Document:

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                                                                    EXHIBIT 10.9

THIS WARRANT AND THE SHARES OF COMMON SHARES PURCHASABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAWS AND CANNOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE
OF REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE
ACT, APPLICABLE STATE SECURITIES LAWS AND REGULATIONS PROMULGATED THEREUNDER.

Void After March 22, 2006

                                     WARRANT

                          TO PURCHASE COMMON SHARES OF

                                BANK RHODE ISLAND

                                  Warrant No. 1
                          No. of Common Shares: 136,315

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<TABLE>
<CAPTION>
                                                    TABLE OF CONTENTS
                                                                                                        PAGE
                                                                                                        ----

<S>      <C>                                                                                              <C>
1.       DEFINITIONS.................................................................................     1

2.       EXERCISE OF WARRANT.........................................................................     4
                  2.1    Manner of Exercise..........................................................     4
                  2.2    Common Shares Purchasable Upon Exercise of the Warrant......................     4
                  2.3    Payment of Taxes............................................................     4
                  2.4    No Fractional Shares........................................................     4
                  2.5    Continued Validity..........................................................     5
                  2.6    Conditional Exercise........................................................     5

3.       TRANSFER, DIVISION AND COMBINATION..........................................................     5
                  3.1    Transfer....................................................................     5
                  3.2    Division and Combination....................................................     5
                  3.3    Expenses....................................................................     5
                  3.4    Maintenance of Books........................................................     6

4.       ADJUSTMENTS.................................................................................     6
                  4.1    Stock Dividends, Subdivisions and Combination...............................     6
                  4.2    Certain Other Distributions.................................................     6
                  4.3    Issuance of Additional Common Shares........................................     7
                  4.4    Issuance of Warrants or Other Rights........................................     7
                  4.5    Issuance of Convertible Securities..........................................     8
                  4.6    Superseding Adjustment......................................................     8
                  4.7    Other Provisions Applicable to Adjustments under this Section...............     9
                         (a)  Computation of Consideration...........................................     9
                         (b)  When Adjustments to be Made............................................     10
                         (c)  Fractional Interests...................................................     10
                         (d)  When Adjustment Not Required...........................................     10
                         (e)  Escrow of Warrant Shares...............................................     10
                  4.8    Reorganization, Reclassification, Merger, Consolidation or
                         Disposition of Assets.......................................................     11
                  4.9    Other Action Affecting Common Shares........................................     11
                  4.10   Certain Limitations.........................................................     12

5.       NOTICES TO WARRANT HOLDERS..................................................................     12
                  5.1    Notice of Adjustments.......................................................     12
                  5.2    Notice of Certain Corporate Action..........................................     12

6.       NO IMPAIRMENT...............................................................................     12

7.       RESERVATION AND AUTHORIZATION OF COMMON SHARES;
         REGISTRATION WITH OR APPROVAL OF ANY GOVERNMENTAL
         AUTHORITY...................................................................................     12
</TABLE>

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<TABLE>

<S>      <C>                                                                                              <C>
8.       TAKING OF RECORD, SHARES AND WARRANT TRANSFER BOOKS.........................................     13

9.       RESTRICTIONS OF TRANSFERABILITY.............................................................     13
                  9.1    Restrictive Legend..........................................................     13
                  9.2    Proposed Transfers..........................................................     14
                  9.3    Registration................................................................     14

10.      SUPPLYING INFORMATION.......................................................................     14

11.      MANDATORY REDEMPTION OF WARRANT.............................................................     14

12.      LOSS OR MUTILATION..........................................................................     15

13.      OFFICE OF THE BANK..........................................................................     15

14.      LIMITATION OF LIABILITY.....................................................................     15

15.      EXPIRATION..................................................................................     15

16.      MISCELLANEOUS...............................................................................     15
                  16.1   Nonwaiver...................................................................     15
                  16.2   Notice Generally............................................................     16
                  16.3   Remedies....................................................................     17
                  16.4   Successors and Assigns......................................................     17
                  16.5   Amendment...................................................................     17
                  16.6   Severability................................................................     17
                  16.7   Headings....................................................................     17
                  16.8   Governing Law...............................................................     17
</TABLE>

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<PAGE>   4
                                                                    EXHIBIT 10.9

THIS WARRANT AND THE SHARES OF COMMON SHARES PURCHASABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAWS AND CANNOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE
OF REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM REGISTRATION UNDER THE
ACT, APPLICABLE STATE SECURITIES LAWS AND REGULATIONS PROMULGATED THEREUNDER.

No. of Common Shares:  136,315                             Warrant No. 1
                                                          March 22, 1996

                                     WARRANT

                          TO PURCHASE COMMON SHARES OF

                                BANK RHODE ISLAND

         THIS IS TO CERTIFY THAT FLEET FINANCIAL GROUP, INC. or registered
assigns, is entitled, at any time after the date hereof, to purchase from Bank
Rhode Island, a bank organized under the laws of the State of Rhode Island (the
"Bank"), One Hundred Thirty Six Thousand Three Hundred Fifteen (136,315) Common
Shares (as hereinafter defined and subject to adjustment as provided herein), at
a purchase price of ten dollars ($10.00) per share, all on the terms and
conditions and pursuant to the provisions hereinafter set forth.

1.       DEFINITIONS

         As used in this Warrant, the following terms have the respective
meanings set forth below:

         "Additional Common Shares" means all Common Shares of any class issued
by the Bank after the date hereof, other than Warrant Shares.

         "Affiliate" of a Person means a Person Controlled By, Controlling or
Under Common Control with such Person.

         "Business Day" means any day that is not a Saturday or Sunday or a day
on which banks are generally closed for business in the State of Rhode Island.

         A "Change of Control Event" shall have occurred if at any time the Bank
enters into a Definitive Agreement which would result, if completed, in a Change
of Control, in which the consideration is securities for which there is not a
publicly traded market.

         "Change of Control" shall mean the acquisition by merger, sale of
assets or otherwise by a Person or Group Acting in Concert of voting securities
of the Bank having more than 40% of the votes which may be cast generally in the
election of directors of the Bank, other than (i) in connection with the
formation of a holding company for or other reorganization of the Bank in which
the shareholders of the Bank immediately prior to the reorganization remain in
control (by retaining their shares or by holding

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shares in the successor entity) of the Bank (directly or through ownership of a
holding company) or the successor entity immediately after such reorganization
or (2) the conversion of preferred stock issued in connection with the initial
capitalization of the Bank into Common Stock, provided an event described above
shall not be deemed a Change of Control Event so long as continuing Directors
constitute at least 50% of the directors of the Bank or, if the Bank is not the
surviving corporation upon the consummation of such merger or acquisition, of
the surviving or acquiring corporation or its parent.

         "Commission" means the United States Securities and Exchange Commission
or any other agency then administering the Securities Act and other securities
laws.

         "Common Shares" means (except where the context otherwise indicates)
shares of the common stock, par value $1.00 per share, of the Bank as
constituted on the date hereof, and any shares into which such Common Shares may
thereafter be changed, and shall also include (i) shares of the Bank of any
other class (regardless of how denominated) issued to the holders of shares of
any class of Common Shares upon any reclassification thereof which is also not
preferred as to dividends or assets over any other class of shares of the Bank
and which is not subject to redemption and (ii) common shares of any successor
or acquiring corporation (as defined in Section 4.8) received by or distributed
to the holders of any class of Common Shares of the Bank in the circumstances
contemplated by Section 4.8.

         "Continuing Directors" means, as of any date of determination, any
members of the Board of Directors of the Bank who (i) was a member of such Board
of Directors on the Issuance Date or (ii) was nominated for election or elected
to such Board of Directors with the affirmative vote of a majority of the
Continuing Directors who were members of such Board of Directors at the time of
such nomination or election.

         "Controlled By" or "Controlling" or "Under Common Control" shall mean
possession, directly or indirectly, of power to direct or cause direction of
management or policies (whether through ownership of voting securities, by
contract or otherwise).

         "Convertible Securities" means evidences of indebtedness, shares or
other securities which are convertible into or exchangeable, with or without
payment of additional consideration in cash or property, for Additional Common
Shares, either immediately or upon the occurrence of a specified date or a
specified event.

         "Current Warrant Price" in respect of a Common Share, means $10.00, as
adjusted after the Issuance Date in accordance with the provisions of this
Warrant.

         "Group Acting in Concert" and "Person" shall have the meaning defined
in Section 13(d)(3) of the Exchange Act.

         "Exchange Act" means the Exchange Act of 1934, as amended.

         "GAAP" means generally accepted accounting principles, applied on a
consistent basis.

         "Holder means the Person in which name the Warrant is registered on the
books of the Bank maintained for such purpose.

                                       2
<PAGE>   6

         "Issuance Date" means the date of this Warrant.

         "Majority Holders" means the holders of Warrants exercisable for more
than 50% of the aggregate number of Common Shares purchasable upon exercise of
all Warrants, whether or not then exercisable.

         "Other Property" has the meaning set forth in Section 4.8.

         "Outstanding" means, when used with reference to Common Shares, at any
date as of which the number of shares thereof is to be determined, all issued
shares of Common Shares, except common Shares then owned or held by or for the
account of the Bank or any subsidiary thereof, and shall include all Common
Shares issuable in respect of outstanding scrip or any certificates representing
fractional interests in shares of Common Shares.

         "Permitted Issuances" means (i) Common Shares issued upon exercise of
this Warrant and (ii) Common Shares issued to employees and directors of the
Bank or its subsidiaries pursuant to any stock purchase, stock ownership, stock
bonus or stock option plans heretofore or hereafter duly adopted or assumed by
the Bank or any subsidiary thereof.

         "Person" means any individual, sole proprietorship, partnership, joint
venture, trust, incorporated organization, association, corporation,
institution, public benefit corporation, entity or government (whether federal,
state, county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

         "Purchase Agreement" means the Amended and Restated Purchase and
Assumption Agreement among the Bank and certain affiliates of Fleet, dated as of
March 22, 1996.

         "Restricted Common Shares" shall mean Common Shares which are, or which
upon their issuance on the exercise of this Warrant would be, evidenced by a
certificate bearing the restrictive legend set forth in Section 9.1.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations thereunder, all as the same shall be in effect at the
time.

         "Transfer" means any disposition of any Warrant or of any interest
thereof.

         "Warrants" means this Warrant and all Warrants issued upon transfer,
division or combination of, or in substitution for, any thereof. All Warrants
shall at all times be identical as to terms and conditions and date, except as
to the number of Common Shares for which they may be exercised.

         "Warrant Price" means an amount equal to (i) the number of Common
Shares being purchased upon exercise of this Warrant pursuant to Section 2.1,
multiplied by (ii) the Current Warrant Price as of the date of such exercise.

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<PAGE>   7

         "Warrant Shares" means the Common Shares purchased by the holders of
the Warrants upon the exercise thereof.

2.       EXERCISE OF WARRANT

         2.1 MANNER OF EXERCISE. From and after the date hereof, Holder may
exercise this Warrant, on any Business Day, for any or all of the number of
Common Shares purchasable hereunder as specified in Section 2.2 hereof.

         In order to exercise this Warrant, Holder shall deliver to the Bank at
its principal office or at the office or agency designated by the Bank pursuant
to Section 13, (i) a written notice of Holder's election to exercise this
Warrant, which notice shall specify the number of Common Shares to be purchased,
(ii) payment of the Warrant Price by Holder's check or wire transfer of
immediately available funds and (iii) this Warrant. Such notice shall be
substantially in the form of the subscription form appearing at the end of this
Warrant as Exhibit A, duly executed by Holder or its agent or attorney. Upon
receipt thereof, the Bank shall, as promptly as practicable, and in any event
within five (5) Business Days thereafter, execute or cause to be executed and
deliver or cause to be delivered to Holder a certificate or certificates
representing the aggregate number of full shares of Common Shares issuable upon
such exercise, as hereinafter provided. The share certificate or certificates so
delivered shall be, to the extent possible, in such denomination or
denominations as such Holder shall request in the notice and shall be registered
in the name of Holder or, subject to Section 9, such other name as shall be
designated in the notice. This Warrant shall be deemed to have been exercised
and such certificate or certificates shall be deemed to have been issued, and
Holder or any other Person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the notice, together with the check or wire transfer and this Warrant, is
received by the Bank as described above and all taxes required to be paid by
Holder, if any, pursuant to Section 2.3 prior to the issuance of such shares
have been paid. Notwithstanding any provision herein to the contrary, the Bank
shall not be required to register shares in the name of any Person who acquired
this Warrant (or part hereof) or any Warrant Stock other than in accordance with
this Warrant.

         2.2 COMMON SHARES PURCHASABLE UPON EXERCISE OF THE WARRANT. Shares
purchasable under this Warrant shall be One Hundred Thirty Six thousand Three
Hundred Fifteen (136,315), as such number may be adjusted in accordance with the
terms of this Warrant.

