Document:

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                                                                   EXHIBIT 10.13

                      EQUIPMENT LOAN AND SECURITY AGREEMENT

                                                   Dated as of December 13, 2001

                                  by and among

                               GATX VENTURES, INC.
                              as agent and a lender

         THIRD COAST CAPITAL, a division of DVI Financial Services Inc.
                                   as a lender

                                       And
                                  EGENERA, INC.
                             a Delaware corporation
                                165 Forest Street
                               Marlboro, MA 01752

                                   as borrower

                            CREDIT AMOUNT: $3,000,000

<TABLE>
<CAPTION>
                                             Commitment          Commitment Percentage
                                             ----------          ---------------------
<S>                                          <C>                 <C>
GATX Ventures, Inc.:                         $2,000,000                  66.67%
Third Coast Capital, a division of
DVI Financial Services Inc.:                 $1,000,000                  33.33%
</TABLE>

                           Repayment Period: 36 months

                        Treasury Note Maturity: 36 months

                          Loan Margin: 900 basis points

                  Commitment Termination Date: April 30, 2002

                    Final Payment Percentage: Not applicable.

      The terms and information set forth on this cover page are a part of the
attached Equipment Loan and Security Agreement, dated as of the date first
written above (this "Agreement"), entered into by and among GATX Ventures, Inc.
("GV"), in its individual capacity, Third Coast Capital, a division of DVI
Financial Services Inc. ("TCC"), in its individual capacity, (each individually
a "Lender" and collectively, "Lenders"), GV as agent, not individually, and
Egenera, Inc. ("Borrower"). The terms and conditions of this Agreement agreed to
between the parties hereto are as follows:

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                                    AGREEMENT

      1. Definitions and Construction.

            1.1 Definitions. As used in this Agreement, the following terms
shall have the following meanings:

      "Affiliate" means any Person that owns or controls directly or indirectly
ten percent (10%) or more of the stock of another entity, any Person that
controls or is controlled by or is under common control with such Persons or any
Affiliate of such Persons or each of such Person's officers, directors, joint
venturers or partners.

      "Agent" means GV, not in its individual capacity, but solely in its
capacity as agent on behalf of and for the benefit of Lenders, and any successor
agent.

      "Agent's Expenses" means all reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with the
preparation, negotiation, documentation, administration and funding of the Loan
Documents; and Agent's reasonable attorneys' fees, costs and expenses incurred
in amending, modifying, enforcing or defending the Loan Documents (including
fees and expenses of appeal or review), including the exercise of any rights or
remedies afforded hereunder or under applicable law, whether or not suit is
brought, whether before or after bankruptcy or insolvency, including without
limitation, all fees and costs incurred by Agent in connection with Agent's
enforcement of its rights in a bankruptcy or insolvency proceeding filed by or
against Borrower or its Property.

      "Agreement" means this Equipment Loan and Security Agreement, as the same
may from time to time be amended or supplemented.

      "Basic Rate" means, as of the relevant Funding Date, the per annum rate of
interest (based on a year of twelve 30-day months) equal to the sum of (a) the
U.S. Treasury note yield to maturity for a term equal to the Treasury Note
Maturity as quoted in The Wall Street Journal on the date the Loan Agreement
Supplement is prepared (or in the event that such rate is no longer published in
the Wall Street Journal, in such other publication that provides a quotation of
such rate), plus (b) the Loan Margin. Notwithstanding the foregoing, the Basic
Rate shall not exceed the highest rate permitted by applicable law to be charged
on commercial loans.

      "Borrower" has the meaning given to such term on the cover page hereof.

      "Borrower's Next Qualified Financing" means the next sale or related group
of sales by Borrower of its Equity Securities resulting in gross proceeds to
Borrower of at least Ten Million Dollars ($10,000,000).

      "Business Day" means any day that is not a Saturday, Sunday, or other day
on which banking institutions are authorized or required to close in California
or Massachusetts.

      "Claim" has the meaning given to such term in Section 10.3.

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      "Code" means the Uniform Commercial Code as adopted and in effect in the
State of California, as amended from time to time; provided that if by reason of
mandatory provisions of law, the creation and/or perfection or the effect of
perfection or non-perfection of the security interest in any Collateral is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than California, the term "Code" shall also mean the Uniform Commercial Code as
in effect from time to time in such jurisdiction for purposes of the provisions
hereof relating to such creation, perfection or effect of perfection or
non-perfection.

      "Collateral" has the meaning given to such term in Section 4.1, including,
without limitation, all Financed Equipment listed in any Loan Agreement
Supplement executed from time to time pursuant to Section 4.2.

      "Commitment Termination Date" means the date following such term on the
cover page of this Agreement.

      "Commitment" means, with respect to each Lender, the amount set forth on
the cover page of this Agreement under the column titled "Commitment" and
"Commitments" means all such amounts collectively.

      "Commitment Percentage" means with respect to each Lender, the percentage
set forth on the cover page of this Agreement under the column titled
"Commitment Percentage."

      "Credit Amount" means the amount set forth following such term on the
cover page of this Agreement.

      "Default" means any event which with the passing of time or the giving of
notice or both would become an Event of Default hereunder.

      "Default Rate" means the per annum rate of interest equal to five percent
(5%) over the Basic Rate, but such rate shall in no event be more than the
highest rate permitted by applicable law to be charged on commercial loans.

      "Disclosure Schedule" means Exhibit A attached hereto.

      "Eligible Equipment" means, to the extent reasonably acceptable to
Lenders, Equipment (excluding any and all freight, installation, taxes and other
soft costs relating to such Equipment) consisting of computer equipment, office
equipment, engineer lab equipment, test equipment and furnishings delivered to
Borrower by the manufacturer or vendor not more than ninety (90) days prior to
the Funding Date of the Loan relating to such Equipment, as evidenced by the
invoice date of such Equipment; provided that for the first Loan only, Eligible
Equipment may include Equipment delivered to Borrower at any time on or after
March 1, 2001.

      "Environmental Laws" means all foreign, federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes, together
with all administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental
Authorities, in each case relating to environmental, health, safety and land use
matters, including the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control
Act of 1972, the Solid Waste

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Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic
Substances Control Act and the Emergency Planning and Community Right-to-Know
Act.

      "Equipment" has the meaning given to such term in Section 4.1.

      "Equity Securities" of any Person means (a) all common stock, preferred
stock, participations, shares, membership interests, partnership interests or
other equity interests in and of such Person (regardless of how designated and
whether or not voting or non-voting) and (b) all warrants, options and other
rights to acquire any of the foregoing.

      "Event of Default" has the meaning given to such term in Section 8.

      "Event of Loss" has the meaning given to such term in Section 6.10.

      "Facility Fee" has the meaning given to such term in Section 2.7.

      "Financed Equipment" has the meaning given to such term in Annex A to any
Loan Agreement Supplement, as amended or supplemented from time to time.

      "Funding Date" means any date on which a Loan is made to or on account of
Borrower under this Agreement.

      "GAAP" means generally accepted accounting principles as in effect in the
United States of America from time to time, consistently applied.

      "Good Faith Deposit" has the meaning given to such term in Section 2.7.

      "Governmental Authority" means (a) any federal, state, county, municipal
or foreign government, or political subdivision thereof, (b) any governmental or
quasi-governmental agency, authority, board, bureau, commission, department,
instrumentality or public body, (c) any court or administrative tribunal or (d)
with respect to any Person, any arbitration tribunal or other non-governmental
authority to whose jurisdiction that Person has consented.

      "GV" means GATX Ventures, Inc.

      "Hazardous Materials" means all those substances which are regulated by,
or which may form the basis of liability under, any Environmental Law, including
all substances identified under any Environmental Law as a pollutant,
contaminant, hazardous waste, hazardous constituent, special waste, hazardous
substance, hazardous material, or toxic substance, or petroleum or petroleum
derived substance or waste.

      "Indebtedness" means, with respect to Borrower or any Subsidiary, the
aggregate amount of, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments, (c) all obligations of such
Person to pay the deferred purchase price of property or services (excluding
trade payables aged less than 180 days), (d) all capital lease obligations of
such Person, (e) all obligations or liabilities of others secured by a Lien on
any asset of such Person, whether or not such obligation or liability is
assumed, (f) all obligations or liabilities of others guaranteed by

                                       3

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such Person; and (g) any other obligations or liabilities which are required by
GAAP to be shown as debt on the balance sheet of such Person. Unless otherwise
indicated, the term "Indebtedness" shall include all Indebtedness of Borrower
and the Subsidiaries.

      "Indemnified Person" has the meaning given to such term in Section 10.3.

      "Interim Payment" means, with respect to each Loan, an amount equal to the
initial Loan Amount multiplied by the percentage equal to the product of (i) the
quotient derived from dividing the initial Loan Factor with respect to such Loan
by 30, and (ii) the number of days from (and including) the Funding Date of such
Loan to (but not including) the first Payment Date with respect to such Loan.

      "Investment" means the purchase or acquisition of any capital stock,
equity interest, or any obligations or other securities of, or any interest in,
any Person, or the extension of any advance, loan, extension of credit or
capital contribution to, or any other investment in, any Person.

      "Landlord Agreement" means an agreement substantially in the form of
Exhibit E or such other form as Lenders may agree to accept.

      "Lenders" has the meaning given to such term on the cover page hereof.

      "Lenders" Closing Expenses" has the meaning given to such term in Section
2.7.

      "Lenders' Expenses" means all reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with the
preparation, negotiation, documentation, administration and funding of the Loan
Documents; and Lenders' reasonable attorneys' fees, costs and expenses incurred
in amending, modifying, enforcing or defending the Loan Documents (including
fees and expenses of appeal or review), including the exercise of any rights or
remedies afforded hereunder or under applicable law, whether or not suit is
brought, whether before or after bankruptcy or insolvency, including without
limitation all fees and costs incurred by Lenders in connection with Lenders'
enforcement of their rights in a bankruptcy or insolvency proceeding filed by or
against Borrower or its Property.

      "Lien" means any voluntary or involuntary security interest, pledge,
bailment, lease, mortgage, hypothecation, conditional sales and title retention
agreement, encumbrance or other lien with respect to any Property in favor of
any Person.

      "Loan" means each advance of credit by Lenders to Borrower under this
Agreement in accordance with their Commitment Percentage.

      "Loan Agreement Supplement" means a supplement to this Agreement in
substantially the form of Exhibit C.

      "Loan Amount" means, with respect to each Loan, as of any date, the
outstanding principal amount of such Loan at such time.

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      "Loan Documents" means, collectively, this Agreement, each Loan Agreement
Supplement, the Warrants, any Landlord Agreement, any Service Provider's Consent
and all other documents, instruments and agreements entered into in connection
with this Agreement, all as amended or extended from time to time.

      "Loan Factor" means, with respect to each Loan, the amount set forth as a
percentage in the Loan Terms Schedule with respect to such Loan, which fully
amortizes the Loan over the Repayment Period applicable to such Loan in equal
periodic installments at the Basic Rate.

      "Loan Margin" means the number of basis points set forth following such
term on the cover page of this Agreement.

      "Loan Terms Schedule" means, with respect to each Loan, Annex B to the
Loan Agreement Supplement prepared by Lenders in connection with such Loan.

      "Loan Value" means with respect to each Loan, an amount equal to the sum
of all remaining unpaid Scheduled Payments discounted to the relevant date at a
rate of six percent (6%) per annum; the "relevant date" shall be the Payment
Date on which payment of such amount is to be made, or if such date is not a
Payment Date, on the Payment Date immediately succeeding such date.

      "Maturity Date" means, with respect to each Loan, the last day of the
Repayment Period for such Loan, or if earlier, the date of acceleration of such
Loan following an Event of Default or the date of prepayment, whichever is
applicable.

      "Minimum Funding Amount" means One Hundred Thousand Dollars ($100,000).

      "Obligations" means all debt, principal, interest, fees, charges, expenses
and attorneys' fees and costs and other amounts, obligations, covenants, and
duties owing by Borrower to Lenders or Agent of any kind and description, in
each case arising or incurred under any Loan Documents (other than the
Warrants), whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, including the Loan Value due with
respect to the Loans, and further including all Lenders' Expenses and Agent's
Expenses.

      "Officer's Certificate" means a certificate executed by a Responsible
Officer substantially in the form of Exhibit G or such other form as Lenders may
agree to accept.

      "Other Equipment" means, to the extent reasonably acceptable to Lenders,
tenant improvements and buildout costs, software, software licenses, tooling,
equipment specially manufactured for Borrower, and freight, installation and
sales taxes relating to Eligible Equipment and other soft costs.

      "Payment Date" has the meaning given to such term in Section 2.2(a).

      "Permitted Investments" shall mean and include any of the following
Investments:

                  (a) Demand deposits, certificates of deposit, bankers
acceptances, time deposits and other deposit accounts with commercial banks
organized under the laws of the

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United States and having an aggregate capital and surplus in excess of One
Hundred Million Dollars ($100,000,000).

                  (b) Investments in marketable obligations issued or fully
guaranteed by the United States and maturing not more than one (1) year from the
date of issuance.

                  (c) Investments in open market commercial paper rated at least
"A1" or "P1" or higher by a national credit rating agency and maturing not more
than one (1) year from the creation thereof.

                  (d) Investments pursuant to or arising under currency
agreements or interest rate agreements entered into in the ordinary course of
business.

                  (e) Investments in money market and other mutual funds
invested solely in the types of Investments described in clauses (a) through (d)
of this definition of Permitted Investments.

                  (f) Other Investments aggregating not in excess of Two Hundred
Fifty Thousand Dollars ($250,000) at any time.

      "Permitted Liens" means:

                  (a) the Lien created by this Agreement and/or any Loan
Agreement Supplement;

                  (b) Liens for fees, taxes, levies, imposts, duties or other
governmental charges of any kind which are not yet delinquent or which are being
contested in good faith by appropriate proceedings which suspend the collection
thereof; provided that such proceedings do not involve any substantial danger of
the sale, forfeiture or loss of any item of Financed Equipment and that Borrower
has adequately bonded such Lien or reserves sufficient to discharge such Lien
have been provided on the books of Borrower;

                  (c) Liens to secure payment of worker's compensation,
employment insurance, old age pensions or other social security obligation of
Borrower arising pursuant to mandatory provisions of applicable law in the
ordinary course of Borrower's business; and

                  (d) carriers', warehousemen's, mechanics', materialmen's,
repairmen's or other similar Liens arising in the ordinary course of business
which are not delinquent or remain payable without penalty or which are being
contested in good faith and by appropriate proceedings which suspend the payment
thereof; provided that such proceedings do not involve any substantial danger of
the sale, forfeiture or loss of any item of Financed Equipment and that Borrower
has adequately bonded such Lien or reserves sufficient to discharge such Lien
have been provided on the books of Borrower.

      "Person" means and includes any individual, any partnership, any
corporation, any business trust, any joint stock company, any limited liability
company, any unincorporated association or any other entity and any domestic or
foreign national, state or local government,

                                       6

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any political subdivision thereof, and any department, agency, authority or
bureau of any of the foregoing.

      "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, whether tangible or intangible.

      "Repayment Period" means the period beginning on the first Payment Date
and continuing for the period set forth following such term on the cover page of
this Agreement.

      "Responsible Officer" has the meaning given to such term in Section 6.3.

      "Scheduled Payments" has the meaning given to such term in Section 2.2(a).

      "Service Provider's Consent" means an agreement substantially in the form
of Exhibit F or such other form as Lenders may agree to accept.

      "Solvent" has the meaning given to such term in Section 5.12.

      "Stated Cost" means (i) with respect to each item of Eligible Equipment,
the original cost to Borrower of the item of Eligible Equipment, and (ii) with
respect to each item of Other Equipment, the original cost to Borrower of the
item of Other Equipment.

      "Subsidiary" means any corporation of which a majority of the outstanding
capital stock entitled to vote for the election of directors (otherwise than as
the result of a default) is owned by Borrower directly or indirectly through
Subsidiaries.

      "TCC" means Third Coast Capital, a division of DVI Financial Services Inc.

      "Transfer" has the meaning given to such term in Section 7.4.

      "Term" means the period from and after the date hereof until the payment
in full of all amounts and liabilities payable under this Agreement and the
other Loan Documents, including principal and interest on the Loans (including
all Scheduled Payments with respect to each Loan).

      "Treasury Note Maturity" means the period of months set forth following
such term on the cover page of this Agreement.

      "Warrants" means separate warrants in favor of each of the Lenders and/or
their designees to purchase securities of Borrower, each substantially in the
form of Exhibits.

            1.2 Other Interpretive Provisions. References in this Agreement to
"Articles," "Sections," "Exhibits, "Schedules" and "Annexes" are to recitals,
articles, sections, exhibits, schedules and annexes herein and hereto unless
otherwise indicated. References in this Agreement and each of the other Loan
Documents to any document, instrument or agreement shall include (a) all
exhibits, schedules, annexes and other attachments thereto, (b) all documents,
instruments or agreements issued or executed in replacement thereof, and (c)
such document, instrument or agreement, or replacement or predecessor thereto,
as amended,

                                       7

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modified and supplemented from time to time and in effect at any given time. The
words "hereof," "herein" and "hereunder" and words of similar import when used
in this Agreement or any other Loan Document shall refer to this Agreement or
such other Loan Document, as the Case may be, as a whole and not to any
particular provision of this Agreement or such other Loan Document, as the case
may be. The words "include" and "including" and words or similar import when
used in this Agreement or any other Loan Document shall not be construed to be
limiting or exclusive. Unless otherwise indicated in this Agreement or any other
Loan Document, all accounting terms used in this Agreement or any other Loan
Document shall be construed, and all accounting and financial computations
hereunder or thereunder shall be computed, in accordance with GAAP, and all
terms describing Collateral shall be construed in accordance with the Code.

      2. Loans: Repayment.

            2.1 Commitment.

                  (a) The Credit Amount. Subject to the terms and conditions of
this Agreement and relying upon the representations and warranties herein set
forth as and when made or deemed to be made, Lenders agree to lend to Borrower,
severally and not jointly, from time to time on or prior to the Commitment
Termination Date, the Loans according to each Lender's pro rata share of the
Credit Amount (based upon the respective Commitment of each Lender) of an amount
equal to (i) one hundred percent (100%) of the Stated Cost of Eligible
Equipment, and (ii) one hundred percent (100%) of the Stated Cost of Other
Equipment; provided that the aggregate principal amount of the Loans shall not
exceed the Credit Amount at such time; provided further that the aggregate
original principal amount of all Loans relating to the financing of Other
Equipment shall not at any time exceed twenty-five percent (25%) of the
aggregate original principal amount of all Loans outstanding at such time. Loans
may not be prepaid except in accordance with Section 2.3.

                  (b) Promissory Note. Each Loan Terms Schedule shall be
considered a promissory note evidencing the amounts due hereunder for all
purposes.

                  (c) Use of Proceeds. The proceeds of the Loans shall be used
solely for the purchase of Eligible Equipment or Other Equipment or
reimbursement to Borrower of the Stated Cost of Eligible Equipment or Other
Equipment.

                  (d) Termination of Commitment to Lend. Notwithstanding
anything in the Loan Documents, each Lender's obligation to lend the undisbursed
portion of such Lender's Commitment to Borrower hereunder shall terminate on the
earlier of (i) at such Lender's sole election, the occurrence of any Default or
Event of Default hereunder, and (ii) the Commitment Termination Date.
Notwithstanding the foregoing, each Lender's obligation to lend the undisbursed
portion of such Lender's Commitment to Borrower shall terminate if, in such
Lender's sole judgment, there has been a material adverse change in the general
affairs, management, results of operations or condition (financial or otherwise)
of Borrower, whether or not arising from transactions in the ordinary course of
business, or there has been any material adverse deviation by Borrower from the
business plan of Borrower presented to Lenders on or before the date of this
Agreement. Each Lender shall provide Borrower written notice of such

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Lender's decision to terminate any further funding obligation pursuant to the
provisions of this Section 2.1(d) promptly following Borrower's request for a
funding hereunder and such Lender's decision to so terminate such further
funding obligation.

            2.2 Payments.

                  (a) Scheduled Payments. Borrower shall make payments of
principal and accrued interest in advance for each Loan (collectively,
"Scheduled Payments") as set forth in the Loan Terms Schedule, commencing on the
date set forth on the Loan Terms Schedule applicable to such Loan and continuing
thereafter during the Repayment Period on the first Business Day of each
calendar month (each a "Payment Date"), in an amount equal to the Loan Factor
multiplied by the Loan Amount for such Loan as of such Payment Date.

                  (b) Interim Payment. Unless the Funding Date for a Loan is a
Payment Date, Borrower shall pay the Interim Payment payable with respect to
such Loan on the Funding Date, as specified in the Loan Terms Schedule
applicable to such Loan.

                  (c) Final Payment. Unless a Loan is prepaid in full in
accordance with the terms of this Agreement, on the Maturity Date with respect
to such Loan, Borrower shall pay, in addition to any unpaid Scheduled Payment,
accrued and unpaid interest and all other amounts due on such date with respect
to such Loan.

                  (d) Payment of Interest. Except as otherwise provided in
Section 2.2(f), Borrower shall pay interest on each Loan at a per annum rate of
interest equal to the Basic Rate. All computations of interest on Loans shall be
based on a year of twelve 30-day months. Notwithstanding any other provision
hereof, the amount of interest payable hereunder shall not in any event exceed
the maximum amount permitted by the law applicable to interest charged on
commercial loans.

                  (e) Application of Payments. All payments received by Lenders
prior to an Event of Default shall be applied as follows: (1) first to Lenders'
Expenses and Agent's Expenses then due and owing; and (2) second to all
Scheduled Payments then due and owing; provided that if such payments are not
sufficient to pay the whole amount then due, such payments shall be applied
first to unpaid interest at the Basic Rate, then to the remaining amount then
due. After an Event of Default, all payments and application of proceeds shall
be made as set forth in Section 9.7.

                  (f) Default Rate. Borrower shall pay interest at a per annum
rate equal to the Default Rate on any amounts required to be paid by Borrower
under this Agreement or the other Loan Documents (including Scheduled Payments
payable with respect to any Loan, accrued and unpaid interest, and any fees or
other amounts) which remain unpaid after such amounts are due beyond any
applicable grace periods. If an Event of Default has occurred and the
Obligations have been accelerated (whether automatically or by Lenders'
election), Borrower shall pay interest on the aggregate, outstanding accelerated
balance hereunder from the date of the Event of Default until all Events of
Default are cured, at a per annum rate equal to the Default Rate.

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            2.3 Prepayments.

