Document:

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                                                                  EXHIBIT 10.4

                            LEASE EXTENSION AGREEMENT

                             DATED: DECEMBER 1, 2000

                  MASSACHUSETTS INSTITUTE OF TECHNOLOGY, LESSOR

                    MILLENNIUM PHARMACEUTICALS, INC., LESSEE

                  640 MEMORIAL DRIVE, CAMBRIDGE, MASSACHUSETTS

                                TABLE OF CONTENTS
                                -----------------
<TABLE>
<S>      <C>                                                              <C>
1.0      PARTIES AND PREMISES............................................  1

         1.1      PARTIES AND PREMISES...................................  1

         1.2      BASEMENT SPACE.........................................  2

         1.3      COMMON AREAS...........................................  3

         1.4      RIGHT OF FIRST OFFER...................................  3

2.0      TERM............................................................  5

         2.1      TERM; COMMENCEMENT DATE................................  5

         2.2      EXTENSION OPTION.......................................  5

3.0      RENT............................................................  5

         3.1      PAYMENT OF RENT........................................  5

         3.2      DETERMINATION OF FAIR MARKET RENT......................  6

4.0      PERMITTED USES................................................... 8

5.0      TAXES; OPERATING EXPENSES........................................ 8

         5.1      TAXES................................................... 8

         5.2      OPERATING EXPENSES...................................... 8

         5.3      PAYMENT OF TAXES AND OPERATING EXPENSES................ 10

         5.4      ABATEMENT OF TAXES..................................... 11

6.0      ELECTRIC SERVICE................................................ 11

7.0      INSURANCE....................................................... 12

         7.1      PUBLIC LIABILITY INSURANCE............................. 12

         7.2      CASUALTY INSURANCE..................................... 12

         7.3      CERTIFICATE OF INSURANCE............................... 12

         7.4      LESSOR'S INSURANCE..................................... 13

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7.5      WAIVER OF SUBROGATION........................................... 13

7.6      WAIVER OF RIGHTS................................................ 13

8.0      ASSIGNMENT AND SUBLETTING....................................... 14

9.0      PARKING......................................................... 16

9.1      ON-SITE PARKING SPACES...........................................16

9.2      OFF-SITE PARKING SPACES..........................................16

9.3      ADDITIONAL RENT FOR PARKING SPACES...............................17

10.0     LATE PAYMENT OF RENT............................................ 17

11.0     LESSEE'S COVENANTS.............................................. 17

12.0     Intentionally Omitted............................................22

13.0     CASUALTY AND EMINENT DOMAIN..................................... 22

         13.1     SUBSTANTIAL TAKING..................................... 22

         13.2     PARTIAL TAKING......................................... 23

         13.3     AWARDS................................................. 23

         13.4     SUBSTANTIAL CASUALTY................................... 23

         13.5     REPAIR AND RESTORATION................................. 23

         13.6     CASUALTY DURING LAST 18 MONTHS......................... 24

14.0     DEFAULTS; EVENTS OF DEFAULT; REMEDIES........................... 25

         14.1     DEFAULTS; EVENTS OF DEFAULT............................ 25

         14.2     TERMINATION............................................ 26

         14.3     SURVIVAL OF COVENANTS.................................. 26

         14.4     DAMAGES................................................ 26

         14.5     RIGHT TO RELET......................................... 27

         14.6     RIGHT TO EQUITABLE RELIEF.............................. 27

         14.7     RIGHT TO SELF HELP..................................... 28

         14.8     FURTHER REMEDIES....................................... 28

15.0     REAL ESTATE BROKER.............................................. 28

16.0     NOTICES......................................................... 28

17.0     NO WAIVERS...................................................... 29

18.0     SERVICES PROVIDED BY LESSOR..................................... 29

19.0     GROUND LEASES; MORTGAGES........................................ 30

         19.1     RIGHTS OF GROUND LESSORS AND MORTGAGEES................ 30

         19.2     LEASE SUBORDINATE...................................... 30

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20.0     NOTICE OF LEASE; ESTOPPEL CERTIFICATES.......................... 30

21.0     HOLDING OVER.................................................... 31

22.0     FORCE MAJEURE................................................... 31

23.0     ENTIRE AGREEMENT................................................ 31

24.0     SECURITY DEPOSIT................................................ 31

25.0     SATELLITE DISH...................................................32

26.0     EXISTING LEASE.................................................. 33

27.0     SUCCESSORS AND ASSIGNS.......................................... 33

28.0     APPLICABLE LAW, SEVERABILITY AND CONSTRUCTION................... 33

29.0     AUTHORITY....................................................... 33

EXHIBIT A:  Plan of the Premises

EXHIBIT B:  Plan of the Land

EXHIBIT C:  Items Designated for Removal

EXHIBIT D:  Lessor's Services

EXHIBIT E:  Lessee's Services

EXHIBIT F  Copy of Lessor's Certificate of Title

EXHIBIT G:  Location of Off Site Parking Spaces

EXHIBIT H:  Tenant Standards
</TABLE>

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                            LEASE EXTENSION AGREEMENT

Dated December 1, 2000

         This lease extension agreement (hereinafter this "Lease") is made
between MASSACHUSETTS INSTITUTE OF TECHNOLOGY, a Massachusetts educational
corporation with an office at Suite 200, 238 Main Street Cambridge, MA 02142
("Lessor") and MILLENNIUM PHARMACEUTICALS, INC., a Delaware corporation with it
principal office at 75 Sidney Street, Cambridge, MA 02142 ("Lessee").

         WHEREAS, Lessor and Lessee are the parties to an existing lease
agreement of the Premises (as defined below) dated August 26, 1993 which has
been previously amended by a number of amendments (said lease agreement as so
amended is hereafter referred to as the "Existing Lease"), and

         WHEREAS, the Existing Lease is scheduled to expire on December 31,
2003, subject to the right of the Lessee to extend the term for two additional
periods of five years each on terms and conditions set forth therein, and

         WHEREAS, Lessor and Lessee have agreed to extend the term of the
Existing Lease for an additional term of five years and preserve a further five
year extension option on the terms and conditions set forth below; and

         WHEREAS, the terms and conditions set forth below are intended to vary
and supersede the provisions of Existing Lease with respect to the Term of this
Lease as described in Section 2.0 below and to incorporate certain provisions of
the amendments to the Existing Lease into a single document to govern the
relationship of the parties during such Term,

NOW THEREFORE, the parties hereby agree as follows:

1.0      PARTIES AND PREMISES.

         1.1  PARTIES AND PREMISES. MASSACHUSETTS INSTITUTE OF TECHNOLOGY
              ("Lessor") hereby LEASES unto MILLENNIUM PHARMACEUTICALS, INC.
              ("Lessee"), the following premises:

                           Approximately 159,995 square feet of rentable area
                           consisting of the entire first, second, third and
                           fifth floors and the eastern portion of the fourth
                           floor, shown as the cross-hatched area on EXHIBIT A
                           attached hereto (the "Premises"), in the building
                           known as and numbered 640 Memorial Drive,

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                           Cambridge, Massachusetts, containing a total of
                           182,124 rentable square feet (the "Building"), which
                           is located on the parcel of land shown on EXHIBIT B
                           attached hereto (the "Land"),

                  together with the benefit of, and subject to (as the case may
                  be) all rights, easements, covenants, conditions,
                  encumbrances, encroachments and restrictions of record as of
                  the date of this Lease, which matters are set forth on the
                  copy of Lessor's Certificate of Title to the Land attached
                  hereto as EXHIBIT F (the "Permitted Encumbrances"), which
                  Permitted Encumbrances shall not materially affect Lessee's
                  use or occupancy of the Premises for the "Permitted Uses"
                  hereunder (as defined in Section 4.0 below). Lessor shall have
                  the right, without the necessity of obtaining Lessee's consent
                  thereto or joinder therein, to grant, permit, or enter into
                  during the term of this Lease such additional rights,
                  easements, covenants, conditions, encumbrances, encroachments
                  and restrictions with respect to the Land as Lessor may deem
                  appropriate, PROVIDED THAT no such rights, easements,
                  covenants, conditions, encumbrances, encroachments or
                  restrictions shall materially affect Lessee's use of the
                  Premises for the "Permitted Uses" (as defined in Section 4.0
                  below).

                  Lessor hereby reserves the right to maintain, use, repair and
                  replace pipes, ducts, wires, meters and any other equipment,
                  machinery, apparatus and fixtures located within the Premises
                  and serving other parts of the Building. Lessee, its employees
                  and invitees shall have access to the Premises at all times,
                  subject to the provisions of Section 11.0(h) below.

         1.2      BASEMENT SPACE. Lessee hereby leases 21,027 square feet in the
                  basement of the Building, (the "Basement Space"). Lessee shall
                  pay on account of the Basement Space "Basement Rent" in the
                  amount of $18.00 per square foot per Lease Year, such amount
                  to be paid in advance in equal monthly installments in the
                  same manner and at the same times as "Basic Rent" (as defined
                  in Section 3.1 below). Except as otherwise expressly stated in
                  this Lease, the Basement Space shall be deemed to be part of
                  the Premises for all purposes of this Lease, and all rights
                  and obligations of the parties hereunder with respect to the
                  Premises shall apply equally to the Basement Space.
                  Notwithstanding the foregoing, (i) the area of the Basement
                  Space shall not be included (a) in the rentable area of the
                  Premises for determining "Lessee's Share" pursuant to Section
                  5.1 below, or (b) in determining the number of parking spaces
                  to which Lessee is entitled under Section 9.0 below; (ii) the
                  Basement Space shall not be included in the Premises for
                  purposes of Section 13.0 below.

                  The Basement Space shall be used solely for an animal storage
                  facility and for general storage by Lessee, and for no other
                  use. Lessor makes no representation or warranty of any type
                  concerning the permissibility of such use under applicable
                  Legal Requirements or the suitability of the Basement Space
                  for such use. In addition to, but not in limitation of, the
                  provisions of the Lease relating to Lessee's

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                  use of the Premises, Lessee hereby agrees to comply with all
                  Legal Requirements applicable to Lessee's use of the Basement
                  Space and not to permit the emission of any objectionable
                  noise or odors from the Basement Space.

                  No animals, animal waste, food or supplies relating to the
                  animals maintained from time to time in the Basement Space
                  shall be transported within the Building except as provided in
                  this Paragraph. Use of the freight elevator for the
                  transportation of animals, animal waste, food or supplies
                  between the Basement Space and Lessee's Premises on the upper
                  floors of the Building, shall be conducted in a manner which
                  does not unreasonably interfere with the use of the elevator
                  by any other tenants of the Building. All deliveries of
                  animals to Lessee at the Building shall occur after Building
                  operating hours. At all times that animals are transported on
                  the Land or within the Building, they shall be transported in
                  an appropriate cage or other container. At no time shall any
                  animals, animal waste, food or supplies relating to the
                  animals be brought into, transported through, or delivered to
                  the lobby of the Building.

                  Notwithstanding anything to the contrary elsewhere in this
                  Lease, Lessor is not providing any services to the Basement
                  Space. Lessee shall make its own arrangements for the cleaning
                  of such space as well as the provision of electricity, water,
                  gas, HVAC and any other utility or service. Electricity, water
                  and gas consumption in the Basement Space shall be separately
                  metered. Lessee shall pay all charges therefor directly to the
                  company which provides such service.

         1.3      COMMON AREAS. Lessor also grants to Lessee, and Lessee's
                  invitees, the right, in common with others entitled thereto,
                  to use for the purposes for which they were designed, the
                  common facilities of the Building, including but not limited
                  to, all entrances, hallways, elevator foyers, air shafts,
                  elevator shafts and elevators, stairwells and stairs,
                  restrooms, passenger elevators, freight elevator, loading
                  bays, conference center and the "On-Site Parking Area" (as
                  defined in Section 9.0 below) (collectively, the "Common
                  Areas"). Landlord hereby reserves the right to close the
                  cafeteria in the Building at any time that Lessor, in its sole
                  discretion, determines that there is insufficient usage of the
                  cafeteria to justify its continued operation.

         1.4      RIGHT OF FIRST OFFER. In the event that at any time during the
                  Term Lessor commences to market for lease any space on the
                  fourth floor of the Building which is not part of the Premises
                  as shown on EXHIBIT A attached hereto, Lessor shall notify
                  Lessee. Lessor's notice hereunder shall contain Lessor's good
                  faith determination of Fair Market Rent. Provided that (i) an
                  "Event of Default" (as defined in Section 14.1 below) is not
                  continuing as of the day on which Lessor gives such notice,
                  and (ii) the Lessee named herein or a Lessee Affiliate (as
                  defined in Section 8.0(i)) is then actually occupying sixty
                  percent (60%) of the entire Premises, Lessee shall have the
                  right (the "Right of First Offer") to lease the portion of the
                  fourth floor set forth in Lessor's notice for a term
                  commencing on the date on which Lessor delivers possession
                  thereof to Lessee, and ending on the last day of the Term,

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                  by giving written notice of exercise to Lessor within twenty
                  (20) days of receipt of Lessor's notice; provided that, if at
                  any time during the first year after Lessee takes occupancy of
                  the space described in Lessor's notice, Lessee or a Lessee
                  Affiliate is not actually occupying such space in its
                  entirety, then if Lessor so elects, this Lease shall be deemed
                  to be amended as of the date on which Lessor sends notice
                  thereof to Lessee so as to delete such space from the Premises
                  for purposes of this Lease (with a commensurate adjustment in
                  Rent and Lessee's Share) for the remainder of the Term.

