Document:

<PAGE>

                                                                   Exhibit 10.33

                         MULTIPLE LINE EXCESS OF LOSS
                             REINSURANCE AGREEMENT
                                 NO. TM696A,B

                           EFFECTIVE JANUARY 1, 2000

                                    between

                      AMERICAN MERCURY INSURANCE COMPANY
                            Los Angeles, California

                                      and

                     SWISS REINSURANCE AMERICA CORPORATION
                               Armonk, New York
<PAGE>

        MULTIPLE LINE EXCESS OF LOSS REINSURANCE AGREEMENT NO. TM696A,B

<TABLE>
<CAPTION>
ARTICLE         CONTENTS                                              PAGE
-------         --------                                              ----
<S>             <C>                                                   <C>
                PREAMBLE                                                 1
I               INTENT                                                   1
II              BUSINESS COVERED                                         1
III             EFFECTIVE DATE AND TERMINATION                           2
IV              TERRITORY                                                2
V               ULTIMATE NET LOSS                                        3
VI              LOSS IN EXCESS OF POLICY LIMITS                          3
VII             EXTRA CONTRACTUAL OBLIGATIONS                            4
VIII            DEFINITION OF RISK                                       5
IX              EXCLUSIONS                                               5
X               LOSS OCCURRENCE                                         12
XI              REPORTS AND REMITTANCES                                 14
XII             CLAIMS                                                  15
XIII            SALVAGE AND SUBROGATION                                 15
XIV             ACCESS TO RECORDS                                       16
XV              TAXES                                                   16
XVI             CURRENCY                                                16
XVII            OFFSET                                                  17
XVIII           ERRORS OR OMISSIONS                                     17
XIX             SPECIAL ACCEPTANCE                                      17
XX              DISPUTE RESOLUTION                                      17
XXI             INSOLVENCY                                              19
XXII            SPECIAL TERMINATION                                     20
XXIII           AMENDMENTS                                              21
                SIGNATURES                                              22
</TABLE>

ATTACHMENTS:  EXHIBIT A - FIRST MULTIPLE LINE EXCESS OF LOSS COVER
              EXHIBIT B - SECOND MULTIPLE LINE EXCESS OF LOSS COVER

              INSOLVENCY FUNDS EXCLUSION CLAUSE
              POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE
              TOTAL INSURED VALUE EXCLUSION CLAUSE
              POLLUTION AND SEEPAGE EXCLUSION CLAUSE
              NUCLEAR INCIDENT EXCLUSION CLAUSE  - PHYSICAL DAMAGE -
               REINSURANCE - U.S.A.
              NUCLEAR INCIDENT EXCLUSION CLAUSE  - PHYSICAL DAMAGE -
               REINSURANCE - CANADA
              NUCLEAR INCIDENT EXCLUSION CLAUSE - REINSURANCE - NO. 4
              POLLUTION LIABILITY EXCLUSION CLAUSE - REINSURANCE
              NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY -
               REINSURANCE  - U.S.A.
              NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY -
               REINSURANCE - CANADA
<PAGE>

                         MULTIPLE LINE EXCESS OF LOSS
                             REINSURANCE AGREEMENT
                                 NO. TM696A,B
                 (hereinafter referred to as the "Agreement")

                                    between

                      AMERICAN MERCURY INSURANCE COMPANY
                            Los Angeles, California
                  (hereinafter referred to as the "Company")

                                      and

                     SWISS REINSURANCE AMERICA CORPORATION
                               Armonk, New York
                 (hereinafter referred to as the "Reinsurer")

ARTICLE I - INTENT
------------------

A. The Company will reinsure with the Reinsurer and the Reinsurer will accept
   from the Company such reinsurance in accordance with the terms and conditions
   set forth in Exhibits A and B which are attached hereto and made a part of
   this Agreement, such Exhibits being entitled for the purposes of
   identification as follows:

          EXHIBIT A - FIRST MULTIPLE LINE EXCESS OF LOSS COVER
          EXHIBIT B - SECOND MULTIPLE LINE EXCESS OF LOSS COVER

B. This Agreement is solely between the Company and the Reinsurer, and nothing
   contained in this Agreement shall create any obligations or establish any
   rights against the Reinsurer in favor of any person or entity not a party
   hereto.

C. The performance of obligations by both parties under this Agreement shall be
   in accordance with a fiduciary standard of good faith and fair dealing.

ARTICLE II - BUSINESS COVERED
-----------------------------

A. The Reinsurer shall indemnify the Company on an excess of loss basis in
   respect of the Company's Ultimate Net Loss paid or to be paid by the Company
   as a result of losses occurring during the term of this Agreement, for
   Policies in force as of January 1, 2000, and new and renewal Policies
   becoming effective on or after said date, subject to the terms and conditions
   contained herein.

                                      1.
<PAGE>

B. This Agreement is solely between the Company and the Reinsurer, and nothing
   contained in this Agreement shall create any obligations or establish any
   rights against the Reinsurer in favor of any person or entity not a party
   hereto.

C. The performance of obligations by both parties under this Agreement shall be
   in accordance with a fiduciary standard of good faith and fair dealing.

D. The term "Policies" shall mean each of the Company's binders, policies and
   contracts of insurance or reinsurance on the business covered hereunder.

E. Under this Agreement, the indemnity for reinsured loss applies only to the
   following Property and Casualty Business except as excluded under Article IX
   - Exclusions of this Agreement.

NAIC
CODE:   PROPERTY AND CASUALTY LINE OF BUSINESS:

04      Homeowners Section I and Section II

ARTICLE III - EFFECTIVE DATE AND TERMINATION
--------------------------------------------

A. This Agreement shall become effective with respect to losses occurring on and
   after 12:01 a.m., Pacific Standard Time, January 1, 2000, and shall remain in
   full force until terminated.  This Agreement may be terminated at any time by
   either party giving to the other 90 days prior written notice by certified
   mail of its intention to do so.

B. Upon termination of this Agreement, the Reinsurer shall be liable for losses
   occurring prior to the date of termination; however, the Reinsurer shall have
   no liability for losses occurring subsequent to the termination of this
   Agreement.

C. If this Agreement shall terminate while a Property loss covered under this
   Agreement is in progress, it is agreed that, subject to the other conditions
   of this Agreement, the Reinsurer shall indemnify the Company as if the entire
   loss had occurred during the time this Agreement is in force provided the
   loss covered hereunder started before the date of termination.

ARTICLE IV - TERRITORY
----------------------

This Agreement applies only to risks located and polices issued in the State of
Florida.

                                      2.
<PAGE>

ARTICLE V - ULTIMATE NET LOSS
-----------------------------

A. The term "Ultimate Net Loss" shall mean the actual sum paid or to be paid by
   the Company in settlement of losses or liability after making deductions for
   all recoveries, including subrogation,  salvages, and claims upon other
   reinsurances, whether collectible or not, which inure to the benefit of the
   Reinsurer under this Agreement, and shall include Loss Adjustment Expenses
   incurred by the Company.

B. As respects Casualty Business covered under this Agreement, the term
   "Ultimate Net Loss" shall include 90% of Extra Contractual Obligations, as
   defined herein, but only as respects business covered under this Agreement.

C. The term "Loss Adjustment Expenses" shall mean all expenses incurred by the
   Company in connection with the investigation, settlement, defense or
   litigation of any claim or loss covered by the Policies reinsured under this
   Agreement, but shall exclude the salaries and expenses of Company employees,
   office expenses and other overhead expenses.

D. The term "Declaratory Judgment Expenses" shall mean all legal expenses,
   incurred in the representation of the Company in litigation brought to
   determine the Company's defense and/or indemnification obligations, that are
   allocable to any specific claim or loss applicable to Policies subject to
   this Agreement.  In addition, the Company shall promptly notify the Reinsurer
   of any Declaratory Judgment Expenses subject to this Agreement.

E. All recoveries, salvages or payments recovered or received subsequent to a
   loss settlement under this Agreement shall be applied as if recovered or
   received prior to the aforesaid settlement and all necessary adjustments to
   the loss settlement shall be made by the parties hereto.

F. Nothing in this Article shall be construed to mean that losses are not
   recoverable hereunder until the Ultimate Net Loss of the Company has been
   ascertained.

ARTICLE VI - LOSS IN EXCESS OF POLICY LIMITS
--------------------------------------------

A. As respects Casualty Business covered under this Agreement, in the event the
   Company is liable to a policyholder as the result of a settlement or judgment
   rendered against the policyholder which is in excess of the Policy limit, 90%
   of that portion of the award made to the third party claimant which is in
   excess of the Company's Policy limit shall be added to the amount of the
   Company's Policy limit and the sum thereof shall be considered one loss,
   subject to the

                                      3.
<PAGE>

   provision in Paragraph B. below and all other provisions set forth in this
   Agreement.

B. With respect to coverage provided under this Article, recoveries from any
   insurance or reinsurance other than this Agreement, shall inure to the
   benefit of the Reinsurer and shall be deducted to arrive at the amount of the
   Company's Ultimate Net Loss.

ARTICLE VII - EXTRA CONTRACTUAL OBLIGATIONS
-------------------------------------------

This Article shall apply as respects Casualty Business covered under this
Agreement.

A. "Extra Contractual Obligations" are defined as those liabilities not covered
   under any other provision of this Agreement and which arise from the handling
   of any claim on business covered hereunder, such liabilities arising because
   of, but not limited to, the following: failure by the Company to settle
   within the Policy limit, or by reason of alleged or actual negligence, fraud
   or bad faith in rejecting an offer of settlement or in the preparation of the
   defense or in the trial of any action against its insured or reinsured or in
   the preparation or prosecution of an appeal consequent upon such action.

B. The date on which an Extra Contractual Obligation is incurred by the Company
   shall be deemed, in all circumstances, to be the date of the original
   accident, casualty, disaster or loss occurrence.

C. However, coverage hereunder as respects Extra Contractual Obligations shall
   not apply where the loss has been incurred due to the fraud of a member of
   the Board of Directors or a corporate officer of the Company acting
   individually or collectively or in collusion with any individual or
   corporation or any other organization or party involved in the presentation,
   defense or settlement of any claim covered hereunder.

D. Extra Contractual Obligations shall not include loss arising out of
   engineering or other services or any other non-claims related activity
   provided to the insured by the Company.

E. Recoveries, collectibles or retention from any other form of insurance or
   reinsurance including deductibles or self-insured retention which protect the
   Company against Extra Contractual Obligations shall inure to the benefit of
   the Reinsurer and shall be deducted from the total amount of Extra
   Contractual Obligations for purposes of determining the loss hereunder.

                                      4.
<PAGE>

ARTICLE VIII - DEFINITION OF RISK
---------------------------------

The Company shall be the sole judge of what constitutes one risk provided,
however, that:

A. A risk shall never be less than all insurable values within exterior walls
   and under one roof regardless of fire divisions, the number of Policies
   involved, and whether there is a single, multiple or unrelated named insureds
   involved in such risk.

B. When two or more buildings are situated at the same general location, the
   Company shall identify on its records at the time of acceptance by the
   Company, those individual buildings and all insurable values contained
   therein that are considered to constitute each risk.  If such identification
   is not made, each building and all insurable values contained therein shall
   be considered to be a separate risk.

C. A risk shall be determined from the standpoint of the predominant peril and
   such peril shall be noted in the Company's records.

ARTICLE IX - EXCLUSIONS
-----------------------

I. AS RESPECTS PROPERTY BUSINESS COVERED UNDER THIS AGREEMENT
   THIS AGREEMENT DOES NOT COVER:

A. THE FOLLOWING GENERAL CATEGORIES

   1. All Lines of Business not specifically listed in Article II - Business
      Covered.

   2. Policies issued with a deductible of $25,000 or more; provided this
      exclusion shall not apply to Policies which customarily provide a
      percentage deductible on the perils of earthquake or windstorm.

   3. Reinsurance assumed, except pro rata local agency reinsurance on specific
      risks.

   4. Ex-gratia Payments.

   5. Loss or damage occasioned by war, invasion, revolution,   bombardment,
      hostilities, acts of foreign enemies, civil war, rebellion, insurrection,
      military or usurped power, martial law, or confiscation by order of any
      government or public authority, but not excluding loss or damage which
      would be covered under a standard form of Policy containing a standard war
      exclusion clause.

                                      5.
<PAGE>

   6. Insolvency Funds as per the attached Insolvency Funds Exclusion Clause,
      which is made part of this Agreement.

   7. Pool, Syndicate and Association business as per the attached Pools,
      Associations and Syndicates Exclusion Clause, which is made part of this
      Agreement.

   8. Risks where the Total Insured Value, per risk, exceeds the figure
      specified as per the attached Total Insured Value Exclusion Clause, which
      is made part of this Agreement.

   9. System Performance.

B. THE FOLLOWING CLASSES OF BUSINESS AND TYPES OF RISKS

   1. Mortgage Impairment.

   2. Growing and/or standing crops.

   3. Mortality and Health covering birds, animals or fish.

   4. All onshore and offshore gas and oil drilling rigs.

   5. Petrochemical operations engaged in the production, refining or upgrading
      of petroleum or petroleum derivatives or natural gas.

   6. Satellites.

   7. All railroad business.

   8. As respects Inland Marine business:

      a.  Registered Mail and Armored Car Policies.
      b.  Jeweler's Block Policies.
      c.  Furrier's Customers Policies.
      d.  Rolling Stock.
      e.  Parcel Post when written to cover banks and financial institutions.
      f.  Commercial Negative Film Insurance.
      g.  Garment Contractors Policies.
      h.  Mining Equipment while underground.
      i.  Radio and Television Broadcasting Towers.
      j.  Motor Truck Cargo Insurance written for common carriers operating
          beyond a radius of 200 miles.

   9. Any collection of Fine Arts where the insured value is equal to or exceeds
      $1,000,000.

                                      6.
<PAGE>

C.  THE FOLLOWING PERILS

    1. Flood and/or Earthquake when written as such.

    2. Difference in Conditions, however styled.

    3. Pollution and Seepage as per the attached Pollution and Seepage Exclusion
       Clause which is made part of this Agreement.

    4. Nuclear Incident Exclusion Clauses which are attached and made part of
       this Agreement:

       a.  Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance -
           U.S.A.
       b.  Nuclear Incident Exclusion Clause - Physical Damage - Reinsurance -
           Canada.
       c.  Nuclear Incident Exclusion Clause - Reinsurance - No. 4.

D.  In the event the Company is inadvertently bound on any risk which is
    excluded under this Agreement and identified below, the reinsurance provided
    under this Agreement shall apply to such risk until discovery by the Company
    within its Home Office of the existence of such risk and for 30 days
    thereafter, and shall then cease unless within the 30 day period, the
    Company has received from the Reinsurer written notice of its approval of
    such risk.

    As respects Classes of Business and Types of Risks:

    Items 1 through 9 of Section B of this Article.

II. AS RESPECTS CASUALTY BUSINESS COVERED UNDER THIS AGREEMENT
    THIS AGREEMENT DOES NOT COVER:

A.  THE FOLLOWING GENERAL CATEGORIES

    1. Ex-gratia payments.

    2. Risks subject to a deductible or a self-insured retention excess of
       $25,000.

    3. Loss or damage caused directly or indirectly by: (a) enemy attack by
       armed forces including action taken by military, naval or air forces in
       resisting an actual or an immediately impending enemy attack; (b)
       invasion; (c) insurrection; (d) rebellion; (e) revolution; (f)
       intervention; (g) civil war; and (h) usurped power.

    4. Reinsurance assumed by the Company.

    5. Business derived from any Pool, Association, including Joint Underwriting
       Association, Syndicate, Exchange, Plan, Fund or

                                      7.
<PAGE>

       other facility directly as a member, subscriber or participant, or
       indirectly by way of reinsurance or assessments; provided this exclusion
       shall not apply to Automobile or Workers Compensation assigned risks
       which may be currently or subsequently covered hereunder.

   6.  Pollution Liability as per the attached Pollution Liability Exclusion
       Clause - Reinsurance.

   7.  Insolvency Funds as per the attached Insolvency Funds Exclusion Clause.

   8.  Nuclear Incident Exclusion Clauses which are attached and made part of
       this Agreement:

       a.  Nuclear Incident Exclusion Clause - Liability - Reinsurance - U.S.A.
       b.  Nuclear Incident Exclusion Clause - Liability - Reinsurance - Canada.
       c.  Nuclear Incident Exclusion  Clause - Reinsurance - No. 4.

B. THE FOLLOWING INSURANCE COVERAGES

   1.  Fiduciary Liability.

   2.  Fidelity and Surety.

   3.  Credit and Financial Guarantee.

   4.  Securities and Exchange Liability.

   5.  Retroactive coverage.

   6.  Personal and Commercial Excess or Umbrella  Liability.

   7.  Malpractice or Professional Liability except incidental Malpractice
       Liability.

   8.  Errors and Omissions Liability.

   9.  Directors' and Officers' Liability.

   10. Advertisers', Broadcasters' and Telecasters' Liability as respects
       Personal Injury Liability except as provided under Commercial Package
       Policies or Commercial General Liability Coverage Forms.

   11. Liquor Law Liability except Host Liquor Law Liability.

   12. Kidnap, Extortion and Ransom Liability.

                                      8.
<PAGE>

   13.  Boiler and Machinery Insurance.

   14.  Protection and Indemnity (Ocean Marine).

   15.  Personal Automobile Liability.

   16.  Automobile Collision.

   17.  Workers Compensation and Employers Liability.

C. THE FOLLOWING RISKS AS RESPECTS AUTOMOBILE LIABILITY AND AUTOMOBILE COLLISION

   1.   Vehicles used in or while in practice or preparation for, a prearranged
        racing, speed, exhibition  or demolition contest.

   2.   All vehicles classified as "Public Automobiles" except church buses,
        social service agency automobiles, van pools and vehicles used for the
        transportation of employees.

   3.   Fire, police, emergency  or municipal vehicles.

   4.   Motorcycles.

   5.   The rental or leasing of vehicles to others.

   6.   Logging trucks.

   7.   Vehicles regularly used to haul property of others and operating beyond
        a 200 mile radius.

   8.   Newspaper delivery trucks.

   9.   Vehicles engaged in the transportation or distribution of fireworks,
        fuses, explosives, ammunitions, natural or artificial fuel, gas, or
        liquefied petroleum gases or gasoline.

D. THE FOLLOWING AS RESPECTS LIABILITY OTHER THAN AUTOMOBILE

   1.   The manufacturing, mining, refining, processing, distribution,
        installation, removal or encapsulment of asbestos.

   2.   Risks involving known exposure to the following substances:

        a. dioxin.
        b. polychlorinated biphenols.
        c. asbestos.

                                      9.
<PAGE>

   3.   Liability as respects Products and Completed Operations:

        a.  The manufacture, labeling or re-labeling, importation or wholesale
            distribution of:
            (i)    Drugs or pharmaceuticals.
            (ii)   Cosmetics.
            (iii)  Herbicides, insecticides or pesticides.
            (iv)   Petrochemical or electrical equipment used for heating,
                   lighting or cooking.
            (v)    Industrial or toxic chemicals.
            (vi)   Valves, gaskets or seals of a hydraulic, petrochemical or
                   high pressure nature.
            (vii)  Medical supplies.
            (viii) Heavy machinery and equipment.
            (ix)   Power tools.
            (x)    Medical equipment used for diagnostic or life sustaining
                   purposes.
        b.  The manufacture or importing of motorized or self-propelled vehicles
            and equipment.
        c.  The manufacturing, importing, packing, canning, bottling or
            processing of foodstuffs.
        d.  The blending, mixing, processing or importing of animal feed.
        e.  The manufacture, sale, distribution, handling, servicing or
            maintenance of aircraft, aerospacecraft, missiles, satellites or any
            component or components thereof.

