Document:

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                                                          Exhibit 10.7
                                                Chicago Mercantile Exchange Inc.
                                              Registration Statement on Form S-4

                   SEPARATION AGREEMENT AND GENERAL RELEASE
                   ----------------------------------------

     THIS SEPARATION AGREEMENT and GENERAL RELEASE (hereinafter "Agreement") is
made and entered into by and between T. ERIC KILCOLLIN (hereinafter "Kilcollin")
and THE CHICAGO MERCANTILE EXCHANGE (hereinafter "CME"), an Illinois not-for-
profit corporation.

     WHEREAS, the parties, have engaged in discussions resulting in an amicable
and mutually satisfactory agreement concerning Kilcollin's resignation from his
employment and directorship with the CME, and all matters arising out of or
relating thereto;

     NOW, THEREFORE, in consideration of the mutual covenants and promises set
forth below, the parties hereby agree as follows:

     1.   The Employment Agreement. Kilcollin and the CME are parties to an
"Agreement" dated March 21, 1997, with a term extending through March 31, 2000
(hereinafter "Employment Agreement"). Except for the obligations set forth in
Paragraphs 8f, 9, 10, 11, 12, 14 and 15 thereof, which shall continue, or except
as otherwise expressly provided in this Agreement, the terms and provisions of
this Agreement shall supersede the terms and provisions of the Employment
Agreement, which is terminated effective March 19, 1999 and shall thereafter be
null and void and without further effect. In the event of any conflict or
inconsistency between this Agreement and the Employment Agreement, the terms of
this Agreement shall take precedence.

     2.   Kilcollin's Resignation. On January 19, 1999, Kilcollin shall resign
his employment and directorship with the CME, said resignation to be effective
on Friday, March 19, 1999 (hereinafter "Resignation Date"). During his
employment through March 19, 1999, Kilcollin shall
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continue to receive all compensation, as well as insurance, vacation, fringe,
pension and retirement benefits due to him under and pursuant to the terms of
the Employment Agreement, and shall continue to perform his duties and
obligations to the CME as set forth in the Employment Agreement; provided,
however, that Kilcollin shall be allowed reasonable time to pursue other
employment opportunities. A mutually agreed-upon announcement/press release of
Kilcollin's resignation to be issued by the CME on or about January 19, 1999, is
set forth in Exhibit A, attached hereto and incorporated herein.

     3.   The Obligations of CME. Upon the Resignation Date, and in
consideration of the promises of Kilcollin contained in this Agreement, the CME
shall be obligated to Kilcollin as set forth herein. Except as expressly set
forth in this Agreement, CME shall have no obligation to Kilcollin of any kind
or nature whatsoever.

          a.  Annual Base Salary. On or before March 19, 1999, the CME shall
     pay to Kilcollin in a single lump sum, the gross amount of five hundred
     ninety-one thousand, nine hundred eighty-two dollars and ninety-six cents
     (591,982.96), less applicable deductions and withholdings for state and
     federal taxes, which amount is equal to (and in lieu of) Kilcollin's Annual
     Base Salary of five hundred seventy-two thousand dollars ($572,000) and
     vacation benefits that would have been paid had Kilcollin's employment
     continued through March 31, 2000.

          b.  Health, Dental & Vision Insurance. Through March 31, 2000,
     Kilcollin and any covered dependents will continue to be covered by the
     CME's health, dental and vision insurance program in effect for active
     employees. Effective April 1, 2000, health, dental and vision insurance
     benefits will be provided to Kilcollin and any covered dependents pursuant

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     to the Consolidated Omnibus Budget Reconciliation Act ("COBRA"), as set
     forth in Section 4980B of the Internal Revenue Code of 1986, as amended,
     and in Sections 601 through 609 of the Employee Retirement Income Security
     Act. Kilcollin's contribution and the CME's contribution toward the cost of
     the foregoing coverages shall be determined and paid as though Kilcollin's
     employment with the CME continued through March 31, 2000. The foregoing
     insurance coverages will earlier terminate upon Kilcollin obtaining other
     employment which offers health insurance coverage and when he first becomes
     eligible for such coverage. Kilcollin agrees that he will promptly notify
     the CME upon obtaining such coverage from another employer. Kilcollin shall
     have no duty to seek or obtain other employment.