                  (a) Prepayment Upon an Event of Loss. If any Financed
Equipment is subject to an Event of Loss and Borrower is required to or elects
to prepay the Loan with respect to such Financed Equipment, then such Loan shall
be prepaid to the extent and in the manner provided in Section 6.10.

                  (b) Mandatory Prepayment Upon an Acceleration. If the Loans
are accelerated following the occurrence of an Event of Default or otherwise
(other than following an Event of Loss), then Borrower shall immediately pay to
Lenders (i) all accrued and unpaid Scheduled Payments with respect to each Loan
due prior to the date of prepayment, (ii) any accrued and unpaid interest, (iii)
the Loan Value of each Loan, and (iv) all other sums, if any, that shall have
become due and payable hereunder.

                  (c) Optional Prepayment. Upon ten (10) Business Days' prior
written notice to Lenders, Borrower may, at its option, (i) at any time after
April 30,2003, or (ii) at any time if Lender fails to consent to a merger,
consolidation or acquisition in accordance with Section 7.6, prepay all, and not
less than all, of the Loans in full by paying to Lenders an amount equal to (i)
all accrued and unpaid Scheduled Payments with respect to each Loan due prior to
the date of prepayment; (ii) any accrued and unpaid interest; (iii) the Loan
Value of each Loan, and (iv) all other sums, if any, that shall have become due
and payable hereunder. Except as set forth in this Section 2.3, the Loans may
not be prepaid.

            2.4 Other Payment Terms.

                  (a) Place and Manner. Borrower shall make all payments due to
Agent or Lenders in lawful money of the United States. All payments of
principal, interest, fees and other amounts payable by Borrower hereunder shall
be made, in immediately available funds, not later than 10:00 a.m. California
time, on the date on which such payment is made. Borrower shall make payments to
Lenders as follows:

      GV Payment
      Credit:                        GATX Capital Corporation
      Bank Name:                     Bank of America
      Bank Address:                  Dallas, Texas 75202
      Account No.:                   3750878673
      ABA Routing No.:               111-000012
      Reference:                     EGENERA, INC. Invoice #___________________

      TCC Payment
      Credit:                        DVI Financial Services Inc.
      Bank Name:                     Fleet Bank
      Bank Address:                  1185 Sixth Avenue, New York, NY 100036
      Account No.:                   2181016540
      ABA Routing No.:               021200339
      Reference:                     EGENERA, INC., Loan # 001-2720-000,
                                     Invoice #_____________

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Any payment received by Agent or one Lender for the account of the other Lender
shall be paid promptly to such Lender, in like funds, for the Loan in respect of
which such payment is made.

                  (b) Date. Whenever any payment due hereunder shall fall due on
a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in the
computation of interest or fees, as the case may be.

            2.5 Procedure for Making Loans.

                  (a) Notice. Whenever Borrower desires that Lenders make a
Loan, Borrower shall be responsible for providing Agent with a list of equipment
proposed to be financed with such Loan together with such additional
information with respect to the Loan and the Eligible Equipment and the Other
Equipment as Agent shall reasonably request. Following the receipt by Agent of
such information in form and substance reasonably satisfactory to it, Agent
shall notify Borrower that the conditions set forth in Sections 3.2(b) and
3.2(c) have been met and Borrower may then notify Agent of the date on which
Borrower desires Lenders to make such Loan. Borrower's notice shall be made at
least five (5) Business Days in advance of the desired Funding Date, unless
Agent elects at its sole discretion to allow the Funding Date to be within 5
Business Days of the notice. Borrower's execution and delivery to Agent of the
Loan Agreement Supplement with the attached Loan Terms Schedule shall be
Borrower's agreement to the terms and calculations thereunder. Within two (2)
Business Days following receipt of such notice, Agent shall notify each Lender
by telephone or facsimile of the principal amount (including such Lender's
Commitment Percentage thereof) and Funding Date of the Loan being requested by
Borrower. Subject to the terms and conditions of this Agreement, as soon as
practicable on the Funding Date specified in the Loan Terms Schedule, each
Lender shall transfer an amount equal to its Commitment Percentage multiplied by
the amount of the Loan to the account specified in the Loan Agreement Supplement
in immediately available funds. Each Lender's obligation to advance an amount
equal to its Commitment Percentage of the Loan shall be expressly subject to the
satisfaction of the conditions set forth in Sections 3.1 and 3.2.

                  (b) Loan Factor and Loan Value Calculation. Prior to each
Funding Date, Agent, on behalf of Lenders, shall establish the Loan Factor and
the Basic Rate with respect to such Loan, which shall be set forth in the Loan
Agreement Supplement to be executed by Borrower with respect to each Loan and
shall be conclusive in the absence of a manifest error.

                  (c) Disbursement. Each Lender shall disburse its pro rata
portion of such Loan by wire transfer to Borrower at the account specified in
the Loan Agreement Supplement for the relevant Loan. Notwithstanding anything
stated herein to the contrary, no Lender shall have any obligation to advance
funds on behalf of the other Lender.

            2.6 Minimum Funding Amount; Maximum Number of Fundings. Except with
the prior consent of Lenders, in Lenders' sole discretion, (i) there shall not
be more than one funding of a Loan in any one calendar month; and (ii) the
aggregate amount of each requested Loan shall

                                       11

<PAGE>

not be less than the lesser of (a) the Minimum Funding Amount and (b) the
remaining Credit Amount.

            2.7 Closing Expenses, Facility Fee and Good Faith Deposit. Borrower
shall pay Lenders' Expenses in connection with Lenders' due diligence and in
connection with the negotiation and documentation of this Agreement and the
other Loan Documents ("Lenders' Closing Expenses"). Borrower has previously paid
a good faith deposit in the amount of Thirty Thousand Dollars ($30,000) (the
"Good Faith Deposit"). Concurrently with its execution and delivery of this
Agreement Borrower shall pay a facility fee in the amount of Fifteen Thousand
Dollars ($15,000) (the "Facility Fee") which shall be retained by Lenders and be
deemed fully earned upon receipt. The Good Faith Deposit shall be applied toward
payment of the Facility Fee with the balance of the Good Faith Deposit being
used to pay Lenders' Closing Expenses. After payment of the Facility Fee and the
final determination and payment of all of Lenders' Closing Expenses, any
remaining balance of the Good Faith Deposit shall be applied, on a pro rata
basis, to Borrower's next Scheduled Payment on all then outstanding Loans. It is
agreed the legal fees of Agent's in-house counsel and TCC's in-house counsel in
connection with the negotiation and initial documentation of this Agreement and
the other Loan Documents shall be, in the case of Agent, Six Thousand Dollars
($6,000), and in the case of TCC, Three Thousand Dollars ($3,000).

      3. Conditions of Loans.

            3.1 Conditions Precedent to Closing. At the time of the execution
and delivery of this Agreement, Lenders shall have received, in form and
substance reasonably satisfactory to Lenders, all of the following (unless
Lenders have agreed to waive such condition or document, in which case such
condition or document shall be a condition precedent to the making of all Loans
and shall be deemed added to Section 3.2):

                  (a) Loan Agreement. This Agreement duly executed by Borrower
and each Lender.

                  (b) Warrants. The separate Warrants to be issued to each
Lender or their designees, each duly executed by Borrower.

                  (c) Intercreditor Agreement. An intercreditor agreement, in
form and substance satisfactory to Lenders, and duly executed by each Lender.

                  (d) Secretary's Certificate. A certificate of the secretary or
assistant secretary of Borrower with copies of the following documents attached:
(i) the certificate of incorporation and bylaws of Borrower certified by
Borrower as being in full force and effect on the date thereof, (ii) incumbency
and representative signatures, and (iii) resolutions authorizing the execution
and delivery of this Agreement and each of the other Loan Documents.

                  (e) Good Standing, Etc. A good standing certificate from
Borrower's state of incorporation, together with certificates of foreign
qualification from the state in which Borrower's principal place of business is
located and each other state in which Borrower is currently qualified to do
business, each dated as of a recent date.

                                       12

<PAGE>

                  (f) Insurance. Evidence of the insurance coverage required by
Section 6.9 of this Agreement.

                  (g) Consents. All necessary consents of shareholders and other
third parties with respect to the execution, delivery and performance of this
Agreement, the Warrants and the other Loan Documents.

                  (h) Legal Opinion. A legal opinion of Borrower's counsel
substantially in the form of Exhibit D.

                  (i) Other Documents. Such other documents, and completion of
such other matters, as Lenders may deem necessary or appropriate.

            3.2 Conditions Precedent to All Loans. The obligation of Lenders to
make each Loan, including the initial Loan, is further subject to the following
conditions:

                  (a) No Defaults. No Default or Event of Default shall have
occurred and be continuing.

                  (b) Documentation of Eligible Equipment. Borrower shall have
provided to Agent, with respect to the Eligible Equipment which is requested to
be financed with the proceeds of the Loan to be made on such Funding Date,
copies of such invoices, purchase orders, bills of sale, serial numbers,
agreements, canceled checks, and other documents as Lenders shall reasonably
request to evidence the ownership by Borrower of, and the payment in full by
Borrower of the purchase price of such Eligible Equipment, each in form and
substance reasonably satisfactory to Lenders.

                  (c) Documentation of Other Equipment. Borrower shall have
provided to Agent, with respect to the Other Equipment which is requested to be
financed with the proceeds of the Loan to be made on such Funding Date, copies
of such invoices, purchase orders, bills of sale, agreements, canceled checks,
and other documents as Lenders shall reasonably request to evidence the
ownership by Borrower of, and the payment in full of the purchase price by
Borrower of such Other Equipment, each in form and substance reasonably
satisfactory to Lenders.

                  (d) Access Agreements. Borrower shall have provided Agent with
the location of each item of Financed Equipment and a Landlord Agreement for
each such location (unless Borrower is the fee owner thereof) or a Service
Provider's Consent if any such Financed Equipment is located at a third party
service provider, as appropriate, which has been duly executed by each of the
parties thereto.

                  (e) Loan Agreement Supplement. Borrower, Agent and Lenders
shall have executed a Loan Agreement Supplement, including a Loan Terms Schedule
and a list of Financed Equipment with respect to the proposed Loan.

                  (f) Financing Statements. Agent shall have received such
documents, instruments and agreements, including UCC financing statements or
amendments to UCC financing statements, as Agent shall reasonably request to
evidence the perfection and priority of

                                       13

<PAGE>

the security interests granted to Agent, on behalf of and for the benefit of
Lenders, pursuant to Section 4.

                  (g) Releases. Borrower shall have delivered to Agent, on
behalf of Lenders, a release, or estoppel letter, as appropriate, from any
Person having an existing Lien on any item of Eligible Equipment or Other
Equipment which is requested to be financed.

                  (h) Other Documents. Such other documents, and completion of
such other matters, as Agent may deem necessary or appropriate.

            3.3 Covenant to Deliver. Borrower agrees (not as a condition but as
a covenant) to deliver to Agent each item required to be delivered to Agent
and/or Lenders as a condition to each Loan, if such Loan is advanced. Borrower
expressly agrees that the extension of such Loan prior to the receipt by Agent
or Lenders of any such item shall not constitute a waiver by Agent or Lenders of
Borrower's obligation to deliver such item, and any such extension in the
absence of a required item shall be in Lenders' sole discretion.

      4. Creation of Security Interest.

            4.1 Grant of Security Interest. Borrower grants to Agent, on behalf
and for the benefit of Lenders, a valid, first priority, continuing security
interest in all presently existing and hereafter acquired or arising Collateral
in order to secure prompt, full and complete payment of any and all Obligations
(other than any obligations arising solely under the Warrants) and in order to
secure prompt, full and complete performance by Borrower of each of its
covenants and duties under each of the Loan Documents. The "Collateral" shall
mean and include all right, title, interest, claims and demands of Borrower in
and to all of the following:

                  Each and every item of goods (and embedded computer programs
and supporting information included within the definition of "goods" under the
Code), equipment, fixtures or personal property which, in each such case, is
financed with or is designated as "Collateral" for the Obligations on and after
the date of this Agreement by designating such goods, equipment, fixtures and
personal property on an annex or exhibit to a Loan Agreement Supplement executed
by Borrower, whether now owned or hereafter acquired, together with all
substitutions, renewals or replacements of and additions, improvements,
accessions, replacement parts and accumulations to any and all of such goods,
equipment, fixtures or personal property (collectively, the "Equipment"),
together with all proceeds thereof, including, without limitation, insurance,
condemnation, requisition or similar payments, and all proceeds from sales,
renewals, releases or other dispositions thereof.

            4.2 After-Acquired Property. All Financed Equipment which is
financed through Loans and any and all other Property generally described or
referred to as Collateral or Financed Equipment which is hereafter acquired by
Borrower shall ipso facto, and without any further conveyance, assignment or act
on the part of Borrower or Lenders, become and be subject to the security
interest herein granted as fully and completely as though specifically described
herein. The list of Financed Equipment shall be amended and supplemented on each
Funding Date by a Loan Agreement Supplement to incorporate all Financed
Equipment financed with the Loan advanced on such Funding Date; provided that
the failure to so amend and supplement the list of

                                       14

<PAGE>

Financed Equipment shall not affect the grant by Borrower to Agent of the
security interest in such Financed Equipment pursuant to this Section 4. This
Agreement and the other documents in connection herewith may be otherwise
supplemented and amended from time to time, as required by Lenders, to reflect
additional Collateral to be subject to the security interest granted pursuant to
this Section 4.

            4.3 Duration of Security Interest. Agent's security interest in the
Collateral shall continue until the payment in full and the satisfaction of all
Obligations and termination of the Commitments, whereupon such security interest
shall terminate; provided that if any item of Financed Equipment is subject to
an Event of Loss, then following the prepayment of the Loan with respect to such
item pursuant to Section 2.3, Agent shall release its security interest in such
item of Financed Equipment. Agent shall, at Borrower's sole cost and expense,
execute such further documents and take such further actions as may be
reasonably necessary to effect the release contemplated by this Section 4.3,
including duly executing and delivering termination statements for filing in all
relevant jurisdictions under the Code.

            4.4 Location and Possession of Collateral. The Collateral is and
shall remain in the possession of Borrower at its location listed on the cover
page hereof, or if Lenders subsequently agree to any additional location, as set
forth in a Loan Agreement Supplement (except that Borrower may permit its
employees to use laptop computers or other similarly mobile equipment offsite in
the ordinary course of Borrower's business). Borrower shall remain in full
possession, enjoyment and control of the Collateral (except only as may be
otherwise required by Agent for perfection of its security interest therein) and
so long as no Event of Default has occurred, shall be entitled to manage,
operate and use the same and each part thereof with the rights and franchises
appertaining thereto; provided that the possession enjoyment, control and use of
the Collateral shall at all time be subject to the observance and performance of
the terms of this Agreement.

            4.5 Markings on the Collateral. At Agent's request at any time
during the Term of the Loan (including any extension thereof) and after the
occurrence of an Event of Default, Borrower shall place in a conspicuous
location on each item of Financed Equipment a plaque or other marking to be
supplied by Lenders which reads substantially as follows:

      GATX VENTURES, INC., as Agent for Lenders, Lienholder.

      Such plaque or other marking shall not be removed (or if removed or
damaged such plaque or other marking shall be replaced) until the security
interest in favor of Agent in such item of Collateral is terminated pursuant to
this Agreement.

            4.6 Delivery of Additional Documentation Required. Borrower shall
from time to time execute and deliver to Agent on behalf of Lenders, at the
request of Agent, all financing statements and other documents Agent may
reasonably request, in form satisfactory to Agent, to perfect and continue
Agent's perfected security interests in the Collateral and in order to
consummate fully all of the transactions contemplated under the Loan Documents.

            4.7 Right to Inspect. Each Lender (through any of its officers,
employees, or agents) shall have the right, upon reasonable prior notice, from
time to time during Borrower's

                                       15

<PAGE>

usual business hours, to inspect Borrower's books and records and to make copies
thereof and to inspect, test, and appraise the Collateral in order to verify
Borrower's financial condition or the amount, condition of, or any other matter
relating to, the Collateral.

            4.8 Intellectual Property. Borrower shall (i) protect, defend and
maintain the validity and enforceability of its material intellectual property
and promptly advise Lenders in writing of material infringements thereof, and
(ii) not allow any intellectual properly material to Borrower's business to be
abandoned, forfeited or dedicated to the public without the approval of
Borrower's Board of Directors.

      5. Representations and Warranties. Except as set forth in the Disclosure
Schedule, Borrower represents, warrants and covenants as follows:

            5.1 Organization and Qualification. Borrower is a corporation duly
organized and validly existing and in good standing under the laws of its state
of incorporation and qualified and licensed to do business in, and is in good
standing in, any state in which the conduct of its business or its ownership of
Property requires that it be so qualified or in which the Collateral is located,
except for such states as to which any failure to so qualify would not
reasonably be expected to have a material adverse effect on Borrower. Borrower
has no Subsidiaries.

            5.2 Authority. Borrower has all necessary power and authority to
execute, deliver, and perform in accordance with the terms thereof, the Loan
Documents to which it is a party. Borrower has all requisite power and authority
to own and operate its Property and to carry on its businesses as now conducted.

            5.3 Conflict with Other Instruments, etc. Neither the execution and
delivery of any Loan Document to which Borrower is a party nor the consummation
of the transactions therein contemplated nor compliance with the terms,
conditions and provisions thereof will conflict with or result in a breach of
(i) any of the terms, conditions or provisions of the certificate of
incorporation and the by-laws, or other organizational documents of Borrower,
(ii) any law or any regulation, except for such violations which could not,
either individually or in the aggregate, reasonably be expected to have a
material adverse effect on Borrower, (iii) any order, writ, injunction or decree
of any court or governmental instrumentality or (iv) any material agreement or
instrument to which Borrower is a party or by which it or any of its Property is
bound or to which it or any of its Property is subject, or constitute a default
thereunder or result in the creation or imposition of any Lien, other than
Permitted Liens.

            5.4 Authorization; Enforceability. The execution and delivery of
this Agreement, the granting of the security interest in the Collateral, the
incurring of the Loans, the execution and delivery of the other Loan Documents
to which Borrower is a party and the consummation of the transactions herein and
therein contemplated have each been duly authorized by all necessary action on
the part of Borrower. The Loan Documents have been duly executed and delivered
and constitute legal, valid and binding obligations of Borrower, enforceable in
accordance with their respective terms, except as the enforceability thereof may
be limited by bankruptcy, insolvency or other similar laws of general
application relating to or affecting the enforcement of creditors' rights or by
general principles of equity.

                                       16

<PAGE>

            5.5 No Prior Encumbrances. Borrower has good and marketable title to
the Collateral, free and clear of Liens except for Permitted Liens. Borrower has
good title and ownership of, or is licensed under, all of Borrower's current
intellectual property, with no known infringement of the rights of others,
except where the failure to have good title, ownership or license could not
reasonably be expected to have a material adverse effect on Borrower. Borrower
has not received any communications alleging that Borrower has violated, or by
conducting its business as proposed, would violate any proprietary rights of any
other Person. Borrower has no knowledge of any infringement or violation by it
of the intellectual property rights of any third party and has no knowledge of
any violation or infringement by a third party of any of its intellectual
property.

            5.6 Name; Location of Chief Executive Office, Principal Place of
Business and Collateral. Borrower has not done business under any name other
than that specified on the signature page hereof. The chief executive office,
principal place of business, and the place where Borrower maintains its records
concerning the Collateral are presently located at the address set forth on the
cover page of this Agreement. The Collateral is presently located at the address
set forth on the cover page hereof, or if Lenders subsequently agree to any
other locations, as set forth in a Loan Agreement Supplement which is executed
by Agent and Lenders (except that Borrower may permit its employees to use
laptop computers or other similarly mobile equipment offsite in the ordinary
course of Borrower's business).

            5.7 Litigation. There are no actions or proceedings pending by or
against Borrower before any court or administrative agency in which an adverse
decision could have a material adverse effect on Borrower or the aggregate value
of the Collateral. Borrower does not have knowledge of any such pending or
threatened actions or proceedings.

            5.8 Financial Statements. All financial statements relating to
Borrower or any Affiliate that have been or may hereafter be delivered by
Borrower to each Lender present fairly in all material respects Borrower's
financial condition as of the date thereof and Borrower's results of operations
for the period then ended.

            5.9 Security Interest. Assuming the proper filing of one or more
financing statement(s) identifying the Collateral with the proper state and/or
local authorities, the security interests in the Collateral granted to Agent
pursuant to this Agreement (i) constitute and will continue to constitute first
priority security interests (except to the extent any Permitted Liens may have a
superior priority to Agent's Lien under this Agreement) and (ii) are and will
continue to be superior and prior to the rights of all other creditors of
Borrower (except to the extent of such Permitted Liens).

            5.10 No Material Adverse Effect. No event has occurred and no
condition exists which could reasonably be expected to have a material adverse
effect on the financial condition, business or operations of Borrower since
December 31, 2000.

            5.11 Full Disclosure. No representation, warranty or other statement
made by Borrower in any Loan Document (including the Disclosure Schedule),
certificate or written statement furnished to Agent or either Lender contains
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained in such

                                       17

<PAGE>

certificates or statements not misleading. There is no fact known to Borrower
which materially adversely affects, or which could in the future be reasonably
expected to materially adversely affect, its ability to perform its obligations
under this Agreement, except for facts relating to general economic conditions
which could reasonably be expected to similarly affect all companies within the
same industry as Borrower.

            5.12 Solvency, Etc. Borrower is Solvent (as defined below) and,
after the execution and delivery of the Loan Documents and the consummation of
the transactions contemplated thereby, Borrower will be Solvent. As used herein,
"Solvent" means, with respect to any Person on any date, that on such date (a)
the fair value of the property of such Person is greater than the fair value of
the liabilities (including, without limitation, contingent liabilities) of such
Person, (b) the present fair saleable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured, (c) such Person does
not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person's ability to pay as such debts and liabilities mature and (d)
such Person is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which such Person's property would
constitute an unreasonably small capital.

      6. Affirmative Covenants. Borrower covenants and agrees that, until the
full and complete payment of the Obligations and the termination of the
Commitments, Borrower shall do all of the following:

            6.1 Good Standing. Borrower shall maintain its corporate existence
and its good standing in its jurisdiction of incorporation and maintain
qualification in each jurisdiction in which the failure to so qualify could
reasonably be expected to have a material adverse effect on the financial
condition, operations or business of Borrower. Borrower shall maintain in force
all licenses, approvals and agreements, the loss of which could reasonably be
expected to have a material adverse effect on its financial condition,
operations or business.