   4.   Ownership, operation or use of vessels exceeding 50 feet in length.

   5.   All railway operations except sidetrack agreements.

   6.   Amusement parks, carnivals or circuses.

   7.   Public assembly exposure in excess of 5,000.

   8.   Gas, electric and water utility companies.

   9.   Subaqueous operations.

   10.  Mining.

   11.  Blasting operations.

   12.  Demolition of buildings or structures in excess of two stories.

   13.  Shoring, underpinning or moving of buildings or structures.

   14.  Manufacture, sale, rental, lease, erection or repair of scaffolds.

                                      10.
<PAGE>

   15.  Construction of bridges, tunnels or dams.

   16.  a.  Manufacturers or importers of fireworks, fuses, or any substance, as
            defined and noted below, intended for use as an explosive.
        b.  Loading of fireworks, fuses, or any explosive substance defined
            below into containers for use as explosive objects, propellant
            charges or detonation devices and the storage thereof.
        c.  Manufacturers or importers of any product in which fireworks, fuses,
            or any explosive substance defined below is an ingredient.
        d.  Handling, storage, transportation or use of fireworks, fuses, or any
            explosive substance defined below.

        NOTE: An explosive substance is defined as any substance manufactured
        for the express purpose of exploding as differentiated from commodities
        used industrially and which are only incidentally explosive.

   17.  Manufacture, production, refining, storage, wholesale distribution or
        transportation of natural or artificial fuel, gas, butane, propane or
        liquefied petroleum gases or gasoline.

   18.  Onshore and offshore gas and oil drilling operations.

   19.  Ownership, maintenance or use of any airport or aircraft, including
        fueling, or any device or machine intended for and/or aiding in the
        achievement of atmospheric flight, projection or orbit.

   20.  Municipalities.

E. Those exclusions set forth under Items 6. and 17. of Section D. and Item 2.
   of Section E. shall not apply if the exposure is incidental to the regular
   operations of the insured covered hereunder.

F. In the event the Company is inadvertently bound on any risk which is
   excluded under this Agreement and identified below, the reinsurance
   provided under this Agreement shall apply to such risk until  discovery by
   the Company within its Home Office of the existence of such risk and for 30
   days thereafter, and shall then cease unless within the 30 day period, the
   Company has received from the Reinsurer written notice of its approval of
   such risk:

   1.   As respects Automobile Liability And Collision:

        Items 2. through 9. of Section C. of this Article.

   2.   As respects Liability Other Than  Automobile:

                                      11.
<PAGE>

ARTICLE X - LOSS OCCURRENCE
---------------------------

As respects Property Business covered under this Agreement:

A. The term "Loss Occurrence" shall mean the sum of all individual losses
   directly occasioned by any one disaster, accident or loss or series of
   disasters, accidents or losses arising out of one event which occurs within
   the area of one state of the United States or province of Canada and states
   or provinces contiguous thereto and to one another.  However, the duration
   and extent of any one Loss Occurrence shall be limited to all individual
   losses sustained by the Company occurring during any period of 168
   consecutive hours arising out of and directly occasioned by the same event
   except that the term "Loss Occurrence" shall be further defined as follows:

   1. As regards windstorm, hail, tornado, hurricane, cyclone, including ensuing
      collapse and water damage, all individual   losses sustained by the
      Company occurring during any period of 72 consecutive hours arising out of
      and directly occasioned by the same event.  However, the event need not be
      limited to one state or province or states or provinces contiguous
      thereto.

   2. As regards riot, riot attending a strike, civil commotion, vandalism and
      malicious mischief, all individual losses sustained by the Company,
      occurring during any period of 72 consecutive hours within the area of one
      municipality or county and the municipalities or counties contiguous
      thereto arising out of and directly occasioned by the same event.  The
      maximum duration of 72 consecutive hours may be extended in respect of
      individual losses which occur beyond such 72 consecutive hours during the
      continued occupation of an assured's premises by strikers, provided such
      occupation commenced during the aforesaid period.

   3. As regards earthquake (the epicentre of which need not necessarily be
      within the territorial confines referred to in the opening paragraph of
      this Article) and fire following directly occasioned by the earthquake,
      only those individual fire losses which commence during the period of 168
      consecutive hours may be included in the Company's Loss Occurrence.

   4. As regards Freeze, only individual losses directly occasioned by collapse,
      breakage of glass and water damage (caused by bursting of frozen pipes and
      tanks) may be included in the Company's Loss Occurrence.

B. For all Loss Occurrences the Company may choose the date and time when any
   such period of consecutive hours commences provided that it is not earlier
   than the date and time of the occurrence of the first recorded individual
   loss sustained by the Company arising out of that disaster, accident or loss
   and provided that only one such

                                      12.
<PAGE>

   period of 168 consecutive hours shall apply with respect to one event except
   for those Loss Occurrences referred to in 1. and 2. above, where only one
   such period of 72 consecutive hours shall apply with respect to one event,
   regardless of the duration of the event.

C. No individual losses occasioned by an event that would be covered by 72 hours
   clauses may be included in any Loss Occurrence claimed under the 168 hours
   provision.

As respects Casualty Business covered under this Agreement:

The term "Loss Occurrence" shall mean any accident or occurrence or series of
accidents or occurrences arising out of any one event and happening within the
term and scope of this Agreement. Without limiting the generality of the
foregoing, the term "Loss Occurrence" shall be held to include:

A. As respects Products Bodily Injury and Products Property Damage Liability,
   injuries to all persons and all damage to property of others occurring during
   a Policy Period and proceeding from or traceable to the same causative agency
   shall be deemed to arise out of one Loss Occurrence, and the date of such
   Loss Occurrence shall be deemed to be the commencing date of the Policy
   Period.  For the purpose of this provision, each annual period of a Policy
   which continues in force for more than one year shall be deemed to be a
   separate Policy Period.

B. As respects Bodily Injury Liability (other than Automobile and Products),
   said term shall also be understood to mean, as regards each original assured,
   injuries to one or more than one person resulting from infection, contagion,
   poisoning, or contamination proceeding from or traceable to the same
   causative agency.

C. As respects Property Damage Liability (other than Automobile and Products),
   said term shall also, subject to Provisions 1. and 2. below, be understood to
   mean loss or losses caused by a series of operations, events, or occurrences
   arising out of operations at one specific site and which cannot be attributed
   to any single one of such operations, events or occurrences, but rather to
   the cumulative effect of the same.  In assessing each and every Loss
   Occurrence within the foregoing definition, it is understood and agreed that:

   1. the series of operations, events or occurrences shall not extend over a
      period longer than 12 consecutive months; and

   2. the Company may elect the date on which the period of not exceeding 12
      consecutive months shall be deemed to have commenced.

                                      13.
<PAGE>

      In the event that the series of operations, events or occurrences extend
      over a period longer than 12 consecutive months, then each consecutive
      period of 12 months, the first of which commences on the date elected
      under 2. above, shall form the basis of claim under this Agreement.

D.    As respects those Policies of the Company which provide aggregate limits
      of liability, the total of all individual losses occurring during any one
      Policy year which proceed from or are traceable to the same causative
      agency.

ARTICLE XI - REPORTS AND REMITTANCES
------------------------------------

A.    The Company shall furnish the Reinsurer with all necessary data respecting
      premiums and losses for as long as one of the parties hereto has a claim
      against the other arising from this Agreement.

B.    Within 45 days after the close of each calendar month, the Company shall
      submit an account to the Reinsurer summarizing Subject Earned Premium for
      the Homeowners Portfolio, and the reinsurance premium due as respects this
      portfolio under Exhibits A and B. Such reinsurance premium shall be
      remitted within 45 days after the close of each calendar month.

C.    Payment by the Reinsurer of its portion of loss and Loss Adjustment
      Expenses paid by the Company shall be made by the Reinsurer to the Company
      within 15 days after proof of payment is received by the Reinsurer.

D.    As respects Property Business covered under this Agreement, the Company
      shall furnish the following to the Reinsurer with respect to occurrences
      designated as catastrophes by the Property Claim Services:

      1. Prompt preliminary estimate of amount recoverable from the Reinsurer;

      2. Within 30 days after the close of each quarter the amount of losses and
         Loss Adjustment Expenses paid, less all recoveries, including salvage
         and subrogation, at the end of each quarter segregated by Line of
         Business;

      3. Within 30 days after the close of each quarter the amount of losses and
         Loss Adjustment Expenses outstanding at the end of each quarter
         segregated by Line of Business.

                                      14.
<PAGE>

ARTICLE XII - CLAIMS
--------------------

A. The Company shall promptly notify the Reinsurer of each claim which may
   involve the reinsurance provided hereunder and of all subsequent developments
   relating thereto, stating the amount claimed and estimate of the Company's
   Ultimate Net Loss and Loss Adjustment Expenses.  Notwithstanding the
   provisions set forth in any other Article herein, prompt notification of loss
   shall be considered a condition precedent to liability under this Agreement.

B. As respects Casualty Business covered under this Agreement, the Company shall
   advise the Reinsurer of all claims which:

   1. Are reserved by the Company for an amount in excess of 50% of its
      retention;

   2. Originate from fatal injuries;

   3. Originate from the following kinds of bodily injury:

      a.  Brain injuries resulting in impairment of physical function;

      b.  Spinal injuries resulting in a partial or total paralysis of upper or
          lower extremities;

      c.  Amputation or permanent loss of use of upper or lower extremities;

      d.  Severe burn injuries;

      e.  Loss of sight in one or both eyes;

      f.  All other injuries likely to result in a permanent disability rate of
          50% or more.

C. The Company shall have the responsibility to investigate, defend or negotiate
   settlements of all claims and lawsuits related to Policies written by the
   Company and reinsured under this Agreement.  The Reinsurer, at its own
   expense, may associate with the Company in the defense or control of any
   claim, suit or other proceeding which involves or is likely to involve the
   reinsurance provided under this Agreement, and the Company shall cooperate in
   every respect in the defense of any such claim, suit or proceeding.

ARTICLE XIII - SALVAGE AND SUBROGATION
--------------------------------------

A. In the event of the payment of any indemnity by the Reinsurer under this
   Agreement, the Reinsurer shall be subrogated, to the extent of such payment,
   to all of the rights of the Company against any person or entity legally
   responsible for damages of the loss.  The Company

                                      15.
<PAGE>

   agrees to enforce such rights; but, in case the Company refuses or neglects
   to do so, the Reinsurer is hereby authorized and empowered to bring any
   appropriate action in the name of the Company or their policyholders or
   otherwise to enforce such rights.

B. From any amount recovered by subrogation, salvage or other means, there shall
   first be deducted the expenses incurred in effecting the recovery.  The
   balance shall then be used to reimburse the excess carriers in the inverse
   order to that in which their respective liabilities attached, before being
   used to reimburse the Company for its primary loss.

ARTICLE XIV - ACCESS TO RECORDS
-------------------------------

The Reinsurer or its duly authorized representatives shall have the right to
examine, at the offices of the Company at a reasonable time, during the currency
of this Agreement or anytime thereafter, all books and records of the Company
relating to business which is the subject of this Agreement.

ARTICLE XV - TAXES
------------------

The Company shall be liable for all taxes on premiums paid to the Reinsurer
under this Agreement, except income or profit taxes of the Reinsurer, and shall
indemnify and hold the Reinsurer harmless for any such taxes which the Reinsurer
may become obligated to pay to any local, state or federal taxing authority.

ARTICLE XVI - CURRENCY
----------------------

Wherever the word "dollars" or the "$" symbol is used in this Agreement, it
shall mean dollars of the United States of America, excepting in those cases
where the Policy is issued by the Company in Canadian dollars, in which case it
shall mean dollars of Canada.  In the event the Company is involved in a loss
requiring payment in United States and Canadian currency, the Company's
retention and the limit of liability of the Reinsurer shall be apportioned
between the two currencies in the same proportion as the amount of net loss in
each currency bears to the total amount of net loss paid by the Company.  For
the purposes of this Agreement, where the Company receives premiums or pays
losses in currencies other than United States or Canadian currency, such
premiums and losses shall be converted into United States dollars at the actual
rates of exchange at which the premiums and losses are entered in the Company's
books.

                                      16.
<PAGE>

ARTICLE XVII - OFFSET
---------------------

Each party to this Agreement together with their successors or assigns shall
have and may exercise, at any time, the right to offset any balance or balances
due the other (or, if more than one, any other).  Such offset may include
balances due under this Agreement and any other agreements heretofore or
hereafter entered into between the parties regardless of whether such balances
arise from premiums, losses or otherwise, and regardless of capacity of any
party, whether as assuming insurer and/or ceding insurer, under the various
agreements involved, provided however, that in the event of insolvency of a
party hereto, offsets shall only be allowed in accordance with the provisions of
Section 7427 of the Insurance Law of the State of New York to the extent such
statute or any other applicable law, statute or regulation governing such offset
shall apply.

ARTICLE XVIII - ERRORS OR OMISSIONS
-----------------------------------

Errors or omissions of a ministerial nature on the part of the Company shall not
invalidate the reinsurance under this Agreement, provided such errors or
omissions are corrected promptly after discovery thereof; but the liability of
the Reinsurer under this Agreement or any exhibits, addenda, or endorsements
attached hereto shall in no event exceed the limits specified herein nor be
extended to cover any risks, perils, lines of business or classes of insurance
generally or specifically excluded herein.

ARTICLE XIX - SPECIAL ACCEPTANCE
--------------------------------

Risks which are beyond the terms, conditions or limitations of this Agreement
may be submitted to the Reinsurer for special acceptance hereunder; and such
risks, if accepted in writing by the Reinsurer, shall be subject to all of the
terms, conditions and limitations of this Agreement, except as modified by the
special acceptance.  Premiums and losses derived from any special acceptance
shall be included with other data for rating purposes under this Agreement.

ARTICLE XX - DISPUTE RESOLUTION
-------------------------------

Part I - Choice Of Law And Forum

Any dispute arising under this Agreement shall be resolved in the State of New
York, and the laws of the State of New York shall govern the interpretation and
application of this Agreement.

                                      17.
<PAGE>

Part II - Mediation

If a dispute between the Company and the Reinsurer, arising out of the
provisions of this Agreement or concerning its interpretation or validity and
whether arising before or after termination of this Agreement has not been
settled through negotiation, both parties agree to try in good faith to settle
such dispute by nonbinding mediation, before resorting to arbitration.

Part III - Arbitration

A. Resolution of Disputes - As a condition precedent to any right arising
   hereunder, any dispute not resolved by mediation between the Company and the
   Reinsurer arising out of the provisions of this Agreement or concerning its
   interpretation or validity, whether arising before or after termination of
   this Agreement, shall be submitted to arbitration in the manner hereinafter
   set forth.

B. Composition of Panel - Unless the parties agree upon a single arbitrator
   within 15 days after the receipt of a notice of intention to arbitrate, all
   disputes shall be submitted to an arbitration panel composed of two
   arbitrators and an umpire chosen in accordance with Paragraph C hereof.

C. Appointment of Arbitrators - The members of the arbitration panel shall be
   chosen from persons knowledgeable in the insurance and reinsurance business.
   Unless a single arbitrator is agreed upon, the party requesting arbitration
   (hereinafter referred to as the "claimant") shall appoint an arbitrator and
   give written notice thereof by certified mail, to the other party
   (hereinafter referred to as the "respondent") together with its notice of
   intention to arbitrate.  Within 30 days after receiving such notice, the
   respondent shall also appoint an arbitrator and notify the claimant thereof
   by certified mail.  Before instituting a hearing, the two arbitrators so
   appointed shall choose an umpire.  If, within 20 days after the appointment
   of the arbitrator chosen by the respondent, the two arbitrators fail to agree
   upon the appointment of an umpire, each of them shall nominate three
   individuals to serve as umpire, of whom the other shall decline two and the
   umpire shall be chosen from the remaining two by drawing lots.  The name of
   the individual first drawn shall be the umpire.

D. Failure of Party to Appoint an Arbitrator - If the respondent fails to
   appoint an arbitrator within 30 days after receiving a notice of intention to
   arbitrate, the claimant's arbitrator shall appoint an arbitrator on behalf of
   the respondent, such arbitrator shall then, together with the claimant's
   arbitrator, choose an umpire as provided in Paragraph C. of Part III of this
   Article.

E. Involvement of Other Reinsurers - If more than one reinsurer is involved in
   the same dispute, all such reinsurers shall constitute

                                      18.
<PAGE>

   and act as one party for purposes of this Article and communications shall be
   made by the Company to each of the reinsurers constituting the one party;
   provided, however, nothing herein shall impair the right of such reinsurers
   to assert several, rather than joint, defenses or claims, nor be construed as
   changing the liability of the reinsurers under the terms of this Agreement
   from several to joint.

F. If the Company is involved in a dispute under the terms of this Agreement and
   in one or more separate disputes with one or more other reinsurers in which
   common questions of law or fact are in issue, the Company or the Reinsurer,
   at its option, may join with such other reinsurers in a common arbitration
   proceeding under the terms of this Article.  If the Company and such other
   reinsurers have commenced arbitration, the Reinsurer may at its option join
   such proceeding for the determination of the dispute between the Company and
   the Reinsurer.

G. Submission of Dispute to Panel - Unless otherwise extended by the arbitration
   panel or agreed to by the parties, each party shall submit its case to the
   panel within 30 days after the selection of the umpire.

H. Procedure Governing Arbitration - All proceedings before the panel shall be
   informal and the panel shall not be bound by the formal rules of evidence.
   The panel shall have the power to fix all procedural rules relating to the
   arbitration proceeding.  In reaching any decision, the panel shall give due
   consideration to the customs and usages of the insurance and reinsurance
   business.

I. Arbitration Award - The arbitration panel shall render its decision within 60
   days after termination of the proceeding, which decision shall be in writing,
   stating the reasons therefor.  The decision of the majority of the panel
   shall be final and binding on the parties to the proceeding.

J. Cost of Arbitration - Unless otherwise allocated by the panel, each party
   shall bear the expense of its own arbitrator and shall jointly and equally
   bear with the other parties the expense of the umpire and the arbitration.

ARTICLE XXI - INSOLVENCY
------------------------

A. In the event of insolvency of the Company, the reinsurance provided by this
   Agreement shall be payable by the Reinsurer on the basis of the liability of
   the Company as respects Policies covered hereunder, without diminution
   because of such insolvency, directly to the Company or its liquidator,
   receiver, conservator or statutory successor except as provided in Sections
   4118(a)(1)(A) and 1114(c) of the New York Insurance Law.

                                      19.
<PAGE>

B. The Reinsurer shall be given written notice of the pendency of each claim or
   loss which may involve the reinsurance provided by this Agreement within a
   reasonable time after such claim or loss is filed in the insolvency
   proceedings.  The Reinsurer shall have the right to investigate each such
   claim or loss and interpose, at its own expense, in the proceedings where the
   claim or loss is to be adjudicated, any defense which it may deem available
   to the Company, its liquidator, receiver, conservator or statutory successor.
   The expense thus incurred by the Reinsurer shall be chargeable, subject to
   court approval, against the insolvent Company as part of the expense of
   liquidation to the extent of a proportionate share of the benefit which may
   accrue to the Company solely as a result of the defense undertaken by the
   Reinsurer.

C. In addition to the offset provisions set forth in Article XXI - Offset, any
   debts or credits, liquidated or unliquidated, in favor of or against either
   party on the date of the receivership or liquidation order (except where the
   obligation was purchased by or transferred to be used as an offset) are
   deemed mutual debts or credits and shall be set off with the balance only to
   be allowed or paid.  Although such claim on the part of either party against
   the other may be unliquidated or undetermined in amount on the date of the
   entry of the receivership or liquidation order, such claim will be regarded
   as being in existence as of such date and any claims then in existence and
   held by the other party may be offset against it.

D. Nothing contained in this Article is intended to change the relationship or
   status of the parties to this Agreement or to enlarge upon the rights or
   obligations of either party hereunder except as provided herein.

