assessments when
           practicable, and Buyer shall not be required to pay any Assessment to
           the extent any such waiver, exemption or relief is pending or has
           been obtained. Notification shall then be supported by

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          an invoice and attachment(s) evidencing such payment having been made
          by Contractor.

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ARTICLE 25.  GOVERNING LAW

     This Contract shall be deemed made in the State of California and shall be
     construed in accordance with the laws of the State of California without
     resort to its conflicts of law principles.

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ARTICLE 26.  TITLES

     Titles given to the Articles herein are inserted only for convenience and
     are in no way to be construed as part of this Contract or as a limitation
     of the scope of the particular article to which the title refers.

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ARTICLE 27.  NOTICES AND AUTHORIZED REPRESENTATIVES

     Any notice or request required or desired to be given or made hereunder
     shall be in writing and shall be effective if delivered in person or sent
     by mail or by facsimile as indicated below:

     1.  PanAmSat Corporation
         One Pickwick Plaza
         Greenwich, Connecticut 06830

         Attention:  Robert Bednarek, Executive Vice President and
                     Chief Technology Officer

                cc:  James Frownfelter
                     Senior Vice President - Space Systems

                and
                cc:  Stephen G. Salem
                     Vice President and Associate General Counsel
                     1600 Rosecrans Avenue, Suite 400
                     Manhattan Beach, California 90266

         Authorized Representative(s):  R. Douglas Kahn
                                        President and Chief Executive Officer

                                        Robert Bednarek
                                        Executive Vice President and
                                        Chief Technology Officer

                                        James Frownfelter
                                        Senior Vice President - Space Systems

     2.  Boeing Satellite Systems, Inc.
         Post Office Box 92919, Airport Station
         Bldg. S41, M/S A374
         Los Angeles, California 90009

         Attention:  Christine L. Kung, Contract Manager
                cc:  Bernie Bienstock, Program Manager

         Authorized Representative(s):  Arturo A. Rosales

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                                        Vice President and General Manager
                                        Randy Brinkley, Senior Vice President
                                        Programs

     or in each case as a Party may direct by notice to the other Party in
     accordance with this Article 27.

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ARTICLE 28.  INTEGRATION

     This document, with Exhibits, constitutes the entire understanding between
     the Parties with respect to the subject matter of this Contract and
     supersedes all previous oral and/or written negotiations, commitments, and
     understandings of the Parties, including that certain Memorandum of
     Agreement dated as of October 16, 2000 (the "MOA") between the Parties.
     For the avoidance of doubt, this Contract shall not affect the terms and
     conditions of Amendment No. 2, dated concurrently herewith, to the Fixed
     Price Contract 98-PAS-002 dated as of October 9, 1998 between Buyer and
     Contractor.

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ARTICLE 29.  CHANGES

     Subject to Paragraphs 4.2.1 and 5.3:

     29.1  Any changes requested by Contractor during the performance of this
           Contract, within the general scope of this Contract, which will add
           or delete work, stop work, affect the design of the Spacecraft,
           change the method of shipment or packing, or the place or time of
           delivery, or will affect any other requirement of this Contract,
           shall be submitted in writing ("Change Proposal") to Buyer [***] days
           prior to the proposed effective date of the change. If such
           Contractor requested change causes an increase or decrease in the
           total price or other terms of this Contract, Contractor shall submit
           a proposal to Buyer detailing the impact of such change.

     29.2  Buyer shall notify Contractor in writing within ten (10) calendar
           days after receipt of the requested change and price adjustment
           (downward or upward), if any, whether or not it agrees with and
           accepts such Change Proposal. If Buyer agrees with and accepts the
           Contractor requested Change Proposal, Contractor shall proceed with
           the performance of the Contract as changed or in the case of a stop
           work order, suspend the performance of this Contract, and an
           amendment to the Contract reflecting the Change Proposal shall be
           incorporated into the Contract. If Buyer does not agree with the
           Contractor requested Change Proposal, the Parties shall negotiate in
           good faith to reach agreement on such Change Proposal. If the Parties
           are unable to agree on the requested change and price adjustment,
           then the Parties shall proceed with the performance of this Contract,
           as unchanged. In the event the Parties are able to reach agreement

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           on the change, but not on the price adjustment component, then the
           Parties shall elevate such dispute to the Senior Executives of the
           respective companies for resolution. If resolution cannot be achieved
           within a reasonable period of time under the circumstances, Buyer may
           make a qualified acceptance of the Change Proposal, accepting all
           matters other than price adjustment, and the issue of price
           adjustment shall be submitted for resolution by arbitration in
           accordance with the provisions of Paragraph 33.2 hereof. Pending such
           resolution of the price issue, the Parties shall perform their
           obligations under the Contract, or in the case of a Stop work order,
           suspend their obligations, as if the Change Proposal had been
           accepted; provided, however, that Buyer shall pay any disputed amount
           of the price adjustment into an escrow account in accordance with
           Paragraph 29.4 hereof on the date such amount would have been due and
           payable had the Change Proposal been accepted, or if the Change
           Proposal could result in a downward adjustment in the Contract Price
           in excess of the amount remaining to be paid by the Buyer, Contractor
           shall deposit the disputed amount of such excess into an escrow
           account in accordance with Paragraph 29.4 hereof.

     29.3  Buyer may submit to Contractor in writing (a "Change Order Request")
           [***] days prior to the proposed effective date of the change
           detailing any changes requested by Buyer during the performance of
           this Contract, within the general scope of the Contract, which will
           add or delete work, stop work, affect the design of the Spacecraft,
           change the method of shipment or packing, or the place or time of
           delivery, or will affect any other requirement of this Contract.
           Contractor shall respond to such Change Order Request in writing to
           Buyer within [***] days after such request. If Contractor determines
           that the change requested by Buyer is feasible and can be made at no
           additional cost and with

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          no associated delays, then Contractor shall so notify, Buyer and
          Contractor shall commence implementing such change. If the Contractor
          determines otherwise, then, Contractor shall submit to Buyer, a
          proposal detailing the impact of such change and the price adjustment
          (downward or upward), if any, (the "Change Order Offer"). Buyer shall
          notify Contractor in writing, within ten (10) calendar days after
          receipt of Contractor's Change Order Offer, whether or not it agrees
          with and accepts Contractor's Change Order Offer. If Buyer agrees with
          and accepts Contractor's Change Order Offer, Contractor shall
          immediately proceed with the performance of the Contract as changed,
          or in the case of a stop work order, suspend the performance of this
          Contract, and an amendment to the Contract reflecting such change
          shall be incorporated into the Contract. If Buyer does not agree with
          the Contractor's Change Order Offer, the Parties shall negotiate in
          good faith to reach agreement on such Change Order Offer. In the event
          the Parties are able to reach agreement on the change but not on the
          price adjustment component, then the Parties shall elevate such
          dispute to the Senior Executives of the respective companies for
          resolution. If resolution cannot be achieved within a reasonable
          period of time under the circumstances, Buyer may make a qualified
          acceptance of the Change Order Offer, accepting all matters other than
          price, and the issue of price shall be submitted for resolution by
          arbitration in accordance with the provisions of Paragraph 33.2
          hereof. Pending such resolution of the price issue, the Parties shall
          perform their obligations under the Contract, or in the case of a Stop
          work order, suspend their obligations, as if the Change Order Offer
          had been accepted; provided however, that the Buyer shall pay any
          disputed amount of the price adjustment into an escrow account in
          accordance with Paragraph 29.4 hereof on the date such amount would
          have been due and payable had the Change Order Offer been accepted, or
          if the Change Order Request could result

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           in a downward adjustment in the Contract Price in excess of the
           amount remaining to be paid by Buyer, Contractor shall deposit the
           disputed amount of such excess into an escrow account in accordance
           with Paragraph 29.4 hereof. The dispute shall then be resolved by
           arbitration under the provisions of Article 33, entitled "Disputes."

     29.4  Escrow Provisions - Disputed Amounts

           Disputed amounts with respect to any change under this Article 29
           shall be paid into an interest bearing escrow account to be
           established at Bank of America, Concord, California. Upon settlement
           of the dispute as to such payment and alleged breach in accordance
           with Article 33, the Party entitled to the amount or part thereof in
           escrow, shall receive such amount together with all accrued interest
           thereon and the other Party shall pay all costs and fees associated
           with the escrow of said amount. The placement of disputed amounts
           into an escrow account shall not relieve either Party of its
           remaining obligations under this contract.

     29.5  Determination of Price Adjustment of Change

           The Parties agree that the change order price adjustment (downward or
           upward) for any change shall be equal to the sum of (i) the "Change
           Order Cost" plus (ii) the "Change Order Profit Component". The
           "Change Order Cost" shall mean those additional or reduced recurring
           and non-recurring costs to Contractor to implement such change (or
           which are not required to be implemented), as determined in
           accordance with Contractor's normal accounting practices, including
           those general and administrative costs ("G&A Costs") of such change,
           as determined in accordance with Contractor's normal accounting
           practices, [***] of Contractor's costs for such change. The "Change
           Order Profit

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           Component" shall be equal to [***] of the Change Order Cost. The
           Total Change Order Cost shall be payable in accordance with the
           payment plan agreed by the Parties or, if applicable, by the
           Arbitrator. Unless otherwise agreed by the Parties, the Change Order
           Profit Component shall be payable in equal monthly installments at
           the same time as the monthly installments of Incentives Obligations;
           provided, however, that payment of the Change Order Profit Component
           --------  -------
           shall not be conditioned upon performance of the Spacecraft or any
           component thereof.

     29.6  If Contractor makes any improvements to the generic HS601HP
           Spacecraft design, then Contractor shall provide reports to Buyer
           concerning such improvements. Buyer may request that any improvement
           to the HS601HP Spacecraft design reported to Buyer be incorporated
           into the Spacecraft, and such improvements shall be considered a
           Change and shall be dealt with in accordance with the Change Order
           process in this Article 29. The foregoing shall not apply to any
           changes to the generic HS601HP Spacecraft design, to correct or
           mitigate the impact of anomalies with respect to such design, made by
           Contractor on its own accord or as necessary in Contractor's
           reasonable engineering judgment, which changes shall not relieve
           Contractor of its obligations to meet the technical specifications
           for each Spacecraft, as set forth in the applicable Exhibit B,
           hereto. Contractor shall notify Buyer on a periodic basis or as
           requested by Buyer from time to time of any anomalies with respect to
           such HS601HP Spacecraft design.

     29.7  The Change Order Price shall be allocated and payable as follows: The
           Change Order Profit Component shall be an independent payment
           obligation not contingent upon performance of the Spacecraft and
           shall be payable at the same

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           time as the monthly installments of the Incentives Obligations for
           the Spacecraft as set forth in Paragraph 6.3.4 and, in any case, the
           then-remaining Change Order Profit Component for the Spacecraft shall
           be paid in full with the last Incentives Obligations Payment. The
           Total Change Order Cost shall be payable as agreed by the Parties.

     29.8  To the extent that (i) any change agreed under this Article 29
           deletes any hardware already produced by Contractor, then the
           provisions of Paragraphs 14.2 and 14.3 shall apply to the disposition
           of such hardware.

     29.9  The Spacecraft shall be designed to support the Launch Vehicle
           interface requirements issued by the Launch Vehicle provider as of
           the Effective Date for Ariane 4 and 5, Proton, and SeaLaunch launch
           vehicles). The Contractor shall provide the Buyer written notice of
           any material changes in such interface requirements occurring after
           the Effective Date of this Contract and a good faith estimate of the
           time required to achieve compatibility as soon as practical after the
           Contractor becomes aware of a change in interface requirements for
           any one or more of the aforementioned launch vehicles. In addition,
           on the date(s) that Buyer exercises an Option for an Option
           Spacecraft and/or orders any Replacement Spacecraft, Contractor shall
           notify Buyer whether or not there have been any such material changes
           that would apply to the launch of the applicable Option Spacecraft or
           Replacement Spacecraft on any one or more of the aforementioned
           launch vehicles. If the Buyer designates, and maintains designation
           of, a Launch Vehicle affected by such material changes to Launch
           Vehicle interface requirements, then [***]

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ARTICLE 30.  EFFECTS OF STORAGE ON BATTERIES

     For Spacecraft batteries to provide the required minimum fifteen (15) years
     of in-orbit services per Exhibit B, it is understood that Launch must occur
     within three (3) years from the date of activation of the first battery
     cell. In the event Buyer directs Contractor to store any deliverable
     Spacecraft and the period of such storage causes a launch later than three
     (3) years from the date of activation of that Spacecraft's first battery
     cell, and Buyer upon its election to either: (i) install replacement
     batteries or (ii) recondition batteries, so directs Contractor, Buyer shall
     pay Contractor its costs plus a [***] profit rate. In either case (i) or
     (ii), the batteries shall meet a fifteen (15) year in-orbit service
     requirement.

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ARTICLE 31.  INTER-PARTY WAIVER OF LIABILITY

     31.1  Buyer and Contractor each agree not to make a claim against the other
           for an event that occurs at the launch integration facility and/or
           launch site premises involving damage to, loss of, or loss of use of
           their property or the property of others in their possession, caused
           by the fault or negligence of the other Party to this Contract, or
           otherwise caused by any defect in any product manufactured or sold by
           the other Party to this Contract. Such claims are waived and each
           Party will bear its own losses. Buyer will include a comparable
           clause in each of its contracts with vendors, subcontractors or
           customers for services or benefits expected as a result of the launch
           or orbiting of the Spacecraft. Such comparable clause shall include a
           requirement to flow the clause down to lower-tier contractors.

     31.2  Notwithstanding any other provisions of this Contract, prior to the
           time any party, associated with launch activities at the launch
           integration facility and/or launch site, shall enter the launch
           integration facility and/or launch site, such party shall be required
           to sign an Inter-Party Waiver of Liability consistent with that
           between Buyer and the Contractor as incorporated herein under
           Paragraph 31.1 of this provision or other similar agreement as may be
           required by the launch agency. Each Party shall have the
           responsibility to assure that all the parties associated with the
           launch of the Spacecraft (for which they have control or privity of
           contract with hereunder) have executed said Inter-Party Waiver of
           Liability.

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ARTICLE 32.  SPACECRAFT STORAGE

     32.1  Buyer may, at its option, order Contractor to store, in accordance
           with the provisions of Exhibit B Spacecraft Specification, the
           deliverable Spacecraft (including separate storage of Batteries, if
           needed) for a period of up to two (2) years from the date of their
           delivery to Buyer. Buyer shall provide written notice of intention to
           store to the Contractor not later than six (6) months prior to the
           scheduled shipment of the relevant Spacecraft. Contractor's price for
           providing storage shall be provided to Buyer in accordance with
           Article 29, "Changes," (and such price shall be deemed a "Change
           Proposal" for purposes of Article 29) within 30 days after receipt of
           Buyer's notice to store the Spacecraft and Contractor shall arrange
           for such storage facilities. If such storage facilities are
           unavailable, Contractor and Buyer shall hold discussions to determine
           a mutually agreed storage arrangement.

     32.2  No later than six (6) months prior to a stored Spacecraft's scheduled
           Launch Date, Buyer shall notify Contractor in writing of such Launch
           Date. Contractor shall take such steps as may be necessary to remove
           such Spacecraft from storage and ship it to the launch site
           designated by Buyer so as to support such Launch Date.

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ARTICLE 33.  DISPUTES

     33.1  Disputes

           33.1.1  In the event any dispute arises between the Contractor and
                   the Buyer relating to this Contract, either Party may give
                   written notice to the other of its objections and reasons
                   therefore. The Contractor and Buyer shall consult in an
                   effort to reach a mutual agreement to resolve such dispute.
                   In the event a mutual agreement cannot be reached within
                   fifteen (15) days after receipt of this notice, the
                   respective positions of the Parties shall be forwarded to
                   Contractor's and Buyer's respective executive officers for
                   discussions and they shall attempt to reach a mutual
                   agreement to resolve such dispute within another fifteen (15)
                   day period.

     33.2  Arbitration of Disputes

           33.2.1  Grounds for Arbitration and Notice Requirement. Any dispute,
                   ----------------------------------------------
                   disagreement, controversy or claim arising out of or relating
                   to this Contract or the interpretation thereof or any
                   arrangements relating thereto, or the validity or
                   enforceability thereof, or contemplated therein or the
                   breach, termination or invalidity thereof which is not
                   settled to the mutual satisfaction of the Parties in
                   accordance with Paragraph 33.1 above, shall be settled
                   exclusively and finally by binding arbitration, after written
                   notice by either Party. Arbitration of such disputes in
                   accordance with this Article 33 shall be the Parties'
                   exclusive remedy.

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          33.2.2  Administration and Rules. Arbitration proceedings in
                  ------------------------
                  connection with the Contract shall be administered by the
                  American Arbitration Association in accordance with its then
                  in effect Commercial Arbitration Rules, together with any
                  relevant supplemental rules including but not limited to its
                  Supplementary Procedures for Large, Complex Disputes, as
                  modified by the terms and conditions of the Contract. With
                  respect to the selection of arbitrators, arbitration
                  proceedings in connection with this Contract shall be
                  conducted before a panel of three (3) arbitrators. Within
                  fifteen (15) days after the commencement of arbitration, each
                  Party shall select from a list of qualified persons one person
                  to serve as an arbitrator on the panel, and within ten (10)
                  days of their selection, the two arbitrators shall select a
                  third arbitrator who is listed as an active member of the
                  American Arbitration Association at the time that arbitration
                  proceedings commence. If the two arbitrators selected by the
                  respective Parties are unable or fail to agree upon the third
                  arbitrator in the allotted time, then the third arbitrator
                  shall be selected by the American Arbitration Association.

          33.2.3  Place of Arbitration. The place of arbitration shall be in Los
                  --------------------
                  Angeles, California, U.S.A.

          33.2.4  Discovery. The arbitrators shall have the discretion to order
                  ---------
                  a pre-hearing exchange of information by the Parties,
                  including without limitation, production of requested
                  documents, exchange of summaries of testimony of proposed
                  witnesses, and examination by deposition of the Parties.

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          33.2.5  Award and Judgment. The arbitrators shall have no authority to
                  ------------------
                  award punitive damages, and may not, in any event, make any
                  ruling, finding or award that does not conform to the terms
                  and conditions of this Contract. Subject to the foregoing, the
                  Parties agree that the judgment of the arbitrators shall be
                  final and binding upon the Parties and that the judgment upon
                  the award rendered by the arbitrators may be entered in any
                  court having jurisdiction thereof.

          33.2.6  Confidentiality. No Party or arbitrator may disclose the
                  ---------------
                  existence, content, or results of any arbitration proceedings
                  in connections with this Contract without the prior written
                  consent of all Parties to the arbitration proceeding.

          33.2.7  Fee and Expenses. All fees and expenses of any arbitration
                  ----------------
                  proceedings in connection with this Contract shall be borne by
                  the losing Party. However, each Party shall bear the expense
                  of its own counsel, experts, witnesses, and preparation and
                  presentation of evidence.

          33.2.8  Performance. Contractor and Buyer shall continue with
                  -----------
                  performance under this Contract during any disagreement,
                  negotiation, or arbitration.

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ARTICLE 34.  ASSIGNMENT

     34.1  Neither Party shall assign, or transfer this Contract or any of its
           rights, duties or obligations thereunder to any person or entity, in
           whole or part without the prior written consent of the other Party
           except that either Party may assign or transfer any of its rights,
           duties or obligations under this Contract, either in whole or in
           part, to its parent company, subsidiary or affiliate. In addition,
           notwithstanding anything in this Article 34 to the contrary, the
           consent of Contractor shall not be required for, and Paragraph 34.2
           shall not apply to any assignment by Buyer of its rights, duties
           and/or obligations hereunder as security for any indebtedness of
           Buyer or its subsidiaries or affiliates.

           Neither Party shall unreasonably withhold consent to any assignment
           or transfer providing that the requesting Party can demonstrate to
           the other Party's satisfaction prior to such assignment that:

           (1)  its successor or assignee possesses the financial resources to
                fulfill the obligations of this Contract; and

           (2)  any such assignment or transfer shall not jeopardize any data
                rights or competitive position, or violate laws related to
                export or technology transfer, or otherwise increase the other
                Party's risks or obligations.

           If the requesting Party cannot so demonstrate, both Parties agree to
           negotiate in good faith suitable modifications and new provisions to
           this Contract which would mitigate the above risks and/or bring this
           Contract into conformance with applicable laws. As used in this
           Agreement, "Affiliate" of, or a person "affiliated" with, a specified
           person, shall mean a person that directly, or

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           indirectly through one or more intermediaries, controls, or is
           controlled by, or is under common control with, the person specified.

     34.2  The Parties agree that in the event that the ownership or control of
           Buyer or Contractor is changed, the Parties reserve the right to
           negotiate in good faith suitable modifications and new provisions to
           this Contract which would mitigate any additional risks, financial or
           otherwise, which may be brought about by such change in ownership or
           control.

     34.3  This Contract shall be binding upon the Parties hereto and their
           successors and permitted assigns.

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ARTICLE 35.  LIMITATION OF LIABILITY

     35.1  The Parties to this Contract expressly recognize that commercial
           space ventures involve substantial risks and recognize the commercial
           need to define, apportion and limit contractually such risks
           associated with this commercial space venture. The payments and other
           remedies expressly set forth in this Contract fully reflect the
           Parties' negotiations, intentions and bargained-for allocation of
           such risks associated with commercial space ventures.

     35.2  In no event shall either Party be liable for any direct, indirect,
           incidental, special, contingent or consequential damages (including,
           but not limited to, lost revenues or profits), except as expressly
           provided for in this Contract. This Article shall survive the
           expiration or termination of this Contract for whatever cause.

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ARTICLE 36.  CORRECTIVE MEASURES; OPERATIONAL DEFICIENCIES

     36.1  Without limiting the obligations of Contractor under other provisions
           of this Contract, if the data available from another satellite
           manufactured or under manufacture or design by Contractor (a
           "Contractor Satellite") indicates that there is or may be a material
           deficiency in the design or manufacture of such Contractor Satellite
           which, in the reasonable opinion of Contractor, will or may adversely
           affect the Spacecraft produced under this Contract, or the operations
           of such Spacecraft, then Contractor shall notify Buyer of any such
           material deficiency. Contractor shall promptly take appropriate
           corrective measures, at Contractor's expense, with respect to the
           Spacecraft so as to satisfactorily eliminate from such Spacecraft
           prior to its shipment all the material deficiencies discovered in
           Contractor Satellite(s), subject to the provisions of Paragraph 36.5.

     36.2  In the event that the corrective measures performed pursuant to this
           Article 36 cause a delay, then: (i) Contractor shall [***]; (ii) the
           time periods provided in Paragraph 5.5 and 37.1 [***]; and (iii)
           Buyer and Contractor shall discuss the impact (if any) to the
           construction and delivery of the Spacecraft.

     36.3  If Contractor, in performing corrective measures in accordance with
           this Article 36, replaces any equipment or part determined to be
           deficient, such deficient equipment or part shall remain or become
           the property of Contractor.

     36.4  Contractor shall disclose to Buyer sufficient technical and
           operational information regarding a material deficiency [***] to
           enable Buyer to make an informed decision regarding the taking of
           corrective measures.

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           Notwithstanding the foregoing, Contractor shall not be obligated by
           this Article 36 to disclose the identity (or any identifying
           information) of any such satellite, or the owners or customers of
           such Contractor Satellite, on which a material deficiency is
           discovered.

     36.5  Contractor shall be obligated to notify Buyer promptly if Contractor
           proposes to resolve technical deficiencies (arising during the design
           and/or manufacturing process of the Spacecraft) through the
           imposition of operational constraints. The Parties agree promptly to
           enter into good faith negotiations to resolve any such deficiency
           and, if appropriate, agree to adjust equitably the Contract Price
           and/or schedule, subject to Paragraph 36.2. In the event that the
           Parties cannot reach an agreement within five (5) business days as to
           the resolution of such deficiency or its adjustment (if any) to
           Contract Price and/or schedule, then the unresolved issues shall be
           submitted to the Contractor's and Buyer's senior executives for
           resolution. If such senior executives cannot reach agreement within
           ten (10) business days thereafter, then the remaining unresolved
           issues shall be submitted for resolution by arbitration pursuant to
           Paragraph 33.2.

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ARTICLE 37.  LIQUIDATED DAMAGES FOR LATE PERFORMANCE

     37.1  Subject to Excusable Delays which excuse or delay Contractor's
           performance under Article 12, in the event that (i) (A) the shipment
           of a Spacecraft is delayed due to the fault of Contractor (and/or
           Contractor's subcontractors or suppliers) and (B) such Spacecraft is
           not shipped on or before the applicable Shipment Date identified
           under Article 4 (as such date may be adjusted by mutual agreement of
           the Parties), or (ii) [***] Contractor shall pay liquidated damages
           for such Spacecraft as follows:

           37.1.1  For [***] of delay in (a) the shipment of the Spacecraft (in
                   the event of clause (i) above) or (b) [***] (in the event of
                   clause (ii) above), Contractor shall pay to Buyer liquidated
                   damages equal to [***]

                   and

           37.1.2  For each of the next [***] of delay in (a) the shipment of
                   the Spacecraft (in the event of clause (i) above), or (b)
                   [***] (in the event of clause (ii) above), Contractor shall
                   pay to Buyer additional liquidated damages equal to [***].

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     37.2  In the event of any delay of a partial month, the amounts specified
           in Paragraphs 37.1.1 and 37.1.2, as applicable, shall be pro rated on
           a day-for-day manner based upon the number of days in such month.

     37.3  Contractor shall pay to Buyer the liquidated damages owed pursuant to
           Paragraphs 37.1.1, 37.1.2 and 37.6 within thirty (30) days of invoice
           from Buyer.

     37.4  The Parties understand and agree that the liquidated damages provided
           under this Article 37 shall be in lieu of all other remedies of any
           kind except for Buyer's rights and remedies under Articles 11 and 14.
           The amounts presented in Paragraph 37.1 and 37.6 shall constitute
           liquidated damages for such late shipment or delivery and shall not
           constitute a penalty. The Parties acknowledge and agree that such
           liquidated damages are believed to represent a genuine estimate of
           the losses that would be suffered by reason of any such delay (which
           losses would be difficult or impossible to calculate with certainty).

     37.5  The Parties agree that the provisions of this Article 37 shall apply
           separately to each Spacecraft, and that the maximum liquidated
           damages for a Spacecraft under Paragraphs 37.1.1 and 37.1.2 is [***]
           per Spacecraft.

     37.6  In addition to the amounts (if any) payable under Paragraph(s) 37.1.1
           and 37.1.2 above, if [***], the Contractor shall pay to Buyer
           liquidated damages of [***]. In the event

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           of any delay of a partial month, the per month amount specified in
           this Paragraph 37.6 shall be pro rated on a day-for-day manner based
           upon the number of days in such month.

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     ARTICLE 38.  OPTION SPACECRAFT

     38.1  Buyer shall have the option (the "Option") to purchase from
           Contractor one (1) additional HS601HP spacecraft (the "Option
           Spacecraft") in accordance with this Article 38. The baseline
           configuration for the Option Spacecraft shall be essentially the same
           as the configuration of the PAS 10 spacecraft (delivered by
           Contractor to Buyer under contract 98-PAS-002) as summarized in Table
           38.1.1 below. Changes to such baseline configuration shall be handled
           as a Change Order Request under Paragraph 29.3. Upon final agreement
           of the configuration of the Option Spacecraft, Buyer and Contractor
           shall prepare and sign Exhibit B2 based on such agreed configuration.
           Buyer shall exercise this Option by (i) written notice to Contractor
           and (ii) written agreement between the Parties on [***]. The
           Contractor shall reasonably and promptly respond to Buyer's requests
           for information and assistance in preparing and submitting to Buyer
           [***]. Upon Buyer's exercise of the Option for the Option Spacecraft,
           but not later than 2 business days after such exercise of the Option,
           the Contractor shall issue a proper invoice to the Buyer for the
           initial payment for the Option Spacecraft. Provided that the
           Contractor receives the initial payment from the Buyer no later than
           10 business days after the later of (i) exercise of the Option or
           (ii) the business day that Buyer receives a proper invoice therefor
           from the Contractor, the Contractor shall construct and deliver the
           Option Spacecraft, perform all Related Services and deliver all
           Documentation therefor, in accordance with the terms and provisions
           of this Contract (except as expressly provided otherwise in this
           Article 38) and all references in the Contract to "Spacecraft" shall
           thereafter be deemed to include the Option Spacecraft. If the initial
           payment is received by the Contractor later than 10 business days
           after the later of (i) the exercise of the

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          Option or (ii) the business day that the Buyer receives a proper
          invoice therefor from the Contractor, the Option exercise date shall
          be revised to the date of Contractor's receipt of the initial payment
          and the Shipment Date shall be revised accordingly.