         2.3 PAYMENT OF TAXES. All Common Shares issuable upon the exercise of
this Warrant pursuant to the terms hereof shall be validly issued, fully paid
and nonassessable and without any preemptive rights. The Bank shall pay all
expenses in connection with, and all taxes and other governmental charges, if
any, that may be imposed with respect to, the issue or delivery thereof. The
Bank shall not be required, however, to pay any tax or other charge imposed in
connection with any transfer involved in the issue of any certificate for Common
Shares issuable upon exercise of this Warrant in any name other than that of
Holder, and in such case the Bank shall not be required to issue or deliver any
stock certificate until such tax or other charge has been paid or it has been
established to the satisfaction of the Bank that no such tax or other charge is
due.

         2.4 NO FRACTIONAL SHARES. The Bank shall not issue a fractional Common
Share upon exercise of any Warrant. As to any fraction in excess of 0.5 of a
share which the Holder of one or more

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<PAGE>   8

Warrants, the rights under which are exercised in the same transaction, would
otherwise be entitled to purchase upon such exercise, the Bank shall issue one
Common Share and as to any lesser fraction any entitlement of the Holder shall
be deemed to be canceled.

         2.5 CONTINUED VALIDITY. A holder of Common Shares issued upon the
exercise of this Warrant (other than a holder who acquires such shares after the
same have been publicly sold pursuant to a prospectus under the Securities Act
or otherwise distributed to the public under such legislation or comparable
legislation of any other jurisdiction), shall continue to be entitled with
respect to such shares to all rights to which it would have been entitled as
Holder under Sections 9, 10 and 16 of this Warrant. The Bank will, at the time
of each exercise of this Warrant, upon the request of the holder of the Common
Shares issued upon such exercise hereof, acknowledge in writing, in form
reasonably satisfactory to such holder, its continuing obligation to afford to
such holder all such rights; provided, however, that if such holder shall fail
to make any such request, such failure shall not affect the continuing
obligation of the Bank to afford to such holder all such rights.

         2.6 CONDITIONAL EXERCISE. Notwithstanding any provision of this Warrant
to the contrary, the exercise of this Warrant may, at the Holder's election, be
made conditional upon the closing of the sale of the Warrant Shares pursuant to
a registered public offering thereof effected in accordance with the
Registration Rights Agreement referred to in Section 9.3 hereof.

3.       TRANSFER, DIVISION AND COMBINATION

         3.1 TRANSFER. Subject to compliance with Section 9, transfer of this
Warrant and all rights hereunder, in whole or in part, shall be registered on
the books of the Bank to be maintained for such purpose, upon surrender of this
Warrant at the principal office of the Bank referred to in Section 2.1 or the
office or agency designated by the Bank pursuant to Section 13, together with a
written assignment of this Warrant substantially in the form of Exhibit B hereto
duly executed by Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender the
Bank shall, subject to Section 9, execute and deliver a new Warrant or Warrants
in the name of the assignee or assignees and in the denomination specified in
such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be canceled. A Warrant, if properly assigned in compliance with Section
9, may be exercised by a new Holder for the purchase of Common Shares without
having a new Warrant issued.

         3.2 DIVISION AND COMBINATION. Subject to Section 9, this Warrant may be
divided or combined with other Warrants upon presentation hereof at the
aforesaid office or agency of the Bank, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by Holder or its agent or attorney. Subject to compliance with Section
3.1 and with Section 9, as to any transfer which may be involved in such
division or combination, the Bank shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

         3.3 EXPENSES. The Bank shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new Warrant or Warrants under this
Section 3.

                                       5
<PAGE>   9

         3.4 MAINTENANCE OF BOOKS. The Bank agrees to maintain, at its aforesaid
office or agency, books for the registration and the registration of transfer of
the Warrants.

4.       ADJUSTMENTS

         The number of Common Shares for which this Warrant is exercisable, or
the price at which such shares may be purchased upon exercise of this Warrant,
shall be subject to adjustment from time to time as set forth in this Section 4.
The Bank shall give each Holder notice of any event described below which
requires an adjustment pursuant to this Section 4 at the time of such event.

         4.1 STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at any time the
Bank shall:

                  (a) take a record of the holders of its Common Shares for the
         purpose of entitling them to receive a dividend payable in, or other
         distribution of, Additional Common Shares,

                  (b) subdivide its outstanding Common Shares into a larger
         number of Common Shares, or

                  (c) combine its outstanding Common Shares into a smaller
         number of Common Shares,

then (i) the number of Common Shares for which this Warrant is exercisable
immediately after the occurrence of any such event shall be adjusted to equal
the number of Common Shares which a record holder of the same number of Common
Shares for which this Warrant is exercisable immediately prior to the occurrence
of such event would own or be entitled to receive after the happening of such
event, and (ii) the Current Warrant Price shall be adjusted to equal the amount
obtained by multiplying the Current Warrant Price by a fraction, the numerator
of which is the number of Common Shares for which this Warrant is exercisable
immediately prior to the adjustment and the denominator of which is the number
of shares for which this Warrant is exercisable immediately after such
adjustment.

         4.2 CERTAIN OTHER DISTRIBUTIONS. If at any time the Bank shall declare
or pay any dividend or make a distribution of:

                  (a) cash (other than a cash distribution or dividend payable
         out of earnings or earned surplus legally available for the payment of
         dividends under the laws of the jurisdiction of incorporation of the
         Bank),

                  (b) any evidences of its indebtedness, any of its shares or
         any other securities or property of any nature whatsoever (other than
         cash, Convertible Securities or Additional Common Shares), or

                  (c) any warrants or other rights to subscribe for or purchase
         any evidences of its indebtedness, any of its shares or any other
         securities or property of any nature whatsoever (other than cash,
         Convertible Securities or Additional Common Shares),

then in each such event provision shall be made so that the Holder of this
Warrant shall receive upon exercise hereof, in addition to the number of Common
Shares issuable upon exercise hereof, the cash,

                                       6
<PAGE>   10

securities or other property which such Holder would have received as a dividend
or distribution (other than out of earnings or earned surplus legally available
for the payment of dividends under applicable law) if continuously since the
Issuance Date such Holder (i) had been the holder of record of the Common Shares
issuable upon such exercise and (ii) had retained all dividends in stock or
other securities (other than Common Shares or Convertible Securities) paid or
payable in respect of such Common Shares or in respect of any such securities so
paid or payable in respect of such securities so paid or payable as such
dividends or distributions. for purposes of this Section 4.2, a dividend or
distribution payable other than in cash shall be considered to be payable out of
earnings or earned surplus only to the extent that such earnings or earned
surplus shall be charged in an amount equal to the fair value of such dividend
or distribution, as determined by the Bank's Board of Directors.

         4.3 ISSUANCE OF ADDITIONAL COMMON SHARES. (a) If at any time the Bank
shall (except as hereinafter provided) at any time issue or sell any Additional
Common Shares, other than Permitted Issuances, for consideration in an amount
per Additional Common Share less than the Current Warrant Price, then (i) the
number of Common Shares for which this Warrant is exercisable shall be adjusted
to equal the product obtained by multiplying the number of Common Shares for
which this Warrant is exercisable immediately prior to such issue or sale by a
fraction (A) the numerator of which shall be the number of Common Shares
Outstanding immediately after such issue or sale, and (B) the denominator of
which shall be the number of Common Shares Outstanding immediately prior to such
issue or sale plus the number of Common Shares which the aggregate offering
price of the total number of such Additional Common Shares would purchase at the
Current Warrant Price; and (ii) the Current Warrant Price as to the number of
shares for which this Warrant is exercisable prior to such adjustment shall be
adjusted by multiplying such Current Warrant Price by a fraction (X) the
numerator of which shall be the number of Common Shares for which this Warrant
is exercisable immediately prior to such issue or sale, and (Y) the denominator
of which shall be the number of Common Shares for which this Warrant is
exercisable immediately after such issue or sale.

                  (b) The provisions of paragraph (a) of Section 4.3 shall not
apply to any issuance of Additional Common Shares for which an adjustment is
provided under Section 4.1. No adjustment of the number of Common Shares for
which this Warrant shall be exercisable shall be made under paragraph (a) of
Section 4.3 upon the issuance of any Additional Common Shares which are issued
pursuant to the conversion or exchange rights in any Convertible Securities, if
any such adjustment shall previously have been made upon the issuance of such
Convertible Securities (or upon the issuance of any Option or other rights
therefore) pursuant to Section 4.4 or Section 4.5.

         4.4 ISSUANCE OF WARRANTS OR OTHER RIGHTS. If at any time the Bank shall
take a record of the holders of its Common Shares for the purpose of entitling
them to receive a distribution of, or shall in any manner (whether directly or
by assumption in a merger in which the Bank is the surviving corporation other
than a merger described in Section 4.8) issue or sell, any warrants or other
rights to subscribe for or purchase any Additional Common Shares or any
Convertible Securities, other than Permitted Issuances, whether or not the
rights to exchange or convert thereunder are immediately exercisable, and the
price per share for which Common Shares are issuable upon the exercise of such
warrants or other rights or upon conversion or exchange of such Convertible
Securities shall be less than the Current Warrant Price, then the number of
shares for which this Warrant is exercisable and the Current Warrant Price shall
be adjusted as provided in Section 4.3 on the basis that the maximum number of
Additional Common Shares issuable pursuant to all such warrants or other rights
or necessary

                                       7
<PAGE>   11

to effect the conversion or exchange of all such Convertible Securities shall be
deemed to have been issued and outstanding and the Bank shall have received all
of the minimum consideration payable therefor, if any, as of the date of the
actual issuance of such warrants or other rights. No additional adjustment of
the number of shares for which this Warrant is exercisable shall be made upon
the actual issue of such Common Shares or of such Convertible Securities upon
exercise of such warrants or other rights or upon the actual issue of such
Common Shares upon such conversion or exchange of such Convertible Securities.

         4.5 ISSUANCE OF CONVERTIBLE SECURITIES. If at any time the Bank shall
take a record of the holders of its Common Shares for the purpose of entitling
them to receive a distribution of or shall in any manner (whether directly or by
assumption in a merger in which the Bank is the surviving corporation other than
a merger described in Section 4.8) issue or sell, any Convertible Securities,
whether or not the rights to exchange or convert thereunder are immediately
exercisable, and the price per share for which Common Shares are issuable upon
such conversion or exchange shall be less than the Current Warrant Price, then
the number of shares for which this Warrant is exercisable and the Current
Warrant Price shall be adjusted as provided in Section 4.3 on the basis that the
maximum number of Additional Common Shares necessary to effect the conversion or
exchange of all such Convertible Securities shall be deemed to have been issued
and outstanding and the Bank shall have received all of the consideration
payable therefor, if any, as of the date of actual issuance of such Convertible
Securities. No additional adjustment of the number of shares for which this
Warrant is exercisable shall be made under this Section 4.5 upon the issuance of
any Convertible Securities which are issued pursuant to the exercise of any
warrants or other subscription or purchase rights therefor, if any such
adjustment shall previously have been made upon the issuance of such warrants or
other rights pursuant to Section 4.4. No further adjustments of the number of
shares for which this Warrant is exercisable shall be made upon the actual issue
of such Common Shares upon conversion or exchange of such Convertible Securities
and, if any issue or sale of such Convertible Securities is made upon exercise
of any warrant or other right to subscribe for or to purchase any such
Convertible Securities for which adjustments of the number of shares for which
this Warrant is exercisable has been or is to be made pursuant to other
provisions of this Section 4, no further adjustments of the number of shares for
which this Warrant is exercisable shall be made by reason of such issue or sale.

         4.6 SUPERSEDING ADJUSTMENT. If, at any time after any adjustment of the
number of Common Shares for which this Warrant is exercisable and the Current
Warrant Price shall have been made pursuant to Section 4.4 or Section 4.5 as the
result of any issuance of warrants, rights or Convertible Securities,

                  (a) such warrants or rights, or the right of conversion or
         exchange in such other Convertible Securities, shall expire, and all or
         a portion of such warrants or rights, or the right of conversion or
         exchange with respect to all or a portion of such other Convertible
         Securities, as the case may be, shall not have been exercised, or

                  (b) the consideration per share for which Common Shares are
         issuable pursuant to such warrants or rights, or the terms of such
         other Convertible Securities, shall be increased solely by virtue of
         provisions therein contained for an automatic increase in such
         consideration per share upon the occurrence of a specified date or
         event,

                                       8
<PAGE>   12

then such previous adjustment shall be rescinded and annulled and the Additional
Common Shares which were deemed to have been issued by virtue of the computation
made in connection with the adjustment so rescinded and annulled shall no longer
be deemed to have been issued by virtue of such computation. Thereupon, a
recomputation shall be made of the effect of such rights or options or other
Convertible Securities on the basis of

                  (c) treating the number of Additional Common Shares or other
         property, if any, theretofore actually issued or issuable pursuant to
         the previous exercise of any such warrants or rights or any such right
         of conversion or exchange, as having been issued on the date or dates
         of any such exercise and for the consideration actually received and
         receivable therefor, and

                  (d) treating any such warrants or rights or any such other
         Convertible Securities which then remain outstanding as having been
         granted or issued immediately after the time of such increase of the
         consideration per share for which Common Shares or other property are
         issuable under such warrants or rights or other Convertible Securities;
         whereupon a new adjustment of the number of Common Shares for which
         this Warrant is exercisable and the Current Warrant Price shall be
         made, which new adjustment shall supersede the previous adjustment so
         rescinded and annulled.