ARTICLE XXII - SPECIAL TERMINATION
----------------------------------

A. Notwithstanding the termination provisions set forth in Article III -
   Effective Date and Termination, this Agreement shall be:

   1. Terminated automatically and simultaneously upon the happening of any of
      the following events:

      a.  Entry of an order of liquidation, rehabilitation, receivership or
          conservatorship with respect to the Company or the Reinsurer by any
          court or regulatory authority;

      b.  Assignment of this Agreement by either party;

      c.  Any transfer of control of either party by change in ownership or
          otherwise;

      d.  General reinsurance of any portion of the Company's business it
          retains net for its own account, as determined under the

                                      20.
<PAGE>

          provisions of this Agreement without prior consent of the Reinsurer.

   2. Terminated in accordance with the provisions set forth in this Paragraph,
      upon the discovery of the following event:

          A reduction  of 50% or more of the Company's policyholders surplus
          during any calendar year.  Such reduction shall be determined by
          calculating the difference between the Company's prior year annual
          statement and each subsequent quarterly statutory statement within
          such current calendar year.

      As respects the event set forth in this Paragraph A.2., the Company shall
      be obligated to notify the Reinsurer in writing within 30 days after the
      filing of its quarterly statement.  Upon receipt of such notification the
      Reinsurer shall have the right to terminate this Agreement, by giving not
      less than 30 days notice of its intention to do so.

B. Any notice of termination pursuant to provisions set forth in Paragraph A.2.
   above shall be sent by certified mail, return receipt requested.  Such notice
   period shall commence upon the other party's receipt of the notice of
   termination.

C. In the event of termination, the Reinsurer shall not be liable for losses
   occurring subsequent to the date of termination.

ARTICLE XXIII - AMENDMENTS
--------------------------

This Agreement may be amended by mutual consent of the parties expressed in an
addendum; and such addendum, when executed by both parties, shall be deemed to
be an integral part of this Agreement and binding on the parties hereto.

                                      21.
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives as of the following dates:

In Los Angeles, California, this          day of                 , 2000.

ATTEST:                                 AMERICAN MERCURY INSURANCE COMPANY

_____________________                   ______________________________________

And in Armonk, New York, this          day of                    , 2000.

ATTEST:                                 SWISS REINSURANCE AMERICA CORPORATION

_____________________                   ______________________________________
Member of Management                          Member of Senior Management

                                      22.
<PAGE>

                                   EXHIBIT A

                   FIRST MULTIPLE LINE EXCESS OF LOSS COVER

                           IS ATTACHED TO AND FORMS

                                    PART OF

                      REINSURANCE AGREEMENT NO. TM696A,B
<PAGE>

             EXHIBIT A - FIRST MULTIPLE LINE EXCESS OF LOSS COVER

SECTION            SUBJECT                     PAGE
-------            -------                     ----

   1               BUSINESS COVERED            A-1

   2               LIMIT AND RETENTION         A-1

   3               REINSURANCE PREMIUM         A-2

   4               CONTINGENT COMMISSION       A-3

<PAGE>

             EXHIBIT A - FIRST MULTIPLE LINE EXCESS OF LOSS COVER

SECTION 1 - BUSINESS COVERED
----------------------------

Under this Exhibit, the indemnity for reinsured loss applies to those Policies
issued by the Company with respect to the following Property and Casualty
Business except as excluded under Article IX - Exclusions of this Agreement.

PROPERTY BUSINESS
-----------------

NAIC
CODE:   LINE OF BUSINESS:

04      Homeowners (Section I)

CASUALTY BUSINESS
-----------------

NAIC
CODE:   LINE OF BUSINESS:

04      Homeowners (Section II)

SECTION 2 - LIMIT AND RETENTION
-------------------------------

A. As respects Property Business covered under this Exhibit involving one or
   more than one Line of Business, the Company shall retain the first $100,000
   of Ultimate Net Loss as respects each risk in any one Loss Occurrence.  The
   Reinsurer shall then be liable for the amount by which the Company's Ultimate
   Net Loss exceeds the Company's retention of $100,000, but the liability of
   the Reinsurer shall never exceed $200,000 each risk any one Loss Occurrence,
   nor shall the Reinsurer's liability from all risks in each Loss Occurrence
   exceed $600,000.

B. As respects Casualty Business covered under this Exhibit involving one or
   more than one Class of Insurance, the Company shall retain the first $100,000
   of Ultimate Net Loss as respects any one Loss Occurrence. The Reinsurer shall
   then be liable for the amount by which the Company's Ultimate Net Loss
   exceeds the Company's retention of $100,000, but the liability of the
   Reinsurer shall never exceed $200,000 with respect to any one Loss
   Occurrence.

C. In the event both a Property and Casualty loss are involved in the same Loss
   Occurrence, it is understood that the Company shall retain for its own
   account only the first $100,000 of the combined Property and Casualty
   Ultimate Net Loss, provided only one Property risk may

                                      A-1
<PAGE>

   be combined in the same Loss Occurrence. Such loss and the Company's
   retention thereon shall be apportioned to each Property and Casualty loss in
   the same proportion that the Company's Ultimate Net Loss for each such
   Property and Casualty loss bears to the Company's combined Ultimate Net Loss
   from both losses. The Reinsurer shall reimburse the Company for the
   difference between the Company's first $100,000 of Ultimate Net Loss under
   each Property and Casualty loss and the Company's pro rated retention on each
   Property and Casualty loss.

D. As respects Casualty Business covered under this Exhibit the Company warrants
   that the maximum limit of liability, per occurrence set forth under each
   Policy subject to this Exhibit shall not exceed $1,000,000.

SECTION 3 - REINSURANCE PREMIUM
-------------------------------

A. The Company shall pay to the Reinsurer a premium for the reinsurance provided
   for the Homeowners business underwritten and produced through the Company's
   Personal Lines Department, all of which is covered under this Exhibit, at the
   rates set forth below.  The rate shall be applied to the combined total of
   the Company's Subject Earned Premium which shall be defined as the Subject
   Earned Premium as respects Section I and II of Homeowners business
   underwritten and produced through the Company's Personal Lines Department,
   for the monthly period being reported.

   Department                 Business Covered                 Rate
   ----------                 ----------------                 ----

   Personal Lines             Homeowners (Section I & II)      14.0%
   (Florida Only)

B. The term "Subject Earned Premium" as used herein is equal to the sum of the
   Net Premiums Written on the business covered hereunder during the period
   under consideration, plus the unearned premium reserve as respects premiums
   in force at the beginning of such period, less the unearned premium reserve
   as respects premiums in force at the end of the period, said unearned premium
   is to be calculated on a monthly pro rata basis.

C. The term "Net Premiums Written" shall mean gross premiums written less
   returns, allowances and reinsurances which inure to the benefit of the
   Reinsurer.

D. The following percentages of the Company's premium shall be allocated to the
   business covered under this Exhibit:

   Homeowners                 Section I - 90%            Section II -  10%

                                      A-2
<PAGE>

SECTION 4 - CONTINGENT COMMISSION
---------------------------------

A. The Reinsurer shall allow the Company a contingent commission of 25% of the
   profit, if any, accruing to the Reinsurer hereunder, such profit to be
   computed on the following formula:

               CONTINGENT COMMISSION COMPUTATION FOR THE PERIOD
               ------------------------------------------------

                                    INCOME
                                    ------

          1. Earned Premiums received by the Reinsurer during the Period.

                                     OUTGO
                                     -----

          2. Incurred Losses of the Reinsurer during the Period.

          3. Allowance for Reinsurer's management expenses during the Period of
             12.5% of the Earned Premiums received by the Reinsurer during the
             Period.

          4. Deficit, if any, brought forward from the preceding Period.

          The amount by which Income exceeds Outgo is profit.

          The amount by which Outgo exceeds Income is deficit.

B. The term "Incurred Losses" means all losses and Loss Adjustment Expenses paid
   less recoveries, including salvage and subrogation, during the current Period
   for which computation is being made plus all losses and Loss Adjustment
   Expenses outstanding at the end of the current Period less all losses and
   Loss Adjustment Expenses outstanding at the close of the preceding Period.

C. The term "Earned Premiums" means the total of the Net Premiums Written, ceded
   during the current Period plus the unearned premiums at the close of the
   preceding Period less the unearned premiums at the close of the current
   Period, said unearned premiums to be calculated on a monthly pro rata basis.

D. The term "Period" means the actual time covered by each adjustment of
   commission.

E. The first calculation of commission adjustment shall cover the period January
   1, 2000 through December 31, 2002 and thereafter each subsequent calculation
   shall cover a Period of three consecutive calendar years.

                                      A-3
<PAGE>

F. The first provisional computation of profit or loss for the first calendar
   year within the first Period shall be made by the Company as of March 1,
   2002, thereafter, provisional computations of profit or loss shall be made by
   the Company within 60 days after the close of each calendar year within each
   Period. Such provisional calculations shall cover the results from the
   inception date of each Period to the end of the calendar year immediately
   preceding the date of computation.

G. If, for any Period, the Income of the plan exceeds the total of the Items
   shown under Outgo of the plan, the Reinsurer shall pay to the Company, within
   30 days after verification of the Company's calculations, 25% of the
   difference. If, for any Period, the total of the Items shown under Outgo of
   the plan exceeds the Income of the plan, the difference shall be carried
   forward to the next Period's calculation of commission adjustment as a
   deficit.

H. In the event reserves for losses and Loss Adjustment Expenses used in any
   previous calculation of adjusted commission shall have been underestimated or
   overestimated, as proven by subsequent developments, such previous
   calculations shall be revised at the request of either party.  The Company
   shall refund to the Reinsurer, or the Reinsurer shall pay to the Company,
   such amount as will give effect to the revision(s).

I. In case notice of termination has been given, no further adjustments of
   commission shall be made until the expiration of all liability and the
   settlement of all losses covered under this Agreement.

This Exhibit A is attached to and forms part of Reinsurance Agreement No.
TM696A,B issued to AMERICAN MERCURY INSURANCE COMPANY.

                                      A-4
<PAGE>

                                   EXHIBIT B

                   SECOND MULTIPLE LINE EXCESS OF LOSS COVER

                           IS ATTACHED TO AND FORMS

                                    PART OF

                      REINSURANCE AGREEMENT NO. TM696A,B
<PAGE>

             EXHIBIT B - SECOND MULTIPLE LINE EXCESS OF LOSS COVER

SECTION          SUBJECT                    PAGE
-------          -------                    ----

  1              BUSINESS COVERED           B-1

  2              LIMIT AND RETENTION        B-1

  3              REINSURANCE PREMIUM        B-2

<PAGE>

             EXHIBIT B - SECOND MULTIPLE LINE EXCESS OF LOSS COVER

SECTION 1 - BUSINESS COVERED
----------------------------

Under this Exhibit, the indemnity for reinsured loss applies to those Policies
issued by the Company with respect to the following Property and Casualty
Business except as excluded under Article IX - Exclusions of this Agreement.

PROPERTY BUSINESS
-----------------

NAIC
CODE:   LINE OF BUSINESS:

04      Homeowners (Section I)

CASUALTY BUSINESS
-----------------

NAIC
CODE:   LINE OF BUSINESS:

04      Homeowners (Section II)

SECTION 2 - LIMIT AND RETENTION
-------------------------------

A. As respects Property Business covered under this Exhibit involving one or
   more than one Line of Business, the Company shall retain the first $300,000
   of Ultimate Net Loss as respects each risk in any one Loss Occurrence.  The
   Reinsurer shall then be liable for the amount by which the Company's Ultimate
   Net Loss exceeds the Company's retention of $300,000, but the liability of
   the Reinsurer shall never exceed $1,200,000 each risk any one Loss
   Occurrence, nor shall the Reinsurer's liability from all risks in each Loss
   Occurrence exceed $1,200,000.

B. As respects Casualty Business covered under this Exhibit involving one or
   more than one Class of Insurance, the Company shall retain the first $300,000
   of Ultimate Net Loss as respects any one Loss Occurrence.  The Reinsurer
   shall then be liable for the amount by which the Company's Ultimate Net Loss
   exceeds the Company's retention of $300,000, but the liability of the
   Reinsurer shall never exceed $1,200,000 with respect to any one Loss
   Occurrence.

C. Reinsurance of the Company's retention, set forth in Paragraphs A. and B.
   above, shall not be deducted in arriving at the Company's Ultimate Net Loss
   herein.

                                      B-1
<PAGE>

D. As respects Casualty Business covered under this Exhibit the Company warrants
   that the maximum limit of liability, per occurrence set forth under each
   Policy subject to this Exhibit shall not exceed $1,000,000.

SECTION 3 - REINSURANCE PREMIUM
-------------------------------

A. As respects Homeowners Business underwritten and produced through the
   Company's Personal Lines Department, the Company shall pay to the Reinsurer a
   premium for the reinsurance provided under this Exhibit, at the rate set
   forth below.  The rate shall be applied to the combined total of the
   Company's Subject Earned Premium for both Section I and Section II of the
   Homeowners Business covered under this Exhibit which shall be defined as the
   Subject Earned Premium as respects Homeowners business, underwritten and
   produced through plus the Company's Personal Lines Department, for the
   monthly period being reported.

   Department           Business Covered            Rate
   ----------           ----------------            ----

   Personal Lines       Homeowners                  3.0%
   (Florida Only)

B. The term "Subject Earned Premium" as used herein is equal to the sum of the
   Net Premiums Written on the business covered hereunder during the period
   under consideration, plus the unearned premium reserve as respects premiums
   in force at the beginning of such period, less the unearned premium reserve
   as respects premiums in force at the end of the period, said unearned premium
   is to be calculated on a monthly pro rata basis.

C. The term "Net Premiums Written" shall mean gross premiums written less
   returns, allowances and reinsurances which inure to the benefit of the
   Reinsurer.

D. The following percentages of the Company's premium shall be allocated to the
   business covered under this Exhibit:

   Homeowners           Section I - 90%        Section II - 10%

This Exhibit B is attached to and forms part of Reinsurance Agreement No.
TM696A,B issued to AMERICAN MERCURY INSURANCE COMPANY.

                                      B-2
<PAGE>

                         SUPPLEMENT TO THE ATTACHMENTS

        DEFINITION OF IDENTIFICATION TERMS USED WITHIN THE ATTACHMENTS
        --------------------------------------------------------------

A. Wherever the term "Company" or "Reinsured" or "Reassured" or whatever other
   term is used to designate the reinsured company or companies within the
   various attachments to the reinsurance agreement, the term shall be
   understood to mean Company or Reinsured or Reassured or whatever other term
   is used in the attached reinsurance agreement to designate the reinsured
   company or companies.

B. Wherever the term "Agreement" or "Contract" or "Policy" or whatever other
   term is used to designate the attached reinsurance agreement within the
   various attachments to the reinsurance agreement, the term shall be
   understood to mean Agreement or Contract or Policy or whatever other term is
   used to designate the attached reinsurance agreement.

C. Wherever the term "Reinsurer" or "Reinsurers" or "Underwriters" or whatever
   other term is used to designate the reinsurer or reinsurers in the various
   attachments to the reinsurance agreement, the term shall be understood to
   mean Reinsurer or Reinsurers or Underwriters or whatever other term is used
   to designate the reinsuring company or companies.

________________________________________________________________________________
________________________________________________________________________________

                       INSOLVENCY FUNDS EXCLUSION CLAUSE
                       ---------------------------------

This Agreement excludes all liability of the Company arising by contract,
operation of law, or otherwise from its participation or membership, whether
voluntary or involuntary, in any insolvency fund or from reimbursement of any
person for any such liability.  "Insolvency fund" includes any guaranty fund,
insolvency fund, plan, pool, association, fund or other arrangement, howsoever
denominated, established or governed, which provides for any assessment of or
payment or assumption by any person of part or all of any claim, debt, charge,
fee, or other obligation of an insurer, or its successors or assigns, which has
been declared by any competent authority to be insolvent or which is otherwise
deemed unable to meet any claim, debt, charge, fee or other obligation in whole
or in part.
<PAGE>

              POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE
              ---------------------------------------------------

SECTION A

Excluding:

(a)  All Business derived directly or indirectly from any Pool, Association or
     Syndicate which maintains its own reinsurance facilities.

(b)  Any Pool or Scheme (whether voluntary or mandatory) formed after March 1,
     1968, for the purpose of insuring Property whether on a country-wide basis
     or in respect of designated areas.  This Exclusion shall not apply to so-
     called Automobile Insurance Plans or other Pools formed to provide coverage
     for Automobile Physical Damage.

SECTION B

It is agreed that business, written by the Company for the same perils, which is
known at the time to be insured by or in excess of underlying amounts placed in
the following Pools, Associations or Syndicates, whether by way of insurance or
reinsurance is excluded hereunder:

     Industrial Risk Insurers (successor to Factory Insurance Association and
     Oil Insurance Association); Associated Factory Mutuals; Improved Risk
     Mutuals.

     Any Pool, Association or Syndicate formed for the purpose of writing Oil,
     Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs.

     United States Aircraft Insurance Group, Canadian Aircraft Insurance Group,
     Associated Aviation Underwriters, American Aviation Underwriters.

SECTION B does not apply:

(a)  Where the Total Insured Value over all interests of the risk in question is
     less than $250,000,000.

(b)  To interests traditionally underwritten as Inland Marine or Stock and/or
     Contents written on a Blanket basis.

(c)  To Contingent Business Interruption, except when the Company is aware that
     the key location is known at the time to be insured in any Pool,
     Association or Syndicate named above.

(d)  To risks as follows: Offices, Hotels, Apartments, Hospitals, Educational
     Establishments, Public Utilities (other than Railroad Schedules) and
     Builders Risks on the classes of risks specified in this subsection (d)
     only.
<PAGE>

                     TOTAL INSURED VALUE EXCLUSION CLAUSE
                     ------------------------------------

It is the mutual intention of the parties to exclude risks, other than Offices,
Hotels, Apartments, Hospitals, Educational Establishments, Public Utilities
(except Railroad schedules) and Builders Risk on the above classes where, at the
time of the cession, the Total Insured Value over all interests exceeds
$250,000,000.  However, the Company shall be protected hereunder, subject to the
other terms and conditions of this Agreement, if subsequently to cession being
made the Company becomes acquainted with the true facts of the case and
discovers that the mutual intention has been inadvertently breached, the Company
shall at the first opportunity, and certainly by next anniversary of the
original policy, exclude the risk in question.

It is agreed that this mutual intention does not apply to Contingent Business
Interruption or to interest traditionally underwritten as Inland Marine or to
Stock and/or Contents written on a blanket basis except where the Company is
aware that the Total Insured Value of $250,000,000 is already exceeded for
buildings, machinery, equipment and direct use and occupancy at the key
location.

It is understood and agreed that this Clause shall not apply hereunder where the
Company writes 100% of the risk.

Notwithstanding anything contained herein to the contrary, it is the mutual
intention of the parties in respect of bridges and tunnels to exclude such risks
where the Total Insured Value over all interests exceeds $250,000,000.
<PAGE>

                    POLLUTION AND SEEPAGE EXCLUSION CLAUSE
                    --------------------------------------

This Reinsurance does not apply to:

   1. Pollution, seepage, contamination or environmental impairment insurances
      (hereinafter collectively referred to as "pollution"), however styled;

   2. Loss or damage caused directly or indirectly by pollution, unless said
      loss or damage follows as a result of a loss caused directly by a peril
      covered hereunder;

   3. Expenses resulting from any governmental direction or request that
      material present in or part of or utilized on an insured's property be
      removed or modified, except as provided in 5. below;

   4. Expenses incurred in testing for and/or monitoring pollutants;

   5. Expenses incurred in removing debris, unless (A) the debris results from a
      loss caused directly by a peril covered hereunder, and (B) the debris to
      be removed is itself covered hereunder, and (C) the debris is on the
      insured's premises, subject, however, to a limit of $5,000 plus 25% of (i)
      the property damage loss, any risk, any one location, any one original
      insured, and (ii) any deductible applicable to the loss;

   6. Expenses incurred to extract pollutants from land or water at the
      insured's premises unless (A) the release, discharge, or dispersal of
      pollutants results from a loss caused directly by a peril covered
      hereunder, and (B) such expenses shall not exceed $10,000;

   7. Loss of income due to any increased period of time required to resume
      operations resulting from enforcement of any law regulating the
      prevention, control, repair, clean-up or restoration of environmental
      damage;

   8. Claims under 5. and/or 6. above, unless notice thereof is given to the
      Company within 180 days after the date of the loss occurrence to which
      such claims relate.