          c. Life, and Accidental Death & Dismemberment Insurance. Through March
     31, 2000, the CME shall, at its discretion, either reimburse Kilcollin for
     the cost of converting the above-referenced life and accidental death and
     dismemberment insurance programs in effect on the Resignation Date to
     individual coverage, or obtaining equivalent coverage individually, or,
     where applicable, continuing individual coverage already in place. To the
     extent the payments or reimbursements hereunder, or under Paragraph b next
     above, constitute taxable income to Kilcollin, the CME shall gross-up the
     payment to Kilcollin to compensate for same in accordance with the formula
     contained in Paragraph 6(e)(B) of the Employment Agreement. It is
     understood and agreed that Kilcollin's coverage under the CME's disability
     insurance plan will cease as of March 19, 1999 and that the CME has no
     obligation to provide or pay for other disability coverage. The CME will
     cooperate with

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     Kilcollin (e.g. providing documentation) in his efforts to obtain at his
     expense individual disability coverage.

          d.   Business Expenses. On or before March 19, 1999, the CME shall pay
     to Kilcollin, in a single lump sum, the sum of twelve thousand three
     hundred seventy five dollars ($12,375.00), which represents all
     reimbursements which Kilcollin has or may claim with respect to the dues
     and other costs of club memberships through March 31, 2000. There shall be
     no reimbursement of Kilcollin for any other business and transportation
     expenses incurred by him after March 19, 1999. It is further understood and
     agreed that Kilcollin shall not be entitled to a car allowance, which he
     has not used, under this Agreement or the Employment Agreement.

          e.   Professional Services. On or before March 19, 1999, the CME
     shall, in a single lump sum, reimburse Kilcollin for a total of fifteen
     thousand six hundred eight dollars ($15,608) for the Professional Services
     described in Paragraph 3(d) of the Employment Agreement for the period from
     January 1, 1999 through March 31, 2000.

          f.   Enhanced Pension Benefits. On or before March 19, 1999, the CME
     shall, in a single lump sum, pay to Kilcollin, in lieu of the Enhanced
     Pension Benefit as set forth in Paragraph 6(e) of the Employment Agreement
     through March 31, 2000, an amount, after gross-up computed in accordance
     with the formula contained in Paragraph 6(e)(B) of the Employment
     Agreement, of one hundred twenty seven thousand five hundred seventy two
     dollars ($127,572). Said payments shall be in full satisfaction of the
     CME's obligations under Paragraph 6(e) of the Employment Agreement.

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          g.   Retirement and Deferred Compensation Benefit Plans. It is
     understood and agreed that Kilcollin's continuous service under all CME
     retirement and deferred compensation benefit plans shall cease as of his
     Resignation Date. Kilcollin's interest under said plans shall be treated as
     if fully vested as of the Resignation Date. In all other respects,
     Kilcollin's rights and the obligations of the CME pursuant to said plans
     shall be as determined by the terms of each such plan and applicable law,
     and as set forth below:

               (i)   On or before March 19, 1999, amounts payable to Kilcollin
     with respect to the Chicago Mercantile Exchange Senior Management
     Supplemental Deferred Savings Plan (the "Supplemental Deferred Savings
     Plan") and the Chicago Mercantile Exchange Supplemental Executive
     Retirement Plan shall be distributed to Kilcollin in the single lump sum
     elected by him in accordance with the terms of said plans.

               (ii)  On or before March 19, 1999, the CME shall pay to Kilcollin
     in a single lump sum, the sum of ninety-six thousand, one hundred ninety-
     eight dollars and nineteen cents ($96,198.19), which represents the present
     value, after gross-up computed in accordance with the formula contained in
     Paragraph 6(e)(B) of the Employment Agreement, of the benefits Kilcollin
     would have received from the CME for the period from March 19, 1999 through
     March 31, 2000 pursuant to the Pension Plan for Employees of the Chicago
     Mercantile Exchange, the Chicago Mercantile Exchange Tax Efficient Savings
     Plan ("TESP") and the Supplemental Deferred Savings Plan had he remained
     employed through March 31, 2000.