                  If Lessee exercises its right under this Section 1.4 to lease
                  such space, then such space shall become subject to all of the
                  terms of this Lease EXCEPT that Basic Rent therefor shall be
                  due and payable in an amount equal to the "Fair Market Rent"
                  therefor as of the date on which Lessor reasonably anticipates
                  delivering possession of the space to Lessee. "Fair Market
                  Rent" shall be determined in the manner provided in Section
                  3.2 of this Lease for the Extension Term; provided that unless
                  Lessee's notice of acceptance elects to determine Fair Market
                  Rent by appraisal as set forth in Section 3.2, Lessee shall be
                  deemed to have agreed to Lessor's good faith determination of
                  Fair Market Rent as set forth in Lessor's notice. In the event
                  that Lessee, for any reason whatsoever, fails to give such
                  notice to Lessor within such 20-day period, Lessee shall be
                  deemed to have waived its rights under this Section 1.4 with
                  respect to the space described in Lessor's notice for the
                  remainder of the Term.

                  Any space which is subjected to the terms of this Lease
                  pursuant to this Section 1.4 shall be delivered broom clean
                  but otherwise in the condition in which it is redelivered to
                  Lessor. Lessor shall have no obligation to perform any
                  preparatory work in such space in anticipation of Lessee's use
                  thereof or to provide any allowance to Lessee towards the
                  preparation thereof. All work performed by Lessee in such
                  space shall be subject to the provisions of Section 11.0(f)
                  below. Basic Rent shall be due and payable on account of such
                  space commencing on the day on which Lessor delivers
                  possession thereof to Lessee.

                  Lessor shall use reasonable diligence to regain possession of
                  any space with respect to which Lessee has exercised the Right
                  of First Offer herein contained, but Lessor shall not be
                  responsible for any delay by any occupant in vacating such
                  space. Effective upon the date on which Lessor delivers
                  possession to Lessee of any space which is subjected to the
                  terms of this Lease pursuant to this Section 1.4, such space
                  shall be deemed to be part of the Premises for all purposes of
                  this Lease except that Basic Rent therefor shall be computed
                  as hereinabove provided, and "Lessee's Share" (as defined in
                  Section 5.1 below) shall be appropriately modified.

                  The extension or renewal of the lease of an initial occupant
                  of space on the fourth floor of the Building shall serve to
                  defer Lessee's Right of First Offer with respect to such
                  space.

                                      -4-

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2.0.     TERM.

         2.1. COMMENCEMENT DATE. The initial term of this lease (the "Initial
         Term") shall commence January 1, 2004 (the "Commencement Date") and
         expire on the day immediately preceding the fifth (5th) anniversary
         thereof, unless sooner terminated as hereinafter provided. For purposes
         of this Lease, the phrase "Term" shall mean collectively (a) the
         Initial Term, and (b) if Lessee duly exercises the "Extension Option",
         the "Extension Term" (as these phrases are defined in Section 2.2
         below).

         2.2.  EXTENSION OPTION. Provided that both (i) an "Event of Default"
               (as defined in Section 14.1 below) is not outstanding on
               the day on which Lessee purports to exercise the Extension
               Option or prior to the first day of the Extension Term,
               and (ii) the Lessee named herein and any Lessee Affiliates (as
               defined in Section 8.0(i)) are actually occupying at least 60% of
               the Rentable Area of the Premises as of each of said dates,
               Lessee shall have the option ("Extension Option") to extend the
               Term of this Lease for one additional period of five (5) Lease
               Years (the "Extension Term"), unless sooner terminated as
               hereinafter provided, subject to all the terms of this Lease
               except for the change in Basic Rent as provided in Section 3.1 of
               this Lease. Lessee may exercise the Extension Option by giving
               written notice of exercise to Lessor not earlier than fifteen
               (15) months prior to, nor later than twelve (12) months prior to,
               the last day of the Initial Term. If Lessee fails to give such
               notice to Lessor within such time, Lessee shall be deemed to have
               waived the right to exercise the Extension Option.

3.0      RENT.

         3.1      PAYMENT OF RENT Lessee shall pay Lessor, without offset or
                  deduction and without previous demand therefor, as items
                  constituting rent (collectively, "Rent"):

                  (a)    Basic Rent, at the following rates, in equal monthly
                         installments, in advance, commencing on the
                         Commencement Date and continuing thereafter on the
                         first day of each calendar month or portion thereof
                         during the Term:

                         (i)      For the Initial Term Basic Rent shall be
                                  determined as follows. First, the parties
                                  shall determine the Fair Market Rent for the
                                  Premises in the manner set forth in Section
                                  3.2; provided that, solely for the purpose of
                                  determining Basic Rent for the Initial Term
                                  under this subparagraph (i), such amount shall
                                  not exceed $45.00 per square foot or be less
                                  than $39.00 per square foot. Basic Rent for
                                  the Initial Term shall be 93% of the amount so
                                  determined increased by $.63 per rentable
                                  square foot. For example, if Fair Market Rent
                                  for the Initial Term is determined to be $40
                                  per square foot, Basic Rent will be ($40 x
                                  .93) +$.63 = $37.83 per square foot.

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                         (ii)     During the Extension Term, an amount equal to
                                  ninety three percent (93%) of the Fair Market
                                  Rent of the Premises as of the first day of
                                  the Extension Term, but in no event less than
                                  the Basic Rent payable by Lessee hereunder for
                                  the last Lease Year preceding the commencement
                                  of such Extension Term.

                         As used in this Lease, "Lease Year" means the twelve
                         (12) month period commencing on the Commencement Date,
                         or a successive twelve (12) month period included in
                         the Term commencing on an anniversary of that day, but
                         if the expiration of the Term or the earlier
                         termination of the Lease does not coincide with the
                         termination of such a twelve (12) month period, the
                         term "Lease Year" shall mean the portion of such twelve
                         (12) month period before such expiration or
                         termination.

                    (b)  All Basement Rent and other costs, charges, or expenses
                         which Lessee in this Lease agrees to pay, or which
                         Lessor pays or incurs as the result of a default by
                         Lessee hereunder, including any penalty or interest
                         which may be added for nonpayment or late payment
                         thereof as provided in this Lease (collectively,
                         "Additional Rent"). All recurring payments of
                         Additional Rent, such as payment on account of Basement
                         Rent, "Taxes" and "Operating Expenses" (as these terms
                         are hereinafter defined), shall be due and payable on
                         the same day on which Basic Rent is due. Unless
                         otherwise specifically provided in this Lease, all
                         non-recurring items constituting Additional Rent shall
                         be due and payable within ten (10) days after written
                         demand therefor by Lessor.

                  Basic Rent and Additional Rent shall be PRO-RATED for partial
                  months occurring at the beginning or the end of the Term.

                  All payments shall be made to Lessor or such agent, and at
                  such place, as Lessor shall, from time to time, in writing
                  designate, the following being now so designated:

                                            Meredith & Grew, Inc.
                                            160 Federal Street
                                            Boston, MA 02110-1701
                                            Attention: John Sullivan

         3.2      DETERMINATION OF FAIR MARKET RENT. As used in this Lease,
                  "Fair Market Rent" means the effective fair market rent for
                  the Premises or space being leased by Lessee pursuant to
                  Section 1.4 above, as the case may be, in its "as is"
                  condition, including those portions of "Lessee's Work" (as
                  defined below) and "Alterations" (as defined in Section
                  11.0(f) below) which Lessee is not permitted or required
                  hereunder to remove at the expiration or earlier termination
                  of this Lease, but exclusive of the Basement Space, as of the
                  day with respect to which such

                                      -6-

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                  determination is being made, for a term of five (5) years
                  (or, in connection with Section 1.4 above, for a term equal
                  to the then-remaining Term of this Lease or five (5) years,
                  as the case may be). Fair Market Rent shall be based upon
                  the rents generally in effect for similar premises for
                  research laboratory/research and development uses in similar
                  buildings in the Cambridge, Massachusetts area in which the
                  Premises is located, adjusted to a "net" lease basis. As
                  used herein the term "Lessee's Work" shall mean all
                  improvements, alterations and additions made to the Premises
                  by Lessee as part of the initial preparation thereof for
                  Lessee's occupancy

                  Not earlier than July 1, 2002 or later than October 1, 2002
                  Lessor shall provide to Lessee Lessor's good faith
                  determination of Fair Market Rent. If Lessor and Lessee are
                  unable to agree on the Fair Market Rent within twenty (20)
                  days thereafter, then Lessor and Lessee shall, not later than
                  sixty (60) days after Lessor receives Lessee's notice of
                  exercise, each retain a real estate professional with at least
                  ten (10) years' continuous experience in the business of
                  appraising or marketing commercial real estate in the
                  Cambridge, Massachusetts vicinity, who shall, within thirty
                  (30) days of his or her selection, prepare a written report
                  summarizing his or her conclusion as to Fair Market Rent.
                  Lessor and Lessee shall simultaneously exchange such reports;
                  PROVIDED, HOWEVER, that if one party has not obtained such a
                  report within one hundred (100) days after Lessor receives
                  Lessee's notice of exercise, then the determination set forth
                  in the other party's report shall be final and binding upon
                  the parties. If both parties receive reports within such time
                  and the lesser of the two determinations is within ten (10%)
                  percent of the higher determination, then the average of these
                  determinations shall be deemed to be Fair Market Rent. If
                  these determinations differ by more than ten (10%) percent,
                  then Lessor and Lessee shall mutually select a person with the
                  qualifications stated above (the "Final Professional") to
                  resolve the dispute as to Fair Market Rent. If Lessor and
                  Lessee cannot agree upon the designation of the Final
                  Professional within thirty (30) days of the exchange of the
                  first valuation reports, either party may apply to the
                  American Arbitration Association, the Greater Boston Real
                  Estate Board, or any successor thereto for the designation of
                  a Final Professional. Within ten (10) days of the selection of
                  the Final Professional, Lessor and Lessee shall each submit to
                  the Final Professional a copy of their respective real estate
                  professional's determination of Fair Market Rent. The Final
                  Professional shall not perform his or her own valuation but
                  rather shall, within thirty (30) days after such submissions,
                  select the submission which is closest to the determination of
                  Fair Market Rent which the Final Professional would have made
                  acting alone. The Final Professional shall give notice of his
                  or her selection to Lessor and Lessee and such decision shall
                  be final and binding upon Lessor and Lessee. Each party shall
                  pay the fees and expenses of its real estate professional and
                  counsel, if any, in connection with any proceeding under this
                  paragraph, and the losing party shall pay the fees and
                  expenses of the Final Professional.

                                      -7-

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                  If Lessee exercises its Extension Option hereunder, Fair
                  Market Rent shall be determined in the manner just described
                  except that (i) Lessor shall provide to Lessee Lessor's good
                  faith determination of Fair Market Rent within twenty (20)
                  days after Lessor receives Lessee's notice of exercise of the
                  Extension Option; and (ii) if Lessor and Lessee are unable to
                  agree on the Fair Market Rent within twenty (20) days
                  thereafter, then Lessee may, within ten (10) days after the
                  expiration of such twenty (20) day period, elect either to
                  withdraw its notice of exercise, in which event its right to
                  extend the Term shall terminate, or to request that the Fair
                  Market Rent be determined by appraisal. The sixty (60) day
                  period within which the parties must each select a real estate
                  professional to determine the Fair Market Rent for the
                  Premises shall commence upon the expiration of the ten (10)
                  day period during which Lessee may elect to withdraw its
                  notice of exercise.

4.0      PERMITTED USES. The premises shall be occupied continuously by Lessee
         and used for the following purposes (the "Permitted Uses") only and for
         no other:

                  To the extent permitted as a matter of right under the Zoning
                  Ordinance of the City of Cambridge, as amended from time to
                  time: laboratory, research and development, light
                  manufacturing (including a pilot plant but only if Lessor
                  determines, in its sole discretion, that such facility does
                  not constitute a use which is not compatible with the uses
                  being made by other lessees of the Building or which is unduly
                  hazardous in comparison to such other uses), and office uses.

5.0      TAXES; OPERATING EXPENSES

         5.1      TAXES. Lessee shall pay as Additional Rent its pro rata share
                  ("Lessee's Share") of 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 become due and payable or
                  become liens upon or for or with respect to the Land or any
                  part thereof and the Building or the Premises, or
                  appurtenances or equipment owned by Lessor thereon or therein
                  or any part thereof, or on this Lease, and any tax based on a
                  percentage fraction or capitalized value of the Rent (whether
                  in lieu of or in addition to the taxes hereinbefore described)
                  (collectively, "Taxes"). 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. "Lessee's
                  Share" shall be computed on the basis of a fraction whose
                  numerator is the number of rentable square feet in the
                  Premises (exclusive of the Basement Space) and whose
                  denominator is the total number of rentable square feet in the
                  Building. As of the date hereof, Lessee's Share is 87.85%.