            6.2 Government Compliance. Borrower shall comply with all statutes,
laws, ordinances and government rules and regulations to which it is subject,
noncompliance with which could reasonably be expected to materially adversely
affect the financial condition, operations or business of Borrower.

            6.3 Financial Statements, Reports, Certificates. Until such time as
Borrower is a publicly reporting company, Borrower shall deliver to each Lender:
(a) as soon as available, but in any event within thirty (30) days after the end
of each month, a company prepared balance sheet, income statement and cash flow
statement covering Borrower's operations during such period, certified by
Borrower's president, treasurer or chief financial officer (a "Responsible
Officer"); (b) as soon as available, but in any event within one hundred twenty
(120) days after the end of Borrower's fiscal year, audited financial statements
of Borrower prepared in accordance with GAAP, together with an unqualified
opinion on such financial statements of a nationally recognized or other
independent public accounting firm reasonably acceptable to Agent; and (c) such
other financial information as Lenders may reasonably request from time to time.
From and after such time as Borrower becomes a publicly reporting company,
Borrower shall deliver to each Lender promptly as they are available and in any
event: (x) at the time of

                                       18

<PAGE>

filing of Borrower's Form 10-K with the Securities and Exchange Commission
after the end of each fiscal year of Borrower, the financial statements of
Borrower filed with such Form 10-K; and (y) at the time of filing of Borrower's
Form 10-Q with the Securities and Exchange Commission after the end of each of
the first three fiscal quarters of Borrower, the financial statements of
Borrower filed with such Form 10-Q. In addition, Borrower shall deliver to each
Lender (i) promptly upon becoming available, copies of all statements, reports
and notices sent or made available generally by Borrower to all of its security
holders, (ii) immediately upon receipt of notice thereof, a report of any
action, proceeding or governmental investigation involving Borrower that could
reasonably be expected to result in damages or costs to Borrower of One Hundred
Thousand Dollars ($100,000) or more, (iii) no less than thirty (30) days prior
to Borrower's incurrence of any Indebtedness for borrowed money in excess of One
Hundred Thousand Dollars ($100,000), written notice thereof describing in
reasonable detail the terms and conditions thereof, and (iv) such other
financial information as Lenders may reasonably request from time to time.

            6.4 Certificates of Compliance. Each time financial statements are
furnished pursuant to Section 6.3 above, there shall be delivered to each
Lender, an Officer's Certificate signed by a Responsible Officer in the form of,
and certifying to the matters set forth in, Exhibit G hereto.

            6.5 Notice of Event of Loss. As soon as possible, and in any event
within ten (10) days after Borrower has knowledge thereof, Borrower shall notify
Agent in writing in reasonable detail of any Event of Loss.

            6.6 Notice of Defaults. As soon as possible, and in any event within
five (5) days after the discovery of a Default or an Event of Default, Borrower
shall provide Lenders with an Officer's Certificate setting forth the facts
relating to or giving rise to such Default or Event of Default and the action
which Borrower proposes to take with respect thereto.

            6.7 Taxes. Borrower shall make due and timely payment or deposit of
all federal, state, and local taxes, assessments, or contributions required of
it by law or imposed upon any Property belonging to it, including the Financed
Equipment, and will execute and deliver to Agent, on demand, appropriate
certificates attesting to the payment or deposit thereof; and Borrower will make
timely payment or deposit of all tax payments and withholding taxes required of
it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state
disability, and local, state, and federal income taxes, and will, upon request,
furnish Agent with proof satisfactory to Agent and Lenders indicating that
Borrower has made such payments or deposits; provided that Borrower need not
make any payment if the amount or validity of such payment is contested in good
faith by appropriate proceedings which suspend the collection thereof; provided
that (i) such proceedings do not involve any substantial danger of the sale,
forfeiture or loss of any item of Financed Equipment, any material item of
Collateral or Collateral which in the aggregate is material to Borrower and (ii)
Borrower has adequately bonded such amounts or reserves sufficient to discharge
such amounts have been provided on the books of Borrower.

            6.8 Use; Maintenance.

                                       19

<PAGE>

                  (a) Use. Borrower, at its expense, shall make all necessary
site preparations and cause the Collateral to be operated in accordance with any
applicable manufacturer's manuals or instructions. So long as no Default or
Event of Default has occurred, Borrower shall have the right to quietly possess
and use the Collateral as provided herein without interference by Agent or
Lenders.

                  (b) Maintenance. Borrower, at its expense, shall maintain the
Collateral in good condition, reasonable wear and tear excepted, and will comply
in all material respects with all laws, rules and regulations to which the use
and operation of the Collateral may be or become subject. Such obligation shall
extend to repair and replacement of any partial loss or damage to the Collateral
which does not constitute an Event of Loss, regardless of the cause. If
maintenance is mandated by manufacturer, Borrower shall obtain and keep in
effect, at all times during the Term maintenance service contracts with
suppliers approved by Agent and Lenders, such approval not to be unreasonably
withheld. All parts furnished in connection with such maintenance or repair
shall immediately become part of the Collateral. All such maintenance, repair
and replacement services shall be, at Borrower's election, either (i)
immediately paid for and discharged by Borrower with the result that no Lien
will attach to the Collateral or (ii) paid within the terms provided by any such
provider of such services with the result that no Lien will attach thereto,
other than a Permitted Lien.

            6.9 Insurance. Borrower shall, obtain and maintain for the Term, at
its own expense:

                  (a) All Risk Insurance. "All risk" insurance against loss or
damage to the Collateral. The coverage limit shall be not less than the
replacement cost of the Equipment. The deductible shall not exceed Twenty-Five
Thousand Dollars ($25,000). The policy shall name Agent and each Lender, as loss
payees with respect to the Collateral, shall not be invalidated by any action of
or breach of warranty by Borrower of any provision thereof and waive subrogation
against Agent, on behalf of Lenders, or Lenders.

                  (b) General Liability Insurance. Commercial general liability
insurance (including contractual liability, products liability and completed
operations coverages) reasonably satisfactory to Lenders. The limit of liability
(including Borrower's umbrella form excess liability) shall be at least Five
Million Dollars ($5,000,000) per occurrence. The policy shall be without
deductible, except for products liability coverage which may have a deductible
up to Twenty Five Thousand Dollars ($25,000). The policy(ies) shall name Agent,
on behalf of Lenders, as additional insured in the full amount of Borrower's
liability coverage limits (or the coverage limits of any successor to Borrower
or such successor's parent which is providing coverage), be primary and without
contribution as respects any insurance carried by Agent or Lenders, and contain
cross liability and severability of interest clauses.

                  (c) Other Insurance. Such other insurance against risks of
loss and with terms as shall be reasonably required by Agent and Lenders.

      All policies of insurance shall be placed with financially sound,
commercial insurers reasonably satisfactory to Agent and Lenders. All policies
of insurance shall provide that Agent, on behalf of Lenders, shall be given
thirty (30) days notice of cancellation of coverage. This

                                       20

<PAGE>

notice provision shall be without qualification. On or prior to the first
Funding Date and prior to each policy renewal, Borrower shall furnish to Agent,
on behalf of Lenders, certificates of insurance or other evidence satisfactory
to Agent that insurance complying with all of the above requirements is in
effect.

            6.10 Loss; Damage; Destruction and Seizure.

                  (a) Risk of Loss. Borrower shall bear the risk of the Financed
Equipment being lost, stolen, destroyed, damaged beyond repair, rendered
permanently unfit for use, or seized by a Governmental Authority for any reason
whatsoever at any time until the expiration or termination of the Term.

                  (b) Event of Loss. Except to the extent otherwise permitted
under Section 6.10(c), if during the Term any item of Financed Equipment is
lost, stolen, destroyed, damaged beyond repair, rendered permanently unfit for
use, or seized by a Governmental Authority for any reason whatsoever for a
period equal to at least the remainder of the Term (an "Event of Loss"), then in
each case Agent, on behalf of Lenders, shall receive from the proceeds of
insurance maintained pursuant to Section 6.9, from any award paid by the seizing
Governmental Authority or, to the extent not received from the proceeds of
insurance or award or both, from Borrower, on or before the Payment Date next
succeeding such Event of Loss, an amount equal to the sum of: (i) all accrued
and unpaid Scheduled Payments with respect to the Loan made to finance or
refinance the purchase of such Financed Equipment which are due prior to the
next such Payment Date; (ii) an amount equal to (A) the Loan Value with respect
to such Loan multiplied by (B) the aggregate Stated Cost of each affected item
of Financed Equipment divided by the Loan Amount; and (iii) all other sums, if
any, that shall have become due and payable hereunder with respect to such Loan,
including interest at the Default Rate with respect to any past due amounts. On
the date of receipt by Agent, on behalf of Lenders, of the amount specified
above with respect to each such item of Financed Equipment subject to an Event
of Loss, this Agreement shall terminate as to such Financed Equipment. Except as
provided in Section 6.10(c), any proceeds of insurance maintained by Borrower
pursuant to Section 6.9 and received by Borrower shall be paid to Agent, on
behalf of Lenders, promptly upon their receipt by Borrower. If any proceeds of
insurance or awards received from Governmental Authorities are in excess of the
amount owed under this Section 6.10, Agent shall promptly remit to Borrower the
amount in excess of the amount owed to Lenders.

                  (c) Repair or Replacement. So long as no Event of Default has
occurred, any proceeds of insurance maintained pursuant to Section 6.9 received
by any of Agent, Lenders or Borrower with respect to an item of Financed
Equipment, the repair of which is practicable, shall, at the election of
Borrower, be applied either to the repair or replacement of such Financed
Equipment or, upon Agent's receipt, on behalf of Lenders, of evidence of the
repair or replacement of the Financed Equipment reasonably satisfactory to
Lenders, to the reimbursement of Borrower for the cost of such repair or
replacement. All replacement parts and equipment acquired by Borrower in
replacement of Financed Equipment pursuant to this Section 6.10(c) shall
immediately become part of the Financed Equipment upon acquisition by Borrower.
Borrower shall take such actions and provide such documentation as may be
reasonably requested by Agent, on behalf of Lenders, to protect and preserve
their first priority security

                                       21

<PAGE>

interest and otherwise to avoid any impairment of Agent's and Lenders' rights
under the Loan Documents in connection with such repair or replacement.

            6.11 Further Assurances. At any time and from time to time Borrower
shall execute and deliver such further instruments and take such further action
as may reasonably be requested by Lenders to effect the purposes of this
Agreement, including without limitation, the continued perfection and priority
of Agent's security interest in the Collateral.

            6.12 Equity Investment.

                  (a) Right to Participate. Borrower shall permit GV, at GV's
option, to purchase, in Borrower's Next Qualified Financing (but not any other
financing), up to Two Hundred Fifty Thousand Dollars ($250,000) of the
securities sold in Borrower's Next Qualified Financing at the same price and on
the same terms as paid and received by the lead investor of Borrower's Next
Qualified Financing. Borrower shall permit TCC or its designee, at TCC's option,
to purchase, in Borrower's Next Qualified Financing (but not any other
financing), up to Two Hundred Fifty Thousand Dollars ($250,000) of the
securities sold in Borrower's Next Qualified Financing at the same price and on
the same terms as paid and received by the lead investor of Borrower's Next
Qualified Financing. The foregoing rights of each Lender to invest in Borrower's
Next Qualified Financing shall not apply to the extent that such participation
by such Lender or its permitted assignee would prevent Borrower from availing
itself of an appropriate exemption from the registration requirements of any
applicable securities laws due to the status of such participating Lender or
assignee.

                  (b) Notice. Borrower agrees that it shall notify each Lender
in writing promptly upon the execution by Borrower of a term sheet or letter of
intent setting forth the terms and conditions of Borrower's Next Qualified
Financing and in any event within five (5) days of such execution. Each Lender
agrees that (1) it shall notify Borrower and the other Lender as to whether or
not it intends to participate in Borrower's Next Qualified Financing, and the
aggregate amount of such Lender's proposed investment, within thirty (30)
following such Lender's receipt of the notice required hereby, and (2) such
Lender's failure to so notify Borrower within such thirty (30) day period shall
be deemed an election by such Lender not to so participate in Borrower's Next
Qualified Financing. In the event that a Lender shall have elected to
participate in Borrower's Next Qualified Financing in accordance with the terms
of this Section 6.12, such Lender shall close on such investment
contemporaneously with the lead investor in Borrower's Next Qualified Financing
or at such other time thereafter as Borrower and such Lender may agree.

                  (c) Assignment of Participation Right. This foregoing right of
purchase under this Section 6.12 may be assigned by a Lender to its Affiliates
(but not to any other Person without the prior written consent of Borrower,
regardless of whether such Lender is otherwise permitted to assign its interest
in the other Obligations hereunder), and if one Lender does not elect to
purchase the full amount of equity it is entitled to purchase under this Section
6.12, such Lender shall use its reasonable efforts to notify the other Lender of
such decision as promptly as practical and, so long as further notice of such
election is given to Borrower within the thirty (30) day period provided for in
Section 6.12(b) the other Lender may purchase such amount. Each

                                       22

<PAGE>

Lender shall provide prompt written notice to Borrower of any assignment of its
rights under this Section 6.12 and/or election to purchase any amount not
purchased by the other Lender.

      7. Negative Covenants. Borrower covenants and agrees that until the full
and complete payment of the Obligations and termination of the Commitments,
Borrower will not do any of the following:

            7.1 Chief Executive Office. Change its name, chief executive office,
principal place of business or any of the items set forth in Section 1 of the
Disclosure Schedule without thirty (30) days prior written notice to Lenders.

            7.2 Collateral Control. Subject to its rights under Section 4, (i)
terminate, waive or release any material right with respect to any Collateral,
(ii) remove any items of Collateral from Borrower's facility located at the
address set forth on the cover page hereof or such other address agreed to in
writing by Lenders (except that Borrower may permit its employees to use laptop
computers or other similarly mobile equipment offsite in the ordinary course of
Borrower's business), or (iii) affix or attach or permit to be affixed or
attached to any item of Collateral any other item of property owned by Borrower
or any other lender, lessor or financing party which is not readily identifiable
or separable without any damage to such item of Collateral, without each
Lender's prior written consent.

            7.3 Liens. Create, incur, assume or suffer to exist any Lien of any
kind upon any Collateral, whether now owned or hereafter acquired, except
Permitted Liens.

            7.4 Other Dispositions of Collateral. Convey, sell, lease or
otherwise dispose of (collectively, a "Transfer") all or any part of the
Collateral to any Person except for (i) Transfers of Financed Equipment in which
Agent shall have released its security interest pursuant to Section 4.3.

            7.5 Distributions. (i) Pay any dividends or make any distributions
on its Equity Securities; (ii) purchase, redeem, retire, defease or otherwise
acquire for value any of its Equity Securities (other than repurchases pursuant
to the terms of stock purchase or stock option plans, restricted stock
agreements or similar arrangements with directors, officers, employees,
consultants or advisors of Borrower in an aggregate amount not to exceed
$250,000); (iii) return any capital to any holder of its Equity Securities as
such; (iv) make any distribution of assets, Equity Securities, obligations or
securities to any holder of its Equity Securities as such (except for the
issuance of stock pursuant to warrants, stock options and similar obligations);
or (v) set apart any sum for any such purpose; provided that Borrower may pay
dividends payable solely in common stock.

            7.6 Mergers or Acquisitions. Except with Lenders' prior written
consent granted in accordance with Section 12.4(c) merge or consolidate with or
into any other Person or acquire all or substantially all of the capital stock
or assets of another Person; provided that (a) if Lenders, in their sole
discretion, decline to grant their consent to any such merger, consolidation or
acquisition within twenty (20) days after written notice from Borrower
describing all material terms of such transaction (to the extent Borrower has
knowledge thereof),

                                       23

<PAGE>

Borrower may, subject to the consummation of such transaction, prepay the Loans
in accordance with Section 2.3(c).

            7.7 Change in Ownership. Engage in or permit any of its Subsidiaries
to engage in any business other than the businesses currently engaged in by
Borrower or reasonably related thereto or have a material change in its
management (other than as disclosed to Lenders in writing prior to the date
hereof) or a change in its ownership of greater than twenty-five percent (25%)
(other than by the sale by Borrower of Borrower's Equity Securities in a public
offering or to venture capital investors so long as Borrower identities to
Lenders the venture capital investors prior to the closing of the investment).

            7.8 Transactions With Affiliates. Enter into any contractual
obligation with any Affiliate or engage in any other transaction with any
Affiliate except upon terms at least as favorable to Borrower as an arms-length
transaction with Persons who are not Affiliates of Borrower.

            7.9 Indebtedness Payments. Repay any notes to officers, directors or
shareholders.

            7.10 Investments. Make any Investment except for Permitted
Investments.

            7.11 Compliance. Become an "investment company" or a company
controlled by an "investment company" under the Investment Company Act of 1940
or undertake as one of its important activities extending credit to purchase or
carry margin stock, or use the proceeds of any Loan for that purpose; fail to
meet the minimum funding requirements of the Employment Retirement Income
Security Act of 1974, and its regulations, as amended from time to time
("ERISA"), permit a Reportable Event or Prohibited Transaction, as defined in
ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or
violate any other law or regulation, if the violation could reasonably be
expected to have a material adverse effect on Borrower's business or operations,
or permit any of its-Subsidiaries to do so.

      8. Events of Default. Any one or more of the following events shall
constitute an event of default (each an "Event of Default") by Borrower under
this Agreement:

            8.1 Failure to Pay. If Borrower fails to pay when due and payable or
when declared due and payable in accordance with the Loan Documents: (i) any
Scheduled Payment within five (5) Business Days of the relevant Payment Date or
the relevant Maturity Date; or (ii) any other portion of the Obligations within
five (5) Business Days after receipt of written notice from a Lender that such
payment is due.

            8.2 Particular Covenant Defaults. If Borrower fails to perform any
obligation under Sections 6.9, 6.10 or 6.12 or violates any of the covenants
contained in Section 7 of this Agreement.

            8.3 Other Covenant Defaults. If Borrower fails or neglects to
perform, keep, or observe any other material term, provision, condition,
covenant, or agreement contained in this Agreement (other than as set forth in
Sections 8.1, 8.2 or 8.4 through 8.13). in any of the other Loan Documents and
Borrower has failed to cure such default within thirty (30) days of the

                                       24

<PAGE>

occurrence of such default. During this 30-day period, the failure to cure the
default is not an Event of Default (but no Loans will be made during the cure
period).

            8.4 Material Adverse Change. If there occurs a material adverse
change in Borrower's business, or if there is a material impairment of the
prospect of repayment of any portion of the Obligations owing to Lenders or a
material impairment of the value or priority of Agent's security interest in the
Collateral.

            8.5 Seizure of Assets, Etc. If any material portion of Borrower's
assets is attached, seized, subjected to a writ or distress warrant, or is
levied upon, or comes into the possession of any trustee, receiver or Person
acting in a similar capacity and such attachment, seizure, writ or distress
warrant or levy has not been removed, discharged or rescinded within thirty (30)
days, or if Borrower is enjoined, restrained, or in any way prevented by court
order from continuing to conduct all or any material part of its business
affairs, or if a judgment or other claim becomes a lien or encumbrance upon any
material portion of Borrower's assets, or if a notice of lien, levy, or
assessment is filed of record with respect to any material portion of Borrower's
assets by the United States Government, or any department, agency, or
instrumentality thereof, or by any state, county, municipal, or governmental
agency, and the same is not paid within thirty (30) days after Borrower receives
notice thereof; provided that none of the foregoing shall constitute an Event of
Default where such action or event is stayed or an adequate bond has been posted
pending a good faith contesting by Borrower.

            8.6 Service of Process. The service of process upon any Lender
seeking to attach by a trustee or other process such funds of Borrower as may be
on deposit or otherwise held by any Lender, or the delivery upon any Lender of a
notice of foreclosure by any Person seeking to attach or foreclose on such funds
of Borrower as may be on deposit or otherwise held by any Lender, or the
delivery of a notice of foreclosure or exclusive control to any entity holding
or maintaining Borrower's deposit accounts or accounts holding securities by any
Person (other than Agent or Lenders) seeking to foreclose or attach any such
accounts or securities.

            8.7 Default on Indebtedness. One or more defaults shall exist under
any agreements with any third party or parties (a) which consists of the failure
to pay any Indebtedness at maturity or (b) which results in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of
Indebtedness which, in the case of either clause (a) or (b) of this Section 8.6,
is in an aggregate amount in excess of One Hundred Thousand Dollars ($100,000)
or a default shall exist under any financing agreement with a Lender or any
Affiliate of a Lender.

            8.8 Undischarged Judgments. If a judgment or judgments for the
payment of money in an amount, individually or in the aggregate, of at least One
Hundred Thousand Dollars ($100,000) shall be rendered against Borrower and shall
remain unsatisfied and unstayed for a period of ten (10) days or more.

            8.9 Misrepresentation. If any material misrepresentation or material
misstatement exists now or hereafter in any warranty, representation, statement,
certification, or report made to Agent or either Lender by Borrower or any
officer, employee, agent, or director of Borrower.

                                       25

<PAGE>

            8.10 Breach of Warrants. If Borrower shall breach any material term
of the Warrants.

            8.11 Unenforceable Loan Document. If any Loan Document shall in any
material respect cease to be, or Borrower shall assert that any Loan Document is
not, a legal, valid and binding obligation of Borrower enforceable in accordance
with its terms.

            8.12 Involuntary Bankruptcy Proceedings. If a proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree
or order for relief in respect of Borrower in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or for the appointment of a receiver, liquidator, assignee, custodian,
trustee (or similar official) of Borrower or for any substantial part of its
property, or for the winding-up or liquidation of its affairs, and such
proceeding shall remain undismissed or unstayed and in effect for a period of
thirty (30) consecutive days or such court shall enter a decree or order
granting the relief sought in such proceeding.

            8.13 Voluntary Petition. If Borrower shall commence a voluntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, shall consent to the entry of an order for relief in an
involuntary case under any such law, or shall consent to the appointment of or
taking possession by a receiver, liquidator, assignee, trustee, custodian (or
other similar official) of Borrower or for any substantial part of its property,
or shall make a general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due, or shall take any corporate
action in furtherance of any of the foregoing.