          (h)  Outplacement.  At Kilcollin's election, the CME shall, at its
     cost, provide Kilcollin with outplacement counseling services. The CME
     shall select the outplacement

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     counseling firm and the services to be provided; provided, however, that
     the outplacement counseling firm shall be located in the downtown Chicago
     area and the services provided shall consist, at minimum, of office space,
     telephone and support services, and counseling provided to Kilcollin for up
     to twenty four (24) months after the Resignation Date.

          (i) Bonus. On or before March 19, 1999, the CME shall pay to
     Kilcollin, in a single lump sum, a bonus in the gross amount, less
     applicable deductions and withholdings for state and federal taxes, of
     either two hundred thousand dollars ($200,000.00), in the event Kilcollin
     declines outplacement counseling, or one hundred seventy two thousand
     dollars ($172,000.00), in the event Kilcollin elects to receive
     outplacement counseling.

     4. In the event of Kilcollin's death prior to receipt of all payments to be
made to him hereunder, any such remaining payments shall be made to his
beneficiary pursuant to Paragraph 8(f) of the Employment Agreement.

     5.  Mutual General Releases. Except for a claim based upon an alleged
breach of this Agreement or an alleged breach of the provisions of the
Employment Agreement that are expressly continued pursuant to this Agreement,
Kilcollin, for himself and for his estate, heirs, personal representatives,
executors, administrators and assigns, hereby releases and forever discharges
the CME, any parent, subsidiaries and related and affiliated entities, and
each of its and their officers, directors, representatives, agents, employees,
related and participating members, insurers, as well as each of its and their
respective estates, heirs, personal representatives, executors, administrators,
successors and assigns (hereinafter collectively and individually the "CME
Releasees"), and the CME Releasees hereby release and forever discharge
Kilcollin, his estate, heirs, personal representatives, executors,
administrators and assigns, from any and all rights, claims, demands,

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debts, dues, sums of money, accounts, attorneys' fees, complaints, judgments,
executions, actions and causes of action of any nature whatsoever, cognizable at
law or equity, past, present or future, which either party now has or claims, or
might hereafter have or claim, against the other party, based upon or arising
out of any matter or thing whatsoever from the date of Kilcollin's initial
employment with the CME through the date of this release, including, without
limitation, any claim, action or cause of action which was or is related to or
arises out to Kilcollin's employment or directorship with the CME, or his
separation and/or resignation therefrom, or which is based upon or arises under
the Employment Agreement, or any local, state, or federal law dealing with
employment discrimination, including without limitation Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act and the Age
Discrimination in Employment Act.

     The following provisions are applicable to and made a part of this
Agreement and the foregoing general release and waiver:

          (i)   Kilcollin does not release and waive any right or claim which he
                may have under the Age Discrimination in Employment Act which
                arises after the date of execution of this Agreement.

          (ii)  In exchange for this general release and waiver, Kilcollin
                hereby acknowledges that he has received separate consideration
                beyond that which he is otherwise entitled to under the CME
                policy, the Employment Agreement, or applicable law.

          (iii) CME hereby expressly advises Kilcollin to consult with an
                attorney of his choosing prior to executing this Agreement which
                contains a general release and waiver.

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          (iv)  Kilcollin has twenty-one (21) days from the date of presentment
                to consider whether or not to execute this Agreement. In the
                event of such execution, Kilcollin's has a further period of
                seven (7) days from such date in which to revoke said execution,
                notice of which must be received by the CME within such seven
                (7) day period.

     6. Non-Disparagement. From and after the date of presentment of this
Agreement, both parties represent that they have not and will not, nor will they
cause or assist another person to, disparage or make critical, negative,
derogatory or defamatory statements about the other to any third party, or make
any other statement to a third party which is intended to or would reasonably
have the effect of harming the other party to this Agreement. It is understood
that Kilcollin's commitment hereunder extends to the CME Releasees. The CME's
commitment hereunder extends to its directors, officers, employees and agents.
The CME agrees that any reference it provides for Kilcollin to prospective
employers of Kilcollin shall be in substantial conformity with Exhibit B,
attached hereto and incorporated herein.