         4.7 OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. the
following provisions shall be applicable to the making of adjustments of the
number of Common Shares for which this Warrant is exercisable and the Current
Warrant Price provided for in this Section 4:

                  (a) COMPUTATION OF CONSIDERATION. To the extent that any
         Additional Common Shares or any Convertible Securities or any warrants
         or other rights to subscribe for or purchase any Additional Common
         Shares or any Convertible Securities shall be issued for cash
         consideration, the consideration received by the Bank therefor shall be
         the amount of the cash received by the Bank therefor, or, if such
         Additional Common Shares or Convertible Securities are offered by the
         Bank for subscription, the subscription price, or, if such Additional
         Common Shares or Convertible Securities are sold to underwriters or
         dealers for public offering without a subscription offering, the
         initial public offering price (in any such case subtracting any amounts
         paid or receivable for accrued interest or accrued dividends and
         without taking into account any compensation, discounts or expenses
         paid or incurred by the Bank for and in the underwriting of, or
         otherwise in connection with, the issuance thereof). To the extent that
         such issuance shall be for a consideration other than cash, then,
         except as herein otherwise expressly provided, the amount of such
         consideration shall be deemed to be the fair value of such
         consideration at the time of such issuance as determined in good faith
         by the Board of Directors of the Bank. In case any Additional Common
         Shares or any Convertible Securities or any warrants or other rights to
         subscribe for or purchase such Additional Common Shares or Convertible
         Securities shall be issued in connection with any merger in which the
         Bank issues any securities, the amount of consideration therefor shall
         be deemed to be the fair value, as determined in good faith by the
         Board of Directors of the Bank, of such portion of the assets and
         business of the nonsurviving corporation as such Board in good faith
         shall determine to be attributable to such Additional Common Shares,
         Convertible Securities, warrants or other rights, as the case may be.
         The consideration for any Additional Common Shares issuable pursuant to
         any warrants or other rights to subscribe for or purchase the same
         shall be the consideration received by the Bank for

                                       9
<PAGE>   13

         issuing such warrants or other rights plus the additional minimum
         consideration payable to the Bank upon exercise of such warrants or
         other rights. The consideration for any Additional Common Shares
         issuable pursuant to the terms of any Convertible Securities shall be
         the consideration received by the Bank for issuing warrants or other
         rights to subscribe for or purchase such Convertible Securities, plus
         the minimum consideration paid or payable to the Bank in respect of the
         subscription for or purchase of such Convertible Securities, plus the
         additional minimum consideration, if any, payable to the Bank upon the
         exercise of the right of conversion or exchange in such Convertible
         Securities. In case of the issuance at any time of any Additional
         Common Shares or Convertible Securities in payment or satisfaction of
         any dividends upon any class of stock other than Common Shares, the
         Bank shall be deemed to have received for such Additional Common Shares
         or Convertible Securities a consideration equal to the amount of such
         dividend so paid or satisfied.

                  (b) WHEN ADJUSTMENTS TO BE MADE. The adjustments required by
         this Section 4 shall be made whenever and as often as any specified
         event requiring an adjustment shall occur, except that any adjustment
         of the number of Common Shares for which this Warrant is exercisable
         that would otherwise be required may be postponed (except in the case
         of a subdivision or combination of the Common Shares, as provided for
         in Section 4.1) up to, but not beyond the date of exercise if such
         adjustment either by itself or with other adjustments not previously
         made adds or subtracts less than 1% of the Common Shares for which this
         Warrant is exercisable immediately prior to the making of such
         adjustment. Any adjustment representing a change of less than such
         minimum amount (except as aforesaid) which is postponed shall be
         carried forward and made as soon as such adjustment, together with
         other adjustments required by this Section 4 and not previously made,
         would result in a minimum adjustment or on the date of exercise. For
         the purpose of any adjustment, any specified event shall be deemed to
         have occurred at the close of business on the date of its occurrence.

                  (c) FRACTIONAL INTERESTS. In computing adjustments under this
         Section 4, fractional interests in Common Shares shall be taken into
         account to the nearest 1/10th of a share.

                  (d) WHEN ADJUSTMENT NOT REQUIRED. If the Bank shall take a
         record of the holders of its Common Shares for the purpose of entitling
         them to receive a dividend or distribution or subscription or purchase
         rights and shall, thereafter and before the distribution to
         stockholders thereof, legally abandon its plan to pay or deliver such
         dividend, distribution, subscription or purchase rights, then
         thereafter no adjustment shall be required by reason of the taking of
         such record and any such adjustment previously made in respect thereof
         shall be rescinded and annulled.

                  (e) ESCROW OF WARRANT SHARES. If after any property becomes
         distributable pursuant to this Section 4 by reason of the taking of any
         record of the holders of Common Shares, but prior to the occurrence of
         the event for which such record is taken, and Holder exercises this
         Warrant, any Additional Common Shares issuable upon exercise by reason
         of such adjustment shall be deemed the last Common Shares for which
         this Warrant is exercised (notwithstanding any other provision to the
         contrary herein) and such shares or other property shall be held in
         escrow for Holder by the Bank to be issued to Holder upon and to the
         extent that the event actually takes place, upon payment of the then
         Current Warrant Price. Notwithstanding any other provision to

                                       10
<PAGE>   14

         the contrary herein, if the event for which such record was taken fails
         to occur or is rescinded, then such escrowed shares shall be canceled
         by the Bank and the escrowed property returned.

         4.8 REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS. In case the Bank shall reorganize its capital, reclassify
its capital stock, consolidate or merge with or into another corporation (where
the Bank is not the surviving corporation or where there is a change in or
distribution with respect to the Common Shares of the Bank), or sell, transfer
or otherwise dispose of all or substantially all its property, assets or
business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common shares of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Shares
of the Bank, then each Holder shall have the right thereafter to receive, upon
exercise of such Warrant, the number of common shares of the successor or
acquiring corporation or of the Bank, if it is the surviving corporation, and
Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of
the number of Common Shares for which this Warrant is exercisable immediately
prior to such event. In case of any such reorganization, reclassification,
merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Bank) shall expressly assume the due and punctual
observance and performance of each and every covenant and condition of this
Warrant to be performed and observed by the Bank and all the obligations and
liabilities hereunder, subject to such modifications as may be deemed
appropriate (as determined by resolution of the Board of Directors of the Bank)
in order to provide for adjustments of the Common Shares for which this Warrant
is exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 4. For purposes of this Section 4.8
"common shares of the successor or acquiring corporation" shall include shares
of such corporation of any class which is not preferred as to dividends or
assets over any other class of shares of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares or other securities which are convertible into or exchangeable for any
such shares, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such shares. The foregoing provisions of this Section 4.8 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets and shall apply to a corporate
reorganization in which a holding company is formed for the Bank.

         4.9 OTHER ACTION AFFECTING COMMON SHARES. In case at any time or from
time to time the Bank shall take any action (of a type not contemplated by this
Section 4) in respect of its Common Shares, other than the payment of dividends
permitted by Section 4.2(a) or any other action described in this Section 4,
then, unless such action will not have an adverse effect upon the rights of the
Holders, the number of Common Shares or other shares for which this Warrant is
exercisable and/or the purchase price thereof shall be adjusted in such manner
as may be equitable in the circumstances. Without limitation, increases in the
number of authorized Common Shares shall not be deemed to have an adverse effect
upon the rights of the holders.

                                       11
<PAGE>   15

         4.10 CERTAIN LIMITATIONS. Notwithstanding anything herein to the
contrary, the Bank agrees not to enter into any transaction which, by reason of
any adjustment hereunder, would cause the current Warrant Price to be less than
the par value per share of the Common Shares.

5.       NOTICES TO WARRANT HOLDERS

         5.1 NOTICE OF ADJUSTMENTS. Whenever the number of Common Shares for
which this Warrant is exercisable, or whenever the price at which a common Share
may be purchased upon exercise of the Warrants, shall be adjusted pursuant to
Section 4, the Bank shall forthwith prepare a certificate to be executed by the
chief financial officer of the Bank setting forth, in reasonable detail, the
event requiring the adjustment and the method by which such adjustment was
calculated (including a description of the basis on which the Board of Directors
of the Bank determined the fair value of any evidences of indebtedness, shares,
other securities or property or Warrants or other subscription or purchase
rights referred to in Section 4.2 or 4.7(a)), specifying the number of Common
Shares for which this Warrant is exercisable and (if such adjustment was made
pursuant to Section 4.8 or 4.9) describing the number and kind of any other
shares or Other Property for which this Warrant is exercisable, and any change
in the purchase price or prices thereof, after giving effect to such adjustment
or change. The Bank shall promptly cause a signed copy of such certificate to be
delivered to each Holder in accordance with Section 16.2. The Bank shall keep at
its office or agency designated pursuant to Section 13 copies of all such
certificates and cause the same to be available for inspection at said office
during normal business hours by any Holder or any prospective purchaser of a
Warrant designated by a Holder thereof.

         5.2 NOTICE OF CERTAIN CORPORATE ACTION. The Holder shall be entitled to
the same rights to receive notice of corporate action as any holder of Common
Shares.

6.       NO IMPAIRMENT

         The Bank shall not by any action including, without limitation,
amending its certificate or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder against impairment.
Without limiting the generality of the foregoing, the Bank will (a) take all
such action as may be necessary or appropriate in order that the Bank may
validly and legally issue fully paid and nonassessable Common Shares upon the
exercise of this Warrant, and (b) use its best efforts to obtain all such
authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Bank to perform its
obligations under this Warrant.

         Upon the request of Holder, the Bank will at any time during the period
this Warrant is outstanding acknowledge in writing, in form satisfactory to
Holder, the continuing validity of this Warrant and the obligations of the Bank
hereunder.

7.       RESERVATION AND AUTHORIZATION OF COMMON SHARES; REGISTRATION WITH OR
APPROVAL OF ANY GOVERNMENTAL AUTHORITY

                                       12
<PAGE>   16

         From and after the date hereof, the Bank shall at all times reserve and
keep available for issue upon the exercise of Warrants such number of its
authorized but unissued Common Shares as will be sufficient to permit the
exercise in full of all outstanding Warrants. All Common Shares which shall be
so issuable, when issued upon exercise of any Warrant and paid for in accordance
with the terms of such Warrant, shall be duly and validly issued and fully paid
and nonassessable.

         Before taking any action which would cause an adjustment reducing the
Current Warrant Price below the then par value per share of the Common Shares
issuable upon exercise of the Warrants, the Bank shall take any corporate action
which may be necessary in order that the Bank may validly and legally issue
fully paid and nonassessable Common Shares at such adjusted Current Warrant
Price.

         Before taking any action which would result in an adjustment in the
number of Common Shares for which this Warrant is exercisable or in the Current
Warrant Price, the Bank shall obtain all such authorizations or exemptions
thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction in respect thereof.

         If any Common Shares required to be reserved for issuance upon exercise
of Warrants require registration or qualification with any governmental
authority in the United States or any other jurisdiction (otherwise than as
provided in Section 9) or any stock exchange before such shares may be so
issued, the Bank will in good faith and as expeditiously as possible and at its
expense endeavor to cause such shares to be duly registered.

8.       TAKING OF RECORD, SHARE AND WARRANT TRANSFER BOOKS

         In the case of all dividends or other distributions by the Bank to the
holders of its Common Shares with respect to which any provision of Section 4
refers to the taking of a record of such holders, the Bank will in each such
case take such a record as of the close of business on a Business Day. The Bank
will not at any time, except upon dissolution, liquidation or winding up of the
Bank, close its stock transfer books or Warrant transfer books so as to result
in preventing or delaying the exercise or transfer of any Warrant.

9.       RESTRICTIONS ON TRANSFERABILITY

         No transfer or assignment of this Warrant or the Warrant Shares shall
be made before satisfaction of the conditions specified in this Section 9, which
conditions are intended to ensure compliance with the provisions of the
Securities Act with respect to the Transfer of any Warrant and the Warrant
Shares. Holder, by acceptance of this Warrant, agrees to be bound by the
provisions of this Section 9.

         9.1 RESTRICTIVE LEGEND. Except as otherwise provided in this Section 9,
each certificate for Warrant Shares initially issued upon the exercise of this
Warrant, and each certificate for Warrant Shares issued to any subsequent
transferee of any such certificate, shall be stamped or otherwise imprinted with
a legend in substantially the following form:

                  "The shares represented by this certificate have not been
         registered under the Securities Act of 1933, as amended (the "Act"), or
         any state securities laws and cannot be offered, sold or

                                       13
<PAGE>   17

         transferred in the absence of registration or the availability of an
         exemption from registration under the Act, applicable state securities
         laws and regulations promulgated thereunder."

         9.2 PROPOSED TRANSFERS. Prior to any Transfer or attempted Transfer of
any Warrants or any Restricted Common Shares, the holder of such Warrants or
Restricted Common Shares shall obtain from counsel to such Holder an opinion
that the proposed Transfer of such Warrants or such Restricted Common Shares may
be effected without registration under the Securities Act. Each certificate, if
any, evidencing such Restricted Common Shares issued upon such Transfer shall
bear the restrictive legend set forth in Section 9.1, and each Warrant issued
upon such Transfer shall bear the restrictive legend set forth on the first page
hereof unless in the opinion of Holder's counsel, which opinion and which
counsel shall be reasonably satisfactory to the Bank and to its counsel, such
legend is not required in order to ensure compliance with the Securities Act.