      9. Agent's and Lenders' Rights and Remedies.

            9.1 Rights and Remedies. Upon the occurrence of any Default or Event
of Default, neither Agent nor Lenders shall have any further obligation to
advance money or extend credit to or for the benefit of Borrower. In addition,
upon the occurrence of an Event of Default, Lenders or Agent on behalf of
Lenders, shall have the rights, options, duties and remedies of a secured party
as permitted by law and, in addition to and without limitation of the foregoing,
Agent or Lenders may, at the election of Lenders, without notice of election and
without demand, do any one or more of the following, all of which are authorized
by Borrower:

                  (a) Acceleration. Declare all Obligations, whether evidenced
by this Agreement, by any of the other Loan Documents, or otherwise, including
(i) all accrued and unpaid Scheduled Payments with respect to each Loan, (ii)
any accrued and unpaid interest, (iii) the Loan Value with respect to each Loan,
and (iv) all other sums, if any, that shall have become due and payable
hereunder, immediately due and payable; provided that upon the occurrence of an
Event of Default described in Section 8.12 or 8.13 all Obligations shall become
immediately due and payable without any action by Agent or Lenders;

                  (b) Protection of Collateral. Make such payments and do such
acts as Agent or Lenders consider necessary or reasonable to protect Agent's
security interest in the Collateral. Borrower agrees to assemble the Collateral
if Agent, on behalf of Lenders, so requires, and to make the Collateral
available to Agent as Agent may designate. Borrower authorizes Agent and its
designees and agents (to the extent Borrower has the legal right to give

                                       26
<PAGE>

such authorization) to enter the premises where the Collateral is located, to
take and maintain possession of the Collateral, or any part of it, and to pay,
purchase, contest, or compromise any Lien which in Lenders' determination
appears or is claimed to be prior or superior to their security interest and to
pay all expenses incurred in connection therewith. With respect to any of
Borrower's owned premises, Borrower hereby grants Agent, on behalf of Lenders, a
license to enter into possession of such premises and to occupy the same,
without charge, for up to one hundred twenty (120) days in order to exercise any
of Agent's or Lenders' rights or remedies provided herein, at law, in equity, or
otherwise;

                  (c) Preparation for Sale. Ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the
manner provided for herein) the Collateral;

                  (d) Sale of Collateral. Sell the Collateral at either a public
or private sale, or both, by way of one or more contracts or transactions, for
cash or on terms, in such manner and at such places (including Borrower's
premises) as Lenders determine are commercially reasonable; and

                  (e) Purchase of Collateral. Credit bid and purchase all or any
portion of the Collateral at any public sale.

Any deficiency that exists after disposition of the Collateral as provided above
will be paid immediately by Borrower.

            9.2 Set Off Right. Agent or Lenders may set off and apply to the
Obligations any and all indebtedness at any time owing to or for the credit or
the account of Borrower.

            9.3 Effect of Sale. Any sale, whether under any power of sale hereby
given or by virtue of judicial proceedings, shall operate to divest all right,
title, interest, claim and demand whatsoever, either at law or in equity, of
Borrower in and to the Property sold, and shall be a perpetual bar, both at law
and in equity, against Borrower, its successors and assigns, and against any and
all Persons claiming the Property sold or any part thereof under, by or through
Borrower, its successors or assigns.

            9.4 Power of Attorney in Respect of the Collateral. Borrower does
hereby irrevocably appoint Agent, on behalf of Lenders, and each Lender (which
appointment is coupled with an interest), the true and lawful attorney in fact
of Borrower with full power of substitution, for it and in its name to file any
notices of security interests, financing statements and continuations and
amendments thereof pursuant to the Code or federal law, as may be necessary to
perfect, or to continue the perfection of Agent's security interests in the
Collateral. Borrower does hereby irrevocably appoint Agent, on behalf of
Lenders, and each Lender (which appointment is coupled with an interest) on the
occurrence of an Event of Default and so long as such Event of Default has not
been waived by Lenders, the true and lawful attorney in fact of Borrower with
full power of substitution, for it and in its name: (a) to ask, demand, collect,
receive, receipt for, sue for, compound and give acquittance for any and all
rents, issues, profits, avails, distributions, income, payment draws and other
sums in which a security interest is granted under Section 4 with full power to
settle, adjust or compromise any claim thereunder as

                                       27
<PAGE>

fully as if Agent or any Lender were a Borrower itself; (b) to receive payment
of and to endorse the name of Borrower to any items of Collateral (including
checks, drafts and other orders for the payment of money) that come into Agent's
or any Lender's possession or under Agent's or any Lender's control; (c) to make
all demands, consents and waivers, or take any other action with respect to, the
Collateral; (d) in Agent's or any Lender's discretion to file any claim or take
any other action or proceedings, either in their own names or in the name of
Borrower or otherwise, which Agent or Lenders may reasonably deem necessary or
appropriate to protect and preserve the right, title and interest of Agent, on
behalf of Lenders, and Lenders in and to the Collateral; (e) to the extent
related to the Collateral or proceeds thereof, endorse Borrower's name on any
checks or other forms of payment or security; (f) make, settle, and adjust all
claims under Borrower's insurance policies; (g) transfer the Collateral into the
name of Agent or any Lender or a third party as the Code permits; or (h) to
otherwise act with respect thereto as though Agent, on behalf of Lenders, or any
Lender were the outright owner of the Collateral, in each case subject to
Agent's and Lenders' duty to act in a commercially reasonable manner and
otherwise in compliance with applicable law, including the Code.

            9.5 Agent's Expenses and Lenders' Expenses. If Borrower fails to pay
any amounts or furnish any required proof of payment due to third persons or
entities, as required under the terms of this Agreement, then Agent may do any
or all of the following: (a) make payment of the same or any part thereof; or
(b) obtain and maintain insurance policies of the type discussed in Section 6.9
of this Agreement, and take any action with respect to such policies as Agent
deems prudent. Any amounts paid or deposited by Agent shall constitute Agent's
Expenses, shall be immediately due and payable, shall bear interest at the then
applicable rate hereinabove provided and shall be secured by the Collateral. Any
payments made by Agent shall not constitute an agreement by Agent to make
similar payments in the future or a waiver by Agent or any Lender of any Event
of Default under this Agreement. Borrower shall pay all reasonable fees and
expenses, including without limitation, Agent's Expenses and Lenders' Expenses,
incurred by Agent or Lenders in the enforcement or attempt to enforce any of the
Obligations hereunder not performed when due.

            9.6 Remedies Cumulative. Agent's and Lenders' rights and remedies
under this Agreement, the Loan Documents, and all other agreements shall be
cumulative. Agent and Lenders shall have all other rights and remedies not
inconsistent herewith as provided under the Code, by law, or in equity. No
exercise by Agent or any Lender of one right or remedy shall be deemed an
election, and no waiver by Lenders of any Event of Default on Borrower's part
shall be deemed a continuing waiver. No delay by Agent or any Lender shall
constitute a waiver, election, or acquiescence by Agent or such Lender or any
other Lender.

            9.7 Application of Collateral Proceeds. The proceeds and/or avails
of the Collateral, or any part thereof, and the proceeds and the avails of any
remedy hereunder (as well as any other amounts of any kind held by Agent, on
behalf of Lenders, at the time of or received by Agent, on behalf of Lenders,
after, the occurrence of an Event of Default hereunder) shall be paid to and
applied, without duplication, as follows:

                  (a) First, to the payment of out-of-pocket costs and expenses,
including all amounts expended to preserve the value of the Collateral, of
foreclosure or suit, if any, and of such sale and the exercise of any other
rights or remedies, and of all proper fees, expenses,

                                       28
<PAGE>

liability and advances, including reasonable legal expenses and attorneys' fees,
incurred or made hereunder by Agent or any Lender, including without limitation,
Agent's Expenses and Lenders' Expenses;

                  (b) Second, to the payment to Lenders of the amount then owing
or unpaid on the Loans for Scheduled Payments, any accrued and unpaid interest,
the Loan Value of the Loans, and all other Obligations with respect to all
Loans; provided that if such proceeds shall be insufficient to pay in full the
whole amount so due, owing or unpaid upon the Loans, then to the unpaid interest
thereon, then to the Loan Value of the Loans, and then to the payment of other
amounts then payable to Lenders under any of the Loan Documents; and

                  (c) Third, to the payment of the surplus, if any, to Borrower,
its successors or assigns, or to whomsoever may be lawfully entitled to receive
the same.

            9.8 Reinstatement of Rights. If Agent or Lenders shall have
proceeded to enforce any right under this Agreement or any other Loan Document
by foreclosure, sale, entry or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason or shall have been determined
adversely, then and in every such case (unless otherwise ordered by a court of
competent jurisdiction), Agent and Lenders shall be restored to their former
position and rights hereunder with respect to the Property subject to the
security interest created under this Agreement.

      10. Waivers; Indemnification.

            10.1 Demand; Protest. Except as otherwise expressly provided herein
or in any other Loan Document, Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment, notice
of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and
guarantees at any time held by Agent or a Lender on which Borrower may in any
way be liable.

            10.2 Agent's Liability for Collateral. So long as Agent complies
with its obligations, if any, under the Code, neither Agent or Lenders shall in
any way or manner be liable or responsible for: (a) the safekeeping of the
Collateral; (b) any loss or damage thereto occurring or arising in any manner or
fashion from any cause other than Lender's gross negligence or willful
misconduct; (c) any diminution in the value thereof; or (d) any act or default
of any carrier, warehouseman, bailee, forwarding agency, or other Person
whomsoever. All risk of loss, damage or destruction of the Collateral shall be
borne by Borrower.

            10.3 Indemnification and Waiver.

                  (a) General Indemnity. Borrower agrees upon demand to pay or
reimburse Lenders and Agent for all liabilities, obligations and out-of-pocket
expenses, including Agent's Expenses and Lenders' Expenses and reasonable fees
and expenses of counsel for Lenders or Agent, from time to time arising in
connection with the enforcement or collection of sums due under the Loan
Documents, and in connection with any amendment or modification of the Loan
Documents or any "work-out" in connection with the Loan Documents. Borrower
shall indemnify, reimburse and hold Lenders and Agent, each of Lenders' and
Agent's partners, and

                                       29
<PAGE>

each of their respective successors, assigns, agents, attorneys, officers,
directors, shareholders, servants, agents and employees (each an "Indemnified
Person") harmless from and against all liabilities, losses, damages, actions,
suits, demands, claims of any kind and nature (including claims relating to
environmental discharge, cleanup or compliance), all costs and expenses
whatsoever to the extent they may be incurred or suffered by such Indemnified
Person in connection therewith (including reasonable attorneys' fees and
expenses), fines, penalties (and other charges of applicable Governmental
Authorities), licensing fees relating to any item of Collateral, damage to or
loss of use of property (including consequential or special damages to third
parties or damages to Borrower's property), or bodily injury to or death of any
person (including any agent or employee of Borrower) (each, a "Claim"), directly
or indirectly relating to or arising out of the use of the proceeds of the
Loans, the falsity of any representation or warranty of Borrower or Borrower's
failure to comply with the terms of this Agreement or any other Loan Document
during the Term. The foregoing indemnity shall cover, without limitation, (i)
any Claim in connection with a design or other defect (latent or patent) in any
item of equipment included in the Collateral, (ii) any Claim for infringement of
any patent, copyright, trademark or other intellectual property right, (iii) any
Claim resulting from the presence on or under or the escape, seepage, leakage,
spillage, discharge, emission or release of any Hazardous Materials on the
premises owned, occupied or leased by Borrower, including any Claims asserted or
arising under any Environmental Law, (iv) any Claim for negligence or strict or
absolute liability in tort, or (v) any Claim asserted as to or arising under any
Landlord Agreement or any Service Provider's Consent; provided that Borrower
shall not indemnify Lenders or Agent for any liability incurred by Lenders or
Agent as a direct result of Lenders' or Agent's gross negligence or willful
misconduct. Such indemnities shall continue in full force and effect,
notwithstanding the expiration or termination of this Agreement. Upon Lenders'
or Agent's written demand, Borrower shall assume and diligently conduct, at its
sole cost and expense, the entire defense of Lenders or Agent, each of its
partners, and each of their respective, agents, employees, directors, officers,
shareholders, successors and assigns against any indemnified Claim described in
this Section 10.3(a). Borrower shall not settle or compromise any Claim against
or involving Lenders or Agent without first obtaining Lenders' or Agent's
written consent thereto, which consent shall not be unreasonably withheld.

                  (b) Waivers. NOTWITHSTANDING ANYTHING TO THE CONTRARY
CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, BORROWER AGREES THAT IT SHALL NOT
SEEK FROM LENDERS OR AGENT UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY
IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES.

                  (c) Survival; Defense. The obligations in this Section 10.3
shall survive payment of all other Obligations pursuant to Section 12.8. At the
election of any Indemnified Person, Borrower shall defend such Indemnified
Person using legal counsel satisfactory to such Indemnified Person in such
Person's reasonable discretion, at the sole cost and expense of Borrower. All
amounts owing under this Section 10.3 shall be paid within thirty (30) days
after written demand.

                                       30
<PAGE>

      11. Notices.

      Unless otherwise provided in this Agreement, all notices or demands by any
party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by certified mail, postage
prepaid, return receipt requested, or by pre-paid nationally recognized
overnight courier or by prepaid facsimile to Borrower or to Lenders, as the case
may be, at their respective addresses set forth below:

     If to Borrower:               Egenera, Inc.
                                   165 Forest Street
                                   Marlboro, Massachusetts 01752
                                   Attention: Thomas Sheehan
                                   Fax: (508) 481-3114
                                   PH: (508) 858-2600

                                   With a copy to:

                                   Lucash, Gesmer & Updegrove, LLP
                                   40 Broad Street
                                   Boston, Massachusetts 02109-4310
                                   Attention: Timothy Lindamood, Esq.
                                   Fax: (617) 350-6878
                                   PH: (617) 350-6800

     If to GV:                     GATX Ventures, Inc.
                                   3687 Mt. Diablo Blvd., Suite 200
                                   Lafayette, California 94549
                                   Attention: Contract Administration
                                   Fax: (925) 258-6020
                                   PH: (925) 258-6000

                                   With a copy to:

                                   GATX Ventures, Inc.
                                   16 Munson Road
                                   Farmington, Connecticut 06032
                                   Attention: Contract Administration
                                   Fax: (860) 284-4350
                                   PH: (860) 284-4300

                                       31
<PAGE>

   If to TCC:    Third Coast Capital, a division of DVI Financial Services Inc.
                 900 North Franklin Street, Suite 850
                 Chicago, Illinois 60610
                 Attention: Managing Director
                 Fax: (312) 337-2567
                 PH: (312) 337-3303

      The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

      12. General Provisions.

            12.1 Successors and Assigns. This Agreement shall bind and inure to
the benefit of the respective successors and permitted assigns of each of the
parties; provided that neither this Agreement nor any rights hereunder may be
assigned by Borrower without each Lender's prior written consent, which consent
may be granted or withheld in such Lender's sole discretion. Each Lender shall
have the right without the consent of or notice to Borrower to sell, transfer,
assign, negotiate, or grant participations in all or any part of, or any
interest in such Lender's rights and benefits hereunder. Agent shall have the
right to resign as Agent hereunder without Borrower's consent and pursuant to
the terms of a separate intercreditor agreement entered into between Lenders.

            12.2 Time of Essence. Time is of the essence for the performance of
all obligations set forth in this Agreement.

            12.3 Severability of Provisions. Each provision of this Agreement
shall be several from every other provision of this Agreement for the purpose of
determining the legal enforceability of any specific provision.

            12.4 Entire Agreement; Construction; Amendments and Waivers.

                  (a) Entire Agreement. This Agreement and each of the other
Loan Documents dated as of the date hereof, taken together, constitute and
contain the entire agreement among Borrower, Agent and Lenders and supersede any
and all prior agreements, negotiations, correspondence, understandings and
communications between the parties, whether written or oral, respecting the
subject matter hereof. Borrower acknowledges that it is not relying on any
representation or agreement made by any Lender or Agent or any employee,
attorney or agent thereof, other than the specific agreements set forth in this
Agreement and the other Loan Documents.

                  (b) Construction. This Agreement is the result of negotiations
between and has been reviewed by each of Borrower, Agent and Lenders executing
this Agreement as of the date hereof and their respective counsel; accordingly,
this Agreement shall be deemed to be the product of the parties hereto, and no
ambiguity shall be construed in favor of or against Borrower, Agent or Lenders.
Borrower, Agent and Lenders agree that they intend the literal

                                       32
<PAGE>

words of this Agreement and the other Loan Documents and that no parol evidence
shall be necessary or appropriate to establish Borrower's, Agent's or any
Lender's actual intentions.

                  (c) Amendments and Waivers. Any and all amendments,
modifications, discharges or waivers of, or consents to any departures from any
provision of this Agreement or of any of the other Loan Documents shall not be
effective without the written consent of Borrower, Agent and (i) so long as any
Loan shall be outstanding, Lenders holding in the aggregate at least seventy
percent (70%) of the then outstanding principal amount of the Loans, or (ii) if
no Loan is then outstanding, Lenders whose aggregate Commitments constitute at
least seventy percent (70%) of the aggregate Commitments of all Lenders;
provided that the written consent of each Lender shall be required in the case
of any extension of the Commitment Termination Date, any change to the Repayment
Period applicable to any Loan, any change affecting the interest rate applicable
to any Loan, or any release of any Collateral. Any waiver or consent with
respect to any provision of the Loan Documents shall be effective only in the
specific instance and for the specific purpose for which it was given. No notice
to or demand on Borrower in any case shall entitle Borrower to any other or
further notice or demand in similar or other circumstances. Any amendment,
modification, waiver or consent effected in accordance with this Section 12.4
shall be binding upon Agent, each Lender and on Borrower.

            12.5 Reliance by Agent and Lenders. All covenants, agreements,
representations and warranties made herein by Borrower shall be deemed to be
material to and to have been relied upon by Lenders, notwithstanding any
investigation by Lenders.

            12.6 No Set-Offs by Borrower. All sums payable by Borrower pursuant
to this Agreement or any of the other Loan Documents shall be payable without
notice or demand and shall be payable in United States Dollars without set-off
or reduction of any manner whatsoever.

            12.7 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, shall be deemed to be an original, and all of
which, when taken together, shall constitute but one and the same Agreement.

            12.8 Survival. All covenants, representations and warranties made in
this Agreement shall continue in full force and effect so long as any
Obligations or commitment to fund remains outstanding. The obligations of
Borrower to indemnify Lenders with respect to the expenses, damages, losses,
costs and liabilities described in Section 10.3 shall survive until all
applicable statute of limitations periods with respect to actions that may be
brought against Lenders have run.

      13. Relationship of Parties. Borrower, Agent and each Lender acknowledge,
understand and agree that the relationship between Borrower, on the one hand,
and Agent and Lenders, on the other, is, and at all times shall remain solely
that of a borrower and lenders. Neither Agent nor any Lender shall under any
circumstances be construed to be partners or joint venturers of Borrower or any
of its Affiliates; nor shall Agent or any Lender under any circumstances be
deemed to be in a fiduciary relationship with Borrower or any of its Affiliates,
or to owe any fiduciary duty to Borrower or any of its Affiliates. Neither Agent
nor any Lender undertakes or assumes any responsibility or duty to Borrower or
any of its Affiliates to select, review, inspect,

                                       33
<PAGE>

supervise, pass judgment upon or otherwise inform Borrower or any of its
Affiliates of any matter in connection with its or their Property, any
Collateral held by Agent or the operations of Borrower or any of its Affiliates.
Borrower and each of its Affiliates shall rely entirely on their own judgment
with respect to such matters, and any review, inspection, supervision, exercise
of judgment or supply of information undertaken or assumed by Agent or any
Lender in connection with such matters is solely for the protection of Agent or
such Lender and neither Borrower nor any Affiliate is entitled to rely thereon.

      14. Confidentiality. All information (other than periodic reports filed by
Borrower with the Securities and Exchange Commission) disclosed by Borrower to
Lenders in writing or through inspection pursuant to this Agreement that a
reasonable person would understand to be confidential shall be considered
confidential. Lenders agree to use the same degree of care to safeguard and
prevent disclosure of such confidential information as Lenders uses with its own
confidential information, but in any event no less than a reasonable degree of
care. Lenders shall not disclose such information to any third party (other than
(i) to another Lender or a Lender's partners, attorneys, governmental
regulators, or auditors, or to a Lender's subsidiaries and affiliates, all
subject to the same confidentiality obligation set forth herein, (ii) to
prospective transferees and purchasers of the Loans; provided that such any such
transferee or purchaser shall have agreed in writing to be bound by the terms of
this Section 14 or substantially similar restrictions, and (iii) as required by
law, regulation, subpoena or other order to be disclosed) and shall use such
information only for purposes of evaluation of its investment in Borrower and
the exercise of Lenders' rights and the enforcement of their remedies under this
Agreement and the other Loan Documents. The obligations of confidentiality shall
not apply to any information that (a) was known to the public prior to
disclosure by Borrower under this Agreement, (b) becomes known to the public
through no fault of Lenders, (c) is disclosed to Lenders by a third party having
a legal right to make such disclosure, or (d) is independently developed by
Lenders. Notwithstanding the foregoing, Lenders' agreement of confidentiality
shall not apply with respect to Collateral to which any Lender has acquired
indefeasible title or, solely to the extent necessary, in connection with any
enforcement or exercise of Lenders' rights and remedies under this Agreement
following an Event of Default, including the enforcement of Agent's security
interest in the Collateral. As used in this Section 14, the term "Lenders" shall
be deemed to include both Lenders and Agent in their respective capacities as
such.

      15. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. BORROWER, AGENT
AND EACH LENDER HEREBY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS LOCATED IN THE NORTHERN DISTRICT OF CALIFORNIA. BORROWER, AGENT
AND EACH LENDER HEREBY WAIVES THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS
OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

                                       34
<PAGE>

                  [Remainder of page intentionally left blank.]