"Pollutants" means any solid, liquid, gaseous or thermal irritant or
contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and
waste.  Waste includes materials to be recycled, reconditioned or reclaimed.

                                      -1-
<PAGE>

Where no pollution exclusion has been accepted or approved by an insurance
regulatory authority for use in a policy that is subject to this Agreement or
where a pollution exclusion that has been used in a policy is overturned, either
in whole or in part, by a court having jurisdiction, there shall be no recovery
for pollution under this Agreement unless said pollution loss or damage follows
as a result of a loss caused directly by a peril covered hereunder.

Nothing herein shall be deemed to extend the coverage afforded by this
reinsurance to property or perils specifically excluded or not covered under the
terms and conditions of the original policy involved.

                                      -2-
<PAGE>

NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - U.S.A.
--------------------------------------------------------------------------

N.M.A. 1119

1. This Reinsurance does not cover any loss or liability accruing to the
   Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from
   any Pool of Insurers or Reinsurers formed for the purpose of covering Atomic
   or Nuclear Energy risks.

2. Without in any way restricting the operation of paragraph 1. of this Clause,
   this Reinsurance does not cover any loss or liability accruing to the
   Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from
   any insurance against Physical Damage (including business interruption or
   consequential loss arising out of such Physical Damage) to:

   I.   Nuclear reactor power plants including all auxiliary property on the
        site, or

   II.  Any other nuclear reactor installation, including laboratories handling
        radioactive materials in connection with reactor installations, and
        critical facilities as such, or

   III. Installations for fabricating complete fuel elements or for processing
        substantial quantities of "special nuclear material," and for
        reprocessing, salvaging, chemically separating, storing or disposing of
        spent nuclear fuel or waste materials, or

   IV.  Installations other than those listed in paragraph 2. III. above using
        substantial quantities of radioactive isotopes or other products of
        nuclear fission.

3. Without in any way restricting the operation of paragraphs 1. and 2. of this
   Clause, this Reinsurance does not cover any loss or liability by radioactive
   contamination accruing to the Reassured, directly or indirectly, and whether
   as Insurer or Reinsurer, from any insurance on property which is on the same
   site as a nuclear reactor power plant or other nuclear installation and which
   normally would be insured therewith, except that this paragraph 3. shall not
   operate:

        (a) where the Reassured does not have knowledge of such nuclear reactor
            power plant or nuclear installation, or

        (b) where the said insurance contains a provision excluding coverage for
            damage to property caused by or resulting from radioactive
            contamination, however caused. However, on and after 1st January,
            1960, this sub-paragraph (b) shall only apply provided the said
            radioactive contamination exclusion provision has been approved by
            the Governmental Authority having jurisdiction thereof.

                                      -1-
<PAGE>

4. Without in any way restricting the operation of paragraphs 1., 2. and 3. of
   this Clause, this Reinsurance does not cover any loss or liability by
   radioactive contamination accruing to the Reassured, directly or indirectly,
   and whether as Insurer or Reinsurer, when such radioactive contamination is a
   named hazard specifically insured against.

5. It is understood and agreed this Clause shall not extend to risks using
   radioactive isotopes in any form where the nuclear exposure is not considered
   by the Reassured to be the primary hazard.

6. The term "special nuclear material" shall have the meaning given to it by the
   Atomic Energy Act of 1954 or by any law amendatory thereof.

7. Reassured to be sole judge of what constitutes:

   (a) substantial quantities, and

   (b) the extent of installation, plant or site.

NOTE: - Without in any way restricting the operation of paragraph 1. hereof, it
is understood and agreed that

   (a) all policies issued by the Reassured on or before 31st December, 1957
       shall be free from the application of the other provisions of this Clause
       until expiry date or 31st December, 1960 whichever first occurs whereupon
       all the provisions of this Clause shall apply,

   (b) with respect to any risk located in Canada policies issued by the
       Reassured on or before 31st December, 1958 shall be free from the
       application of the other provisions of this Clause until expiry date or
       31st December, 1960 whichever first occurs whereupon all the provisions
       of this Clause shall apply.

                                      -2-
<PAGE>

NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE - CANADA
--------------------------------------------------------------------------

N.M.A. 1980

1. This Agreement does not cover any loss or liability accruing to the Company
   directly or indirectly, and whether as Insurer or Reinsurer, from any Pool of
   Insurers or Reinsurers formed for the purpose of covering Atomic or Nuclear
   Energy risks.

2. Without in any way restricting the operation of paragraph 1. of this clause,
   this Agreement does not cover any loss or liability accruing to the Company,
   directly or indirectly, and whether as Insurer or Reinsurer, from any
   insurance against Physical Damage (including business interruption or
   consequential loss arising out of such Physical Damage) to:

   a. Nuclear reactor power plants including all auxiliary property on the site,
      or

   b. Any other nuclear reactor installation, including laboratories handling
      radioactive materials in connection with reactor installations, and
      critical facilities as such, or

   c. Installations for fabricating complete fuel elements or for processing
      substantial quantities of prescribed substances, and for reprocessing,
      salvaging, chemically separating, storing or disposing of spent nuclear
      fuel or waste materials, or

   d. Installations other than those listed in c. above using substantial
      quantities of radioactive isotopes or other products of nuclear fission.

3. Without in any way restricting the operation of paragraphs 1. and 2. of this
   clause, this Agreement does not cover any loss or liability by radioactive
   contamination accruing to the Company, directly or indirectly, and whether as
   Insurer or Reinsurer, from any insurance on property which is on the same
   site as a nuclear reactor power plant or other nuclear installation and which
   normally would be insured therewith, except that this paragraph 3. shall not
   operate:

   a. where the Company does not have knowledge of such nuclear reactor power
      plant or nuclear installation, or

   b. where the said insurance contains a provision excluding coverage for
      damage to property caused by or resulting from radioactive contamination,
      however caused.

                                      -1-
<PAGE>

4. Without in any way restricting the operation of paragraphs 1., 2. and 3. of
   this clause, this Agreement does not cover any loss or liability by
   radioactive contamination accruing to the Company, directly or indirectly,
   and whether as Insurer or Reinsurer, when such radioactive contamination is a
   named hazard specifically insured against.

5. This clause shall not extend to risks using radioactive isotopes in any form
   where the nuclear exposure is not considered by the Company to be the primary
   hazard.

6. The term "prescribed substances" shall have the meaning given to it by the
   Atomic Energy Control Act R.S.C. 1974 or by any law amendatory thereof.

7. Company to be sole judge of what constitutes:

   a. substantial quantities, and

   b. the extent of installation, plant or site.

8. Without in any way restricting the operation of paragraphs 1., 2., 3. and 4.
   of this clause, this Agreement does not cover any loss or liability accruing
   to the Company, directly or indirectly, and whether as Insurer or Reinsurer,
   caused by any nuclear incident as defined in The Nuclear Liability Act,
   nuclear explosion or contamination by radioactive material.

NOTE: Without in any way restricting the operation of paragraphs 1., 2., 3. and
      4. of this clause, paragraph 8. of this clause shall apply to all original
      contracts of the Company whether new, renewal or replacement which become
      effective on or after December 31, 1984.

                                      -2-
<PAGE>

            NUCLEAR INCIDENT EXCLUSION CLAUSE - REINSURANCE - NO. 4
            -------------------------------------------------------

1. This Reinsurance does not cover any loss or liability accruing to the
   Reassured as a member of, or subscriber to, any association of insurers or
   reinsurers formed for the purpose of covering nuclear energy risks or as a
   direct or indirect reinsurer of any such member, subscriber or association.

2. Without in any way restricting the operations of Nuclear Incident Exclusion
   Clauses, - Liability, - Physical Damage, - Boiler and Machinery and paragraph
   1. of this Clause, it is understood and agreed that for all purposes of the
   reinsurance assumed by the Reinsurer from the Reinsured, all original
   insurance policies or contracts of the Reinsured (new, renewal and
   replacement) shall be deemed to include the applicable existing Nuclear
   Clause and/or Nuclear Exclusion Clause(s) in effect at the time and any
   subsequent revisions thereto as agreed upon and approved by the Insurance
   Industry and/or a qualified Advisory or Rating Bureau.
<PAGE>

              POLLUTION LIABILITY EXCLUSION CLAUSE - REINSURANCE
              --------------------------------------------------

   This Reinsurance excludes:

   (1) Any loss occurrence arising out of the actual, alleged or threatened
       discharge, dispersal, release or escape of pollutants:

       a)  At or from premises owned, rented or occupied by an original assured;
           or

       b)  At or from any site or location used for the handling, storage,
           disposal, processing or treatment of waste; or

       c)  Which are at any time transported, handled, stored, treated, disposed
           of, or processed as waste; or

       d)  At or from any site or location on which any original assured is
           performing operations:

           (i)  If the pollutants are brought on or to the site or location in
                connection  with such operations; or

           (ii) If the operations are to test for, monitor, clean up, remove,
                contain, treat, detoxify or neutralize the pollutants.

   (2) Any liability, loss, cost or expense arising out of any governmental
       direction or request to test for, monitor, clean up, remove, contain,
       treat, detoxify or neutralize pollutants.

"Pollutants" means any solid, liquid, gaseous or thermal irritant or
contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and
waste.  Waste includes materials to be recycled, reconditioned or reclaimed.

Subparagraphs a) and d)(i) of paragraph (1) of this exclusion do not apply to
loss occurrences caused by heat, smoke or fumes from a hostile fire. As used
herein, "hostile fire" means one which becomes uncontrollable or breaks out from
where it was intended to be.

"Original assured" as used herein means all insureds as defined in the policy
issued by the Company.
<PAGE>

   NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - U.S.A.
   --------------------------------------------------------------------

   N.M.A. 1590

1. This reinsurance does not cover any loss or liability accruing to the
   Reassured as a member of, or subscriber to, any association of insurers or
   reinsurers formed for the purpose of covering nuclear energy risks or as a
   direct or indirect reinsurer of any such member, subscriber or association.

2. Without in any way restricting the operation of paragraph 1. of this Clause
   it is understood and agreed that for all purposes of this reinsurance all the
   original policies of the Reassured (new, renewal and replacement) of the
   classes specified in Clause II. in this paragraph 2. from the time specified
   in Clause III. in this paragraph 2. shall be deemed to include the following
   provision (specified as the Limited Exclusion Provision):

   LIMITED EXCLUSION PROVISION*

     I.   It is agreed that the policy does not apply under any liability
          coverage, to injury, sickness, disease, death or destruction, bodily
          injury or property damage with respect to which an insured under the
          policy is also an insured under a nuclear energy liability policy
          issued by Nuclear Energy Liability Insurance Association, Mutual
          Atomic Energy Liability Underwriters or Nuclear Insurance Association
          of Canada, or would be an insured under any such policy but for its
          termination upon exhaustion of its limit of liability.

    II.   Family Automobile Policies (liability only), Special Automobile
          Policies (private passenger automobiles, liability only), Farmers
          Comprehensive Personal Liabilities Policies (liability only),
          Comprehensive Personal Liability Policies (liability only) or policies
          of a similar nature; and the liability portion of combination forms
          related to the four  classes of policies stated above, such as the
          Comprehensive Dwelling Policy and the applicable types of Homeowners
          Policies.

    III.  The inception dates and thereafter of all original policies as
          described in II. above, whether new, renewal or replacement, being
          policies which either

                                      -1-
<PAGE>

        (a)   become effective on or after 1st May, 1960, or

        (b)   become effective before that date and contain the Limited
              Exclusion Provision set out above; provided this paragraph 2.
              shall not be applicable to Family Automobile Policies, Special
              Automobile Policies, or policies or combination policies of a
              similar nature, issued by the Reassured on New York risks, until
              90 days following approval of the Limited Exclusion Provision by
              the Governmental Authority having jurisdiction thereof.

3. Except for those classes of policies specified in Clause II. of paragraph 2.
   and without in any way restricting the operation of paragraph 1. of this
   Clause, it is understood and agreed that for all purposes of this reinsurance
   the original liability policies of the Reassured (new, renewal and
   replacement) affording the following coverages:

   Owners, Landlords and Tenants Liability, Contractual Liability, Elevator
   Liability, Owners or Contractors (including railroad) Protective Liability,
   Manufacturers and Contractors Liability, Product Liability, Professional and
   Malpractice Liability, Storekeepers Liability, Garage Liability, Automobile
   Liability (including Massachusetts Motor Vehicle or Garage Liability)

   shall be deemed to include with respect to such coverages, from the time
   specified in Clause V. of this paragraph 3., the following provision
   (specified as the Broad Exclusion Provision):

   BROAD EXCLUSION PROVISION*

   It is agreed that the policy does not apply:

    I.    Under any Liability Coverage to injury, sickness, disease, death or
          destruction, bodily injury or property damage

          (a)  with respect to which an insured under the policy is also an
               insured under nuclear energy liability policy issued by Nuclear
               Energy Liability Insurance Association, Mutual Atomic Energy
               Liability Underwriters or Nuclear Insurance Association of
               Canada, or would be an insured under any such policy but for its
               termination upon exhaustion of its limit of liability; or

                                      -2-
<PAGE>

          (b)  resulting from the hazardous properties of nuclear material and
               with respect to which (1) any person or organization is required
               to maintain financial protection pursuant to the Atomic Energy
               Act of 1954, or any law amendatory thereof, or (2) the insured
               is, or had this policy not been issued would be, entitled to
               indemnity from the United States of America, or any agency
               thereof, under any agreement entered into by the United States of
               America, or any agency thereof, with any person or organization.

   II.    Under any Medical Payments Coverage, or under any Supplementary
          Payments Provision relating to immediate medical or surgical relief,
          first aid, to expenses incurred with respect to bodily injury,
          sickness, disease or death, bodily injury resulting from the hazardous
          properties of nuclear material and arising out of the operation of a
          nuclear facility by any person or organization.

   III.   Under any Liability Coverage, to injury, sickness, disease, death or
          destruction, bodily injury or property damage resulting from the
          hazardous properties of nuclear material, if

          (a)  the nuclear material (1) is at any nuclear facility owned by, or
               operated by or on behalf of, an insured or (2) has been
               discharged or dispersed therefrom;

          (b)  the nuclear material is contained in spent fuel or waste at any
               time possessed, handled, used, processed, stored, transported or
               disposed of by or on behalf of an insured; or

          (c)  the injury, sickness, disease, death or destruction, bodily
               injury or property damage arises out of the furnishing by an
               insured of services, materials, parts or equipment in connection
               with the planning, construction, maintenance, operation or use of
               any nuclear facility, but if such facility is located within the
               United States of America, its territories, or possessions or
               Canada, this exclusion (c) applies only to injury to or
               destruction of property at such nuclear facility, property damage
               to such nuclear facility and any property thereat.

                                      -3-
<PAGE>

   IV.    As used in this endorsement:

          "hazardous properties" include radioactive, toxic or explosive
          properties; "nuclear material" means source material, special nuclear
          material or byproduct material; "source material," "special nuclear
          material," and "byproduct material" have the meanings given them in
          the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent
          fuel" means any fuel element or fuel component, solid or liquid, which
          has been used or exposed to radiation in a nuclear reactor; "waste"
          means any waste material (1) containing byproduct material other than
          the tailings or wastes produced by the extraction or concentration of
          uranium or thorium from any ore processed for its source material
          content and (2) resulting from the operation by any person or
          organization of any nuclear facility included within the definition of
          nuclear facility under paragraph (a) or (b) thereof; "nuclear
          facility" means

          (a)  any nuclear reactor,

          (b)  any equipment or device designed or used for (1) separating the
               isotopes of uranium or plutonium, (2) processing or utilizing
               spent fuel, or (3) handling, processing or packaging waste,

          (c)  any equipment or device used for the processing, fabricating or
               alloying of special nuclear material if at any time the total
               amount of such material in the custody of the insured at the
               premises where such equipment or device is located consists of or
               contains more than 25 grams of plutonium or uranium 233 or any
               combination thereof, or more than 250 grams of uranium 235,

          (d)  any structure, basin, excavation, premises or place prepared or
               used for the storage or disposal of waste

          and includes the site on which any of the foregoing is located, all
          operations conducted on such site and all premises used for such
          operations; "nuclear reactor" means any apparatus designed or used to
          sustain nuclear fission in a self-supporting chain reaction or to
          contain a critical mass of fissionable material; with respect to
          injury to or destruction of property, the word "injury" or
          "destruction" includes all forms of radioactive contamination of
          property; "property damage" includes all forms of radioactive
          contamination of property.

   V.     The inception dates and thereafter of all original policies affording
          coverages specified in this paragraph 3., whether new, renewal or
          replacement, being policies which become

                                      -5-
<PAGE>

          effective on or after 1st May, 1960, provided this paragraph 3. shall
          not be applicable to

          (i)  Garage and Automobile Policies issued by the Reassured on New
               York risks, or

          (ii) Statutory liability insurance required under Chapter 90, General
               Laws of Massachusetts,

          until 90 days following approval of the Broad Exclusion Provision by
          the Governmental Authority having jurisdiction thereof.

4. Without in any way restricting the operations of paragraph 1. of this Clause,
   it is understood and agreed that paragraphs 2. and 3. above are not
   applicable to original liability policies of the Reassured in Canada, and
   that with respect to such policies, this Clause shall be deemed to include
   the Nuclear Energy Liability Exclusion Provisions adopted by the Canadian
   Underwriters' Association or the Independent Insurance Conference of Canada.

*NOTE:  The words printed in BOLD TYPE in the Limited Exclusion Provision and in
        the Broad Exclusion Provision shall apply only in relation to original
        liability policies which include a Limited Exclusion Provision or a
        Broad Exclusion Provision containing those words.

                                      -6-
<PAGE>

   NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - CANADA
   --------------------------------------------------------------------

   N.M.A. 1979

1. This Agreement does not cover any loss or liability accruing to the Company
   as a member of, or subscriber to, any association of insurers or reinsurers
   formed for the purpose of covering nuclear energy risks or as a direct or
   indirect reinsurer of any such member, subscriber or association.

2. Without in any way restricting the operation of Paragraph 1. of this Clause,
   it is agreed that for all purposes of this Agreement all the original
   liability contracts of the Company, whether new, renewal or replacement, of
   the following classes, namely,

         Personal Liability
         Farmers' Liability
         Storekeepers' Liability

   which become effective on or after 31st December 1984, shall be deemed to
   include, from their inception dates and thereafter, the following provision:

   Limited Exclusion Provision -

   This Policy does not apply to bodily injury or property damage with respect
   to which the Insured is also insured under a contract of nuclear energy
   liability insurance (whether the Insured is unnamed in such contract and
   whether or not it is legally enforceable by the Insured) issued by the
   Nuclear Insurance Association of Canada or any other group or pool of
   insurers or would be an Insured under any such policy but for its termination
   upon exhaustion of its limits of liability.

   With respect to property, loss of use of such property shall be deemed to be
   property damage.