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     38.1.1  Table 38.1.1

--------------------------------------------------------------------------------
                        Option Spacecraft Configuration

     [***]
--------------------------------------------------------------------------------

     38.2  Contractor and Buyer shall agree upon the Shipment Date for the
           Option Spacecraft; provided that the Shipment Date shall not be later
           than the date that is [***] after the exercise of the Option for such
           Option Spacecraft. However, in no event shall the "Shipment Date" of
           the Option Spacecraft be less than [***] after the "Shipment Date" of
           the GVIII(i)R Spacecraft.

     38.3  The Option shall expire if not exercised on or before [***].

     38.4  The Contract Price for the Option Spacecraft shall be [***]. The
           Contract Price shall include all Related Services and Documentation,
           and shall be based upon use of an Ariane 4 or 5 Launch Vehicle. For
           the Option Spacecraft purchased by Buyer, the Contract Price will be
           paid in accordance with the payment plan in Paragraph 6.2, Table 6.2
           (subject to pro rata adjustment in the event of a change in the
           Contract Price or Shipment Date). Prior to exercise by Buyer of the
           Option for the Option Spacecraft, Buyer shall not owe any amount to
           Contractor with respect to the Option or such Option Spacecraft.

     38.5  Option for Replacement Spacecraft:

           Notwithstanding Paragraph 38.3, in the event that the GVIII(i)R
           Spacecraft and/or the Option Spacecraft (if ordered) delivered under
           this Agreement, on or before its Commencement Date (i) suffers a
           launch failure or (ii) one or more

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          Payloads are not Successfully Operating Payloads or (iii) the
          Spacecraft is significantly impaired (whether by shortened lifetime,
          operational constraints or otherwise), then Buyer shall have the right
          to order a replacement spacecraft of essentially the same
          configuration as the failed Spacecraft ("Replacement Spacecraft");
          provided that Buyer orders such Replacement Spacecraft no later than
          [***] after the date of launch failure or, in the case of
          Payloads that are not Successfully Operating Payloads or a
          significantly impaired Spacecraft, the Commencement Date, as
          applicable, of the failed Spacecraft. The Parties shall agree, in
          writing, on the Commencement Date if the Spacecraft is, or is expected
          to become, significantly impaired. The Contract Price for all
          Replacement Spacecraft ordered under this Paragraph 38.5 shall be
          [***]. The Contract Price for the Replacement Spacecraft shall be paid
          in accordance with the applicable payment plan attached hereto as
          Exhibit F [***]. Contractor shall begin work on the Replacement
          Spacecraft upon receipt of Buyer's order provided the associated
          initial payment is received by the Contractor not later than 10
          business days from the later of (i) Contractor's receipt of order or
          (ii) the business day that the Buyer receives a proper invoice
          therefor from the Contractor. The Shipment Date shall be the date that
          is [***] after the later of (i) the date that Buyer orders such
          Replacement Spacecraft unless the initial payment is received by the
          Contractor later than 10 business days after the Buyer's order after
          the Contractor provided the Buyer a proper invoice not later than 2
          business days after the Buyer's order, in which case the Shipment Date
          shall be [***] after receipt of the initial payment. However, in
          no event shall the "Shipment Date" of the Replacement Spacecraft be
          less than [***] after the "Shipment Date" of any other Spacecraft
          ordered under this Contract. Except as provided otherwise in this
          Paragraph 38.5, all other provisions in this Article 38 (other than
          Paragraph 38.3) and elsewhere in this

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           Agreement applicable to "Spacecraft" shall apply to Replacement
           Spacecraft ordered pursuant to this Paragraph 38.5.

     38.6  Economic Price Adjustment

           The following price adjustment shall apply to any Spacecraft ordered
           under this Article 38 after [***];

           38.6.1  The price for the Replacement Spacecraft shall be adjusted,
                   when ordered, to reflect changes, if any, in accordance with
                   the following formula:

                             [***]

           38.6.2  In the event the above [***] is not updated, is discontinued,
                   or if the method of calculation is changed, or if its basis
                   has changed, or factors comprising the index have changed, or
                   if circumstances reveal that the index is no longer
                   equitable, a comparable index, as mutually agreed between the
                   Parties, shall be utilized.

     38.7  Option for Spacecraft Ground Compatibility Test.

           In the event that the Buyer elects to have the Contractor support the
           conduct of compatibility tests between the baseband equipment,
           Contractor supplied equipment, Buyer supplied Software interface and
           the Spacecraft as described in Section 4.4 of the Statement of Work,
           Exhibit A2, [***] in accordance with a written mutual agreement by
           the Parties. Such agreement shall occur prior to the Contractor's
           obligation to perform such support of the tests.

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ARTICLE 39.  NO THIRD PARTY RIGHTS

     39.1  Contractor represents and warrants that neither Contractor nor any
           third party has any continuing rights or obligations with respect to
           any hardware deliverable under this Contract (except as to Contractor
           as expressly provided herein) or with respect to any parts or
           materials incorporated into any such hardware deliverable. Contractor
           agrees to indemnify Buyer for, and hold Buyer harmless from, any and
           all liability, loss, claim or damage to which Buyer or its affiliates
           (or any director, officer, employee or agent of Buyer or one of its
           affiliates) may become subject, arising from any claim by any such
           third party for any breach of the representations and warranties made
           by Contractor in this Article 39.

     39.2  This Article shall survive delivery of the Spacecraft and the
           hardware, the performance of the Related Services, and any
           termination of this Contract.

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ARTICLE 40.    INDEX OF DEFINED TERMS

     Each of the following capitalized terms has the meaning ascribed to such
term in the applicable Paragraph.

                  Defined Terms                        Paragraph
                  -------------                        ---------
     Affiliate                                             34
     Assessments                                          24.2
     Authorized Representatives                            27
     Buyer                                            Introduction
     Buyer-Furnished Items                                 8.1
     Buyer Indemnitee                                     19.2
     Calculated Operational Lifetime                     6.3.1.5
     Certain Documentation                              Exhibit H
     Change Order Cost                                    29.5
     Change Order Offer                                   29.3
     Change Order Profit Component                        29.5
     Change Order Request                                 29.3
     Change Proposal                                      29.1
     Commencement Date                                   6.3.1.7
     Contract                                         Introduction
     Contract Price                                        5.1
     Contractor                                       Introduction
     Contractor Satellite                                 36.1
     Costs                                                14.4
     Degraded Payload                                    6.3.2.3
     Delinquent Payments                                   6.4

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     Deliverables                                           3
     Documentation                                         4.1
     Effective Date                                        42
     Extension period                                    6.3.4.3
     G&A Costs                                            29.5
     Incentive Interest Rate                             6.3.2.2
     Intentional Ignition                                 16.2
     Launch Date                                          7.1.1
     Launch Vehicle                                       4.2.1
     Launch Window                                        7.1.2
     OCC                                                   3.3
     On-Station Operational Lifetime                   6.3.2.1(b)
     Pre-Launch Incentives Payment                       6.3.4.1
     Program Invention                                    20.1
     Properly Operated                                     3.4
     Proprietary Information                               22
     Recoverable Amount                                  6.3.4.4
     Related Services                                      4.1
     Related Services Price                              6.3.4.3
     Risk of Loss                                        15.1.4
     Shipment Availability Date                          6.3.4.3
     Shipment Date                                         4.1
     Spacecraft                                            3.1
     Spacecraft Retirement Payment                        6.3.3
     Specified Operational Lifetime                      6.3.1.1
     Successfully Injected Spacecraft                    6.3.1.5

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     Successfully Operating Payload                         6.3.1.2
     Successfully Operating Transponder                     6.3.1.3
     Third Anniversary                                      6.3.4.3
     Useful Commercial Life                                 6.3.1.5
     Warranty Time Period                                    16.2

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ARTICLE 41.  EFFECTIVE DATE OF CONTRACT

The "Effective Date" of this Contract is 15 December 2000; [***].

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IN WITNESS WHEREOF, the Parties hereto have executed this Contract No. 00-PAS-
001 to become effective upon the date specified in Article 41, herein entitled,
"Effective Date of Contract."

BOEING SATELLITE SYSTEMS, INC.

SIGNATURE:     _______________________________________________

NAME:                            Lisa Dreim
               -----------------------------------------------

TITLE:          Vice President, Contracts and Cost Estimating
               -----------------------------------------------

DATE:                         December 15, 2000
               -----------------------------------------------

PANAMSAT CORPORATION

SIGNATURE:     _______________________________________________

NAME:          _______________________________________________

TITLE:         _______________________________________________

DATE:          _______________________________________________

SIGNATURE:     _______________________________________________

NAME:          _______________________________________________

TITLE:         _______________________________________________

DATE:          _______________________________________________

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                                                         Exhibit 10.66

                                LEASE

                               Between

                       20 WESTPORT HOLDINGS L.L.C.

                              Landlord

                                 And

                         PANAMSAT CORPORATION

                               Tenant

                       Dated________________, 2000

                           20 Westport Road
                              Wilton, CT
<PAGE>

                           TABLE OF CONTENTS

Article 1 Rent                                                                 1
Article 2 Term and Completion and Occupancy of the Premises                    2
Article 3 Adjustment of Rent                                                   4
Article 4 Service and Utilities                                                9
Article 5 Conference Center                                                   12
Article 6 Cafeteria                                                           12
Article 7 Fitness Center                                                      13
Article 8 Parking                                                             14
Article 9 Quiet Enjoyment                                                     15
Article 10 Subordination                                                      15
Article 11 Use                                                                16
Article 12 Alterations and Installations                                      17
Article 13 Repairs                                                            20
Article 14 Requirements of Law                                                20
Article 15 Insurance, Loss, Indemnification, Liability                        21
Article 16 Damage by Fire or Other Cause                                      23
Article 17 Assignment, Mortgaging, Subletting, Etc                            24
Article 18 Eminent Domain                                                     27
Article 19 Access to Demised Premises, Changes                                28
Article 20 Default                                                            29
Article 21 Re-Entry by Landlord, Injunction                                   30
Article 22 Damages                                                            31
Article 23 Rights to Perform the Other Parties Obligations                    32
Article 24 Definitions                                                        32
Article 25 Invalidity of Any Provision                                        33
Article 26 Brokerage                                                          33
Article 27 Certificate of Tenant and Landlord                                 34
Article 28 Legal Proceedings; Waiver of Jury Trial; Prejudgment Remedy        34
Article 29 Surrender of Premises                                              34
Article 30 Rules and Regulations                                              35
Article 31 Consents and Approvals                                             35
Article 32 Notices                                                            35
Article 33 No Waiver                                                          36
Article 34 Captions                                                           36
Article 35 Inability to Perform                                               36
Article 36 No Representation by Landlord                                      37
Article 37 Arbitration                                                        37
Article 38 Miscellaneous                                                      37
Article 39 Intentionally Omitted                                              38
Article 40 Extensions of Term                                                 38
Article 41 New Provider Installation                                          39
Article 42 Right of First Refusal                                             41
Article 43 Signage                                                            41
Article 44 Representations                                                    41
Article 45 Satellite Dish Provisions                                          41
Article 46 Expansion                                                          43
Article 47 Risers and Conduits                                                44
Article 48 Emergency Generator                                                44

Schedules

Schedule A-1  Description of Land
Schedule A-2  Plot Plan
Schedule B     Floor Plan Showing the Demised Premises
Schedule C     Building Plans and Specifications
Schedule C-1  Description of the Core and Shell Work
Schedule D     Workletter
Schedule E     Commencement Date Agreement
Schedule F     Cleaning Specifications
Schedule G     Rules and Regulations

                                 i
<PAGE>

                                LEASE

     LEASE made on ___________ 2000, between 20 WESTPORT HOLDINGS L.L.C.,
having an office c/o Louis Dreyfus Property Group, 23 Richmond Hill Avenue,
Stamford, CT 06901 ("Landlord") and PANAMSAT CORPORATION, having an office at
One Pickwick Plaza, Greenwich, CT 06830 ("Tenant").

                         W I T N E S S E T H:

     The parties hereto, for themselves, their heirs, distributees, executors,
administrators, legal representatives, trustees, successors and assigns, hereby
covenant as follows:

          A. Landlord hereby leases to Tenant, and Tenant hereby leases from
Landlord, those certain premises, as said premises may be adjusted from time to
time (the "Demised Premises") consisting of approximately 75,248 square feet of
Rentable Area on the 3rd floor of the north and south wings of an office
building to be constructed in Wilton, Connecticut, more commonly known as "20
Westport Road" (the "Building"), which Building will be located on a portion of
the land described on Schedule A-1 attached hereto (the "Land"), and being
Parcel 1 as indicated on the plot plan attached hereto as Schedule A-2, together
with the right, in common with others, to use all areas of the Project (as
hereinafter defined) that are made available from time to time for common use by
tenants of the Building. The Building shall consist of two (2) wings connected
by a bridge, shall contain a cafeteria, fitness center and conference center and
is shown in more detail on the plans and specifications that are referred to on
Schedule C attached hereto. The Land, the Building, a parking structure to be
located on the Land (the "Parking Structure"), any surface or below grade
parking areas and all other improvements now or hereafter constructed on the
Land, except improvements which tenants may remove therefrom pursuant to the
terms of their respective leases, and certain easement areas and Complex Common
Areas as set forth in that certain Restated Declaration of Reciprocal Easements,
Covenants and Restrictions dated April 28, 2000 and recorded in Volume 1225 at
Page 283 of the Wilton Land Records, as amended by First Amendment to Restated
Declaration of Easements, Covenants and Restrictions dated August __, 2000 and
recorded in Volume ___, at Page ___ of the Wilton Land Records (the "REA"), are
collectively referred to herein as the "Project." The Land, together with Parcel
2, as shown on Schedule A-2, are together referred to herein as the "Complex".
Parcel 2 shall not be part of the Project. The Demised Premises are depicted on
Schedule B attached hereto. The exact Rentable Area of the Demised Premises
shall be measured in accordance with Article 2 hereof.

          B. If the Demised Premises consist of more than one floor of a
Building wing and if the Commencement Date occurs as a result of Tenant's
occupancy of less than the entire Demised Premises, then Tenant shall only be
obligated to pay that portion of the Annual Net Rent and additional rent which
is attributable to the amount of space occupied by Tenant. All of the other
terms of this Lease shall commence, to the fullest extent possible, on the
Commencement Date. Tenant's Annual Net Rent and additional rent obligations
shall appropriately increase as Tenant occupies additional space.

                              ARTICLE 1

                                RENT

     1.1 Tenant shall pay to Landlord annual net rent (the "Annual Net Rent")
as follows:

          (i) [***] multiplied by the total number of square feet of Rentable
Area in the Demised Premises per annum for the period commencing on the Rent
Commencement Date and ending on the last day of the sixtieth (60th) full month
after the Rent Commencement Date; and

          (ii) [***] multiplied by the total number of square feet of Rentable
Area in the Demised Premises per annum for the sixty-first (61st) through one
hundred twentieth (120th) full months after the Rent Commencement Date.

     Tenant will pay the Annual Net Rent in lawful money of the United States
of America, in equal monthly installments in advance on the first day of each
calendar month during the Term, at the offices of Landlord as set forth in the
beginning of this Lease or such other place in the United States of America as
Landlord designates. If the obligation to pay Annual Net Rent commences on any
day other than on the first day of a calendar month, then the Annual Net Rent
for the period from the date on which the obligation commences to the first day
of the calendar month shall be prorated on a per diem basis.

     The first month's installment of Annual Net Rent shall be paid by Tenant
upon the execution of this Lease and shall be credited by Landlord to the
payment of the Annual Net Rent that first becomes payable under this Lease.

     1.2 Tenant shall pay the Annual Net Rent and Additional Rent (as defined
in the immediately

                                 1
<PAGE>

succeeding sentence), by good and sufficient check (subject to collection) drawn
on a local bank which is a member of the New York Clearing House Association or
of a successor to that Association. All sums of any kind other than Annual Net
Rent that are payable by Tenant under this Lease are "Additional Rent," and
shall be payable within fifteen (15) days following demand by Landlord, unless
other payment dates are provided in this Lease; such sums shall be Additional
Rent solely for the purpose of providing to Landlord the same remedies as are
available to it in the event of default in the payment of Annual Net Rent.

     1.3 If Tenant fails to pay when due any installment of Annual Net Rent or
any payment of Additional Rent, then Tenant shall pay interest thereon at the
Interest Rate (as defined in Article 24), from the date on which that
installment or payment becomes due to the date on which it is paid.

     1.4 If, due to a Law which (a) limits Landlord's right to collect or
receive all, or any part of, either or both of the Annual Net Rent and the
Additional Rent (together, the "Total Rents") or (b) requires that Landlord
refund any of the Total Rents that Landlord already has received (either of
which is referred to as a "Rent Restriction"), Landlord does not receive or
retain all amounts on account of Total Rents that, but for the Rent Restriction,
Landlord would have received or retained, then Tenant shall enter into such
agreements and take such other steps as Landlord requests to permit Landlord to
collect the maximum amount of the Total Rents that Landlord may be permitted to
collect from time to time during the continuance of the Rent Restriction (but
not in excess of the amounts provided for under this Lease). Upon the
termination of the Rent Restriction, (a) the Total Rents shall be payable in
full, and (b) Tenant shall pay to Landlord, to the maximum extent legally
permissible, an amount that is equal to the excess of (i) the Total Rents which
would have been paid but for the Rent Restriction, over (ii) the Total Rents
that were paid during the period that the Rent Restriction was in effect.

     1.5 Annual Net Rent, Additional Rent and all other sums payable hereunder
by Tenant shall be paid without notice or demand, and without setoff,
counterclaim, abatement, suspension, deduction or defense of any kind
whatsoever, except as may otherwise be expressly provided in this Lease. Annual
Net Rent shall be entirely "net" to Landlord, it being intended that Tenant
shall be required to pay, as Additional Rent, all costs and expenses of
operating the Demised Premises. Except as may otherwise be expressly provided in
this Lease, this Lease shall not terminate, nor shall Tenant be entitled to the
abatement or any rent hereunder or any reduction thereof, nor shall, except as
otherwise set forth herein, the obligations of Tenant under this Lease be
otherwise affected for any reason whatever, it being the intention of the
parties hereto that the obligations of Tenant hereunder shall be separate and
independent covenants and agreements, that the rent and all other sums payable
by Tenant hereunder shall continue to be payable in all events, and the
obligations of Tenant hereunder shall continue unaffected, unless the
requirement to pay or perform the same shall have been terminated, abated or
reduced pursuant to an express provision of this Lease.

                              ARTICLE 2

                              TERM AND
                 COMPLETION AND OCCUPANCY OF THE PREMISES

     2.1 Landlord agrees, at its cost, to construct the Building, roadways,
Parking Structure and other site amenities and improvements (collectively,
"Landlord's Work") substantially as shown on the plans and specifications
attached hereto as Schedule C (collectively, the "Building Plans and
Specifications"), subject to revisions which arise as a result of field
conditions or legal requirements, or the requirements of Landlord's insurers or
any governmental authority or department affecting construction having
jurisdiction. Landlord shall complete the construction thereof with reasonable
diligence, subject to events and delays beyond the control of Landlord,
including, without limitation, Force Majeure Delays. That portion of Landlord's
Work that is described on Schedule C-1 attached hereto shall be referred to as
the "Core and Shell Work".

     2.2 Tenant shall, at Tenant's cost and expense (including application of
the Tenant Improvement Allowance specified in the workletter attached hereto as
Schedule D (the "Workletter")), perform or cause to be performed the Tenant
Improvements (as defined in the Workletter) in order to prepare the Demised
Premises for its initial occupancy.

     2.3 The term of this Lease ("Term") shall commence on the date (herein
called the "Commencement Date") that so much of Landlord's Work shall be
substantially completed as is necessary so that Tenant is able to commence the
Tenant Improvements in the Demised Premises in accordance with normal
construction practices applicable to circumstances where Landlord and Tenant are
performing work concurrently (provided that the Commencement Date shall not be
earlier than January 2, 2001 unless Tenant commences the Tenant Improvements
prior thereto), including, without limitation:

          (i) the shell of the Building will be constructed and weathertight;

          (ii) there will be appropriate access to the Demised Premises; and

                                 2
<PAGE>

          (iii) a hoist or elevator shall be available for Tenant's use in
connection with the Tenant Improvements, and sufficient electric power shall be
available for the performance of the Tenant Improvements.

Landlord shall give Tenant thirty (30) days prior notice of the date it
reasonably believes the Commencement Date will occur. Landlord anticipates that
the Commencement Date will be on or about January 2, 2001. The Term shall end on
the last day (the "Expiration Date") of the month in which occurs the day
preceding the tenth (10th) anniversary of the Rent Commencement Date (as that
term is hereinafter defined), unless sooner terminated or extended pursuant
hereto. Immediately after the Rent Commencement Date, Landlord and Tenant shall
execute and acknowledge an agreement in the form attached hereto as Schedule E
setting forth the Commencement Date and the Rent Commencement Date of this
Lease, provided that any failure of the parties to execute such written
agreement shall not affect the validity of the Commencement Date or the Rent
Commencement Date. If Tenant occupies a portion of the Demised Premises prior to
the Rent Commencement Date, the rights and obligations of the parties hereunder
(including, without limitation, Tenant's obligations to pay rent for such
portion of the Demised Premises) shall be deemed to apply to the occupied
portion of the Demised Premises until the Rent Commencement Date. Upon request
from Tenant within sixty (60) days after the Commencement Date, Landlord will
cause its representative to accompany Tenant on a walk through of the Demised
Premises to compile a list of punch list items in those portions of Landlord's
Work that affect the Demised Premises and that have been completed to date, and
Landlord will complete such punch list items within ninety (90) days thereafter,
to the extent possible.

     2.4 Tenant's obligation to pay any Annual Net Rent and Additional Rent
shall commence on the date (herein called the "Rent Commencement Date") which
shall be the earlier to occur of (i) the date on which Tenant first conducts its
business in a material portion of the Demised Premises, or (ii) the later of (x)
six (6) months after the Commencement Date or (y) the date on which the
conditions (a) through (d) below have been satisfied or the date the same would
have been satisfied but for Tenant Delays (as defined in Section 2.6 hereof):

          (a) Landlord has completed and installed (i) the main lobby of the
wing of the Building in which the Demised Premises are located and other common
areas in such wing of the Building and Tenant's elevator lobby or lobbies
(collectively, "Lobbies"), (ii) substantially all of the entrances to such wing
of the Building, including service entrances, and (iii) those portions of the
Core and Shell Work (as defined in Schedule C) that involve electricity, heat
and air conditioning, water, plumbing, and the loading dock, to an extent
sufficient to obtain a Certificate of Occupancy that permits occupancy of the
Demised Premises.

          (b) Tenant and its visitors have adequate and safe access to the
Lobbies and to the Demised Premises through the Lobbies to the banks of
elevators serving the Demised Premises and enough elevators to provide service
sufficient to obtain a Certificate of Occupancy for the Demised Premises are in
operation and properly service the Demised Premises, and the Building's life
safety system is operating in a normal manner, to the extent such system affects
the Demised Premises or Tenant's ability to occupy the Demised Premises;

          (c) Landlord has provided Tenant with the number of parking spaces
required to be provided to Tenant pursuant to Article 8, provided that this
Section 2.4(c) shall be deemed satisfied, even if the Parking Structure is not
completed or operating, as long as Tenant's parking spaces (which shall include
spaces for Tenant's visitors) are provided, temporarily, in the below grade
parking area, or elsewhere on the Land. If any of such spaces are located
temporarily on the Land, Landlord shall use commercially reasonable efforts to
locate such spaces as close as possible to the Building;

          (d) Landlord has substantially completed the Core and Shell Work
required to be performed by Landlord for the Demised Premises other than:

               (i) Minor details of construction and decoration and minor
mechanical adjustments which do not materially interfere with Tenant's use (the
"Punch List"), and

               (ii) Any Core and Shell Work which is not completed due to any
Tenant Delays, and

               (iii) All of Landlord's Work in portions of the Project other
than the Demised Premises, except to the extent such portions of Landlord's Work
are required to satisfy the conditions set forth in subsections (a) through (c)
of this Section 2.4, and provided that the completion of such uncompleted
portions of Landlord's Work does not unreasonably interfere with the normal and
customary conduct of Tenant's business in the Demised Premises or the
performance of the Tenant Improvements and provided further that any work
remaining with respect to Landlord's Work or other tenant improvement work on
floors immediately adjacent to the Demised Premises shall either: (i) not
unreasonably interfere with the normal and customary conduct of Tenant's
business or (ii) shall be completed outside of normal business hours so as not
to interfere with the normal and customary conduct of Tenant's business;

                                 3
<PAGE>

     For purposes of this Lease, "Certificate of Occupancy" means a temporary
or final certificate pursuant to which the Town of Wilton authorizes the
occupancy of the Building or the Demised Premises (as the case may be). Landlord
shall complete all Punch List matters, and all incomplete portions of the
Cafeteria and Fitness Center, in a commercially reasonable manner and timeframe.

     2.5 The taking of occupancy of the whole or any part of the Demised
Premises for the commencement of the Tenant Improvements by Tenant shall be
conclusive evidence, as against Tenant, that Tenant accepts possession of the
same and that the Demised Premises so occupied were in good and satisfactory
condition (subject to latent defects and to completion of all unfinished work)
at the time such occupancy was so taken and that the Demised Premises or such
portion thereof were substantially as shown on Schedule B. The Commencement Date
shall occur no later than the taking of such occupancy.

     2.6 If the Rent Commencement Date is delayed as the result of (i) work to
be done by or on behalf of Tenant which under good construction scheduling
practices should be completed before some portion of Landlord's Work is done,
and such work by or on behalf of Tenant is not completed on schedule and it
actually delays the completion of the Landlord's Work, or (ii) any other act or
omission of Tenant, its agents, employees or contractors that actually delays
the completion of Landlord's Work, then the Rent Commencement Date shall occur
on the date that the Rent Commencement Date would have occurred but for the
acts, omissions or circumstances described in (i) or (ii) above (each such act,
omission or circumstance, a "Tenant Delay"). In determining when the Rent
Commencement Date would have occurred, it shall be assumed that the Rent
Commencement Date is delayed one day for each day of delay in completing
Landlord's Work that is caused by the Tenant Delay. Landlord shall endeavor to
provide Tenant with written notice of any Tenant Delay within a reasonable time
after the Tenant Delay occurs. The above provisions shall be in addition to, and
not in limitation of, any other rights that Landlord may have under this Lease
or at law.

     2.7 Delays described in this Article 2 may be cumulative. In the event of
any delay which would not have occurred but for a prior delay, the subsequent
delay shall be added to the prior delay on a day to day basis and the
appropriate consequences as determined in accordance with Section 2.6 shall
apply. If Landlord and Tenant disagree as to the Rent Commencement Date, then
the matter shall be determined by arbitration pursuant to Article 37.

     2.8 Landlord shall, promptly upon receiving notice from Tenant as provided
in Article 32 hereof, of any defects (including latent defects) or deficiencies
in the Core and Shell Work with respect to any floor of the Demised Premises on
its part to be completed, repair or correct the same in such manner as shall not
cause unreasonable interference to Tenant in its use of the Demised Premises,
provided that Landlord shall have no obligation to repair or correct any
non-latent defects or deficiencies that Landlord has not received written notice
of within one (1) year after the Rent Commencement Date, or within six (6)
months after discovery for any latent defects, or, in either such case, such
longer period of time to the extent of any recovery by Landlord under any
warranty, or any defects (latent or otherwise) in the Tenant Improvements..

     2.9 Tenant agrees that the Rent Commencement Date may occur prior to the
completion of other portions of the Project, including without limitation, the
Parking Structure, and landscaping of any improvements, so long as the
requirements of Section 2.4 have been satisfied.

     2.10 Landlord shall have the right to utilize the Land for purposes of
excavation work and shall have the right to authorize the use of, and grant
temporary licenses and easements over, the Land to owners of adjacent property
or governmental authorities for excavation purposes.

     2.11 Intentionally Omitted.

     2.12 Notwithstanding anything in this Lease to the contrary, if the
Commencement Date has not occurred on or before January 1, 2002, which date
shall be extended for force majeure (as described in Article 35 hereof) delays
in substantially completing the work described in Section 2.3 hereof, then
Tenant, as its sole remedy as a result thereof, shall have the right to
terminate this Lease by written notice to Landlord at any time before the
Commencement Date occurs.

     2.13 In the event that the Cafeteria, Conference Center and Fitness Center
are not substantially completed on or before July 1, 2002 (which date shall be
extended for force majeure, as described in Article 35 hereof), then Tenant, as
its sole remedy as a result thereof, shall receive a credit, against Annual Net
Rent that first becomes due under this Lease, in an amount equal to 3% of Annual
Net Rent, pro-rated on a daily basis, for each day thereafter until the
Cafeteria, Conference Center and Fitness Center are substantially complete.