         5.2      OPERATING EXPENSES. Lessee shall pay as Additional Rent
                  Lessee's Share of all reasonable expenses, costs, and
                  disbursements of every kind and nature (collectively,
                  "Operating Expenses") which Lessor shall pay or become
                  obligated to

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                  pay in connection with the ownership, operation and
                  maintenance of the Building or the Land, including all
                  facilities in operation on the Commencement Date and such
                  additional facilities in subsequent years as may be
                  determined by Lessor to be necessary or beneficial for the
                  operation of the Building or the Land or the provision of
                  services to lessees, including, but not limited to:

                  (a)      all salaries, wages, fringe benefits, payroll taxes
                           and worker's compensation insurance premiums related
                           thereto of and for employees engaged in the operation
                           of the Building and the Land (with respect to
                           employees who are engaged in the operation of other
                           properties as well as the Building and the Land,
                           these amounts shall be pro-rated on the basis of the
                           relative amount of time spent by such employees on
                           the various properties);

                  (b)      painting, repairs, maintenance and cleaning of all
                           Common Areas;

                  (c)      utilities (including, without limitation,
                           electricity, water, sewer and gas) for all interior
                           Common Areas and lighting of exterior areas and the
                           "On-Site Parking Area" (as defined in Section 9.0
                           below);

                  (d)      maintenance and repair of the Building heating and
                           cooling systems, the plumbing systems, the fire
                           detection and suppression systems, the electrical
                           system and the elevators;

                  (e)      all maintenance, janitorial, and service agreements;

                  (f)      all insurance, including the cost of casualty and
                           liability insurance applicable to the On-Site Parking
                           Area, the Land, the Building and Lessor's personal
                           property used in connection therewith, including the
                           amount of any reasonable deductible payable by Lessor
                           in making repairs and restoration after a casualty;

                  (g)      maintenance of landscaped areas and paved areas, and
                           snow removal;

                  (h)      maintenance of the Building security system;

                  (i)      management fees and the fair market value of office
                           space for the manager of the Building for an office
                           not to exceed 500 square feet of usable area (but if
                           such office is used to manage properties other than
                           the Land and Building, such fair market rent shall be
                           pro-rated on a square footage basis among such
                           various properties);

                  (j)      capital items which reduce Operating Expenses
                           associated with the item which is the subject of such
                           expenditure, or which upgrade services or which are
                           at any time required by a governmental authority or
                           required by the provisions of any insurance policy
                           which is first adopted or first becomes

                                      -9-

<PAGE>

                           applicable to the Premises, the Building or the Land
                           after the date of this Lease, amortized over the
                           reasonable life of the capital items on a straight
                           line basis with the reasonable life being determined
                           by Lessor in accordance with generally accepted
                           accounting principles;

                  (k)      reasonable expenses incurred in pursuing an
                           application for an abatement of Taxes pursuant to
                           Section 5.4 below to the extent not deducted from the
                           abatement, if any, received;

                  (l)      legal (excluding legal fees with respect to lease
                           negotiations and enforcement of lease terms against
                           lessees), accounting and other professional fees and
                           disbursements (excluding leasing commissions);

                  (m)      all costs and expenses incurred by Lessor in
                           connection with the operation of the cafeteria in the
                           Building; PROVIDED, HOWEVER, that notwithstanding
                           anything to the contrary contained in this Lease, (i)
                           all subsidies or other amounts payable by Lessor to
                           the cafeteria operator, (ii) the cost of all services
                           which are separately invoiced to Lessor for the
                           cafeteria (e.g., cleaning), and (iii) the cost to
                           Lessor of supplying to the cafeteria separately
                           metered utilities shall be allocated 100% among the
                           occupants of the Building at the time that these
                           costs and expenses are incurred and no portion of
                           these costs and expenses shall be borne by Lessor
                           (Lessor hereby agreeing that any surplus received by
                           Lessor from the operation of the cafeteria shall be
                           applied by Lessor to reduce Operating Expenses); and

                  (n)      services to be provided by Lessor as set forth on
                           EXHIBIT D attached.

                  In the event that the average occupancy rate for the Building
                  is less than ninety-five (95%) percent for any fiscal year,
                  then for purposes of calculating Operating Expenses, the
                  Operating Expenses for such fiscal year shall be increased by
                  the additional costs and expenses that Lessor reasonably
                  estimates would have been incurred if the average occupancy
                  rate had been ninety-five (95%) percent for such fiscal year.
                  It is not the intent of this provision to permit Lessor to
                  charge Lessee for any Operating Expenses attributable to
                  unoccupied space, or to seek reimbursement from Lessee for
                  costs Lessor never incurred. Rather, the intent of this
                  provision is to allow Lessor to recover only those increases
                  in Operating Expenses properly attributable to occupied space
                  in the Building and this provision is designed to calculate
                  the actual cost of providing a variable Operating Expense
                  service to the portions of the Building receiving such
                  service. This "gross-up" treatment shall be applied only with
                  respect to variable Operating Expenses arising from services
                  provided to leased space in the Building in order to allocate
                  equitably such variable Operating Expenses to the lessees of
                  the Building.

         5.3      PAYMENT OF TAXES AND OPERATING EXPENSES. Within a reasonable
                  time (not to exceed ninety (90) days after the Commencement
                  Date, and thereafter within a

                                      -10-

<PAGE>

                  reasonable time (not to exceed ninety (90) days) after the
                  end of each fiscal year (or portion thereof) included in the
                  Term, Lessor shall deliver to Lessee (i) a statement of
                  actual Operating Expenses and Taxes for the fiscal year just
                  ended, together with reasonable supporting documentation
                  therefor, and (ii) a budget of Operating Expenses and Taxes
                  for the then-current fiscal year based on the actual
                  Operating Expenses and Taxes for the preceding year and
                  reasonably projected increases or decreases reasonably
                  anticipated by Lessor. Commencing on the first day of the
                  first calendar month after the delivery to Lessee of such
                  budget, Lessee shall pay to Lessor, as Additional Rent, on
                  account of its share of anticipated Operating Expenses and
                  Taxes for the then-current year, 1/12th of the total
                  annualized amount of Lessee's Share of Operating Expenses
                  and Taxes. Lessor reserves the right to revise the budget
                  during any fiscal year to cause it to more accurately
                  reflect the actual Taxes or Operating Expenses being paid or
                  incurred by Lessor, and upon any such revision the parties
                  shall make adjustments in the same time and manner as
                  hereinafter provided for fiscal year-end adjustments. Upon
                  delivery to Lessee of the statement of actual Operating
                  Expenses and Taxes for the preceding fiscal year, Lessor
                  shall adjust Lessee's account accordingly. If the total
                  amount paid by Lessee on account of the preceding fiscal
                  year is less than the amount due hereunder, Lessee shall pay
                  the balance due within twenty (20) days after delivery by
                  Lessor of such statement. If the total amount paid by Lessee
                  on account of the preceding fiscal year exceeds the amount
                  due hereunder, such excess shall be credited by Lessor
                  against the monthly installments of Additional Rent next
                  falling due or refunded to Lessee upon the expiration or
                  termination of this Lease (unless such expiration or
                  termination is the result of an "Event of Default" (as
                  defined in Section 14.1 below), in which case Lessor shall
                  credit such amount against any amount due from Lessee by
                  reason of such termination). Lessor's current fiscal year is
                  July 1 - June 30, but Lessor reserves the right to change
                  the fiscal year at any time during the Term.

                  Lessee shall have the right, upon written notice given to
                  Lessor, at Lessee's sole cost and expense to review Lessor's
                  books and records relating to the Operating Expenses and Taxes
                  for the Building and the Land for the prior fiscal year during
                  normal business hours at the office where these records are
                  maintained.

         5.4      ABATEMENT OF TAXES. Lessor may at any time and from time to
                  time make application to the appropriate governmental
                  authority for an abatement of Taxes. If (i) such an
                  application is successful and (ii) Lessee has made any payment
                  in respect of Taxes pursuant to this Section 5 for the period
                  with respect to which the abatement was granted, Lessor shall
                  (a) deduct from the amount of the abatement all third-party
                  expenses incurred by it in connection with the application,
                  (b) pay to Lessee Lessee's Share (adjusted for any period for
                  which Lessee had made a partial payment) of the abatement,
                  with interest, if any, paid by the governmental authority on
                  such abatement, and (c) retain the balance, if any.

                                      -11-

<PAGE>

6.0      ELECTRIC SERVICE. Lessee shall make its own arrangements for the
         provision of electricity to the Premises, and shall pay when due all
         charges therefor directly to the company which provides such electrical
         service.

7.0      INSURANCE

         7.1      PUBLIC LIABILITY INSURANCE. Lessee shall take out and maintain
                  in force throughout the Term (and for so long thereafter as
                  Lessee remains in occupancy) comprehensive public liability
                  insurance naming Lessor and persons claiming by, through or
                  under Lessor as additional insureds, against all claims and
                  demands for any injury to persons or property which may be
                  claimed to have occurred on the Premises, the Building, the
                  Land or on the ways adjoining the Land, in an amount which at
                  the beginning of the Term shall not be less than $1,000,000
                  for personal injury or death or property damage per
                  occurrence, and $5,000,000 in the aggregate for personal
                  injury or death or property damage, or such higher amounts as
                  Lessor thereafter determines to be consistent with sound
                  commercial practice in Cambridge. Such policy shall also
                  include contractual liability coverage covering Lessee's
                  liability assumed under this Lease.

         7.2      CASUALTY INSURANCE. Lessee shall take out and maintain
                  throughout the Lease Term a policy of fire, vandalism,
                  malicious mischief, extended coverage and so-called all risk
                  coverage insurance insuring (i) all items or components of
                  "Lessee's Work" which Lessee is by this Lease either entitled
                  to or required to remove upon the expiration or earlier
                  termination of this Lease (as identified and described in
                  EXHIBIT C) or "Alterations" (as defined in Section 11.0(f)
                  below) which Lessee is by this Lease either entitled to or
                  required to remove upon the expiration or earlier termination
                  of this Lease, and (ii) "Lessee's Property" (as defined in
                  Section 11.0(i) below) for the benefit of Lessee in an amount
                  equal to the replacement value thereof. Lessor shall be named
                  as a certificate holder on such policy. Lessor shall, at
                  Lessee's cost and expense, cooperate fully with Lessee and
                  execute any and all consents and other instruments and take
                  all other actions necessary to obtain the largest possible
                  recovery. Lessor shall not carry any insurance concurrent in
                  coverage and contributing in the event of loss with any
                  insurance required to be furnished by Lessee hereunder if the
                  effect of such separate insurance would be to reduce the
                  protection or the payment to be made under Lessee's insurance.

         7.3      CERTIFICATE OF INSURANCE. The insurance required by Sections
                  7.1 and 7.2 above shall be placed with insurers reasonably
                  satisfactory to Lessor and authorized to do business in
                  Massachusetts. Such insurance shall provide that it shall not
                  be amended or canceled with respect to the additional insureds
                  or certificate holders without thirty (30) days' prior written
                  notice to each of them. Lessee shall furnish to Lessor
                  certificates of insurance for all insurance required to be
                  maintained by Lessee under this Lease, together with evidence
                  satisfactory to Lessor of the payment of all premiums for such
                  policies. Lessee, at Lessor's request, shall also deliver such
                  certificates and evidence of payment of premiums to the holder
                  of any mortgage affecting the Land and Building.

                                      -12-

<PAGE>

         7.4      LESSOR'S INSURANCE. Lessor shall take out and maintain in
                  force throughout the Term, in a company or companies
                  authorized to do business in Massachusetts, casualty insurance
                  on the Building (exclusive of "Lessee's Property" and all
                  items or components of "Lessee's Work" which Lessee is by this
                  Lease either entitled to or required to remove upon the
                  expiration or earlier termination of this Lease or
                  "Alterations" which Lessee is by this Lease either entitled to
                  or required to remove upon the expiration or earlier
                  termination of this Lease, as to which Lessee is required to
                  maintain insurance pursuant to Section 7.2 above) in an amount
                  equal to the full replacement value of the Building (exclusive
                  of foundations and those items set forth in the preceding
                  parenthetical in this sentence), covering all risks of direct
                  physical loss or damage and so-called "extended coverage"
                  risks. This insurance may be maintained in the form of a
                  blanket policy covering the Building as well as other
                  properties owned by Lessor. Notwithstanding the foregoing
                  provisions of this Section 7.4, Lessor shall have the right,
                  at any time during the Term, to self-insure all or any portion
                  of the coverages required by this Section.

         7.5      WAIVER OF SUBROGATION. To the extent to which a waiver of
                  subrogation clause is available, Lessor and Lessee shall
                  obtain a provision in all insurance policies carried by such
                  party covering the Premises, including but not limited to
                  contents, fire and casualty insurance, expressly waiving any
                  right on the part of the insurer against the other party. If
                  extra cost is chargeable for such provision, then Lessee shall
                  pay such extra charge. Notwithstanding the foregoing, with
                  respect to such portion of the Term during which Lessor elects
                  to self-insure under Section 7.4 above, then for purposes of
                  this Section 7.5, Lessor shall be deemed to have maintained
                  fire and all-risk coverage in an amount equal to one hundred
                  (100%) percent of the insurable value of the Building (subject
                  to the exceptions and exclusions set forth in Section 7.4
                  above) with a waiver of subrogation clause contained therein.