         9.3 REGISTRATION. Fleet as Holder of the Warrant and Warrant Shares has
certain rights relating to registration and related matters, as provided for in
a Registration Rights Agreement made at even date herewith among the Bank, Fleet
Financial Group, Inc., and certain investors in the Bank, to which agreement
reference is hereby made.

10.      SUPPLYING INFORMATION

         The Bank shall cooperate with each Holder of a Warrant and each holder
of Restricted Common Shares in supplying such information as may be reasonably
necessary for such holder to complete and file any information reporting forms
presently or hereafter required by the Commission as a condition to the
availability of an exemption from the Securities Act for the sale of any Warrant
or Restricted Common Shares.

11.      MANDATORY REDEMPTION OF WARRANT

         If at any time from and after the Issuance Date a Change of Control
Event occurs, Holder shall have the right to sell this Warrant to the Bank (the
"Put"), and upon exercise of such right, the Bank shall purchase this Warrant
for an amount equal to the product of (A) the number of Warrant Shares issuable
hereunder and (B) (i) in an all cash transaction involving the acquisition of
the Bank, the cash price per share for the Bank's Common Shares as set forth in
such definitive agreement involving a Change of Control Event (or (x) in the
case of a stock for stock acquisition transaction, the average closing price of
the acquiror's stock during the five trading days following the public
announcement of the transaction, multiplied by the exchange ratio provided for
in or determined from such definitive agreement involving a Change of Control
Event; or (y) in the case of an acquisition transaction involving consideration
all or part of which is other than cash or common stock of the acquiror, the
fair market value of such other consideration to be paid in the acquisition
transaction for each Common Share, as determined by the Board of Directors of
the Bank, plus the amount of cash, if any, and the value of the common stock of
the acquiror, if any, to be paid for each Common Share in the transaction,
calculated as set forth above in this Section 11), less (ii) the then Current
Warrant Price.

         The Put shall be exercised by written notice to the Bank of the
Holder's election to exercise the Put (the "Notice"). The closing of the
redemption of this Warrant shall take place at the office of the Bank on a date
designated by the Holder in the Notice, which date shall be not less than 15
days or more

                                       14
<PAGE>   18

than 60 days after the date of the Notice. At such closing the Bank shall
deliver the amount to be paid for the purchase of the Warrant as provided above,
plus the amount to which the Holder would have been entitled to receive pursuant
to Section 4.2 if this Warrant had been exercised as of the date of the Bank's
purchase of the Warrant, by wire transfer of immediately available funds. At
such closing the Holder shall deliver the Warrant to the Bank.

         If this Holder has been provided reasonable advance notice of the
pendency of a Change of Control Event, the Holder agrees to cooperate with the
Bank and inform the Bank whether or not it intends to exercise the Put in
connection with such Change of Control Event. If the Holder chooses to exercise
the Put in connection with a particular Change of Control Event, it agrees upon
request of the Bank to make its exercise of such Put conditional upon and
contemporaneous with the closing of the Change of Control Event. The Put shall
not be exercisable more than 90 days after the occurrence of a Change of Control
Event.

12.      LOSS OR MUTILATION

         Upon receipt by the Bank from any Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of Fleet Financial Group, Inc. shall be
sufficient indemnity) and in case of mutilation upon surrender and cancellation
hereof, the Bank will execute and deliver in lieu hereof a new Warrant of like
tenor to such Holder, PROVIDED, in the case of mutilation, no indemnity shall be
required if this Warrant in identifiable form is surrendered to the Bank for
cancellation.

13.      OFFICE OF THE BANK

         As long as any of the Warrants remain outstanding, the Bank shall
maintain an office or agency (which may be the principal executive offices of
the Bank) where the Warrants may be presented for exercise, registration of
transfer, division or combination as provided in this Warrant and shall advise
the holders of the Warrants of any change in such office or agency.

14.      LIMITATION OF LIABILITY

         No provision hereof, in the absence of affirmative action by Holder to
purchase Common Shares, and no enumeration herein of the rights or privileges of
Holder hereof, shall give rise to any liability of such Holder for the purchase
price of any Common Shares or as a stockholder of the Bank, whether such
liability is asserted by the Bank or by creditors of the Bank.

15.      EXPIRATION

         The right to exercise this Warrant shall expire on March 22, 2006.

16.      MISCELLANEOUS

         16.1 NONWAIVER. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder's rights,

                                       15
<PAGE>   19

powers or remedies. if the Bank fails to make, when due, any payments provided
for hereunder, or fails to comply with any other material provision of this
Warrant, the Bank shall pay to Holder such amounts as shall be sufficient to
cover any out of pocket costs and expenses including, but not limited to,
reasonable legal fees, including those of court proceedings, incurred by Holder
in collecting any amounts due pursuant hereto or in otherwise enforcing any of
its rights, powers or remedies hereunder.

         16.2 NOTICE GENERALLY. Any notice, demand, request, consent, approval,
declaration, delivery or other communication hereunder to be made pursuant to
the provisions of this Warrant shall be sufficiently given or made if in writing
and either delivered in person with receipt acknowledged or sent by registered
or certified mail, return receipt requested, postage prepaid or by telecopier or
other form of facsimile transmission, addressed as follows:

(a)      If to the Bank:

         Bank Rhode Island
         999 South Broadway
         East Providence, Rhode Island  02914
         Facsimile Number:  (401) 435-8614
         Attention:  Merrill W. Sherman, President

         With a copy to:

         Foley, Hoag & Eliot
         One Post Office Square
         Boston, Massachusetts  02109
         Facsimile Number:  (617) 832-7000
         Attention:  Peter W. Coogan, Esq.

         If to Holder:

         Fleet Financial Group, Inc.
         One Federal Street
         9th Floor
         Boston, Massachusetts  02211
         Facsimile Number:  (617) 346-0131
         Attention:  William C. Mutterperl, Esq.
                     Senior Vice President,
                     General Counsel and Secretary

         With a copy to:

         Edwards & Angell
         2700 Hospital Trust Tower
         Providence, Rhode Island  02903
         Facsimile Number:  (401) 276-6611
         Attention:  V. Duncan Johnson, Esq.

                                       16
<PAGE>   20

or in either case at such other address as may be substituted by notice given as
herein provided. The giving of any notice required hereunder may be waived in
writing by the party entitled to receive such notice. Every notice, demand,
request, consent, approval, declaration, delivery or other communication
hereunder shall be deemed to have been duly given or served on the date on which
personally delivered, with receipt acknowledged, or three (3) Business Days
after the same shall have been deposited in the United States mail or on the day
on which received if given by telecopier or other form of facsimile transmission
or on the next Business Day if received after normal business hours of the
recipient party. Failure or delay in delivering copies of any notice, demand,
request, approval, declaration, delivery or other communication to the person
designated above to receive a copy shall in no way adversely affect the
effectiveness of such notice, demand, request, approval, declaration, delivery
or other communication.

         16.3 REMEDIES. Each holder of Warrant and Warrant Shares, in addition
to being entitled to exercise all rights granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this
Warrant.

         16.4 SUCCESSORS AND ASSIGNS. Subject to the provisions of Section 3.1,
this Warrant and the rights evidenced hereby shall inure to the benefit of and
be binding upon the successors of the Bank and the successors and assigns of
Holder. The provisions of this Warrant are intended to be for the benefit of all
Holders from time to time of this Warrant, and shall be enforceable by any such
Holder.

         16.5 AMENDMENT. This Warrant and all other Warrants may be modified or
amended or the provisions hereof waived with the written consent of the Bank and
the Majority Holders, provided that no such Warrant may be modified or amended
to reduce the number of shares of Common Shares for which such Warrant is
exercisable (before giving effect to any adjustment as provided therein) without
the prior written consent of the Holder thereof.

         16.6 SEVERABILITY. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Warrant.

         16.7 HEADINGS. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be considered in
the interpretation of this Warrant.

         16.8 GOVERNING LAW. This Warrant shall be governed by the laws of the
State of Rhode Island, without regard to the provisions thereof relating to
conflict of laws.

                                     * * * *

                                       17

<PAGE>   21

         WITNESS WHEREOF, the Bank has caused this Warrant to be duly executed
and its corporate seal to be impressed hereon and attested by its Secretary or
an Assistant Secretary.

Dated:  March 22, 1996              BANK RHODE ISLAND

                                    By:   /s/ Merrill W. Sherman
                                       -------------------------------------
                                       Merrill W. Sherman
                                       President and Chief Executive Officer

Attest:

         /s/ Toby B. Richard
         -------------------
         Toby B. Richard
         Assistant Secretary

Accepted and Agreed To:

Fleet Financial Group, Inc.

By:    /s/ H. Jay Sarles
   -----------------------
   Name:  H. Jay Sarles
   Title:    Vice Chairman

                                       18
<PAGE>   22

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

         The undersigned registered owner of this Warrant irrevocably exercises
this Warrant for the purchase of Common Shares of Bank Rhode Island, and
herewith makes payment therefor, all at the price and on the terms and
conditions specified in this Warrant and requests that certificates for the
Common Shares hereby purchased (and any securities or other property issuable
upon such exercise) be issued in the name of and delivered to whose address is
and, if such Common Shares shall not include all of the Common Shares issuable
as provided in this Warrant, that a new Warrant of like tenor and date for the
balance of the Common Shares issuable hereunder be delivered to the undersigned.

                                    -------------------------------
                                    (Name of Registered Owner)

                                    -------------------------------
                                    (Signature of Registered Owner)

                                    -------------------------------
                                    (Street Address)

                                    -------------------------------
                                    (City) (State) (Zip Code)

NOTICE:  The signature on this subscription must correspond with the name as
         written upon the face of the within Warrant in every particular,
         without alteration or enlargement or any change whatsoever.

                                       19
<PAGE>   23

                                    EXHIBIT B

                                 ASSIGNMENT FORM

         FOR VALUE RECEIVED the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under this Warrant, with respect to the number of
Common Shares set forth below:

NAME AND ADDRESS OF ASSIGNEE             NO. OF COMMON SHARES

and does hereby irrevocably constitute and appoint attorney-in-fact to register
such transfer on the books of Bank Rhode Island maintained for the purpose, with
full power of substitution in the premises.

Dated:                                   Print Name:
       -----------------------                      ----------------------------

                                         Signature:
                                                   -----------------------------

Witness:
        -----------------------------

NOTICE:  The signature of this assignment must correspond with the name as
         written upon the face of the within Warrant in every particular,
         without alteration or enlargement or any change whatsoever.

                                       20<PAGE>   1
                                                                   Exhibit 10.36

[BANKBOSTON LOGO]
                                MASTER AGREEMENT

         This MASTER AGREEMENT, dated as of the 21st day of January, 1999,
which together with all riders and amendments now or hereafter executed and made
a part hereof (the "Master Agreement"), is made at Boston, Massachusetts by and
between BANCBOSTON LEASING INC. ("Lessor"), a Massachusetts corporation with its
principal place of business at 100 Federal Street, Boston, Massachusetts 02110
and Tucker Anthony Incorporated ("Lessee"), a Massachusetts corporation with its
principal place of business at One Beacon Street, Boston, MA 02108.

         IN CONSIDERATION OF the mutual promises and covenants contained herein,
Lessor and Lessee hereby agree as follows:

         1.       Leasing Property. At the request of Lessee and subject to the
terms and conditions of this Master Agreement, Lessor shall lease to Lessee and
Lessee shall lease from Lessor such personal property ("Equipment") as may be
mutually agreed upon by Lessor and Lessee. The Equipment shall be selected by or
ordered at the request of Lessee, identified in one or more lease schedules
substantially in the form as supplied by Lessor (each a "Lease Schedule") and
accepted by Lessee in one or more certificates of acceptance in the form as
supplied by Lessor (each a "Certificate of Acceptance"). Each Lease Schedule
executed by Lessor and Lessee expressly incorporates by reference the terms and
conditions of this Master Agreement and any riders, schedules or amendments, now
or hereafter executed, applicable to such Lease Schedule and shall constitute a
separate, distinct and independent lease and contractual relationship between
Lessor and Lessee.

         2.       Certain Definitions.

         2.1      The "Acquisition Cost" shall mean the total acquisition cost
of the Equipment paid by Lessor as set forth in the applicable Lease Schedule.

         2.2      The "Commencement Date" shall mean the date on which the
Equipment identified in the applicable Lease Schedule is accepted and placed in
service by Lessee as evidenced by a Certificate of Acceptance.

         2.3      The "Daily Rent" shall mean the per diem amount set forth in
the applicable Lease Schedule.

         2.4      The "Initial Term Start Date" shall mean either (i) the first
day of the month immediately following the month in which the Commencement Date
occurs, or (ii) if the Commencement Date occurs on the first day of the month,
the Commencement Date. For all rental periods other than monthly, the Initial
Term Start Date shall be as set forth on the applicable Lease Schedule.