                              ARTICLE 3

                          ADJUSTMENT OF RENT

                                 4
<PAGE>

     3.1 For the purposes of this Article 3, the following definitions shall
apply:

          (a) The term "Tenant's Share" shall mean 22.46% (75,248 divided by
335,000), which is the percentage calculated by dividing the total Rentable Area
of the Demised Premises by the total Rentable Area of the Building (both as
determined in accordance with Section 2.11 hereof). Landlord represents that all
other leases for space in the Building that have been signed as of the date
hereof have used 335,000 as the Rentable Area of the Building for purposes of
determining Tenant's Share. .

          (b) The term "Taxes" shall mean the amount of (i) all real estate
taxes, assessments, sewer and water rents, governmental levies, municipal taxes,
county taxes and any other governmental charge, general or special, ordinary or
extraordinary, unforeseen as well as foreseen, of any kind or nature whatsoever,
which is or may be assessed, levied or imposed upon all or any part of the
Project and the sidewalks, or streets in front of or adjacent thereto, including
any payment in lieu of taxes or any tax, excise or fee measured by or payable
with respect to any rent, any of which is levied against or payable by Landlord
with respect to the Project or any combination thereof, under the laws of the
United States, the State of Connecticut, or any political subdivision thereof,
and (ii) all expenses incurred by Landlord in contesting any of the foregoing
set forth in clause (i) of this sentence or the assessed valuation of all or any
part of the Project. If, due to a change in the method of taxation or in the
taxing authority, a new or additional real estate tax, or a franchise, income,
transit, profit or other tax or governmental imposition, however designated, is
levied against or payable by Landlord with respect to the Project or any
combination thereof, in addition to, or in substitution in whole or in part for
any tax which would constitute "Taxes," or in lieu of additional Taxes, that tax
or imposition shall be included within the term "Taxes." Taxes shall not include
income, estate, inheritance, successor, death, franchise, partnership, corporate
or capital stock taxes of Landlord.

          (c) The term "Tax Year" shall mean (i) each period of twelve months,
commencing on the first day of July of each such period within which occurs any
part of the Term, or (ii) such other period of twelve months which occurs during
the Term as is adopted as the fiscal year for real estate tax purposes of the
Town of Wilton, Connecticut.

          (d) The term "Expenses" shall mean the total of all of the costs and
expenses (and taxes thereon, if any) paid or incurred by Landlord with respect
to the operation and maintenance of the Project and the services provided to the
tenants of the Building computed on an accrual basis including the costs and
expenses with respect to the following: electricity, steam, gas and any other
fuel or utilities; water rates and sewer rents; air conditioning, ventilation
and heating; elevators and escalators; lobby, sidewalk, curb, parking area and
other public area maintenance and cleaning; interior and exterior landscaping
and decoration; cleaning and painting of common areas; window cleaning; building
standard cleaning service supplied to tenants by Landlord; the purchase price
and rental, as applicable, of all supplies, tools, materials, machinery and
equipment used in the operation or maintenance of the Project; fire, extended
coverage, boiler and machinery, sprinkler apparatus, public liability and
property damage, loss of rental, fidelity and plate glass insurance or any other
insurance required by the holder of any mortgage or ground lease covering the
Project or customarily carried with respect to buildings and projects similar to
the Building and the Project; wages, salaries, bonuses, disability benefits,
hospitalization, medical, surgical, union and general welfare benefits
(including group life insurance), any pension, retirement or life insurance plan
and other benefits or similar expenses respecting employees of Landlord up to
and including the grade of building manager; uniforms and working clothes for
such employees and cleaning and replacement thereof, expenses imposed on
Landlord pursuant to Law or to any collective bargaining agreement with respect
to such employees; worker's compensation insurance, payroll, social security,
unemployment and other similar taxes with respect to such employees; salaries of
bookkeepers and accountants, automated data processing costs; professional and
consulting fees, including legal and accounting fees; charges for independent
contractors performing work or providing services; association fees or dues;
telephone and stationary, guards, watchmen, and other security personnel,
services, systems and supplies; attendants, clerks, messengers, and other
receiving room personnel, services, systems and supplies; directory; repairs,
replacements and improvements which are necessary or appropriate for the
continued operation of the Building as a first-class office building and Project
(even if the same are classified as capital expenditures under generally
accepted accounting principles) including repairs, replacements and improvements
to the electrical, mechanical, plumbing and HVAC systems; management fees for
the management of the Project, of if no managing agent is employed by Landlord,
a sum in lieu of management fees which is not in excess of the then prevailing
rates for management fees in the lower Fairfield County Area for first-class
office buildings similar to the Building; all Conference Center Construction
Expenses and Conference Center Operating Expenses (both as defined in Article 5
hereof); all Cafeteria Construction Expenses and Cafeteria Operating Expenses
(both as defined in Article 6 hereof); all Fitness Center Construction Expenses
and Fitness Center Operating Expenses (both as defined in Article 7 hereof);
costs and expenses that relate to portions of the Complex other than the Land,
as allocated to the Project in accordance with reasonable formulae established
by Landlord; and any costs and expenses required to be paid by Landlord pursuant
to the terms of the REA.

     If Landlord makes any capital improvements or replacements which are
required by any Law enacted after the Rent Commencement Date or under generally
applied real estate practice in the operation of first-class office buildings in
the lower Fairfield County Area (excluding improvements made for tenants within
their leased space) or that Landlord makes which are intended to result in
savings or reductions in expenses or to benefit or increase the safety and
security of Building

                                 5
<PAGE>

tenants and invitees, then the costs for those capital improvements shall be
treated as an expense in one year or charged as an expense over several years,
and shall be included in Expenses for the Operating Year (as defined in Section
3.1(e)) in which the costs are incurred and subsequent Operating Years, on a
straight-line basis, to the extent that those capital expenditures are amortized
over their useful life or such other period as Landlord reasonably determines in
compliance with generally accepted accounting principles, with interest on the
unamortized costs at the Interest Rate.

     If Landlord leases any item of capital equipment which, if it were
purchased would be amortized and included in Expenses, then the rentals and
other costs paid pursuant to the leasing shall be included in Expenses for the
Operating Years in which they are incurred.

     The following costs and expenses shall not be included in Expenses or, in
the case of (iv), shall be deducted from Expenses:

               (i) if electricity furnished to the Demised Premises is
measured by meters and paid by Tenant directly to the utility supplier then the
cost of electricity to other leasable portions of the Building shall be excluded
from Expenses;

               (ii) leasing commissions;

               (iii) salaries for Landlord's executives above the grade of
building manager;

               (iv) amounts received by Landlord on account of proceeds of
insurance to the extent the proceeds are reimbursement for expenses which were
previously included in Expenses and amounts received by Landlord as a result of
rebates, discounts or refunds;

               (v) the cost of repairs and replacements incurred by reason of
fire or other casualty or condemnation to the extent to which Landlord receives
compensation through proceeds of insurance or a condemnation award;

               (vi) payments of principal and interest on any mortgages upon
either or both of the Land and the Building;

               (vii) payments of ground rent pursuant to any ground lease
covering either or both of the Land and the Building;

               (viii) Taxes;

               (ix) costs of performing Building standard work for any
individual tenant or of performing work or furnishing services to or for
individual tenants at such tenant's expense;

               (x) advertising and promotional expenditures relating to
leasing and marketing of the Building;

               (xi) depreciation of the Building;

               (xii) financing or refinancing costs;

               (xiii) salaries and other compensation for officers and
executives of Landlord;

               (xiv) legal or other fees, leasing commissions, advertising
expenses, promotional expenses and other costs incurred in leasing or attempting
to lease any portion of the Building;

               (xv) any insurance premium to the extent that Landlord is
specifically entitled to be reimbursed therefor by Tenant pursuant to this Lease
(other than pursuant to this Section) or by any other tenant or other occupant
of the Building pursuant to its lease (other than pursuant to an operating
expenses escalation clause contained herein);

               (xvi) the cost of any items to the extent reimbursed to
Landlord by the insurance Landlord is obligated to maintain;

               (xvii) the cost of any alterations, additions, changes,
replacements, improvements and repairs and other items which are made in order
to prepare space for occupancy by a new tenant;

                                 6
<PAGE>

               (xviii) (A) ground rents and mortgage debt service, (B)
reserves for anticipated future expenses, bad debt loss or rent loss, (C)
interest and penalties incurred as a result of Landlord's delinquent payment of
any obligation of Landlord, (D) costs associated with the operation of the
business of the entity which constitutes Landlord, which costs are not directly
related to the operation, management, maintenance and repair of the Building,
(E) costs of selling, financing, mortgaging or transferring any of Landlord's
interest in the Building, and costs of any disputes between Landlord and its
employees, and (F) costs, fines or penalties imposed as a result of Landlord's
failure to comply with Laws;

               (xix) (A) the salary, wages, fringe benefits and expenses
(collectively, "Employment Compensation") of persons engaged in the maintenance
or management of the Building above the grade of project manager or project
director whose principal place of employment is not located at the Building in
excess of $5,000 per operating year, and the portion of the Employment
Compensation of persons engaged in the maintenance or management of the Building
whose principal place of employment is located at the Building but who also
provide services for other properties under common control or management, based
on the portion that the number of hours such persons provide services to all
subject properties, and (B) the excess of the costs of services performed by
Landlord, its subsidiaries and affiliates to the Building over competitive costs
for such services rendered by non-affiliated persons or entities of similar
skill and experience;

               (xx) (A) Except for Conference Center Construction Expenses,
Cafeteria Construction Expenses and Fitness Center Construction Expenses, costs
of the original construction (as distinguished from operation and maintenance)
of the Building or any expansion thereof, and (B) costs of correcting defects in
the design or construction of the Building and the costs of repairing damage
caused as a result of such defects, in each case to the extent of Landlord's
recovery under any warranty applicable thereto;

               (xxi) (A) costs resulting from the gross negligence of
Landlord, or its agents, contractors, employees or of any tenants of the
Building, (B) costs of services or other benefits supplied to other tenants in
the Building but not provided to Tenant, (C) costs resulting from violations by
Landlord or other tenants of any lease, including this Lease; (D) Landlord's
charitable or political contributions; (E) compensation paid to clerks,
attendants, or other persons in commercial concessions operated by Landlord
other than the Conference Center, Cafeteria and Fitness Center; and (F) costs to
acquire sculptures, paintings and other objects of art located within or outside
the Building that are more expensive than art work customarily found in similar
first class buildings in lower Fairfield County, provided that no costs to
maintain and clean art work shall be excluded; and

               (xxii) the cost of any services provided by Landlord or
Landlord's affiliates to the extent that such costs are in excess of what they
would have been if provided by an unrelated third party.

     If during all or part of any Operating Year, Landlord does not furnish any
item of work or service (which if it were furnished would be included in
calculating Expenses) to portions of the Project, because construction of the
Building or the Project is not completed, or such portions are not occupied or
leased, or because such item of work or service is not required or desired by
the tenant of such portion, or such tenant is itself obtaining and providing
such item of work or service, or for other reasons, then, for the purpose of
computing Tenants Expense Payment (as defined in Section 3.2) and
notwithstanding that Landlord did not incur the cost, the amount of the cost for
such item for such period which would reasonably have been incurred during such
period by Landlord if it had furnished such item shall be included in Expenses.

          (e) The term "Operating Year" shall mean the calendar year in which
the Rent Commencement Date occurs and each subsequent calendar year within which
any portion of the Term falls.

          (f) The term "Additional Rent Statement" shall mean a statement
furnished by Landlord to Tenant setting forth the amount payable by Tenant in
respect of Taxes for a specified Tax Year or in respect of Expenses for an
Operating Year (as the case may be) pursuant to this Article 3.

     3.2 Tenant shall pay to Landlord on account of each Operating Year an
amount equal to Tenant's Share of the Expenses for such Operating Year
("Tenant's Expense Payment").

     3.3 (a) Landlord shall furnish to Tenant for each Operating Year an
Additional Rent Statement (subject to revision as provided in this Section 3.3)
setting forth Landlord's estimate of Tenant's Expense Payment for such Operating
Year (the "Estimated Expense Statement"). Tenant shall pay to Landlord on the
first day of each month during such Operating Year an amount equal to
one-twelfth of Tenant's Expense Payment that, is shown on the Estimated Expense
Statement for such Operating Year. Notwithstanding the foregoing, if the Rent
Commencement Date is other than the first day of an Operating Year and/or the
date of the Expiration or other termination of this Lease for reasons other than
Tenant's default (both, a "Term Completion") is a day other than the last day of
an Operating Year, then Tenant's Expense Payment (as shown on the Estimated
Expense Statement) shall be proportionately pro-rated for such Operating Year(s)
based on the number of days during such Operating Year(s) which fall within the
Term of this Lease. If Landlord furnishes the Estimated Expense

                                 7
<PAGE>

Statement for an Operating Year after the commencement of the Operating Year,
then until the first day of the month following the month in which the Estimated
Expense Statement is furnished to Tenant, Tenant shall pay to Landlord on the
first day of each month an amount equal to the monthly sum payable by Tenant to
Landlord under this Section 3.3 for the last month of the preceding Operating
Year.

          (b) Landlord may at any time and from time to time (but not more
than three times in any Operating Year) furnish to Tenant an Estimated Expense
Statement setting forth Landlord's revised estimate of Tenant's Expense Payment
for a particular Operating Year. After the end of each Operating Year, Landlord
shall submit to Tenant an annual Additional Rent Statement setting forth the
Expenses in reasonable detail for the preceding Operating Year and the balance
of Tenant's Expense Payment, if any, due to Landlord from Tenant for such
Operating Year. Landlord shall endeavor to provide such Additional Rent
Statements within one hundred twenty (120) days after the end of each Operating
Year. Within 15 days following Tenant's receipt of a revised Estimated Expense
Statement for an Operating Year or of the annual Additional Rent Statement for
the preceding Operating Year, Tenant shall pay to Landlord an amount equal to
the amount of any underpayment of Tenant's Expense Payment with respect to such
Operating Year and, in the event of an overpayment, Landlord shall credit the
amount of Tenant's overpayment against subsequent charges due under this Article
3.

     3.4 Tenant shall pay to Landlord on account of any Tax Year all or any
portion which occurs during the Term of this Lease an amount equal to Tenant's
Share of the Taxes for such Tax Year ("Tenant's Tax Payment").

     3.5 (a) Landlord shall furnish to Tenant for each Tax Year an Additional
Rent Statement that sets forth the amount of Taxes for that Tax Year. Tenant's
Tax Payment for each Tax Year shall be due and payable in two semi-annual
installments in advance, on the first day of each June and December, in amounts
based upon the Additional Rent Statement furnished with respect to that Tax
Year. If the Additional Rent Statement is furnished to Tenant after the
commencement of the Tax Year in respect of which that Additional Rent Statement
is furnished, Tenant shall, within 15 days after receipt of that Additional Rent
Statement, pay to Landlord an amount that is equal to the amount of Tenant's Tax
Payment with respect to that Tax Year which would have been paid during that Tax
Year before the end of the 15-day period if the Additional Rent Statement for
that Tax Year had been furnished by the Landlord to Tenant before the
commencement of that Tax Year. Landlord, at its option, may require Tenant to
make payments on account of Tenant's Tax Payment on a monthly basis, in which
event the procedures set forth in Section 3.3 hereof shall apply thereto, or on
such quarterly or other basis as Landlord shall require from time to time.

          (b) At any time during or after a Tax Year in respect of which
Landlord has furnished an Additional Rent Statement, Landlord may furnish to
Tenant one or more corrected Additional Rent Statements if the Taxes actually
due were incorrectly reflected in the original or any prior Additional Rent
Statement. If Landlord does furnish such a corrected Additional Rent Statement,
then if the amount of the payments that were made by Tenant on account of
Tenant's Tax Payment for that Tax Year is (i) less than the amount of the
payments that the Tenant should have made based upon the corrected Additional
Rent Statement, then within 15 days after receipt by Tenant of the corrected
Additional Rent Statement Tenant will pay to Landlord the amount of the
underpayment; or (ii) more than the amount of payments that Tenant should have
made based upon the corrected Additional Rent Statement, then Landlord shall
credit the overpayment against subsequent charges due under this Article 3.

     3.6 (a) The benefit of any discount for early payment or prepayment of
Taxes shall accrue solely to Landlord's benefit and such discount shall not be
subtracted from Taxes.

          (b) If the real estate fiscal year of the Town of Wilton is changed
during the Term, then, (i) the term "Tax Year" shall be deemed to mean that real
estate tax year as so changed, and (ii) Tenant's Tax Payments shall be computed
and paid separately in respect of the Tax Year before the change and the Tax
Year after the change on the basis of the number of days in each.

          (c) If Landlord receives a refund of Taxes in respect of any Tax
Year, then Landlord shall credit an amount that is equal to Tenant's Share of
the amount of the refund that applies to any portion of the Term, less costs and
expenses incurred by Landlord for the purpose of receiving such refund, against
subsequent charges due under this Article 3.

     3.7 On or prior to its due date, Tenant shall directly pay to the
appropriate taxing authorities the amount of all occupancy taxes and rent taxes
now or in the future in effect that are levied on or measured by Annual Net Rent
or Additional Rent. If, in the future, such taxes are included within the term
Taxes, then Tenant shall not be obligated to make payments to the taxing
authorities as described in this Section 3.7.

     3.8 If the Rent Commencement Date is other than the first day of a Tax
Year or the Term Completion is a day other than the last day of a Tax Year, then
Taxes shall be proportionately reduced for such Tax Year(s) by multiplying

                                 8
<PAGE>

Taxes by (i) a fraction, the numerator of which is the number of days beginning
with the Rent Commencement Date in such Tax Year, and the denominator of which
is 365 and/or (ii) a fraction, the numerator of which is the number of days
prior to and including the date of Term Completion in such Tax Year and the
denominator of which is 365.

     3.9 If, prior to the Expiration Date, Landlord is unable to give Tenant
appropriate credits for the entire refund and return of overpayment sums to
which Tenant is entitled pursuant to Section 3.3(b), 3.5(b) and 3.6(c), then
Landlord shall refund the balance to Tenant within thirty days following the
Expiration Date.

     3.10 Except as otherwise specifically provided, in no event shall the
Annual Net Rent be reduced by operation of this Article 3. The rights and
obligations of Landlord and Tenant under the provisions of this Article 3 with
respect to any Additional Rent Statement shall survive the Term Completion and
shall apply to any Additional Rent Statement furnished to Tenant after the Term
Completion.

     3.11 Landlord's failure to render an Additional Rent Statement with
respect to any Tax Year or Operating Year shall not prejudice Landlord's right
to thereafter render an Additional Rent Statement and receive payments with
respect thereto or with respect to any subsequent Tax Year or Operating Year.

     3.12 Each Additional Rent Statement shall be conclusive and binding upon
Tenant unless within 60 days after receipt of that Additional Rent Statement
Tenant notifies Landlord that Tenant disputes the correctness of such Additional
Rent Statement, specifying the particular respects in which the Additional Rent
Statement is claimed to be incorrect. Upon Tenant's giving of such notice to
Landlord, Tenant, at its expense, may examine Landlord's books and records
relating to the operation of the Project to determine the accuracy of the
Additional Rent Statement. If Tenant's auditor determines that Landlord's
Additional Rent Statement has overcharged Tenant for Expenses (and such
determination is not successfully challenged by Landlord) by more than five (5%)
percent, Landlord shall reimburse Tenant for the reasonable out-of-pocket
expenses of such audit. Any dispute relating to any Additional Rent Statement
that is not resolved within 90 days after the rendering of such Additional Rent
Statement may be submitted to arbitration by either party pursuant to Article 37
pending the determination of the dispute, Tenant shall pay Additional Rent when
due in accordance with the Additional Rent Statement that Tenant is disputing,
without prejudice to Tenant's right to recover any portion of the Additional
Rent that is determined to not be due to Landlord.

                              ARTICLE 4

                         SERVICE AND UTILITIES

     4.1 (a) Risers, feeders and wiring will be installed in the Building by
Landlord to furnish electrical service of 6 watts per usable square foot on a
connected load basis to the Demised Premises (exclusive of electricity required
of the operation of the Building HVAC System) (the "Required Load") as part of
Landlord's Work. If Tenant shall require electric power in excess of the
Required Load, then Landlord agrees to make same available to Tenant (up to an
additional 2 watts per usable square foot), provided, however, if in connection
with providing such additional power Landlord will be required to install
additional feeders, risers or other electrical equipment, then, at Tenant's
expense, Landlord shall provide such additional feeders or risers, in locations
reasonably designated by Landlord, to supply Tenant's additional electrical
requirements, and all other equipment proper and necessary in connection with
such feeders or risers shall be installed by Landlord upon Tenant's request at
the sole cost and expense of Tenant, which costs (which shall be the actual,
reasonable costs incurred by Landlord) shall include a supervisory fee to
Landlord in the amount of ten percent (10%) of the cost of the work.

          (b) Landlord shall supply, subject to its ability to obtain the same
from the public utility furnishing electricity to the Building, electrical power
to the Building including the Demised Premises (through equipment and facilities
installed by Tenant as part of the Tenant Improvements) and the common areas.
The obligations of the Landlord hereunder shall be subject to any rules and
regulations of the authority providing electricity to Landlord. Tenant shall, at
Tenant's sole cost and expense, and in accordance with Schedule D hereof,
install as part of the Tenant Improvements, submeters in the Demised Premises to
measure Tenant's electrical consumption for light and power and air conditioning
therein and Landlord shall furnish electricity to the Demised Premises on a
submetered basis. The cost of Tenant's electrical consumption in the Demised
Premises shall be paid by Tenant to Landlord, as Additional Rent hereunder and
shall be charged to Tenant by applying the then current electricity supplier's
rate as charged to Landlord ("Landlord's Rate") to the consumption determined by
the submeter readings and adding thereto an amount equal to two (2%) percent of
the amount which is the result of such application, for Landlord's
administrative costs in supplying electric to the Demised Premises on a
submetered basis. Landlord's Rate shall include no profit to Landlord. Bills for
such amounts shall be rendered to Tenant from time to time and shall be payable
by Tenant within twenty (20) Business Days after the date so rendered. For the
purpose of this Section 4.1(b) the rate to be paid by Tenant shall include any
taxes, energy charges, demand charges, fuel adjustment charges, rate adjustment
charges, or other charges imposed in connection therewith. If any tax shall be
imposed upon Landlord's receipts from the sale or resale of electrical energy to
Tenant by any federal, state, city or local authority, the pro

                                 9
<PAGE>

rata share of such tax allocable to the electrical energy service received by
Tenant shall be passed on to, included in the bill of and paid by Tenant.

          (c) Landlord's reasonable charges to be established by Landlord from
time to time for use of heat during non-Business Hours shall be paid by the
tenant(s) requesting the additional heat in accordance with Section 4.2(b)
below. Tenant shall pay its proportionate share of Landlord's charges as
Additional Rent within fifteen (15) days of receiving Landlord's bill.

          (d) During the performance of Landlord's Work, Landlord shall pay as
the same become due all charges for the consumption of all electricity used in
connection therewith. Notwithstanding the foregoing, Tenant shall pay directly
to Landlord an amount equal to $0.10 multiplied by the Rentable Area of the
Demised Premises for the consumption of electricity used in the Demised Premises
during the concurrent performance of the Tenant Improvements and Landlord's
Work. In the event that the period of concurrent performance of the Tenant
Improvements and Landlord's Work is longer than six (6) months, then such $0.10
amount shall be proportionately increased to reflect the period of concurrent
performance in excess of six (6) months.

          (e) Tenant will not (i) use electrical energy that, in Landlord's
sole judgment, exceeds the capacity of the then existing risers, feeders and
other electrical equipment of the Building, or (ii) make or perform or permit
the making or performing of any alterations to wiring, installations or other
electrical facilities in or serving the Demised Premises without the consent of
the Landlord in each instance. Any additional risers, feeders, or other
equipment proper or necessary to supply Tenant's electrical requirements, upon
written request of Tenant, will be installed by Landlord, at Tenant's cost, if,
in Landlord's sole judgment, those risers, feeders or other equipment are
necessary to supply those requirements and will not cause permanent damage or
injury to the Building or the Demised Premises, or cause or create a dangerous
or hazardous condition or entail excessive or unreasonable alterations, repairs
or expense or interfere with or disturb other tenants or occupants.

          (f) Landlord shall not in any way be liable or responsible to Tenant
for any loss or damage or expense which Tenant sustains or incurs if either the
quantity or character of electric service is changed or is no longer available
or suitable for Tenant's requirements.

          (g) Landlord reserves the right to discontinue furnishing
electricity to Tenant in the Demised Premises on not less than ninety (90) days'
notice to Tenant. If Landlord exercises such right to discontinue, or is
compelled to discontinue furnishing electricity to Tenant, this Lease shall
continue in full force and effect and shall be unaffected thereby, except only
that from and after the effective date of such discontinuance, Landlord shall
not be obligated to furnish electricity to Tenant. If Landlord so discontinues
furnishing electricity to Tenant, Tenant shall arrange to obtain electricity
directly from the public utility or other company servicing the Building. Such
electricity may be furnished to Tenant by means of the then existing electrical
facilities serving the Demised Premises to the extent that the same are
available, suitable and safe for such purposes. All meters and all additional
panel boards, feeders, risers, wiring and other conductors and equipment which
may be required to obtain electricity, of substantially the same quantity,
quality and character, shall be installed by Landlord, at Tenant's sole cost and
expense, provided that such costs are competitive in the market and provided
further that such costs shall be at Landlord's expense if Landlord voluntarily
discontinues furnishing electricity. Landlord shall not voluntarily discontinue
furnishing electricity to Tenant unless it likewise discontinues furnishing
electricity to all tenants of office space on the same floor of the Building, or
until Tenant is able to receive electricity directly from the public utility or
other company servicing the Building.

     4.2 Landlord shall provide to the Demised Premises:

          (a) Necessary elevator facilities during Business Hours and at least
one passenger elevator subject to call at all other times, consistent with other
similar first class suburban office buildings in Fairfield County.

          (b) Heat and air-conditioning through the Building systems. The HVAC
System shall be designed to maintain (a) 75 (+1(0)) degrees Fahrenheit dry bulb
when outdoor conditions are 91 degrees Fahrenheit dry bulb and 76 degrees
Fahrenheit wet bulb and (b) 70 degrees Fahrenheit dry bulb when outdoor
conditions are 0 degrees Fahrenheit dry bulb. Total air distribution shall be
designed to provide not less than 0.9 CFM per usable square foot and will be
controlled by a Building Management System. Building air conditioning supply air
systems shall be designed with minimum 75% efficiency air filters. Tenant shall
cause all operable windows, if any, in the Demised Premises to be kept closed
(except for cleaning purposes), shall keep entirely unobstructed all heat and
air-conditioning vents, intakes, outlets and grilles at all times and shall
comply with and observe all regulations and requirements prescribed by Landlord
for the proper functioning of the HVAC systems. The HVAC for the Building is
designed based upon (i) electrical heat dissipation load of four (4) watts per
usable square foot, and (ii) occupancy rate of 1 person per 100 usable square
feet and shades fully closed to limit exposure to direct solar radiation. Air
conditioning for the Demised Premises will be provided by separate package units
(4 per floor of the

                                 10
<PAGE>

Building). Tenant shall pay Landlord for all costs of air conditioning used in
the Demised Premises, as shown by the meters for each unit, together with 2% of
the amount shown on such meter, as provided in Section 4.1(b) above. To the
extent any portion of the Demised Premises shares a package unit with other
portions of the floor that the Demised Premises are on, then the costs of
operating such package units shall be apportioned on a square foot basis,
between the portion of the Demised Premises that is served by such unit, and any
other leasable space that is served by such unit, except that if the Demised
Premises shares a package unit with other portions of the floor that the Demised
Premises are on and Tenant requires air conditioning during non-Business Hours,
the costs of operating such package unit during non-Business Hours shall be
shared by only those tenants that request the air conditioning for that time
period (i.e., if only Tenant requests it, then Tenant shall pay 100% of the cost
of operating such package unit) even if other tenants actually benefit
therefrom, provided that Landlord agrees that the charge for air conditioning
for the hours of 7:00 a.m. to 8:00 a.m. or for 6:00 p.m. to 8:00 p.m. shall be
1/3 of the normal non-Business Hours rate. Landlord anticipates that the initial
normal charge for operating each air conditioning package unit during
non-Business Hours will be $95.00 per hour per unit. Tenant shall pay Landlord's
reasonable charges for heat during periods other than Business Hours. Landlord
anticipates that the initial charge for heat during periods other than Business
Hours will be $25.00 per hour per wing. In the event that Tenant shall require
air conditioning or heating during periods other than Business Hours, then
Tenant shall give Landlord reasonable advance notice of such requirement.
"Reasonable advance notice" for purposes of this paragraph shall mean
notification before 4:00 p.m. of the Business Day on which the described
services are required and before 4:00 p.m. of the last Business Day preceding
the non-Business Day on which the described services are required. Landlord's
reasonable charges (which shall reflect Landlord's direct costs plus 2% thereof
to compensate Landlord for its administrative costs) to be established by
Landlord from time to time for use of heat during non-Business Hours shall be
paid by Tenant, as Additional Rent, written receipt of a bill from Landlord.