     7. The Obligations of Kilcollin. In consideration of the promises of the
CME contained in this Agreement, and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, Kilcollin, in addition
to the mutual promises contained in Paragraphs 5 and 6 herein, hereby agrees to
abide by the obligations contained in Paragraphs 9, 14 and 15 of the Employment
Agreement.

     8. Effective Date. The Effective Date of this Agreement shall be the eighth
day after Kilcollin's execution of this Agreement without receipt by the CME of
a signed statement from Kilcollin revoking such execution. All obligations of
the parties contained in this Agreement shall,

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in addition to any other express requirement, be conditioned upon and shall not
be effective until the Effective Date of this Agreement as defined in this
Paragraph.

     9. Arbitration. Any controversy or claim arising out of or relating to this
Agreement shall be resolved in accordance with the arbitration procedure
contained in Paragraph 13 of the Employment Agreement.

     10. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the heirs, assigns, administrators, executors, and legal
representatives of Kilcollin and shall be binding upon and inure to the benefit
of the CME Releasees. Both parties represent that they have all necessary legal
authority to execute this Agreement.

     11. Entire Agreement. This instrument constitutes the entire Agreement
between the parties. It may not be amended or modified except by a subsequent
written instrument signed by all parties hereto.

     12. Severability. If any provision, section, subsection or other portion of
this Agreement shall be determined by any court of competent jurisdiction to be
invalid, illegal or unenforceable in whole or in part, and such determination
shall become final, such provision or portion shall be deemed to be severed or
limited, but only to the extent required to render the remaining provisions and
portions of this Agreement enforceable. This Agreement as thus amended shall be
enforced so as to give effect to the intention of the parties insofar as that is
possible. In addition, the parties hereby expressly empower a court of competent
jurisdiction to modify any term or provision of this Agreement to the extent
necessary to comply with existing law and to enforce this Agreement as modified.

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     13.  Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Illinois.

     14.  Counterparts. This Agreement may be signed in multiple counterparts,
each of which shall be deemed to be an original for all purposes.

     15. Acknowledgment. Kilcollin acknowledges that he has carefully read and
fully understands the terms and provisions of this Separation Agreement and
General Release, has been represented in this matter by counsel of his own
choosing, and that his execution of this Separation Agreement and General
Release is voluntary. The parties agree that the language used in this
Agreement is the language chosen by the parties to express their mutual intent,
and that no rule of strict construction is to be applied to or against any party
hereto.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the
date(s) set forth below.

                                    THE CHICAGO MERCANTILE
                                    EXCHANGE

                                    By: /s/ Gerald D. Beyer
                                        -----------------------------------
                                    Title: EVP/COO
                                          ---------------------------------
                                    Date:   12-30-98
                                         ----------------------------------

                                    /s/ T. Eric Kilcollin
                                    ---------------------------------------
                                    T. Eric Kilcollin

                                    Date: 12/31/98
                                         ----------------------------------

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                                                          Exhibit 10.9
                                                Chicago Mercantile Exchange Inc.
                                              Registration Statement on Form S-4

                             EMPLOYMENT AGREEMENT
                             --------------------

     This Employment Agreement ("Agreement") is entered into by and between the
CHICAGO MERCANTILE EXCHANGE ("CME") and FREDERICK ARDITTI ("Arditti") this
27th day of October, 1998.

     WHEREAS, the parties desire to enter into this Agreement pertaining to the
employment of Arditti by the CME;

     NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth below, the parties hereby agree as follows:

     1.   Employment. Subject to the terms of this Agreement, the CME hereby
agrees to employ Arditti during the Agreement Term as Senior Executive Vice
President-Planning and Development, and Arditti hereby accepts such employment.
Arditti shall report directly to the President of the CME. As Senior Executive
Vice President-Planning and Development, Arditti shall be responsible for new
business development and have overall responsibility for the following
departments and/or operations of the CME: Clearing; Marketing; Research and
Strategic Planning; and such other duties as may be assigned to him by the
President or Board of Directors of the CME. These duties may be changed from
time-to-time as determined by the President or Board of Directors of the CME,
provided that any such duties shall be consistent with the position of Executive
Vice President. During his employment, Arditti agrees to devote his full time,
energies and talents to serving as Senior Executive Vice President-Planning and
Development of the CME, and to perform his duties faithfully, efficiently and in
good faith, subject to the direction of the President and Board of Directors of
the CME.
<PAGE>