         2.5      The "Payment Date" shall mean the date set forth in the
applicable Lease Schedule.

         2.6      The "Periodic Rent" shall mean the amount set forth in the
applicable Lease Schedule.

<PAGE>   2

         2.7      The words "herein", "hereof", and "hereunder" shall refer to
this Master Agreement and any Lease Schedule as a whole and not to any
particular section. Other capitalized terms shall have the meanings specified
elsewhere in this Master Agreement or the Lease Schedule.

         3.       Initial Term of Lease; Payment of Rent.

         3.1      This Master Agreement shall be effective from and after the
date of execution hereof. The term of lease for the Equipment shall begin on the
Commencement Date set forth in the applicable Certificate of Acceptance and
shall continue during and until the expiration of the Initial Term as defined
and set forth in the applicable Lease Schedule, measured from the Initial Term
Start Date. The Initial Term may not be canceled or terminated except as set
forth in Sections 10.2 or 17.1 below.

         3.2      At the expiration of the Initial Term, Lessor and Lessee may
extend the lease of the Equipment for any period as they may agree upon in
writing ("Extended Term") at the then fair market rental value of the Equipment,
as determined in good faith by Lessor.

         3.3      Aggregate Daily Rent shall be due and payable by Lessee on the
Initial Term Start Date in an amount equal to the Daily Rent multiplied by the
actual number of days elapsed from, and including, the Commencement Date to, but
excluding, the Initial Term Start Date. The Periodic Rent shall be due and
payable, without prior notice or demand, on the Payment Date and thereafter on
the first day of each month or other applicable period of the Initial Term or
any Extended Term. All Daily Rents and Periodic Rents shall be paid to Lessor at
its principal place of business in Boston, Massachusetts or other location to
which the Lessor may direct in writing.

         4.       Acceptance of Equipment; Exclusion of Warranties.

         4.1      Lessee shall signify its acceptance of the Equipment
identified in the applicable Lease Schedule by promptly executing and delivering
to Lessor a Certificate of Acceptance. Lessee acknowledges that its execution
and delivery of the Certificate of Acceptance shall conclusively establish, as
between Lessor and Lessee, that the Equipment has been inspected by Lessee, is
in good repair and working order, is of the design, manufacture and capacity
selected by Lessee, and is accepted by Lessee under the applicable Lease
Schedule.

         4.2      In the event the Equipment is ordered by Lessor from a
manufacturer or supplier at the request of Lessee, Lessor shall not be required
to pay the Acquisition Cost for such Equipment unless and until the applicable
executed Certificate of Acceptance has been received by Lessor. All expenses
incurred in connection with Lessor's purchase of the Equipment (including
shipment, delivery and installation) shall be the responsibility of Lessee and
shall be either capitalized in the Acquisition Cost or paid upon demand. If
Lessee shall refuse to accept delivery of any item of the Equipment, Lessee will
be assigned all rights and shall assume all obligations as purchaser of such
item of the Equipment. Lessee hereby agrees to indemnify, defend and hold Lessor
harmless from any liability to any manufacturer or supplier of the Equipment (in
each case a "Supplier") or any other manufacturer or supplier arising from the
failure of Lessee to lease any Equipment which is ordered by Lessor at the
request of Lessee or for which Lessor has assumed an obligation to purchase at
the request of Lessee.

         4.3      Lessor leases the Equipment to Lessee and Lessee leases the
Equipment from Lessor "AS IS" and "WITH ALL FAULTS". Lessee hereby acknowledges
that (i) Lessor is not a manufacturer, supplier or dealer of such Equipment nor
an agent thereof, and (ii) LESSOR HAS NOT MADE, DOES NOT MAKE, AND HEREBY
DISCLAIMS ANY REPRESENTATION OR WARRANTY

<PAGE>   3

WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE EQUIPMENT INCLUDING, BUT NOT
LIMITED TO, ITS DESIGN, CAPACITY, CONDITION, MERCHANTABILITY, OR FITNESS FOR USE
OR FOR ANY PARTICULAR PURPOSE. Lessee further acknowledges that Lessor is not
responsible for any repairs, maintenance, service, latent or other defects in
the Equipment or in the operation thereof, or for compliance of any Equipment
with requirements of any laws, ordinances, governmental rules or regulations
including, but not limited to, laws with respect to environmental matters,
patent, trademark, copyright or trade secret infringement, or for any direct,
indirect, incidental, punitive, consequential or other damages arising out of
the use of or inability to use the Equipment. In addition, Lessor makes no
representation and disclaims any warranty that the Equipment is "Year 2000
Compliant," that is, that any computer applications, imbedded microchips or
other systems, if any, which may be contained or included in the Equipment will
be able to recognize, and perform properly, date sensitive functions involving
certain dates prior to, and any date after, December 31, 1999.

         4.4      Provided no Event of Default, as defined in Section 16 below,
has occurred and is continuing, Lessor agrees to cooperate with Lessee, at the
sole cost and expense of Lessee, in making any claim against a manufacturer or
supplier of the Equipment arising from a defect in such Equipment or breach of
warranty, express or implied, and/or arising out of the purchase or supply
agreement between Lessor and Supplier. At the request of Lessee, Lessor shall
assign to Lessee, for the Initial Term and any Extended Term, all warranties on
the Equipment available from Supplier to the full extent permitted by the terms
of such warranties and by applicable law.

         5.       Ownership; Inspection; Maintenance and Use.

         5.1      The Equipment shall at all times be the sole and exclusive
property of Lessor. Any Equipment subject to titling and registration laws shall
be titled and registered by Lessee on behalf of and in the name of Lessor, or in
such name as Lessor may direct, at the sole cost and expense of Lessee. Lessee
shall cooperate with and provide Lessor with any information or documents
necessary for titling and registration of the Equipment. Upon the request of
Lessor, Lessee shall execute any documents or instruments which may be necessary
or appropriate to confirm, to record or to give notice of the ownership of the
Equipment by Lessor including, but not limited to, financing statements under
the Uniform Commercial Code. Lessee, at the request of Lessor, shall affix to
the Equipment, in a conspicuous place, any label, plaque or other insignia
supplied by Lessor designating the ownership of the Equipment by Lessor.

         5.2      The Equipment shall be located at the address specified in the
applicable Lease Schedule, which must be within the continental United States,
or such other location as Lessor may agree in writing, and may be removed
therefrom to another location within the continental United States only with
prior written notice to Lessor. Lessor, its agents or employees shall have the
right to enter the premises of Lessee, upon reasonable notice and during normal
business hours, for the purpose of inspecting the Equipment and all maintenance
records kept by Lessee with respect to the Equipment.

         5.3      Lessee shall pay all costs, expenses, fees and charges
whatsoever incurred in connection with the use and operation of the Equipment.
Lessee shall, at all times and at its own expense, keep the Equipment in good
repair and working order, reasonable wear and tear excepted. Lessee shall also
use the Equipment solely in the conduct of its business, and shall not
permanently discontinue use of the Equipment. Any maintenance contract required
by a manufacturer or supplier for the care and upkeep of the Equipment shall be
entered into by Lessee at its sole cost and expense. Lessee shall permit the use
and operation of the Equipment only by personnel authorized by Lessee and shall
comply with all laws,

<PAGE>   4

ordinances or governmental rules and regulations and applicable insurance
policies relating to the use and operation of the Equipment.

         6.       Alterations and Modifications. Lessee may make, or cause to be
made on its behalf, any improvement, modification or addition to the Equipment
with the prior written consent of Lessor, which will not be unreasonably
withheld; provided, however, that such improvement, modification or addition is
readily removable without causing damage to, or impairment of, the functional
effectiveness, remaining economic useful life or fair market value of the
Equipment. Any such improvement, modification or addition which is so readily
removable shall remain the property of Lessee and shall be removed by Lessee
prior to return of the Equipment. To the extent that such improvement,
modification or addition is not so removable, it shall be permitted only with
Lessor's prior written consent, which will be granted at Lessor's sole
discretion, and only if its attachment will not cause damage to, or impairment
of, the functional effectiveness, remaining economic useful life or fair market
value of the Equipment; and such improvement, modification or addition shall
immediately become the property of Lessor and thereupon shall be considered
Equipment for all purposes hereunder. Any modification or addition to the
Equipment which is required by law shall be made by Lessee, at the sole cost and
expense of Lessee, and shall immediately become the property of Lessor and
thereupon shall be considered Equipment for all purposes hereunder. Any
improvement, modification or addition made to the Equipment shall be free of all
liens, claims and encumbrances of third parties.

         7.       Quiet Enjoyment; No Defense, Setoff or Counterclaims.

         7.1      Provided no Event of Default, as defined in Section 16 below,
has occurred and is continuing, Lessee shall have the quiet enjoyment and use of
the Equipment in the ordinary course of its business during the Initial Term or
any Extended Term without interruption by Lessor or any person or entity
claiming through or under Lessor.

         7.2      Lessee acknowledges and agrees that ANY DAMAGE TO OR LOSS,
DESTRUCTION, OR UNFITNESS OF, OR DEFECT IN THE EQUIPMENT, OR THE INABILITY OF
LESSEE TO USE THE EQUIPMENT FOR ANY REASON WHATSOEVER, OR ANY OTHER CIRCUMSTANCE
WHATSOEVER SHALL NOT (i) GIVE RISE TO ANY DEFENSE, COUNTERCLAIM, OR RIGHT OF
SETOFF AGAINST LESSOR, OR (ii) PERMIT ANY ABATEMENT OR RECOUPMENT OF, OR
REDUCTION IN DAILY OR PERIODIC RENT, OR (iii) ALLOW LESSEE TO CANCEL, TERMINATE,
MODIFY OR REPUDIATE THE APPLICABLE LEASE SCHEDULE, OR (iv) RELIEVE LESSEE OF, OR
EXCUSE LESSEE FROM, THE PERFORMANCE OF ITS OBLIGATIONS UNDER THE APPLICABLE
LEASE SCHEDULE INCLUDING, BUT NOT LIMITED TO, ITS OBLIGATION TO PAY THE FULL
AMOUNT OF DAILY RENT AND PERIODIC RENT, WHICH OBLIGATIONS ARE ABSOLUTE AND
UNCONDITIONAL. Any claim that Lessee may have which arises from a defect in or
deficiency of the Equipment shall be brought solely against Supplier or any
other manufacturer or supplier of the Equipment and Lessee shall,
notwithstanding any such claim, continue to pay Lessor all amounts due and to
become due under the applicable Lease Schedule.

         8.       Adverse Claims and Interests.

         8.1      Except for any liens, claims, mortgages, pledges, encumbrances
or security interests created by or for the benefit of Lessor, Lessee shall keep
the Equipment at all times, free and clear from all liens, claims, mortgages,
pledges, encumbrances and security interests, other than liens for fees, taxes,
levies, duties or other governmental charges of any kind, liens of mechanics,
materialmen, laborers,

<PAGE>   5

employees or suppliers and similar liens arising by operation of law incurred by
Lessee in the ordinary course of business for sums that are not yet delinquent
or are being contested in good faith by appropriate proceedings which suspend
the collection thereof provided, however, that such proceedings do not involve
any risk of the sale, forfeiture or loss of the Equipment or any interest
therein, or of the imposition of criminal liability on the part of Lessor or
Lessee, which shall be determined by Lessor in its sole discretion. Lessee shall
keep the Equipment at all times free and clear from all levies, seizures and
attachments, and shall defend Lessor's title in and to the Equipment. Without
limitation of the covenants and obligations of Lessee set forth in the preceding
sentence, Lessee shall immediately notify Lessor in writing of the imposition of
any prohibited lien, claim, levy or attachment on or seizure of the Equipment,
at which time Lessee shall provide Lessor with all relevant information in
connection therewith.

         8.2      Lessee agrees that the Equipment shall be and at all times
shall remain personal property. Accordingly, Lessee shall take such steps as may
be necessary to prevent any person, including without limitation Lessee's
landlord and such landlord's mortgagee, from acquiring, having or retaining any
rights in or to the Equipment by reason of its being affixed or attached to, or
otherwise located on, real property including, without limitation, obtaining and
delivering to Lessor waivers of any lien, encumbrance or interest which such
person might have or hereafter obtain or claim with respect to the Equipment
which waivers shall be recorded at the sole cost and expense of Lessee.

         9.       Indemnities; Payment of Taxes.

         9.1      Lessee hereby agrees to indemnify, defend and hold harmless
(on an after-tax basis) Lessor, its agents, employees, successors and assigns
from and against any and all claims, actions, suits, proceedings, costs,
expenses, damages and liabilities whatsoever arising out of or in connection
with the manufacture, ordering, selection, specifications, availability,
delivery, titling, registration, rejection, installation, possession,
maintenance, ownership, use, leasing, operation or return of the Equipment
including, but not limited to, any claim or demand based upon (i) any STRICT OR
ABSOLUTE LIABILITY IN TORT, (ii) any violation of any applicable environmental
or other laws or regulations, or (iii) any infringement or alleged infringement
of any patent, trademark, trade secret, license, copyright or otherwise. All
costs and expenses incurred by Lessor in connection with any of the foregoing
including, but not limited to, reasonable legal fees shall be paid by Lessee on
demand. The indemnification provisions of this Section 9.1 shall not, however,
apply to any claim, cost or expense arising from, or in connection with, any
gross negligence or willful misconduct on the part of Lessor, its agents,
employees, its successors and assigns.