         7.6      WAIVER OF RIGHTS. All claims, causes of action and rights of
                  recovery for any damage to or destruction of persons, property
                  or business which shall occur on or about the Premises, the
                  Building or the Land, which result from any of the perils
                  insured under any and all policies of insurance maintained by
                  Lessor or Lessee, are waived by each party as against the
                  other party, and the officers, directors, employees,
                  contractors, servants and agents thereof, regardless of cause,
                  including the negligence of the other party and its respective
                  officers, directors, employees, contractors, servants and
                  agents, but only to the extent of recovery, if any, under such
                  policy or policies of insurance; PROVIDED, HOWEVER, that (i)
                  this waiver shall be null and void to the extent that any such
                  insurance shall be invalidated by reason of this waiver, and
                  (ii) with respect to such portion of the Term during which
                  Lessor elects to self-insure under Section 7.4 above, then for
                  purposes of this Section 7.6, Lessor shall be deemed to have
                  maintained fire and all-risk coverage in an amount equal to
                  one hundred (100%) percent of the insurable value of the
                  Building (subject to the exceptions and exclusions set forth
                  in Section 7.4 above).

                                      -13-

<PAGE>

8.0      ASSIGNMENT AND SUBLETTING. (a) Lessee shall not mortgage, pledge,
         hypothecate, grant a security interest in, or otherwise encumber this
         Lease or any sublease hereinafter entered into by Lessee, or assign
         this Lease, or sublease the Premises or any portion thereof (the term
         "sublease" shall be deemed to include any arrangement pursuant to which
         a third party is permitted by Lessee to occupy all or any portion of
         the Premises), without obtaining, on each occasion, the prior written
         consent of Lessor, which consent shall not be unreasonably withheld or
         delayed. Lessee may only assign this Lease or sublease to persons or
         entities which will actually occupy the Premises or the portion thereof
         so subleased.

         (b) If Lessee wishes to assign this Lease or sublease all or any
         portion of the Premises, Lessee shall so notify Lessor in writing and
         request Lessor's consent thereto. Such notice shall include (i) the
         name of the proposed assignee or sublessee, (ii) a general description
         of the types of business conducted by the proposed assignee or
         sublessee and a reasonably detailed description of the business
         operations proposed to be conducted in the Premises by such person or
         entity, (iii) such financial information concerning Lessee and the
         proposed assignee or sublessee as Lessor may reasonably require (but
         such financial information shall not serve as the basis for a
         withholding of consent by Lessor), and (iv) all terms and provisions
         upon which such assignment or sublease is proposed to be made. Lessor
         shall have thirty (30) days from the day on which it receives Lessee's
         notice and such required information to give notice to Lessee that
         either (i) Lessor consents to such assignment or sublease, or (ii)
         Lessor reasonably withholds its consent to such assignment or sublease,
         in which case Lessor shall set forth the reasons therefor, or (iii)
         where applicable, Lessor is exercising its right of recapture pursuant
         to paragraph (e) below.

         (c) If Lessor consents to an assignment or sublease: (i) Lessee shall
         promptly deliver to Lessor a fully executed copy of said assignment or
         sublease, which shall be in the form previously submitted to Lessor for
         review; (ii) after any such assignment or sublease, Lessee shall remain
         primarily liable to Lessor hereunder (which liability shall be joint
         and several with the assignee or sublessee); and (iii) if the aggregate
         rent and other amounts payable to Lessee under or in connection with
         such assignment or sublease, after deduction of the costs reasonably
         incurred by Lessee in entering into such assignment or sublease
         (including, without limitation, reasonable attorneys' fees and
         expenses, brokerage commissions, and alteration costs amortized on a
         straight-line basis over the term of such sublease or, in the case of
         an assignment, over the remaining Term of this Lease), exceeds the Rent
         payable hereunder with respect to the portion of the Premises subject
         to such sublease (or, in the case of an assignment, the entire
         Premises) or if Lessee otherwise derives any net profit from such
         sublease or assignment, Lessee shall pay to Lessor, as Additional Rent,
         fifty percent (50%) of the entire amount of such excess or net profit
         immediately upon receipt thereof by Lessee. As used herein the phrase
         "the aggregate rent and other amounts payable to Lessee under or in
         connection with such assignment or sublease" shall include without
         limitation, payments received by Lessee for services such as
         glass-washing rendered by Lessee to such assignee or sublessee but only
         to the extent such payments exceed Lessee's actual costs for providing
         such services.

         (d) If Lessor reasonably withholds its consent to such assignment or
         sublease, Lessee shall not enter into the proposed assignment or
         sublease with such person or entity.

                                      -14-

<PAGE>

         (e) If Lessor elects, it shall have the right to consider Lessee's
         request for Lessor's consent to any assignment of the Lease, or a
         request for Lessor's consent to a sublease which either (i) has a
         proposed term (including extension options) of five years or more, or
         (ii) would cause more than fifty percent (50%) of the rentable area of
         the Premises (in the aggregate) to be subject to one or more subleases,
         as an offer to Lessor to release from this Lease that portion of the
         Premises which is proposed to be the subject of such sublease for the
         term of such proposed sublease or, in the case of a proposed assignment
         of this Lease, the entire Premises for the entire Lease Term. If Lessor
         accepts such offer, then (i) in the case of a proposed sublease, this
         Lease shall be deemed to be amended as of the proposed effective date
         of such sublease so as to delete the portion of the Premises which
         would have been subject thereto from the Premises for purposes of this
         Lease (with a commensurate adjustment in Rent and Lessee's Share) for
         the time period of what would have been the term of such sublease, or
         (ii) in the case of a proposed assignment, this Lease shall terminate
         as of the proposed effective date of such assignment as if such date
         was the last day of the Term.

         (f) Regardless of whether Lessor grants such consent, Lessee shall
         reimburse Lessor on demand, as Additional Rent, for all out of pocket
         costs and expenses (including, without limitation, attorneys' fees)
         reasonably incurred by Lessor in responding to a request for such
         consent, in an amount not to exceed $2,000.00 per request.

         (g) Lessee shall not be entitled to enter into any assignment or
         sublease, or to request Lessor's consent thereto, during the
         continuance of an Event of Default hereunder by Lessee.

         (h) Any assignment or sublease entered into pursuant to this Section
         8.0 shall be subject to all of the terms and provisions of this Lease,
         including without limitation this Section 8.0. If Lessee enters into
         any such assignment or sublease, Lessor may, at any time and from time
         to time after the occurrence of a default hereunder, collect rent from
         such assignee or sublessee, and apply the net amount collected against
         Lessee's obligations hereunder, but no such assignment or sublease or
         collection shall be deemed an acceptance by Lessor of such assignee or
         sublessee as a lessee hereunder or as a release of the original named
         Lessee hereunder.

         (i) In the event that Lessee desires to assign this Lease or to
         sublease the Premises (or any portion thereof) to any corporation,
         partnership, association or other business organization directly or
         indirectly controlling or controlled by Lessee or under common control
         with Lessee, or to any successor by merger, consolidation or purchase
         of all or substantially all of the assets of Lessee (each a "Lessee
         Affiliate"), Lessee shall give at least twenty (20) days' prior written
         notice thereof to Lessor (unless Lessee is prohibited by applicable
         laws, codes, rules or regulations, or by the terms of the operative
         merger agreement or purchase and sale agreement from providing notice
         to Lessor at such time, in which event such notice shall be provided to
         Lessor as soon as Lessee is no longer subject to such prohibition). No

                                      -15-

<PAGE>

         consent of Lessor shall be required for any such assignment or
         sublease. Any assignee or sublessee which claims an interest in this
         Lease pursuant to a transfer of the type described in this paragraph
         (i) shall be bound by all of the terms and conditions of this Lease.
         For the purpose of this Lease, the sale of Lessee's capital stock
         through any public exchange shall not be deemed an assignment or
         sublease of the Lease or of the Premises.

         (j) Notwithstanding anything contained in this Lease, Lessee shall not,
         either voluntarily or by operation of law, make any transfer of this
         Lease or the Premises (or any portion thereof) which results in Lessee
         (or anyone claiming by, through or under Lessee) collecting in
         connection with the Premises any rental or other charge based on the
         net income or on the profits of any person so as to render any part of
         the Rent due hereunder "unrelated business taxable income" of Lessor as
         described in Section 512 of the Internal Revenue Code of 1986, as
         amended, and any such transfer shall be void AB INITIO.

9.0      PARKING.

         9.1.     ON-SITE PARKING SPACES. Lessee shall have the right to lease
                  in the parking area on the Land (the "On-Site Parking Area")
                  up to one and one-half (1.5) spaces per 1,000 square feet of
                  rentable area in the Premises (the "On-Site Parking
                  Spaces"). Lessee hereby agrees to lease two hundred seventy
                  (270) On-Site Parking Spaces effective on the Commencement
                  Date. If Lessee leases any space pursuant to the Right of
                  First Offer set forth in Section 1.4 above, then Lessee
                  shall have the right to lease additional On-Site Parking
                  Spaces at the ratio of 1.5 spaces per 1,000 square feet of
                  rentable area so leased, by giving written notice of the
                  number of spaces so desired at the time that Lessee
                  exercises its Right of First Offer. Lessee shall have the
                  right to decrease (but not, except as expressly provided in
                  the next succeeding sentence, to increase) the number of
                  On-Site Parking Spaces so leased (but in no event to lease
                  more than the number of spaces set forth above) by giving
                  written notice to Lessor not less than thirty (30) days
                  prior to any 6-month anniversary of the Commencement Date,
                  which notice shall be effective to reduce the number of
                  On-Site Parking Spaces so leased effective upon such 6-month
                  anniversary. Once Lessee has decreased the number of On-Site
                  Parking Spaces leased by it, Lessee shall have the right
                  thereafter, by giving written notice to Lessor, to request
                  from time to time additional On-Site Parking Spaces (up to
                  an aggregate maximum of 1.5 spaces per 1,000 square feet of
                  rentable area in the Premises), and Lessor shall have up to
                  six (6) months to provide such spaces to Lessee.

         9.2.     OFF-SITE PARKING SPACES. In addition to the On-Site Parking
                  Spaces, Lessor shall lease to Lessee an additional sixty
                  (60) parking spaces (collectively, the "Off-Site Parking
                  Spaces") in a parking lot or lots in the vicinity of the
                  Building as shown cross-hatched on EXHIBIT G attached.
                  Lessor reserves the right to relocate all or any portion of
                  the Off-Site Parking Spaces within the area shown on EXHIBIT
                  G from time to time during the Term. Lessor shall use its
                  best efforts to spread the Off-Site Parking Spaces over the
                  fewest number of parking lots possible. Notwithstanding the
                  foregoing, in the event that Lessor hereafter

                                      -16-

<PAGE>

                  reduces the number of the properties shown on EXHIBIT G used
                  for parking purposes, and consequently is unable to provide
                  some or all of the Off-Site Parking Spaces on its own
                  property, the named Lessor shall, upon request by Lessee,
                  make reasonable efforts to lease all or a portion of such
                  spaces from a third party, in which event the rent payable
                  on account of such Off-Site Parking Spaces so leased shall
                  be the amount paid by the named Lessor to such third party
                  therefor, without markup.

         9.3      ADDITIONAL RENT FOR PARKING SPACES.Lessee shall pay for each
                  parking space leased hereunder, as Additional Rent, in advance
                  on the first calendar day of each month, an amount equal to
                  the Fair Market Rent of such parking spaces, as determined
                  annually. Fair Market Rent shall be determined in the manner
                  provided in Section 3.2 above for the Initial Term except that
                  if Lessor and Lessee are unable to agree on Fair Market Rent,
                  it shall be determined by one real estate professional (rather
                  than by two or three as provided in Section 3.2) who shall
                  have the qualifications stated in said Section and shall be
                  mutually acceptable to Lessor and Lessee.

10.0     LATE PAYMENT OF RENT. Lessee agrees that in the event that any payment
         of Basic Rent or Additional Rent shall remain unpaid at the close of
         business on the tenth business day after the same is due and payable
         hereunder (without reliance on any applicable grace period), such
         payment shall bear interest from the date the same was due at a rate
         equal to the "Prime Rate" as published from time to time in THE WALL
         STREET JOURNAL while such payment is overdue PLUS three (3%) percent,
         which shall be due and payable by Lessee as Additional Rent as
         compensation for Lessor's extra administrative costs in investigating
         the circumstances of late Rent. The assessment or collection of such a
         charge shall not be deemed to be a waiver by Lessor of any default by
         Lessee arising out of such failure to pay Rent when due.