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

                                       EGENERA, INC.,
                                       as Borrower

                                       By: /s/ Thomas F. Sheehon
                                           -------------------------------------
                                       Title: CFO

                                       GATX VENTURES, INC., as Agent and as
                                       a Lender

                                       By: /s/ Robert D. Pomeroy, Jr.
                                           -------------------------------------
                                       Title: Senior Vice President

                                       THIRD COAST CAPITAL, a division of
                                       DVI Financial Services Inc., as a Lender

                                       By: /s/ W.B. Wheatley
                                           -------------------------------------
                                       Title: Managing Director

                                       35
<PAGE>

LIST OF EXHIBITS AND SCHEDULES

Exhibit A        Disclosure Schedule

Exhibit B        Form of Warrant

Exhibit C        Form of Loan Agreement Supplement

Exhibit D        Form of Legal Opinion

Exhibit E        Form of Landlord Agreement

Exhibit F        Form of Service Provider's Consent

Exhibit G        Form of Officer's Certificate<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                                                   EXHIBIT 10.14

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                               <C>
ARTICLE 1: REFERENCE DATA AND DEFINITIONS ....................................     5

1.01: REFERENCE DATA .........................................................     5
1.02: GENERAL PROVISIONS .....................................................     6
1.03: TERMS DEFINED ..........................................................     7

ARTICLE 2: PREMISES ..........................................................    13

2.01: PREMISES ...............................................................    13
2.02: APPURTENANCES ..........................................................    13

ARTICLE 3: TERM ..............................................................    14

3.01: TERM COMMENCEMENT ......................................................    14
3.02: TERMINATION ............................................................    14

ARTICLE 4: RENT ..............................................................    14

4.01: BASIC RENT .............................................................    14
4.02: COMPUTATION OF BASIC RENT ..............................................    14

ARTICLE 5: USE OF PREMISES ...................................................    14

5.01: USE RESTRICTED .........................................................    14

ARTICLE 6: TAXES; OPERATING EXPENSES; ESTIMATED COST OF ELECTRICAL SERVICES ..    14

6.01: EXPENSES AND TAXES .....................................................    14
6.02: ANNUAL STATEMENT OF ADDITIONAL RENT DUE ................................    15
6.03: MONTHLY PAYMENTS OF ADDITIONAL RENT ....................................    15
6.04: ACCOUNTING PERIODS .....................................................    15
6.05: ABATEMENT OF TAXES .....................................................    15
6.06: LATE PAYMENT OF RENT ...................................................    16

ARTICLE 7: IMPROVEMENTS, REPAIRS, ADDITIONS, REPLACEMENTS ....................    16

7.01: PREPARATION OF THE PREMISES ............................................    16
7.02: INTENTIALLY OMITTED ....................................................    16
7.03: DELAYS .................................................................    16
7.04: TENANT'S ACCESS TO PREMISES ............................................    16
7.05: ALTERATIONS AND IMPROVEMENTS ...........................................    17
7.07: MAINTENANCE ............................................................    18
7.08: REDELIVERY .............................................................    18

ARTICLE 8: BUILDING SERVICES .................................................    18

8.01: BUILDING SERVICES ......................................................    18
8.02: OTHER JANITORS .........................................................    18
8.03: ADDITIONAL SERVICES ....................................................    18
8.04: LIMITATIONS ON LANDLORD'S LIABILITY ....................................    18
8.05: ELECTRIC SERVICE .......................................................    19

ARTICLE 9: TENANT'S PARTICULAR COVENANTS .....................................    19

9.01: PAY RENT ...............................................................    19
9.02: OCCUPANCY OF THE PREMISES ..............................................    19
9.03: SAFETY .................................................................    19
9.04: EQUIPMENT ..............................................................    19
9.05: ELECTRICAL EQUIPMENT ...................................................    20
9.06: PAY TAXES ..............................................................    20
9.07: TENANT'S COVENANTS .....................................................    20

ARTICLE 10: REQUIREMENTS OF PUBLIC AUTHORITY .................................    20
</TABLE>

                                        2
<PAGE>

<TABLE>
<S>                                                                               <C>
10.01: LEGAL REQUIREMENTS ....................................................    20
10.02: CONTESTS ..............................................................    20

ARTICLE 11: COVENANT AGAINST LIENS ...........................................    21

11.01: MECHANICS LIENS .......................................................    21
11.02: RIGHT To DISCHARGE ....................................................    21

ARTICLE 12: ACCESS TO PREMISES ...............................................    21

12.01: ACCESS ................................................................    21

ARTICLE 13: ASSIGNMENT AND SUBLETTING; OCCUPANCY ARRANGEMENTS ................    21

13.01: SUBLETTING AND ASSIGNMENT .............................................    21

ARTICLE 14: INDEMNITY ........................................................    22

14.01: TENANT'S INDEMNITY ....................................................    22
14.02: LANDLORD'S LIABILITY ..................................................    22

ARTICLE 15: INSURANCE ........................................................    23

15.01: LIABILITY INSURANCE ...................................................    23
15.02: CASUALTY INSURANCE ....................................................    23

ARTICLE 16: WAIVER OF SUBROGATION ............................................    23

16.01: WAIVER OF SUBROGATION .................................................    23
16.02: WAIVER OF RIGHTS ......................................................    23

ARTICLE 17: DAMAGE OR DESTRUCTION ............................................    24

17.01: SUBSTANTIAL DAMAGE ....................................................    24
17.02: RESTORATION ...........................................................    24

ARTICLE 18: EMINENT DOMAIN ...................................................    24

18.01: TOTAL TAKING ..........................................................    24
18.02: PARTIAL TAKING ........................................................    24
18.03: AWARDS AND PROCEEDS ...................................................    25

ARTICLE 19: QUIET ENJOYMENT ..................................................    25

19.01: LANDLORD'S COVENANT ...................................................    25
19.02: SUBORDINATION .........................................................    25
19.03: NOTICE TO MORTGAGEE ...................................................    25
19.04: OTHER PROVISIONS REGARDING MORTGAGEES .................................    26

ARTICLE 20: DEFAULTS; EVENTS OF DEFAULT ......................................    26

20.01: DEFAULTS ..............................................................    26
20.02: TENANT'S BEST EFFORTS .................................................    26
20.03: ELIMINATION OF DEFAULT ................................................    27

ARTICLE 21: INSOLVENCY .......................................................    27

21.01: INSOLVENCY ............................................................    27

ARTICLE 22: LANDLORD'S REMEDIES; DAMAGES ON DEFAULT ..........................    27

22.01: LANDLORD'S REMEDIES ...................................................    27
22.02: SURRENDER .............................................................    27
22.03: RIGHT TO RELET ........................................................    28
22.04: SURVIVAL OF COVENANTS .................................................    28
22.05: RIGHT TO EQUITABLE RELIEF .............................................    29
22.06: RIGHT TO SELF HELP; INTEREST ON OVERDUE RENT ..........................    29
22.07: FURTHER REMEDIES ......................................................    29
</TABLE>

                                       3
<PAGE>

<TABLE>
<S>                                                                               <C>
ARTICLE 23:  WAIVERS .........................................................    29

23.01: NO WAIVERS ............................................................    29

ARTICLE 24: SECURITY DEPOSIT .................................................    30

24.01: SECURITY DEPOSIT ......................................................    30

ARTICLE 25: GENERAL PROVISIONS ...............................................    30

25.01: FORCE MAJEURE .........................................................    30
25.02: NOTICES AND COMMUNICATIONS ............................................    30
25.03: CERTIFICATES, ESTOPPEL LETTER .........................................    31
25.04: RENEWAL ...............................................................    31
25.05: GOVERNING LAW .........................................................    31
25.06: PARTIAL INVALIDITY ....................................................    31
25.07: INTERPRETATION; CONSENTS ..............................................    32
25.08: BIND AND INURE; LIMITATION OF LANDLORD'S LIABILITY ....................    32
25.09: PARTIES ...............................................................    32
25.10: WAIVER OF TRIAL BY JURY ...............................................    32

ARTICLE 26: MISCELLANEOUS ....................................................    33

26.01: HOLDOVER CLAUSE .......................................................    33
26.02: RIGHT OF FIRST REFUSAL ................................................    33
26.03: SIGNAGE ...............................................................    33
26.04: BROKERAGE .............................................................    33

ARTICLE 27: ENTIRE AGREEMENT .................................................    34

27.01: ENTIRE AGREEMENT ......................................................    34

EXHIBIT A: (PLAN SHOWING TENANT'S SPACE) .....................................    35

EXHIBIT B: (LANDLORD'S WORK) .................................................    36

EXHIBIT C: MEMORANDUM OF WORK AND INSTALLATIONS ..............................    37

EXHIBIT D: AGREEMENT .........................................................    41

EXHIBIT E: SERVICE TO BE PROVIDED BY LANDLORD (AS OPERATING EXPENSES) ........    43

EXHIBIT F: RULES AND REGULATIONS .............................................    45

EXHIBIT G: ESTOPPEL CERTIFICATE ..............................................    47
</TABLE>

                                       4
<PAGE>

165 FOREST STREET - MARLBOROUGH, MASSACHUSETTS

                                                    OFFICE LEASE - STANDARD FORM

THIS LEASE ("Lease") made in Marlborough, Massachusetts, by and between 165
Forest Street Realty Trust of 1992 a duly organized and existing Massachusetts
Realty Trust ("Landlord") having a principal place of business c/o Rosewood
Development Corporation at 293 Boston Post Road West, Suite 320, Marlborough,
Massachusetts 01752, and Egenera, Inc. a duly organized and existing
Massachusetts Corporation ("Tenant") having a principal place of business at 563
Main Street, Bolton, MA 01740.

                                   WITNESSETH:

ARTICLE 1: REFERENCE DATA AND DEFINITIONS

1.01: REFERENCE DATA

LANDLORD'S REPRESENTATIVE:                David P. Depietri
                                          Rosewood Development Corporation

LANDLORD'S ADDRESS:                       165 Forest Street Realty Trust of 1992
(For Payment of Rent)                     c/o Rosewood Development Corporation
                                          Suite 320
                                          293 Boston Post Road West
                                          Marlborough, MA 01752

LANDLORD'S ADDRESS:                       Same As Above
(For Notice and Billing)

TENANT:                                   Egenera, Inc.

TENANT'S REPRESENTATIVE:                  Vern J, Brownell

TENANT'S PHONE NUMBER:                    (978) 779-6800

TENANT'S FAX NUMBER:                      (978) 779-9730

PREMISES:                                 The portion of the
                                          Building known as Suites
                                          200, 300 and 400 as shown
                                          on Exhibit A attached
                                          hereto.

RENTABLE AREA OF PREMISES:                31,277 rentable square feet.

RENTABLE AREA OF THE BUILDING:            48,959 rentable square feet

                                       5
<PAGE>

TERM COMMENCEMENT DATE:        The date upon which the Landlord shall deliver
                               the entire Premises to Tenant free of all tenants
                               and occupants, subject to the provisions of
                               Section 2.01 hereof, which is estimated on or
                               before January 1, 2001.

RENT COMMENCEMENT DATE:        Upon the Term Commencement Date.

LEASE TERM:                    Ten (10) years (plus the partial month, if any,
                               immediately following the Term
                               Commencement Date)

BASIC RENT:                    See Schedule Below

<TABLE>
<CAPTION>
YEARS    RATE PER SQ. FT.   ANNUAL RENT    MONTHLY RENT
-----    ----------------   -----------    ------------
<S>      <C>                <C>            <C>
 1-5          $21.00        $656,817.00     $54,734.75
 6-10         $22.00        $688,094.00     $57,341.17
</TABLE>

<TABLE>
<S>                                       <C>
COST OF ELECTRICAL SERVICE:               Tenant to be separately metered for electrical
                                          service.

INITIAL MONTHLY PAYMENT, (Basic Rent):    $54,734.75

REAL ESTATE TAX BASE:                     $1.67

OPERATING EXPENSE BASE:                   $2.45

TENANT'S SHARE:                           63.88%

SECURITY DEPOSIT:                         $800,000.00 (see article 24.01)

GUARANTOR:                                N/A

PERMITTED USES:                           General Office and computer lab uses which
                                          are consistent with a first class office building.
</TABLE>

1.02: GENERAL PROVISIONS

For all purposes of the Lease unless otherwise expressed and provided herein or
therein or unless the context otherwise requires:

      a)    The words herein, hereof, hereunder and other words of similar
            import refer to the Lease as a whole and not to any particular
            article, section or other subdivision of this Lease.

      b)    A pronoun in one gender includes and applies to the other genders as
            well.

                                       6
<PAGE>

      c)    Each definition stated in Section 1.01 or 1.03 of this Lease applies
            equally to the singular and the plural forms of the term or
            expression defined.

      d)    Any reference to a document defined in Section 1.03 of this Lease is
            to such document as originally executed, or, if modified, amended or
            supplemented in accordance with the provisions of this Lease, to
            such document as so modified, amended or supplemented and in effect
            at the relevant time of reference thereto.

      e)    All accounting terms not otherwise defined herein have the meanings
            assigned to them in accordance with generally accepted accounting
            principles.

      f)    All references in Section 1.01 hereof are subject to the specified
            definitions thereof (if any) in Section 1.03 hereof.

1.03: TERMS DEFINED

Each term or expression set forth above in Section 1.01 hereof or below in this
Section 1.03 has the meaning stated immediately after it.

ADDITIONAL SERVICES: Services provided to Tenant or in respect to the Premises
which are not described in Exhibit E hereto.

ADJUSTED OPERATING EXPENSE BASE: The amount determined by multiplying the
Operating Expense Base by the Adjustment Factor.

ADJUSTED TAX BASE: The amount determined by multiplying the Real Estate Tax Base
by the Adjustment Factor. -

ADJUSTMENT FACTOR: With respect to the First Calendar Year and the Last Calendar
Year, the percentage computed by dividing (i) the number of days of each such
period falling within the Lease term by (ii) 365.

AFFILIATE: With respect to any specified person, any other person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person. For the purposes of this definition, the
term control when used with respect to any specified person means the power to
direct the management and policies of such person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise,
and the terms controlling and controlled by have meanings correlative to the
foregoing.

AUTHORIZATIONS: All franchises, licenses, permits and other governmental
consents issued by Governmental Authorities pursuant to Legal Requirements which
are or may be required for the use and occupancy of the Premises and the conduct
or continuation of a Permitted Use therein.

BASIC SERVICES: The services described in Exhibit E hereto.

BUILDING: The building located at 165 Forest Street, Marlborough, Massachusetts.

                                       7
<PAGE>

BUILDING STANDARD TENANT FINISHES: The standards set by Landlord for the quality
of work done on the Premises described in Exhibit B.

BUSINESS DAY: A day which is not a Saturday, Sunday or other day on which banks
in Boston, Massachusetts, are authorized or required by law or executive order
to remain closed.

CALENDAR YEAR: The First Calendar Year; the Last Calendar Year and full calendar
year (January 1 through December 31) occurring during the Lease Term.

COMMON AREAS: All areas devoted to the common use of occupants of the Building
or the provision of Services to the Building, including but not limited to the
atrium, all corridors, elevator foyers, air shafts, elevator shafts, and
elevators, stairwells and stairs, mechanical rooms, janitor closets, vending
areas and other similar facilities for the provision of Services or the use of
all occupants of multi-tenant floors or all occupants of the Building together
with all walkways and driveways necessary or appropriate for access to the
Building and the parking areas serving the Building.

CONTROL: As defined in the definition of Affiliate.

CORPORATION: A corporation, company, association, business trust or similar
organization wherever formed.

DEFAULT: Any event or condition specified in Article 20 hereof so long as any
applicable requirement for the giving of notice or lapse of time or both have
not been fulfilled.

EVENT OF DEFAULT: Any event or condition specified in (a) Article 20 hereof (if
all applicable periods for the giving of notice or lapse of time or both have
been fulfilled) or (b) in Article 21 hereof.

FIRST CALENDAR YEAR: The partial Calendar Year period commencing on the Term
Commencement Date and ending on the next succeeding December 31.

FORCE MAJEURE: Acts of God, strikes, lock outs, labor troubles, inability to
procure materials, failure of power, restrictive Legal Requirements, riots and
insurrection, acts of public enemy, wars, earthquakes, hurricanes and other
natural disasters, fires, explosions, any act, failure to act or Default of the
other party to this Lease; provided, however, lack of money shall not be deemed
such a cause.

GENERAL CONTRACTOR; N/A

GOVERNMENTAL AUTHORITY: United States of America, the Commonwealth of
Massachusetts, the town of Marlborough, County of Middlesex and any political
subdivision thereof and any agency, department, commission, board, bureau or
instrumentality of any of them.

INSOLVENCY: The occurrence with respect to any Person of one or more of the
following events: the death, dissolution, termination of existence (other than
by merger or consolidation), insolvency, appointment of a receiver for all or
substantially all of the property of such person, the making of a fraudulent
conveyance or the execution of an assignment or trust mortgage for

                                       8
<PAGE>

the benefit of creditors by such Person, or the filing of a petition of
bankruptcy or the commencement of any proceedings by or against such Person
under a bankruptcy, insolvency or other law relating to the relief or the
adjustment of indebtedness, rehabilitation or reorganization of debtors;
provided that if such petition or commencement is involuntarily made against
such a Person and is dismissed within sixty (60) days of the date of such filing
or commencement, such events shall not constitute an insolvency hereunder.

INSURANCE REQUIREMENTS: All terms of any policy of insurance maintained by
Landlord or Tenant and applicable to (or affecting any condition, operation, use
or occupancy of) the Building or the Premises or any part or parts of either and
all requirements of the issuer of any such policy and all orders, rules,
regulations and other requirements of the National Board of Fire Underwriters
(or any other body exercising similar functions).

LAND: The land on 165 Forest Street, Marlborough, Massachusetts, County of
Middlesex, Commonwealth of Massachusetts.

LANDLORD'S CONTRIBUTION: The amount contributed by Landlord as a credit toward
the cost of finishing the Premises shown on Exhibit B.

LANDLORD'S WORK: The work to be done by Landlord with respect to the Premises
described on Exhibit B.

LAST CALENDAR YEAR: The partial Calendar Year commencing on January 1 of the
Calendar Year in which the Lease Termination Date occurs and ending on the Lease
Termination Date.

LEASE TERM: The period commencing on the Term Commencement Date and ending on
the Lease Termination Date.

LEASE TERMINATION DATE: The earlier to occur of (1) the Stated Expiration Date,
(2) the termination of this Lease by Landlord as the result of an Event of
Default, (3) the termination of this Lease pursuant to Article 17 (Damage or
Destruction) or 18 (Eminent Domain) hereof.

LEASE YEAR: A period commencing on the Term Commencement Date (or an anniversary
thereof) and ending on the day before the next succeeding anniversary thereof.
For example, the first Lease Year is a period commencing on the Term
Commencement Date and ending on the day before the first anniversary thereof.
The last Lease Year shall end on the Lease Termination Date.

LEGAL REQUIREMENTS: All statutes, codes, ordinances (and all rules and
regulations hereunder), all executive orders and other administrative orders,
judgments, decrees, injunctions and other judicial orders of or by any
Governmental Authority which may at any time be applicable to parts or
appurtenances of the Premises or Building or to any condition or use thereof and
the provisions of all Authorizations.

                                       9
<PAGE>

OCCUPANCY ARRANGEMENT: With respect to the Premises or any portion thereof of
the Lease, and whether (a) written or unwritten or (b) for all or any portion of
the Lease Term, an assignment, a sublease, any tenancy at will, a tenancy at
sufferance, or any other arrangement (including but not limited to a license or
concession) pursuant to which a Person occupies the Premises for any purpose.

OPERATING EXPENSE BASE: With respect to each Calendar Year the amount determined
by multiplying the Rentable Area of the Premises by the amount hereinbefore set
forth as the Operating Expense Base per square foot of Rentable Area of the
Building per year, but with respect to the First Calendar Year and the Last
Calendar Year, the Adjusted Operating Expense Base.

OPERATING EXPENSES: All expenses, costs, and disbursements of every kind and
nature which Landlord shall pay or become obligated to pay in connection with
the ownership, operation and maintenance of the Building (including all
facilities in operation on the Term Commencement Date and such additional
facilities which are necessary or beneficial for the operation of the Building)
and the Land and the provision of Basic Services, including, but not limited to
(a) wages, salaries, fees and costs to Landlord of all Persons engaged in
connection therewith, including taxes, insurance, and benefits relating thereto;
(b) the cost of (i) all supplies and materials, electricity and lighting, for
Common Areas, (ii) water, heat, air conditioning, and ventilating for the
Building, (iii) all maintenance, janitorial, and service agreements, (iv) all
insurance, including the cost of casualty and liability insurance applicable to
the Building and Landlord's personal property used in connection therewith, (v)
repairs and general maintenance, (vi) capital items which are primarily for the
purpose of reducing Operating Expenses or which may be required by a
Governmental Authority, amortized over the reasonable life of the capital items
with the reasonable life and amortization schedule being determined by Landlord
in accordance with generally accepted accounting principles (provided that in
the event the reasonably estimated annual savings arising from the installation
of any such capital improvement shall exceed such annual amortization, Operating
Expenses shall include, in lieu of such amortization, such estimated annual
savings until the cost of such improvement shall have been completely
amortized), (vii) pursuing an application for an abatement of taxes pursuant to
Section 6.05 hereof to the extent not deducted from the abatement, if any,
received, and (viii) providing office space for the manager of the Building; (c)
management fees which shall not exceed 5% of the gross rent and only to the
extent that inclusion of such fees does not result in duplication of any
expenses, costs or disbursements otherwise included in Operating Expenses); and
(d) a share (equal to percentage computed by a fraction the numerator of which
is the Rentable Area of the Building and the denominator of which is the
aggregate Rentable Area of all constructed buildings (including the Building at
165 Forest Street), of the cost to Landlord of operating, repairing and
maintaining exterior common areas and facilities which may not be located
entirely on the Land but which are available for landscaping, security and
maintenance for common roadways and open areas. Operating Expenses shall not
include (i) capital items except as provided above or (ii) specific costs billed
to and paid by specific tenants. Operating Expenses shall be determined using
the accrual basis of accounting. If at any time during the term, less than
ninety-five percent (95%) of the Rentable Area of the project is occupied, the
Operating Expenses shall be adjusted by the Landlord to reasonably approximate
the Operating Expenses which would be incurred if the project had been at least
ninety-five percent (95%) occupied.

                                       10
<PAGE>

PARTIAL TAKING: Any Taking which is not a Total Taking

PERMITTED EXCEPTIONS: Any liens or encumbrances on the Premises which do not
substantially interfere with Tenant's use and enjoyment of the Premises in the
nature of (a) liens for taxes assessed but not yet due and payable, (b)
easements, reservations, restrictions and rights of way encumbering or affecting
the Land on the date of this Lease, (c) the rights of Landlord, Tenant and any
other Person to whom Landlord has granted such rights to exercise in common with
respect to the Land and the Common Areas the rights granted to Tenant hereunder,
(d) mortgages of record, and (e) Title Conditions.

PERSON: An individual, a Corporation, a company, a voluntary association, a
partnership, a trust, an unincorporated organization or a government or any
agency, instrumentality or political subdivision thereof.

PREMISES: The space in the Building shown on Exhibit A attached hereto.

PROCEEDS: With respect to any Taking or occurrence described in Article 17
hereof, with respect to which any Person is obligated to pay any amount to or
for the account of Landlord, the aggregate of (i) all sums payable or receivable
under or in respect of any insurance policy, and (ii) all sums or awards payable
in respect to a Taking.