         9.2      Lessee hereby agrees to indemnify, defend and hold Lessor
harmless, on an after-tax basis, against all federal, state and local taxes,
assessments, licenses, withholdings, levies, imposts, duties, excise taxes,
registration fees and other governmental fees and charges whatsoever, which are
imposed, assessed or levied on or with respect to the Equipment or its use or
related in any way to a Lease Schedule ("Tax Assessments") except for taxes on
or measured by the net income of Lessor determined substantially in the same
manner as under the Internal Revenue Code of 1986, as amended. Lessee shall file
all returns, reports or other such documents required in connection with the Tax
Assessments and shall provide Lessor with copies thereof. Provided no Event of
Default, as defined in Section 16 below, has occurred and is continuing, Lessee
is also authorized, for and on behalf of Lessor, to file abatements or otherwise
seek a refund or reduction of any Tax Assessments provided that no such filing
shall create any risk of loss of or encumbrance on the Equipment. If, under
local law or custom, Lessee is not authorized to make the filings required by a
taxing authority, Lessee shall notify Lessor in writing, and Lessor shall
thereupon file such returns, reports or documents at Lessee's sole cost and
expense.

<PAGE>   6

Without limiting any of the foregoing, Lessee shall indemnify, defend and hold
Lessor harmless from all penalties, fines, interest payments, claims and
expenses, including but not limited to reasonable legal fees, arising from any
failure of Lessee to comply with the requirements of this Section 9.2.

         9.3      The obligations and indemnities of Lessee under this Section 9
for events occurring or arising or taxes accruing during the Initial Term or any
Extended Term shall continue and survive in full force and effect,
notwithstanding the expiration or other termination of this Master Agreement or
any Lease Schedule.

         10.      Risk of Loss; Loss of Equipment.

         10.1     Lessee hereby assumes and shall bear the entire risk of loss
for theft, disappearance, damage, seizure, condemnation, casualty, destruction
or other injury whatsoever to the Equipment from any and every cause whatsoever.
Such risk of loss shall be deemed to have been assumed by Lessee from and after
such risk passes from the Supplier by agreement or pursuant to applicable law.
For purposes of this Section 10 only, Equipment shall include any item or unit
thereof.

         10.2     In the event of loss or damage to any item of Equipment which
can be repaired by Lessee, Lessee shall, at its cost and expense, promptly
repair and restore such item of Equipment to the condition required by this
Master Agreement. In the event of any loss, seizure, condemnation, casualty or
destruction of the Equipment or damage to the Equipment which cannot be repaired
by Lessee, Lessee shall immediately notify Lessor in writing. Within thirty (30)
days of such notice, during which time Lessee shall continue to pay Periodic
Rent, Lessee shall, at the option of Lessor, either (i) replace the Equipment
with equipment of the same type and manufacture, and having a value, utility and
remaining economic useful life not less than the Equipment replaced, and in good
repair, condition and working order, and transfer title to such equipment to
Lessor free and clear of all liens, claims and encumbrances, whereupon such
equipment shall be deemed Equipment for all purposes of the Lease Schedule, or
(ii) pay to Lessor an amount equal to the present value of both the aggregate of
the remaining unpaid Periodic Rents and the anticipated residual value of the
Equipment plus any other costs actually incurred by Lessor. Lessor and Lessee
agree that the residual value of the Equipment at the expiration of the Initial
Term is reasonably anticipated to be not less than twenty percent (20%) of the
Acquisition Cost of the Equipment. The present value shall be determined by
discounting the aggregate of the remaining unpaid Periodic Rents and the
anticipated residual value of the Equipment to the date of payment by Lessee at
the rate of five percent (5%) per annum. When and as requested by Lessor, Lessee
shall also pay to Lessor amounts due pursuant to Section 18 below, if any,
arising as a result of the loss, seizure, replacement, condemnation or
destruction of the Equipment. Provided no Event of Default, as defined in
Section 16 below, has occurred and is continuing, any insurance or condemnation
proceeds received by Lessor shall be credited to the obligations of Lessee under
this Section 10.2, and the remainder of such proceeds, if any, shall be paid to
Lessee by Lessor in full compensation for the loss of the leasehold interest in
the Equipment by Lessee.

         10.3     Upon any replacement of or payment for the Equipment as
provided in Section 10.2 above, the Lease Schedule shall terminate only with
respect to the Equipment so replaced or paid for, and Lessor shall transfer to
Lessee title only to such Equipment "AS IS, WHERE IS", "WITH ALL FAULTS", and
WITH NO WARRANTIES WHATSOEVER, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR USE OR FOR ANY
PARTICULAR PURPOSE. Lessee shall pay any sales or use taxes due on such
transfer.

<PAGE>   7

         11.      Insurance.

         11.1     Lessee shall keep the Equipment insured against all risks of
loss or damage from every cause whatsoever occurring during the Initial Term, or
any Extended Term for an amount not less than the higher of the full replacement
value of the Equipment or the aggregate of unpaid Daily Rent and Periodic Rent
for the balance of the Initial Term or the Extended Term. Lessee shall also
carry public liability insurance, both bodily injury and property damage,
covering the Equipment, and Lessee shall be liable for any deductible portions
of all required insurance.

         11.2     All insurance required under this Section 11 shall be primary
and shall name Lessor as additional insured and loss payee. Such insurance shall
also be with such insurers and shall be in such form reasonably satisfactory to
Lessor and in such amounts as are satisfactory to Lessor. All applicable
policies shall provide that no act, omission or breach of warranty by Lessee
shall give rise to any defense against payment of the insurance proceeds to
Lessor. Lessee shall pay the premiums for such insurance and, at the request of
Lessor, deliver to Lessor duplicates of such policies or other evidence
satisfactory to Lessor of such insurance coverage. In any event, Lessee shall
provide Lessor with certificates of insurance or such other evidence of
coverage, to include endorsements upon the policies issued by the insurers which
evidence the existence of insurance coverage required by this Section 11, and by
which the insurers agree to give Lessor written notice at least thirty (30) days
prior to the effective date of any expiration, modification, reduction,
termination, refusal to renew or cancellation of any such policies. Lessee shall
cause to be provided to Lessor, not less than fifteen (15) days prior to the
scheduled expiration or lapse of such insurance coverage, evidence satisfactory
to Lessor of renewal or replacement coverage.

         11.3     Provided no Event of Default, as defined in Section 16 below,
has occurred and is continuing, the proceeds of insurance required under this
Section 11 and payable as a result of loss or damage to the Equipment shall be
applied as set forth in Section 10.2 above. Upon the occurrence of an Event of
Default as defined in Section 16 below, Lessee hereby irrevocably appoints
Lessor as its attorney-in-fact, which power shall be deemed coupled with an
interest, to make claim for, receive payment of, execute and endorse all
documents, checks or drafts received in payment for loss or damage under any
insurance policies required by this Section 11.

         11.4     Notwithstanding anything herein, Lessor shall not be under any
duty to examine any evidence of insurance furnished hereunder, or to ascertain
the existence of any policy or coverage, or to advise Lessee of any failure to
comply with the provisions of this Section 11.

         12.      Surrender to Lessor.

         12.1     Lessee shall advise Lessor in writing at least ninety (90)
days prior to the expiration of the Initial Term or any Extended Term of its
intent to surrender the Equipment. Upon receipt of such notice, Lessor shall be
authorized to demonstrate the Equipment in operation to potential buyers or
lessees during the normal business hours of Lessee, provided that Lessor has
given reasonable notice to Lessee prior to any such visit.

         12.2     If Lessee elects to surrender the Equipment or, alternatively,
upon any other termination of the Lease Schedule, Lessee shall immediately
surrender the Equipment to Lessor by assembling and delivering the Equipment to
a place or places, as Lessor may designate, within the continental United
States. The shipment of the Equipment shall be conducted in accordance with the
manufacturer's

<PAGE>   8

recommendations or, in the absence of such recommendations, in accordance with
generally accepted industry practices for equipment similar to the Equipment.
All costs of deinstalling, preparation for shipment, and shipping shall be borne
by Lessee.

         12.3     Upon surrender, the Equipment shall be in good repair, and
working order, in compliance with the manufacturer's recommended tolerances for
operation and performance in all material respects, in the same condition and
appearance as when received (reasonable wear and tear excepted), and with all
engineering and safety changes prescribed by the manufacturer or maintenance
organization incorporated therein. The Equipment shall be complete, with all
parts and pieces and all operating instructions, maintenance documentation,
service manuals and other historical records; shall be capable of being
immediately assembled and operated by a third party for its originally intended
purpose; and shall be in compliance with all applicable laws, regulations and
industry standards, without further repair, replacement of parts, alteration or
improvement. Lessee shall, in a workmanlike manner and without damage to the
Equipment, remove all Lessee-supplied decals, logos, insignias, numbers, and any
similar identifications or markings from the Equipment. In conjunction with its
surrender of the Equipment, Lessee shall provide Lessor with a complete and
reasonably detailed inventory of the Equipment, including model numbers, serial
numbers, and a description of all modifications (if any) made to the Equipment
during the term of the Lease.

         12.4     In the event that Lessee fails to comply with the provisions
of this Section 12, the Initial Term or any Extended Term shall be extended on a
day-to-day basis until Lessee shall have complied with such provisions. During
such period, Lessee shall continue paying a per diem rental equal to the Daily
Rent as set forth on the applicable Lease Schedule for each day of such holdover
period until such time as the Equipment shall have been surrendered in
accordance with this Section 12; provided, however, that if Lessor so notifies
Lessee, Lessee shall surrender the Equipment prior to full compliance with this
Section 12 (but not before the expiration of the Initial Term or any Extended
Term). In such case, Lessee shall be liable for (i) the per diem rental set
forth above through the date of actual surrender, plus (ii) any cost or expense
incurred by Lessor in placing the Equipment in the condition required by this
Section 12, both of which amounts shall be deemed additional rent payments due
under the applicable Lease Schedule.

         13.      Fair Market Value Purchase Option. Lessor hereby grants to
Lessee the option to purchase all, but not less than all, Equipment set forth on
any Lease Schedule at the expiration of the applicable Initial Term or Extended
Term. Lessee shall notify Lessor in writing at least ninety (90) days prior to
the expiration of the Initial Term or any Extended Term of its intent to
exercise its option to purchase the Equipment on the date of such expiration,
which notice shall be final and irrevocable. Any such purchase shall be for cash
in an amount equal to the then fair market value of such Equipment, as
determined in good faith by Lessor (the "Fair Market Value"). This purchase
option may be exercised by Lessee, provided that no Event of Default, as defined
in Section 16 below, has occurred and is continuing. Upon payment of the Fair
Market Value by Lessee to Lessor, Lessor shall transfer title to the Equipment
to Lessee "AS IS, WHERE IS", "WITH ALL FAULTS", and WITH NO WARRANTIES
WHATSOEVER, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR USE OR FOR ANY PARTICULAR PURPOSE.

         14.      Financial Statements. Lessee shall annually, within ninety
(90) days after the close of its fiscal year, furnish to Lessor financial
statements of Lessee, including a balance sheet as of the close of such year and
statements of income and retained earnings for such year, prepared in accordance
with generally accepted accounting principles, consistently applied from year to
year, and certified by

<PAGE>   9

independent public accountants for Lessee reasonably acceptable to Lessor. If
requested by Lessor, Lessee shall also provide quarterly financial statements of
Lessee, similarly prepared for each of the first three quarters of each fiscal
year, certified (subject to normal year-end audit adjustments) by the chief
financial officer of Lessee and furnished to Lessor within forty-five (45) days
following the end of each quarter, and such other financial information as may
be reasonably requested by Lessor.

         15.      Delayed Payment Charge. Lessee shall pay to Lessor interest
upon the amount of any Daily Rent, Periodic Rent or other sums not paid by
Lessee when due and owing under the applicable Lease Schedule, from the due date
thereof until paid, at the rate of one and one half percent (1.5%) per month,
but if such rate violates applicable law, then at the maximum rate of interest
allowed by such law.