     2.   Agreement Term. The Agreement Term shall be from July 1, 1998 through
June 30, 2001. Unless renewed by the mutual written agreement of the parties,
this Agreement will automatically terminate upon the expiration of the Agreement
Term. The CME will give Arditti written notice of its intention to renew or not
renew or to renegotiate the terms of the Agreement at least sixty (60) days
prior to expiration. In the absence of renewal, upon expiration of this
Agreement, Arditti shall be an employee of the CME working without a contract.

     3.   Compensation. During the Agreement Term and while employed by the CME,
the CME shall compensate Arditti as follows:

          a. Base Salary. Arditti shall be paid an annual base salary of Five
Hundred Thousand Dollars ($500,000.00), payable in equal bi-weekly installments.
Annual increases, if any, shall be as determined by the CME in accordance with
its policies and practices with respect to executive compensation.

          b. Benefits. Subject to their terms, Arditti and any of his eligible
dependents shall be entitled to participate in all fringe benefits and benefit
plans of the CME under the same terms and conditions as are generally
applicable to the employees and officers of the CME as those fringe benefits
and benefit plans currently exist and/or as they may be amended from time to
time during the Agreement Term. Such benefit plans shall specifically include,
without limitation, the Chicago Mercantile Exchange Senior Management Supplement
Deferred Savings Plan and the Chicago Mercantile Exchange Supplemental Executive
Retirement Plan.

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     c.   Bonus. Subject to its terms, Arditti shall participate in the CME's
discretionary bonus program.

     4.   Termination. Arditti's employment with the CME during the Agreement
Term may be terminated only under the following circumstances:

          a. Death. Arditti's employment hereunder will terminate upon his
death.

          b. Disability. If Arditti is disabled, and receiving benefits under
the CME's long term disability insurance program, the obligations under this
Agreement shall be suspended for the duration of such disability. In the event
Arditti returns to the position set forth herein during the term of this
Agreement, the provisions of this Agreement shall be reinstated. In the event
Arditti returns to work in a different position, or does not return to work at
all upon conclusion of his disability, this Agreement shall be deemed
terminated.

          c. Cause. Arditti's employment hereunder may be immediately terminated
by the CME for cause. For purposes of this Agreement, "cause" shall be defined
as misconduct, incompetence, failure to perform and/or neglect of duties which
is gross or willful, and shall include actions by Arditti which occur outside of
the CME which would have a substantial likelihood of bringing significant
discredit upon the CME.

          d. Termination by Arditti. This Agreement may be terminated by Arditti
at any time and for any reason by the giving of at least sixty (60) days advance
written notice of same to the CME.

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     5.   Payments Upon Termination or Expiration.

          a. In the event of termination of Arditti pursuant to Paragraphs 4a or
4b of this Agreement, the CME shall for a period of six (6) months following
such termination continue Arditti's base salary (or pay same to his estate).

          b. In the event of termination of Arditti by the CME pursuant to
Paragraph 4(c) of this Agreement, or upon expiration of the Agreement Term, the
CME shall continue Arditti's base salary, less applicable deductions for state
and federal taxes, and health insurance for a period of three (3) months, and
shall pay to Arditti any vacation pay which is accrued but unused as of the date
of his termination.

          c. In the event of termination by Arditti pursuant to Paragraph 4.d of
this Agreement, and provided that such termination does not take place prior to
April 1, 2000, the CME shall continue Arditti's base salary for a period one (1)
year following such termination. In the event Arditti terminates this Agreement
pursuant to Paragraph 4d herein with less than the sixty (60) days advance
written notice of same, the parties acknowledge that the CME will be damaged
thereby, but that such damages will be difficult to calculate. Accordingly,
Arditti will promptly pay to the CME, or allow set off against any monies it may
then owe to Arditti, as liquidated damages a sum equal to his base salary,
computed daily, for each day his notice of termination under Paragraph 4(d) is
less than sixty (60) days.