PROHIBITED OCCUPANCY ARRANGEMENT: An Occupancy Arrangement which provides for
any rent or other payment based in whole or in part on the net income or profits
derived by any person from the Premises.

REAL ESTATE TAX BASE: With respect to each Calendar Year the amount determined
by multiplying the Rentable Area of the Premises by the amount hereinbefore set
forth as the Real Estate Tax Base per square foot of Rentable Area of the
Premises per year, but with respect to the First Calendar Year and the Last
Calendar Year, the Adjusted Tax Base.

RENT: Basic Rent and all Additional Rent.

RENTABLE AREA OF THE PREMISES: The number of square feet stated in Section 1.01,
whether the same should be more or less as a result of minor variations
resulting from actual construction and completion of the Building or Premises so
long as such work is done in accordance with the terms and provisions hereof.
The calculation was made according to the following formula:

      i.    On single tenant floors, the usable area measured from the inside
            surfaces of the outer glass of the Building, plus Tenant's Share of
            Common Areas.

      ii.   On multi-tenant floors, the usable area measured from the inside
            surface of the outer glass of the Building to the midpoint of all
            demising walls of the space being measured plus the area of each
            corridor adjacent to and required as the result of the layout of the
            space being measured, measured from the midpoint of the adjacent
            demising walls, plus Tenant's Share of Common Areas.

                                       11
<PAGE>

RULES AND REGULATIONS: Reasonable rules and regulations promulgated by Landlord
and uniformly applicable to persons occupying the Building regulating the
details of the operation and use of the Building. The initial Rules and
Regulations are attached hereto as Exhibit F.

SERVICES: Basic Services and Additional Services.

SPECIAL WORK: Work done in or with respect to the Premises which is not part of
Landlord's Work or the cost of which exceeds Landlord's Contribution.

STATED EXPIRATION DATE: The last day of the last Lease Year of the Term stated
in Section 1.01.

SUBSTANTIAL COMPLETION DATE: The date on which the Premises together with the
appurtenant areas of the Building necessary for access and service thereto, have
been completed in accordance with Article 7 hereof except for items of work and
adjustment of equipment and fixtures which are not necessary to make the
Premises reasonably tenantable and suitable for the Permitted Uses and because
of season or weather or nature of the item cannot practicably be done at the
time.

TAKING: The taking or condemnation of title to all or any part of the Land or
the possession or use of the Building or the Premises by a person for any public
use or purpose or any proceeding or negotiations which might result in such a
taking or any sale or lease in lieu of or in anticipation of such a taking.

TAXES: All taxes, special or general assessments, water rents, rates and
charges, sewer rents and other impositions and charges imposed by Governmental
Authorities of every kind and nature whatsoever, extraordinary as well as
ordinary and each and every installment thereof which shall or may during the
term of this Lease be charged, levied, laid, assessed, imposed, and become due
and payable or become liens upon or for or with respect to the Land or any part
thereof or the Building or the Premises, appurtenances or equipment owned by
Landlord thereon or therein or any part thereof or on this Lease under or by
virtue of all present or future Legal Requirements and are tax based on a
percentage, fraction or capitalized value of the Rent (whether in lieu of or in
addition to the taxes hereinbefore described). Taxes shall not include
inheritance, estate, excise, succession, transfer, gift, franchise, income,
gross receipt, or profit taxes except to the extent such are in lieu of or in
substitution for Taxes as now imposed on the Building, the Land, the Premises or
this Lease.

TENANT: As defined in the preamble hereof.

TENANT'S COST: The cost of work done in connection with the completion of the
Premises in excess of (i) the cost of Landlord's Work and (ii) Landlord's
Contribution.

TENANT'S SHARE: Tenant's share of building is equal to T divided by B, where "T"
is equal to the number of rentable square feet rented by the Tenant and "B" is
equal to 100% of the total rentable square feet of the building.

TERM COMMENCEMENT DATE: The date set forth in Section 1.01 as the Term
Commencement Date.

                                       12
<PAGE>

TITLE CONDITIONS: All covenants, agreements, restrictions, easements and
declarations of record on the date hereof which are permitted Exceptions so far
as the same may be from time to time in force and applicable.

TOTAL TAKING: (i) a Taking of: (a) the fee interest in all or substantially all
of the Building or (b) such title to, easement in, over, under or such rights to
occupy and use any part or parts of the Building to the exclusion of Landlord as
shall have the effect, in the good faith judgment of the Landlord, of rendering
the portion of the Building remaining after such Taking (even if restoration
were made) unsuitable for the continued use and occupancy of the Building for
the Permitted Uses or (ii) a Taking of all or substantially all of the Premises
or such title to or easement in, on or over the Premises to the exclusion of
Tenant which in the good faith judgment of the Landlord prohibits access to the
Premises or the exercise by Tenant of any rights under this Lease.

WORK LETTER: The agreement between Landlord and Tenant with respect to the
finishing of the Premises.

WORKING DRAWINGS: The Working Drawings for the finishing of the Premises
developed by Landlord and Tenant in accordance with the Work Letter. The Working
Drawings shall be prepared in compliance with all applicable Legal Requirements
and stamped by registered Massachusetts professionals, and shall consist of all
architectural and engineering plans which are required to finish the Premises or
to obtain any Authorization required therefore.

ARTICLE 2: PREMISES

2.01: PREMISES

Landlord hereby leases and lets to Tenant, and Tenant hereby takes and hires
from Landlord, upon and subject to the terms, conditions, covenants and
provisions hereof, the Premises subject to the Permitted Exceptions. Landlord
reserves the right to relocate within or without the Premises pipes, ducts,
vents, flues, conduits, wires and appurtenant fixtures which service other parts
of the Building; provided that such work is done in such a manner that it does
not unreasonably interfere with Tenant's use of the Premises either during the
course of performing such work or upon completion thereof. Landlord shall
deliver the Premises to Tenant free of all tenants and occupants on or before
January 1, 2001; however, if for any reason delivery of the premises to Tenant
is delayed beyond February 1, 2001 Tenant shall have the right to terminate
this Lease by notice to Landlord given at any time thereafter. In the event of
such termination, Landlord shall return the Security Deposit to Tenant within
(10) days following the giving of such termination notice. Landlord agrees upon
request by Tenant to execute and deliver a notice of lease in recordable form
and a commencement date agreement confirming the Term Commencement Date.

2.02: APPURTENANCES

Tenant may use the Common Areas and the Land as appurtenant to the Premises for
the purposes for which they were designed.

                                       13
<PAGE>

ARTICLE 3: TERM

3.01: TERM COMMENCEMENT

The Lease Term shall commence on the Term Commencement Date as defined in
Section 1.01.

3.02: TERMINATION

The Lease Term shall end on the Lease Termination Date.

ARTICLE 4: RENT

4.01: BASIC RENT

Tenant shall pay Landlord for the Premises, without offset or deduction and
without previous demand therefore, the Basic Rent as annual rent for each Lease
Year. Basic Rent shall be paid in equal monthly installments in advance on the
first day of each calendar month during the Lease Term. The first installment of
Basic Rent shall be paid on the Rent Commencement Date. Subsequent installments
of Basic Rent shall be paid on the first day of every calendar month thereafter.
Basic Rent for partial months at the beginning or end of the Lease Term shall be
pro-rated and paid on the Term Commencement Date and the first day of the
calendar month in which the Lease Termination Date is to occur.

4.02: COMPUTATION OF BASIC RENT

The Basic Rent for each of the ten (10) Lease Years shall be stated in Article
1.01 hereof.

Basic Rent so determined shall be exclusive of (and in addition to) amounts due
hereunder for Taxes and Operating Expenses.

ARTICLE 5: USE OF PREMISES

5.01: USE RESTRICTED

The Premises may be used for the Permitted Uses and for no other purpose. No
improvements may be made in or to the Premises except as otherwise provided in
this Lease.

ARTICLE 6: TAXES; OPERATING EXPENSES; ESTIMATED COST OF ELECTRICAL SERVICES

6.01: EXPENSES AND TAXES

If with respect to any Calendar Year, Tenant's Share of (a) Operating Expenses
exceeds the Operating Expense Base or (b) Taxes exceeds the Tax Base (whether as
the result of an increase

                                       14
<PAGE>

in rate or assessment or both), Tenant shall pay to Landlord the amount of each
such excess. Any amount due with respect to this Section 6.01 shall be due on
the date which is thirty (30) days after receipt by the Tenant of the statement
described in Section 6.02 hereof.

6.02: ANNUAL STATEMENT OF ADDITIONAL RENT DUE

Landlord shall render to Tenant a statement, showing (i) for the Calendar Year
so indicated (a) Taxes and (b) Operating Expenses and (ii) for the then current
Calendar Year, and estimate for (a) Operating Expenses (b) Taxes and (c)
Tenant's obligation under Section 6.01.

6.03: MONTHLY PAYMENTS OF ADDITIONAL RENT

Tenant shall pay to Landlord in advance for each calendar month of the Lease
Term falling between receipt by Tenant of the statement described in Section
6.02 and receipt by Tenant of the next such statement, as Additional Rent an
amount equal to 1/12th of Tenant's estimated obligation under Section 6.01 shown
thereon. The amount due under this Section 6.03 shall be paid with Tenant's
monthly payments of Basic Rent and shall be credited by Landlord to Tenant's
obligations under Section 6.01. If the total amount paid hereunder exceeds the
amount due under such Section, such excess shall be credited by Landlord against
the monthly installments of Additional Rent next falling due or shall be
refunded to Tenant upon the expiration or termination of this Lease (unless such
expiration or termination is the result of an Event of Default).

6.04: ACCOUNTING PERIODS

Landlord shall have the right from time to time to change the periods of
accounting hereunder to any other annual period than a Calendar Year, and upon
any such change, all items referred to in this Article 6 shall be appropriately
apportioned. In all statements rendered under Section 6.02, amounts for periods
partially within and partially without the accounting periods shall be
appropriately apportioned, and any items which are not determinable at the time
of a statement shall be included therein on the basis of Landlord's estimate and
with respect thereof Landlord shall render promptly after determination a
supplemental statement and appropriate adjustment shall be made according
thereto.

6.05: ABATEMENT OF TAXES

Landlord may at any time and from time to time make application to the
appropriate Governmental Authority for an abatement of Taxes. Landlord shall
make such an application at any time tenants occupying more than 60% of the
Rentable Area of the Building under written Occupancy Arrangements directly with
the Landlord request that Landlord do so. If (i) such an application is
successful and (ii) Tenant has made any payment in respect of Taxes pursuant to
this Article 6 for the period with respect to which the abatement was granted,
Landlord shall (a) deduct from the amount of the abatement all expenses incurred
by it in connection with the application (b) pay to Tenant Tenant's Share
(adjusted for any period for which Tenant has made a partial payment) of
abatement, with interest, if any, paid by the Governmental Authority on such
abatement and (c) retain the balance, if any.

                                       15
<PAGE>

6.06: LATE PAYMENT OF RENT

If any installment of Basic Rent or Additional Rent is not received in full
within five (5) days of its due date then, in addition to any other rights or
remedies of the Landlord, upon demand of Landlord, Tenant shall pay for each
month that rental payments are not timely made, a sum equal to ten percent (10%)
of each unpaid portion of such monthly installment as a liquidated damages
charge arising out of and occurring as the result of each such late payment.

In the event that Tenant makes three (3) or more late payments of rent in any
given year during the Term, Landlord may deem such action to constitute an Event
of Default sufficient to terminate (i) the Lease (ii) any provision for exercise
by Tenant of any option rights under the Lease or (iii) both.

ARTICLE 7: IMPROVEMENTS, REPAIRS, ADDITIONS, REPLACEMENTS

7.01: PREPARATION OF THE PREMISES

Tenant will accept space "as-is" as shown on the attached Exhibits A - 1, A - 2
and A - 3. Tenant shall be responsible for the cost of all alterations and
improvements. Any alterations and improvements must first be approved by the
Landlord and be performed by contractors also approved by Landlord such
approvals not to be unreasonably withheld.

7.02: INTENTIONALLY OMITTED

7.03: DELAYS

If Landlord shall be delayed in substantially completing the work in the
Premises as the result of:

      a)    delay in delivery to Landlord of any plans, design work and detailed
            drawing; or

      b)    Tenant's requests for Special Work or change to the Working
            Drawings (notwithstanding Landlord's approval of such changes), or

      c)    delays in performance by Tenant or any Person employed by Tenant
            which shall cause delays in the completion of any work to be done by
            Landlord or which shall otherwise delay the substantial completion
            of the Premises, or

      d)    any fault, negligence, omission, or failure to act on the part of
            Tenant or its agents, contractors, workmen, mechanics, suppliers or
            invitees, the Premises shall be deemed to be substantially completed
            on (and the Term Commencement Date shall be) the estimated Term
            Commencement Date.

7.04: TENANT'S ACCESS TO PREMISES

                                       16
<PAGE>

Tenant and Tenant's agents, at Tenant's sole risk may enter the Premises prior
to the Term Commencement Date in order to do such work as may be required to
make the Premises ready for Tenant's use and occupancy thereof, such occupancy
to be conditioned upon Tenant and Tenant's agents, contractors, workmen,
mechanics, suppliers and invitees, working in harmony with Landlord and the
General Contractor and with other tenants and occupants of the Building. If at
any time such entry shall cause or threaten to cause disharmony or otherwise
interfere with the orderly completion of operation of the Building, Landlord
shall have the right to withdraw such permission upon twenty-four (24) hours
written notice to Tenant. Any such entry into and occupation of the Premises
shall be deemed to be under all of the terms, covenants, conditions and
provisions of this Lease except the covenant to pay Rent. Landlord shall not be
liable in any way for any injury, loss or damage which may occur to any of
Tenant's work and installations made in the Premises or to properties placed
therein prior to the Term Commencement Date, the same being at Tenant's sole
risk.

7.05: ALTERATIONS AND IMPROVEMENTS

Tenant shall not make alterations or additions to the Premises except in
accordance with plans and specifications therefore first approved by Landlord,
such approval not to be unreasonably withheld or delayed. Tenant shall not hang
shades, curtains, signs, awnings or other materials, attach any materials to or
make any change in the appearance of any glass visible from outside of the
Premises, add any window treatments of any kind or make improvements or install
furniture visible from outside of the Premises, without Landlord's prior written
consent, such approval not to be unreasonable withheld or delayed. Without
limitation, Landlord shall not be deemed unreasonable for withholding approval
of any alterations or additions which would (a) delay completion of the Premises
or the Building, or (b) require unusual expense to readapt the Premises to
normal office use upon termination of this Lease or increase (i) Landlord's cost
of (a) construction or (b) insurance or (ii) Taxes. All alterations and
additions (but not Tenant's furniture, fixtures or equipment which Tenant shall
have the right to remove at any time) shall be part of the Premises. All of
Tenant's alterations and additions and installation of furnishings shall be
coordinated with any work being performed by Landlord and in such manner as to
maintain harmonious labor relations and not to damage the Building or the
Premises or interfere with Building operation and, except for installation of
furnishings, shall be performed by contractors or workmen first approved by
Landlord, such approval not to be unreasonably withheld or delayed. Except for
work done by or through Landlord, Tenant before its work is started shall:
secure all licenses and permits necessary therefore; deliver to Landlord a
statement of the names of all its contractors and subcontractors and the
estimated cost of all labor and material to be furnished by them; and cause each
contractor to carry workmen's compensation insurance in statutory amounts
covering all the contractor's and subcontractor's employees and comprehensive
public liability insurance with limits as Landlord may reasonably require, but
in no event less than $1,000,000.00 and property damage insurance with limits of
not less than $1,000,000.00 and have deductibles of no more than $5,000.00 (all
such insurance to be written in companies approved by Landlord and insuring
Landlord and Tenant as well as the contractors), and to deliver to Landlord
certificates of all such insurance. Tenant agrees to pay promptly when due the
entire cost of any work done in the Premises by Tenant, its agents, employees or
independent contractors, and not to cause or permit any liens therewith to
attach to the Premises and immediately to discharge any such liens which may so
attach. All construction work done by Tenant, its agents, employees or
independent contractors shall be done in a good and workmanlike manner and in
compliance with all Legal Requirements and Insurance

                                       17
<PAGE>

Requirements, Landlord shall promptly give notice to Tenant of any observed
defects.

7.07: MAINTENANCE

Tenant shall, at all times during the Lease Term, and at its own cost and
expense, (i) keep and maintain (or cause to be kept and maintained) the Premises
in good repair and condition (ordinary wear and tear and damage by fire or
casualty only excepted) and (ii) use all reasonable precaution to prevent waste,
damage or injury thereto.

7.08: REDELIVERY

On the Lease Termination Date, Tenant shall quit and surrender the Premises free
and clear of all tenants, occupants, liens, and encumbrances whatsoever except
(i) Permitted Exceptions and (ii) encumbrances, restrictions or reservations
caused by or consented to by Landlord Tenant shall, subject to the provisions of
Articles 17 and 18 hereof, surrender the Premises to Landlord broom clean and in
good condition and repair (ordinary wear and tear, damage by fire or
casualty-only excepted) with all damages occasioned by Tenant's removal of
Tenant's fixtures or equipment repaired at Tenant's cost to Landlord's
satisfaction.

ARTICLE 8: BUILDING SERVICES

8.01: BUILDING SERVICES

Landlord shall furnish, or cause to be furnished, during the Lease Term the
Basic Services.

8.02: OTHER JANITORS

No persons shall be employed by Tenant to do janitorial work in the Premises and
no persons other than the janitors of the Building shall clean the Premises
unless Landlord shall give its written consent thereto. Any person employed by
Tenant with Landlord's consent to do janitorial work shall, while in the
Building, either inside or outside the Premises, be subject to and under the
control and direction of the superintendent of the Building (but not as agent or
servant of said superintendent or of Landlord).

8.03: ADDITIONAL SERVICES

Tenant will pay the Landlord a reasonable charge for any extra cleaning of the
Premises required because of the carelessness or indifference of Tenant and for
any Additional Services rendered at the request of Tenant. If the cost of
cleaning the Premises shall be increased due to the installation in the
Premises, at Tenant's request, of any unique or special materials, finish or
equipment, Tenant shall pay the Landlord an amount equal to such increase in
cost. All charges for Additional Services shall be due and payable within ten
(10) days of the date on which they are billed.

8.04: LIMITATIONS ON LANDLORD'S LIABILITY

Landlord shall not be liable in damages, not in default hereunder, for any
failure or delay in

                                       18
<PAGE>

furnishing any Basic Service or Additional Service when such failure or delay is
occasioned by Force Majeure or by the act or Default of Tenant. No such failure
or delay so occasioned shall be held or pleaded as eviction or disturbance in
any manner whatsoever of Tenant's possession or give Tenant any right to
terminate this Lease or give rise to any claim for set-off of any abatement of
Rent or of any of Tenant's obligations under this Lease.

8.05: ELECTRIC SERVICE

Landlord shall permit Tenant to receive electrical service directly from the
public utility supplying service to the Building and to use (in common with
others) the existing feeders, risers, wiring and other electrical facilities
serving the Premises for such purpose to the extent they are suitable and
safely capable. Tenant shall pay, directly to the utility furnishing the same,
all charges for electrical services to the Premises promptly when due.

ARTICLE 9: TENANT'S PARTICULAR COVENANTS

9.01: PAY RENT

Tenant shall pay when due all Rent and all charges for utility services rendered
to the Premises not included in Rent and, as further Additional Rent, all
charges of Landlord for Additional Services.

9.02: OCCUPANCY OF THE PREMISES

Tenant shall occupy the Premises continuously from the Term Commencement Date
for the Permitted Uses only. Tenant shall not (i) injure or deface the Premises
or the Building, (ii) install any sign in or on any window, demising wall or
Common Area, (iii) permit in the Premises any flammable fluids or chemicals not
reasonably related to the Permitted Uses nor (iv) permit nuisance or any use
thereof which is improper, offensive, contrary to any Legal Requirement or
Insurance Requirement or liable to render necessary any alteration or addition
to the Building.

9.03: SAFETY

Tenant shall keep the Premises equipped with all safety appliances required by
Legal Requirements or Insurance Requirements because of any use made by Tenant.
Tenant shall procure all Authorizations so required because of such use and, if
requested by Landlord, shall do any work so required because of such use, it
being understood that the foregoing provision shall not be construed to broaden
in any way the Permitted Uses.

9.04: EQUIPMENT

Tenant shall not place a load upon the floor of the Premises exceeding the live
load for which the floor has been designed; and shall not move any safe or other
heavy equipment in, about or out of the Premises except in such a manner and at
such a time as Landlord shall in each instance authorize. Tenant shall isolate
and maintain all of Tenant's business machines and mechanical equipment which
cause or may cause air-borne or structure-born vibration or noise, so as to

                                       19
<PAGE>

eliminate such vibration or noise which may be transmitted to any other
Premises.

9.05: ELECTRICAL EQUIPMENT

Tenant shall not, without prior written notice to Landlord in each instance (i)
connect to the Building electric distribution system anything other than normal
office equipment or (ii) operate such equipment on a regular basis beyond normal
Building operating hours. Tenant's use of electrical energy in the Premises
shall not at any time exceed the capacity of any of the electrical conductors or
equipment in or otherwise serving the Premises. Tenant shall not, without prior
written notice to Landlord in each instance, connect to the Building electric
distribution system any fixtures, appliances of equipment which operate On a
voltage in excess of 120 volts nominal or make any alteration or addition to the
electric system of the Premises.

9.06: PAY TAXES

Tenant shall pay promptly when due all Taxes upon personal property (including,
without limitation, fixtures and equipment) in the Premises to whomsoever
assessed.

9.07: TENANT'S COVENANTS

Tenant will not vacate, abandon or desert the Premises or cause the Premises to
be empty or unoccupied.

ARTICLE 10: REQUIREMENTS OF PUBLIC AUTHORITY

10.01: LEGAL REQUIREMENTS

Tenant shall, at it's own cost and expense, promptly observe and comply with all
Legal Requirements relating to Tenant's use of the Premises and not to the
Building itself. Tenant shall pay all costs, expenses, liabilities, losses,
damages, fines, penalties, claims and demands, that may in any manner arise out
of or be imposed because of the failure of Tenant to comply with the covenants
of this Article 10.

10.02: CONTESTS

Tenant shall have the right to contest by appropriate legal proceedings
diligently conducted in good faith, in the name of the Tenant, or Landlord (if
legally required), or both (if legally required), without cost, expense,
liability or damage to Landlord, the validity or application of any Legal
Requirement and, if compliance with any of the terms of any such Legal
Requirement may legally be delayed pending the prosecution of any such
proceeding, Tenant may delay such compliance therewith until the final
determination of such proceeding.