         16.      Default.

         16.1     The occurrence of any of the following events shall constitute
an event of default ("Event of Default") under all Lease Schedules to which
Lessor is a party:

                  (a) Lessee fails to pay any Daily Rent or any Periodic Rent
         when due, and such failure to pay continues for five (5) consecutive
         days following written notice from Lessor; or

                  (b) Lessee fails to pay any other sum required hereunder, and
         such failure continues for a period of ten (10) days following the
         giving of written notice by Lessor; or

                  (c) Lessee fails to maintain the insurance as required by
         Section 11 above; or

                  (d) Lessee violates or fails to perform any other term,
         covenant or condition of this Master Agreement or any Lease Schedule or
         any other document, agreement or instrument executed pursuant hereto or
         in connection herewith, which failure is not cured within thirty (30)
         days after the giving of written notice by Lessor; provided, however,
         that Lessor need not give any written notice in the event of a default
         in the performance of any financial covenants undertaken by Lessee in
         connection herewith; or

                  (e) Lessee ceases to exist or terminates its independent
         operations by reason of any discontinuance, dissolution, liquidation,
         or sale of substantially all of its assets in one transaction or a
         series of related transactions, or otherwise ceases doing business as a
         going concern; or

                  (f) Lessee merges into or with any corporation or other legal
         entity, and Lessee is not the surviving corporation or the surviving
         legal entity; or

                  (g) Lessee (i) applies for or consents to the appointment of,
         or the taking of possession by, a receiver, custodian, trustee,
         liquidator or similar official for itself or for all or a substantial
         part of its property, (ii) is generally not paying its debts as such
         debts become due, (iii) makes a general assignment for the benefit of
         its creditors, (iv) commences a voluntary case under the United States
         Bankruptcy Code, as now or hereafter in effect, seeking liquidation,
         reorganization or other relief with respect to itself or its debts, (v)
         files a petition seeking to take advantage of any other law providing
         for the relief of debtors, (vi) takes any action under the laws of its
         jurisdiction of incorporation or organization similar to any of the
         foregoing, (vii) convenes a meeting of its creditors, or (viii) takes
         any corporate action for the purpose of effecting any of the foregoing;
         or

<PAGE>   10

                  (h) A proceeding or case is commenced, without the application
         or consent of Lessee, in any court of competent jurisdiction, seeking
         (i) the liquidation, reorganization, dissolution or winding up of
         Lessee or composition or readjustment of the debts of Lessee, (ii) the
         appointment of a trustee, receiver, custodian, liquidator or similar
         official for Lessee or for all or any substantial part of its assets,
         or (iii) similar relief with respect to Lessee under any law providing
         for the relief of debtors, and such proceeding or case under any of the
         foregoing subsections shall continue undismissed, or unstayed and in
         effect, for a period of sixty (60) days; or an order for relief is
         entered with respect to Lessee in an involuntary case under the United
         States Bankruptcy Code, as now or hereafter in effect, or an action
         under the laws of the jurisdiction of incorporation or organization of
         Lessee, similar to any of the foregoing, is taken with respect to
         Lessee without its application or consent and shall continue unstayed
         and in effect for period of sixty (60) days; or

                  (i) Lessee makes any representation or warranty herein or in
         any statement or certificate at any time given in writing pursuant to
         or in connection with this Master Agreement or any Lease Schedule,
         which is false or misleading in any material respect; or

                  (j) Lessee defaults under any promissory note, credit
         agreement, loan agreement, conditional sales contract, guaranty, lease,
         indenture, bond, debenture or other material obligation whatsoever, and
         a party thereto or a holder thereof is entitled to accelerate the
         obligations of Lessee thereunder; or Lessee defaults in meeting any of
         its material trade, tax or other current obligations as they mature,
         unless such obligations are being contested diligently and in good
         faith; or

                  (k) Any party to any guaranty, letter of credit, subordination
         or credit agreement or other undertaking, given for the benefit of
         Lessor and obtained in connection with this Master Agreement or Lease
         Schedule, breaches, fails to continue, contests, or purports to
         terminate or to disclaim such guaranty, letter of credit, subordination
         or credit agreement or other undertaking; or such guaranty, letter of
         credit, subordination agreement or other undertaking becomes
         unenforceable while any obligation or any Lease Schedule remains
         outstanding; or a guarantor of this Master Agreement or any Lease
         Schedule shall die, cease to exist or terminate its independent
         operations; or any event or condition set forth in subsections (d),
         (e), (f), (g), (h), (i) or (j) of this Section 16.1 shall occur with
         respect to any guarantor or other person responsible, in whole or in
         part, for payment or performance of this Master Agreement or any Lease
         Schedule.

         16.2     At the option of Lessor, the occurrence of an Event of Default
with respect to any Lease Schedule shall, without further act or declaration by
Lessor, constitute an Event of Default with respect to any other Lease Schedule
to which Lessor is then a party. If Lessor shall have made an assignment of any
Lease Schedule pursuant to Section 19 below, the assignee of Lessor shall be
deemed to be Lessor and the party to such assigned Lease Schedule or Lease
Schedules for purposes of this Section 16.

         16.3     No waiver by Lessor of any Event of Default shall constitute a
waiver of any other Event of Default or of the same Event of Default at any
other time.

         17.      Remedies.

         17.1     Upon the occurrence of an Event of Default, Lessor, at its
sole option, upon its declaration, and to the extent not inconsistent with
applicable law, may exercise any one or more of the following remedies:

<PAGE>   11

                  (a) Lessor may cancel any or all Lease Schedules, whereupon
         all rights of Lessee to the quiet enjoyment and use of the Equipment
         shall cease;

                  (b) Whether or not any or all Lease Schedules are cancelled,
         Lessor may cause Lessee, at the sole cost and expense of Lessee, to
         cease immediately all use and operation of the Equipment and return any
         or all of the Equipment promptly to the possession of Lessor in good
         repair and working order, reasonable wear and tear excepted, and
         otherwise in the condition required by Section 12.3 hereof. Lessor, at
         its sole option and through its employees, agents or contractors, may
         peaceably enter upon the premises where the Equipment is located and
         take immediate possession of and remove the Equipment, all without
         liability to Lessor, its employees, agents or contractors for such
         entry. LESSEE HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
         ANY AND ALL RIGHTS TO NOTICE AND/OR HEARING PRIOR TO THE REPOSSESSION
         OR REPLEVIN OF THE EQUIPMENT BY LESSOR, ITS EMPLOYEES, AGENTS OR
         CONTRACTORS;

                  (c) Lessor may proceed by court action to enforce performance
         by Lessee of any or all of the Lease Schedules or pursue any other
         remedy Lessor may have hereunder, at law, in equity or under any
         applicable statute or law including, without limitation, the Uniform
         Commercial Code as adopted by The Commonwealth of Massachusetts, and
         recover such other actual damages as may be incurred by Lessor;

                  (d) Lessor may recover from Lessee damages, not as a penalty
         but as liquidation for all purposes and without limitation of any other
         amounts due from Lessee under any or all of the Lease Schedules, in an
         amount equal to the sum of (i) any unpaid Daily Rents and/or Periodic
         Rents due and payable for periods prior to the repossession of the
         Equipment by Lessor plus any interest due thereon pursuant to Section
         15 above, (ii) the present value of all future Periodic Rents required
         to be paid over the remaining Initial Term or any Extended Term after
         repossession of the Equipment by Lessor, determined by discounting such
         future Periodic Rents to the date of payment by Lessee at a rate of
         five percent (5%) per annum; and (iii) all costs and expenses incurred
         in searching for, taking, removing, storing, repairing, restoring,
         refurbishing and leasing or selling such Equipment; and

                  (e) Lessor may sell, lease or otherwise dispose of any or all
         of the Equipment, whether or not in the possession of Lessor, at public
         or private sale and, in the case of a private sale, with or without
         notice to Lessee, which notice is hereby expressly waived by Lessee, to
         the extent permitted by and not inconsistent with applicable law.
         Lessor may be the purchaser at any such sale. Lessor may sell, lease or
         dispose of the Equipment in such order and manner as Lessor may
         determine. Lessor shall then apply against the obligations of Lessee
         hereunder the net proceeds of such sale, lease (provided, however, that
         the net proceeds of any such lease shall be solely those rentals
         applicable to that period of the new lease term which is comparable to
         the then remaining term of the Lease Schedule) or other disposition,
         after deducting therefrom (i) the present value of the residual value
         of the Equipment at the expiration of the Initial Term, which is
         anticipated by Lessor and Lessee to be not less than twenty percent
         (20%) of the Acquisition Cost, such present value to be determined by
         discounting the anticipated residual value to the date of sale, lease
         or other disposition at a rate of five percent (5%) per annum, and (ii)
         all costs incurred by Lessor in connection with such sale, lease or
         other disposition including, but not limited to, costs of
         transportation, repossession, storage, refurbishing, advertising or
         other fees. Lessee shall remain liable for any deficiency, and any
         excess of such proceeds over the total

<PAGE>   12

          obligations owed by Lessee shall be retained by Lessor. If any notice
          of such sale, lease or other disposition of the Equipment is required
          by applicable law, ten (10) days written notice to Lessee shall be
          deemed reasonable.

         17.2     Upon the occurrence of an Event of Default described in
subsections 16.1(g) and (h), the remedy set forth in subsection 17.1(d) shall be
deemed to have been exercised immediately and automatically without any act or
declaration of Lessor, and the liquidated damages described therein shall be
immediately due and payable.

         17.3     Lessee shall pay all costs and expenses, including but not
limited to reasonable legal fees incurred by Lessor, arising out of or in
connection with any Event of Default under any Lease Schedule. Lessee shall also
be liable for any amounts due and payable to Lessor under any other provision of
any Lease Schedule or this Master Agreement, including but not limited to
amounts due and payable under Section 18 below.

         17.4     No failure on the part of Lessor to exercise, and no delay in
exercising, any right or remedy hereunder shall operate as a waiver thereof. No
single or partial exercise of any right or remedy hereunder shall preclude any
other or further exercise thereof or the exercise of any other right or remedy.
Each right and remedy provided hereunder is cumulative and not exclusive of any
other right or remedy including, without limitation, any right or remedy
available to Lessor at law, by statute or in equity.

         18.      Tax Indemnification.

         18.1     Lessee represents and warrants that the Equipment is and will
remain, during the entire Initial Term and any Extended Term, property used in a
trade or business or for the production of income within the meaning of Section
167 of the Internal Revenue Code of 1986, as amended ("Code"). Lessee further
acknowledges and agrees that, pursuant to the Code, Lessor or its affiliated
group, as defined in Section 1504 of the Code ("Affiliated Group"), (i) shall be
entitled to deductions for the recovery of the Acquisition Cost of the Equipment
over the recovery period as set forth in the applicable Lease Schedule, using
the Modified Accelerated Cost Recovery System as provided by Section 168(b)(1)
of the Code ("MACRS Deductions") and (ii) shall not be required to include in
its gross income for Federal income tax purposes any amount derived from the
cost of any alteration, addition, improvement, modification, replacement, or
substitution of the Equipment or from any refund or credit from the manufacturer
or supplier of the Equipment or any foreign source income.

         18.2     If as a result of any reason or circumstance whatsoever,
except as specifically set forth in Section 18.3 below, Lessor or its Affiliated
Group shall not be entitled to, shall not be allowed, shall suffer recapture of
or shall lose any MACRS Deductions, or shall be required to include in gross
income such amounts as described in Section 18.1 above, then Lessee shall pay to
Lessor, upon demand, a sum to be computed by Lessor in the following manner:
such sum, after deduction of all Federal, state and local income taxes payable
by Lessor as a result of the receipt of such sum, shall be sufficient to restore
Lessor or its Affiliated Group to substantially the same position, on an
after-tax basis, as it would have been in but for the loss of such MACRS
Deductions or the inclusion of such additional amounts in gross income. In
making its computation, Lessor or its Affiliated Group shall consider, but shall
not be limited to, the following factors: (i) the amounts and timing of any net
loss of tax benefits resulting from any such lack of entitlement to or loss,
recapture, or disallowance of MACRS Deductions or the inclusion of such
additional amounts in gross income, but offset by any tax benefits derived from
any depreciation or other capital recovery deductions or exclusions from income
allowed to Lessor or its Affiliated Group

<PAGE>   13

with respect to the same Equipment, or credits which may be available as a
result of such additional amounts required to be included in the gross income of
Lessor and its Affiliated Group; (ii) penalties, interest or other charges
imposed; (iii) differences in tax years involved; and (iv) the time value of
money at a reasonable rate per annum determined, in good faith, by Lessor. For
purposes of computation only, the amount of indemnification payments hereunder
shall be calculated on the assumption that Lessor and its Affiliated Group have
or will have, in all tax years involved, sufficient taxable income and the tax
liability to realize all tax benefits and incur all losses of tax benefits at
the highest marginal Federal corporate income tax rate in each year. Upon
request, Lessor shall provide Lessee with the methods of computation used in
determining any sum that may be due and payable by Lessee under this Section 18.
Lessor's computation of any sum that may be due and payable by Lessee under this
Section 18 shall be binding and conclusive on the parties hereto in the absence
of manifest error.

         18.3     Lessee shall not be obligated to pay any sums required under
this Section 18 in the event that lack of entitlement to, or loss, recapture or
disallowance of any MACRS Deductions or the inclusion of such additional amounts
in gross income results from one or more of the following events: (i) a
disqualifying disposition due to the sale of the Equipment by Lessor when no
Event of Default, as defined in Section 16 above, has occurred, (ii) a failure
of Lessor or its Affiliated Group to timely claim any MACRS Deductions for the
Equipment in its tax return, and/or (iii) the fact that Lessor or its Affiliated
Group does not have, in any taxable year or years, sufficient taxable income or
tax liability to realize the benefit of any MACRS Deductions that are otherwise
allowable to Lessor or its Affiliated Group.

         18.4     The representations, obligations and indemnities of Lessee
under this Section 18 shall continue in full force and effect, and shall
survive, notwithstanding the expiration or other termination of this Master
Agreement or any Lease Schedules.