     6.   DePaul University. During his employment by the CME, Arditti has been
and is on a leave of absence from his position as a tenured member of the
faculty at DePaul University in Chicago, Illinois. In order to maintain his
tenure, Arditti must declare by March, 1999, whether he intends to return to the
faculty of DePaul University. The CME

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agrees to assist Arditti to have the date of such declaration extended from
March, 1999 to March, 2000, with the manner and means of such assistance to be
determined solely by the CME.

     7.   Confidentiality. Arditti acknowledges that in his employment he is or
will be making use of, acquiring or adding to the CME's Confidential Information
which includes (but is not limited to) memoranda and other materials or records
of a proprietary nature; technical data, records and policy matters relating to
new business development, research, strategy, finance, accounting, marketing,
personnel, clearing, management, and operations. Therefore, in order to protect
such Confidential Information and to protect other employees who depend on the
CME for regular employment, Arditti agrees that he will not during or after the
term of his employment in any way utilize any of said Confidential Information,
except in connection with his employment by the CME, and he will not copy,
reproduce, or take with him the original or any copies of said Confidential
Information and he will not disclose any of said Confidential Information to
anyone. Further, Arditti agrees to advise any new employer of the terms of this
Agreement regarding Confidential Information. These restrictions regarding
Confidential Information shall be in addition to those which exist at common law
or by statute.

     8.   Arbitration; Equitable Remedies.

     Any controversy or claim arising out of or relating to this Agreement or
the validity, interpretation, enforceability or breach thereof, which is not
settled by agreement of the parties, shall be settled by arbitration conducted
in the City of Chicago, in accordance with the Rules of the American Arbitration
Association, and judgment upon the award rendered in

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such arbitration may be entered in any court having jurisdiction. The
arbitration shall he conducted before a single arbitrator selected by the
parties. In the event the parties cannot agree on an arbitrator, then the
Association will supply both parties with a list of seven names. The parties
will alternatively strike one name until only one remains. First choice will be
determined by a coin toss, the winning party having the option of striking
first. All expenses of arbitration shall be borne equally by the parties, except
for attorneys' fees which shall be borne entirely by each party. The arbitrator
shall have no power to amend, alter, add to or delete from this Agreement.

     Arditti acknowledges that the CME would be irreparably injured by a
violation of Paragraph 7 and he agrees that the CME, in addition to any other
remedies available to it for such breach or threatened breach, shall be entitled
to a preliminary injunction, temporary restraining order, or other equivalent
relief, restraining Arditti from any actual or threatened breach of Paragraph 7
pending and in aid of arbitration of the dispute. If a bond is required to be
posted in order for the CME to secure an injunction or other equitable remedy,
the parties agree that such bond need not be more than a nominal sum.

     9.   Return of Property. Upon his last day of active work, Arditti hereby
agrees to immediately turn over to the CME any keys, credit cards, passes, and
all notes, memoranda, records, documents, computer disks, and all other
information, no matter how produced or reproduced, kept by Arditti or in his
possession or control, used in or pertaining to the business of the CME, it
being hereby acknowledged that all of said items are the sole and exclusive
property of the CME.

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     10.  Defense of Claims. During the period of his employment by the CME, and
for periods after the termination of his employment, Arditti shall reasonably
cooperate with the CME at its request in the defense or prosecution of any claim
that may be made by or against the CME. Such cooperation shall include, without
limitation, serving as a witness at trial or hearing, being deposed, and
preparation for same. For the period after Arditti terminates his employment
with the CME, the CME shall reimburse Arditti for all reasonable expenses in
connection therewith, including travel expenses, and shall compensate him at a
daily rate equal to the greater of his then current annual base salary or his
annual base salary on the date his employment with the CME terminates, divided
by 260, with days used for preparation, travel and other related matters being
included for purposes of determining the compensation due to Arditti. Less than
full days shall be paid for by the hour, determined by dividing the daily rate
by eight. To the extent reasonably practicable, the CME shall provide Arditti
with notice at least ten days prior to the date on which any such travel is
required.

     11.  Nonalienation. The interests of Arditti under this Agreement are not
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors of Arditti or
Arditti's beneficiaries.

     12.  Amendment. This Agreement may be amended or cancelled only by the
subsequent mutual written agreement of the parties.