3. Without in any way restricting the operation of Paragraph 1. of this Clause,
   it is agreed that for all purposes of this Agreement all the original
   liability contracts of the Company, whether new, renewal or replacement, of
   any class whatsoever (other than Personal Liability, Farmers' Liability,
   Storekeepers' Liability or Automobile Liability contracts), which become
   effective on or after 31st December 1984, shall be deemed to include, from
   their inception dates and thereafter, the following provision:

                                      -1-
<PAGE>

   Broad Exclusion Provision -

   It is agreed that this Policy does not apply:

   (a) to liability imposed by or arising under the Nuclear Liability Act; nor

   (b) to bodily injury or property damage with respect to which an Insured
       under this Policy is also insured under a contract of nuclear energy
       liability insurance (whether the Insured is unnamed in such contract and
       whether or not it is legally enforceable by the Insured) issued by the
       Nuclear Association of Canada or any other insurer or group or pool of
       insurers or would be an Insured under any such policy but for its
       termination upon exhaustion of its limit of liability; nor

   (c) to bodily injury or property damage resulting directly or indirectly from
       the nuclear energy hazard arising from:

       (i)    the ownership, maintenance, operation or use of a nuclear facility
              by or on behalf of an Insured;

       (ii)   the furnishing of an Insured of services, materials, parts or
              equipment in connection with the planning, construction,
              maintenance, operation or use of any nuclear facility; and

       (iii)  the possession, consumption, use, handling, disposal or
              transportation of fissionable substances, or of other radioactive
              material (except radioactive isotopes, away from a nuclear
              facility, which have reached the final stage of fabrication so as
              to be usable for any scientific, medical, agricultural, commercial
              or industrial purpose) used, distributed, handled or sold by an
              Insured.

   As used in this Policy:

   (1) The term "nuclear energy hazard" means the radioactive, toxic, explosive,
       or other hazardous properties of radioactive material;

   (2) The term "radioactive material" means uranium, thorium, plutonium,
       neptunium, their respective derivatives and compounds, radioactive
       isotopes of other elements and any other substances that the Atomic
       Energy Control Board may, by regulation, designate as being prescribed
       substances capable of releasing atomic energy, or as being requisite for
       the production, use or application of atomic energy;

                                      -2-
<PAGE>

   (3) The term "nuclear facility" means:

       (a)  any apparatus designed or used to sustain nuclear fission in a self-
            supporting chain reaction or to contain a critical mass of
            plutonium, thorium and uranium or any one or more of them;

       (b)  any equipment or device designed or used for (i) separating the
            isotopes of plutonium, thorium and uranium or any one or more of
            them, (ii) processing or utilizing spent fuel, or (iii) handling,
            processing or packaging waste;

       (c)  any equipment or device used for the processing, fabricating or
            alloying of plutonium, thorium or uranium enriched in the isotope
            uranium 233 or in the isotope uranium 235, or any one or more of
            them if at any time the total amount of such material in the custody
            of the Insured at the premises where such equipment or device is
            located consists of or contains more than 25 grams of plutonium or
            uranium 233 or any combination thereof, or more than 250 grams of
            uranium 235;

       (d)  any structure, basin, excavation, premises or place prepared or used
            for the storage or disposal of waste radioactive material;

       and includes the site on which any of the foregoing is located, together
       with all operations conducted thereon and all premises used for such
       operations.

   (4) The term "fissionable substance" means any prescribed substance that is,
       or from which can be obtained, a substance capable of releasing atomic
       energy by nuclear fission.

   (5) With respect to property, loss of use of such property shall be deemed to
       be property damage.

                                      -3-<PAGE>

                                                                 EXHIBIT 10.15

                                     LEASE
                                     -----

                                    Between

                       SECOND BROMFIELD PROPERTIES, INC.,
                                    as Lessor

                                      and

                                HONEYWELL, INC.
                                   as Lessee

                           Dates as of July 25, 1967

                                       1
<PAGE>

     THIS LEASE AGREEMENT, dated as of July 25, 1967, between SECOND BROMFIELD
PROPERTIES, INC., (the Lessor), a Delaware corporation, having an address at c/o
Wood, Struthers & Winthrop, 20 Exchange Place, New York, New York 10005, as
lessor, and HONEYWELL, INC.  (the Lessee), a Delaware corporation, having its
principal office at 2701 Fourth Avenue South, Minneapolis, Minnesota 55408, as
lessee.

                               WITNESSETH THAT:

     The Lessor does hereby demise, lease and let unto the Lessee, the office
buildings and engineering facility described in Schedule A attached hereto,
together with all buildings, structures and other improvements now or hereafter
located on such premises (the building or buildings and the land upon which such
building or buildings are situated are herein called the "Leased Premises"),
subject to such of the exceptions, if any, set forth in such Schedule A as shall
at the time be in effect and applicable to the Leased Premises;

     TO HAVE AND TO HOLD the Leased Premises unto the Lessee its successors and
assigns for an interim term commencing on August 10, 1967, and ending at
midnight, September 30, 1967 (the Interim Term) and a primary term commencing an
October 1, 1967, and ending at midnight, September 30, 1987 (the Primary Term),
and thereafter, the Lessee shall have the right and option to extend this Lease
for eight consecutive extended terms (the Extended Terms) unless and until this
Lease shall be sooner terminated pursuant to any conditional limitation or
condition herein set forth.  Each Extended Term shall commence on the day
immediately succeeding the expiration date of the next proceeding term of this
Lease and shall end at midnight on the day immediately preceding the fifth
anniversary of the first day of such Extended Term.  The Lessee shall exercise
its right to extend this Lease for any Extended Term by giving notice of such
extension to the Lessor not less than 180 days prior to the expiration of
<PAGE>

the then existing term of this Lease.  The Lessee shall yield and pay for such
terms the respective amounts set forth in Schedule B hereof (the Basic Rent) on
the dates set forth in said Schedule (the Basic Rent Payment Dates) . The Basic
Rent and other sums payable by the Lessee hereunder shall be payable in lawful
money of the United States of America at the Lessor's address set forth above or
to such agent or person or persons or at such other address as the Lessor from
time to time may designate.

     It is mutually agreed and understood between the Lessor and the Lessee as
follows:
     1.   Additional Payments by Lessee
          -----------------------------

          (a)   As additional rent, the Lessee shall pay when due and payable,
and before any fine, penalty, interest or cost may be added for nonpayment, all
taxes, assessments (including, without limitation, all assessments for public
improvements or benefits, whether or not commenced or completed prior to the
date hereof and whether or not to be completed within the term hereof), ground
rents, water, sewer and other rents, excises, levies, fees and charges of every
character, whether general or special, ordinary or extraordinary, or foreseen or
unforeseen (including all interest and penalties thereon) which at any time
during the term of this Lease may be assessed, levied or imposed against or in
respect of or be a lien upon the Leased Premises or any part thereof or any
estate, right or interest therein or any rents therefrom or any occupancy, use
or possession of or activity conducted on the Leased Premises, or any part
thereof, other than income or franchise taxes of the Lessor (except that the
Lessee shall pay all permit, license or similar fees and charges imposed upon
the Lessor by reason of its being engaged in the business of owning and leasing
the Leased Premises and all gross receipts and similar taxes applicable to the
Lessor's receipt of rents hereunder levied by the jurisdiction in which the
Leased Premises are located), and the Lessee will furnish the Lessor, promptly
upon request, with official receipts

                                       2
<PAGE>

or other satisfactory proof evidencing such payment. All such items levied
during the first and last year of the term of this Lease shall be prorated
between the parties in accordance with the number of days of the Lessee's actual
tenancy under this Lease. All installments of such items falling due during and
before expiration of the term hereof shall be paid by the Lessee and all such
installments falling due after expiration of the lease term shall be the
responsibility of the Lessor.

          (b)   During such term, the Lessee shall pay all water rates assessed
for water used and all gas and electric bills and other utility charges at the
time such charges become due and payable.

          (c)   The Lessee will pay, upon demand, interest at the rate of 7% per
annum an all overdue installments of Basic Rent and all other sums payable to
the Lessor hereunder, from the due date thereof until payment.

          (d)   It is the purpose and intent of the parties hereto that the
Basic Rent herein reserved, shall be absolutely net to the Lessor without
deduction of any kind, and that all costs, fees, charges, expenses and
obligations of every kind relating to the Leased Premises shall be paid and
discharged by the Lessee, except certain income and franchise taxes of the
Lessor as aforesaid.

          (e)   In the event of any failure on the part of the Lessee to pay any
additional rent or other sums payable hereunder, the Lessor shall have all of
the rights, powers and remedies provided for in this Lease or at law or in
equity or otherwise in the case of nonpayment of the Basic Rent.

                                       3
<PAGE>

     2.   No Counterclaim, Etc.
          ---------------------

     The Basic Rent, additional rent and all other sums payable by the Lessee
hereunder shall be paid without notice, demand, counterclaim, setoff, deduction
or defense and without abatement, suspension, deferment, diminution or
reduction, and the obligations and liabilities of the Lessee hereunder shall in
no way be released, discharged or otherwise affected (except as expressly
provided in this Lease) by reason of any occurrence whatsoever, including,
without limitation: (a) any damage to or destruction of or any condemnation or
taking of the Leased Premises or any part thereof; (b) any restriction or
prevention of or interference with any use of the Leased Premises or any part
thereof; (c) any title defect or encumbrance or any eviction from the Leased
Premises or any part thereof by title paramount or otherwise; (d) any amendment
or modification of or supplement to any instrument evidencing, securing or
relating to any indebtedness of the Lessor or any assignment or transfer of any
thereof, or any furnishing or acceptance of additional security, or any release
of any security, for any such indebtedness; (e) any waiver, consent, extension,
indulgence or other action or inaction under or in respect of any such
instrument, or any exercise or non-exercise of any right, remedy, power or
privilege under or in respect of any such instrument or any assignment or
transfer of any thereof; (f) any default by the Lessor under, or any invalidity
of, or any irregularity or any other defect in, any such instrument; (g) any
transfer of the assets of the Lessor to, or any consolidation or merger of the
Lessor with or into, any other person or corporation (including the Lessee), or
any disposition by the Lessee of any shares of stock of the Lessor; (h) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the Lessor, or any action taken
with respect to this Lease by any trustee or receiver of the Lessor, or by any
court, in any such proceeding; (i) any claim which the Lessee has or might

                                       4
<PAGE>

have against the Lessor; (j) Any failure on the part of the Lessor to perform or
comply with any of the terms hereof or of any other agreement with the Lessee;
or (k) any other occurrence whatsoever, whether similar or dissimilar to the
foregoing; whether or not the Lessee shall have notice or knowledge of any of
the foregoing. Except as expressly provided herein, the Lessee waives all rights
now or hereafter conferred by statute or otherwise to quit, terminate or
surrender this Lease or the Leased Premises or any part thereof, or to any
abatement, suspension, deferment, diminution or reduction of the Basic Rent,
additional rent or any other sum payable by it hereunder.

     3.  Transfer of Lessor's Interest
         -----------------------------
         (a)    The Lessor may at any time or from time to time assign, by way
of mortgage, deed of trust, pledge or otherwise any or all of its rights and
interest, in whole or in part, as lessor under this Lease, and from and after
receipt of written notice of any such assignment by the Lessee, (i) the assignee
may enforce any and all of the terms of this Lease, to the extent so assigned,
as though the assignee had been a party hereto, (ii) no action or failure to act
on the part of the Lessor shall adversely affect or limit any rights of the
assignee, (iii) no assignment shall release the Lessor from any of its
obligations under this Lease or constitute an assumption of any such obligations
on the part of the assignee, (iv) no amendment or modification of this Lease and
no waiver or consent hereunder shall be valid unless joined in writing by the
assignee, (v) no Basic Rent may be prepaid prior to the due date thereof without
the prior written consent of the assignee, and (vi) all notices, demands,
consents, requests, approvals and other instruments given by the Lessee
hereunder shall also be delivered to the assignee. All the rights and interests
of the assignee herein shall be terminated upon the

                                       5
<PAGE>

termination of such assignment in the manner specified in the instrument
effecting such assignment.

          (b)   This Lease shall not be subject or subordinate in any respect to
any conveyance, mortgage or deed of trust which may now or hereafter be placed
on or affect the Leased Premises.

     4.   Condition and Use
          -----------------
          (a)   The Lessee is fully familiar with the condition of the Leased
Premises, has received the same in good condition and agrees that the Leased
Premises comply in all respects' with any requirements of this Lease. The Lessor
makes no representation or warranty with respect to the condition of the Leased
Premises or their fitness or availability for any particular use and shall not
be liable for any latent or other defect therein.

          (b)   The Lessee may use the Leased Premises for any lawful purpose
and will not do or permit any act or thing which is contrary to any requirement
of law or which might impair the value of the Leased Premises or any part
thereof or which constitutes a public or private nuisance or waste.

     5.   Repairs, etc.
          -------------
          (a)   The Lessee shall at all times during the term of this Lease, at
its sole cost and expense, keep the whole and every part of the Leased Premises
and the adjoining sidewalks, curbs, fences and vaults, if any, in good order and
condition, and shall promptly make all necessary or appropriate repairs,
replacements and renewals thereof, whether interior or exterior, structural or
nonstructural, ordinary or extraordinary, foreseen or unforeseen. All repairs,
replacements and renewals shall be equal in quality and class to the original
work, and the

                                       6
<PAGE>

Lessee shall, upon the expiration of this Lease, deliver up the
Leased Premises in as good condition and repair as received, reasonable wear and
tear excepted.

          (b)   The Lessee, at its sole cost and expense, will do or cause
others to do all shoring of the foundations and walls of any building or other
improvement included in the Leased Premises or of the ground adjacent thereto,
and every other act, necessary or appropriate for the preservation and safety
thereof by reason of or in connection with any excavation or other building
operation upon the Leased Premises or any adjoining property, whether or not the
owner of the Leased Premises shall, by any requirement of law, be required to
take such action or be liable for failure to do so.

          (c)   The Lessee shall have the right during the term of this Lease,
at its sole cost and expense, at any time or from time to time, to make in or
with respect to the Leased Premises, such additions, alterations, repairs and
improvements as it shall see fit to make including the right to enlarge any
building location on the Leased Premises, install such additional fixtures,
equipment, machinery and appliances as it may require, provided that if any
additions, alterations or improvements shall change the general character of the
Leased Premises or substantially change the basic structure of any building or
other improvement included therein or adversely affect the value of the Leased
Premises, the prior written approval of the Lessor shall be obtained.

     6.   Inspection, Etc.
          ----------------
          (a)   The Lessor and any assignee of the Lessor and their authorized
representatives may, at all reasonable times during the term of this Lease upon
three (3) days' prior written notice, inspect the Leased Premises or any part
thereof. Neither the Lessor nor any

                                       7
<PAGE>

such assignee shall have any duty to make or incur any liability or obligation
for not making any such inspection.

          (b)   The Lessor may, at all reasonable times during the term of this
Lease, upon three (3) days prior written notice, enter upon the Leased Premises
for the purpose of showing the same to prospective purchasers, and, during the
final twelve (12) months of such term, to prospective lessees, and may display
on the Leased Premises during such periods, in a manner not unreasonably to
interfere with the business of the Lessee, the usual "For Sale" and "For Let"
signs.

     7.   Fixtures and improvements
          -------------------------

          All of the buildings and improvements installed or placed on the
Leased Premises by the Lessee at any time during the term of this Lease,
including alterations, repairs and improvements, are to become part of the
Leased Premises and remain thereon at the expiration or termination of this
Lease, however occurring, provided that the facilities and fixtures, including,
without limitation, the air-conditioning equipment, heating equipment and
electrical lines, feeders, transformers and equipment and the electrical
lighting fixtures and all counters, shelving and movable partitions, heretofore
or hereafter installed by or at the expense of the Lessee in, to or on the
Leased Premises, and any renewals or replacements thereof, and all other
erections, additions and/or improvements made to, in or on the Leased Premises
by and at the expense of the Lessee and susceptible of being removed from the
Leased Premises without substantial injury thereto (Facilities and Fixtures),
shall remain the property of the Lessee and the Lessee shall be entitled to
remove the same or any part thereof at any time or times during the Primary Term
of the Lease and any Extended Terms thereof, but the Lessee shall repair at its
own expense any damage done to the Leased Premises in the course of such
removal, and any Facilities and

                                       8
<PAGE>

Fixtures not so removed shall become the property of the Lessor without any
payment therefor by the Lessor. The Lessor's signs, if any, located on the
Leased Premises at the expiration or termination of this Lease may be purchased
by the Lessee at such time by payment of one dollar in cash to the Lessor and
may similarly be removed.

     8.   Lessee's Covenants
          ------------------

     The Lessee covenants and agrees (in each case, whether or not compliance
therewith or conformity thereto shall require structural changes in any building
or other improvement included in the Leased Premises, or in any sidewalk, curb,
fence or vault, if any, adjoining the Leased Premises, or shall interfere with
the use and enjoyment of the Leased Premises, or any part thereof): (i) to pay,
at the times and in the manner herein provided, all taxes, assessments, rents,
excises, levies, fees and other governmental charges and utility charges and
insurance premiums, payable by it hereunder; (ii) to comply with all laws,
statutes, codes, ordinances, orders, judgments, decrees, injunctions,
regulations, rules, permits, licenses, authorizations, directions and
requirements of all governments, departments, commissions, boards, courts,
authorities, agencies, officials and officers, foreseen or unforeseen, ordinary
or extraordinary; (iii) to comply with all instruments of record which now or at
any time hereafter may be applicable to the Leased premises or any part thereof,
or any of the adjoining sidewalks, curbs, fences and vaults, if any, or the
ownership or use of any thereof; and (iv) to conform to all requirements of all
policies of insurance covering the Leased Premises or insuring the Lessor or the
Lessee in connection therewith; and (v) not to do or permit to be done on or in
connection with the Leased Premises any act or thing which might impose any
liability or responsibility upon the Lessor or subject the Leased Premises to
any mortgage, lien, encumbrance or charge, other than the exceptions referred to
in Schedule A hereto and any mortgage or deed of trust

                                       9
<PAGE>

created by the Lessor to secure indebtedness incurred in connection with its
acquisition of the Leased Premises, and to discharge any such mortgage, lien,
encumbrance or charge which may arise. Notwithstanding anything to the contrary
contained in the previous sentence, the Lessee in good faith, at its own expense
and in a lawful and diligent manner, may contest (in the case of any item of
importance, after prior written notice to the Lessor) the propriety of any such
tax, assessment, rent, excise, levy, fee or charge or the validity, effect,
operation or application of any such law, statute, code, ordinance, order,
judgment, decree, injunction, regulation, rule, permit, license, authorization,
direction, requirement or instrument. The Lessee agrees that every such contest
shall be by appropriate proceedings which shall operate during the pendency
thereof to prevent (i) except as set forth hereafter the collection of, or other
realization upon, such tax, assessment, rent, levy, fee, rent or charge or lien
encumbrance; (ii) the sale, forfeiture or loss of the Leased Premises, or any
part thereof, or the Basic Rent or any additional rent, or any portion thereof;
(iii) any interference with the use and occupancy of the Leased Premises or any
part thereof; and (iv) any interference with the payment of the Basic Rent or
any additional rent, or any portion thereof. The failure to comply with the
provisions of the first sentence of this Section 8 during the period of such
contest shall not constitute a default hereunder. If, upon termination of any
such contest, payment of or compliance with the contested item is required, the
lessee shall pay or comply with the same forthwith. The Lessee shall indemnify
and save harmless the Lessor from all liability for fines, penalties,
forfeitures and like charges imposed upon it by reason of any such contest or of
the Lessee's noncompliance during the period thereof. In case of a tax contest,
the Lessee shall first pay said tax under protest and in case of contest of any
other item, shall furnish to the Lessor, if requested, an indemnity bond in an
amount reasonably satisfaction factory to the Lessor executed by the Lessee and
a surety

                                       10
<PAGE>

company reasonably satisfactory to the Lessor or, at Lessee's option,
deposit moneys with the Lessor in such an amount as shall be reasonably
necessary to indemnify the Lessor as aforesaid.