         19.      Assignment; Sublease.

         19.1     LESSOR MAY SELL, ASSIGN OR OTHERWISE TRANSFER ALL OR ANY PART
OF ITS RIGHT, TITLE AND INTEREST IN AND TO THIS MASTER AGREEMENT, THE EQUIPMENT
AND/OR ANY LEASE SCHEDULE TO A THIRD-PARTY ASSIGNEE, SUBJECT TO THE TERMS AND
CONDITIONS OF ANY LEASE SCHEDULE, INCLUDING BUT NOT LIMITED TO, THE RIGHT TO THE
QUIET ENJOYMENT OF THE EQUIPMENT BY LESSEE AS SET FORTH IN SECTION 7.1 ABOVE.
Such assignee shall assume all of the rights and obligations of Lessor under the
applicable Lease Schedule from and after the effective date of such assignment,
and shall relieve Lessor therefrom. Lessee hereby waives and agrees not to
assert against any such assignee any defense, setoff, recoupment, claim or
counterclaim which Lessee has or may at any time hereafter have against Lessor,
or any person, other than such assignee, for any reason whatsoever. In no event,
shall any of the rights or obligations of Lessee change under an assigned Lease
Schedule. In addition, any assignment by Lessor shall not substantially increase
any burden or risk to Lessee. Upon any such assignment, all references to Lessor
herein shall mean such assignee. Notwithstanding any such sale, assignment or
transfer, Lessee's obligations hereunder shall remain absolute and unconditional
including, without limitation, as set forth in Section 7.2 above.

         19.2     Lessor may also pledge, mortgage or grant a security interest
in the Equipment and assign any Lease Schedule as collateral. The assignee
thereof shall be entitled to all the rights of Lessor under the Lease Schedule.
If such assignee assumes all of the obligations of Lessor under the Lease
Schedule, Lessor shall be relieved of such obligation, and assignee shall be
deemed to be Lessor. Lessee hereby waives and agrees not to assert against any
such assignee any defense, setoff, recoupment, claim

<PAGE>   14

or counterclaim which Lessee has or may at any time hereafter have against
Lessor, or any person, other than such assignee, for any reason whatsoever. Any
pledge, mortgage or grant of security interest in the Equipment or assignment of
a Lease Schedule shall be subject to the terms and conditions hereof including,
but not limited to, the right to the quiet enjoyment of the Equipment by Lessee
as set forth in Section 7.1 above. Lessee, by reason of such pledge, mortgage,
grant of security interest or collateral assignment, shall not be relieved of
any of its obligations hereunder, which shall remain absolute and unconditional
including, without limitation, as set forth in Section 7.2 above.

         19.3     Upon the written request of Lessor, Lessee shall provide
written acknowledgment to any pledgee, mortgagee, lienholder, assignee,
transferee or purchaser of any Lease Schedule of the obligations of Lessee under
the Lease Schedule that is pledged, mortgaged, encumbered, assigned transferred
or purchased.

         19.4     LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, SUBLEASE, CONVEY OR
PLEDGE ANY OF ITS INTEREST IN THIS MASTER AGREEMENT ANY LEASE SCHEDULE OR ANY OF
THE EQUIPMENT, WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR. Any such sale,
transfer, assignment, sublease, conveyance or pledge, whether by operation of
law or otherwise, without the prior written consent of Lessor, shall be void.

         19.5     Subject to the foregoing, this Master Agreement and each Lease
Schedule inure to the benefit of, and are binding upon, the successors and
permitted assigns of the parties hereto and thereto, as the case may be.

         20.      Optional Performance By Lessor. If an Event of Default, as
defined in Section 16 above, or an event or condition which with the giving of
notice or lapse of time, or both, would become an Event of Default occurs and is
continuing, Lessor in its sole discretion may pay or perform any obligation of
Lessee under this Master Agreement or any Lease Schedule in whole or in part,
without thereby becoming obligated to pay or to perform the same on any other
occasion or to pay any other obligation of Lessee. Any payment or performance by
Lessor shall not be deemed to cure any Event of Default or any such event or
condition hereunder. Upon such payment or performance by Lessor, Lessee shall
pay forthwith to Lessor, on demand, the amount of such payment or an amount
equal to all costs and expenses of such performance, as well as any delayed
payment charges on such amounts as set forth in Section 15 above.

         21.      Representations and Warranties of Lessee.

         21.1     Lessee represents and warrants that (i) there are no pending
actions or proceedings to which Lessee is a party, and there are no threatened
actions or proceedings of which Lessee has knowledge, before any court,
arbitrator or administrative agency, which, either individually or in the
aggregate, would have a Material Adverse Effect on Lessee; Lessee is not in
default under any obligation for borrowed money, for the deferred purchase price
of property or any lease agreement which, either individually or in the
aggregate, would have a Material Adverse Effect on Lessee; (iii) under the laws
of the state(s) in which the Equipment is to be located, the Equipment consists
solely of personal property and not fixtures; (iv) the financial statements of
Lessee (copies of which have been furnished to Lessor) have been prepared in
accordance with generally accepted accounting principles consistently applied,
and fairly present the financial condition of Lessee and the results of its
operations as of the date of and for the period covered by such statements, and
since the date of such statements there has been no material adverse change in
such conditions or operations; (v) the address of Lessee set forth above is the
chief place of business and chief executive office of Lessee; and Lessee does
not conduct business under

<PAGE>   15

a trade, assumed or fictitious name;(vi) Lessee has reviewed the areas within
its business and operations which could be adversely affected by, and has
developed or is developing a program to address on a timely basis, the "Year
2000 Problem", that is, the risk that computer applications used by Lessee may
be unable to recognize and perform properly date-sensitive functions involving
certain dates prior to and any date on or after December 31, 1999), and have
made related appropriate inquiry of material suppliers and vendors, based on
such review and program, Lessee believes that the "Year 2000 Problem" will not
have a Material Adverse Effect on Lessee; (vii) from time to time, at the
request of Lessor, Lessee shall provide to Lessor such updated information or
documentation as is requested regarding the status of its efforts to address the
Year 2000 Problem. For purposes of this Section 21.1, "Material Adverse Effect"
shall mean (1) a materially adverse effect on the business, condition (financial
or otherwise), operations, performance or properties of Lessee, or (2) a
material impairment of the ability of Lessee to perform its obligations under or
to remain in compliance with the Master Agreement and any Lease Schedule.

                  21.2     Lessee warrants and agrees that this Master Agreement
and any Lease Schedule and the performance by Lessee of all of its obligations
hereunder and thereunder have been duly authorized and do not and will not
conflict with any provision of the charter or bylaws of Lessee or of any
agreement, indenture, lease or other instrument, or any court, administrative or
other governmental order or decree, to which Lessee is a party or by which
Lessee or any of its property is or may be bound. Lessee warrants and agrees
that this Master Agreement and any Lease Schedule do not and will not require
any governmental authorization, approval, license or consent except, those which
have been duly obtained, and will remain in effect during the entire Initial
Term and any Extended Term.

         22.       Miscellaneous.

         22.1     The section headings are inserted herein for convenience of
reference and are not part of and shall not affect the meaning or interpretation
of this Master Agreement or any Lease Schedule.

         22.2     Any provision of the Master Agreement or any Lease Schedule
which is unenforceable in whole or in part in any jurisdiction, or under
particular circumstances, shall, as to such jurisdiction or circumstances, be
ineffective only to the extent of such unenforceability without invalidating any
remaining part or other provision hereof, and shall not be determinative of
enforceability in any other jurisdiction or under any other circumstances. The
validity and interpretation of the Master Agreement and any Lease Schedule and
the rights and obligations of the parties hereto shall be governed in all
respects by the laws of The Commonwealth of Massachusetts without giving effect
to the conflicts of laws provisions thereof. Time is of the essence with respect
to each obligation of the Lessee pursuant to this Master Agreement, any Lease
Schedule and any riders or amendments hereto or thereto.

         22.3     Without derogation of any disclaimer or limitation otherwise
set forth in the Master Agreement or any Lease Schedule, any action by Lessee
against Lessor for any default by Lessor under the Master Agreement or any Lease
Schedule, including breach of warranty or indemnity, shall be commenced within
one (1) year after any such cause of action accrues.

         22.4     LESSEE (BY ITS ACCEPTANCE HEREOF) AGREES THAT NEITHER IT, NOR
ANY PERMITTED ASSIGNEE OR SUCCESSOR OF LESSEE SHALL (A) SEEK A JURY TRIAL IN ANY
LAWSUIT, PROCEEDING, COUNTERCLAIM, OR ANY OTHER ACTION BASED UPON, OR ARISING
OUT OF, THIS MASTER AGREEMENT, ANY LEASE SCHEDULE, ANY RELATED AGREEMENTS, THE
EQUIPMENT, OR THE DEALINGS OR THE RELATIONSHIP BETWEEN OR AMONG LESSEE AND
LESSOR AND LESSOR'S SUCCESSORS AND ASSIGNS, OR (B) SEEK TO CONSOLIDATE ANY SUCH
ACTION WITH

<PAGE>   16

ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. LESSEE
HAS READ AND FULLY UNDERSTANDS THE PROVISIONS OF THIS PARAGRAPH, AND THESE
PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. LESSOR HAS NOT AGREED WITH OR
REPRESENTED TO LESSEE THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY
ENFORCED IN ALL INSTANCES. Lessee further agrees that any suit based upon or
arising out of the Master Agreement, any Lease Schedule, any related agreements,
the Equipment, or the dealings or the relationship between or among Lessee and
Lessor and Lessor's successors and assigns may be brought in the courts of The
Commonwealth of Massachusetts or any Federal court sitting therein and consents
to the non-exclusive jurisdiction of such court and to service of process in any
such suit being made upon Lessee by mail in the manner specified in Section 22.6
hereof. Lessee hereby waives any objection that it may now or hereafter have to
the venue of any such suit or any such court, or that such suit was brought in
an inconvenient forum.

         22.5     Each Lease Schedule, including the terms of this Master
Agreement expressly incorporated therein, any riders, schedules or amendments,
and other documents now or hereafter attached thereto or executed in connection
therewith, constitutes the entire agreement between Lessor and Lessee regarding
the Equipment and the matters addressed thereby. Lessor and Lessee agree that
neither the Master Agreement nor any Lease Schedule shall be amended, altered or
changed except by a written agreement signed by the parties hereto. LESSEE
ACKNOWLEDGES THAT THERE HAVE BEEN NO REPRESENTATIONS, EXPRESS OR IMPLIED, BY
LESSOR OTHER THAN AS SET FORTH HEREIN, AND LESSEE EXPRESSLY CONFIRMS THAT IT HAS
NOT RELIED UPON ANY REPRESENTATIONS BY LESSOR, EXCEPT THOSE SET FORTH HEREIN, AS
A BASIS FOR ENTERING INTO THIS MASTER AGREEMENT OR ANY LEASE SCHEDULE.

         22.6     Any notice required to be given by Lessee or Lessor hereunder
shall be deemed adequately given if sent by registered or certified mail, return
receipt requested, or by overnight courier via a nationally recognized provider
of such services, to the other party at its address stated herein or at such
other place as either party may designate in writing to the other. Such notice
shall be effective upon receipt.

         22.7     Lessee agrees to execute and deliver such additional documents
and to perform such further acts as may be reasonably requested by Lessor in
order to carry out and effectuate the purposes of the Master Agreement and any
Lease Schedule. Upon the written request of Lessor, Lessee further agrees to
execute any instrument necessary for the filing or recording of this Master
Agreement or any Lease Schedule or to confirm the ownership of the Equipment by
Lessor, and to reimburse Lessor for costs incurred thereby, or any other costs
reasonably incurred by Lessor either in giving notice of its interest in the
Equipment or determining the existence of any liens or encumbrances on the
Equipment. Lessor is hereby authorized to insert in any Lease Schedule the
serial numbers of the Equipment and other identifying marks or similar
information and to sign, on behalf of Lessee, any Uniform Commercial Code
financing statements relating to the Equipment under the applicable Lease
Schedule.

         22.8     Neither the Master Agreement nor any Lease Schedule may be
canceled or terminated except as expressly provided herein.

         22.9     Whenever the context of this Master Agreement or any Lease
Schedule requires, the singular includes the plural and the plural includes the
singular. Whenever the word Lessor is used herein, it includes all assignees and
successors in interest of Lessor. If more than one Lessee is named herein, the
liability of each shall be joint and several.

<PAGE>   17

         22.10    All agreements, indemnities, representations and warranties of
Lessee and all rights and remedies of Lessor shall survive the expiration or
other termination of this Master Agreement and the applicable Lease Schedule,
whether or not expressly provided herein.

         22.11    Any waiver of any power, right, remedy or privilege of Lessor
hereunder shall not be effective unless in writing signed by Lessor.

         22.12    This Master Agreement or any Lease Schedule may be executed in
one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, Lessor and Lessee, each by its duly authorized
officer or agent, have duly executed and delivered this Master Agreement, which
is intended to take effect as a sealed instrument, as of the day and year first
written above.

Accepted at Boston, Massachusetts
BANCBOSTON LEASING INC.

By:                               By: /s/ John B. Mullin
   ---------------------------       ---------------------------

Print Name:                       Print Name:  John B. Mullin

Title:                            Title: CFO
      ------------------------          -------------------------

                                  Federal Tax ID Number:
                                                        ------------------------

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