          (c) Standard cleaning and janitorial services on Business Days in
accordance with the cleaning specifications annexed hereto as Schedule F. If
Tenant requires cleaning and janitorial services in excess of those standard
services, then Tenant shall so notify Landlord. If Landlord elects to provide
those services, then Tenant shall pay Landlord's charges therefor upon receipt
of Landlord's invoice therefor.

          (d) Hot and cold water for lavatory, drinking and office cleaning
purposes. If Tenant requires, uses or consumes water in quantities that are in
excess of standard office usage (as reasonably determined by Landlord), then
Landlord may install a meter or meters or other means to measure Tenant's water
consumption, and Tenant will reimburse Landlord for the cost of installation and
maintenance of the meter or meters or the cost of Landlord's other means of
measuring the water consumption by Tenant, in each case upon receipt of
Landlord's invoice therefor. Tenant shall reimburse Landlord for the cost of all
water consumed, as so measured, plus 2% thereof, for Landlord's administrative
costs in connection therewith, together with any taxes, sewer rents or other
charges which are imposed by any Law based on the quantity of water used by
Tenant.

          (e) Subject to the provisions of the REA, Landlord may, but shall
not be obligated to, construct as part of Landlord's Work a natural walking
trail (hereinafter called the "Walking Trail") at the Complex for use by Tenant
in common with the other tenants and occupants of the Complex. If constructed,
the Walking Trail may be permitted to thereafter remain in and/or revert to its
natural state. Tenant agrees that use of the Walking Trail shall be at the risk
of the individual making use thereof and Tenant shall indemnify and hold
Landlord harmless from and against claims made by Tenant's employees or invitees
of Tenant in connection with their use of the Walking Trail.

     4.3 Landlord may, without any liability whatsoever or abatement of Total
Rents, interrupt, curtail, suspend or stop the heating, air-conditioning,
elevator, plumbing, electric and other systems or the use of any Building
facilities when necessary by reason of accident, strike or emergency or for
repairs, alterations, replacements or improvements, or because of inability to
secure a proper supply of fuel, gas, steam, water, electricity, labor or
supplies, or because of any similar or dissimilar cause beyond the reasonable
control of Landlord. Landlord shall have no liability to Tenant, nor shall
Tenant's obligations under this Lease be in any way reduced, in the event of any
interruption of services or utilities for whatever reason, except that,
notwithstanding anything in this Lease to the contrary, in the event of any
interruption in electricity, HVAC or plumbing that materially interferes with
Tenant's ability to conduct its business for more than five (5) consecutive
business days, then Annual Net Rent shall, as Tenant's sole remedy, thereafter
equitably abate, in proportion to the interference with Tenant's business that
is caused thereby, until the interruption ceases. Landlord shall, at reasonable
times, have free and unrestricted access to any and all mechanical, plumbing and
electrical installations of Landlord in the Demised Premises, and Tenant shall
not erect or place any partition or other obstruction which unreasonably
interfere with Landlord's free access to those installations or with the moving
of Landlord's equipment to and from the enclosures containing those
installations. Tenant, its agents, employees and contractors shall not enter
said enclosures or adjust, touch or in any way tamper with those installations.

     4.4 The Building shall have a card access system for entry at the
Building's perimeter at all times during the Term. In addition, Landlord agrees
that if any other security is provided by Landlord in the Building, it will be
provided equally (or with reasonable equivalents) in both wings of the Building
(or, if not provided equally, the north wing shall be

                                 11
<PAGE>

provided with better security than the south wing).

     4.5 Landlord will not furnish any services, except as provided in this
Lease.

                              ARTICLE 5

                           CONFERENCE CENTER

     5.1 Landlord shall as part of Landlord's Work and in accordance with the
Building Plans and Specifications, construct a conference center in the Building
(hereinafter called the "Conference Center") and install tables, chairs and
other appropriate equipment therein for use by Tenant and other tenants at the
Building, on a first come, first serve, basis. The charge for use of a
conference room shall initially be ($150.00) per day per room, which charge
shall be subject to reasonable increases form time to time by Landlord. Any such
charges recorded by Landlord shall be referred to as "Usage Fees".

     5.2 Tenant's use of the Conference Center shall be subject to all
reasonable rules and regulations as Landlord may from time to time promulgate
upon prior notice to Tenant.

     5.3 "Conference Center Construction Expenses" shall mean all expenses
incurred by Landlord in connection with the construction of the Conference
Center, the cost of acquiring and installing furniture, fixtures and equipment
therein, in excess of the cost of the Core and Shell Work with respect thereto,
plus an amount equal to $30.00 multiplied by the number of usable square feet in
the Conference Center, amortized on a straight line basis over ten (10) years
with interest at the Prime Rate. Conference Center Construction Expenses shall
be included in Expenses for the Operating year in which the Conference Center is
substantially completed and subsequent Operating Years. The amount of Conference
Center Construction Expenses that are included in Expenses for any Operating
Year shall also include the amount of lease payments made by Landlord during
that Operating Year for leased furniture, fixtures or equipment used in the
Conference Center. Conference Center Expenses shall be recalculated, from time
to time, when the Conference Center is renovated and/or any of the furniture,
fixtures or equipment therein is replaced, to include the costs of any such
renovation or replacement, amortized over ten (10) years from the date of the
renovation or replacement with interest at the Prime Rate. The costs and
expenses of operating and maintaining the Conference Center, net of any Usage
Fees ("Conference Center Operating Expenses"), shall be included in Expenses for
the Building.

                              ARTICLE 6

                              CAFETERIA

     6.1 For the purposes of this Article 6, the following definitions shall
apply:

          (a) "Break-Even Basis" shall mean the point at which, from time to
time, the Cafeteria Operating Expenses, including, without limitation, the
Cafeteria Caterer's fee, equals all income derived in connection with the
operation and maintenance of the Cafeteria business.

          (b) "Cafeteria Caterer" shall mean any independent contractor which
operates the Cafeteria (as hereinafter defined) pursuant to separate contracts
with Landlord or any other person or entity or pursuant to a single contract in
accordance with terms of this Article 6.

          (c) "Cafeteria Construction Expenses" shall mean all expenses
actually incurred by Landlord in connection with the construction of the
Cafeteria, including the cost of acquiring and installing furniture, fixtures
and equipment therein, in excess of the cost of the Core and Shell Work with
respect thereto, plus an amount equal to $30.00 multiplied by the number of
usable square feet in the Cafeteria, amortized on a straight line basis over ten
(10) years, with interest at the Prime Rate. Cafeteria Construction Expenses
shall be included in Cafeteria Operating Expenses for the Operating Year in
which the Cafeteria commences to provide food services to the employees of
Tenant and subsequent Operating Years during the Term. The amount of Cafeteria
Construction Expenses that are included in Cafeteria Operating Expenses for any
Operating Year shall also include the amount of any lease payments made by
Landlord during that Operating Year for leased furniture, fixtures or equipment
used in the Cafeteria. Cafeteria Construction Expenses shall be recalculated,
from time to time, when the Cafeteria is renovated and/or any of the furniture,
fixtures or equipment thereon is replaced, to include the costs of any such
renovation or replacement, amortized over ten (10) years from the date of the
renovation or replacement with interest at the Prime Rate.

          (d) "Cafeteria Operating Expenses" shall mean all expenses in
connection with the

                                 12
<PAGE>

operation, maintenance and repair of the Cafeteria business, including, without
limitation, the cost of all foodstuffs, beverages and other goods to be sold in
the Cafeteria; the Cafeteria Caterer's fee; the salaries, wages, fringe benefits
and all other compensation and other benefits of all Cafeteria employees; the
cost of any dishes, glassware or utensils, amortization of the cost of new
refrigeration and other kitchen equipment and accessories; the cost of
maintaining or repairing all Cafeteria-related equipment; the costs of cleaning
the dining areas and the areas in front of food service counters; heat,
electricity, lighting and other utilities and Cafeteria Construction Expenses.

     6.2 Landlord shall provide (or may contract with a Cafeteria Caterer to
provide) food services to the employees of Tenant and other occupants of the
Building in a cafeteria in the Building (the "Cafeteria"), with menu pricing on
not less than a break even basis. Landlord reserves the right, at any time from
time to time in its sole and absolute discretion, to change the Cafeteria
Caterer.

     6.3 The maximum hours the Cafeteria will be open for Tenant's use on
Business Days shall be 7:30 A.M. - 2:00 P.M. Food and beverages shall be
available in vending machines in the Cafeteria on a twenty-four (24) hour basis.
The level of goods and services which Landlord or the Cafeteria Caterer shall
provide during any given Business Day will vary. Upon reasonable advance notice,
the Cafeteria Caterer will provide catering services to Tenant within the
Demised Premises. Any profits generated by the Cafeteria Caterer from such
catering activities shall be included in the calculation of the Break-Even
operation of the Cafeteria. The Cafeteria will, as long as it is open, be
operated at a standard that is consistent with cafeterias in similar corporate
office parks in Fairfield County.

     6.4 Tenant acknowledges and agrees to and for the benefit of Landlord that
(a) the efficiency and the extent of, and the food selection at, the Cafeteria
are directly related to the number of users and, accordingly, when Tenant and
other tenants or occupants at the Building vacate leased space at the Building,
the nature and the extent of the services provided at the Cafeteria may be
changed by Landlord, including, without limitation, changes to the food menu and
menu pricing; and (b) Landlord shall not be subject to any liability, nor shall
Tenant be entitled to any compensation or diminution or abatement of rent, by
reason of Landlord's exercise of any rights reserved with respect to the
modification of the Cafeteria services provided pursuant hereto or if Landlord
elects to cease operating the Cafeteria pursuant to Section 6.5 below.

     6.5 Notwithstanding the foregoing, if the Cafeteria is not operating on a
Break-Even Basis, Landlord may cease operating the Cafeteria upon sixty (60)
days' notice to Tenant unless Tenant shall elect, in its sole discretion, with
or without the cooperation of other tenants in the Building, within said sixty
(60) day period, to subsidize the Cafeteria so that it does operate on a Break
Even Basis. If Landlord shall cease operating the Cafeteria, the unamortized
portion of the Cafeteria Construction Expenses shall continue to be included in
Expenses for the Operating Year in which Landlord ceases to operate the
Cafeteria and subsequent Operating Years.

     6.6 Landlord agrees that in no event will the Cafeteria Caterer be
obligated to pay rent for the Cafeteria.

                              ARTICLE 7

                            FITNESS CENTER

     7.1 Landlord shall as part of Landlord's Work and in accordance with the
Building Plans and Specifications, construct a fitness center of approximately
3,500 to 4,000 square feet in the Building (hereinafter called the "Fitness
Center") and install exercise equipment and machines therein for use by
employees of Tenant employed at the Building and for use by other tenants and
their employees actually employed at the Building. The Fitness Center shall
include men's and women's locker rooms with showers, but Landlord shall not be
required to provide towels or any other supplies in connection therewith, or to
provide any personal or other staff in the Fitness Center. Tenant's employees
shall have the right, together with the employees of other occupants of the
Building, to use the Fitness Center "free of charge", at their own risk, seven
(7) days per week, twenty-four (24) hours per day (except if the Fitness Center
is closed due to repairs or cleaning) and subject to the provision of Section
4.3 hereof.

     7.2 Landlord shall not be subject to any liability or responsibility for
injury or damages to persons or property or to any liability for any cause
whatsoever in connection with Tenant's use of the Fitness Center and Tenant
hereby waives any claims against Landlord which Tenant may have in connection
with its use of the Fitness Center unless the same is due to the gross
negligence or willful misconduct of Landlord, its agents or employees. Tenant
hereby agrees to indemnify and hold Landlord harmless from and against any cost,
damage, loss or expense resulting from or arising in connection with the use of
the Fitness Center by its officers, employees or invitees unless the same is due
to the gross negligence or willful misconduct of Landlord, its agents, or
employees. Tenant agrees that Landlord shall have the right to condition use of
the Fitness Center by any individual upon such individual's execution and
delivery to Landlord or a release of liability of Landlord (in form satisfactory
to Landlord) in connection with use of the Fitness Center.

                                 13
<PAGE>

     7.3 Tenant's use of the Fitness Center shall be subject to all reasonable
rules and regulations as Landlord may from time to time promulgate upon prior
notice to Tenant, including without limitation the requirement that individuals
sign and deliver a release of liability as a condition to use of the Fitness
Center.

     7.4 "Fitness Center Construction Expenses" shall mean all expenses
incurred by Landlord in connection with the construction of the Fitness Center,
the cost of acquiring and installing exercise and other equipment therein and
the cost of acquiring and installing furniture, fixtures and equipment in the
Fitness Center, in excess of the cost of the Core and Shell Work with respect
thereto, plus an amount equal to $30.00 multiplied by the number of usable
square feet in the Fitness Center, amortized on a straight line basis over ten
(10) years with interest at the Prime Rate. Fitness Center Construction Expenses
shall be included in Expenses for the Operating Year in which the Fitness Center
is substantially completed and subsequent Operating Years. The amount of Fitness
Center Construction Expenses that are included in Expenses for any Operating
Year shall also include the amount of any lease payments made by Landlord during
that Operating Year for leased furniture, fixtures or equipment used in the
Fitness Center. Fitness Center Construction Expenses shall be recalculated, from
time to time, when the Fitness Center is renovated and/or any of the furniture,
fixtures or equipment therein is replaced, to include the costs of any such
renovation or replacement, amortized over ten (10) years form the date of the
renovation or replacement with interest at the Prime Rate. The costs and
expenses of operating and maintaining the Fitness Center ("Fitness Center
Operating Expenses") shall be included in Expenses for the Building.

     7.5 In the event the Fitness Center is underutilized by tenants in the
Building, as determined by Landlord in its reasonable discretion, Landlord may,
but shall not be required to, permit the employees of the building on Parcel 2
(as shown on Schedule A-2 attached hereto) to use the Fitness Center at a cost
to be determined by Landlord in its reasonable discretion (the "Paying
Members"). All monies received from the Paying Members by Landlord for use of
the Fitness Center shall be credited against Fitness Center Operating Expenses
for the Operating Year in which such monies are received.

                              ARTICLE 8

                               PARKING

     8.1 Tenant shall be entitled to use, at no additional cost or charge, up
to three (3) parking spaces, for each one thousand (1,000) rentable square feet
leased by Tenant in the Building ("Tenant's Parking Allocation"). Tenant's
Parking Allocation shall be located in the below grade parking area of the
Building and the Parking Structure, with Tenant's Parking Allocation being
allocated pro-rata between the below grade parking and the Parking Structure.
All of Tenant's parking in the Parking Structure shall be on a non-reserved,
"first come, first serve" basis. Tenant's parking in the below grade parking
area shall be in an area designated by Landlord and reserved for use by Tenant
and its visitors, and, if specified by Landlord, a portion of the parking spaces
in such designated area (as determined by Landlord) shall be marked as being for
Tenant's visitors, provided that Landlord shall have the right to have visitor
parking for all tenants in the Building located in visitor parking areas in the
grade level and/or below grade parking areas, in which event Tenant's pro-rata
share thereof shall satisfy that portion of Tenant's Building Allocation. If
Landlord decides to devote all or a substantial portion of the grade level
parking to visitor parking and if such visitor parking is designated by Landlord
for specific tenants, then Tenant shall be entitled to Tenant's Share of such
designated spaces. Landlord shall not discriminate against Tenant in located
Tenant's reserved parking area (for example, Tenant will receive its
proportionate share of spaces that are closer and farther from the Building).
Tenant may, at its cost, designate up to ten (10) spaces in its reserved area as
being reserved for specific individuals. Landlord shall not be obligated to
police any designated or reserved parking area or spaces, and Landlord shall
have no liability to Tenant, nor shall Tenant's obligation under this Lease be
in any way affected, in the event of any unauthorized use thereof. If Landlord
provides a designated parking area or areas for Tenant, Tenant shall require its
personnel and visitors to park their vehicles only in the spaces designated by
Landlord from time to time as available to Tenant. All vehicles parked by Tenant
and its employees, agents, contractors and visitors shall conform to such
reasonable height, width and other size requirements as shall be established by
Landlord from time to time, and Tenant shall defend, indemnify and hold Landlord
harmless against by damage or liability incurred by Landlord as a result of any
breach of such requirements. Tenant, its personnel and visitors shall not at any
time park any trucks or delivery vehicles in any areas other than the
specifically designated loading, pick-up and standing areas. Access to and
parking in the below grade parking and the Parking Structure shall be on a
24-hour per day, 7 days per week basis, and otherwise subject to any Parking
Rules and Regulations promulgated from time to time by Landlord.

     8.2 Landlord shall have no liability on account of any damage or loss to
any vehicle or its contents, regardless of cause, except Landlord's willful
misconduct or gross negligence, and Tenant hereby agrees to indemnify, hold
harmless and defend Landlord from and against any and all causes, claims, suits,
damages, and expenses (including reasonable attorneys' fees) arising from the
use of the below grade parking or the Parking Structure by Tenant or by anyone
claiming by, through or under Tenant's privileges granted hereunder.

                                 14
<PAGE>

     8.3 At any time and from time to time Landlord shall have the following
rights:

          (a) to move the location of the parking areas and change the layout
of the parking spaces therein, provided that no change in the layout of parking
spaces shall result in any discrimination against Tenant and no moving of the
location of the parking areas will result in the parking being materially less
convenient to Tenant;

          (b) to require Tenant to reserve or otherwise identify Tenant's
parking spaces or to require Tenant's employees to identify their vehicles in a
manner reasonably determined by Landlord or Landlord's parking operator.
Landlord may require that Tenant's employees identify their vehicles with
stickers provided by Landlord;

          (c) to tow unidentified or unmarked visitor or employee cars and to
tow marked cars of Tenant's employees and/or visitors in the event that Tenant's
employees or visitors are using more than Tenant's designated number of parking
spaces, provided Landlord shall endeavor to notify Tenant (which notice may be
verbal) before towing any cars.

          (d) to license, franchise or otherwise contract with an independent
third party parking garage operator for the operation of the below grade parking
and/or the Parking Structure, in which case the rights, obligations and duties
of Landlord hereunder shall apply to such operator.

     8.4 Tenant shall have the following responsibilities and obligations
throughout the Term of this Lease:

          (a) to insure that at all times Tenant's employees and visitors do
not use more parking spaces than Tenant's Parking Allocation, so as to avoid use
of parking spaces allocated to other tenants and their visitors at the Project,
and in connection therewith, if Landlord, in its reasonable opinion, determines
that Tenant has not allocated enough of Tenant's Parking Allocation to visitor
parking, then Landlord may require Tenant to reallocate Tenant's Parking between
its employees and its visitors to increase the portion of Tenant's Parking
Allocation that is allocated to visitor parking; and

          (b) to comply in all respects with the reasonable rules and
regulations with regard to the parking system established by Landlord or the
Parking operator, as the same may be modified from time to time.

                              ARTICLE 9

                            QUIET ENJOYMENT

     9.1 If, and so long as, Tenant keeps and performs each and every
obligation to be performed by Tenant under this Lease, then Tenant shall have
the right to peaceably and quietly enjoy the Demised Premises, subject, however,
to the terms and provisions of this Lease, including Article 10.

                              ARTICLE 10

                             SUBORDINATION

     10.1 Subject to Tenant receiving a Non-Disturbance Agreement (defined
below), this Lease is and shall be subject and subordinate to all ground or
underlying leases which now or hereafter affect either or both of the Land and
the Building, to all mortgages which now or hereafter affect such leases or
either or both of the Land and the Building, and to all renewals, modifications,
replacements and extensions of any thereof. The provisions of this Section 10.1
shall be self-operative and no further instrument of subordination shall be
required. In confirmation of that subordination, Tenant shall promptly execute
and deliver at its own cost and expense any instrument, in recordable form if
required, that Landlord, the lessor of the ground or underlying lease or the
holder of any such mortgage or any of their respective successors in interest
request to evidence the subordination. Landlord shall obtain for Tenant, from
any current or future ground lessor or mortgagee of the Project, an agreement (a
"Non-Disturbance Agreement") that provides, among other things, that if any such
party forecloses, takes title by deed in lieu of foreclosure or otherwise
exercises its rights under a mortgage, or if a ground lessor terminates or
otherwise exercises its rights under such ground lease, as the case may be (or
any party acquires landlord's interest in this Lease), then as long as Tenant is
not in default hereunder beyond any applicable cure period (a) Tenant shall not
be named in any foreclosure action, (b) Tenant's occupancy of the Demised
Premises shall not be disturbed by the termination of any ground lease or the
foreclosure of any mortgage, (c) the foreclosure of a mortgage, the termination
of any ground lease, the institution of any suit, action, summary or other
proceeding against the Landlord, or any successor to the Landlord, or any
foreclosure brought by any mortgagee to recover possession of the Demised
Premises, shall not, by operation of law or otherwise, result in the
cancellation or termination of the Lease and (d) the foreclosing mortgagee or
holder of the ground lease that is terminated shall succeed to the position of
Landlord under this Lease and Tenant shall not be disturbed in its possession

                                 15
<PAGE>

of the Demised Premises for any reason other than one which would entitle the
Landlord to terminate this Lease under its terms.

     10.2 In the event of a termination of any ground or underlying lease, or
if the interest of Landlord under this Lease is transferred by reason of, or is
assigned in lieu of, foreclosure or other proceedings for enforcement of any
mortgage, or if the holder of any mortgage acquires a lease in substitution for
its mortgage, then Tenant will, if requested in writing by the lessor under such
ground or underlying lease or such mortgagee or purchaser, assignee or lessee,
as the case may be (each of which is referred to as "Purchaser" for purposes of
this Section 10.2) (i) attorn to the Purchaser and will perform for the
Purchaser's benefit all the provisions of this Lease to be performed by Tenant
with the same force and effect as if the Purchaser were the landlord originally
named in this Lease, or (ii) if the Purchaser alternatively requests, enter into
a new lease with the Purchaser as landlord, for the remaining Term on the same
terms and conditions. The foregoing provisions of clause (i) of this Section
10.2 shall enure to the benefit of the Purchaser, shall be self-operative if the
Purchaser elects to make such request, and no further instrument shall be
required to give effect to those provisions. Upon demand of the Purchaser,
Tenant will execute, from time to time, instruments in confirmation of the
foregoing provisions of this Section 10.2, satisfactory to the Purchaser,
acknowledging such attornment and setting forth the terms and conditions of its
tenancy.

     10.3 Anything contained in this Article 10 to the contrary
notwithstanding, under no circumstances shall the Purchaser, whether or not it
shall have succeeded to the interests of Landlord under this Lease, be:

          (a) liable for any act, omission or default of any prior landlord
except for any defaults continuing after such Purchaser shall become Tenant's
landlord and then only with respect to the portion of such default occurring
after such time; or

          (b) subject to any offsets, claims or defenses which Tenant might
have against any prior landlord, except for any abatements expressly provided
for in this Lease and provided that if, at the time that a Purchaser succeeds to
the interests of Landlord under this Lease, Tenant has outstanding claims
relating to the performance of Landlord's Work or the payment of the Tenant
Improvement Allowance of which Tenant provides the Purchaser with written notice
within thirty (30) days after Tenant receives written notice of the fact that
the Purchaser has succeeded to the interests of Landlord under this Lease, and
if the Purchaser does not either satisfy such claims or successfully dispute
such claims, then Tenant shall have the right to terminate this Lease, by
written notice to the Purchaser within thirty (30) days after the later of (i)
the date such claim is presented to the Purchaser and the Purchaser has not
indicated in writing that it will satisfy the claims, or (ii) the date on which
any dispute relating to the claims is resolved in favor of Tenant (unless,
within said thirty (30) day period, the Purchaser notifies Tenant, in writing,
that it will satisfy the claims); or

          (c) bound by any rent or additional rent which Tenant might have
paid to any prior landlord for more than one month in advance or for more than
six months in advance where such rent payments are payable at intervals of more
than one month; or

          (d) bound by any modification amendment of the Lease which adversely
affects the Purchaser, made without the Purchaser's prior approval, but only if
the Purchaser held its interest in the Building at the time of such modification
or amendment, and Tenant has notice of such Purchaser.

     10.4 If, in connection with the financing of the Land and/or the Building,
the holder of any mortgage or any potential mortgagee requests reasonable
modifications be made in this Lease as a condition to making the financing or
approving this Lease, then Tenant shall not unreasonably withhold, delay or
defer making such modifications, if those modifications do not increase the
Annual Net Rent and Additional Rent or otherwise materially increase Tenant's
obligations under this Lease.

                              ARTICLE 11

                                 USE

     11.1 The Demised Premises shall be used as and for the following, but for
no other purposes: general and executive offices.

     11.2 Tenant shall not (a) use or permit the use of the Demised Premises or
any part thereof in any way which would violate this Lease or for any unlawful
purposes or in any unlawful manner, or (b) suffer or permit the Demised Premises
or any part thereof to be used in any manner or anything to be done or anything
to be brought into or kept in the Demised Premises which, in the reasonable
judgment of Landlord, impairs or tends to impair or interfere with (i) the
character, reputation or appearance of the Building as a high quality office
building or the Complex as a high quality office park, or (ii) any of the
Building services or the proper and economic heating, cleaning, air-conditioning
or other servicing of the Building or the Demised Premises, or (iii) the use of
any of the other areas of the Building by, or occasion discomfort, inconvenience
or

                                 16
<PAGE>

annoyance to, any of the other tenants or occupants of the Building.

     11.3 If during the Term any governmental license or permit is required for
the proper and lawful use of the Demised Premises for the conduct of Tenant's
business, and if the failure to secure the license or permit would in any way
affect Landlord, then Tenant, at its expense, shall procure and thereafter
maintain such license or permit and supply a copy thereof to Landlord. Tenant,
at its expense, shall at all times comply with the terms and conditions of each
such license or permit.

     11.4 No portion of the Demised Premises shall be used as, or for, the
following: a public stenographer or typist, barber shop, travel agency for the
provision of services for persons other than Tenant and Tenant's employees,
beauty or manicure shop, telephone or telegraph agency, telephone or secretarial
service, messenger service, employment agency, public finance (personal loan)
business, restaurant or bar, commercial document reproduction or offset printing
service, vending machines, gambling or gaming activities, the possession,
storage, manufacture or sale of alcohol, drugs or narcotics, retail, wholesale
or discount shop for sale of merchandise, retail service shop, school or
classroom, conduct of a public auction, rendition of medical, dental or other
diagnostic or therapeutic services, the offices or business of governmental or
quasi-governmental bureau, department or agency, foreign or domestic, including
an autonomous governmental corporation or trade mission, or for the conduct of
any business or occupation which predominantly involves direct patronage of the
general public. No portion of the Demised Premises shall be used for any purpose
which conflicts with an exclusive use granted by Landlord to another tenant.
except to the extent that such use by Tenant is authorized by Section 5.1.
Nothing herein shall prevent Tenant from possessing and serving alcoholic
beverages at its special functions and parties.

                              ARTICLE 12

                      ALTERATIONS AND INSTALLATIONS

     12.1 Tenant shall make no alteration, installation, addition or
improvement in or to the Demised Premises (any one or more of which is referred
to as "Alterations"), except upon satisfaction of all of the following
conditions:

          (a) Tenant shall submit to Landlord and Landlord shall have approved
(i) comprehensive plans and specifications for the entire Alterations (the
"Alteration Plans"), and (ii) a list of architects, engineers, contractors,
subcontractors and mechanics (any one or more of which is referred to as the
"Contractors") to perform the work in connection with the Alterations (the
"Work"), provided that Tenant shall use architects and engineers designated by
Landlord for any work involving or affecting the structure of the Building or
any Building systems. Landlord shall not unreasonably withhold its consent to
Alteration Plans that do not affect the structure of the Building, the Building
systems or the exterior of the Building and Landlord's consent shall not be
required for purely cosmetic Alterations (such as paint and carpet) that are not
visible from outside of the Building or from any of the common areas of the
Building. If Landlord shall fail to respond with Landlord's approval or
disapproval (with detailed comments thereon explaining the reasons for any
disapproval) to Tenant's written request for approval of any Alteration (an
"Alteration Request") within fifteen (15) business days after receipt of such
Alteration Request (twenty (20) business days if the Alterations would affect
the structure of the Building or the Building systems), then such approval shall
be deemed granted.