     9.  Indemnification, Etc.
         ---------------------

         (a)    The Lessee will protect, indemnify and save the Lessor harmless
from and against any and all liabilities, claims, damages, penalties, causes of
action, costs and expenses (including reasonable attorneys' fees and expenses)
of any nature arising from any accident, injury to or death of persons or loss
of or damage to property occurring on the Leased Premises or on adjoining
sidewalks, curbs, fences or vaults, if any, or in any manner growing out of or
connected with the Lessee's use and occupancy of the Leased Promises or the
condition thereof or of the adjoining sidewalks, curbs, fences or vaults, if
any, during the term of this Lease. In case any action, suit or proceeding is
brought against the Lessor by reason of any such occurrence, the Lessee upon the
request of the Lessor, will at the Lessee's expense resist and defend such
action, suit or proceeding, or cause the same to be resisted and defended by
counsel designated by the Lessee and subject to the reasonable approval of the
Lessor. The obligations of the Lessee under this section shall survive any
termination of this Lease.

          (b)   Nothing contained in this Lease shall constitute any consent or
request by the Lessor, express or implied, for the performance of any labor or
services or the furnishing of any materials or other property with respect to
the Leased Premises, nor be construed as giving the Lessee any right, power or
authority to contract for or permit the performance of any labor or services or
the furnishing of any materials or other property in such fashion as would
permit the making of any claim against the Lessor in respect thereof.

                                       11
<PAGE>

     10.  Insurance
          ---------

          (a)   The Lessee will at all times maintain insurance on the Leased
Premises of the following character:

                (i)     insurance against loss or damage by fire, lightning,
windstorm, hail, explosion, aircraft, smoke damage, vehicle damage and other
risks from time to time included under "extended coverage" policies and such
other risks as are or shall customarily be insured against with respect to
property that is similar to the Leased Premises, in amounts sufficient to
prevent the Lessor or the Lessee from becoming a co-insurer of any loss under
the applicable policies, but in any event in amounts not less than the full
insurable value of the Leased Premises. The term "full insurable value", as used
herein, means actual replacement value less physical depreciation

                (ii)    general public liability insurance against claims for
bodily injury, death or property damage occurring on, in or about the Leased
Premises and the adjoining streets, sidewalks and passageways, such insurance to
afford protection to the Lessor of not less than $500,000 with respect to bodily
injury or death to any one person, not less than $1,000,000 with respect to any
one accident, and not less than $500,000 with respect to property damage.
Policies for such insurance shall be for the mutual benefit of the Lessor and
the Lessee and, to the extent obtainable, the Mortgagees under the Mortgage
hereinafter referred to.

                (iii)   workmen's compensation insurance covering all persons
employed in connection with any work done on or about the Leased Premises in
connection with which claims for death or bodily injury could be asserted
against the Lessor, the Lessee or the Leased Premises, provided that in lieu of
such insurance, the Lessee may furnish the Lessor with

                                       12
<PAGE>

satisfactory evidence that the Lessee has adopted a satisfactory method for the
payment of compensation permitted by the laws of the state in which the Leased
Premises is located.

                (iv)    such other insurance on the Leased Premises in such
amounts and against such other insurable hazards which at the time are commonly
obtained in the case of property similar to the Leased Premises, including war
risk insurance when and to the extent obtainable from the United States
Government or an agency thereof. Such insurance shall be written by companies of
recognized financial standing which are authorized to do an insurance business
in the state in which the Leased Premises is located and such insurance shall
name as the insured parties thereunder the Lessor and the Lessee, as their
interests may appear. Such insurance may be obtained by the Lessee by
endorsement on its blanket insurance policies provided that such blanket
policies fulfill the requirements specified above in this paragraph 10(a). The
Lessor shall not be required to prosecute any claim against any insurer or to
contest any settlement proposed by any insurer, provided, however, that the
Lessee may, at its sole cost and expense, prosecute any such claim or contest
any such settlement, and in such event the Lessee may bring any such prosecution
or contest in the name of the Lessor, the Lessee, or both and the Lessor will
join therein at the Lessee's written request upon the receipt by the Lessor of
an indemnity from the Lessee against any and all costs, liabilities and expenses
in connection with such prosecution or contest. Notwithstanding any of the
provisions of this paragraph 10(a), so long as the Lessee shall, in accordance
with sound accounting practices, maintain self-insurance reserves against loss
or damage from the risks required to be insured against pursuant to clause (i)
of this Section 10(a), the Lessee may, in lieu of insuring the Leased Premises
as provided above be and become a self-insurer thereof to the extent of up to
$10,000 of the insurable value of the Leased Premises.

                                       13
<PAGE>

          (b)   Insurance claims by reason of damage or destruction to any
portion of the Leased Premises shall be adjusted by the Lessee, but the Lessor
shall have the right to join with the Lessee in adjusting any such loss. If the
entire amount of any proceeds paid pursuant to such claims shall not exceed
$50,000 then such proceeds shall be payable to the Lessee. If the entire amount
of any proceeds paid pursuant to such claims shall exceed $50,000, such proceeds
shall be paid to the Lessee by the recipient thereof but only upon certificates
of the Lessee, signed by the Treasurer or Vice President of the Lessee,
delivered to the Lessor from time to time as the work of rebuilding, replacing
and repairing the damage or destruction to the Leased Premises required by
paragraph 11(b) progresses. Upon completion of such work any remaining proceeds
will be paid to the Lessee upon delivery to the Lessor of a certificate of the
Lessee, signed by the Treasurer or a Vice President thereof, to the effect that
such work has been completed and complies with the requirements of paragraph
11(b). No payment of any proceeds shall be made to the Lessee pursuant to this
paragraph 10(b) if any default shall have happened and be continuing under this
Lease unless and until such default shall have been cured or removed.

          (c)   Every such insurance policy shall bear a first mortgagee
endorsement in favor of any mortgagee or mortgagees of the Leased Premises
(herein, together with any assignee of said mortgagee's or mortgagees' interest
in the Mortgage hereinafter referred to, called the Mortgagees) under a
mortgage, deed of trust, indenture of mortgage and deed of trust or other
similar security instrument covering the Leased Premises (herein called the
Mortgage), and any loss under any such policy shall be made payable to the
Mortgagees, provided, however, that any recoveries under any of said policies
shall be applied by the Mortgagees, in the manner provided in paragraph 10(b).
Every such policy shall contain to the extent obtainable, an agreement by the
insurer that it will not cancel such policy except after 10 days prior written

                                       14
<PAGE>

notice to the Lessor and to the Mortgagees and that any loss otherwise payable
thereunder shall be payable notwithstanding any act or negligence of the Lessor
or the Lessee which might, absent such agreement result in a forfeiture of all
or a part of such insurance payment and notwithstanding (i) the occupation or
use of the Leased Premises for purposes more hazardous than permitted by the
terms of such policy, (ii) any foreclosure or other action or proceeding taken
by the Mortgagees or either of them pursuant to any provision of the Mortgage
upon the happening of an event of default, as defined therein, or (iii) any
change in title or ownership of the Leased Premises.

          (d)   The Lessee shall deliver to the Lessor promptly after the
execution and delivery of this Lease the original or duplicate policies or
certificates of the insurers, satisfactory to the Mortgagees, if any, evidencing
all the insurance which is then required to be maintained by the Lessee
hereunder, and the Lessee shall, within 30 days prior to the expiration of any
such insurance, deliver other original or duplicate policies or other
certificates of the insurers evidencing the renewal of such insurance. Should
the Lessee fail to effect, maintain or renew any insurance provided for in this
paragraph 10, or to pay the premium therefor, or to deliver to the Lessor any of
such policies or certificates, then and in any of said events the Lessor, at its
option, but without obligation so to do, may, upon 5 days' notice to the Lessee
of its intention so to do, procure such insurance, and any sums expended by it
to procure any such insurance shall be additional rent hereunder and shall be
repaid by the Lessee within 5 days following the date an which such expenditure
shall be made by Lessor.

          (e)   The Lessee shall not obtain or carry separate insurance
concurrent in form or contributing in the event of loss with that required in
this paragraph 10 to be furnished by the Lessee unless the Lessor is included
therein as a named insured, with loss payable as in this

                                       15
<PAGE>

Lease provided. The Lessee shall immediately notify the Lessor whenever any such
separate insurance is obtained and shall deliver the policy or policies or
certificates evidencing the same.

     11.  Damage or Destruction
          ---------------------
          (a)   If, during the term of this Lease, any building or other
improvement included in the Leased Premises is partially damaged or destroyed by
fire, the elements or any other cause, the Lessee shall, whether or not the
insurance proceeds, if any, on account of such damage or destruction are
sufficient for the purpose, at its expense repair or rebuild the same within a
reasonable time as nearly as possible to its value, condition and character
immediately prior to such damage or destruction, and there shall be no abatement
of rent during the time of repair or rebuilding.

          (b)   If the Leased Premises shall be substantially damaged or
destroyed in any single casualty so that the Leased Premises shall be unsuitable
for restoration for the Lessee's continued use and occupancy in the Lessee's
business, then at the Lessee's option, in lieu of rebuilding, replacing and
repairing the Leased Premises as provided in this Lease, the Lessee may give
notice to the Lessor, within 30 days after the occurrence of such damage or
destruction, of the Lessee's intention to terminate this Lease on any business
day specified in such notice which occurs not less than 60 nor more than 120
days after the date of such damage or destruction, provided that such notice
shall be accompanied by a certificate of the Lessee, signed by the Treasurer or
a vice President thereof, stating that, in the judgment of the Board of
Directors of the Lessee, the Leased Premises are unsuitable for the Lessee's
continued use and occupancy and the Lessee's business by reason of such
casualty, the Lessee does not intend to rebuild, replace or repair the Leased
Premises and the Lessee has discontinued the use of the Leased Premises or
intends to discontinue such use within 90 days after such casualty, and

                                       16
<PAGE>

provided, further that if such termination date occurs during the Interim or
Primary Terms, as a part of said notice the Lessee shall give its irrevocable
offer to purchase the Leased Premises on such termination date at a price
determined in accordance with Schedule C. If the Lessor shall reject such offer
to purchase by notice given to the Lessee not later than the 10th day prior to
such termination date, or if such termination date occurs during an Extended
Term of this Lease, this Lease shall terminate on such date, except with respect
to obligations and liabilities of the Lessee under this Lease, actual or
contingent, which have arisen on or prior to such date, upon payment by the
Lessee of all installments of Basic Rent and all other sums then due and payable
under this Lease to and including such date of termination. Unless the Lessor
shall have rejected such offer to purchase by notice to Lessee given not later
than the 10th day prior to such termination date, the Lessor shall be
conclusively presumed to have accepted said offer to purchase, and, if the
Lessee shall not be in default under this Lease on such termination date, the
Lessor shall transfer and convey the Leased Premises on such date and shall pay
over or assign all rights to receive the proceeds of any insurance payable in
connection with such damage or destruction to the Lessee upon the terms and
provisions, set forth in paragraph 14, against payment by the Lessee of the
purchase price therefor, together with all installments of Basic Rent and all
other sums then due and payable under this Lease to and including such date of
termination.

          (c)   All insurance proceeds received by or payable to the Lessor or
any assignee of the Lessor on account of any damage to or destruction of the
Leased Premises or any part thereof (less the actual costs fees and expenses
incurred in the collection thereof) shall be applied or dealt with by the Lessor
or such assignee, as the case may be, as follows:

                                       17
<PAGE>

                (i)     All such proceeds actually received on account of any
such damage or destruction other than a Total Destruction shall, unless the
Lessee is in default hereunder, be paid over to the Lessee or as it may direct
from time to time as the repair or rebuilding progresses to pay (or reimburse
the Lessee for) the cost thereof, but only upon the written request of the
Lessee accompanied by evidence reasonably satisfactory to the Lessor or such
assignee, as the case may be, that the sum requested has been paid or is then
due and payable and is a proper item of such cost. Upon receipt by the Lessor or
such assignee, as the case may be, of evidence reasonably satisfactory to it
that the repair or rebuilding has been completed and the cost thereof paid in
full and that there are no mechanic's or similar liens for labor or materials
supplied in connection therewith, the balance, if any, of such proceeds shall,
unless the Lessee is in default hereunder, be paid over or assigned to the
Lessee or as it may direct.

                (ii)    All such proceeds received or payable on account of a
Total Destruction shall, upon payment of the purchase price for the Leased
Premises, be paid over or assigned to the Lessee or as it may direct.

          (d)   The Lessee shall give the Lessor prompt written notice of any
material damage to or destruction of all or any part of the buildings or other
improvements included in the Leased Premises, specifying the particulars of the
same in reasonable detail.

     12.  Condemnation
          ------------

          (a)   If (i) the entire Leased Premises shall be taken in or by
condemnation or other eminent domain proceedings pursuant to any law, general or
special or (ii) any substantial portion of the Leased Premises which is
sufficient to render the remaining portion thereof unsuitable for the Lessee's
continued use or occupancy in the Lessee's business shall be taken in

                                       18
<PAGE>

or by any such proceedings (any taking of such entire or substantial portion
being termed a Total Taking), then the Lessee shall, within 30 days after any
such taking, give notice to the Lessor of its intention to terminate this Lease
on any business day specified in such notice which occurs not less than 60 nor
more than 120 days after such taking. If such date of termination occurs during
the Interim or Primary Terms, as part of said notice of termination the Lessee
shall (A) make an irrevocable offer to purchase the remaining portion of the
Leased Premises (or, in case of the taking of the entire Leased Premises, the
award payable in connection with such taking or the right to receive the same
when made, if no payment thereof has yet been made) on said termination date at
a price determined in accordance with Schedule C hereof, and (B) if less than
the entire Leased Premises shall have been taken, deliver to the Lessor a
certificate of the Lessee, signed by the Treasurer or any Vice President
thereof, stating that, in the judgment of the Board of Directors of the Lessee,
the portion of the Leased Premises so taken is sufficient to fulfill the
conditions set forth in clause (ii) of this paragraph 12(a), that the Lessee
does not intend to repair, rebuild or restore the Leased Premises and that the
Lessee had discontinued the use of the Leased Premises or intends to discontinue
such use 90 days after such taking. If the Lessor shall reject such offer to
purchase by notice given to the Lessee not later than the 10th day prior to such
termination date, or if such termination date occurs during an Extended Term of
this Lease, this Lease shall terminate on such date, except with respect to
obligations and liabilities of the Lessee under this Lease, actual or
contingent, which have arisen on or prior to such date, upon payment by the
Lessee of all installments of Basic Rent and all other sums then due and payable
under this Lease to and including such date of termination. Unless the Lessor
shall have rejected such offer to purchase by notice to the Lessee given not
later than the 10th day prior to such termination date, the Lessor shall be
conclusively presumed to have accepted said offer to

                                       19
<PAGE>

purchase, and on such date of termination, the Lessor shall transfer and convey
the remaining portion of the Leased Premises, if any, to the Lessee or its
nominee upon the terms and provisions set forth in paragraph 14 and shall pay to
the Lessee or its nominee the entire award actually received by the Lessor in
connection with such taking, less any expenses incurred in collecting such award
(such award less such expenses being herein called the "net award"), or, if such
award shall not have been received by the Lessor, the Lessor shall assign to the
Lessee all its right, title and interest in and to such award, in either case
against payment by the Lessee of the purchase price therefor, together with all
installments of Basic Rent and all other sums then due and payable under this
Lease to and including such date of termination.

          (b)   In case of any condemnation or taking affecting the Leased
Premises other than a Total Taking, the Lessee shall, whether or not the awards
or payments, if any on account thereof are sufficient for the purpose, restore
the Leased Premises within a reasonable time as nearly as possible to the value,
condition and character thereof immediately prior to such occurrence, and this
Lease shall remain in full force and effect and there shall be no abatement or
reduction of rent as a result thereof.

          (c)   The Lessor shall be entitled to all condemnation awards and
payments made or payable on account of any such taking, and the Lessee hereby
irrevocably assigns, transfers and sets over to the Lessor all rights of the
Lessee to any award or payment on account of any such occurrence and irrevocably
authorizes and empowers the Lessor, in the name of the Lessee or otherwise, to
file and prosecute what would otherwise be the Lessee's claim for any such award
or payment and to collect, receipt for and retain the same. Provided that the
Lessee is not then in default hereunder, the Lessor shall apply such awards and
payments in the manner set forth in paragraph 12 (a), 12 (b) and 12 (f) to the
extent any such paragraph may be

                                       20
<PAGE>

applicable. The Lessee will pay all reasonable costs, fees and expenses incurred
by the Lessor or any assignee of the Lessor in connection with any such
occurrence and the seeking and obtaining of any award or payment on account
thereof.

          (d)   The Lessee shall give the Lessor prompt written notice of any
such condemnation or taking or the commencement of any proceedings or
negotiations which would result in any such occurrence, specifying the
particulars of the same in reasonable detail.

          (e)   The foregoing provisions shall also apply in the event of a
negotiated sale to a public or quasi-public authority under threat of or in lieu
of condemnation, provided that if at the time of any such proposed sale the
Lessee is in possession of the Leased Premises, the Lessee's prior consent to
such sale must be obtained.

          (f)   All awards and payments received by or payable to the Lessor or
any assignee of the Lessor on account of any condemnation, taking, or negotiated
sale in lieu thereof (less the actual costs, fees and expenses incurred in the
collection thereof if not paid by the Lessee as hereinabove provided) shall be
applied or dealt with by the Lessor or such assignee, as the case may be, as
follows:

                (A)     All such awards and payments actually received, other
     than those in respect to a Total Taking, shall be applied as follows:

                        (i)     Subject to subparagraph (ii) below, such awards
and payments shall be applied to pay the cost of restoration of the Leased
Premises, such application to be effected substantially in the same manner and
subject to the same conditions as provided in the section hereof entitled
"Damage or Destruction" with respect to insurance proceeds, except that, in case
the total amount of such awards and payments shall not exceed $10,000, such

                                       21
<PAGE>

awards and payments shall be paid over to the Lessee, if not in default
hereunder, forthwith upon written request therefor and without compliance with
any of such conditions.

                        (ii)    In case of a taking of the Leased Premises for
temporary use, such awards and payments shall be held and applied to the payment
of Basic Rent, additional rent and other amounts becoming payable by the Lessee
hereunder for the period of temporary use, provided that, if any portion of such
awards and payments is made by reason of any damage to or destruction of the
Leased Premises during such taking for temporary use, such portion shall be held
and applied as provided in subparagraph (i) above after such taking is
terminated.

                        (iii)   The balance, if any, of such awards and payments
not required to be held or applied in accordance with the foregoing
subparagraphs (i) and (ii) shall, unless the Lessee is in default hereunder, be
paid over or assigned to the Lessee or as it may direct.

                 (B)     All such awards and payments received or payable
on account of a Total Taking shall, upon payment of the purchase price for the
facility be paid over in accordance with the provisions of paragraph 12(a).

     13.  Economic Abandonment
          --------------------

     So long as the Lessee is not in default under this Lease if the Leased
Premises shall have become uneconomic and unsuitable for the Lessee's continued
use and occupancy and if the Board of Directors of the Lessee has determined to
discontinue the use of the Leased Premises in its business operations during the
period ending on the first anniversary of the date of the delivery of the notice
mentioned hereafter in this paragraph 13, or if the Lessee has on or before such
date of delivery already discontinued such use, then the Lessee may notify the
Lessor on or

                                       22
<PAGE>

after September 1, 1977, of its intention to terminate this Lease
on any business day specified in such notice which occurs during the Primary
Term and which is not less than 180 nor more than 240 days after the date of the
delivery of such notice, provided that, as a part of said notice, Lessee shall
make an irrevocable offer to purchase the Leased Premises on such date of
termination at a price determined in accordance with Schedule C hereof.  Such
notice and offer shall be accompanied by a certificate, signed by the Treasurer
or any Vice President of the Lessee, to the effect that the Lessee's Board of
Directors has determined that the Leased Premises have become uneconomic or
unsuitable for the Lessee's continued use and occupancy, and to the further
effect that the Lessee has discontinued the use of the Leased Premises or
intends to discontinue such use during the period ending on the first
anniversary of the date of the delivery of such notice to the Lessor.  If the
Lessor shall reject such offer to purchase by notice given to the Lessee not
later than the 10th day prior to such termination date, this Lease shall
terminate on such termination date, except with respect to obligations and
liabilities of the Lessee under this Lease, actual or contingent, which have
arisen on or prior to such date, upon payment by the Lessee of the Basic Rent
due and payable by it to and including such date of termination.  Unless the
Lessor shall have rejected such offer to purchase by notice to the Lessee given
not later than the 10th day prior to such termination date, the Lessor shall be
conclusively presumed to have accepted said offer to purchase, and on such
termination date the Lessor shall convey the Leased Premises to the Lessee
pursuant to paragraph 14, against payment by the Lessee of the purchase price
therefor, together with all installments of Basic Rent and all other sums then
due under this Lease and unpaid to and including such termination date.