     13.  Applicable Law. The provisions of this Agreement shall be construed in
accordance with the laws of the State of Illinois, without regard to the
conflict of law provisions of any state.

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     14.  Waiver of Breach. No waiver of any party hereto of a breach of any
provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party,
will operate or be construed as a waiver of any subsequent breach by such other
party or any similar or dissimilar provisions and conditions at the same or any
prior or subsequent time. The failure of any party hereto to take any action by
reason of such breach will not deprive such party of the right to take action at
any time while such breach continues.

     15.  Notices. Notices and all other communications provided for in this
Agreement shall be in writing and shall be delivered personally or sent by
registered or certified mail, return receipt requested, postage prepaid, or sent
by facsimile or prepaid overnight courier to the parties at, respectively, the
business address of the CME and the home address of Arditti (or to Arditti at
the business address of the CME if Arditti is employed there at the time of
such notice). Such notices and other communications shall be deemed given:

          a. in the case of delivery by overnight service with guaranteed next
day delivery, the next day or the day designated for delivery;

          b. in the case of certified or registered U.S. mail, five days after
deposit in the U.S. mail; or

          c. in the case of facsimile, the date upon which the transmitting
party received confirmation of receipt by facsimile, telephone or otherwise;
provided, however, that in no event shall any such communications be deemed to
be given later than the date they are actually received.

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     16.  Severability. If any provision, section, subsection or other portion
of this Agreement shall be determined by any court of competent jurisdiction to
be invalid, illegal or unenforceable in whole or in part, and such determination
shall become final, such provision or portion shall be deemed to be severed or
limited, but only to the extent required to render the remaining provisions and
portions of this Agreement enforceable. This Agreement as thus amended shall be
enforced so as to give effect to the intention of the parties insofar as that is
possible. In addition, the parties hereby expressly empower a court of competent
jurisdiction to modify any term or provision of this Agreement to the extent
necessary to comply with existing law and to enforce this Agreement as modified.

     17.  Survival of Agreement; Successors. Except as otherwise expressly
provided in this Agreement, the rights and obligations of the parties to this
Agreement shall survive the termination of Arditti's employment with the CME. In
the event of a merger, sale, reorganization or other change of control, this
Agreement shall be binding upon and inure to the benefit of any successor of the
CME.

     18.  Entire Agreement. This Agreement constitutes the entire agreement
between the parties concerning the subject matter hereof and supersedes all
prior and contemporaneous agreements, if any, between the parties relating to
the subject matter hereof.

     19.  Counterparts. This Agreement may be signed in multiple counterparts,
each of which shall be deemed to be an original for all purposes.

     20.  Acknowledgment by Arditti. Arditti represents that he is knowledgeable
and sophisticated as to business matters, including the subject matter of this
Agreement, that he has read this Agreement and that he understands its terms.
Arditti acknowledges that, prior to

                                      -9-
<PAGE>

assenting to the terms of this Agreement, he has been given a reasonable time to
review it, to consult with counsel of his choice, and to negotiate at arm's-
length with the CME as to the contents. Arditti and the CME agree that the
language used in this Agreement is the language chosen by the parties to express
their mutual intent, and that no rule of strict construction is to be applied
against any party hereto.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date(s)
set forth below.

                               CHICAGO MERCANTILE EXCHANGE

                               By  /s/ Gerald D. Beyer
                                  ---------------------------------
                               Title  Executive Vice President
                                     ------------------------------
                               Date  10-27-98
                                    -------------------------------

                               /s/ Frederick Arditti
                               ------------------------------------
                               Frederick Arditti

                               Date  10-27-98
                                    -------------------------------

                                      -10-
<PAGE>

                    FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
                    ---------------------------------------

     Reference is hereby made to the Employment Agreement entered into between
the CHICAGO MERCANTILE EXCHANGE ("CME") and FREDERICK ARDITTI ("Arditti") on
October 27, 1998 ("Agreement").

The Agreement is hereby amended as follows:

1.   4.d. Termination by Arditti.

     Paragraph 4.d. is hereby deleted and replaced in its entirety with the
following provision:

     This Agreement may be terminated by Arditti at any time and for any reason.