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<PAGE>

ARTICLE 11: COVENANT AGAINST LIENS

11.01: MECHANICS LIENS

Landlord's right, title and interest in the Premises or the Land or the Building
shall not be subject to or liable for liens of mechanics or materialmen for work
done on behalf of Tenant in connection with improvements to the Premises.
Notwithstanding such restriction, if because of any act or omission of Tenant,
any mechanic's lien or other lien, charge of order for payment of money shall be
filed against any portion of the Premises or the Land or the Building, Tenant
shall, at its own cost and expense, cause the same to be discharged of record or
bonded, within thirty (30) days after the filing thereof.

11.02: RIGHT TO DISCHARGE

Without otherwise limiting any other remedy of Landlord for default hereunder,
if Tenant shall fail to cause such liens to be discharged of record or bonded
within the aforesaid thirty (30) day period or to satisfy such liens within (30)
days after any judgment in favor of such lien holders from which no further
appeal might be taken then Landlord shall have the right to cause the same to be
discharged. All amounts paid by Landlord to cause such liens to be discharged
shall constitute Additional Rent.

ARTICLE 12: ACCESS TO PREMISES

12.01: ACCESS

Landlord or Landlord's agents and designers shall have the right, but not the
obligation, to enter upon the Premises at all reasonable times and upon
reasonable notice during ordinary business hours to examine same and to exhibit
the Premises to prospective purchasers and tenants, but in the latter case only
during the last twelve (12) months of the Lease Term.

ARTICLE 13: ASSIGNMENT AND SUBLETTING: OCCUPANCY ARRANGEMENTS.

13.01: SUBLETTING AND ASSIGNMENT

Tenant shall not (either voluntarily or by operation of law) enter into a
Prohibited Occupancy Arrangement, and any Prohibited Occupancy Arrangement shall
be absolutely void and ineffective for any purpose. Tenant shall not enter into
any other Occupancy Arrangement, either voluntarily or by operation of law,
(other than with a Person who is Affiliate of Tenant for a period ending when,
as and if such Person ceases to be Affiliate of Tenant) without the prior
written consent of Landlord, such consent not to be unreasonably withheld or
delayed.

If Tenant intends to enter into an Occupancy Arrangement which requires
Landlord's consent, Tenant shall so notify Landlord in writing, stating the name
of (and a financial statement with respect to) the Person whom Tenant intends to
enter into such Arrangement, the exact terms of

                                       21
<PAGE>

the Arrangement and a precise description of the portion of the Premises
intended to be subject thereto. Within sixty (60) days of receipt of such
writing, Landlord shall either (i) consent to such Occupancy Arrangement or (ii)
not consent to such Occupancy Arrangement by giving tenant written notice of
Landlord's decision such notice will include landlord's reasons for not
consenting to a specific Occupancy Arrangement (iii) terminate this Lease with
respect to so much of the Premises as is intended to be subject thereto.

If the Landlord consents to such Occupancy Arrangement, Tenant shall (i) enter
into such Arrangement on the exact terms described to Landlord within thirty
(30) days of Landlord's consent or comply again with their terms of this Section
and (ii) remain liable for the payment and performance of the terms and
covenants of this Lease. If Tenant enters into such an Arrangement, Tenant shall
pay to Landlord when received the excess, if any, of amounts received above all
reasonable transaction costs, in respect of such Occupancy Arrangement over the
Rent.

If Landlord terminates this Lease, all Rent due shall be adjusted as of the day
the Premises (or portion thereof) are redelivered to Landlord. Any portion of
the Premises so redelivered shall be in the condition specified in Section 7.08
hereof.

ARTICLE 14: INDEMNITY

14.01: TENANT'S INDEMNITY

To the fullest extent permitted by law, Tenant shall indemnify and save harmless
Landlord from and against any and all liability, damage, penalties or judgments
and from and against any claims, actions, proceedings and expenses and costs in
connection therewith, including reasonable counsel fees arising from injury to
person or property sustained by anyone in and about the Building or the Premises
or the Land by reason of an act or omission of Tenant, or Tenant's officers,
agents, servants, employees, contractors, sublessees or invitees. Tenant shall,
at its own cost and expense, defend any and all suits or actions (just or
unjust) in which Landlord may be impleaded with others upon any such above
mentioned matter, claim or claims, except as may result from the acts as set
forth in Section 14.02. All merchandise, furniture, fixtures and property of
every kind, nature and description of Tenant or Tenant's employees, agents,
contractors, invitees, visitors, or guests which may be in or upon the Premises,
the Land or the Building during the Lease Term shall be at the sole risk and
hazard of Tenant, and that if the whole or any part thereof shall be damaged,
destroyed, stolen or removed by reason of any cause or reason whatsoever, other
than the negligence or willful default of Landlord, no part of said damage or
loss shall be charged to or borne by Landlord.

14.02: LANDLORD'S LIABILITY

Except for its intentional acts of negligence or the intentional acts or
negligence of its officers, agents, servants, employees or contractors, Landlord
shall not be responsible or liable for any damage or injury to any property,
fixtures, buildings or improvements, or to any person or persons, at any time in
the Premises, including any damage or injury to Tenant or to any of Tenant's
officers, agents, servants, employees, contractors, invitees, customers or
sublessees.

                                       22
<PAGE>

ARTICLE 15: INSURANCE

15.01: LIABILITY INSURANCE

Tenant shall provide or cause to be provided at its expense, and keep in force
during the Lease Term, general comprehensive liability insurance in a good and
solvent insurance company or companies licensed to do business in the
Commonwealth of Massachusetts, selected by Tenant, and reasonably satisfactory
to Landlord, and in an amount reasonably required by Landlord but in any event
not less than One Million Dollars ($1,000,000.00) with respect to injury or
death to any one person and One Million Dollars ($1,000,000.) with respect to
injury or death to more than one person in any one accident of other occurrence
and One Million Dollars ($1,000,000,00) with respect to damages to property.
Such policy or policies shall include Landlord as an additional insured and have
deductibles of no more than $5,000,00. Tenant agrees to deliver certificates of
such insurance to Landlord as of the date hereof and thereafter not less than
ten (10) days prior to the expiration of any such policy. Such insurance shall
not be cancelable without thirty (30) days, written notice to Landlord.

15.02: CASUALTY INSURANCE

Tenant shall cause its improvements to the Premises to be insured for the
benefit of Landlord and Tenant as their respective interests may appear, against
loss or damage by fire and customary extended coverage in an amount equal to (i)
the replacement value thereof, if insurance in such amount is available, or (ii)
the amount necessary to avoid the effect of co-insurance provisions of the
applicable policies. Certificates thereof shall be delivered to Landlord,
Landlord shall, at Tenant's cost and expense, cooperate fully with Tenant and
execute any and all consents and other instruments and take all other actions
necessary to obtain the largest possible recovery. Landlord shall not carry any
insurance concurrent in coverage and contributing in the event of loss with any
insurance required to be furnished by Tenant hereunder if the effect of such
separate insurance would be to reduce the protection or the payment to be made
under Tenant's insurance.

ARTICLE 16: WAIVER OF SUBROGATION

16.01: WAIVER OF SUBROGATION

All insurance policies carried by either party covering the Premises, including
but not limited to contents, fire and casualty insurance, shall expressly waive
any right on the part of the insurer to make any claim against the other party.
The parties hereto agree that their policies will include such waiver clause or
endorsement.

16.02: WAIVER OF RIGHTS

Landlord and Tenant each hereby waive all claims, causes of action and rights of
recovery against the other and their respective partners, agents, officers and
employees, for any damage to or destruction of persons, property or business
which shall occur on or about the Premises and shall result from any of the
perils insured under any and all policies of insurance maintained by

                                       23
<PAGE>

Landlord and Tenant, regardless of cause, including the negligence of either
party and their respective agents, officers and employees but only to the extent
of recovery, if any under such policy or policies of insurance; provided
however, that this waiver shall be invalidated in the event any such insurer
would be relieved from the obligation to make payment pursuant to a policy of
insurance by reason of this waiver.

ARTICLE 17: DAMAGE OR DESTRUCTION

17.01: SUBSTANTIAL DAMAGE

If the Building or any part thereof shall be damaged by fire or other casualty
to the extent that substantial alteration or reconstruction of the Building
shall, in Landlord's sole opinion, be required (whether or not the Premises
shall have been damaged) or if payment is used to retire the mortgage debt,
Landlord may, at its option, terminate this Lease by notifying Tenant in writing
of such termination within sixty (60) days after the date of such damage. If
this Lease is so terminated, Rent shall be abated as of the date of such damage.

17.02: RESTORATION

If Landlord does not terminate this Lease pursuant to Section 17.01, Landlord
shall, within seventy-five (75) days after such fire or other casualty, proceed
with reasonable diligence to repair and restore the Building (subject to Force
Majeure) to substantially the same condition in which it was immediately prior
to the occurrence of the casualty including Landlord's Work and the value of
Landlord's Contribution. Landlord shall not be required to rebuild, repair, or
replace any part of Tenant's furniture, furnishings or fixtures or equipment.
Landlord shall not be liable for any inconvenience or annoyance to. Tenant or
injury to the business of Tenant resulting in any way from such damage or the
repair thereof, except that, Landlord shall allow Tenant a fair diminution of
Rent during the time and to the extent the Premises are unfit for occupancy.

ARTICLE 18: EMINENT DOMAIN

18.01: TOTAL TAKING

If the Premises or the Building should be the subject of a Total Taking, then
this Lease shall terminate as of the date when physical possession of the
Building or the Premises is taken by the condemning authority.

18.02: PARTIAL TAKING

If there occurs a Partial Taking (limited to Partial Takings where the operation
of the Building is no longer reasonably feasible), Landlord (whether or not the
Premises are affected thereby) may terminate this Lease by giving written notice
thereof to Tenant within sixty (60) days after the right of termination accrues,
in which event this Lease shall terminate as of the date the Building or
Premises is taken by the condemning authority. If upon such Partial Taking this
Lease is not terminated, Rent shall be abated by an amount representing that
part of the Rent properly allocable to the portion of the Premises so taken and
Landlord shall, at Landlord's sole expense,

                                       24
<PAGE>

restore and reconstruct the Building and the Premises to substantially their
former condition to the extent that the same, in Landlord's judgment, may be
feasible, but such work shall not exceed the scope of Landlord's Work and the
value of Landlord's Contribution. The Landlord shall have no liability for
interruption of Tenant's business.

18.03: AWARDS AND PROCEEDS

All Proceeds payable in respect of Taking shall be the property of Landlord.
Tenant hereby assigns to Landlord all rights of Tenant in or to such Proceeds,
provided that Tenant shall be entitled to separately petition the condemning
authority for a separate award for its moving expenses and trade fixtures but
only if such a separate award will not diminish the amount of Proceeds payable
to Landlord.

ARTICLE 19: QUIET ENJOYMENT

19.01: LANDLORD'S COVENANT

Provided that an Event of Default has not occurred and is not then continuing,
Tenant shall subject to the Permitted Exceptions, quietly have and enjoy the
Premises during the Lease Term, without hindrance or molestation from any Person
lawfully claiming by, through or under Landlord.

19.02: SUBORDINATION

This Lease is and shall be subject and subordinate to any mortgage now or
hereafter on the Building and to each advance made or hereafter to be made under
any mortgage, and to all renewals, modifications, consolidations, replacements
and extensions thereof and all substitutions therefore. This Section 19.02 shall
be self-operative and no further instrument of subordination shall be required.
In confirmation of such subordination, Tenant shall execute and deliver promptly
any certificate that Landlord or any mortgagee may request. In the event that
any mortgagee shall succeed to the interest of Landlord then this Lease shall
nevertheless continue in full force and effect and Tenant shall and does hereby
agree to attorn to such mortgagee and to recognize such mortgagee as its
Landlord.

19.03: NOTICE TO MORTGAGEE

No act or failure to act on the part of Landlord which would entitle Tenant
under the terms of this Lease, or by law, to be relieved of Tenant's obligations
hereunder or to terminate this Lease, shall result in a release or termination
of such obligations or a termination of this Lease unless (i) Tenant shall have
first given written notice of Landlord's act or failure to act to Landlord's
mortgagees of which Tenant shall have received notice from Landlord, if any,
specifying the act or failure to act on the part of Landlord which could or
would give basis to Tenant's rights; and (ii) such mortgagees, after receipt of
such notice, have had the opportunity to cure such default within a reasonable
time thereafter; but nothing contained in this Section 19.03 shall be deemed to
impose any obligation on any such mortgagees to correct or cure any such
condition. "Reasonable time" as used above shall mean a period of not less than
thirty (30) Business Days and shall include (but not be limited to) a reasonable
time to obtain possession of the Building if

                                       25
<PAGE>

the mortgagee elects to do so and a reasonable time to correct or cure the
condition if such condition is determined to exist.

19.04: OTHER PROVISIONS REGARDING MORTGAGEES

If this Lease or the Rent due hereunder is assigned to a mortgagee as collateral
security for a loan, no such mortgagee shall be deemed to have assumed any of
Landlord's obligations hereunder solely as a result of said assignment. A
mortgagee to whom this Lease has been so assigned shall be deemed to have
assumed such obligations only if (i) by the terms of the instrument of
assignment such mortgagee specifically elects to assume such obligations or (ii)
such mortgagee has (a) foreclosed its mortgage, (b) accepted a deed in lieu
thereof, or (c) taken possession of the Premises by entry or otherwise. If such
mortgagee assumes the obligations of Landlord hereunder, such mortgagee will be
liable for breaches of any Landlord's obligations hereunder only to the extent
such breaches occur during the period of ownership by the mortgagee after
foreclosure (or any conveyance by a deed in lieu thereof or taking of
possession), all as set forth in Section 25.10 hereof. Tenant may from time to
time, at mortgagees request, be required to provide mortgagee with certain
financial information pertaining to the Tenant as mortgagee may reasonably
request.

ARTICLE 20: DEFAULTS; EVENTS OF DEFAULT

20.01: DEFAULTS

The following shall, if any requirement for notice or lapse of time or both has
not been met, constitute Defaults, and, if such requirements for notice or lapse
of time have been met, constitute Events of Default hereunder:

      1)    Occurrence of any event set forth in Article 21 hereof;

      2)    The failure of Tenant to pay Rent when the same shall be due and
            payable and the continuance of such failure for a period of ten (10)
            days after receipt by Tenant of notice in writing from Landlord
            specifying such failure;

      3)    The failure of Tenant to observe any covenant made by it in Sections
            13.01, 15.01 and 25.03 hereof and;

      4)    The failure of Tenant to keep, observe or perform any of the other
            covenants, conditions and agreements herein contained on Tenant's
            part to be kept, observed or performed and the continuance of such
            failure without the curing of same for a period of twenty (20) days
            after receipt by Tenant of notice in writing from Landlord
            specifying in reasonable detail the nature of such failure.

20.02: TENANT'S BEST EFFORTS

In the event that the Default of which Landlord gives notice is of such a nature
that it cannot be cured within such twenty (20) day period, then such Default
shall not be deemed to be an Event of Default so long as Tenant, after receiving
such notice, proceeds to cure the Default as soon as

                                       26
<PAGE>

reasonably possible and continues to take all steps necessary to complete the
same within a period of time which, under all prevailing circumstances, shall be
reasonable. No Default shall be deemed to be an Event of Default if and so long
as Tenant shall be so proceeding to cure the same in good faith or be delayed in
or prevented from curing the same by reason of Force Majeure.

20.03: ELIMINATION OF DEFAULT

Notwithstanding anything to the contrary contained in this Article 20, in the
event that a Default has been cured as hereinabove provided, such Default(s)
shall be deemed never to have occurred and Tenant's rights hereunder shall
continue unaffected by such Defaults.

ARTICLE 21: INSOLVENCY

21.01: INSOLVENCY

If (1) there occurs with respect to Tenant an Insolvency or (2) any execution or
attachment is issued against Tenant or any of its property and as a result
thereof the Premises are taken or occupied by some Person other than the Tenant,
except as may herein be permitted, then an Event of Default hereunder shall be
deemed to have occurred so that the provisions of Article 22 hereof shall become
effective and Landlord shall have the rights and remedies provided for therein.

ARTICLE 22: LANDLORD'S REMEDIES; DAMAGES ON DEFAULT

22.01: LANDLORD'S REMEDIES

If an Event of Default shall occur and be continuing, Landlord may, at its
option, give to Tenant a notice terminating this Lease upon a date specified in
such notice, which date shall be not less than three (3) Business Days after the
date of receipt by Tenant of such notice from Landlord, and upon the date
specified in said notice, the term and estate hereby vested in Tenant shall
cease and any and all other right, title and interest of Tenant hereunder shall
likewise cease without further notice or lapse of time, as fully and with like
effect as if the entire Lease Term had elapsed, but Tenant shall continue to be
liable to Landlord as hereinafter provided.

If such Event of Default results from Tenant's failure to pay a charge for an
Additional Service pursuant to Section 8.03 hereof, Landlord may, without
further notice to Tenant, discontinue any or all of such Additional Services.

If an Event of Default shall occur and be continuing, Landlord shall be relieved
of its undertakings under Article 13 hereof.

22.02: SURRENDER

Upon any termination of this Lease as the result of an Event of Default, Tenant
shall quit and peacefully surrender the Premises to Landlord, upon or at any
time after any such termination,

                                       27
<PAGE>

Landlord may without further notice enter the Premises and possess itself
thereof by summary proceedings or otherwise, and may dispossess Tenant and
remove Tenant and all other Persons and property from the Premises and may have,
hold and enjoy the Premises and the right to receive all rental income of and
from the same.

22.03: RIGHT TO RELET

At any time from time to time after any such termination, Landlord shall use
reasonable efforts to relet the Premises or any part thereof, in the name of
Landlord, for such terms or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Lease Term) and on
such reasonable conditions (which may include such concessions or free rent as
are then typical in the local real estate market for similar space) as Landlord,
in its reasonable discretion, may determine and may collect and receive the
rents therefore. Landlord shall in no way be responsible or liable for any
failure to relet the Premises or any part thereof, or for any failure to collect
any rent due upon any such reletting except in each event for any failure to use
reasonable efforts.

22.04: SURVIVAL OF COVENANTS

No such termination of this Lease shall relieve Tenant of its liability and
obligations under this Lease and such liability and obligations shall survive
any such termination. Tenant shall indemnify and hold Landlord harmless from all
loss, cost, expense, damage or liability arising out or in connection with such
termination.

In the event of any such termination, Tenant shall pay to the Landlord the Rent
up to the date of such termination. Tenant shall also pay to Landlord, on
demand, as and for liquidated and agreed damages for Tenant's Default, the
difference between

      1)    the aggregate Rent which would have been payable under this" Lease
            by Tenant from the date of such termination until the Stated
            Expiration Date, less

      2)    the fair and reasonable rental value of the Premises for the same
            period, excluding all of Landlord's reasonable estimate of expenses
            to be incurred in connection with reletting the Premises, including,
            without limitation, all repossess costs, brokerage commission, legal
            expenses, reasonable attorney's fees, alteration costs, and expenses
            of preparation for such reletting.

If the Premises or any part thereof are relet by the Landlord before
presentation of proof of such liquidated damages to any court, commission or
tribunal, the amount of rent reserved upon such reletting shall be, prima facie,
the fair and reasonable rental value for the part or the whole of the Premises
so relet during the term of the reletting.

Nothing herein contained shall limit or prejudice the right of the Landlord to
prove and obtain as liquidated damages by reason of such termination, an amount
equal to the maximum allowed by any statute or rule of law in effect at the time
when, and governing the proceedings in which, such damages are to be proved,
whether or not such amount be greater, equal to, or less than the amount of the
difference referred to above.

                                       28
<PAGE>

22.05: RIGHT TO EQUITABLE RELIEF

If there shall occur a Default or threatened Default, Landlord shall be entitled
to enjoin such Default or threatened Default and shall have the right to invoke
any right and remedy allowed at law or in equity or by statute or otherwise as
though re-entry, summary proceedings, and other remedies were not provided for
in this Lease provided that the provisions of this Lease shall govern as to
notice and grace periods, damages and otherwise to the extent specifically
addressed in this Lease.

22.06: RIGHT TO SELF HELP: INTEREST ON OVERDUE RENT

If an Event of Default shall occur and be continuing, Landlord shall have the
right, but shall not be obligate, to enter upon the Premises and to perform such
obligation notwithstanding the tact that no specific provision for such
substituted performance by Landlord is made in this Lease with respect to such
Default. In performing such obligation, Landlord may make any payment of money
of perform any other act. The aggregate of (i) all sums so paid by Landlord,
(ii) interest (at the rate of 1 1/2% per month or the highest rate permitted by
law, whichever is less) on such sum plus all Rent not paid when due and (iii)
all necessary incidental costs and expenses in connection with the performance
of any such act by Landlord, shall be deemed to be Rent under this Lease and
shall be payable to Landlord immediately upon demand. Landlord may exercise the
foregoing rights without waiving any other of its rights or releasing Tenant
from any of its obligations under this Lease.

22.07: FURTHER REMEDIES

Upon any termination of this Lease pursuant to Section 22.01, or at any time
thereafter, Landlord may, in addition to and without prejudice to any other
rights and remedies Landlord shall have at law or in equity, re-enter the
Premises, and recover possession thereof and may dispossess any or all occupants
of the Premises in the manner prescribed by the statute relating to summary
proceedings, or similar statute(s); but Tenant in such case shall remain liable
to Landlord as hereinbefore provided.

ARTICLE 23: WAIVERS

23.01: NO WAIVERS

Failure of Landlord to complain of any act or omission on the part of the other
party no matter how long the same may continue, shall not be deemed to be a
waiver by said Landlord of any of its rights hereunder. No waiver of any
provision of this Lease shall be deemed a waiver of a breach of the same or any
other provision. No acceptance by Landlord of any partial payment shall
constitute an accord or satisfaction but shall only be deemed a partial payment
on account.