11.0     LESSEE'S COVENANTS. Lessee covenants, at its sole cost and expense,
         during the Term and such further time as Lessee occupies any part of
         the Premises:

         (a)      to pay when due the Basic Rent and all Additional Rent, and,
                  if separately metered at any time during the Term, all
                  charges for electricity and other utilities;

         (b)      damage by fire or casualty and reasonable wear and tear only
                  excepted, to keep the Premises (including window glass) in as
                  good order, repair and condition as the same are in at the
                  commencement of the Term, or may be put in thereafter;

         (c)      not to injure, overload or deface the Premises or the
                  Building, nor to suffer or commit any waste therein, nor to
                  place a load upon any floor which exceeds the floor load
                  which the floor was designed to carry, nor to connect any
                  equipment or apparatus to any Building system (e.g.,
                  electrical, plumbing, mechanical) which exceeds the capacity
                  of such system, nor to permit on the Premises any auction
                  sale

                                      -17-

<PAGE>

                  or any nuisance or the emission therefrom of any objectionable
                  vibration, noise, or odor, nor to permit the use of the
                  Premises for any purpose other than the Permitted Uses, nor
                  any use thereof which is contrary to any laws, ordinances,
                  codes, rules and regulations, or the provisions of any
                  license, permit or other governmental consent or approval
                  required for or applicable now or at any time during the Term
                  to the Land, the Building or the Premises or Lessee's use
                  therefor (collectively, "Legal Requirements"), or which is
                  liable to invalidate or increase the premiums for any
                  insurance on the Building or its contents, or liable to
                  render necessary any alterations or additions to the
                  Building;

         (d)      not to obstruct in any manner any portion of the Building not
                  hereby leased, or the sidewalks or approaches to the Building,
                  or the On-Site Parking Area, or any hallways or Common Areas,
                  and to conform to all reasonable rules now or hereafter made
                  by Lessor for the care and use of the Building, its facilities
                  and approaches;

         (e)      to comply with all Legal Requirements and all
                  recommendations of Lessor's fire insurance rating
                  organization now or hereafter in effect, to keep the
                  Premises equipped with all safety appliances, and to procure
                  (and maintain in full force and effect) all licenses,
                  permits and other governmental consents and approvals
                  required by any Legal Requirement or by the provisions of
                  any applicable insurance policy because of the use made of
                  the Premises by Lessee (without hereby intending to vary the
                  provisions of Section 4.0 above), and, if requested by
                  Lessor, to make all repairs, alterations, replacements or
                  additions so required in and to the Premises;

         (f)      not to make any alterations, renovations, improvements
                  and/or additions to the Premises (collectively,
                  "Alterations") without on each occasion obtaining the prior
                  written consent of Lessor, which consent may be withheld by
                  Lessor in its reasonable discretion taking into account the
                  effect of such proposed Alterations on the structural
                  integrity of the Building, whether such proposed Alterations
                  would be detrimental to or incompatible with the Building
                  systems, and the effect of such proposed Alterations on the
                  external appearance of the Building (except that no such
                  prior written consent of Lessor shall be required for
                  Alterations which (i) shall not exceed $50,000 in each
                  instance, and (ii) do not affect the structural integrity of
                  the Building, and (iii) are not detrimental to or
                  incompatible with the Building systems, and (iv) do not
                  affect the exterior appearance of the Building, PROVIDED
                  that in each such case (x) Lessee shall still provide
                  advance notice to Lessor of the intended Alterations, and
                  (y) such Alterations shall be subject to all of the
                  provisions of this paragraph (f) other than the requirement
                  of Lessor's prior consent), or to make any holes in any part
                  of the Building or paint or place any signs, awnings, or the
                  like, visible from outside of the Premises. Prior to
                  commencing any Alterations, Lessee shall: secure all
                  necessary licenses, permits and other governmental consents
                  and approvals; obtain the written approval of Lessor as to
                  the plans and specifications for such work (where such
                  approval is required under this paragraph (f)); obtain the
                  written approval of Lessor as to the general contractor (or
                  as to each trade contractor if there is no general
                  contractor); cause each contractor and subcontractor to
                  carry

                                      -18-

<PAGE>

                  worker's compensation insurance in statutory amounts
                  covering all of the contractor's and subcontractor's
                  employees; and cause each general contractor (or each trade
                  contractor if there is no general contractor) and
                  subcontractor to carry comprehensive public liability
                  insurance in amounts reasonably satisfactory to Lessor (such
                  insurance to be written by companies reasonably satisfactory
                  to Lessor and insuring Lessee and Lessor as well as the
                  contractors and subcontractors). All Alterations shall be
                  consistent with the ""Tenant Standards" set forth on EXHIBIT
                  H attached hereto and shall be of a quality equal to or
                  better than that set forth therein. All Alterations (other
                  than Lessee's removable personal property and trade
                  fixtures) and all "Lessee's Work" shall remain part of the
                  Premises and shall not be removed upon the expiration or
                  earlier termination of the Term EXCEPT for those items which
                  Lessor designates for removal in a notice given to Lessee
                  either (a) at the time that Lessee requests Lessor's
                  approval of such Alteration (if such approval is required
                  hereunder) or (b) within ten (10) days after Lessee notifies
                  Lessor of its intent to make such Alteration (where Lessor's
                  prior approval is not required hereunder). Lessee shall pay
                  promptly when due the entire cost of such work. Lessee shall
                  not cause or permit any liens for labor or materials
                  performed or furnished in connection therewith to attach to
                  the Land or the Building, and shall discharge or bond any
                  such liens which may be filed or recorded against the
                  Premises within fifteen (15) days after the filing or
                  recording thereof. All such work shall be performed in a
                  good and workmanlike manner and in compliance with all Legal
                  Requirements and the provisions of all applicable insurance
                  policies. Promptly after the completion of any Alterations,
                  Lessee shall provide as-built plans thereof to Lessor.
                  Lessee shall indemnify and hold Lessor harmless from and
                  against any and all suits, demands, causes of action,
                  claims, losses, debts, liabilities, damages, penalties or
                  judgments, including, without limitation, reasonable
                  attorneys' fees, arising from injury to any person or
                  property occasioned by or growing out of such work, which
                  indemnity shall survive the expiration or termination of
                  this Lease;

         (g)      to save Lessor harmless and indemnified from any loss, cost
                  and expense (including, without limitation, reasonable
                  attorneys' fees) arising out of or relating to (i) a claim
                  of injury to any person or damage to any property while on
                  the Premises, if not due to the negligence or willful
                  misconduct of Lessor or its officers, agents, employees,
                  servants or contractors, or the breach of Lessor's
                  obligations under this Lease; or to (ii) a claim of injury
                  to any person or damage to any property anywhere alleged to
                  be occasioned by any omission, neglect or default of Lessee
                  or of anyone claiming by, through, or under Lessee, or any
                  officer, agent, employee, servant, contractor or invitee of
                  any of the foregoing. Lessor agrees to indemnify and hold
                  harmless Lessee from and against all loss, cost and expense
                  (including, without limitation, reasonable attorneys' fees)
                  arising out of or relating to a claim for personal injury or
                  property damage resulting from the negligence or willful
                  misconduct of Lessor or its officers, agents, employees,
                  servants or contractors, or from the breach of Lessor's
                  obligations or representations under this Lease. The
                  provisions of this clause (g) shall survive the expiration
                  or termination of this Lease;

                                      -19-

<PAGE>

         (h)      to permit Lessor and Lessor's agents to examine the Premises
                  at reasonable times (provided 24 hours' notice is given to
                  Lessee, except in case of emergency), and if Lessor shall so
                  elect (without hereby imposing any obligation on Lessor to
                  do so), to permit Lessor to make any repairs or additions
                  Lessor may deem necessary; and at Lessee's expense to remove
                  any Alterations, signs, awnings, aerials, flagpoles or the
                  like not consented to in writing; and to permit Lessor to
                  show the Premises to prospective purchasers and lessees (at
                  reasonable times on reasonable advance notice to Lessee) and
                  to keep affixed to any suitable part of the Premises, during
                  the nine (9) months preceding the expiration of the Term,
                  appropriate notices for letting or selling; any entry by
                  Lessor onto the Premises, whether made pursuant to this
                  paragraph or otherwise, shall be made in accordance with
                  Lessee's reasonable standard operating procedures as set
                  forth in writing and previously delivered to Lessor (but in
                  cases of emergencies Lessor shall be required only to use
                  reasonable efforts to comply with such standard operating
                  procedures);

         (i)      that all furniture, furnishings, fixtures and property of
                  every kind of Lessee and of all persons claiming by, through
                  or under Lessee which may be on the Premises from time to time
                  (collectively, "Lessee's Property") shall be at the sole risk
                  of Lessee, and Lessor shall not be liable if the whole or any
                  part thereof shall be destroyed or damaged by fire, water or
                  otherwise, or by the leakage or bursting of water pipes, steam
                  pipes, or other pipes, or by theft or from any other cause
                  unless caused by the negligence or willful misconduct of
                  Lessor, or its officers, agents, employees, servants or
                  contractors;

         (j)      to pay promptly when due, all taxes of any kind levied,
                  imposed or assessed on Lessee's Property, which taxes shall be
                  the sole obligation of Lessee, whether the same is assessed to
                  Lessee or to any other person and whether the property on
                  which such tax is levied, imposed or assessed shall be
                  considered part of the Premises or personal property;

         (k)      by the end of business on the last day of the Term (or the
                  effective date of any earlier termination of this Lease as
                  herein provided), to remove (1) all of Lessee's Property and
                  (2) the items or components of Alterations designated for
                  removal as provided in paragraph (f) above and (3) the items
                  or components of "Lessee's Work" designated for removal as
                  identified and described on EXHIBIT C, in each case whether
                  the same be permanently affixed to the Premises or not, and
                  to repair any damage caused by any such removal to Lessor's
                  reasonable satisfaction; and to remove the contents of all
                  neutralization tanks installed by Lessee in the Premises;
                  and peaceably to yield up the Premises clean and in good
                  order, repair and condition (reasonable wear and tear, and
                  damage by fire or other casualty or taking which Lessee is
                  not otherwise required by the terms of this Lease to repair
                  or replace only excepted); and to deliver the keys to the
                  Premises to Lessor. Any of Lessee's Property or those
                  Alterations designated for removal as provided in paragraph
                  (f) above which are not removed by such date shall be deemed
                  abandoned and may be removed and disposed of by Lessor in
                  such manner as Lessor may determine, and

                                      -20-

<PAGE>

                  Lessee shall pay to Lessor on demand, as Additional Rent, the
                  entire cost of such removal and disposition, together with the
                  costs and expenses incurred by Lessor in making any incidental
                  repairs and replacements to the Premises necessitated by
                  Lessee's failure to remove Lessee's Property or those
                  Alterations designated for removal as provided in paragraph
                  (f) above, as required herein, or by any other failure of
                  Lessee to comply with the terms of this Lease, and for use and
                  occupancy during the period after the expiration of the Term
                  and prior to Lessee's performance of its obligations under
                  this paragraph (k). Lessee shall further indemnify and hold
                  Lessor harmless from and against any and all suits, demands,
                  causes of action, claims, losses, debts, liabilities,
                  damages, penalties or judgments, including, without
                  limitation, reasonable attorneys' fees, resulting from
                  Lessee's failure or delay in surrendering the Premises as
                  above provided (such indemnity to survive the expiration or
                  termination of this Lease);

         (l)      to pay Lessor's reasonable expenses, including reasonable
                  attorneys' fees, incurred in enforcing any obligations of
                  Lessee under this Lease;

         (m)      not to generate, store or use any "Hazardous Materials" (as
                  hereinafter defined) in or on the Premises or elsewhere in
                  the Building or on the Land except those identified in
                  writing to Lessor from time to time, and then only in
                  compliance with any and all applicable Legal Requirements,
                  or dispose of Hazardous Materials from the Premises to any
                  other location except a properly approved disposal facility
                  and then only in compliance with any and all Legal
                  Requirements regulating such activity, nor permit any
                  occupant of the Premises to do so. As used in this Lease,
                  "Hazardous Materials" means and includes any chemical,
                  substance, waste, material, gas or emission which is
                  radioactive or deemed hazardous, toxic, a pollutant, or a
                  contaminant under any statute, ordinance, by-law, rule,
                  regulation, executive order or other administrative order,
                  judgment, decree, injunction or other judicial order of or
                  by any governmental authority, now or hereafter in effect,
                  relating to pollution or protection of human health or the
                  environment. By way of illustration and not limitation,
                  "Hazardous Materials" includes "oil", "hazardous materials",
                  "hazardous waste", and "hazardous substance" as defined in
                  the Comprehensive Environmental Response, Compensation and
                  Liability Act, 42 U.S.C. Section 9601 ET SEQ., as amended,
                  the Resource Conservation and Recovery Act of 1976, 42
                  U.S.C. Section 6902 ET SEQ., as amended, and the Toxic
                  Substances Control Act, 15 U.S.C. 8601 et SEQ., as amended,
                  the regulations promulgated thereunder, and Massachusetts
                  General Laws, Chapter 21C and Chapter 21E and the
                  regulations promulgated thereunder. If, at any time during
                  the Term, any governmental authority requires testing to
                  determine whether there has been any release of Hazardous
                  Materials by Lessee or anyone claiming by, through or under
                  Lessee, then Lessee shall reimburse Lessor upon demand, as
                  Additional Rent, for the reasonable costs thereof. Lessee
                  shall execute affidavits, certifications and the like, as
                  may be reasonably requested by Lessor from time to time
                  concerning Lessee's best knowledge and belief concerning the
                  presence of Hazardous Materials in or on the Premises, the
                  Building or the Land. Lessor reserves the right to enter