          (b) Tenant shall pay all costs of and related to the Alterations.

          (c) As the work on an Alteration progresses, Tenant shall furnish
Landlord with (i) evidence of payment of the first requisition from its
Contractor, (ii) with respect to each requisition thereafter, with partial
waivers of mechanics' liens from all of the Contractors waiving their respective
rights to file mechanics' liens against the Building and the Land to the extent
of payments received under the immediately preceding requisition (or, if the
foregoing is not permitted by law, evidence of payment through the immediately
preceding requisition), and (iii) all required permits from government bodies.

          (d) Tenant shall reimburse Landlord for all reasonable third party
costs and expenses that are incurred by Landlord in connection with Landlord's
review of the Alteration Plans.

          (e) Notwithstanding anything to the contrary provided in this
Section 12.1, all Contractors used by Tenant for any Alterations shall be
subject to Landlord's prior written approval, which approval shall not be
unreasonably withheld.

          (f) The approval by Landlord of the Alteration Plans or the
Contractors, shall not constitute any consent or agreement by Landlord that (x)
the Alteration Plans and the Alterations will comply with Law or (y) the
Contractors so approved are reputable, competent, or will satisfactorily perform
their obligations to Tenant.

                                 17
<PAGE>

          (g) All of the Work shall be done in a good and workmanlike manner.

          (h) Notwithstanding that Landlord has approved a Contractor, Tenant
shall not employ any Contractor unless the Contractor has agreed in writing that
it will employ only such labor as will not result in jurisdictional disputes or
strikes or result in disharmony with other workers employed in the Building.

          (i) Tenant shall pay to each of the Contractors, as the Work
progresses, the entire cost of supplying the materials and performing the work.

          (j) All Alterations shall be made in compliance with all Laws and
with the rules, orders, regulations and requirements of the New York Board of
Fire Underwriters and any similar body.

          (k) All of the Work shall be done at such times and in such manner
as will not unreasonably interfere with or disturb other tenants or occupants of
the Building.

          (l) Landlord and its representatives shall have the right, but shall
have no obligation, to inspect the progress of the Work and the completed
Alterations at all reasonable times, and Tenant shall permit Landlord to make
such inspections; but any such inspection shall not obligate Landlord to notify
Tenant of any failure by Tenant to comply with the requirements of this Lease or
constitute an approval or waiver by Landlord of any condition or of any failure
by Tenant to perform its obligations under this Lease.

          (m) Tenant will pay to Landlord (i) an amount that is equal to ten
percent (10%) of the cost of the Alterations costing more than $25,000.00 to
compensate Landlord for Landlord's indirect costs, field supervision and
coordination in connection with the Work, (ii) all reasonable third party costs
incurred by Landlord in connection with Landlord's supervision and coordination
of the Work; and (iii) all direct costs incurred by Landlord related to the Work
including operation of the freight elevator, supplemental cleaning and refuse
removal.

          (n) Before commencing the Alterations, Tenant shall furnish to
Landlord certificates evidencing the existence of:

               (i) Worker's compensation insurance covering all persons
employed for the Work with statutorily required limits.

               (ii) Comprehensive general liability and property damage
insurance (which shall be in addition to insurance required to be provided under
Article 15 of this Lease) naming Landlord, its designees and Tenant as insured,
as their interests may appear, with coverage in such amounts as Landlord may
require (which requirement shall be consistent with business practice in the
real estate business in the lower Fairfield County Area).

               (iii) Any other insurance which Landlord reasonably requests.

     Before commencing the Alterations, Tenant shall furnish evidence
satisfactory to Landlord that Tenant has notified all Contractors that Landlord
will not be liable for any labor or materials furnished or to be furnished to
Tenant upon credit, and that the Contractor may not impose any mechanic's or
other lien for any labor or materials on any interest or estate of Landlord in
and to the Demised Premises or the Building.

     12.2 Within 30 days after any mechanic's lien is filed against the Demised
Premises or the Building for work claimed to have been done or materials claimed
to have been furnished to Tenant, Tenant will discharge such lien, at Tenant's
expense, by payment or filing of a bond required by law or otherwise. Tenant
shall provide satisfactory proof of such discharge to Landlord within that
30-day period; and if Tenant fails to do so then Landlord may, but shall not be
obligated to, discharge the mechanic's lien by bond or payment, or otherwise,
and the cost of the discharge will be paid by Tenant to Landlord upon receipt of
Landlord's invoice therefor.

     12.3 If any notice of violation is placed against the Building and that
violation arises out of the Alterations, then the violation shall be cured by
Tenant immediately, and if Tenant fails to do so, then Landlord may, but shall
not be obligated to, cure the violation by whatever action Landlord deems to be
reasonably necessary, including the removal of all or any part of the
Alterations, and the cost of the action taken by Landlord shall be paid by
Tenant to Landlord upon receipt of Landlord's invoice therefor.

     12.4 All Alterations made and installed by Landlord at Landlord's expense
shall be Landlord's property and shall remain upon and be surrendered with the
Demised Premises as part thereof at the Expiration Date or upon termination of
this Lease due to Tenant's default (both, a "Termination").

                                 18
<PAGE>

     12.5 All Alterations made and installed or paid for by Tenant, which are
of a permanent nature and which cannot be removed without damage to the Demised
Premises or the Building, shall become and be the property of Landlord and shall
remain upon and be surrendered with the Demised Premises at the Termination,
except that if Landlord, at the time that it approves any Alterations, notifies
Tenant that it must remove any Alterations at the expiration or earlier
termination of this Lease, then Tenant shall, at Tenant's own expense, remove
the Alterations in accordance with Landlord's request and restore the Demised
Premises to its original condition, ordinary wear and tear and casualty
excepted. Landlord agrees, however, that to the extent that Landlord does not
require Tenant to remove any portion of the Tenant Improvements upon such
expiration or sooner termination, it will not require Tenant to remove
Alterations thereafter made to the extent such later Alterations are not
different in type or scope than that portions of the Tenant Improvements that
Landlord did not require Tenant to remove. In connection therewith, Landlord
agrees that as part of its approval of Tenant's plans for the Tenant
Improvements, it will not require Tenant to remove anything that would be done
as part of a standard office build-out. For purposes hereof, a standard office
build-out shall consist of the following:

          (a) Drywall interior partitions

          (b) Entrance, exit and interior doors and hardware

          (c) Suspension ceiling

          (d) Fluorescent light fixtures and exit lights

          (e) Carpet and/or vinyl tile

          (f) Electrical wiring and equipment for normal office lighting and
receptacles

          (g) Building standard fire alarm wiring and equipment and smoke
detectors

          (h) Building standard sprinkler piping and heads

          (i) Distribution of heat, ventilation and air conditioning

          (j) Building standard window treatments.

          (k) Standard flooring (i.e. other than specialty floorings such as
raised computer flooring); hardwood flooring shall not be deemed to be specialty
flooring.

     12.6 Subject to Landlord's rights, if any, under Article 22 hereof, all
trade fixtures, movable office furniture and equipment and any other movable
property that has been furnished or paid for by Tenant ("Tenant's Personal
Property") shall remain Tenant's property; and Tenant shall remove Tenant's
Personal Property before any Termination.

     12.7 If any of the Alterations or Tenant's Personal Property which Tenant
has the right or obligation to remove or which Landlord has requested Tenant to
remove, as provided in Sections 12.5 and 12.6 ("Removable Property") are not
removed within the time periods required by Sections 12.5 and 12.6, then the
Removable Property shall be deemed abandoned. Landlord, at its election, may
either retain some or all of the Removable Property or remove some or all of the
Removable Property and dispose of the Removable Property without accountability
to Tenant and Tenant shall pay to Landlord upon receipt of Landlord's invoice
therefor, all costs incurred by Landlord in good faith in removing, storing or
disposing of the Removable Property and, in the case of Removable Property which
cannot be removed without damage to the Demised Premises or the Building, the
costs of restoring the Demised Premises or the Building. Tenant's obligations
under Sections 12.5 and 12.6 and this Section 12.7 shall survive a Termination.
The foregoing provisions of this Section 12.7 shall be without prejudice to any
election by Landlord that Tenant's failure to remove Removable Property
constitutes a holding over by Tenant pursuant to Section 29.2.

     12.8 Tenant shall keep records, including the Alteration Plans, copies of
contracts, invoices, evidences of payment and all other records normally
maintained in the real estate business relating to all Alterations and Work and
of the cost thereof, and shall provide any and all of those records to Landlord
at any time and from time to time at Landlord's request, for any purpose.

     12.9 Tenant shall not place a load upon any floor of the Demised Premises
exceeding a live load of 100 pounds per square foot of floor space (80+20).

                                 19
<PAGE>

     12.10 No property of any kind shall be brought upon or kept by Tenant in
the Demised Premises other than as an incident to the reasonable use of the
Demised Premises for the purposes permitted by this Lease. Tenant shall not move
any safe, heavy equipment, freight, bulky matter or bulky fixtures ("Heavy
Objects") into or out of the Building or change the location thereof in the
Demised Premises without Landlord's consent. If the moving of any Heavy Objects
requires special handling with rigging equipment instead of by use of the
freight elevator, Tenant will employ only persons holding a Master Riggers
license to do the moving, and all work in connection therewith shall comply with
applicable Law.

     12.11 Tenant will, within twenty-four (24) hours after notice from
Landlord, install proper vibration eliminators on all business machines and
mechanical equipment which Tenant is responsible for maintaining in such manner
as will prevent any perceptible vibration, provided that if any such machines or
equipment is materially interfering with other tenants in the Building, then
Tenant shall turn off such machines or equipment immediately after notice from
Landlord.

     12.12 Tenant and Tenant's contractors will abide by Landlord's rules and
regulations governing Alterations to be performed in the Building, which rules
and regulations shall be uniformly applied throughout the Building.

     12.13 Upon completion of any Alterations, Tenant shall furnish Landlord,
with three (3) copies each of architectural and mechanical As-Built drawings.

                              ARTICLE 13

                               REPAIRS

     13.1 (a) Tenant shall take good care of the Demised Premises and the
fixtures, appurtenances and equipment therein (collectively, "Fixtures") and at
its sole cost and expense make all repairs thereto as and when needed to
preserve them in good working order and condition. All damage or injury to the
Demised Premises and to its Fixtures which is caused by or results from (i)
moving Tenant's property in or out of the Building, or (ii) the installation or
removal of Tenant's furniture, Fixtures or other property, or (iii) the
carelessness, omission, neglect, negligence, or improper conduct of Tenant or
its employees, contractors, agents, licensees or invitees, shall be repaired,
restored or replaced promptly by Tenant at its expense to the reasonable
satisfaction of Landlord. Such repair, restoration and replacement shall be in
quality and class equal to the original work or installation. If Tenant fails to
make any such repair, restoration or replacement within ten (10) days after
notice from Landlord (except in an emergency), then the repair, restoration and
replacement may be made by Landlord at the expense of Tenant.

          (b) Neither the exterior walls of the Building nor the windows and
the exterior areas created by the Building set backs are part of the Demised
Premises and Landlord reserves all rights to those walls, windows and setbacks,
including the right to enter and store window washing and other supplies and
equipment on the setback areas.

     13.2 Landlord, as part of Expenses, will perform all necessary repairs and
maintenance of all structural elements of the Building, all mechanical systems
(including all HVAC and plumbing systems) serving the Demised Premises to the
extent that the same are outside of the Demised Premises, all walls and floors
outside of the Demised Premises, all common areas of the Building and all
parking facilities, necessary to maintain the same in first class condition.
Landlord will commence repairs within a reasonable period of time after it is
notified of the necessity of such repairs and shall diligently prosecute such
repairs to completion. Notwithstanding the above, Landlord shall not be
obligated to pay, as part of Expenses, and Tenant shall pay to Landlord the
entire cost of all maintenance, service and repairs performed by Landlord with
respect to the Building systems that are required to repair damage or injury due
to the carelessness, omission, neglect, negligence or improper conduct of
Tenant, its employees, contractors, agents, licensees or invitees.

     13.3 There shall be no allowance to Tenant for diminution of rental value
and no liability on the part of the Landlord by reason of inconvenience,
annoyance, interruption or injury to business arising from the making or failing
to make by Landlord of any repairs, alterations, additions or improvements in or
to any portion of the Building or the Demised Premises or in or to fixtures,
appurtenances or equipment thereof.

                              ARTICLE 14

                          REQUIREMENTS OF LAW

     14.1 Tenant, at Tenant's expense, shall comply with all Laws which impose
any violations, order or duty upon Landlord or Tenant with respect to the
Demised Premises, or the use or occupation thereof.

                                 20
<PAGE>

     14.2 Notwithstanding the provisions of Section 14.1, Tenant, at its
expense, in its name (and whenever necessary in Landlord's name) may contest, in
any manner permitted by law (including appeals to a Court, or governmental
department or authority having jurisdiction in the matter), the validity or the
enforcement of any Law with which Tenant is required to comply pursuant to the
Lease, and may defer compliance therewith (collectively, the "Contest") if:

          (a) The Contest does not subject Landlord to the payment of any fine
or penalty or to criminal prosecution or subject either or both of the Land and
Building to lien or sale;

          (b) The Contest does not result in a violation of any mortgage or of
any ground or underlying lease;

          (c) Before commencing the Contest, Tenant has delivered to Landlord
a surety bond issued by a surety company of recognized responsibility, or other
security satisfactory to Landlord, indemnifying and protecting Landlord against
any liability, loss or injury by reason of the Contest; and

          (d) Tenant shall promptly and diligently prosecute the Contest and
keep Landlord advised at all times as to the status of the Contest.

Landlord, without liability to it and at Tenant's expense (including the payment
of Landlord's attorneys, fees), shall cooperate with Tenant and execute any
documents or pleadings required for the Contest, if Landlord is reasonably
satisfied that the facts set forth in any such documents or pleadings are true
and complete and not misleading.

     14.3 Except to the extent of Tenant's obligation to comply with laws under
this Article 14 or in connection with Tenant's Alterations, Landlord shall
comply with all Laws affecting the Land and Building.

                              ARTICLE 15

                INSURANCE, LOSS, INDEMNIFICATION, LIABILITY

     15.1 Tenant shall not do or permit to be done any act or thing upon the
Demised Premises which will invalidate Landlord's insurance policies covering
the Building or Fixtures and property therein, or which would increase the rate
of fire insurance applicable to the Building to an amount higher than it
otherwise would be; and Tenant shall neither do nor permit to be done any act or
thing upon the Demised Premises which subjects Landlord to any liability or
responsibility for injury to any person or persons or to property by reason of
any business or operation being carried on within the Demised Premises. Tenant,
at its expense, shall comply with all rules, orders, regulations and
requirements of any regulatory authority, and of the reasonable rules, orders,
regulations and requirements of the engineers of any of the Landlord's insurance
carriers, relating to the Demised Premises.

     15.2 If, as a result of any act or omission by Tenant, the rate of fire
insurance applicable to the Building in computing fire insurance premiums is
increased over the rate that otherwise would apply, then in addition to any
other remedies which Landlord has for any such act or omission or violation of
this Lease, Tenant shall reimburse Landlord for all increases in Landlord's fire
insurance premiums that result from the increase in the rate; such reimbursement
to be made within fifteen (15) days after receipt of an invoice from Landlord
together with evidence of payment. In any action or proceeding in which Landlord
and Tenant are parties, a schedule or `makeup' of rates for the Building or
Demised Premises issued by the body making fire insurance rates for the Building
or Demised Premises shall be presumptive evidence of the facts stated in the
schedule or `makeup' and of the several items and charges in the fire insurance
rate then applicable to the Building or Demised Premises. Landlord anticipates
that use of the Demised Premises for general office uses will not increase
Landlord's insurance premiums.

     15.3 Neither Landlord nor its agents, employees or invitees shall be
liable for any injury or damage to persons or property resulting from fire,
explosion, falling matter, steam, gas, electricity, water, rain or snow or leaks
from any part of the Building, or from the pipes, appliances or plumbing works
or from the root, street or subsurface or from any other place or from dampness
or by any other cause of whatsoever nature, unless the injury or damage is
proximately caused by or due to the gross negligence of Landlord, its agents,
employees or invitees.

     15.4 Neither Landlord nor its agents, employees or invitees shall be
liable for any damages which Tenant sustains, if any window of the Demised
Premises is broken or temporarily (or if a window on a lot line, permanently)
closed, darkened or bricked up for any reason whatsoever, excluding only
Landlord's unreasonable and arbitrary acts; and Tenant shall not be entitled to
any compensation or abatement of Total Rents or to any release' from any of
Tenant's obligations under this Lease, nor shall the same constitute an
eviction.

     15.5 Tenant shall indemnify, defend and hold Landlord, its agents,
employees and invitees harmless from

                                 21
<PAGE>

and against any and all liability, claims, suits, demands, judgments, costs,
damages, fines, interest and expenses (including reasonable attorneys' fees and
disbursements) incurred or suffered by Landlord, its agents, employees or
invitees by reason of any breach, violation or nonperformance by Tenant, or its
agents, employees, licensees, invitees or contractors of any covenant or
provision of this Lease, or by reason of any damage to persons or property
caused by moving property of or for Tenant in or out of the Building, or by the
installation or removal of furniture or other property of or for Tenant or by
reason of or arising out of the acts, omissions, negligence or improper conduct
of Tenant, or its agents, employees, licensees, invitees or contractors in the
preparation, alteration, use or occupancy of the Demised Premises. Subject to
the provisions of Section 14.2, Tenant shall have the right, at Tenant's
expense, to conduct, with Landlord's participation, the defense of any action or
proceeding brought against Landlord, its agents, employees or invitees and in
negotiations for settlement thereof if pursuant to this Section 15.5, Tenant
would be obligated to reimburse Landlord for costs, damages, fines, interest or
expenses incurred or suffered by Landlord, with counsel that is reasonably
acceptable to Landlord, provided that Landlord shall have the right to require
Tenant to accept any reasonable settlement offer in connection with any such
actions or proceeding.

     15.6 Landlord shall indemnify, defend and hold Tenant, its agents,
employees and invitees harmless from and against any and all liability, claims,
suits, damages, judgments, costs, damages, fines, interest and expenses
(including reasonable attorneys' fees and disbursements) incurred or suffered by
Tenant, its agents, employees or invitees by reason of any breach, violation or
nonperformance by Landlord, or its agents, employees, licensees, invitees or
contractors of any covenant or provision of this Lease, or by reason of any
damage to persons or property caused by moving property of or for Landlord in or
out of the Building, or by the installation or removal of furniture or other
property of or for Landlord or by reason of or arising out of the acts,
omissions, negligence or improper conduct of Landlord, or its agents, employees,
licensees, invitees or contractors in the alteration or use of the common areas
of the Building. After receipt of written notice from Tenant of such obligation
to indemnify, Landlord shall have the right, at Landlord's expense, to conduct,
with Tenant's participation, the defense of any action or proceeding brought
against Tenant, its agents, employees or invitees and any negotiations for
settlement thereof if pursuant to this Section 15.6, Landlord would be obligated
to reimburse Tenant for reasonable costs, damages, fines, interest or expenses
incurred or suffered by Tenant, with counsel that is reasonably acceptable to
Tenant, provided that Tenant shall have the right to require Landlord to accept
any reasonable settlement offer in connection with any such action or
proceeding.

     15.7 Tenant shall notify Landlord of all fires and accidents in the
Demised Premises promptly after Tenant is aware of such fire or accident.

     15.8 Tenant will look solely to Landlord's estate and interest in the
Project, or the lease of the Project, and the Demised Premises, for the
satisfaction of any right or remedy of Tenant for the collection of a judgment
(or other judicial process) requiring the payment of money by Landlord, in the
event of any liability by Landlord, and no other property or asset of Landlord
and no property of any owner, partner, shareholder or principal of Landlord
shall be subject to levy, execution, attachment, or other enforcement procedure
for the satisfaction of Tenant's remedies under or with respect to this Lease,
the relationship of Landlord and Tenant hereunder, or Tenant's use and occupancy
of the Demised Premises, or any other liability of Landlord to Tenant.

     15.9 (a) If obtainable at any time during the Term, Landlord will include
in its fire insurance policies, clauses pursuant to which the companies that
issue the policies either or both (i) waive all rights of subrogation against
Tenant with respect to losses payable under those policies, and (ii) agree that
those policies shall not be invalidated if the insured party waives in writing
before a loss occurs any and all right of recovery against any party for losses
covered by those policies. If any additional premium is charged for either or
both of the clauses, then Landlord shall notify Tenant of that additional
premium and it, within 10 days after receiving that notice, Tenant does not
agree to pay that additional premium upon receipt of Landlord's invoice
therefor, or if Tenant does so agree, but thereafter fails to pay that
additional premium, then Landlord shall be released from the obligation to
obtain those clauses.

          (b) Tenant will obtain and maintain during the entire Term, a fire
insurance policy or policies covering the full replacement value of Tenant's
Personal Property, Tenant's Alterations and of all Fixtures and shall include in
each such policy, if obtainable at any time during the Term, clauses pursuant to
which the company that issues that policy either or both (i) waives all rights
of subrogation against Landlord and any tenants of space in the Building with
respect to losses payable under that policy, and (ii) agrees that the policy
will not be invalidated if the insured waives in writing before a loss occurs
any or all right of recovery against any party for loss covered by that policy.
If any additional premium is charged for either or both of the clauses, then
Tenant shall notify Landlord of that additional premium and, if within 30 days
after receiving that notice, Landlord does not agree to pay that additional
premium upon receipt of Tenant's invoice therefor, or if Landlord does so agree,
but thereafter fails to pay that additional premium, then Tenant shall be
released from the obligation to obtain those clauses.

          (c) Unless Landlord's right of full recovery of the coverage under
the policy or policies

                                 22
<PAGE>

described in Section 15.9(a) is adversely affected or prejudiced thereby,
Landlord waives any and all rights of recovery which it might otherwise have
against Tenant, its servants, agents and employees, in respect of loss or damage
occurring to the Building and the fixtures, appurtenances and equipment therein,
to the extent that the loss or damage is covered by Landlord's insurance,
notwithstanding that the loss or damage results from the negligence or fault of
Tenant, its servants, agents or employees. Unless Tenant's right of full
recovery of the coverage under the policy or policies described in Section
15.9(b) is adversely affected or prejudiced thereby, Tenant waives any and all
rights of recovery which it might otherwise have against Landlord, Landlord's
servants, agents and employees, and against every other tenant in the Building
which has executed a waiver similar in substance to those described in this
Section 15.9 in respect of loss or damage to Tenant's Personal Property,
Tenant's Alterations or to any Fixtures in the Demised Premises, to the extent
that the loss or damage is covered by Tenant's insurance, notwithstanding that
the loss or damage results from the negligence or fault of Landlord, its
servants, agents or employees or of such other tenant and its servants, agents
or employees.

          (d) Each of Landlord and Tenant will advise the other promptly (i)
if either or both of the clauses to be included in their respective insurance
policies pursuant to Sections 15.9(a) and 15.9(b) cannot be obtained, (ii) if
any such clause is obtained and thereafter is either canceled or an increased
premium is charged for the clause, (iii) if the terms of any policy which would
affect any such clause are changed, (iv) if any clause that previously was not
obtainable becomes obtainable and/or (v) if any clause that previously was
obtainable at an additional premium becomes obtainable at a lower premium.

     15.10 Tenant will provide on or before the Commencement Date and keep in
force during the Term for the benefit of Landlord and Tenant a commercial
general liability insurance policy, written on an occurrence basis, with limits
of not less than Five Million Dollars and 00/100 ($5,000,000.00) combined single
limit coverage, protecting Landlord and Tenant against any liability whatsoever
occasioned by any occurrence on or about the Demised Premises or any
appurtenances thereto, together with worker's compensation insurance to the
extent required by law, and in the event a motor vehicle is to be used by Tenant
in connection with its business operation from the Demised Premises,
Comprehensive Automobile Liability Insurance coverage with limits of not less
than Five Million Dollars ($5,000,000.00) combined single limit coverage against
bodily injury liability and property damage liability arising out of the use by
or on behalf of Tenant, its agents and employees in connection with this Lease,
of any owned, non-owned or hired motor vehicles. Such policies are to be written
by good and solvent insurance companies reasonably satisfactory to Landlord
(rated A or better and Class X or higher by A.M. Best Company, or the equivalent
if Tenant's insurer is not rated by A.M. Best Company) and shall be in such
limits as Landlord may reasonably require. Such policy shall name Landlord,
Landlord's first mortgagee, Landlord's managing agent and such other parties as
Landlord shall require in writing from time to time as additional insureds. As
of the date of this Lease, Landlord reasonably requires limits of liability
thereunder of not less than the amount of Five Million Dollars ($5,000,000) for
bodily injury and property damage, combined single limit. Such insurance may be
carried under a blanket policy covering the Demised Premises and other locations
of Tenant if the required amounts of coverage for the Demised Premises are not
affected as a result of a claim involving another location. Before the date on
which such insurance first is required to be carried by Tenant and thereafter,
at least 15 days before the effective date of renewal of any such policy, Tenant
will deliver to Landlord a certificate evidencing such insurance. The
certificate shall contain an endorsement that such insurance may not be canceled
or materially modified except upon thirty days' notice to Landlord.

     15.11 Landlord shall obtain and keep in full force and effect throughout
the Term (a) "all risk" insurance against loss or damage by fire and other
casualty to the Building, including Alterations, in an amount equal to 100% of
the replacement costs thereof, and (b) a policy of commercial general liability
and property damage insurance on an occurrence basis, with a broad form
contractual liability endorsement, with limits of not less than $5,000,000.00
combined single limit.

                              ARTICLE 16

                      DAMAGE BY FIRE OR OTHER CAUSE

     16.1 If (a) either or both of the Building and the Demised Premises are
partially or totally damaged or destroyed by fire or other cause (a "Casualty"),
whether or not the damage or destruction (either or both, the "Damage") resulted
from the fault or neglect of Tenant, or its employees, agents, invitees or
contractors, and (b) the amount of the proceeds of insurance that is made
available to Landlord for the purpose of repairing the Damage is sufficient to
pay the entire cost of repairing the Damage, then (if this Lease has not been
terminated as is provided in this Article 16) Landlord shall repair the Damage
at Landlord's expense (without limiting Landlord's rights under any other
provision of this Lease), provided that Landlord shall not be required to repair
or replace any of Tenant's Personal Property or Fixtures.

     16.2 (a) If either or both of the Building and the Demised Premises are
partially damaged or partially destroyed by a Casualty, then the Total Rents
shall be abated to the extent that the Demised Premises have been rendered and
remain untenantable during the period from the date of the Damage to the date on
which the Damage is repaired.

                                 23
<PAGE>

          (b) If the Demised Premises or a major part thereof are totally
(which shall be deemed to include substantially totally) damaged or destroyed or
rendered completely untenantable on account of a Casualty, then the Total Rents
shall abate for the period commencing on the date of the Damage and shall end on
the date on which Landlord has repaired the Damage, to the original condition as
of the Rent Commencement Date, except for reasonable wear and tear and that
Landlord shall not be obligated to restore or replace Tenant's personal
property, except that if Tenant occupies a portion of the Demised Premises
during that period and before the date on which the Demised Premises are made
completely tenantable, then Total Rents allocable to that portion shall be
payable form the date of that occupancy.

          (c) If either or both of the Building and the Demised Premises are
totally damaged or destroyed by a Casualty or if the wing or wings of the
Building in which the Demised Premises are located are so damaged or destroyed
by Casualty (whether or not the Demised Premises are damaged or destroyed) so as
to require a reasonably estimated expenditure for repair or the Damage of more
than 40 percent of the full insurable value of such wing or wings of the
Building immediately prior to the Casualty, then in either such case Landlord
may terminate this Lease by giving notice to Tenant to that effect within 180
days after the date of the Casualty. In such event, this Lease shall terminate
on the tenth day after the giving of the notice and the Total Rents shall be
apportioned as of the effective date of that Termination.

     16.3 Landlord shall not be obligated to pay any damages, compensation or
claim for inconvenience, loss of business or annoyance that arises from any
repair or restoration of any portion of the Demised Premises or of the Building
pursuant to this Article 16 or for any delay in completing repairs or
restoration which arises by reason of adjustment of insurance, labor troubles or
other causes beyond Landlord's reasonable control.