                                       23
<PAGE>

     14.  Procedure Upon Purchase
          -----------------------

          (a)   In the event of the purchase of the Leased Premises or any part
thereof by the Lessee pursuant to any provision of this Lease, the Lessor need
not transfer and convey to the Lessee or its nominee any better title thereto
than existed on the date of the commencement of this Lease, and the Lessee shall
accept such title, subject, however, to all liens, encumbrances, charges,
exceptions and restrictions attaching thereto on or after the commencement date
of this Lease which have not been created or caused by Lessor and to all
applicable laws, regulations and ordinances, but free of the lien of the
Mortgage, if any.

          (b)   Upon the date fixed for any such purchase of the Leased Premises
of a part thereof pursuant to any provision of this Lease, the Lessee shall pay
to the Lessor at its address set forth above or at any other place designated by
the Lessor the purchase price therefor specified herein and the Lessor shall
there deliver to the Lessee (i) a deed with covenants against acts of the
Lessor, which deed relates to the Leased Premises or the portion thereof then
being sold to the Lessee and shall convey and transfer at least the title
thereto which is described in paragraph 14, together with (ii) such other
instruments as shall be necessary to transfer to the Lessee any other property
then required to be sold by the Lessor pursuant to this Lease. The Lessee shall
pay all charges incident to such conveyance and transfer, including any counsel
fees, escrow fees, recording fees, title insurance premiums and all applicable
federal, state and local taxes (other than any income or franchise taxes levied
upon or assessed against the Lessor) which may be incurred or imposed by reason
of the conveyance and transfer of the Leased Premises or part thereof then being
purchased, or by reason of the delivery of said deed and other instruments. Upon
the completion of such purchase, but not prior thereto (whether or not any delay
in the completion of, or the failure to complete, such purchase shall be the
fault of the

                                       24
<PAGE>

Lessor), this Lease and all obligations hereunder (including the
obligations to pay Basic Rent and additional rent) shall terminate with respect
to the Leased Premises except with respect to obligations and liabilities of the
Lessee, actual or contingent, under this Lease which arose on or prior to said
date of purchase.

     15.  Assignment And Subletting
          -------------------------

     The Lessee may sublet the Leased Premises or any part thereof, and with the
consent of the Lessor (which consent will not be unreasonably withheld), may
assign all of its rights and interests under this Lease, provided that each such
sublease shall expressly be made subject to the provisions of this Lease.  If
the Lessee assigns all its rights under this Lease, the assignee under such
assignment shall expressly assume all of the obligations of the Lessee hereunder
in a written instrument delivered to the Lessor within 30 days after such
assignment.  No assignment or sublease made as permitted by this paragraph 15
shall affect or reduce any of the obligations of the Lessee hereunder, and all
the obligations of the Lessee hereunder shall continue in full force and effect
as the obligations of a principal and not as the obligations of a guarantor or
surety, to the same extent as though no assignment or subletting had been made.
No sublease or assignment made as permitted by this paragraph 15 shall impose
any obligations on the Lessor, or otherwise affect any of the rights of the
Lessor under this Lease.  Neither this Lease nor the terms hereby demised shall
be mortgaged by Lessee, nor shall the Lessee mortgage or pledge the interest of
the Lessee in and to any sublease of the Leased Premises or the rentals payable
thereunder.  Any such mortgage or pledge, and any such sublease or assignment
made in violation of this paragraph 15 shall be void.  The Lessee shall within
10 days after the execution and delivery of any such assignment, deliver a
conformed copy thereof to the Lessor and within 10 days after the execution and
delivery of any such sublease, the Lessee shall give notice to the

                                       25
<PAGE>

Lessor of the existence and term of such sublease, and of the name and address
of the sublessee thereunder. So long as the Lessee shall not be in default
hereunder, the Lessee shall be entitled to receive and retain all rents payable
pursuant to any lease of a portion of the Leased Premises existing on the date
of the commencement of this Lease.

     16.  Reimbursement for Alterations and Additions
          -------------------------------------------

          (a)   On any date during the Primary Term, Lessee may by notice to
Lessor request that Lessor pay to Lessee the amount of Lessee's unreimbursed
expenses, determined as provided hereinafter in this Section 16 (herein called
the Reimbursable Expenses), which have been incurred by Lessee in connection
with construction of any buildings, structures or other improvements which is
permitted by Section 5 but which is not required under any other provision of
this Lease, provided that the amount of the Reimbursable Expenses exceeds
$200,000. Such request shall be accompanied by a certificate, signed by the
President or a Vice President of Lessee and dated the date of such request,
setting forth in reasonable detail the amount and character of the Reimbursable
Expenses and a description of the buildings, structures or other improvements in
connection with which such Expenses were incurred, stating that the construction
in connection with which such Expenses were incurred has been completed in
compliance with the requirements of this Section 16, specifying the date on
which the construction of each such building, structure and other improvement
was completed, and stating that such Expenses are reimbursable in the amounts
requested under the term of this Section 16. Upon receipt of such request and
certificate, Lessor agrees to pay to Lessee an amount equal to such Expenses so
certified, but only if the following further conditions shall have been
fulfilled within 90 days after the receipt of such request and certificate:

                                       26
<PAGE>

                (i)     Additional notes of Lessor (herein called the
Improvement Notes) , issued for the purpose of obtaining funds to make such
payment to Lessee and fulfilling the terms and conditions of the Indenture shall
have been sold by Lessor after the receipt of Lessor of such request and
certificate from Lessee, and the proceeds of the sale of the Improvement Notes
actually received by Lessor shall have been at least equal to the amount of the
payment to be made to Lessee pursuant to its request as provided above;

                (ii)    Lessor and Lessee shall have executed, acknowledged and
delivered a supplement to this Lease, which supplement (herein called the Lease
Supplement) shall, as of the date of such payment to Lessee (herein called the
Reimbursement Date) and thereafter during the continuance of this Lease: (A)
increase each Basic Rent payment required to be made during the Primary Term
and, if necessary, the Extended Terms of this Lease by an equal amount which
shall be at least sufficient to make each payment, when due, of principal of,
and interest on, the Improvement Notes. (B) increase the purchase prices set
forth in Schedule C hereof that would be payable upon a purchase of the Leased
Premises by Lessee pursuant to Sections 11(b), 12(a), 13 and 16(b) hereof by
amounts which shall at all times thereafter be at least sufficient to prepay the
then outstanding principal amount of the Improvement Notes, together with all
accrued interest thereon and (C) make such other changes, if any, as shall be
required by the modifications made by the Lease supplement, and ratify and
confirm this Lease in all other respects;

                (iii)   Lessor and Lessee shall have executed, acknowledged and
delivered a supplement to the Assignment of Lease and Agreement dated as of July
25, 1967 from Lessor and Lessee to the Trustees (herein called the Assignment)
relating to this Lease, which supplement (herein called the Assignment
Supplement) shall, as of the Reimbursement

                                       27
<PAGE>

Date and thereafter during the continuance of this Lease, expressly and
specifically subject this Lease as supplemented by the Lease Supplement to the
assignment of this Lease as originally executed which was made by the Indenture
and the Assignment as originally executed;

                (iv)    Lessor shall have received an opinion of counsel for
Lessee, dated the Reimbursement Date and in form and substance satisfactory to
Lessor, to the effect that: (A) Lessee has fulfilled all the requirements of
this Lease which must be fulfilled by Lessee in connection with the
reimbursement of Lessee by Lessor of the Reimbursable Expenses, (B) the Lease
Supplement and the Assignment Supplement have been duly authorized, executed and
delivered by Lessee and are legal, valid and binding obligations of Lessee
enforceable against Lessee in accordance with their respective terms, and to the
effect that such Supplements effectively amend this Lease and the Assignment,
respectively, and this Lease as so supplemented and said Assignment as so
supplemented are legal, valid and binding obligations of Lessee enforceable
against Lessee in accordance with their respective terms and have been recorded
or filed in all offices in which recording or filing is necessary in order to
publish notice or to protect the validity thereof, (C) neither the execution or
delivery of such Supplements, nor the consummation of the transactions
contemplated therein, nor compliance with the provisions thereof, conflict or
will conflict with, or result in a breach of, any of the terms, conditions or
provisions of, or constitute a default under, Lessee's certificate of
incorporation or by-laws, or any contract or agreement to which Lessee is a
party or by which it is bound, nor will any of such acts result in a violation
of any law, order, rule, regulation, injunction, judgment or decree of any court
or governmental authority, (D) no approval, authorization, order, license,
permit, franchise or consent of, or registration, declaration or filing with,
any government authority is required in connection with the execution, delivery
or performance by Lessee of such

                                       28
<PAGE>

Supplements, or, if any such approval, authorization, order, license, permit,
franchise, consent, registration, declaration or filing is required, specifying
the same and stating that the same has been obtained or made and is in full
effect, and (E) Lessee is a validly organized and existing corporation in good
standing under the laws of the state in which it is incorporated and is duly
qualified to do business and is in good standing in the state in which the
Leased Premises are located; it being understood that such opinion may be
subject to the qualification that the rights and remedies set forth in this
Lease and the Assignment as supplemented by such Supplements are subject to any
applicable bankruptcy and insolvency law;

                (v)     An amendment or endorsement to the mortgage title
insurance policy theretofore delivered to the Trustees pursuant to Section
3.11(a) of the Indenture with respect to the Leased Premises, satisfactory in
form and substance, to Lessor and the Trustees, increasing the net amount of
such mortgage title insurance by an amount equal to the Reimbursable Expenses,
redating such policy to the Reimbursement Date, and not containing any
additional exceptions to title to the Leased Premises other than Permitted
Encumbrances, as defined in the Indenture;

                (vi)    A copy of a revised survey of the Leased Premises, dated
within 30 days of the Reimbursement Date and satisfactory in form and substance
to Lessor and the Trustee, showing the exact location and dimensions of the
Leased Premises including the improvements thereon; and the exact location of
all lot and street lines, all means of access to the Leased Premises, all wires
pipes and other conduits and easements relating to the Leased Premises; and

                (vii)   Such other certificates of Lessee as Lessor may
reasonably request in order to enable Lessor to finance the cost of the
Reimbursable Expenses.

                                       29
<PAGE>

          (b)   Lessor shall incur no liability under this Lease by reason of
its inability to finance the cost of the Reimbursable Expenses. If (i) Lessor
shall have made diligent efforts to sell the Improvement Notes in order to
finance the Reimbursable Expenses, (ii) Lessor and Lessee are unable to agree
upon the interest rate which such Improvement Notes will bear, and if the rent
increases which the Lessee shall have been willing to make shall be sufficient
to amortize 100% of the principal amount of such Improvement Notes by their
maturity, at an interest rate which is not less than the prime rate then
chargeable by First National City Bank for commercial loans plus 1% and (iii)
Lessor does not reimburse Lessee within a period of 90 days after the date of
the receipt of Lessee's request for such reimbursement (herein called the Final
Date), Lessee shall, within 30 days after the Final Date, have the right to give
notice to Lessor of its intention to terminate this Lease on any business day
specified in such notice which occurs not less than 30 nor more than 60 days
after such notice. As part of such notice, Lessee shall make an irrevocable
undertaking to purchase the Leased Premises on such date of termination at a
price determined in accordance with Schedule C hereof, and this Lease shall
terminate on such termination date, except with respect to obligations and
liabilities of Lessee under this Lease, actual or contingent, which have arisen
on or prior to such date, upon payment by Lessee of the Basic Rent due and
payable by it to and including such date of termination. On such termination
date Lessor shall convey the Leased Premises to Lessee pursuant to Section 14
against payment by Lessee of the purchase price therefor, together with all
installments of Basic Rent and all other sums then due under this Lease and
unpaid to and including such termination date. Notwithstanding the preceding
provisions of this Section 16, Lessee shall not have the right to terminate this
Lease and to purchase the Leased Premises, as provided in Section 16, if Lessor
shall be unable to reimburse Lessee for the Reimbursable Expenses due to the
failure of Lessee

                                       30
<PAGE>

(i) to negotiate in good faith the increase in Basic Rent and the increases in
the purchase prices, referred to in clause (ii) of Section 16 (a), in order to
make the payments of interest and principal on the Improvement Notes, or (iii)
to deliver to Lessor the certificates, documents, opinion and other instruments
referred to in paragraph 16 (a). If Lessee does not elect to terminate this
Lease as hereinabove provided, this Lease shall continue in full effect and
Lessee shall have no right against Lessor due to failure of Lessor to reimburse
Lessee as provided in paragraph 16 (a).

     17.  Right to Perform
          ----------------

     If the Lessee shall fail to make any payment or perform any act required to
be made or performed by it hereunder, the Lessor, without notice to or demand
upon the Lessee and without waiving or releasing any obligation or default of
the Lessee, may (but shall be under no obligation to) at any time thereafter
make such payment or perform such act for the account and at the expense of the
Lessee, and may enter upon the Leased Premises or any part thereof for such
purpose, and take all such action thereon as, in the opinion of the Lessor, may
be reasonably necessary or appropriate therefor.  No such entry shall be deemed
to be an eviction of the Lessee.  All payments so made by the Lessor and all
costs and expenses (including reasonable attorneys' fees and expenses) incurred
in connection therewith or in connection with the performance by the Lessor of
any such act shall constitute additional rent hereunder.

     18.  Events of Default
          -----------------

          (a)   Provided always and these presents are made upon the express
condition that, if any one or more of the following events ("Events of Default")
shall occur;

                (i)     if the Lessee abandons the Leased Premises, except as
hereinbefore provided, before the expiration of the term hereof; or

                                       31
<PAGE>

                (ii)    if the Lessee shall fail to pay any Basic Rent when and
as the same becomes due and payable, and such failure shall continue for more
than five (5) days after the Lessee shall have received written notice thereof
from the Lessor; or

                (iii)   if the Lessee shall fail to pay any additional rent or
other sum (other than Basic Rent) payable by it to the Lessor when and as the
same becomes due and payable, and such failure shall continue for more than ten
(10) days after the Lessee shall have received written notice thereof from the
Lessor; or

                (iv)    if the Lessee does not or shall neglect or fail to
perform or observe any other covenant or condition herein contained, which on
its part is to be performed, and such neglect or failure shall continue for more
than twenty (20) days after the Lessee shall have received written notice
thereof from the Lessor; or

                (v)     if the Lessee shall make a general assignment for the
benefit of creditors, or shall admit in writing its inability to pay its debts
as they become due, or shall file a petition in bankruptcy, or shall be
adjudicated a bankrupt or insolvent, or shall file a petition seeking any
reorganization, arrangement, composition. readjustment, liquidation, dissolution
or similar relief under any present or future statute, law or regulation, or
shall file an answer admitting or not contesting the material allegations of a
petition against it in any such proceeding, or shall seek or consent to or
acquiesce in the appointment of any trustee, receiver or liquidator of Lessee or
any material part of its properties; or

                (vi)    if, within sixty (60) days after the commencement of any
proceeding against the Lessee seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
present or future statute, law or regulation, such proceeding shall not have
been dismissed, or if, within sixty (60) days after the

                                       32
<PAGE>

appointment without the consent or acquiescence of the Lessee, of any trustee,
receiver or liquidator of the Lessee or of any material part of its properties,
such appointment shall not have been vacated; or

                (vii)   if the Lessee shall default in the same manner as
specified in clauses (a), (b), (c) or (d) above under any other lease between
the Lessor and the Lessee having provisions substantially similar to those of
this Lease; then and in any such event the Lessor may at its option terminate
this Lease, or terminate the Lessee's right to possession without terminating
this Lease, by giving written notice thereof to the Lessee, and may, without
further notice or demand, enter into or upon the Leased Premises and repossess
the same as of their former estate and expel the Lessee and those claiming under
it and remove its effects (forcibly, if necessary) without prejudice to any
remedies which might otherwise be available for arrears of rent or preceding
breach of covenant; and any such termination, repossession, removal or
expulsion, whether by direct act of the Lessor or through the medium of legal
proceedings for that purpose instituted, shall not affect the liability of the
Lessee or its successors and assigns for Basic Rent, additional rent or other
sums past due or to become due in the future under the terms of this Lease, but
the same shall continue and remain liabilities and obligations of the Lessee as
if such termination, repossession, expulsion and removal had not taken place.

          (b)   In the event of any such termination, entry, repossession,
expulsion or removal, the Lessee, so far as permitted by applicable law, waives
(i) any notice of repossession or of the institution of legal proceedings to
that end, (ii) any right of redemption or repossession, (iii) any right to a
trial by jury in any proceeding or any matter in any way connected with this
Lease, and (iv) the benefits of any laws exempting property from liability for
rent or for debt.

                                       33
<PAGE>

          (c)   All reasonable costs and expenses (including attorneys' fees and
expenses) of the Lessor incurred as a result of any such default or Event of
Default shall constitute additional rent hereunder.

     19.  Further Rights of Default
          -------------------------

          (a)   At any time or from time to time after any such termination,
repossession, expulsion or removal, the Lessor may (but shall be under no
obligation to) relet the Leased Premises or any part thereof for the account of
the Lessee, without notice to the Lessee, for such term and on such conditions
and for such uses as the Lessor, in its uncontrolled discretion may determine,
and may collect and receive the rents therefor and apply the same to the amounts
due or to become due hereunder, but (except to the extent of such application of
rents) no such reletting shall relieve the Lessee of any of its liabilities or
obligations hereunder.

          (b)   In the event of any such termination, entry, repossession,
expulsion or removal, the Lessee will pay to the Lessor Basic Rent and all
additional rent and other sums required to be paid by the Lessee up to the time
of such termination, entry, repossession, expulsion or removal, and thereafter,
the Lessee, until the end of what would have been the term of this Lease in the
absence of such termination, entry, repossession, expulsion or removal and
whether or not the Leased Premises or any part thereof shall have been relet,
shall be liable to the Lessor for, and shall pay to the Lessor, as liquidated
and agreed current damages for the Lessee's default (a) the Basic Rent and all
additional rent and other sums which would be payable under this Lease by the
Lessee in the absence of such termination, entry, repossession, expulsion or
removal less (b) the net proceeds, if any, of any reletting effected for the
account of the Lessee pursuant to this section, after deduction from such
proceeds all Lessor's expenses in connection with such reletting including,
without limitation, all repossession costs, brokerage commissions,

                                       34
<PAGE>

legal expenses, attorneys' fees, employees' expenses, reasonable alteration
costs, and expenses of preparation for such reletting). The Lessee will pay such
current damages quarterly on the days on which the Basic Rent would have been
payable under this Lease in the absence of such termination, entry,
repossession, expulsion or removal, and the Lessor shall be entitled to recover
the same from the Lessee on each such day.