                                      -21-

<PAGE>

                  the Premises at reasonable times (provided twenty-four (24)
                  hours' notice is given to Lessee, except in case of
                  emergency) to inspect the same for Hazardous Materials, such
                  entry to be subject to the provisions of paragraph (h)
                  above. Lessee's obligations under this paragraph (m) shall
                  include, if at any time during the Term Lessee or anyone
                  claiming by, through or under Lessee uses or stores
                  radioactive materials on the Premises, compliance with all
                  so-called "close-out" procedures of the Nuclear Regulatory
                  Commission or other federal, state or local governmental
                  authorities having jurisdiction over radioactive materials,
                  regardless of whether or not such procedures are completed
                  prior to the expiration or earlier termination of the Term.
                  Lessee shall indemnify, defend, and hold harmless Lessor,
                  and the holder of any mortgage on the Building or the Land,
                  from and against any claim, cost, expense, liability,
                  obligation or damage, including, without limitation,
                  attorneys' fees and the cost of litigation, arising from or
                  relating to the breach by Lessee or anyone claiming by,
                  through or under Lessee of the provisions of this clause
                  (m), and shall immediately discharge or cause to be
                  discharged any lien imposed upon the Building or the Land in
                  connection with any such claim. Lessor shall indemnify,
                  defend, and hold harmless Lessee from and against any claim,
                  cost, expense, liability, obligation or damage, including,
                  without limitation, reasonable attorneys' fees and the cost
                  of litigation, arising from or relating to the presence
                  (whether now existing or hereafter arising) of Hazardous
                  Materials in, under or on the surface of the Land other than
                  that resulting from the generation, storage or use of
                  Hazardous Materials on the Premises or elsewhere in the
                  Building or on the Land by Lessee, or by anyone claiming by,
                  through or under Lessee, or any officer, agent, servant,
                  employee, contractor or invitee of any of the foregoing.
                  Lessor shall indemnify, defend, and hold harmless Lessee
                  from and against any claim, cost, expense, liability,
                  obligation or damage, including without limitation,
                  reasonable attorneys' fees and the cost of litigation,
                  arising from or relating to the presence of Hazardous
                  Materials in the Building (i) as of the date of this Lease,
                  or (ii) thereafter arising and resulting from the
                  generation, storage or use of Hazardous Materials in the
                  Building by the Lessor or any officer, agent, servant,
                  employee, contractor or invitee of any of the foregoing. The
                  provisions of this paragraph (m) shall survive the
                  expiration or termination of this Lease;

         (n)      not knowingly to permit any officer, agent, employee, servant,
                  contractor or visitor of Lessee, or of anyone claiming by,
                  through or under Lessee, to violate any covenant or obligation
                  of Lessee hereunder; and

         (o)      to provide and pay for the services outlined in EXHIBIT E
                  attached hereto.

12.0     Intentionally Omitted.

13.0     CASUALTY AND EMINENT DOMAIN.

         13.1     SUBSTANTIAL TAKING. In the event that the entire Building, or
                  more than fifty percent (50%) percent of the rentable area of
                  the Premises, shall be taken by any exercise of

                                      -22-

<PAGE>

                  the right of eminent domain or other lawful power in
                  pursuance of any public or other authority during the Term,
                  then this Lease shall terminate as of the time that
                  possession is taken by the taking authority. Further, in the
                  event that a material portion of the Premises is so taken
                  such that Lessee, in good faith, reasonably determines that
                  the remainder of the Premises will no longer be usable by
                  Lessee for the conduct of its normal business operations,
                  then Lessee shall have the right to terminate this Lease by
                  written notice to Lessor, in which case this Lease shall
                  terminate as of the time that possession is taken by the
                  taking authority.

         13.2     PARTIAL TAKING In the event that a taking occurs and this
                  Lease is not terminated as provided in Section 13.1 above,
                  then from and after the date possession is taken by the taking
                  authority Rent shall be abated by an amount representing that
                  part of the Rent properly allocable to the portion of the
                  Premises so taken, but this Lease shall otherwise continue in
                  full force and effect.

         13.3     AWARDS. Lessor reserves and excepts all rights to damage to
                  the Premises, the Building, the Land and the leasehold hereby
                  created, now accrued or hereafter accruing by reason of any
                  exercise of eminent domain, or by reason of anything lawfully
                  done in pursuance of any public or other authority and by way
                  of confirmation, Lessee grants to Lessor all of Lessee's
                  rights to such damages and covenants to execute and deliver
                  such further instruments of assignment thereof as Lessor may
                  from time to time request.

         13.4     SUBSTANTIAL CASUALTY. If the Premises are damaged by fire or
                  other casualty, Lessee shall promptly notify Lessor thereof.
                  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 Lessor's sole
                  opinion, be required (whether or not the Premises shall have
                  been damaged), or if such casualty renders more than
                  thirty-three (33%) percent of the rentable area of the
                  Premises unusable by Lessee for the operation of its business
                  in the Premises, or if as a result of such casualty any
                  mortgagee of the Building requires that insurance proceeds
                  payable in connection with such casualty be used to retire the
                  mortgage debt, Lessor may, at its option, terminate this Lease
                  by notifying Lessee in writing of such termination within
                  sixty (60) days after the date of such damage, in which event
                  this Lease shall terminate on the date set forth in such
                  notice. If, in the reasonable determination of Lessee, such
                  casualty renders more than thirty-three (33%) percent of the
                  rentable area of the Premises unusable by Lessee for the
                  operation of its business in the Premises, or deprives Lessee
                  of all reasonable access to the Premises, then Lessee may
                  terminate this Lease as of the date of the occurrence of such
                  damage by written notice thereof to Lessor within sixty (60)
                  days after the date of such damage. In the event that this
                  Lease is terminated pursuant to this Section 13.4 Rent shall
                  be abated, to the extent the Premises are unusable for the
                  Permitted Uses, from and after the date of such damage to the
                  date of such termination of this Lease, and no further Rent
                  shall accrue or be payable after the date of such termination.

                                      -23-

<PAGE>

         13.5     REPAIR AND RESTORATION. In the event of a taking which does
                  not result in the termination of this Lease pursuant to
                  Section 13.1 above, or a casualty which does not result in the
                  termination of this Lease pursuant to Section 13.4 above, the
                  Premises shall be repaired and restored in the manner provided
                  in this Section. Lessor shall diligently act to restore the
                  Building and the Premises (exclusive of all items or
                  components of Lessee's Work or Alterations which Lessee is by
                  this Lease either entitled to or required to remove upon the
                  expiration or earlier termination of this Lease, and Lessee's
                  Property) or, in case of taking, what remains thereof, to
                  substantially the condition in which they existed prior to the
                  occurrence of such taking or casualty, provided, however,
                  that: (i) in no event shall Lessor be required to spend in
                  connection with restoring the Premises more than the amount of
                  insurance proceeds or taking award actually received and
                  allocable thereto (except that this limitation with respect to
                  insurance proceeds shall not apply to casualties occurring
                  during such time as Lessor self-insures pursuant to Section
                  7.4 above or to the extent Lessor insures the Premises for
                  less than full replacement value as set forth in Section 7.4);
                  (ii) Lessor shall not be required to restore or replace any of
                  Lessee's Work or any Alterations which Lessee is by this Lease
                  either entitled to or required to remove upon the expiration
                  or earlier termination of this Lease; (iii) Lessor shall not
                  be required to restore or replace any of Lessee's Property;
                  and (iv) promptly upon substantial completion of such work by
                  Lessor, Lessee shall diligently act to repair and/or restore
                  all of Lessee's Property and all items or components of
                  Lessee's Work or Alterations which Lessee is by this Lease
                  either entitled to or required to remove upon the expiration
                  or earlier termination of this Lease, to substantially the
                  same condition they were in prior to the occurrence of such
                  taking or casualty. Lessor shall not be liable for any
                  inconvenience or annoyance to Lessee or injury to the business
                  of Lessee resulting in any way from such taking or damage or
                  the repair thereof. Rent shall be abated from and after the
                  date of such taking or damage to the date on which Lessor
                  substantially completes the restoration described above, to
                  the extent the Premises are unusable for the Permitted Uses.

                  In the event that, having commenced its repair, restoration
                  and reconstruction work pursuant to this Section 13.5, Lessor
                  fails to substantially complete such work either (i) within
                  six (6) months from the date of such casualty, with respect to
                  work to be performed within the Premises, or (ii) nine (9)
                  months from the date of such casualty, with respect to work to
                  be performed elsewhere in the Building which is required for
                  the operation of Lessee's business in the Premises (which
                  periods shall be extended for any delays suffered by Lessor as
                  the result of Force Majeure or the acts or omissions of
                  Lessee, its employees, agents, contractors or servants),
                  Lessee shall have the further right to terminate this Lease on
                  at least thirty (30) days' prior written notice to Lessor,
                  such notice to be given within thirty (30) days of the
                  expiration of such six (6) or (9) month period (as
                  applicable).

                                      -24-

<PAGE>

         13.6     CASUALTY DURING LAST 18 MONTHS. Notwithstanding anything to
                  the contrary contained in this Lease, in the event that a
                  material portion of the Premises is damaged by a fire or other
                  casualty occurring during the last (18) eighteen months of the
                  Lease Term such that Lessor reasonably determines that Lessor
                  will not be able to substantially complete the repair,
                  restoration or reconstruction of the Premises within three (3)
                  months of the date of such casualty, Lessor shall so notify
                  Lessee and Lessee shall have the right, within thirty (30)
                  days after its receipt of Lessor's notice, to terminate this
                  Lease on thirty (30) days prior written notice to Lessor.
                  However, if Lessee has exercised an Extension Option prior to
                  the occurrence of such casualty or thereafter exercises an
                  Extension Option within the time period allowed therefor under
                  Section 2.2, then this Section 13.6 shall not apply and
                  neither party shall have the right to terminate this Lease
                  pursuant to this Section 13.6.

14.0     DEFAULTS; EVENTS OF DEFAULT; REMEDIES.

         14.1     DEFAULTS; EVENTS OF DEFAULT. The following shall, if any
                  requirement for notice or lapse of time or both has not been
                  met, constitute defaults hereunder, and, if such requirements
                  have been met, constitute "Events of Default" hereunder:

                  (a)      The failure of Lessee to perform or observe any of
                           Lessee's covenants or agreements hereunder concerning
                           the payment of money for a period of ten (10) days
                           after written notice thereof, PROVIDED, HOWEVER, that
                           Lessee shall not be entitled to such notice if Lessor
                           has given notice to Lessee of two or more previous
                           such failures within a twelve-month period, in which
                           event such failure shall constitute an Event of
                           Default hereunder upon the expiration of ten (10)
                           days after such payment was due;

                  (b)      The failure of Lessee to maintain the insurance
                           required hereunder in full force and effect;

                  (c)      The execution by Lessee of any assignment or sublease
                           without the prior written consent of Lessor;

                  (d)      The failure of Lessee to perform or observe any of
                           Lessee's other covenants or agreements hereunder for
                           a period of thirty (30) days after written notice
                           thereof (provided that, in the case of defaults not
                           reasonably curable in thirty (30) days through the
                           exercise of reasonable diligence, such 30-day period
                           shall be extended for so long as Lessee commences
                           cure within such period and thereafter prosecutes
                           such cure to completion continuously and with
                           reasonable diligence; or

                  (e)      If the leasehold hereby created shall be taken on
                           execution, or by other process of law, and such
                           taking is not vacated by a final order of a court of
                           competent jurisdiction within sixty (60) days
                           thereafter; or if any assignment shall be made of
                           Lessee's property for the benefit of creditors; or if
                           a receiver, guardian, conservator, trustee in
                           bankruptcy or similar officer shall

                                      -25-

<PAGE>

                           be appointed to take charge of all or any part of
                           Lessee's assets by a court of competent jurisdiction,
                           and such appointment is not vacated by a final order
                           of a court of competent jurisdiction within sixty
                           (60) days thereafter; or if a petition is filed by
                           Lessee under any bankruptcy or insolvency law; or if
                           a petition is filed against Lessee under any
                           bankruptcy or insolvency law and the same shall not
                           be dismissed within sixty (60) days from the date
                           upon which it is filed; or a lien or other
                           involuntary encumbrance is filed against Lessee's
                           leasehold (or against the Premises, the Building or
                           the Land based on a claim against Lessee) and is not
                           discharged or bonded within thirty (30) days after
                           the filing thereof.

         14.2     TERMINATION. If an Event of Default shall occur, Lessor may,
                  at its option, immediately or any time thereafter and without
                  demand or notice, enter upon the Premises or any part thereof
                  in the name of the whole and repossess the same as of Lessor's
                  former estate and dispossess Lessee and those claiming through
                  or under Lessee and remove their effects, without being deemed
                  guilty of any manner of trespass and without prejudice to any
                  remedies which might otherwise be used for arrears of rent or
                  preceding breach of covenant, and upon such entry this Lease
                  shall terminate. In lieu of making such entry, Lessor may
                  terminate this Lease upon ten (10) business days' prior
                  written notice to Lessee. Upon any termination of this Lease
                  as the result of an Event of Default, Lessee shall quit and
                  peacefully surrender the Premises to Lessor.