     16.4 Notwithstanding any of the foregoing provisions of this Article 16,
if Landlord or the lessor of any superior lease or the holder of any superior
mortgage is unable to collect all of the proceeds (including rent insurance
proceeds) under policies of insurance covering Damage by a Casualty because of
an illegal act by Tenant or a violation of insurance policy requirements by
Tenant or by any of its employees, agents or contractors, or by reason of
Tenant's failure fully to cooperate with Landlord, the superior lessor or the
superior mortgagee in applying for the insurance proceeds, then in the case of
that inability to collect and without prejudice to any other remedies which may
be available to Landlord against Tenant, Tenant shall pay to Landlord, upon
receipt of Landlord's invoice therefor, an amount that is equal to the amount of
those uncollected insurance proceeds, and there shall be no abatement of Total
Rents until that amount is fully paid by Tenant.

     16.5 (a) If rent on the Demised Premises or any portion thereof is abated
pursuant to Section 16.2 and Tenant does not use the portion of its parking
rights granted hereunder which are allocable to the portion of the Demised
Premises for which rent is abated, the rent for such parking passes shall also
be abated.

          (b) If Damage occurs to any, or all, of the Parking Structure,
Landlord shall repair the Damage with reasonable diligence. Neither Tenant nor
Landlord shall have any rights to terminate this Lease because of Damage which
affects the Parking Structure, provided that in the event of any Damage to the
Parking Structure that has a material adverse affect on Tenant's use and
enjoyment of the Demised Premises, then unless reasonable temporary parking is
provided, Total Rents shall equitably abate during the period from the date of
the Damage to the date on which the Damage that materially and adversely affects
Tenant's use and enjoyment of the Parking Structure is repaired, but only to the
extent, if at all, of rental loss insurance proceeds that Landlord receives with
respect thereto.

     16.6 If Landlord's architects or engineer estimate, in their reasonable
opinion, that the Demised Premises will be untenantable following the date of a
Casualty for a period of eighteen (18) months (which period shall be reduced to
1/2 of the months remaining in the Term if the casualty is in the last two (2)
years of the Term), then Landlord shall provide a copy of that estimate to
Tenant promptly upon its receipt by Landlord, and Tenant may terminate this
Lease by notice to Landlord within thirty (30) days from the date on which
Tenant receives the copy of the estimate.

                              ARTICLE 17

                 ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.

     17.1 (a) Tenant shall not (i) assign or otherwise transfer this Lease or
the term and estate hereby granted (ii) sublet the Demised Premises or any part
thereof or allow the same to be used or occupied by others or in violation of
Article 11, (iii) mortgage, pledge or encumber this Lease or the Demised
Premises or any part thereof in any manner by reason of any act or omission on
the part of Tenant or otherwise (each a "Transfer"); without in each instance
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed. Landlord's consent shall not be
required with respect to any space sharing (i.e. no separate demising of space)
by any company that owns more than 50% of the ownership interests of Tenant or
that is more than 35% owned by PanAmSat Corporation or its parent

                                 24
<PAGE>

corporation.

          (b) For purposes of this Article 17, (i) the transfer of a majority
of the issued and outstanding capital stock of any corporate tenant, or of a
corporate subtenant, or the transfer of a majority of the total interest or of
the general partnership interest in any partnership tenant or subtenant, however
accomplished, whether in a single transaction or in a series of related or
unrelated transactions, or the creation of new stock by which an aggregate of
more than fifty (50%) percent of Tenant's stock shall be vested in a party or
parties who are nonstockholders as of the date hereof, shall be deemed a
Transfer except that the sale of the capital stock of any corporate tenant by
the corporate tenant or by any holder of such stock through the
`over-the-counter market' or through any recognized stock exchange, other than
by holders of such stock who are deemed "insiders" within the meaning of the
Securities Exchange Act of 1934, as amended, shall not be deemed to be a
Transfer, (ii) a takeover agreement of a corporate tenant shall be deemed a
Transfer, (iii) any person or legal representative of Tenant, to whom Tenant's
interest under this Lease passes by operation of law, or otherwise, shall be
bound by the provisions of this Article 17, and (iv) a modification, amendment
or extension of a sublease shall be deemed a Transfer. For the purposes of this
Article 17, Tenant acknowledges that it will be liable to pay to Landlord, upon
demand, Landlord's reasonable attorneys' fees and reasonable out-of-pocket
expenses incurred in connection with reviewing Tenant's request for a Transfer.

     17.2 The provisions of Section 17.1 hereof shall not apply to transactions
with a corporation that is a wholly owned subsidiary of Tenant or with a
corporation into or with which Tenant is merged or consolidated or with an
entity to which substantially all of Tenant's assets are transferred (provided
such merger or transfer of assets is for a good business purpose and not
principally for the purpose of transferring the leasehold estate created hereby,
and provided further, that such corporation or entity has a net worth at least
equal to the net worth of Tenant immediately prior to such merger or transfer)
or, if Tenant is a partnership with a successor partnership, nor shall the
provisions of clauses (a) and (b) of Section 17.1 apply to transactions with an
entity which controls or is controlled by Tenant or is under common control with
Tenant.

     17.3 Any Transfer, whether made with Landlord's consent as required by
Section 17.1 hereof or without Landlord's consent pursuant to Section 17.2
hereof, shall be made only if, and shall not be effective until, the recipient
of a Transfer ("Transferee") executes, acknowledges and delivers to Landlord a
recordable agreement, in form and substance reasonably satisfactory to Landlord,
whereby the Transferee assumes the obligations and performance of this Lease and
agrees to be personally bound by all of the covenants, agreements, terms,
provisions and conditions of this Lease to be performed or observed by Tenant
and whereby the Transferee agrees that the provisions of Section 17.1 shall,
notwithstanding the Transfer, continue to be binding upon it in the future.
Notwithstanding any Transfer, whether or not in violation of the provisions of
this Lease, and notwithstanding the acceptance of Annual Net Rent by Landlord
from a Transferee or any other party, Tenant shall remain fully and primarily
liable for the payment of the Annual Net Rent and Additional Rent due and to
become due under this Lease and for the performance of all of the covenants,
agreements, terms, provisions and conditions of this Lease to be performed or
observed by Tenant.

     17.4 The liability of Tenant for the due performance by Tenant of this
Lease, shall not be discharged, released or impaired in any respect by any
agreement or stipulation made by Landlord with any Transferee, extending the
time of or modifying any of the obligations contained in this Lease, or by any
waiver or failure of Landlord to enforce any of the obligations of this Lease,
and Tenant shall continue to be liable under this Lease. If any such agreement
or modification operates to increase Tenant's obligations under this Lease, the
liability under this Section 17.4 of Tenant (unless Tenant shall have expressly
consented in writing to such agreement or modification), shall continue to be no
greater than if such agreement or modification had not been made. To require
Tenant to meet its obligations as described in this Section 17.4, no demand or
notice of any default other than demands and notices required under this Lease
copies of which Landlord will give to Tenant shall be required, Tenant hereby
waives any such demand or notice.

     17.5 Tenant shall not, without the consent of Landlord (including approval
of the exact wording of any listing or advertisement), list or advertise or
permit to be listed or advertised, or offered to any broker for listing or
advertisement, all or any part of the Demised Premises. In no event shall
Landlord be required to consent to any advertising of the Demised Premises for a
rent that is less than the rent payable under this Lease and in no event shall
any public advertisement of the Demised Premises mention the rental rate. In
addition, Tenant shall not list or advertise the Demised Premises at any time
when Landlord has Competing Space in the Building that is available for lease or
that Landlord has commenced leasing efforts for. "Competing Space" shall mean
any space which has a square foot size that is equal to or larger than 75% of
the square footage of the portion of the Demised Premises that Tenant is
attempting to sublease.

     17.6 If Tenant desires to enter into any Transfer which requires
Landlord's prior consent pursuant to this Article 17, it shall notify Landlord
of such intention before offering the same to any party either directly or
through any broker. In no event may such an offer be made to an occupant of any
part of the Building nor may such an offer be made to any other prospective
Transferee unless, to the best of Tenant's knowledge, the prospective Transferee
has not negotiated with Landlord for space in the Building within the six (6)
month period prior to the time Landlord is first notified of Tenant's intention
to Transfer, provided that such prohibition shall not apply if, at the time
Tenant intends to effect a Transfer, Landlord no longer

                                 25
<PAGE>

has space available in the Building that could satisfy such prospective
Transferee's needs. If a Transfer is thereafter arranged with a permitted
Transferee, Tenant shall, at least thirty (30) days before the proposed date of
consummation thereof, notify Landlord thereof and deliver to Landlord:

               (i) Reasonably detailed information concerning the nature of
the business and the financial status of the proposed Transferee;

               (ii) A copy of the proposed sublease or assignment agreement,
as the case may be, signed by the proposed subtenant or assignee and by Tenant,
which shall contain all the substantive terms of the proposed sublease or
assignment, including, if a sublease is involved, the term, the rent and date of
commencement thereof or, if an assignment is involved, the effective date
thereof and the amount of all consideration and to whom payable; and

               (iii) Any other related information reasonably required by
Landlord.

     17.7 Within the thirty (30) day period described in Section 17.6 hereof,
Landlord shall have the right, exercisable by sending notice to Tenant, to
exercise any of the following rights:

          (a) consent or refuse to consent to the Transfer; provided that if
Landlord does not exercise any of the rights or options set forth in subsections
17.7(b), (c) or (d) below, Landlord agrees not to unreasonably withhold or delay
its consent to any such Transfer;

          (b) in the case of a proposed assignment, cancel this Lease as to
the space proposed to be assigned, in which event such cancellation shall become
effective on the date of the proposed assignment or the date specified in
Landlord's notice (but not to exceed 90 days from the date Landlord exercises
its right to cancel), whichever is later. If such cancellation is only for part
of the Demised Premises, then equitable adjustments shall be made to the Annual
Net Rent and Additional Rent;

          (c) in the case of a proposed subletting for a term which will
expire before the expiration of this Lease, elect to recapture the portion of
the Demised Premises proposed to be sublet for only the term of the proposed
sublet. In such event Tenant's Annual Net Rent and Additional Rent will be
reduced during such period of recapture by the lesser of (i) the same amount as
Tenant would have received from the proposed subtenant, or (ii) the amount of
Tenant's obligations under this Lease for the portion of the space recaptured.
The recapture of the portion of the Demised Premises shall become effective on
the date specified in Landlord's notice (but not to exceed ninety (90) days from
the date Landlord exercises its right to recapture); and

          (d) in the case of a proposed subletting, elect to accept a sublease
as subtenant of Tenant on the terms offered to the proposed subtenant, except
that (i) no provision of such sublease shall be any more restrictive upon the
rights of Landlord as such subtenant than are the provisions of this Lease upon
the rights of Tenant, (ii) there shall be no limitation as to use or prohibition
against a further subletting and (iii) Tenant shall not be required to do any
work for Landlord.

     17.8 Intentionally Omitted.

     17.9 If Landlord consents to any Transfer, Tenant shall in consideration
therefor pay to Landlord, as Additional Rent:

               (i) in the case of an assignment, an amount equal to 50% of
all sums and other consideration paid to Tenant (minus all reasonable tenant
improvement costs, architectural and engineering fees, brokerage fees and legal
fees incurred by Tenant in connection therewith) by or for the account of the
assignee for or by reason of such assignment (including, but not limited to,
sums paid for the sale of Tenant's fixtures, leasehold improvements, equipment,
furniture, furnishings or other personal property, less, in the case of a sale
thereof, the then "book" of fair market value thereof determined on the basis of
reasonable assumptions satisfactory to Landlord); and

               (ii) in the case of a sublease, 50% any rents, additional
charges or other consideration payable under the sublease to Tenant (minus all
reasonable tenant improvement costs, architectural and engineering fees,
brokerage fees and legal fees incurred by Tenant in connection therewith) by the
subtenant, the aggregate of which exceeds the Annual Net Rent and Additional
Rent accruing during the term of the sublease in respect of the subleased space
(at the rate payable by Tenant) under this Lease (including sums paid for the
sale or rental of Tenant's fixtures, leasehold improvements, equipment,
furniture or other personal property, less, in the case of the sale thereof,
then "book" or fair market value thereof, determined on the basis of reasonable
assumptions satisfactory to Landlord).

                                 26
<PAGE>

The sums payable under this Section 17.9 shall be paid to Landlord as and when
paid by the Transferee to Tenant.

     17.10 Landlord's consent to any Transfer shall not be deemed or construed
to modify, amend or affect the terms and provisions of this Lease, or Tenant's
obligations hereunder, which shall continue to apply to all of the occupants of
the Demised Premises (including Tenant and the Transferee) in addition to the
terms of the sublease or assignment and, if and to the extent of a conflict
between this Lease and the sublease or assignment, only as between Landlord, on
the one hand, and Tenant and the Transferee, on the other, this Lease shall be
controlling in the same manner as if the Transfer had not been made.
Notwithstanding any Transfer, Tenant shall remain fully liable for the payment
of Annual Net Rent and Additional Rent and for the performance by Tenant of all
of its other obligations under this Lease. If Tenant defaults in the payment of
any rent, Landlord is authorized to collect any rents due or accruing from any
Transferee or other occupant of the Demised Premises and to apply the net
amounts collected to the Total Rent, and the receipt of any such amounts by
Landlord from a Transferee or other occupant of the Demised Premises, shall not
be deemed or construed as releasing Tenant from Tenant's obligations under this
Lease or the acceptance of that Transferee as a direct tenant.

     17.11 In each subletting permitted by this Article 17, and in each further
subletting with the consent of Landlord, Tenant shall include, or cause to be
included, in the sublease a provision prohibiting the assignment of the sublease
or subletting thereunder without the consent of the Landlord (which Landlord may
withhold in its sole but reasonable discretion) in each instance obtained. If
the sublease or any sublease is assigned or further sublet without the consent
of Landlord obtained in each instance, then Tenant shall immediately terminate
such sublease, or arrange for the termination thereof, and proceed expeditiously
to have the occupant thereunder dispossessed.

     17.12 In no event shall Tenant allow the Demised Premises to be occupied
by a total of more than four (4) tenants (including Tenant) per wing of the
Building (pro-rated for any partial wing).

     17.13 If Tenant requires expansion space at any time during the Term and
Landlord is willing to lease to Tenant the amount of space required by Tenant,
substantially equal in size and configuration and competitive with respect to
rents as other space that maybe available at the Building by sublease or
assignment, then Tenant shall not become the sublessee or assignee of any other
tenant in the Building or an occupant of any of such tenant's space without
Landlord's consent.

                              ARTICLE 18

                            EMINENT DOMAIN

     18.1 If the whole of the Demised Premises, or such part thereof as will
render the remainder untenantable, shall be acquired or condemned for any public
or quasi-public use or purpose, this Lease shall end as of the date of the
vesting of title in the condemning authority (either through court order or by
voluntary conveyance by Landlord in lieu of condemnation) with the same effect
as if said date were the Expiration Date. If only a part of the Demised Premises
shall be so acquired or condemned, then, except as otherwise provided in this
Article, this Lease and the Term shall continue in force and effect but from and
after the date of the vesting of title, the Annual Rent shall be an amount which
bears the same ratio to the Annual Rent payable immediately prior to such
condemnation pursuant to this Lease as the value of the untaken portion of the
Demised Premises (appraised after the taking and repair of any damage to the
Building pursuant to this Section) bears to the value of the entire Demised
Premises immediately before the taking and any additional rent payable or
credits receivable pursuant to Article 3 shall be adjusted to reflect the
diminution of the Demised Premises. The value of the Demised Premises before and
after the taking shall be determined for the purposes of this Section by an
independent appraiser, said appraiser shall be chosen by arbitration pursuant to
Article 37. If only a part of the Building shall be so acquired or condemned,
then (a) whether or not the Demised Premises shall be affected thereby,
Landlord, at Landlord's sole option, may give to Tenant, within sixty (60) days
next following the date upon which Landlord shall have received notice of
vesting of title, thirty (30) days' notice of termination of this Lease, and (b)
if the part of the Building so acquired or condemned shall contain more than
twenty-five percent (25%) of the total area of the Demised Premises immediately
prior to such acquisition or condemnation, or if, by reason of such acquisition
or condemnation, Tenant no longer has reasonable means of access to the Demised
Premises, Tenant may give to Landlord, within sixty (60) days following the date
upon which Landlord shall have received notice of vesting of title, thirty (30)
days' notice of termination of this Lease. Any dispute concerning the exercise
by Landlord or Tenant of an option to terminate this Lease pursuant to this
Section 18.1 shall be submitted to arbitration pursuant to Article 37 below. In
the event any such thirty (30) days notice of termination is given by Landlord
or Tenant, this Lease shall terminate upon the expiration of said thirty (30)
days with the same effect as if the date were the Expiration Date. If that part
of the Demised Premises shall be so acquired or condemned, and the Lease shall
not be terminated pursuant to the provisions of this Section, Landlord, at
Landlord's expense, shall restore that part of the Demised Premises not so
acquired or condemned to a self-contained rental unit. In the event of any
termination of this Lease pursuant to the provisions of this Section, the Annual
Rent and additional rent shall be apportioned as of the date of such termination
and any prepaid portion of Annual Net Rent and additional rent for any period
after such date shall be refunded by Landlord to Tenant.

                                 27
<PAGE>

     18.2 In the event of any such acquisition or condemnation of all or any
part of the Building, Landlord shall be entitled to receive the entire award for
any such acquisition or condemnation. Tenant shall have no claim against
Landlord or the condemning authority for the value of any unexpired portion of
the Term and Tenant hereby expressly assigns to Landlord all of its right, title
and interest in and to any such award, and also agrees to execute any and all
further documents that may be required in order to facilitate the collection
thereof by Landlord. Nothing contained in this Section shall be deemed to
prevent Tenant from making a separate claim in any condemnation proceedings for
any moving expenses and for the value of any Tenant's Personal Property which
would be removable at the end of the Term pursuant to the provisions of Section
12.6 hereof.

     18.3 If the temporary use or occupancy of all or any part of the Demised
Premises shall be condemned or taken for any public or quasi-public use or
purpose during the Term, this Lease shall be and remain unaffected by such
condemnation or taking and Tenant shall continue responsibility for all of its
obligations hereunder and it shall continue to pay the rent in full. In the
event of any such condemnation or taking, Tenant shall be entitled to appear,
claim, prove, and receive the entire award unless the period of temporary use or
occupancy extends beyond the Expiration Date, in which event Landlord shall be
entitled to appear, claim, prove, and receive the entire award as represents the
cost of restoration of the Demised Premises and the balance of any such award
shall be apportioned between Landlord and Tenant as of the Expiration Date. At
the termination of such public or quasi-public occupancy prior to the Expiration
Date, Tenant will, at its own expense, restore the Demised Premises as nearly as
possible to the condition in which they were prior to the condemnation or
taking, provided, however, that Tenant shall have no obligation to expend any
sum in excess of the condemnation proceeds received by Tenant under this Section
18.3 to restore the Demised Premises in accordance with this Section.
Notwithstanding the preceding provisions of this Section, any lump sum award
received by Tenant as compensation for temporary use and occupancy of the
Demised Premises shall be delivered forthwith to Landlord to be held by Landlord
in trust for the making of payments by Tenant as provided in this Lease.

     18.4 If the grade of any street upon which the Building is situated or
abuts shall be changed by any competent authority, this Lease shall nevertheless
continue in full force and effect, and Landlord shall be entitled to collect
from such authority the entire award that may be made in such proceedings.
Tenant hereby expressly assigns to Landlord all of its right, title, and
interest in or to every such award and also agrees to execute any and all
further documents that may be required in order to facilitate the collection
thereof by Landlord.

     18.5 Landlord will endeavor to give Tenant notice of any condemnation that
would affect the Demised Premises as soon as Landlord becomes aware of the same.

                              ARTICLE 19

                   ACCESS TO DEMISED PREMISES, CHANGES

     19.1 (a) Tenant shall permit Landlord to erect, use and maintain pipes,
ducts and conduits (collectively referred to as "Conduits"), in addition to
those Conduits that are in place on the Commencement Date, in and through the
Demised Premises if the Conduits are installed adjacent to or concealed behind
walls and ceilings. To the extent reasonably practicable, Landlord shall install
the Conduits by such methods and at such locations as will not materially
interfere with or impair Tenant's layout or use of the Demised Premises.

          (b) Landlord and its agents and designees shall have the right to
enter the Demised Premises as follows:

          Upon notice (except in emergencies or in circumstances which do not
permit the giving of such notice, in either of which cases no notice shall be
required) to Tenant or to any authorized employee of Tenant at the Demised
Premises, at reasonable times during business hours, for the following purposes:

               (1) To make such repairs and Alterations as Landlord deems
necessary or which Landlord is required or has the right to make under this
Lease or under any other lease in the Building. Landlord may take all materials
into and upon the Demised Premises that are required for those repairs,
alterations or the construction work at such time as those materials are
required.

               (2) To inspect the Demised Premises.

               (3) To exhibit the Demised Premises to prospective purchasers
or lessees of the

                                 28
<PAGE>

Building or of any interest in the Building or to prospective mortgagees, or to
the holder of any mortgage on either or both of the Land and the Building.

               (4) To comply with all Laws.

               (5) To comply with the request to enter the Demised Premises
of any receiver, trustee, assignee for the benefit of creditors, sheriff,
marshall or a bearer of a court order, who Landlord reasonably believes is
entitled to enter the Demised Premises (but that compliance shall not be deemed
a recognition by Landlord that the person or official requesting the entry has
any right, interest or authority).

               (6) To comply with the demand of any agency, department or
bureau of any government.

          Landlord's entry into the Demised Premises pursuant to this Section
19.1 shall be at Landlord's risk to the extent provided in Section 15.9(c)
hereof.

            (c) The exercise by Landlord of any right described in this
Section 19.1 shall not constitute a total or partial eviction of Tenant, and
shall not entitle Tenant to abate its Total Rents or to make any claim against
Landlord by reason of that exercise or by reason of interruption of Tenant's
business, or otherwise. In exercising its rights under this Section 19.1,
Landlord will use reasonable diligence in order to minimize disturbance to
Tenant, but Landlord shall not be required to exercise its rights in such manner
as will result in its paying overtime or premium pay to employees.

     19.2 Landlord may change the arrangement or location of parking areas,
common areas, sidewalks, public entrances, passageways, doors, doorways,
corridors, elevators, stairways, toilets or other parts of the Building or the
Project, except that the Landlord may not cut off access to the Building and
shall not unreasonably obstruct access to, or unreasonably interfere with
Tenant's use or enjoyment of, the Demised Premises. The exercise by Landlord of
any right described in this Section 19.2 shall not constitute a total or partial
eviction of Tenant, and shall not entitle Tenant to abate its Total Rents or to
make any claim against Landlord.

     19.3 Neither this Lease nor any use by Tenant of any public area or
convenience will give Tenant any right or easement for that use, and Landlord
may regulate or discontinue that use without notice to Tenant at any time and
from time to time without liability to Tenant and without affecting Tenant's
obligations under this Lease.

     19.4 Twelve months before the expiration of the Term, Landlord, upon prior
oral notice, may exhibit the Demised Premises to prospective tenants during
Business Hours.

     19.5 If Tenant or any authorized employee of Tenant is not personally
present to permit entry into the Demised Premises at any time when entry into
the Demised Premises is necessary by reason of emergency, then Landlord and
Landlord's agents may forcibly enter the Demised Premises without rendering
Landlord or its agents liable for such entry (if Landlord and Landlord's agents
accord reasonable care to Tenant's property) and without in any manner affecting
this Lease.

                              ARTICLE 20

                               DEFAULT

     20.1 This Lease and the term and estate granted by this Lease are subject
to the limitation that if (a) Tenant makes an assignment of Tenant's property
for the benefit of creditors, or (b) Tenant files a voluntary petition under any
bankruptcy or insolvency law (either, a "Creditor's Law"), or (c) an involuntary
petition alleging an act of bankruptcy or insolvency is filed against Tenant
under a Creditor's Law, or (d) a petition is filed by or against Tenant under
the reorganization provisions of any Creditor's Law, or (e) a petition is filed
by Tenant under the arrangement provisions of any Creditor's Law, or (f) a
petition by Tenant under the arrangement provisions of any Creditor's Law, or
(g) a permanent receiver of Tenant or for Tenant's property is appointed, then
in any of those six events Landlord may (i) if the event occurs with the consent
or acquiescence of Tenant, at any time after Landlord becomes aware or receives
notice of the occurrence, or (ii) if the event occurs without Tenant's consent
or acquiescence, at any time after the event continues for 60 days, give to
Tenant a notice of intention to end the Term at the expiration of five business
days from the date of service of Landlord's notice of intention, and at 5:00
P.M. on the last day of the five business day period, this Lease and the Term
and estate granted by this Lease, whether or not the Term has commenced, shall
terminate with the same effect as if that day were the Expiration Date, but
Tenant shall remain liable for damages as provided in Article 22.

     20.2 If any of the following events (each, an "Event of Default") occurs,
then Landlord may give to Tenant a notice of intention to end the Term in which
event, this Lease and the Term and the estate granted by this Lease,

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<PAGE>

whether or not the Term has commenced, will terminate at 5:00 p.m. on the day
specified in Landlord's notice to Tenant, with the same effect as if that time
were the Expiration Date, but Tenant shall remain liable for damages as provided
in Article 22:

          (a) If Tenant defaults in any scheduled payment of any of the Total
Rents for more than five (5) days after the day on which the payment is due
(provided that Landlord shall be required to give to Tenant, not more than two
(2) times in any twelve (12) month period, written notice that any payment was
not made when due, and Tenant shall have five (5) days after receipt thereof to
make such payment, before this Section 20.2(a) shall be deemed violated,
provided that in no event shall Landlord be required to provide any such written
notice in consecutive months), or in the payment of any non-scheduled payment of
Total Rents for more than fifteen (15) days after demand from Landlord.

          (b) If Tenant defaults in the performance of any obligation under
Article 11 and if that default is not cured by Tenant within five (5) days after
Landlord has given to Tenant a notice specifying the default, except if the
default under Article 11 is materially interfering with other tenants in the
Building, then the cure period shall be one (1) business day, and if the default
under Article 11 involves a criminal violation, then the cure period shall be
twenty-four (24) hours.

          (c) If this Lease or the Term or the estate granted by this Lease
would or does by operation of law or otherwise devolve upon any person or entity
other than Tenant, except in accordance with Article 17.

          (d) if Tenant legally abandons the Demised Premises in violation of
any provision of this Lease.

          (e) If Tenant does or permits anything (other than as provided in
paragraphs (a) and (b) of this Section 20.2) to be done or to exist, whether by
action or inaction, in violation of any of Tenant's obligations under this
Lease, and Tenant fails to remedy that violation within 15 days after Landlord
has given to Tenant a notice specifying the violation, except that (i) if the
violation cannot be completely remedied within the period of 15 days, and (ii)
the continuation of the violation for the period that Landlord reasonably
estimates is required to completely remedy the violation will not (x) subject
Landlord to the payment of any fine or penalty or to criminal prosecution or
subject either or both of the Land and Building to lien or sale, or (y) result
in a violation of, or the termination of, any mortgage or any ground or
underlying lease, and (iii) within the 15-day period, Tenant notifies Landlord
of Tenant's intention to completely remedy the violation with due diligence, and
(iv) within the 15-day period Tenant commences and thereafter diligently and
continuously takes all steps necessary to completely remedy the violation and
does completely remedy the violation within such time after the date of
Landlord's notice as reasonably is necessary, then Landlord shall not have the
right to give the notice of termination to end the Term as described in this
Section 20.2.

                              ARTICLE 21

                    RE-ENTRY BY LANDLORD, INJUNCTION

     21.1 If (a)an Event of Default occurs, or (b) this Lease terminates, as is
provided in Article 20, then Landlord and Landlord's agents and employees may at
any time after the end of the five-day period or after the termination, as the
case may be, re-enter all or any part of the Demised Premises, by summary
dispossess proceedings or by any action or proceeding at law (a "Re-entry")
without Landlord's being liable to indictment, prosecution or damages as a
result of the Re-entry, so that upon the Re-entry Landlord will have, hold and
enjoy the Demised Premises free of any rights of Tenant under this Lease. In the
event of any termination of this Lease pursuant to Article 20 or pursuant to any
summary dispossess or other proceedings or action or any provision of law by
reason of Tenant's default (an "Early Termination") or in the event of a
Re-entry, Tenant shall pay to Landlord the Total Rents that are payable by
Tenant to Landlord up to the time of the Early Termination or Re-entry, as the
case may be, and in addition, shall pay to Landlord damages as provided in
Article 22.

     21.2 In case of a breach or a threatened breach by Tenant of this Lease,
Landlord shall have the right of injunction. Special remedies to which Landlord
may resort under this Lease are cumulative and are not intended to be exclusive
of any other remedy or means of redress to which Landlord lawfully may be
entitled, and Landlord may invoke any one or more remedies and means of redress
allowed at law or in equity in the same manner and to the same extent as if
specific remedies were not provided for in this Lease.