                                       29
<PAGE>

ARTICLE 24: SECURITY DEPOSIT

24.01: SECURITY DEPOSIT

Tenant has deposited the Security Deposit with Landlord. Landlord shall hold the
Security Deposit as security for the full and faithful payment or performance by
Tenant of its obligations under this Lease and not as a prepayment of Rent.
Though, Landlord may at any time and at its sole discretion decide to use the
Security Deposit as prepayment of Rent for the tenth year (last lease year) of
this lease. Landlord may commingle the Security Deposit with other funds of
Landlord. Landlord shall be liable to Tenant for the payment of interest at 4%
per annum which shall be due and payable from the Landlord to Tenant every
twelve (12) months from the commencement of this Lease. Interest on Tenants
Security Deposit shall only be due and payable as long as Tenant has not entered
into an event of default. Landlord may expend such amounts from the Security
Deposit as may be necessary to cure any Default and, in such case, Tenant shall
pay to Landlord the amount so expended, on demand to restore the Security
Deposit to its original amount. Landlord may assign the Security Deposit to any
subsequent owner of the Building and thereafter Landlord shall have no further
liability to Tenant with respect thereto who shall confirm its obligations
hereunder to Tenant. As soon as reasonably practicable after the Lease
Termination Date, Landlord shall (i) inspect the Premises, (ii) make such
payments from the Security Deposit as may be required to cure any outstanding
Events of Default hereunder and (iii) if no Event of Default is then continuing,
pay the balance of the Security Deposit to Tenant.

ARTICLE 25: GENERAL PROVISIONS

25.01: FORCE MAJEURE

In the event that Landlord or Tenant shall be delayed, hindered in or prevented
from the performance of any act required hereunder by reason of Force Majeure,
then performance of such act shall be excused for the period of the delay and
the period for the performance of any such act shall be extended for a period
equivalent to the period of such delay.

25.02: NOTICES AND COMMUNICATIONS

All notices, demands, requests and other communications provided for or
permitted under this Lease shall be in writing, either delivered by hand or sent
by first class mail, postage prepaid, to the following address:

      a)    if to Landlord at the address stated in Section 1.01 hereof, or at
            such other address as the Landlord shall have designated in writing
            to the Tenant, with a copy to such Persons as Landlord shall have
            designated in writing to Tenant, or

      b)    if to Tenant at the address stated in Section 1.01 hereof, or at
            such other address, as the Tenant shall have designated in writing
            to the Landlord, with a copy to such Persons as Tenant shall have
            designated in writing to Landlord.

                                       30
<PAGE>

Any notice provided for herein shall become effective only upon and at the time
of receipt by the Person to whom it is given, unless such notice is mailed by
first-class registered or certified mail, in which ease it shall be deemed to be
received on (i) the third Business Day following the mailing thereof or (ii) the
day of its receipt, if a Business Pay, or the next succeeding Business Day,
whichever of (i) or (ii) shall be the earlier.

25.03: CERTIFICATES, ESTOPPEL LETTER

Either party shall, without charge, at any time and from time to time hereafter,
within ten (10) days after written request of the other, certify by written
instrument duly executed and acknowledged to any mortgagee or purchaser, or
proposed mortgagee or proposed purchaser, or any Person specified in such
request; (a) as to whether this Lease has been supplemented or amended, and if
so, the substance and manner of such supplement or amendment, (b) as to the
validity and force constituted, (c) as to the existence of any Default or Event
of Default, (d) as to the existence of any offsets, counterclaims or defenses
thereto on the part of such other party, (e) as to the Term Commencement Date
and Stated Expiration Date, and (f) as to any other matters as may reasonably
be so requested. Any such certificate may be relied upon by the party requesting
it and any other Person to whom the same may be exhibited or delivered, and the
contents of such certificate shall be binding on the party executing same.

Tenant shall in addition, upon request following the Term Commencement Date,
within ten (10) Business Days of the request therefore execute and deliver to
Landlord a tenant estoppel letter substantially in the form attached hereto as
Exhibit G.

25.04: RENEWAL

If this Lease is renewed or extended the provisions of Sections 7.01, 7.02,
7.03, 7.04, and 7.05 of Article 7 hereof shall not require either party to
perform the construction obligations set forth therein.

25.05: GOVERNING LAW

This Lease and the performance thereof shall be governed, interpreted, construed
and regulated by the laws of the Commonwealth of Massachusetts.

25.06: PARTIAL INVALIDITY

If any term, covenant, condition or provision of this Lease or the application
thereof to any person Or circumstance shall, at any time or to any extent, be
invalid Or unenforceable, the remainder of this Lease, or the application of
such term or provision to persons or circumstances other than those as to which
is held invalid or unenforceable, shall not be affected thereby, and each term,
covenant, condition and provision of this Lease shall be valid and be enforced
to the fullest extent permitted by law.

                                       31
<PAGE>

25.07: INTERPRETATION; CONSENTS

The section headings used herein are for reference and convenience only, and
shall not enter into the interpretation hereof. This Lease may be executed in
several counterparts, each of which shall be an original, but all of which shall
constitute one and the same instrument. Whenever any consent of Landlord is
required to be obtained hereunder, such consent shall hot be unreasonably
withheld or delayed.

The term "Landlord" whenever used herein, shall mean only the owner at the time
of Landlord's interest herein, and shall upon any sale or assignment (other than
as collateral security for a loan) of the interest of the Landlord herein, its
respective successors in interest and/or assigns shall, during the term of
ownership of its respective estates herein, be deemed to be Landlord and the
liability of Landlord, if any, hereunder shall in any event be limited to the
Landlord's interest in the Building.

25.08: BIND AND INURE; LIMITATION OF LANDLORD'S LIABILITY

The obligations of this Lease shall run with the land, and this Lease shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. No owner of the Land and Building shall be liable under
this Lease except for breaches of Landlord's obligations occurring while owner
of the Land and Building. The obligations of Landlord shall be binding upon the
assets of Landlord which comprise of only the Land and Building but not upon
other assets of Landlord. No individual partner, trustee, stockholder, officer,
director, employee or beneficiary of Landlord shall be personally liable under
this Lease and Tenant shall look solely to Landlord's interest in the Land and
Building in pursuit of its remedies upon an Event of Default hereunder, and the
general assets of Landlord and its "partners, trustees, stockholders, officers,
employees or beneficiaries of Landlord shall not be subject to levy, execution
or other enforcement procedure for the satisfaction of the remedies of Tenant.

25.09: PARTIES

Except as herein otherwise expressly provided, the covenants, conditions and
agreements contained in this Lease shall be binding upon the heirs, successors
and assigns of the parties hereto.

25.10: WAIVER OF TRIAL BY JURY

Landlord and Tenant do hereby waive trial by jury in any action, proceeding or
counterclaim brought by either against the other upon any matters whatsoever
arising out of or in any way connected with this Lease, Tenant's use or
occupancy of the Premises and/or claim or injury or damage.

                                       32
<PAGE>

ARTICLE 26: MISCELLANEOUS

26.01: HOLDOVER CLAUSE

In the event Tenant fails to vacate the premises by the Lease Termination Date,
Tenant hereby agrees to pay Landlord two (2) times the monthly rental rate. The
"Holdover Rental Rate" shall be paid monthly in advance to Landlord. In
determining the "Holdover Rental Rate" Landlord shall charge (2) times the gross
monthly rental rate for the last full calendar month under the lease. In
addition to the "Holdover Rental Rate", Landlord shall be entitled to seek to
recover full damages sustained as a result of said holdover.

26.02: RIGHT OF FIRST REFUSAL

So long as Tenant is not in default under this Lease Tenant shall have the Right
of First Refusal to lease the first floor of the Building and all remaining
available space on the second floor of the Building. If at any time or from time
to time the owner receives an offer from a third party to lease all of or part
of the Right of First Refusal space, Landlord shall first notify Tenant, in
writing, of the terms and conditions of the Right of First Refusal Offer and the
space to which it relates. Tenant shall then have ten (10) business days after
receiving the Right of First Refusal Notice to notify Landlord, in writing, that
Tenant irrevocable elects to lease Right of First Refusal space specified in the
Notice on the same financial terms and conditions as the third party offer but
otherwise upon the terms and conditions of this Lease, If Tenant does not elect
to lease such space, Landlord shall be free to lease the Right of First Refusal
space specified in such Notice to said third party. Tenant shall confirm with
Landlord that the rental is on the same terms as the third party offer, rather
than on the same rental as the Lease. This article shall subordinate to any and
all existing conditions.

26.03: SIGNAGE

Landlord will provide Tenant with signage on the main lobby directory, floor
directory and Tenant Suite door.

Tenant at its sole cost and with Landlord's prior written approval shall have
the right to place its own identification on the exterior wall of the Building
facing Route 495 similar in size and location to that of the current Tenant and
in accordance with local zoning ordinance.

26.04: BROKERAGE

Tenant warrants and represents to Landlord that it has had no dealings with any
broker or agent in connection with this Lease other than Meredith and Grew and
CB Richard Ellis and covenants to defend, with counsel approved by Landlord,
hold harmless and indemnify Landlord from and against any and all cost, expense
or liability for any compensation, commissions and charges claimed by any broker
or agent other than Meredith and Grew and CB Richard Ellis.

                                       33
<PAGE>

ARTICLE 27: ENTIRE AGREEMENT

27.01: ENTIRE AGREEMENT

No oral statement or prior written matter shall have any force or effect. This
Agreement shall not be modified or canceled except by writing subscribed to by
all parties.

No representations, inducement, promises or agreements, oral or otherwise,
between Landlord and Tenant or any of their respective brokers, employees or
agents, not embodied herein, shall be of any force or effect.

Executed as a sealed instrument as of the 12 day of December, 2001.

                                          LANDLORD: /s/ David P. Depietri
                                                   -----------------------------
                                                By: David P. Depietri
                                               Its: Trustee

                                            TENANT: /s/ Kenneth Zolot
                                                    ----------------------------
                                                By: KENNETH ZOLOT
                                               its: Treasurer & COO

                                       34
<PAGE>

                            FIRST AMENDMENT TO LEASE

      THIS FIRST AMENDMENT TO LEASE is entered into as of the 3 day of June,
2001 by and between 165 FOREST STREET REALTY TRUST OF 1992, a Massachusetts
nominee trust recorded in Book, 22791 Page 557 of Middlesex South District
___________________________Registry of Deeds as Landlord ("Landlord") and
EGENERA, INC., a Massachusetts corporation, as Tenant ("Tenant").

      WHEREAS, Landlord and Tenant are parties to that certain lease dated
December 12, 2000 (the "Lease") pursuant to which Tenant is leasing certain
premises known as Suites 200, 300 and 400 and containing approximately 31, 277
rentable square feet, more fully described in the Lease (the "Premises") within
the Building located at 165 Forest Street, Marlborough, Middlesex County,
Massachusetts together with the right to use the Common Areas and the Land
appurtenant to the Premises as each is defined in the Lease; and

      WHEREAS, Landlord and Tenant desire to amend and confirm certain
provisions of the Lease as herein provided.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein
and for ten dollars ($10) and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby
agree as follows:

      1.    Landlord and Tenant agree that there is hereby substituted for the
            definition of "Term Commencement Date" in Section 1.01 of the Lease
            the date "January 1, 2001".

      2.    Landlord and Tenant further agree that there is hereby added to the
            definition of "Land" in Section 1.03 of the Lease the words "more
            fully described on Exhibit H hereto."

      3.    Landlord and Tenant further agree that (a) the Landlord under the
            Lease is David D. Depietri, as Trustee of 165 FOREST STREET REALTY
            TRUST OF 1992, a Massachusetts nominee trust recorded in Book, 22791
            Page 557 of the South District Registry of Deeds and that said David
            D. Depietri signed the Lease solely in his capacity as Trustee and
            not individually, and (b) the Tenant under the Lease is Egenera,
            Inc., a Massachusetts corporation and that Kenneth Zolot signed the
            lease solely in his capacity as Treasurer and COO of Egenera, Inc.
            and not individually.

      4.    Landlord and Tenant hereby ratify and confirm the Lease and agree
            that except as amended hereby the Lease shall remain unmodified and
            in full force and effect as heretofore.

<PAGE>

WITNESS the execution hereof as an instrument under seal this______ day of
February, 2001

                                     LANDLORD:

                                     /s/ David P. Depietri
                                     -------------------------------------------
                                     David P. Depietri, as Trustee of 165 Forest
                                     Street Realty Trust of 1992, and not
                                     individually

                                     TENANT:

                                     EGENERA, INC.,

                                     By: /s/ Kenneth Zolot
                                         ---------------------------------------
                                         Kenneth Zolot, its Treasurer and
                                         COO, and not individually

COMMONWEALTH OF MASSACHUSETTS)
                             )
COUNTY OF MIDDSEX            )

Then personally appeared before me the above-named David P. Depietri, the
Trustee of 165 Forest Street Realty Trust of 1992, and acknowledged that he
signed, sealed and delivered the foregoing instrument as Trustee as aforesaid as
his free act and deed as Trustee of 165 Forest Street Realty Trust, before me.

                                          /s/ Eileen Betts
                                          --------------------------------------
                                          Notary Public
                                          My commission expires: 2-8-02

                                          Notarial Seal

 COMMONWEALTH OF MASSACHUSETTS)
                              )
 COUNTY OF WORCESTER          )

Then personally appeared before me the above-named Kenneth Zolot, the Treasurer
and Chief Operating Officer of Egenera, Inc. and acknowledged that he signed,
sealed and delivered the foregoing instrument by order of the Board of Directors
of such corporation as the free act and deed of said corporation, before me.

<PAGE>

                                          /s/ Michelle Buote
                                          --------------------------------------
                                          Notary Public
                                          My commission expires: 10/2/03

                                          Notarial Seal

<PAGE>

                             SECOND LEASE AMENDMENT

This Second Lease Amendment ("Second Amendment") is made this 16 day of
November, 2001 by and between 165 FOREST STREET REALTY TRUST OF 1992, with a
mailing address c/o Rosewood Management Corporation, 293 Boston Post Road West,
Suite 320, Marlborough, Massachusetts, 01752 (hereafter referred to as
"Landlord") and EGENERA, Inc., a Massachusetts Corporation, with a principal
place of business at 165 Forest Street, Marlborough, MA (hereinafter referred to
as "Tenant").

                                   WITNESSETH

WHEREAS, Landlord and Tenant have entered into a certain lease dated December
12, 2000 which was amended pursuant to a First Lease Amendment dated June 3,
2001 (hereinafter collectively referred to as the "Lease") wherein Landlord
leased to Tenant and Tenant leased from Landlord certain premises consisting of
31,277 square feet (the "original Premises") located on the second, third and
fourth floors of the building located at 165 Forest Street, Marlborough,
Massachusetts (the "Building").

WHEREAS, Tenant wishes to lease from Landlord and Landlord wishes to lease to
Tenant additional space located on the second floor of the Building upon the
terms and conditions hereinafter set forth.

NOW THEREFORE, for good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.    Landlord and Tenant hereby incorporate all terms and provisions of the
Lease herein as is specifically set forth, except as said terms are modified
herein. Capitalized terms not specifically defined in this Second Amendment
shall have the same meaning ascribed to them in the Lease.

2.    Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord
approximately 6,186 square feet of rentable floor area (hereinafter referred to
as the "Expansion Space") located on the second floor of the Building, which
Expansion Space is hereby agreed to be that certain space which is shown
cross-hatched on Exhibit AX attached hereto and made apart hereof, for a term
commencing (the "Expansion Space Commencement Date") on January 1, 2002 and
continuing (and including) December 31, 2010. Landlord hereby consents to
Tenants work shown on BX.

3.    Effective as of the Expansion Space Commencement Date, the Rentable Area
of Premises shall be increased by 6,186 rentable square feet (RSF) (the
"Expansion Space") to a total of 37,463 RSF of office space and computer lab.

4.    Tenant and Landlord hereby agree that Tenant accepts the Expansion Space
in an "As Is" condition including the existing furniture presently located in
the space.

<PAGE>

5.    Effective as of the Expansion Space Commencement Date, Section 1.01 OF
LEASE AGREEMENT

      a. Delete:

                        "RENTABLE AREA OF PREMISES:             31,277."

      b. Insert:

                        "RENTABLE AREA OF PREMISES:             37,463."

6.    Section 1.01 OF LEASE AGREEMENT

      a. Delete:

         "BASIC RENT:   Delete section and all amendments thereto in their
                        entirety."

      b. Insert:

         "BASIC RENT:   See schedule below:

<TABLE>
<CAPTION>
               RENTABLE                                   MONTHLY
PERIOD        SQUARE FEET   RATE / RSF   ANNUAL RENT       RENT
----------    -----------   ----------   -----------    ----------
<S>           <C>           <C>          <C>            <C>
1/1/2001 -      31,277        $21.00     $656,817.00    $54,734.75
1231/2001

1/1/2002 -      37,463        $20.66     $773,985.58    $64,498.79
12/31/2005

1/1/2006 -      37,463        $21.66     $811,448.58    $67,620.71
12/31/2010
</TABLE>

7.    Effective as of the Expansion Lease Commencement Date, Section 1.01 of
Lease Agreement is hereby amended by inserting at the end of the definition of
Premises the following: "plus the expansion Space shown on the Exhibit AX
hereto.

<PAGE>

8.    Effective as of the Expansion Lease Commencement Date, Section 1.01 of
Lease Agreement:

      a. Delete:
                        "TENANT'S SHARE:                        63.88%"

      b. Insert:
                        "TENANT'S SHARE:                        76.51%

9.    Landlord and Tenant hereby represent that it has delt with no broker in
this expansion of its office space except for Merideth and Grew, Inc. of whose
fees shall be paid by Landlord.

In all other respects the Lease is hereby ratified, confirmed, and approved.

IN WITNESS WHEREOF, Landlord and Tenant have duly executed the Second Lease
Amendment under seal as of the 16 day of November, 2001

LANDLORD: 165 FOREST STREET REALTY TRUST OF 1992

                  /s/ David P. Depietri
                  ----------------------------------------
                  By: David P. Depietri
                  Its: Trustee

TENANT:   EGENERA, Inc., a Massachusetts Corporation

                  /s/ Kenneth Zolot
                  ----------------------------------------
                  By: Kenneth Zolot
                  Its: Treasurer & Chief Operating Officer

<PAGE>

                              THIRD LEASE AMENDMENT

This Third Lease Amendment ("Second Amendment") is made this 4th day of December
2002 by and between 165 FOREST STREET REALTY TRUST OF 1992, with a mailing
address c/o Rosewood Management Corporation, 293 Boston Post Road West, Suite
320, Marlborough, Massachusetts, 01752 (hereafter referred to as "Landlord") and
EGENERA, Inc., a Massachusetts Corporation, with a principal place of business
at 165 Forest Street, Marlborough, MA (hereinafter referred to as "Tenant").

                                   WITNESSETH

WHEREAS, Landlord and Tenant have entered into a certain lease dated December
12, 2000 which was amended pursuant to a First Lease Amendment dated June 3,
2001 and a Second Lease Amendment dated November 16, 2001 (hereinafter
collectively referred to as the "Lease") wherein Landlord leased to Tenant and
Tenant leased from Landlord certain premises consisting of 37,463 square feet
(the "original Premises") located on the second, third and fourth floors of the
building located at 165 Forest Street, Marlborough, Massachusetts (the
"Building").

WHEREAS, Tenant wishes to lease from Landlord and Landlord wishes to lease to
Tenant additional space located on the first floor of the Building upon the
terms and conditions hereinafter set forth.

NOW THEREFORE, for good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.    Landlord and Tenant hereby incorporate all terms and provisions of the
Lease herein as is specifically set forth, except as said terms are modified
herein. Capitalized terms not specifically defined in this Third Amendment shall
have the same meaning ascribed to them in the Lease.

2.    Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord
approximately 6,026 square feet of rentable floor area (hereinafter referred to
as the "Expansion Space") located on the first floor of the Building, which
Expansion Space is hereby agreed to be that certain space which is shown
cross-hatched on Exhibit AX attached hereto and made a part hereof, for a term
commencing (the "Expansion Space Commencement Date") upon execution of the Third
Lease Amendment and continuing (and including) through December 31, 2010.

3.    Effective as of the Expansion Space Rent Commencement Date (January 1,
2003), the Rentable Area of Premises shall be increased by 6,026 rentable square
feet (RSF) (the "Expansion Space") to a total of 43,489 RSF of office space and
computer lab space.

4.    Tenant and Landlord hereby agree that Tenant accepts the "Expansion Space"
in an "As Is" condition and that Tenant shall have immediate access to the
"Expansion Space" upon execution of the Third Lease Amendment. Tenant Agrees to
not alter the "Expansion Space" until Landlord has approved any or all
alterations in writing, which approval shall not be unreasonably withheld,
delayed or denied.

<PAGE>

5.    Effective as of the Expansion Space Rent Commencement Date, Section 1.01
OF LEASE AGREEMENT

      a. Delete:
                        "RENTABLE AREA OF PREMISES:             37,463".

      b. Insert:
                        "RENTABLE AREA OF PREMISES:             43,489".

6.    Section 1.01 OF LEASE AGREEMENT

      a. Delete:

         "BASIC RENT:   Delete section and all amendments thereto in their
         entirety."

      b. Insert:

         "BASIC RENT:  See schedule below:

<TABLE>
<CAPTION>
              RENTABLE                              MONTHLY
PERIOD       SQUARE FEET   RATE/RSF   ANNUAL RENT     RENT
------       -----------   --------   -----------  ----------
<S>          <C>           <C>        <C>          <C>
1/1/2001 -     31,277       $21.00    $656,817.00  $54,734.75
12/31/2001

1/1/2002-      37,463       $20.66    $773,985.58  $64,498.79
12/31/2002

1/1/2003 -     43,489       $19.46    $846,295.94  $70,524.66
12/31/2005

1/1/2006-      43,489       $20.87    $907,615.43  $75,634.61
12/31/2010
</TABLE>

7.    Effective as of the Expansion Lease Commencement Date, Section 1.01 of
Lease Agreement is hereby amended by inserting at the end of the definition of
Premises the following: "plus the expansion Space shown on the Exhibit AX
hereto.

<PAGE>

8.    Effective as of the Expansion Lease Commencement Date, Section 1.01 of
Lease Agreement:

      a. Delete:
                        "TENANT'S SHARE:                        76.51%"

      b. Insert:
                        "TENANT'S SHARE:                        88.82%

9.    Landlord and Tenant hereby represent that it has delt with no broker in
this expansion of its office space except for Merideth and Grew, Inc. of whose
fees shall be paid by Landlord.

In all other respects the Lease is hereby ratified, confirmed, and approved.

IN WITNESS WHEREOF, Landlord and Tenant have duly executed the Third Lease
Amendment under seal as of the 4th day of December, 2002

LANDLORD:         165 FOREST STREET REALTY TRUST OF 1992

                  /s/ David P. Depietri
                  ----------------------------------------
                  By: David P. Depietri
                  Its: Trustee

TENANT:           EGENERA, Inc., a Massachusetts Corporation

                  /s/ Thomas F. Sheehan
                  ----------------------------------------
                  By: Thomas F. Sheehan
                  Its:  Chief Financial Officer

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