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

         14.4     DAMAGES. In the event of any such termination Lessee shall pay
                  to Lessor the Rent up to the time of such termination. Lessee
                  shall remain liable for, and shall pay on the days originally
                  fixed for such payment hereunder, the full amount of all Basic
                  Rent and Additional Rent as if this Lease had not been
                  terminated; PROVIDED, HOWEVER, if Lessor relets the Premises,
                  there shall be credited against such obligation the amount
                  actually received by Lessor each month from such lessee after
                  first deducting all costs and expenses incurred by Lessor in
                  connection with reletting the Premises.

                  Lessee further agrees to pay to Lessor, on demand, as and for
                  liquidated and agreed damages for Lessee's default, the amount
                  (discounted to present value at a discount rate equal to the
                  then-current yield on United States Treasury securities with a
                  maturity closest to what would have been the last day of the
                  Term if this Lease had not been terminated) by which:

                                      -26-

<PAGE>

                           (a)      the aggregate Rent which would have been
                                    payable under this Lease by Lessee from the
                                    date of such termination until what would
                                    have been the last day of the Term but for
                                    such termination, EXCEEDS

                           (b)      the greater of (i) the fair and reasonable
                                    rental value of the Premises for the same
                                    period, less Lessor's reasonable estimate of
                                    expenses to be incurred in connection with
                                    reletting the Premises, including, without
                                    limitation, all repossession costs,
                                    brokerage commissions, legal expenses,
                                    reasonable attorneys' fees, alteration
                                    costs, and expenses of preparation for
                                    such reletting, or (ii) the sum of (A) the
                                    amount actually received by Lessor from
                                    reletting the Premises (if any), and (B) the
                                    amount actually received by Lessor from
                                    Lessee pursuant to the preceding paragraph
                                    of this Section (if any).

                  If the Premises or any part thereof are relet by Lessor for
                  the period prior to what would have been the last day of the
                  Term but for such termination, or any portion thereof, 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.

                  In lieu of any other damages hereunder, Lessor may by written
                  notice to Lessee, at any time within one (1) year after this
                  Lease is so terminated, elect to recover, and Lessee shall pay
                  as full and final liquidated damages, an amount equal to (i)
                  the Basic Rent and Additional Rent accrued under Sections 3.0
                  and 5.0 hereof respectively in the twelve (12) months ending
                  on the effective date of such termination, PLUS (ii) all Basic
                  Rent and Additional Rent which was unpaid as of the effective
                  date of such termination, LESS (iii) the amount received by
                  Lessor pursuant to the foregoing provisions of this Section
                  14.4 prior to the time of payment by Lessee of such liquidated
                  damages.

                  Nothing herein contained shall limit or prejudice the right of
                  Lessor 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.

         14.5     RIGHT TO RELET. At any time or from time to time after any
                  such termination, Lessor may relet the Premises or any part
                  thereof for such a term (which may be greater or less than the
                  period which would otherwise have constituted the balance of
                  the Term) and on such conditions (which may include
                  concessions or free rent) as Lessor, in its reasonable
                  discretion, may determine, and may collect and receive the
                  rents therefor. Lessor 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.

                                      -27-

<PAGE>

         14.6     RIGHT TO EQUITABLE RELIEF. In the event there shall occur an
                  Event of Default hereunder, Lessor shall be entitled to seek
                  to enjoin the continuation of the same 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 and other
                  remedies were not provided for in this Lease.

         14.7     RIGHT TO SELF HELP. In the event of an Event of Default by
                  Lessee hereunder, Lessor shall have the right to perform such
                  defaulted obligation of Lessee, including the right to enter
                  upon the Premises to do so. Lessor shall, as a courtesy only,
                  notify Lessee of its intention to perform such obligation. In
                  the event of a default by Lessee hereunder which has not yet
                  continued beyond the expiration of the applicable grace period
                  but which Lessor determines constitutes an emergency
                  threatening imminent injury to persons or damage to property,
                  Lessor shall have the right to perform such defaulted
                  obligation of Lessee (including the right to enter upon the
                  Premises to do so) after giving Lessee such notice (if any) as
                  is reasonable under the circumstances. In either event, the
                  aggregate of (i) all sums so paid by Lessor, (ii) interest (at
                  the rate set forth in Section 10.0 above or the highest rate
                  permitted by law, whichever is less) on such sum, and (iii)
                  all necessary incidental costs and expenses in connection with
                  the performance of any such act by Lessor, shall be deemed to
                  be Additional Rent under this Lease and shall be payable to
                  Lessor immediately upon demand. Lessor may exercise its rights
                  under this Section 14.7 without waiving any other of its
                  rights or releasing Lessee from any of its obligations under
                  this Lease.

         14.8     FURTHER REMEDIES. Nothing in this Lease contained shall
                  require Lessor to elect any remedy for a default or Event of
                  Default by Lessee hereunder, and all rights herein provided
                  shall be cumulative with one another and with any other rights
                  and remedies which Lessor may have at law or in equity in the
                  case of such a default or Event of Default.

15.0     REAL ESTATE BROKER. Lessor and Lessee each represent to the other that
         they have dealt with no broker in connection with this Lease other than
         Meredith and Grew, Inc. and Insignia ESG, Inc. (collectively, the
         "Brokers"). Lessor is not obligated to pay any commission or fee to
         Meredith and Grew, Inc. in connection with this transaction but has
         agreed to pay a commission to Insignia ESG, Inc. as set forth in a
         separate agreement. Lessee agrees to indemnify and hold Lessor harmless
         from and against any claims for commissions or fees by any person other
         than the Brokers by reason of any act of Lessee or its representatives.
         Lessor agrees to indemnify and hold Lessee harmless from and against
         any claims for commissions or fees by the Brokers or any other person
         by reason of any act of Lessor or its representatives.

16.0     NOTICES. Whenever by the terms of this Lease notice, demand, or other
         communication shall or may be given either to Lessor or to Lessee, the
         same shall be in writing and shall be sent by hand delivery, or by
         registered or certified mail, postage prepaid, or by Federal Express or
         other similar overnight delivery service, to:

                                      -28-

<PAGE>

         Lessor:                          Massachusetts Institute of Technology
                                          238 Main Street - Suite 200
                                          Cambridge, Massachusetts  02142
                                          Attention:  Steven C. Marsh
                                          Managing Director of Real Estate

                  with a copy to:         Stuart T. Freeland, Esquire
                                          Rackemann, Sawyer & Brewster
                                          One Financial Center
                                          Boston, Massachusetts 02111

         Lessee                           Millennium Pharmaceuticals, Inc.
                                          75 Sidney Street
                                          Cambridge, Massachusetts 02139
                                          Attention:General Counsel

                  with a copy to:         Katharine E. Bachman, Esquire
                                          Hale and Dorr
                                          Sixty State Street
                                          Boston, MA 02109

         Any notice, demand or other communication shall be effective upon
         receipt by or tender for delivery to the intended recipient thereof.

17.0     NO WAIVERS. Failure of Lessor to complain of any act or omission on the
         part of Lessee, no matter how long the same may continue, shall not be
         deemed to be a waiver by Lessor of any of its rights hereunder. No
         waiver by Lessor at any time, expressed or implied, of any breach of
         any provision of this Lease shall be deemed a waiver of a breach of any
         other provision of this Lease or a consent to any subsequent breach of
         the same or any other provision. No acceptance by Lessor of any partial
         payment shall constitute an accord or satisfaction but shall only be
         deemed a partial payment on account; nor shall any endorsement or
         statement on any check or any letter accompanying any check or payment
         be deemed an accord and satisfaction, and Lessor may accept such check
         or payment without prejudice to Lessor's right to recover the balance
         of such installment or pursue any other remedy available to Lessor in
         this Lease or at law or in equity.

18.0     SERVICES PROVIDED BY LESSOR. Lessor shall furnish the services
         described on EXHIBIT "D" attached, the cost of which shall be included
         in Operating Expenses. Lessor shall not be held liable to anyone for
         cessation of any service rendered customarily to the Premises or
         Building or agreed to by the terms of this Lease, due to any accident,
         to the making of repairs, alterations or improvements, or to the
         occurrence of an event of "Force Majeure" (as defined in Section 22
         below).

                                      -29-

<PAGE>

19.0     GROUND LEASES; MORTGAGES.

         19.1     RIGHTS OF GROUND LESSORS AND MORTGAGEES No act or failure to
                  act on the part of Lessor which would entitle Lessee under the
                  terms of this Lease, or by law, to be relieved of Lessee'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) Lessee shall have first
                  given written notice to Lessor's ground lessors and mortgagees
                  of record of the act or failure to act on the part of Lessor
                  which Lessee claims as the basis of Lessee's rights; and (ii)
                  such ground lessors and mortgagees, after receipt of such
                  notice, have failed or refused to correct or cure the
                  condition within a reasonable time thereafter, but nothing in
                  this Lease shall be deemed to impose any obligation on any
                  such ground lessor or mortgagee to correct or cure any such
                  condition. No ground lessor shall be liable for the failure to
                  perform any of the obligations of Lessor hereunder unless and
                  until such ground lessor terminates its ground lease and takes
                  possession of the Premises, nor shall any mortgagee be liable
                  for the failure to perform any of the obligations of Lessor
                  hereunder unless and until such mortgagee enters upon and
                  takes possession of the Premises for purposes of foreclosure.

         19.2     LEASE SUBORDINATE. This Lease is and shall be subject and
                  subordinate to any ground lease or mortgage now or hereafter
                  on the Premises, and to all advances under any such mortgage
                  and to all renewals, amendments, extensions and consolidations
                  thereof, provided that the holder of such ground lessor's
                  interest or mortgagee's interest enters into a non-disturbance
                  and attornment agreement with Lessee which provides that in
                  the event that such ground lessor or mortgagee succeeds to
                  Lessor's interest hereunder, then, provided that Lessee is not
                  in default hereunder beyond the cure period provided in this
                  Lease, such party shall recognize and be bound by the terms of
                  this Lease. In the event that any ground lessor or the holder
                  of any mortgage succeeds to Lessor's interest in the Premises
                  or any portion thereof, Lessee hereby agrees to attorn to such
                  ground lessor or mortgagee. In confirmation of such
                  subordination, Lessee shall execute and deliver promptly any
                  certificate in recordable form that Lessor or any ground
                  lessor or any mortgagee may reasonably request.
                  Notwithstanding the foregoing provisions of this Section, the
                  holder of any mortgage on the Premises may at any time
                  subordinate its mortgage to this Lease by written notice to
                  Lessee.

                  Lessor hereby represents to Lessee that as of the date of this
                  Lease, there are no mortgages or ground leases encumbering the
                  Premises or any portion thereof.

20.0     NOTICE OF LEASE; ESTOPPEL CERTIFICATES. Lessor and Lessee agree that
         this Lease shall not be recorded. However, upon the request of either
         party, Lessor and Lessee shall execute and acknowledge a Notice of
         Lease in mutually acceptable and recordable form.

                                      -30-

<PAGE>

         From time to time during the Lease Term, and without charge, either
         party shall, within fifteen (15) business days of request by the other,
         certify by written instrument duly executed and acknowledged, to the
         requesting party or to any person reasonably specified by the
         requesting party, regarding (a) the existence of any amendments or
         supplements to this Lease; (b) the validity and force and effect of
         this Lease; (c) the existence of any known default or Event of Default;
         (d) the existence of any offsets, counterclaims or defenses; (e) the
         Commencement Date and the expiration date of the Lease Term; (f) the
         amount of Rent due and payable and the date to which Rent has been
         paid; and (g) such other matters as may be reasonably requested.

21.0     HOLDING OVER. If Lessee occupies the Premises after the day on which
         the Lease Term expires (or the effective date of any earlier
         termination as herein provided) without having entered into a new lease
         thereof with Lessor, Lessee shall be a tenant-at-sufferance only,
         subject to all of the terms and provisions of this Lease at (i) two (2)
         times the then-effective Basic Rent stated in Section 3.0 above for the
         first three (3) months thereof, and (ii) thereafter, at three (3) times
         the then-effective Basic Rent stated in Section 3.0 above. Such a
         holding over, even if with the consent of Lessor, shall not constitute
         an extension or renewal of this Lease. For purposes of this Section,
         the failure of Lessee to complete by the last day of the Lease Term or
         the effective date of any earlier termination as herein provided the
         "close-out" procedures required by the Nuclear Regulatory Commission or
         any other federal, state or local governmental agency having
         jurisdiction over the use of radioactive materials within the Premises
         shall constitute a holding over and subject Lessee to the provisions of
         this Section.

22.0     FORCE MAJEURE. Neither Lessor nor Lessee shall be deemed to be in
         default hereunder (and the time for performance of any of their
         respective obligations hereunder other than the payment of money shall
         be postponed) for so long as the performance of such obligation is
         prevented by strike, lock-out, act of God, absence of materials or any
         other matter not reasonably within the control of the party which must
         perform the obligation (collectively, "Force Majeure").