          (c)   At any time after any such termination, entry, repossession,
expulsion or removal whether or not the Lessor shall have collected any current
damages as aforesaid, the Lessor shall be entitled to recover from the Lessee on
demand, as and for liquidated and agreed final damages for the Lessee's default,
an amount in cash equal to the excess, if any, of (a) the Basic Rent, additional
rent and all other sums which would be payable to the Lessor under this Lease
from the date of such demand (or if it be earlier, the date to which the Lessee
shall have satisfied in full its obligations under the preceding paragraph to
pay current damages) for what would be the then unexpired term of this Lease in
the absence of such termination, entry, repossession, expulsion or removal, over
(b) the then fair net rental value of the Leased Premises for the same period.
If any applicable statute or rule of law shall validly limit the amount of such
liquidated final damages to less than the amount above agreed on, the Lessor
shall be entitled to the maximum amount allowable under such statute or rule of
law.

     20.  Lessor's Lien, No Merger, etc.
          ------------------------------

          (a)   The Lessee hereby grants the Lessor a first lien upon all of the
interest of the Lessee under this Lease and in and to the Leased Premises, which
lien may be foreclosed, and the Lessee hereby assigns to the Lessor all rents,
issues, profits and income arising from and under any subleases permitted hereby
(and, upon demand, will assign to the Lessor all such subleases) , to secure the
payment of the rents and other sums payable by the Lessee hereunder

                                       35
<PAGE>

and the performance of all other obligations of the Lessee hereunder, provided
that, unless and until a default or Event of Default occurs hereunder, the
Lessee may continue to collect, receive and enjoy all such rents, issues,
profits and income. The Lessor shall be entitled, as a matter of right, to have
a receiver appointed for the Leased Premises if a default or Event of Default
occurs hereunder.

          (b)   There shall be no merger of this Lease nor of the leasehold
estate created by this Lease with the fee estate in the Leased Premises or any
part thereof by reason of the fact that the same person, firm, corporation or
other entity may acquire or own or hold, directly or indirectly (by reason of
the foreclosure of the lien provided for in this section or otherwise), (a) this
Lease or the leasehold estate created by this Lease or any interest in this
Lease or in any such leasehold estate and (b) the fee estate in the Leased
Premises or any part thereof or any interest in such fee estate, and no such
merger shall occur unless and until all persons, corporations, firms and other
entities, including each assignee having any interest in (i) this Lease or the
leasehold estate created by this Lease or (ii) the fee estate in the Leased
Premises or any part thereof shall join in a written instrument affecting such
merger and shall duly record the same.

     21.  Remedies Cumulative
          -------------------

     Each right, power and remedy of the Lessor provided for in this Lease or
now or hereafter existing at law or in equity or by statute or otherwise shall
be cumulative and concurrent, and the exercise or beginning of the exercise by
the Lessor of any one or more of such rights, powers or remedies shall not
preclude the simultaneous or later exercise by the Lessor of any or all other
such rights, powers or remedies.

                                       36
<PAGE>

     22.  Quiet Enjoyment
          ---------------

     If the Lessee shall pay the Basic Rent, additional rent and other amounts
payable by the Lessee hereunder as and when the same become due and payable and
shall perform and comply with all of the other terms and conditions hereof, the
Lessor will not interfere with the peaceful and quiet occupation and enjoyment
of the Leased Premises by the Lessee, which occupation and enjoyment shall be
without hindrance, ejection or molestation by the Lessor, subject to the rights
of the Lessor under the section 6 hereof.  Any failure by the Lessor to comply
with the foregoing covenant shall not give the Lessee any right to cancel or
terminate this Lease or to abate, reduce or make deduction from or offset
against the rents or any other documents payable under this Lease or to fail to
perform or comply with any other term or condition hereof, but nothing herein
shall prevent the Lessee from obtaining injunctive relief against the Lessor.

     23.  General Provisions
          ------------------

          (a)   The Lessee will deliver to the Lessor, promptly upon request,
(a) a certificate of the President or a Vice President or the Treasurer of the
Lessee stating that no default exists hereunder, or, if any such default exists,
specifying the nature and period of existence thereof and what action the Lessee
is taking or proposes to take with respect thereto, (b) such a certificate
certifying that this Lease is unmodified and in full force and effect, or, if
there have been modifications, specifying the same and certifying that this
Lease, as modified, is in full force and effect, and (c) all such other
information with respect to the Leased Premises as may reasonably be requested.

          (b)   The Lessee further covenants and agrees to pay and discharge all
reasonable costs and expenses (including attorneys' fees and expenses) that
shall be paid or

                                       37
<PAGE>

incurred by the Lessor in enforcing the covenants and agreements of this Lease,
and the same shall constitute additional rent hereunder.

          (c)   Any notice that should or may be given hereunder shall be
properly given if sent by certified mail in a properly enclosed, sealed and
postpaid envelope, deposited in any regularly maintained United States Post
Office, addressed, if to the Lessor, c/o Wood, Struthers & Winthrop, 20 Exchange
Place, New York, New York 10005, or if to the Lessee, Honeywell, Inc.,
Electronic Data Processing Division, 60 Walnut Street, Wellesley Hills,
Massachusetts, Attention: Vice President and General Manager, or if to any
assignee of the Lessor, at such address as such assignee shall have furnished in
writing to the Lessee. The persons and places to which notices are to be mailed
may be changed from time to time by the Lessor or by the Lessee upon written
notice to the other or by any such assignee upon written notice to the Lessee.

          (d)   The failure of the Lessor to insist upon strict performance of
any of the terms, covenants or conditions herein contained shall not be deemed a
waiver of any of the rights or remedies of the Lessor and shall not be deemed a
waiver of any subsequent breach or default in any of such terms, covenants or
conditions.

          (e)   No surrender to the Lessor of this Lease or of the Leased
Premises or any part thereof or of any interest therein shall be valid or
effective unless agreed to and accepted in writing by the Lessor and any
assignee of the Lessor's interests hereunder.

     If any term of this Lease or any application thereof shall be invalid or
unenforceable, the remainder of this Lease and any other application of such
term shall not be affected thereby.

     This Lease may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of the
charge, waiver, discharge or termination is sought.  The headings in this Lease
are for purposes of reference only and shall not

                                       38
<PAGE>

limit or define the meaning hereof. This Lease may be executed in several
counterparts, each of which is an original, but all of which shall constitute
one instrument.

     The terms Lessor and Lessee when used herein shall be taken to mean either
the singular or the plural, as the case may be, and the provisions of this
instrument shall bind and inure to the benefit of the parties mutually and their
respective heirs, executors, administrators, legal representatives, successors
and assigns.

     IN WITNESS WHEREOF, the parties have caused this Lease to be executed and
their respective corporate seals to be hereunder affixed and attested by their
respective officers thereunto duly authorized.

                              SECOND BROMFIELD PROPERTIES, INC.
                                                   Lessor

                              By ___________________________________
                                                   PRESIDENT

[Corporate Seal]

Attest:

__________________________
Secretary

                              HONEYWELL INC.
                              Lessee

                              By ___________________________________
                                 R. W. Laxson, Treasurer

[Corporate Seal]

Attest:

__________________________
Asst. Secretary

                                       39
<PAGE>

                                  SCHEDULE A
                                   ----------

                              Property Description
                              --------------------

     A certain parcel of land with the buildings thereon situated in Newton,
Middlesex County, Commonwealth of Massachusetts, being shown as lot containing
486,128 square feet more or less on plan entitled "Plan of Land in Newton Mass",
dated August 4, 1967, by Edward F. Carney, Registered Surveyor, bounded and
described, as shown on said plan, as follows:

     SOUTHEASTERLY  by Needham Street, 843.87 feet;

     SOUTHWESTERLY  by land now or formerly of Dearfoot Farms Co., formerly
                    National Dairies Co., 701.55 feet;

     NORTHWESTERLY  by land of N.Y.N.H. & Hartford Railroad, 790.79 feet;

     NORTHERLY      by land now or formerly of New England Concrete Pipe Co.
                    176.05 feet; and

     NORTHEASTERLY  by land now or formerly of said New England Concrete Pipe
                    Co. 492.74 feet.

                                       40
<PAGE>

                                  SCHEDULE B

                              BASIC RENT PAYMENTS

     1.   The installment of Basic Rent payable during the Interim Term is
$14,533.32, payable on September 30, 1967.

     2.   Each installment of Basic Rent payable during the Primary Term is
$35,437.50, payable on September 30, 1967, and thereafter on the last day of
each September, December, March and June occurring during the Primary Term to
and including June 30, 1987.

     3.   Each installment of Basic Rent payable during the first Extended Term
is $10,937.50, payable on the last day of each September, December, March and
June occurring during such Extended Term.

     4.   Each installment of Basic Rent payable during the remaining seven
Extended Terms is $4,375.00, payable on the last day of each September,
December, March and June occurring during such Extended Terms.

                                       41
<PAGE>

                                  SCHEDULE C

     Upon the purchase of the Leased Premises pursuant to paragraph 11(b),
12(c), 13 or 16(b) of this Lease, the purchase price payable shall be an amount
equal to the sum of (i) $1,750,000 (herein called the Lessor's Cost) multiplied
by the applicable percentage set opposite the date of purchase below; (ii) if
such date of purchase is not a Basic Rent Payment Date, interest at the rate of
6% per annum on the amount determined as provided in clause (i) above for the
period beginning on the Basic Rent Payment Date immediately preceding such date
of purchase and ending on the including such date of purchase; (iii) if such
purchase is pursuant to such paragraph 13, a premium of $70,000; and (iv) if
such purchase is pursuant to such paragraph 16(b); a premium of $87,500.
<TABLE>
<CAPTION>
DATE OF PURCHASE                                                                         PERCENT
----------------                                                                         -------
<S>                                                                                      <C>
From August 10, 1967 to and including September 29, 1967                                  100.00
From September 30, 1967 to and including December 30, 1967                                 97.94
From December 31, 1967 to and including March 30, 1968                                     97.35
From March 31, 1967 to and including March 30, 1968                                        96.75
From June 30, 1968 to and including September 29, 1968                                     96.15
From September 30, 1968 to and including December 30, 1968                                 95.5__
From December 31, 1968 to and including March 30, 1969                                     94.9__
From March 31, 1969 to and including June 29, 1969                                         94.2__
From June 30, 1969 to and including September 29, 1969                                     93.___
From September 30, 1969 to and including December 30, 1969                                 92.9__
From December 31, 1969 to and including March 30, 1970                                     92.3__
From March 31, 1970 to and including June 29, 1970                                         91.___
From June 30, 1970 to and including September 29, 1970                                     90.___
From September 30, 1970 to and including December 30, 1970                                 90.2__
From December 31, 1970 to and including March 30, 1971                                     89.5__
From March 31, 1971 to and including June 29, 1971                                         88.___
From June 30, 1971 to and including September 29, 1971                                     88.___
From September 30, 1971 to and including December 30, 1971                                 87.3__
From December 31, 1971 to and including March 30, 1972                                     86.___
From March 31, 1972 to and including June 29, 1972                                         85.___
From June 30, 1972 to and including September 29, 1972                                     85.___
From September 30, 1972 to and including December 30, 1972                                 84.___
From December 31, 1972 to and including March 30, 1973                                     83.___
From March 31, 1973 to and including June 29, 1973                                         82.___
</TABLE>

                                       42
<PAGE>

<TABLE>
<CAPTION>
DATE OF PURCHASE                                                                         PERCENT
----------------                                                                         -------
<S>                                                                                      <C>
From June 30, 1973 to and including September 29, 1973                                     81.___
From September 30, 1973 to and including December 30, 1973                                 81.___
From December 31, 1973 to and including March 30, 1974                                     80.___
From March 31, 1974 to and including June 29, 1974                                         79.___
From June 30, 1974 to and including September 29, 1974                                     7_.___
From September 30, 1974 to and including December 30, 1974                                 77.___
From December 31, 1974 to and including March 30, 1975                                    76.76_
From March 31, 1975 to and including June 29, 1975                                        75.856
From June 30, 1975 to and including September 29, 1975                                    74.936
From September 30, 1975 to and including December 30, 1975                                74.002
From December 31, 197S to and including March 30, 1976                                    73.055
From March 31, 1976 to and including June 29, 1976                                        72.093
From June 30, 1976 to and including September 29, 1976                                    71.117
From September 30, 1976 to and including December 30, 1976                                70.126
From December 31, 1976 to and including March 30, 1977                                    69.121
From March 31, 1977 to and including June 29, 1977                                        68.100
From June 30, 1977 to and including September 29, 1977                                    67.064
From September 30, 1977 to and including December 30, 1977                                66.013
From December 31, 1977 to and including March 30, 1978                                    64.945
From March 31, 1978 to and including June 29, 1978                                        63.662
From June 30, 1978 to and including September 29, 1978                                    62.762
From September 30, 1978 to and including December 30, 1978                                61.646
From December 31, 1978 to and including March 30, 1979                                    60.514
From March 31, 1979 to and including June 29, 1979                                        59.364
From June 30, 1979 to and including September 29, 1979                                    58.197
From September 30, 1979 to and including December 30, 1979                                57.012
From December 31, 1979 to and including March 30, 1980                                    55.810
From March 31, 1980 to and including June 29, 1980                                        54.590
From June 30, 1900 to and including September 29, 1980                                    53.351
From September 30, 1980 to and including December 30, 1980                                52.094
From December 31, 1980 to and including March 30, 1981                                    50.818
From March 31, 1981 to and including June 29, 1981                                        49.522
From June 30, 1981 to and including September 29, 1981                                    48.208
From September 30, 1981 to and including December 30, 1981.                               46.873
From December 31, 1981 to and including March 30, 1982                                    45.519
From March 31, 1982 to and including June 29, 1982                                        44.144
From June 30, 1982 to and including September 29, 1982                                    42.749
From September 30, 1982 to and including December 30, IM                                  41.333
From December 31, 1982 to and including March 30, 1983                                    39.895
From March 31, 1983 to and including June 29, 1983                                        38.436
From June 30, 1983 to and including September 29, 1983                                    36.955
From September 30, 1983 to and including December 30, 1983                                35.452
From December 31, 1983 to and including March 30, 1984                                    33.926
From March 31, 1984 to and including June 29, 1984                                        32.377
</TABLE>

                                       43
<PAGE>

<TABLE>
<CAPTION>
DATE OF PURCHASE                                                                         PERCENT
----------------                                                                         -------
<S>                                                                                      <C>
From June 30, 1984 to and including September 29, 1984                                    30.806
From September 30, 1984 to and including December 30, 1984                                29.210
From December 31, 1964 to and including March 30, 1985                                    27.591
From March 31, 1985 to and including June 29, 1985                                        25.947
From June 30, 1985 to and including September 29, 1985                                    24.279
From September 30, 1985 to and including December 30, 1985                                22.566
From December 31, 1985 to and including March 30, 1986                                    20.867
From March 31, 1986 to and including June 29, 1986                                        19.122
From June 30, 1986 to and including September 29, 1986                                    17.352
From September 30, 1986 to and including December 30, 1966                                15.555
From December 31, 1966 to and including March 30, 1987                                    13.730
From March 31, 1987 to and including June 29, 1987                                        11.879
From June 30, 1987 to and including September 30, 1987                                    10.000
</TABLE>

                                       44
<PAGE>

State of New York   )
                    )  ss.:
County of New York  )

     On this 4th of August, 1967, before me, William M. Booth, a Notary Public
in and for the said County and State, personally in said County and State,
appeared Charles F. MacGill and James P. Cookson to me personally known and
known to me to be the President and Secretary, respectively, of Second Bromfield
Properties, Inc., one of the corporations named in and executing the foregoing
instrument, which instrument includes Schedules A, B and C attached thereto and
made a part thereof, and which instrument was produced to me in said County and
State aforesaid by the said President and Secretary, who are known to me to be
the identical persons who subscribed the name of the maker thereof to the
foregoing instrument as its President and Secretary, respectively, who by me
being duly sworn, did severally depose, say and acknowledge, on their several
oaths, in said County and State aforesaid, that they reside at Lane Gate Road,
Cold Spring, N.Y.  10516 and 76 Oxford Blvd., Garden City, N.Y., respectively,
that they are the President and Secretary, respectively, of said corporation and
that said corporation executed said instrument; that they know the seal of said
corporation; that the seal affixed to said instrument is the corporate seal of
said corporation; that they, being informed of the contents of said instrument,
signed and scaled said instrument and that they executed the same in the name
and on behalf of said corporation by order, authority and resolution of its
Board of Directors and that they signed their names thereto by like order; that
they executed the same as, and said instrument is their free and voluntary act
and deed and the free and voluntary act and deed of said corporation for the
consideration, uses and purposes therein set forth and expressed.

                                       45
<PAGE>

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal in the County and State aforesaid on the day and year above written.

                              /s/ William M.Booth
                              -------------------
                                  Notary Public

my place of residence is:

My commission expires:

Notarial Seal]

State of Minnesota  )
                    )  ss.:
County of Hennepin  )

     On this 4th of August, 1967, before me, Audrey B. Hagberg, a Notary Public
in and for the said County and State, duly commissioned and sworn, personally in
said County and State appeared R.W. Laxson and Mary F. Riley, to me personally
known and known to be Treasurer and Assistant Secretary, respectively, of
Honeywell, Inc., one of the corporations named in and executing the foregoing
instrument, which instrument includes Schedules A, B and C attached thereto and
made a part thereof, and which instrument was produced to me in said County and
State aforesaid by said R.W> Laxson and Mary F. Riley, who are known to me to be
the identical persons who subscribed the name of the maker thereof to the
foregoing instrument as its Treasurer and Assistant Secretary, respectively, who
by me being duly sworn, did severally depose, say and acknowledge, on their
several oaths in said County and State aforesaid, that they reside at
Minneapolis, Minnesota that they are the Treasurer and Assistant Secretary,
respectively, of said corporation and that said corporation executed said
instrument; that they know the seal of said corporation; that the seal affixed
to said instrument is the corporate seal of

                                       46
<PAGE>

said corporation; that they, being informed of the contents of said instrument,
signed and sealed said instrument and that they executed the same in the name
and on behalf of said corporation by order, authority and resolution of its
Board of Directors and that they signed their names thereto by like order; that
they executed the same as, and said instrument is, their free and voluntary act
and deed and the free and voluntary act and deed of said corporation for the
consideration, uses and purposes therein set forth and expressed.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal in the County and State aforesaid on the day and year first above written.

                                   /s/ Audrey B. Hagberg
                                   --------------------
                                       Notary Public

my place of residence is:

My commission expires:

Notarial Seal]

                                       47
<PAGE>

                                   Honeywell

                    NOTICE OF EXERCISE OF OPTION TO EXTEND
                    --------------------------------------

CERTIFIED MAIL
--------------
RETURN RECEIPT REQUESTED
------------------------

March 13, 1987

Wellford Associates
c/o Shawnee Equities, Inc.
110 E. 59th Street
83rd Floor
New York, NY  10022

Re:  141-165 Needham Street
     Newton Highlands, MA
                       --

Gentlemen:

Reference is made to a certain Lease dated as of July 25, 1967 between Wellford
Associates c/o Shawnee Equities, Inc., successor to Second Bromfield Properties,
Inc. and Honeywell Information Systems, Inc., (Honeywell) successor to
Honeywell, Inc. for the office buildings and engineering facility located at
141-165 Needham Street, Newton, Massachusetts.

In accordance with the terms of the Lease on pages 1 and 2 thereof and the Basic
Rent as defined in schedule B of the Lease, this is written notice that
Honeywell as Lessee hereby exercises its right to extend this Lease for the
first of eight consecutive extended terms for a period of five years, commencing
on October 1, 1987 through September 30, 1992.

                                       48
<PAGE>

Please confirm your receipt of this letter by signing the copy of same and
returning it to the undersigned in the envelope provided.

Sincerely,

Honeywell Information Systems, Inc.

By: /s/ Philip A. Perry                    Acknowledge Receipt
    -------------------                    Wellford Associates
    Its Manager of Real Estate             c/o Shawnee Equities, Inc.

cc:  Mr. James R. McMahon, Officer
     Corporate Trust Division
     Mellon Bank N.A.                      By:
     One Mellon Bank Center                   -------------------------
     Pittsburgh, PA  15258-0001
                                           Title:
                                                 ----------------------

                                       49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]