     21.3 If an Early Termination or a Re-entry occurs, then in either of those
events, Landlord may retain all monies that have been paid by Tenant to
Landlord, whether as advance rent, security or otherwise, and Landlord shall
credit those monies against the payment of any amounts of the Total Rents that
are due at the time of the Early Termination or the Reentry, or against the
payment of any damages that are payable by Tenant under Article 22 or pursuant
to Law.

     21.4 Tenant, for itself and on behalf of any person claiming through or
under it, including creditors of all

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<PAGE>

kinds, waives any and all rights of redemption granted under any present or
future Laws if Tenant is being evicted or dispossessed for any cause, or if
Landlord obtains possession of the Demised Premises by reason of a violation by
Tenant of this Lease or otherwise.

                              ARTICLE 22

                               DAMAGES

     22.1 (a) In the event of an Early Termination or a Re-entry, Tenant shall
pay to Landlord as damages, as Landlord elects, either:

               (x) An amount which, on the date of Early Termination or
Re-entry, as the case may be (each of which date is referred to as the
"Termination Date"), equals the aggregate of the Total Rents which would have
been payable by Tenant during the period (the "Default Period") commencing on
the Termination Date and ending on the Expiration Date (conclusively presuming
that all items constituting Additional Rent increase during the Default Period
at a rate that is equal to the average of the rate of increase of those items
that occurred during the shorter of the period from the Commencement Date to the
Termination Date or the three years immediately preceding the Termination Date),
discounted to present worth at the rate of 9% per annum, or

               (y) sums that are equal to the Total Rents which would have
been payable by Tenant had this Lease not so terminated or had the Re-entry not
occurred, which shall be paid by Tenant upon the due dates specified in this
Lease that occur during the Default Period, except that if Landlord relets all
or any part of the Demised Premises during the Default Period, then Landlord
shall credit Tenant with the net rents (after deduction of the expense of
reletting referred to in Section 22.1(b)) if, as and when those rents are
received by Landlord from the reletting. Any reletting may be for a period
shorter or longer than the remaining Term. Tenant shall not be entitled to
receive any excess of the rents collected under the reletting over the Total
Rents, or to a credit in respect of any rents from a reletting, except to the
extent that those rents actually are received by Landlord. Landlord shall have
no obligation to take any action to collect any rents under the reletting, but
if Landlord does take any such action, then the amount of the credit to be given
by Landlord to Tenant shall be reduced by the costs incurred by Landlord in
taking that action. If all or any part of the Demised Premises are relet in
combination with space that is not included within the Demised Premises, then
the rent received from that reletting and the expenses of the reletting shall be
apportioned to the portion of that space that is within the Demised Premises in
the percentage that the area of the Demised Premises within that space bears to
the total area of that space.

          (b) In addition to all damages recoverable under Section 22.1(a),
Tenant shall pay to Landlord as damages an amount that is equal to the expenses
incurred by Landlord in terminating this Lease or in respect of a Re-entry and
in securing possession of the Demised Premises, including attorneys' fees and
disbursements, expenses of reletting including altering and preparing the
Demised Premises for new tenants, brokers' commissions and attorneys' fees and
disbursements, rent concessions and all other expenses properly chargeable in
respect of the Demised Premises and the rental thereof.

          (c) If all or any part of the Demised Premises is relet upon an
arm's-length basis for all or any part of the Default Period, then the amount of
rent provided for upon that reletting shall be conclusively presumed to be the
fair and reasonable rental value for the area so let. No such reletting shall
constitute, surrender or an acceptance of a surrender.

     22.2 Landlord may sue for the recovery of damages under this Article 22 or
any installments on account thereof at any time and from time to time at its
election. Landlord shall not be required to postpone suit until the Expiration
Date. Nothing contained in this Article 22 shall be construed (a) to limit or
preclude recovery by Landlord from Tenant of any sums or damages to which, in
addition to the damages described in Section 22.1, Landlord would lawfully be
entitled by reason of Tenant's default, or (b) to limit or prejudice Landlord's
right to prove for and obtain as liquidated damages by reason of the Early
Termination of this Lease or a Re-entry, an amount that is equal to the maximum
allowed by any Law in effect at the time when, and governing the proceedings in
which, those damages are to be proved, whether or not the amount is greater or
less than any of the amounts referred to in Section 22.1.

     22.3 If Tenant fails to pay when due any installment of Annual Net Rent or
any payments of Additional Rent, then Tenant shall pay a late charge of $.05 for
each $1.00 of such installment or payment. The late charges imposed hereunder
are intended to compensate Landlord for additional expenses incurred by Landlord
in processing such late payments. Nothing herein contained shall be intended to
violate any applicable law, code or regulation, and all instances all such
changes shall be automatically reduced to any maximum applicable legal rate or
charge. Such charge shall be imposed monthly for each month that a late payment
is not made.

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<PAGE>

                              ARTICLE 23

              RIGHTS TO PERFORM THE OTHER PARTIES OBLIGATIONS

     23.1 If Tenant defaults in the performance of this Lease, then Landlord
may, but shall not be obligated to, take such action (the "Remedial Action")
which, if it had been taken by Tenant, would remedy that default (a) immediately
and without notice to Tenant in case of emergency, and (b) in any other case if
Tenant has failed to remedy the default with all reasonable dispatch within the
applicable grace period for curing the default. The taking of the Remedial
Action by Landlord shall not constitute a waiver by it of the default. If
Landlord makes any expenditure or incurs any obligation for the payment of money
in connection with taking the Remedial Action or otherwise in connection with
the default, including reasonable attorneys' fees in instituting, prosecuting,
or defending any action or proceeding, then Tenant shall pay the amount thereof
to Landlord, with interest at the Interest Rate from the date of Landlord's
expenditure until the date of Tenant's payment, upon receipt of Landlord's
invoice therefor.

     23.2 If Landlord defaults in the payment of any portion of the Tenant
Improvement Allowance (as defined in Section 2.1 of Schedule D attached hereto)
or fails to make any other payment of money due to Tenant under this Lease in
excess of $25,000.00, and if Landlord has failed to remedy the default within
thirty (30) days after written notice of the default, then Tenant shall have the
right to offset the unpaid amount against up to twenty-five (25%) percent of
monthly Annual Net Rent installments next becoming due and owing under this
Lease, until Tenant has been reimbursed in full for such amount, provided,
however, if, within such thirty (30) day period, Landlord disputes Tenant's
right to offset or the amount thereof and if such dispute is not resolved within
such thirty (30) day period, Tenant, instead of setting off rent, shall pay the
amounts which would otherwise be set off into escrow with a mutually acceptable
escrowee, and the dispute shall be resolved through arbitration as provided in
Article 37 hereof. If neither Landlord nor Tenant submits a dispute as to
Tenant's right of offset or the amount thereof to arbitration, pursuant to
Article 37 hereof, within fifteen (15) days after the expiration of said thirty
(30) day period, then Landlord's dispute shall be deemed abandoned.

                              ARTICLE 24

                              DEFINITIONS

     24.1 The term "Landlord" as used in this Lease means only the owner, or
the mortgagee in possession, for the time being of the Project (or the lessee
under a lease of the Project). Accordingly, if (a) title to the Project or to
the lessee's interest under such a lease is transferred, or (b) a lease of the
Project is entered into by Landlord or any successor to Landlord, then upon
notification to Tenant of the transfer or lease the transferor (whether it is
Landlord or any successor of Landlord) shall be freed and relieved of all
obligations of Landlord under this Lease with respect to any period subsequent
to the transfer. It shall be deemed and construed to be a covenant running with
the land without further agreement between the parties or their successors in
interest, or between the parties and the transferee of title to the Project or
any such lessee's interest in a lease of the Project or the lessee of the
Building or of the Land and Building, that the transferee or the lessee has
assumed and agreed to perform the obligations of Landlord under this Lease with
respect to the period from the effective date of the transfer to the effective
date of any subsequent transfer.

     24.2 The term "Business Day" shall mean every day other than Saturdays,
Sundays and all days observed by the Federal or Connecticut State government as
legal holidays.

     24.3 The term "Business Hours" shall mean the hours of 8:00 A.M. to 6:00
P.M. on Business Days and 8:00 A.M. to 1:00 P.M. on Saturdays.

     24.4 "Interest Rate" shall mean a rate per annum equal to the lesser of
(a) 3% above the Prime Rate, and (b) the maximum applicable legal rate, if any.

     24.5 "Laws" shall mean laws, statutes and ordinances (including building
codes and zoning regulations, and ordinances) and the orders, rules, and
regulations, directives and requirements of all federal, state, county, city and
borough departments, bureaus, boards, agencies, offices, commissions and other
subdivisions thereof, or of any official thereof, or of any other governmental
public or quasi-public authority, whether now or hereafter in force, which may
be applicable to the Land or Building or the Demised Premises or any part
thereof, or the sidewalks, curbs or area adjacent thereto and all requirements,
obligations and conditions of all instruments of record on the date of this
Lease.

     24.6 "Prime Rate" shall mean a rate per annum equal to the prime rate as
announced from time to time by The Chase Manhattan Bank, New York, New York or
any successor thereto.

     24.7 The following rules of construction shall apply to this Lease:

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<PAGE>

          (a) The words "include" and "including" and similar terms shall be
construed as if followed by the phrase "without being limited to."

          (b) All references to numbered Articles or Sections are references
to the Articles and Sections of this Lease unless otherwise expressly designated
in context.

          (c) Unless other payment dates are provided in the Lease, all
payments of any kind to be made by Tenant to Landlord under this Lease other
than Annual Net Rent (which shall be payable without notice or invoice),
including reimbursements by Tenant to Landlord of costs incurred by Landlord,
shall be payable by Tenant to Landlord upon receipt by Tenant of Landlord's
invoice therefor.

          (d) The term "Person" shall include natural persons, firms,
partnerships, corporations and any other public or private legal entity.

          (e) The terms "provisions," "terms," "conditions," "covenants,"
"requirements," "obligations" and other words of similar import shall be deemed
to include all of those terms, where the context so permits.

          (f) The term "this Lease" shall be deemed to include all of the
provisions of this Lease.

          (g) In any instance in which consent or approval by Landlord is
required under this Lease, it shall be deemed to be preceded by the word
"prior."

          (h) The terms "failure," "violation," "default," "breach" and words
of similar import shall be deemed to include all of those terms where the
context so permits.

          (i) The terms "costs," "expenses," "obligations," "liabilities" and
words of similar import shall be deemed to include all of those terms where the
context so permits.

          (j) The use of the singular or the plural shall be deemed to include
the plural and the singular, as the case may be, where the context so permits.

          (k) The use of the conjunctive shall be deemed to include any, both
or all of the terms which are joined, where the context so permits.

     24.8 No right or requirement of inspection, consent or approval that is
given to Landlord or is required to be obtained by Tenant under this Lease and
no making of any inspection or granting of any consent or approval by Landlord
shall constitute (a) a release of Tenant from any obligation that it has under
this Lease, or (b) a warranty, guarantee, or assurance by Landlord regarding (i)
the subject of the inspection, consent or approval, or of results thereof, or
(ii) the conformity with law or with this Lease of the subject matter of the
inspection, approval or consent. Tenant shall have no right to rely upon any
such inspection, approval or consent as an assurance of conformity with any
requirement imposed on Tenant in performing its obligations under this Lease.

                              ARTICLE 25

                       INVALIDITY OF ANY PROVISION

     25.1 If any provision of this Lease or the application thereof to any
circumstance or to any person is invalid or unenforceable to any extent, the
remaining provisions of this Lease or the application thereof to any
circumstance or to any person other than that as to which any provision is held
invalid or unenforceable, shall not be affected thereby and each remaining
provision of this Lease shall be valid and shall be enforceable to the fullest
extent permitted by law.

                              ARTICLE 26

                              BROKERAGE

     26.1 Landlord and Tenant each represents to the other that it has had no
dealings or communications with any brokers or agents other than Cushman &
Wakefield of Connecticut, Inc. in connection with the consummation of this Lease
and the prior negotiation thereto and Landlord represents that it has no
existing brokerage agreements with any other real estate brokers with respect to
this Lease. Landlord shall pay a commission to Cushman & Wakefield of
Connecticut, Inc. to the extent earned and payable pursuant to a separate
Commission Agreement. Landlord and Tenant agree to pay, hold harmless and
indemnify the other from and against any and all claims, losses, costs, expenses
(including reasonable attorneys' fees) and

                                 33
<PAGE>

liability for any compensation, commissions or charges claimed by any broker or
agent, other than the brokers set forth in this Section 26.1 with respect to
this Lease or the negotiation thereof.

                              ARTICLE 27

                   CERTIFICATE OF TENANT AND LANDLORD

     27.1 Each party will, at any time and from time to time, as requested by
the other party, upon not less than ten days' prior notice, execute and deliver
to the other a statement certifying that this Lease is unmodified and in full
force and effect (or if there have been modifications, that this Lease is in
full force and effect as modified and stating the modifications), certifying the
dates to which the Annual Net Rent and the Additional Rent have been paid, and
stating whether, to the best knowledge of the signer, the other party is in
default in performance of any of its obligations under this Lease, and, if so,
specifying each such default, it being intended that any such statement
delivered pursuant hereto may be relied upon by others with whom the party
requesting such certificate may be dealing.

     27.2 Except for the first month's rent hereunder, Tenant will pay no rent
under this Lease more than 30 days in advance of its due date, if so restricted
by any existing or future ground or underlying lease or mortgage to which this
Lease is subordinated or by an assignment of this Lease to the ground or
underlying lessor or the holder of such mortgage, and Tenant will not exercise
any right to terminate this Lease or to remedy any default by Landlord and
deduct the cost thereof from the Total Rents until Tenant has given notice of
that default to the ground or underlying lessor and to the holder of any
mortgage on the fee or the ground or underlying lease who has furnished such
lessor's or holder's last address to Tenant, and until a reasonable period for
remedying the default has elapsed following the giving of such notices, during
which time such lessor or holder shall have the right, but shall not be
obligated, to remedy the default, provided that if any such lessor or holder
does not remedy a default within the time periods provided for in this Lease,
then Tenant may exercise any of its rights under this Lease, except that Tenant
shall not exercise any right to terminate this Lease if the holder of any
mortgage or such lessor commences to cure the default within a reasonable time
and diligently prosecutes the cure.

                              ARTICLE 28

         LEGAL PROCEEDINGS; WAIVER OF JURY TRIAL; PREJUDGMENT REMEDY

     28.1 Landlord and Tenant each waives trial by jury in any action brought
by either of the parties hereto against the other on any matters whatsoever
arising out of or in any way connected with this Lease, the relationship of
Landlord and Tenant, Tenant's use or occupancy of the Demised Premises, and any
other claims (except claims for personal injury or property damage), and any
emergency statutory or any other statutory remedy. If Landlord commences any
summary proceeding for nonpayment of rent, then Tenant will not interpose any
counterclaim in any such action. 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 52-278a of
the Connecticut General Statutes, as amended, and hereby expressly waives any
and all rights which are or may be conferred upon Tenant by said Act to any
notice or hearing prior to a prejudgment remedy, and by any present or future
law to redeem the Demised Premises, or to any new trial in any action or
ejection under any provisions of law, after reentry thereupon, or upon any part
thereof, by Landlord, or after any warrant to dispossess or judgment in
ejection.

                              ARTICLE 29

                         SURRENDER OF PREMISES

     29.1 Upon the expiration or other termination of the Term, Tenant shall
(a) quit and surrender to Landlord the Demised Premises, broom clean, in good
order and condition, ordinary wear and tear and damage by casualty excepted, (b)
remove all of its property as herein provided, and (c) remove Alterations, to
the extent required under Section 12.5 hereof. Tenant's obligation to observe or
perform this covenant shall survive the Termination.

     29.2 If Tenant fails to surrender possession of the Demised Premises upon
Termination, then Landlord may elect, by notice to Tenant, to treat Tenant as a
holdover upon a month to month basis at a rent equal to the greater of (a) the
then current fair market rental value of the Demised Premises, or (b) 150% the
Annual Net Rent and Additional Rent per month which Tenant was required to pay
during (or in the case of Additional Rent, on account of or attributable to) the
calendar month immediately prior to Termination for the first two (2) months of
any such holdover, and 200% of such Annual Net Rent and Additional Rent for any
holdover thereafter. If the Demised Premises are not surrendered upon
Termination, then Tenant shall indemnify and hold harmless Landlord against and
from any loss, costs, liability or expenses (including attorneys'

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<PAGE>

fees) resulting from the failure to surrender, including any claims made by any
succeeding lessee founded upon such delay. Nothing contained in this Section
29.2 shall be deemed to give to Tenant any right to fail to surrender possession
or to hold over, and the provisions of this Section 29.2 shall not constitute an
offer to rent on a month-to-month basis or at the rent set forth above.

     29.3 If the last day of the Term falls on a Sunday or a legal holiday then
this Lease shall end on the immediately preceding Business Day. If Tenant has
removed all of its personnel and all or substantially all of us property from
the Demised Premises or any full floor constituting a part of the Demised
Premises at any time during the last month of the Term, then upon that removal
Landlord may enter and alter, renovate and redecorate the Demised Premises or
any vacated full floor, without elimination, diminution or abatement of rent, or
incurring any liability to Tenant, and such acts by Landlord shall have no
effect upon this Lease.

                              ARTICLE 30

                         RULES AND REGULATIONS

     30.1 Tenant and Tenant's servants, employees, agents, visitors and
licensees shall observe faithfully and comply strictly with the Rules and
Regulations set forth in Schedule G attached hereto and made part hereof and
such other and further reasonable Rules and Regulations as Landlord or
Landlord's agents may from time to time adopt (together, the "Rules and
Regulations"). If there is any conflict or inconsistency between the provisions
of this Lease and any of the Rules and Regulations, the provisions of this Lease
shall control. Reasonable written notice of any change in the Rules and
Regulations shall be given to Tenant. Landlord shall not enforce the Rules and
Regulations in a manner discriminatory to Tenant.

     Nothing in this Lease shall be construed to impose upon Landlord any duty
or obligation to enforce the Rules and Regulations or the provisions of any
other lease, against any other tenant of the Building, and Landlord shall not be
liable to Tenant for violation of the same by any other tenant, its servants,
employees, agents, visitors or licensees.

                              ARTICLE 31

                        CONSENTS AND APPROVALS

     31.1 Wherever in this Lease Landlord's consent or approval is required,
such consent or approval shall only be effective if in writing. If Landlord
delays or refuses to give such consent or approval, then Tenant shall not be
entitled to make any claim for money damages (nor shall Tenant claim any money
damages by way of setoff, counterclaim or defense) based upon any claim or
assertion by Tenant that Landlord unreasonably withheld or unreasonably delayed
its consent or approval. Tenant's sole remedy shall be an action or proceeding
for specific performance, to enforce Landlord's obligation, if any, to give such
consent or approval, or for a declaratory judgment.

                              ARTICLE 32

                               NOTICES

     32.1 Any notice or demand, consent, request, approval or disapproval, or
statement (any of which is referred to as a "Notice") required to be given under
this Lease, or by any Law shall be in writing. Unless otherwise required by Law,
the Notice shall be deemed to have been served and given when the Notice is hand
delivered or mailed enclosed in a securely sealed postpaid wrapper by registered
or certified mail, or by nationally recognized overnight courier providing
evidence of receipt sent priority overnight to Landlord or Tenant, as the case
may be, at the address of such party set forth on page 1 of this Lease Attn:
General Counsel, with a copy to Ivey, Barnum & O'Mara, LLC, 170 Main Street,
Greenwich, CT 06830-6692 Attn: Steven B. Steinmetz, Esq.. Notices to Landlord
shall be also addressed to the attention of the building manager at the Property
and to Landlord's corporate offices at 23 Richmond Hill Avenue, Stamford, CT
06901, to the attention of President, Real Estate Group, with a copy of all such
notices to Landlord to be sent to Rogin, Nassau, Caplan, Lassman & Hirtle, LLC,
CityPlace 1, 22nd Floor, Hartford, CT 06103 Attn: Peter S. Sorokin, Esq. After
Tenant occupies the Demised Premises, the address of Tenant for Notices shall be
the Building. Either party, by a Notice, may designate a different address or
addresses for Notices.

     32.2 Either Landlord or Tenant may, from time to time, request in writing
that the other party serve a copy of any Notice on one person designated in the
request, in addition to Landlord or Tenant, as the case may be, service to be
effected as provided in Section 32.1.

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<PAGE>

                              ARTICLE 33

                              NO WAIVER

     33.1 No agreement to accept the surrender of this Lease shall be valid
unless in writing signed by Landlord. No employee of Landlord or of Landlord's
agents shall have any power to accept the keys to the Demised Premises before
Termination. The delivery of keys to any employee of Landlord or of Landlord's
agents shall not operate as a Termination or a surrender of the Demised
Premises. If Tenant desires to have Landlord sublet all or any portion of the
Demised Premises for Tenant's account, then Landlord or Landlord's agents are
authorized to receive the keys for that portion of the Demised Premises intended
to be sublet without releasing Tenant from any of its obligations under this
Lease, and Tenant releases Landlord from any liability for loss or damage to any
of Tenant's property in connection therewith.

     33.2 Landlord's failure to seek redress for violation of, or to insist
upon the strict performance of, this Lease, or any of the Rules and Regulations,
shall not prevent a subsequent act by Tenant, which would originally have
constituted a violation or failure strictly to perform by Tenant, from having
all the force and effect of an original violation. Landlord's failure to enforce
any of the Rules and Regulations against Tenant or any other tenant in the
Building shall not be deemed a waiver of any of the Rules and Regulations. The
receipt by Landlord of any of the Total Rents with knowledge of the breach of
this Lease by Tenant shall not be deemed to be a waiver of that breach. No
provision of this Lease shall be deemed to have been waived by Landlord, unless
such waiver is in writing signed by Landlord.

     33.3 No payment by Tenant or receipt by Landlord at any time of any amount
on account of Annual Net Rent or Additional Rent that is less than the amount of
either that is due at that time shall be deemed to be other than on account of
such unpaid amounts of the Total Rents as Landlord may determine in accordance
with Section 38.8. No endorsement by Landlord of a check for or acceptance by
Landlord of any payment on account of the Total Rents shall be deemed to be an
accord and satisfaction, and Landlord may accept any such check or payment in a
lesser amount than is due without prejudice to Landlord's right to recover the
balance of the Total Rents and to pursue any other remedy under this Lease. The
receipt and retention by Landlord of payments on account of the Total Rents from
any person other than Tenant shall not be deemed to be a waiver of any provision
of this Lease to be performed by Tenant or the acceptance of such person as a
lessee or the release of Tenant from its further performance of this Lease.

     33.4 This Lease contains the entire agreement between the parties, and any
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of it, in whole or in part, unless such agreement is in
writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

                              ARTICLE 34

                              CAPTIONS

     34.1 The captions in this Lease are inserted only as a matter of
convenience and for reference, and in no way define, limit or describe the scope
or the intent of any provision of this Lease.

                              ARTICLE 35

                         INABILITY TO PERFORM

     35.1 If, by reason of (a) strike, (b) labor troubles, (c) governmental
preemption in connection with a national emergency, (d) any rule, order or
regulation of any governmental agency, (e) conditions of supply or demand which
are affected by war or other national, state or municipal emergency, or any
other cause or (f) any cause beyond Landlord's reasonable control, Landlord is
unable to perform or is delayed in performing any of its obligations under this
Lease or is unable to supply or is delayed in supplying any service which
Landlord is obligated to supply, then Landlord shall have no liability in
connection with that inability and this Lease and Tenant's obligation to perform
all of Tenant's obligations under this Lease shall in no way be affected,
impaired or excused. Tenant shall similarly be excused for delay in the
performance of obligations hereunder provided:

          (a) nothing contained in this Section 35.1 or elsewhere in this
Lease shall be deemed to excuse or permit any delay in the payment of any sums
of money required hereunder, or any delay in the cure of any default which may
be cured by the payment of money;

          (b) no reliance by Tenant upon this Section 35.1 shall limit or
restrict in any way Landlord's right of self-help as provided in this Lease; and

          (c) Tenant shall not be entitled to rely upon this Section 35.1
unless it shall advise Landlord in writing, of the existence of any force
majeure preventing the performance of an obligation of Tenant within five (5)
days after the commencement of the force majeure.

                                 36
<PAGE>

                              ARTICLE 36

                     NO REPRESENTATIONS BY LANDLORD

     36.1 Landlord and Landlord's agents have made no representations or
promises with respect to the Building or Demised Premises and Tenant
acknowledges that it has not relied on any representations or promises except as
set forth in this Lease.

                              ARTICLE 37

                              ARBITRATION

     37.1 In any case specified in this Lease in which resort to arbitration is
required, such arbitration shall be held in Connecticut in accordance with the
Commercial Arbitration Rules of the American Arbitration Association and the
provisions of this Lease. The decision and award of the arbitrators shall be in
writing, shall be final and conclusive on the parties, and counterpart copies
thereof shall be delivered to each of the parties. In rendering the decision and
awards, the arbitrators shall not add to, subtract from or otherwise modify the
provisions of this Lease. Judgment may be had on the decision and award of the
arbitrators so rendered in any court of competent jurisdiction. Each party shall
be responsible for paying all of its own costs (including legal fees and
disbursements) relating to the arbitration.

                              ARTICLE 38

                             MISCELLANEOUS

     38.1 Irrespective of the place of execution or performance, this Lease
shall be governed by and construed in accordance with the laws of the State of
Connecticut.

     38.2 This Lease shall be construed without regard to any presumption or
other rule requiring construction against the party causing this Lease to be
drafted.

     38.3 Except as otherwise expressly provided in this Lease, each provision
of this Lease to be performed by Tenant shall be deemed and construed as a
separate and independent covenant of Tenant, not dependent on any other
provisions of this Lease.

     38.4 All terms and words used in this Lease, regardless of the number or
gender in which they are used, shall be deemed to include any other number and
any other gender as the context may require.

     38.5 Time shall be of the essence with respect to the exercise of any
option granted under this Lease.

     38.6 Except as otherwise provided in this Lease, whenever payment of
interest is required by the terms hereof, it shall be at the Interest Rate.

     38.7 Tenant shall not record this Lease, at any time. Landlord shall
however, upon request, execute a Notice of Lease that complies with Section
47-19 of the Connecticut General Statutes, which Tenant may then execute and
record in the Wilton Land Records. A violation of this provision shall be deemed
a default under this Lease.

     38.8 If Tenant is in arrears in payment of any amount of the Total Rents,
Tenant waives Tenant's right, if any, to designate the items against which any
payments made by Tenant are to be credited, and Landlord may apply any payments
made by Tenant to any items it sees fit, irrespective of and notwithstanding any
designation or request by Tenant as to the items against which any such payments
shall be credited.

     38.9 The provisions of this Lease shall be binding upon and inure to the
benefit of Landlord, Tenant and their respective successors and assigns, except
that no assignment or subletting in violation of the provisions of Article 17
shall operate to vest any rights in any successor assignee or subtenant.

     38.10 This Lease shall not be binding upon Landlord unless and until it is
signed by both parties hereto and a signed copy thereof is delivered by Landlord
to Tenant.

                                 37
<PAGE>

                              ARTICLE 39

                         INTENTIONALLY OMITTED

                              ARTICLE 40

                          EXTENSIONS OF TERM

     40.1 (a) Tenant shall have the right to extend the term of this Lease for
two (2) successive five (5) year terms, the first such extension term to
commence on the date immediately succeeding the Expiration Date and to end on
the last day of the month preceding the month in which occurs the fifth (5th)
anniversary of the Expiration Date (the "First Extension Term"), and the second
such extension term to commence on the day following the expiration of the First
Extension Term and to end on the last day of the month in which occurs the tenth
(10th) anniversary of the Expiration Date (the "Second Extension Term") provided
that:

               (i) Tenant shall give Landlord notice (hereinafter called
"First Extension Notice" and "Second Extension Notice", respectively, or an
"Extension Notice") of its election to extend the term of this Lease no less
than fifteen (15) months and no more than twenty-one (21) months prior to (A)
the Expiration Date of the initial term of this Lease with respect to the First
Extension Term; and (B) the expiration date of the First Extension Term with
respect to the Second Extension Term;

               (ii) No Event of Default shall exist as of the time of the
giving of the Extension Notice and the commencement date of each extension term,
respectively;

               (iii) Tenant shall be in actual occupancy of seventy-five
(75%) percent of the rentable area of the Premises as of the time of the giving
of the Extension Notice and on the commencement date of the First Extension Term
or the Second Extension Term, as the case may be; and

               (iv) Tenant shall have no right to extend the term of this
Lease for the Second Extension Term if Tenant has not elected to extend the term
of this Lease for the First Extension Term in accordance with the provisions of
this Article 40.