2.   Subparagraph c of Paragraph 5. Payments Upon Termination or Expiration.

Subparagraph c of Paragraph 5 is hereby deleted and replaced in its entirety
with the following provision.

     In the event of termination by Arditti pursuant to Paragraph 4.d of this
Agreement, and provided that such termination does not take place prior to
April 1, 2000, the CME shall continue Arditti's base salary for a period of one
(1) year following such termination. In addition, Arditti will receive at the
time of such termination, a lump sum payment, in cash, equal to his then-current
non-vested amounts in the following plans: Tax Efficient Savings Plan (401K
Plan); Pension Plan for Employees of the Chicago Mercantile Exchange; Senior
Management Supplemental Deferred Savings Plan; and Supplemental Executive
Retirement Plan.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
set forth below.

CHICAGO MERCANTILE EXCHANGE

By:   /s/ Scott Gordon
      ----------------------------
      Scott Gordon, Chairman
Date: January 7, 2000

      /s/ Fred D. Arditti
      ----------------------------
By:   Frederick Arditti
Date: January 7, 2000
<PAGE>

                   SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
                   ----------------------------------------

     Reference is hereby made to the Employment Agreement entered into between
the CHICAGO MERCANTILE EXCHANGE ("CME") and FREDERICK ARDITTI ("Arditti") on
October 27, 1998 ("Agreement").

     The Agreement is hereby amended as follows:

1.   Subparagraph c of Paragraph 5. - Payment Upon Termination or Expiration.

     Subparagraph c of Paragraph 5 is hereby deleted and replaced in its
     entirety with the following provision.

     In the event of termination by Arditti pursuant to Paragraph 4.d of this
     Agreement, and provided that such termination does not take place prior to
     April 1, 2000, the CME shall:

     (i)   continue Arditti's base salary for a period of one (1) year following
           such termination (the "Continuation Period");

     (ii)  pay Arditti, at the time of such termination, a lump sum payment, in
           cash, equal to his then-current non-vested amounts in the following
           plans: Tax Efficient Savings Plan (401K Plan); Pension for Employees
           of the Chicago Mercantile Exchange; Senior Management Supplemental
           Deferred Savings Plan; and Supplemental Executive Retirement Plan.

     (iii) during, the Continuation Period, provide Arditti and any covered
           dependents with continued coverage under the CME's health, dental and
           vision insurance program in effect for active employees; provided,
           however, that effective at the end of the Continuation Period,
           health, dental and vision insurance benefits will be provided to
           Arditti and any covered dependents pursuant to the Consolidated
           Omnibus Budget Reconciliation Act ("COBRA"), as set forth in Section
           4980B of the Internal Revenue Code of 1986, as amended, and in
           Sections 601 through 609 of the Employee Retirement Income Security
           Act. Arditti's contribution and the CME's contribution toward the
           cost of the foregoing coverages shall be determined and paid as
           though Arditti's employment with the CME continued through the end
           of the Continuation Period. The foregoing insurance coverages will
           earlier terminate upon Arditti obtaining other employment which
           offers comparable health insurance coverage and when he first becomes
           eligible for such coverage. Arditti agrees that he will promptly
           notify the CME upon obtaining such coverage from another employer.
           Arditti shall have no duty to seek or obtain other employment.

     (iv)  during the Continuation Period, and subject to CME's discretion,
           either reimburse Arditti for the cost of converting the above-
           referenced life and accidental death and dismemberment insurance
           programs in effect on the date of Arditti's termination to individual
           coverage, or obtaining
<PAGE>

          equivalent coverage individually, or, where applicable, continuing
          individual coverage already in place. It is understood and agreed that
          Arditti's coverage under the CME's disability insurance plan will
          cease on the date of Arditti's termination and that the CME has no
          obligation to provide or pay for other disability coverage. The CME
          will cooperate with Arditti, (e.g., providing documentation) in his
          efforts to obtain at his expense individual disability coverage.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
set forth below.

CHICAGO MERCANTILE EXCHANGE

By:   /s/ Scott Gordon
      ----------------------------
      Scott Gordon, Chairman
Date: February 3, 2000

      /s/ Fred D. Arditti
      ----------------------------
By:   Frederick Arditti
Date: February 3, 2000

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