     40.2 The Annual Net Rent for the Premises for the First Extension Term and
the Second Extension Term shall be an amount equal to the greater of (a) the
annual fair market rental value of the Premises (the "Fair Market Rent") on the
date that is fifteen (15) months prior to the commencement date of the First
Extension Term or the Second Extension Term, as the case may be, and (b) the
Annual Net Rent payable by Tenant on the Expiration Date or the expiration date
of the First Renewal Term, as the case may be (the greater value of (a) and (b)
being hereinafter referred to as the "Rental Value"). In determining the Fair
Market Rent hereunder, the arbitrators shall consider all then relevant factors.
Landlord shall notify Tenant of its determination of the Fair Market Rent for
the Premises (each, a "Rent Notice") within thirty (30) days after receipt of an
Extension Notice.

     40.3 In the event Tenant gives an Extension Notice in accordance with the
provisions of Section 40.1 hereof and Tenant disagrees with the determination of
Fair Market Rent set forth in the Rent Notice, Tenant shall notify Landlord of
such fact in writing within fifteen (15) days after receipt of a Rent Notice,
and Landlord and Tenant will, within thirty (30) days after Lessee's receipt of
such Rent Notice, use reasonable efforts to mutually agree on the Fair Market
Rent for the Premises. If Landlord and Tenant are unable to agree on the Fair
Market Rent within such thirty (30) day period as aforesaid then either Landlord
or Tenant may initiate the arbitration process provided for herein by giving
notice to that effect to the other, and the party so initiating the arbitration
process (such party hereinafter referred to as the "Initiating Party") shall
specify in such notice the name and address of the person designated to act as
an arbitrator on its behalf. Within fifteen (15) Business Days after the
designation of an arbitrator, the other party (hereinafter referred to as the
"Other Party") shall give notice to the Initiating Party specifying the name and
address of the person designated to act as an arbitrator on its behalf. If the
Other Party fails to notify the Initiating Party of the appointment of its
arbitrator within the time above specified, then the determination of the
arbitrator designated by the Initiating Party shall be conclusive and binding.
The two arbitrators so chosen shall meet within ten (10) Business Days after the
second arbitrator is appointed and if, within ten (10) Business Days after the
second arbitrator is appointed, the two arbitrators shall not agree, they shall
together appoint a third arbitrator. In the event of their being unable to agree
upon such appointment within ten (10) Business Days after the appointment of the
second arbitrator, the third arbitrator shall be selected by the parties
themselves if they can agree thereon within a further period of ten (10)
Business Days. If the parties do not so agree, then either party, on behalf of
both and on notice to the other, may request such appointment by the American
Arbitration Association (or organization successor thereto) in accordance with
its rules then

                                 38
<PAGE>

prevailing or if the American Arbitration Association (or such successor
organization) shall fail to appoint said third arbitrator within ten (10)
Business Days after such request is made, then either party may apply, on notice
to the other, to the Superior Court for the judicial district of
Stamford-Norwalk, Connecticut (or any other court having jurisdiction and
exercising functions similar to those now exercised by said Court) for the
appointment of such third arbitrator.

          (a) Each party shall pay the fees and expenses of the one of the two
original arbitrators appointed by or for such party, and the fees and expenses
of the third arbitrator and all other expenses (not including the reasonable
attorneys' fees, reasonable witness fees and similar expenses of the parties,
which shall be borne separately by each of the parties) of the arbitration shall
be borne by the parties equally.

          (b) Except as otherwise expressly set forth, the majority of the
arbitrators shall determine the Fair Market Rent of the Premises and render a
written report of their determination to both Landlord and Tenant within twenty
(20) Business Days of the appointment of the first two arbitrators or thirty
(30) days from the appointment of the third arbitrator if such third arbitrator
is appointed pursuant to this Section 40.3.

          (c) Each of the arbitrators selected as herein provided shall have
at least ten (10) years experience in the leasing and renting of office space in
first-class office buildings or parks in Fairfield County, Connecticut.

          (d) In the event Landlord or Tenant initiates the arbitration
process pursuant to this Section 40.3 and as of the commencement date of any of
the Extension Terms the amount of the Fair Market Rent has not been determined,
Tenant shall pay the amount that Tenant was required to pay in the month
immediately preceding such commencement date until such determination has been
made and when such determination has been made, it will be retroactive as of the
commencement date of the applicable Extension Term and any deficiency shall be
paid by Tenant to Landlord within thirty (30) days after the date of such
determination with interest thereon at the Prime Rate and any overpayment shall
be credited by Landlord to Tenant against the next installment(s) of Annual Net
Rent and Additional Rent payable hereunder.

          (e) If Landlord notifies Tenant that the Rental Value for the First
or the Second Extension Term shall be the amount set forth in clause (b) of
Section 40.2 hereof, then the provisions of Section 40.3 hereof shall be
inapplicable to such Extension Term and shall have no force or effect for such
Extension Term.

     40.4 Except as provided in Section 40.2 hereof, Tenant's occupancy of the
Premises during the Extension Terms shall be on the same terms and conditions as
are in effect immediately prior to the expiration of the initial Term or the
First Extension Term, as the case may be; provided, however, that Landlord shall
not be required to renovate the Premises or provide any allowance therefor, and
after the Second Extension Term Lessee shall have no further right to extend the
term of this Lease pursuant to this Article 40.

     40.5 If Tenant does not send an Extension Notice pursuant to the
provisions of Section 40.1 hereof, this Article 40 shall have no force and
effect and shall be deemed deleted from this Lease.

     40.6 If this Lease is renewed for the First Extension Term or the Second
Extension Term then in each instance Landlord or Tenant can request the other
party hereto to execute an instrument in form for recording setting forth the
exercise of Tenant's right to extend the term of this Lease and the last day of
the First Extension Term or Second Extension Term, as applicable.

     40.7 If Tenant exercises its right to extend the terms of this Lease for
the First Extension Term and/or the Second Extension Term pursuant to this
Article 40, the phrases "the term of this Lease" of "the term hereof" as used in
this Lease, shall be construed to include, when practicable, the First Extension
Term and/or the Second Extension Term, as the case may be.

                              ARTICLE 41

                       NEW PROVIDER INSTALLATIONS

     41.1 In the event the Tenant wishes at any time to utilize the services of
a telephone or telecommunications provider (a "TSP") whose equipment is not then
servicing the Building, no such TSP shall be permitted to install its lines or
other equipment within the Building without first securing the prior written
approval of the Landlord. Landlord's approval shall not be deemed any kind of
warranty or representation by Landlord, including, without limitation, any
warranty or representation as to the suitability, competence, or financial
strength of the TSP. If all of the following conditions are satisfied, Landlord
shall give its approval: (a) Landlord shall incur no expense whatsoever with
respect to any aspect of the TSP's provisions of its services, including without
limitation, the costs of installation, materials and services; (b) prior to
commencement of any work in or about the Building by the TSP, the TSP shall
supply Landlord with such written indemnities,

                                 39
<PAGE>

insurance, financial statements, and such other items as Landlord reasonably
determines to be necessary to protect its financial interests and the interests
of the Building relating to the proposed activities of the TSP; (c) the TSP
agrees in writing to abide by such rules and regulations, building and other
codes, job site rules and such other requirements as are reasonably determined
by Landlord to be necessary to protect the interest of the Building, the tenants
in the Building, and Landlord, in the same or similar manner as Landlord has the
right to protect itself and the Building with respect to proposed Alterations as
described in this Lease, provided that any such rules and regulations are no
more restrictive against Tenant than those imposed on other tenants in the
Building; (d) Landlord reasonably determines that there is sufficient space in
the Building for the placement of all of the TSP's equipment and materials; and
(e) all of the foregoing matters are documented in a written agreement between
Landlord and the TSP, the form and content of which is reasonably satisfactory
to Landlord (a "TSP Agreement").

     41.2 The following provisions shall apply to any approved TSP's activities
in the Building:

          (a) Prior to installation, Landlord shall have the right to approve
the type, size, height and weight of the TSP's equipment (the "Equipment"). The
Equipment shall only be installed in locations approved by Landlord, which
approval Landlord shall not be unreasonably withheld with respect to locations
within the Demised Premises, and only in accordance with plans and
specifications that have been approved by Landlord. Landlord shall not be deemed
to have unreasonably withheld such consent if no adequate location within the
Demised Premises is available.

          (b) Tenant or the TSP shall pay all reasonable out of pocket costs
and expenses incurred by Landlord in reviewing, approving, and supervising the
installation of the Equipment including, without limitation, architects',
engineers' and contractors' fees and expenses, and attorneys' fees for
Landlord's review and drafting of the TSP Agreement. Tenant and the TSP shall be
solely responsible for the cost of installation, operation, maintenance and
repair of the Equipment and Tenant or the TSP shall keep the Equipment in good
condition and make all necessary or appropriate repairs and replacements thereto
subject to the appropriate provisions of this Lease. Tenant or the TSP shall be
responsible for obtaining any permits and licenses required to install and
operate the Equipment. Landlord makes no representation or warranty that
applicable Laws permit the installation or operation of the Equipment at the
Building. The rights granted to the TSP shall be utilized by the TSP in a manner
which will not unreasonably disturb the occupancy of the other tenants,
licensees or occupants of the Building or Landlord's or any other tenant's or
occupant's business operations.

          (c) Tenant agrees that the Equipment shall be of a type and
frequency which will not cause interference to any other party or any equipment
of any other party including, without limitation, Landlord, other tenants,
licensees and occupants of the Building for communications or any other
purposes; any other tenants, licensees; or occupants of the Building; or any
equipment utilized in the Building. In the event that the Equipment causes or is
believed to cause any such interference, upon receipt of notice from Landlord of
such interference, Tenant or the TSP will take all steps necessary to correct
and eliminate the interference. If the interference is not eliminated within six
(6) hours from receipt of such notice then, upon request from Landlord, Tenant
or the TSP shall immediately cease using the Equipment pending resolution of the
interference.

          (d) The Equipment shall only be utilized by Tenant and the TSP and
only to provide services to the Premises in connection with the operation of
Tenant's normal business in the Premises as more particularly described in this
Lease. The Equipment shall not be utilized for any other purpose or to provide
any services to any other tenants of or space in the Building or to any other
locations other than the Building. The TSP may not market or provide services to
other tenants of the Building.

          (e) Tenant or the TSP shall, at Tenant's or the TSP's sole cost and
expense and subject to the provisions of Section 4.1 hereof, obtain any
electricity necessary and sufficient to allow the TSP to utilize the Equipment
directly from the utility company furnishing electricity to the Building or, if
electricity to the Demised Premises is separately metered, through Tenant's
meter for the Demised Premises, if feasible. Upon prior notice, Landlord shall
promptly provide Tenant and the TSP access to the Equipment, accompanied by a
representative of Landlord, if Landlord shall so desire, during normal business
hours and during non-business hours if an emergency arises. The TSP shall agree
to hold Landlord, and its officers, directors, employees and agents harmless
from and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees) arising directly out of any act or omission at the
Building by the TSP or the TSP's employees or agents. The TSP shall agree, at
its sole costs and expense to carry public liability insurance, naming Landlord
and any mortgagee of the Building as additional insureds. The amount of such
insurance for bodily injury and property damage liability shall not be less than
a combined single limits of five million and 00/100 dollars ($5,000,000.00) for
each occurrence and a ten million and 00/100 ($10,000,000.00) aggregate limit.
The TSP shall agree to deliver to Landlord evidence of such insurance prior to
obtaining access to the Building. Landlord shall be entitled to withhold access
to the Building from the TSP until such evidence is delivered to Landlord.

          (f) Tenant's and the TSP's use of the Equipment and the Equipment
Space shall be subject and subordinate to all of the provisions to this Lease
except as expressly modified by the terms and provisions of this Article 41 and

                                 40
<PAGE>

the TSP Agreement.

          (g) Landlord shall have the right to cause the TSP to relocate the
Equipment from the point of installation to another area on the roof of the
Building, provided that Landlord shall reimburse the TSP for the reasonable
out-of-pocket costs of such relocation within thirty (30) days after billing and
the relocation shall not have a material adverse impact on the use and operation
of, or the service provided by, the Equipment.

          (h) In the event that either Tenant or the TSP, with or without the
knowledge of Tenant, shall default under this Article 41 or the TSP Agreement,
Landlord shall have the right to terminate Tenant's rights under this Article 41
and the TSP's rights under the applicable TSP Agreement by serving a three (3)
days' notice of termination upon Tenant, and may require the TSP to immediately
cease use of and remove the Equipment and/or may avail itself of any and all
remedies provided by the TSP Agreement or at law. Upon the termination of a TSP
Agreement or upon the expiration or other termination of this Lease, if
requested by Landlord, Tenant or the TSP shall remove the Equipment from the
Building and repair all damage caused thereby and otherwise restore the Building
to the condition existing prior to such installation in a good and workable
manner at Tenant's or the TSP's sole cost sand expense and Tenant and TSP shall
have no further rights hereunder or under the TSP Agreement. In the event that
Tenant fails to remove such Equipment within fifteen (15) days of Landlord's
request thereof, Landlord shall have the right to remove such Equipment and
Tenant or the TSP shall jointly and severally be responsible to reimburse
Landlord for the cost of such removal, as Additional Rent with respect to
Tenant.

                              ARTICLE 42

                        RIGHT OF FIRST REFUSAL

     42.1 Provided that this Lease is in full force and effect and Tenant is
not in default hereunder, then Tenant shall have a one-time right of first
refusal with regard to the lease of any space on the third floor of the
Building. In the event that Landlord receives an offer for the lease of any of
such space that Landlord intends to accept, Landlord shall so notify Tenant,
which notice shall set forth all of the material terms and conditions of such
offer. Tenant shall have a period of five (5) days after receipt of Landlord's
notice in which to notify Landlord that it has elected to lease the space in
question. If Tenant so notifies Landlord, then Landlord and Tenant shall
promptly thereafter enter into a lease for such space, which lease shall reflect
the terms and conditions contained in Landlord's notice, and shall otherwise be
consistent with this Lease. If Tenant fails to so notify Landlord within said
five (5) day period, time being of the essence, then Tenant shall have no
further rights, with respect to the space in question, under this Article 42.

                              ARTICLE 43

                               SIGNAGE

     43.1 Tenant shall be listed on the Building directory in the Building
lobby on a non-discriminatory, pro-rata basis with other tenants of the Building
and shall be listed on directional signage outside of the Building in accordance
with Landlord's signage program. In addition, Tenant shall be listed on all
signage by the elevators in accordance with Landlord's signage program. Landlord
will also provide reasonable directional signage in the north wing of the
Building to direct Tenant's visitors to enter the Demised Premises through the
north wing.

     43.2 Landlord agrees that as long as this Lease is in full force and
effect and no Event of Default exists, then Landlord will not name the Building
for any entity other than Louis Dreyfus Corporation.

                              ARTICLE 44

                            REPRESENTATIONS

     44.1 Landlord represents that, to the best of Landlord's knowledge, there
are no hazardous waste conditions involving the Land or Building that violate
any Laws applicable thereto or that require remediation under any Law applicable
thereto.

                              ARTICLE 45

                        SATELLITE DISH PROVISIONS

     45.1 Satellite Dishes. So long as this Lease remains in effect, Tenant
shall be entitled to install, operate and maintain on the roof of the Building,
at Tenant's cost, up to four (4) satellite or microwave dishes (the "Dishes"),
subject

                                 41
<PAGE>

to the terms and conditions of this Article 45. Any Dishes installed by Tenant
on the roof of the Building may only be used by Tenant for the purpose of
communications among Tenant's offices or with Tenant's customers, suppliers and
other parties with whom Tenant conducts business (provided that in no event
shall Tenant utilize the Dishes to provide any services to any other tenants of
the Building, or to any other third parties) and no third party provider may
install any Dishes on the roof of the Building as a result of this Article 45
unless such third party provider and Landlord execute a separate agreement
permitting the same.

     45.2 Intentionally Omitted.

     45.3 Utility and Other Charges. Tenant shall pay for all utilities
consumed to install, maintain, operate and remove the Dishes and associated
equipment, together with the cost of any engineers or consultants employed by
Landlord to review or monitor same, all as determined by Landlord, to the extent
not separately metered. Tenant shall be responsible for all costs associated
with such metering and electrical consumption of the Dishes and associated
equipment, including, but not limited to the cost of installing, maintaining,
repairing and reading the metering devices and subpanels. Tenant shall pay all
taxes or other charges attributable to the Dishes, including, without
limitation, any increase in the Building's real property tax that are directly
attributable to Tenant's Dishes.

     45.4 Installation of the Dishes. Prior to the installation of the Dishes,
Landlord shall have the right to approve the type, size, height, weight and
location of the Dishes and the manner and method of installation and removal of
the Dishes and related equipment, including that any penetration of the roof
membrane of the Building is done in a manner that is acceptable to Landlord and
does not compromise Landlord's roof warranty. If Landlord elects to hire
structural, mechanical, roofing and/or other engineers or consultants to review
such plans and specifications, Tenant shall reimburse Landlord for the
reasonable costs thereof within thirty (30) days after demand from Landlord. All
installations by Tenants under this Article 45 shall be subject to such
reasonable rules, regulations and requirements as Landlord shall implement from
time to time. Landlord hereby approves one (1) Dish of not more than 2.4 meters
in diameter and three (3) Dishes of not more than 1.8 meters in diameter each.

     45.5 Governmental Approvals. Prior to the installation of the Dishes and
related equipment, Tenant shall secure and shall at all times thereafter
maintain all required approvals and permits of the Federal Communications
Commission and all other government authorities having jurisdiction over the
Dishes, the Building and/or Tenant's business, including its communications,
operations and facilities. Tenant shall at all times comply with all Laws
relating to the installation, maintenance, height, location, use, operations,
and removal of the Dishes and related equipment and shall fully indemnify
Landlord against any loss, cost, or expense which may be sustained or incurred
by it as a result of the installation, maintenance, operation, or removal of the
Dishes and equipment, except to the extent caused by the gross negligence or
willful misconduct of Landlord's agents, employees or contractors. Landlord
makes no representation that applicable Laws permit the installation or
operation of the Dishes at the Building.

     45.6 Access to the Roof and Building. Tenant and Tenant's agents,
employees and contractors shall have the right, to be exercised as herein set
forth, to enter upon the roof of the Building for the sole purpose of gaining
access to the Tenant's installations. In addition, Tenant shall have the right,
to be exercised as herein set forth, to install such equipment conduits, cables
and materials (hereinafter called "the connecting equipment") in shafts, ducts,
conduits, chases, utility closets and other facilities of the Building as
designated by Landlord as is reasonably necessary to connect the Dishes to
Tenant's other machinery and equipment in other parts of the Building, subject
to the requirements of the Laws and subject to the connecting equipment not
over-burdening such shafts, ducts, conduits, chases, utility closets and other
facilities. Tenant shall have the further right of access to the areas where
such connecting equipment is located for the purposes of maintaining, repairing,
testing and replacing the connecting equipment; provided, however, Tenant shall
notify Landlord each time Tenant requires such access, and provided further that
such access and installations do not cause damage to or interfere with the
operation or maintenance of any part of the Building or with any other tenant's
operation.

     45.7 Notice. Anything herein to the contrary notwithstanding, Tenant shall
notify Landlord each time

                                 42
<PAGE>

Tenant desires to enter upon the roof of the Building or the areas outside the
Demised Premises where Tenant's related equipment is located, and Tenant shall
enter upon the roof only at such times, in such manner and under such
circumstances as shall not cause damage or endangerment of life or limb and only
when accompanied by a representative of Landlord. Tenant shall reimburse
Landlord with 15 days after receipt of Landlord's invoice thereof, along with
bills therefor for the cost or repairs of any damage to the Building directly or
indirectly caused by Tenant's installations or the operations, maintenance or
removal thereof.

     45.8 Maintenance of Dishes and Equipment. Tenant, at its expense, shall be
solely responsible for and shall maintain the Dishes and related equipment in a
safe, structurally sound, clean and sightly condition and shall indemnify and
save harmless Landlord against all liens and claims of mechanics and materialmen
furnishing labor and materials in the construction and maintenance of same,
except to the extent caused by Landlord's negligence or willful misconduct.

     45.9 Indemnity; Insurance. Tenant agrees to defend, indemnify and save
harmless Landlord and to assume all liability for death or injury to any persons
and all liability for loss, damage or injury to any property incurred or
sustained by Tenant arising from, growing out of or resulting from or in
connection with Tenant's installation of the Dishes or Tenant's use of the roof
of the Building or any other areas in the Building where Tenant's related
equipment is located, including costs, attorney's fees and other expenses
incurred by Landlord in defending any such claim, except to the extent caused by
Landlord's negligence or willful misconduct. All of Tenant's insurance
obligations under Article 15 hereof shall apply to the Dishes and Tenant's use
of the roof and Building under this Article 45.

     45.10 Waiver and Release. Tenant hereby waives and releases all claims
against Landlord its officers, directors, agents, employees and servants, and
agrees that they shall not be liable for injury to person or damage to property
sustained by Tenant or by an occupant of the Building or any other person
occurring in or about the Building resulting directly or indirectly from any
existing or future condition, defect, matter or thing in the Building or any
part of it or from equipment or appurtenance becoming out of repair, or from any
occurrence, act, or from the negligence or omission of any tenant or occupant of
the Building or of any other person, except to the extent that the same is
caused by the negligence of Landlord (but subject to Section 15.9(c) hereof).

     45.11 Non-Exclusive Rights. The rights of Tenant hereunder shall not be
deemed to give to Tenant the exclusive right to use the roof of the Building and
shall not preclude Landlord from granting the right to use the roof of the
Building to others. The rights of Tenant hereunder shall be exercised without
causing interference with the activities being carried on by others with the
same or similar rights. Tenant shall not change or materially alter the Dishes
or related equipment agreed to herein without the prior written consent of
Landlord. Tenant agrees to use Tenant's Dishes in a manner so as not to
unreasonably interfere with Landlord's existing equipment or any existing
equipment of any existing tenant.

     45.12 Relocation of Dishes. Landlord shall have the right to cause Tenant
to relocate the Dishes from the point of installation to another area on the
roof of the Building, provided that Landlord shall reimburse Tenant for the
reasonable out-of-pocket costs of such relocation within thirty (30) days after
billing and the relocation shall not have a material adverse impact on Tenant's
use and operation of the relocated Dishes.

     45.13 Removal. Any equipment installed by Tenant pursuant to this Article
45 shall remain Tenant's property at the termination of this Lease, at which
time the Dishes and the related equipment installed under the terms of this
Article 45 shall be removed by Tenant, at Tenant's sole cost and expense, and
Tenant shall restore the roof and the Building to as good condition as existed
immediately prior to installation of the Dishes and related equipment.

                              ARTICLE 46

                              EXPANSION

     46.1 Provided that this Lease is in full force and effect and Tenant is
not in default hereunder, Tenant shall have the right, by written notice to
Landlord on or before October 20, 2000, time being of the essence, to lease all
or a

                                 43
<PAGE>

portion of the third floor of the Building that is not presently covered by this
Lease or leased to John W. Henry and Company, Inc. (such balance of the third
floor being shown on Schedule B attached hereto as "Expansion Area"), on the
following terms and conditions:

          (a) Tenant's exercise notice must specify the portion of the
Expansion Area that Tenant wishes to lease. If Tenant wishes to lease less than
all of the Expansion Area, then the portion thereof that Tenant does not lease
must be at least 10,000 square feet. If Tenant elects to lease less than all of
the Expansion Area, then Landlord shall designate the precise location and
configuration of the portion of the Expansion Area that Tenant will lease, so
that the portion of the Expansion Area that Tenant does not lease will be a
marketable space, taking into consideration, among other things, the size,
configuration and access thereto.

          (b) The portion of the Expansion Area that Tenant elects to lease
under this Article 46 shall be hereinafter referred to as the "Expansion Space".
The Expansion Space shall be part of the Demised Premises for all purposes
hereunder as of Tenant's election to lease the same and Landlord's designation
of the location and configuration of the same, and, as of such date, the
Rentable Area of the Demised Premises shall be increased to include the Rentable
Area of the Expansion Space and Landlord and Tenant shall promptly execute an
amendment to this Lease to reflect the inclusion of the Expansion Space into the
Demised Premises.

                              ARTICLE 47

                          RISERS AND CONDUITS

     47.1 Tenant shall have the right, at its sole cost, to install, during the
performance of the Tenant Improvements, four (4) conduits of four (4) inches
each for data and telecommunications, from the point of entry of such data and
telecommunications lines into the Building to the Demised Premises, and three
(3) conduits for two and one half (2 1/2) inch risers from the Demised Premises
to the roof of the Building. All such conduits and risers shall be in locations
designated by Landlord, and Tenant shall be responsible for all costs of
installing such conduits and risers. No such conduits or risers shall involve
any penetration of the roof membrane of the Building except in a manner
acceptable to Landlord and in a manner that does not compromise Landlord's roof
warranty.

     47.2 The conduit and riser space provided under Section 47.1 above shall
constitute all of the conduit and riser space that Tenant shall be entitled to
under this Lease notwithstanding any mention of conduit or riser rights under
other Articles of this Lease, provided that if Tenant requires additional
conduits or risers, Landlord shall permit the same, at Tenant's sole cost, as
long as there is room in the Building for the same, as determined by Landlord in
its good faith discretion, provided that Landlord may require that Tenant remove
any such additional conduits or risers, and restore the affected areas of the
Building, at Tenant's cost at the expiration or sooner termination of this
Lease.

                              ARTICLE 48

                          EMERGENCY GENERATOR

     48.1 Subject to Tenant complying with Article 12 hereof (including without
limitation, Landlord's right to approve the plans and specifications for
Tenant's generator), Tenant shall have the right, at its cost, to install an
emergency generator at the Building, in a location designated by Landlord.
Tenant shall, at its sole cost, be responsible for maintaining and repairing
such generator and removing such generator and restoring the affected portions
of the Building to their condition prior to installation thereof, at the
expiration or sooner termination of this Lease. The provisions of Section 15.5
of this Lease shall apply to such generator and Tenant's operation and
maintenance thereof. In the event that the generator is located on the roof of
the Building, then Tenant shall be responsible for any damage caused by any
leakage that results from any roof penetrations made by Tenant in connection
with the generator, and shall take such measures as are necessary to prevent any
vibrations or noise from the generator from being perceptible from within the
Building.

                                 44
<PAGE>

     IN WITNESS WHEREOF, Landlord and Tenant have respectively executed this
Lease as of the day and year first above written.

                         20 WESTPORT HOLDINGS L.L.C., Landlord

_________________________    By:________________________________________________

                                PANAMSAT CORPORATION, Tenant

_________________________

_________________________    By:________________________________________________
                                James W. Cuminale
                                Its Executive Vice President and General Counsel

_________________________    By:________________________________________________
                                Michael J. Inglese
                                Its Senior Vice President and CFO

Tenant's Federal Tax Identification Number is________________________

STATE OF CONNECTICUT )
                     )  ss:
COUNTY OF            )

     Personally appeared the said __________________ of said 20 Westport
Holdings L.L.C., signer and sealer of the foregoing instrument, and acknowledged
the same to be his/her free act and deed and the free act and deed of said 20
Westport Holdings L.L.C., before me.

                                _________________________________
                                Notary Public
                                My Commission Expires:

STATE OF CONNECTICUT )
                     )  ss:
COUNTY OF            )

     Personally appeared the said James W. Cuminale, Executive Vice President
and General Counsel of said PANAMSAT CORPORATION, signer and sealer of the
foregoing instrument, and acknowledged the same to be his/her free act and deed
and the free act and deed of said PANAMSAT CORPORATION, before me.

                                _________________________________
                                Notary Public
                                My Commission Expires:

STATE OF CONNECTICUT )
                     )  ss:
COUNTY OF            )

     Personally appeared the said Michael J. Inglese, Senior Vice President and
CFO of said PANAMSAT CORPORATION, signer and sealer of the foregoing instrument,
and acknowledged the same to be his/her free act and deed and the free act and
deed of said PANAMSAT CORPORATION, before me.

                                _________________________________
                                Notary Public
                                My Commission Expires:

                                 45
<PAGE>

                             SCHEDULE A-1

Parcel 1 as shown on the map referred to on Schedule A-2.

                                 1
<PAGE>

                             SCHEDULE A-2

     Map of Property Prepared for 10 Westport Holdings at Wilton, Connecticut,
Scale 1" = 100' dated July 10, 1991 prepared by Roland J. Gardner, Land
Surveyor, Wilton, Conn., certified substantially correct by Rolland H. Gardner,
Conn. Re. No. 5179, which map is on file in the office of the Clerk of the Town
of Wilton as Map #4719.

                                 1

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