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

24.0     SECURITY DEPOSIT. Lessee has deposited with Lessor $80,732.00 (the
         "Security Deposit") as security for the full and faithful payment and
         performance by Lessee of its obligations under this Lease from and
         after the date of execution hereof by Lessee, and not as a prepayment
         of Rent. Lessor may commingle the Security Deposit in one or more bank
         accounts with other funds of Lessor, and the Security Deposit shall
         earn interest at the rate actually paid to Lessor from time to time on
         such account (which interest shall be included in the term "Security
         Deposit" for the purposes of this Lease). Lessor may use the Security
         Deposit to cure any Event of Default by Lessee (whether occurring prior
         to the Commencement Date hereunder or thereafter), and Lessee shall
         immediately pay to Lessor on demand, as Additional Rent, the amount so
         expended and such additional amount as is required to cause the
         Security Deposit at all times to equal the amount set forth above.
         Lessor shall

                                      -31-

<PAGE>

         assign the Security Deposit to any successor owner of the Building and
         thereafter Lessor shall have no further responsibility therefor. Upon
         the expiration (or earlier termination) of the Lease Term, Lessor shall
         inspect the Premises, make such deductions from the Security Deposit as
         may be required to cure any Event of Default by Lessee hereunder, and,
         if Lessee is not then in default hereunder, pay the balance of the
         Security Deposit, if any, to Lessee within thirty (30) days of such
         expiration or termination. If Lessee is in default hereunder at the
         time of such expiration or termination, then Lessor shall be entitled
         to retain so much of the Security Deposit as Lessor reasonably
         estimates to be Lessee's liability to Lessor hereunder and shall pay
         the balance, if any, to Lessee within such 30-day period.

25.0     SATELLITE DISH. Lessee shall have the right to maintain the existing
         satellite dish antenna not exceeding twenty-four (24) inches in
         diameter on the roof of the Building provided that:

         (a)      such antenna shall be used solely by Lessee and those
                  occupying all or portions of the Premises pursuant to an
                  assignment or sublease with Lessee made in accordance with the
                  provisions of Section 8.0 of this Lease, unless Lessor
                  otherwise agrees in writing;

         (b)      to the extent to which the issuer of the warranty on the roof
                  requires, as a condition to the continued validity of such
                  warranty, that only contractors approved by such issuer
                  perform work on the roof, Lessee shall employ only such
                  contractors as are approved by such issuer and shall submit
                  evidence of such approval to Lessor reasonably satisfactory to
                  Lessor prior to commencing any work on the roof;

         (c)      Lessee shall, at its sole cost, maintain such antenna in good
                  operating condition and in accordance with all applicable
                  Legal Requirements, the provisions of applicable insurance
                  policies, and the requirements of all existing restrictions,
                  easements and encumbrances of record affecting the Land; and

         (d)      Lessee shall, at its sole cost, remove such antenna on or
                  prior to the date on which the Term expires or this Lease is
                  terminated, and shall restore the surface of the roof to the
                  condition in which it was prior to the installation of such
                  antenna, again using only such contractor as is approved by
                  the issuer of the warranty covering the roof of the Building,
                  and Lessee shall submit evidence of such approval to Lessor
                  reasonably satisfactory to Lessor prior to commencing any work
                  on the roof.

                  "All work done by or on behalf of Lessee pursuant to this
                  Section 25.0 shall be subject to the requirements set forth
                  elsewhere in this Lease with respect to the performance of
                  Alterations. Lessor may inspect such work at any time or times
                  and shall promptly give notice to Lessee of any observed
                  defects. Lessee shall

                                      -32-

<PAGE>

                  indemnify, defend and hold harmless Lessor 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 attorneys'
                  fees, resulting from any work performed by or on behalf of
                  Lessee pursuant to this Section 25.0. Such antenna shall be at
                  Lessee's sole risk, Lessor shall have no responsibility to
                  maintain any insurance on it, and Lessor shall not otherwise
                  be responsible for any damage or destruction to such antenna
                  unless such damage or destruction is caused by Lessor's
                  negligence."

26.0     EXISTING LEASE. The Existing Lease as it may hereafter be amended,
         shall remain in full force and effect until the Commencement Date
         hereunder after which the obligations of the parties in respect to the
         Premises, the Building and the Land shall be governed by this Lease
         except for obligations under the Existing Lease which, in accordance
         with its terms, are intended to survive its expiration. Notwithstanding
         the foregoing, if an Event of Default occurs under the Existing Lease
         prior to the Commencement Date hereunder, then, for the purpose of
         calculating damages under the Existing Lease, the remaining term of the
         Existing Lease will be deemed to include the Term of this Lease at the
         Rent set forth in Sections 3.0 and 5.0 hereof.

27.0     SUCCESSORS AND ASSIGNS. The terms, covenants and conditions of this
         Lease shall run with the Land, and be binding upon and inure to the
         benefit of Lessor and Lessee and their respective successors and
         permitted assigns.

28.0     APPLICABLE LAW, SEVERABILITY AND CONSTRUCTION. This Lease shall be
         governed by and construed in accordance with the laws of Massachusetts
         and, if any provisions of this Lease shall to any extent be invalid,
         the remainder of this Lease, and the application of such provisions in
         other circumstances, shall not be affected thereby. The titles of the
         several Sections contained herein are for convenience only and shall
         not be considered in construing this Lease. Whenever the singular is
         used and when required by the context it shall include the plural, and
         the neuter gender shall include the masculine and feminine. The
         Exhibits attached to this Lease are incorporated into this Lease by
         reference. 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. The term "Lessor" whenever used herein, shall mean
         only the owner at the time of Lessor's interest herein, and no covenant
         or agreement of Lessor, express or implied, shall be binding upon any
         person except for defaults occurring during such person's period of
         ownership nor binding individually upon any fiduciary, any shareholder,
         officer or director, or any beneficiary under any trust, and the
         liability of Lessor, in any event, shall be limited to Lessor's
         interest in the Building. If Lessee is several persons or a
         partnership, Lessee's obligations are joint or partnership and also
         several. Unless repugnant to the context, "Lessor" and "Lessee" mean
         the person or persons, natural or corporate, named above as Lessor and
         as Lessee respectively, and their respective heirs, executors,
         administrators, successors and assigns.

29.0     AUTHORITY. Contemporaneously with the signing of this Lease, Lessee
         shall furnish to Lessor a certified copy of the resolution of the Board
         of Directors of Lessee authorizing

                                      -33-

<PAGE>

         Lessee to enter into this Lease, and Lessor shall furnish appropriate
         evidence of the authority of Lessor to enter into this Lease

         WITNESS the execution hereof in counterparts under seal the day and
year first above written.

         LESSOR:                                 MASSACHUSETTS INSTITUTE OF
                                                 TECHNOLOGY

                                           By:   /s/ STEVEN C. MARSH
                                                 Steven C Marsh, its Managing
                                                 Director of Real Estate
                                                 Hereunto duly authorized

         LESSEE:                                 MILLENNIUM PHARMACEUTICALS,
                                                 INC.

                                           By:   /s/ KEVIN P. STARR
                                                 Kevin P. Starr
                                                 Chief Financial Officer
                                                 Hereunto duly authorized

                                      -34-

<PAGE>

                                    EXHIBIT A

                                    PREMISES

                               [see attached plan]

[graphic]

                                      -35-

<PAGE>

                                    EXHIBIT B

                                    SITE PLAN

                               [see attached plan]

[graphic]

                                      -36-

<PAGE>

                                    EXHIBIT C

                          ITEMS DESIGNATED FOR REMOVAL

                               [see attached copy]

                                      -37-

<PAGE>

                                    EXHIBIT D

                           SERVICES PROVIDED BY LESSOR

         This Exhibit is incorporated by reference into the Lease dated December
1, 2000 by and between Massachusetts Institute of Technology, as Lessor, and
Millennium Pharmaceuticals, Inc., as Lessee. Terms defined in or by reference in
the Lease not otherwise defined herein shall have the same meaning herein as
therein.

Lessor shall provide the following services at the Building:

1.       Heating and air conditioning services for the Premises as demised at
         the start of the Term for normal office operations between the hours of
         8:00 a.m. and 6:00 p.m., Monday through Friday, except on national or
         state holidays. Excluded from such services are air conditioning
         requirements for computers or other exceptional office machinery. If
         Lessee requests air conditioning or heating services at hours other
         than those set forth above, Lessor shall provide such service, and
         Lessee shall pay Lessor's costs to furnish such service as Additional
         Rent.

2.       Maintenance of the following:

                  All Building heating equipment, electrical equipment, and
                  plumbing systems in public areas only; all Building air
                  conditioning equipment, excluding special air conditioning
                  equipment; all window frames and glass, unless the damage to
                  any of the above is caused by the willful neglect or misuse by
                  Lessee.

3.       Nightly (Monday-Friday) cleaning of the public corridors, stairwells,
         lobbies, bathrooms; and cleaning of the windows, both inside and out,
         two (2) times per year.

4.       Extermination of all public and tenanted areas of the Building, as the
         management of the Building deems necessary.

5.       Structural maintenance of the Premises including repairs to the roof,
         exterior walls of the building and structural damage to the floors.

6.       Lettering for up to a maximum of three names in the Building directory
         located in the main lobby.

7.       Snow removal, landscaping maintenance, cafeteria management, and other
         services as deemed necessary by Lessor for the normal operation of the
         Building.

8.       Security for the Building as reasonably determined by Lessor after
         consulting with Lessee and other tenants in the Building.

                                      -38-

<PAGE>

                                    EXHIBIT E

                           SERVICES PROVIDED BY LESSEE

         This Exhibit is incorporated by reference into the Lease dated December
1, 2000 by and between Massachusetts Institute of Technology, as Lessor, and
Millennium Pharmaceuticals, Inc., as Lessee. Terms defined in or by reference in
the Lease not otherwise defined herein shall have the same meaning herein as
therein.

         Lessee shall provide and pay for all maintenance of and repairs to the
Premises necessary to keep the Premises in good condition or in as good a
condition as the Premises were at the beginning of the Term or may be put in
thereafter (damage from taking or casualty or reasonable wear and tear only
excepted). Such repairs and maintenance shall include but not be limited to the
following:

          A.   The maintenance and repair of any plumbing systems within the
               Premises (and serving solely the Premises), and the repair of any
               damage to the Premises or to the Building caused by the
               malfunction of such plumbing systems;

          B.   The maintenance and repair of all electrical wiring, outlets,
               switches and light fixtures within the Premises (and serving
               solely the Premises);

          C.   The maintenance and repair of all hardware within the Premises;

          D.   The maintenance and repair of all walls, doors, ceilings, and
               floors.

          E.   The replacement of fluorescent light tubes and ballasts. This
               service is available through Building management on a time and
               materials basis.

                                      -1-

<PAGE>

                                    EXHIBIT F

                      COPY OF LESSOR'S CERTIFICATE OF TITLE

         This Exhibit is incorporated by reference into the Lease dated December
1, 2000 by and between Massachusetts Institute of Technology, as Lessor, and
Millennium Pharmaceuticals, Inc., as Lessee. Terms defined in or by reference in
the Lease not otherwise defined herein shall have the same meaning herein as
therein.

                               [See attached copy]

                                      -1-

<PAGE>

                                    EXHIBIT G

                       LOCATION OF OFF SITE PARKING SPACES

                               [see attached plan]

[graphic]

                                       -2-

<PAGE>

                                    EXHIBIT H

                                TENANT STANDARDS

                               [see attached copy]

                                      -3-<PAGE>

                                                                  Exhibit 10.8

AGREEMENT FOR LEASE

                             DATED 9TH FEBRUARY 2001

                               GRANTA PARK LTD (1)
                                  MEPC LTD (2)
                       MILLENNIUM PHARMACEUTICALS LTD (3)
                       MILLENNIUM PHARMACEUTICALS INC (4)

                                   COUNTERPART
                               AGREEMENT FOR LEASE

               RELATING TO PLOT 15A GRANTA PARK ABINGTON CAMBRIDGE
                     (AND PLOT 12 - TEMPORARY ACCOMMODATION)

                                                              Taylor Vinters
                                                              Merlin Place
                                                              Milton Road
                                                              Cambridge CB4 0DP

                                                              Tel: 01223 423444
                                                              Fax: 01223 426114

                                                              Our Ref: JMW

<PAGE>

                                      INDEX

1        Definitions
2        Interpretation
3        Detailed Specifications
4        Planning Consent
5        The Condition
6        Requisite Consents
7        Landlord's obligations with regard to the carrying out of the Works
8        Variations
9        Tenant's request for Variations to Works
10       Appointment of Consultants and Contractors and Collateral Warranties
11       CONDAM Regulations
12       Measurement
13       Termination
14       Remedy of Defects
15       Tenant's Fit Out Works
16       Disputes
17       Development Costs
18       Occupation Pending Grant of Lease
19       Grant of the Lease
20       Title
21       Encumbrances
22       Disclaimer
23       Agreement not Assignable
24       Non Merger
25       Notices
26       Insurance
27       VAT
28       Capital Allowances
29       Guarantee
30       MEPC Guarantee
31       Third Party Rights
32       Temporary Accommodation

Schedule I:       Draft Leases
Schedule II:      Encumbrances
Schedule III:     Outline Specification of the Works
Schedule IV:      Form of Landlord's Management Contract and Management
                  Contractor's Warranty
Schedule V:       Form of Consultant's Warranty
Schedule VI:      Extract of Draft Insurance Policy
Schedule VII:     Form of Consultant's Appointment

<PAGE>

Schedule VIII:    Alternative Procurement Method

T H I S  A G R E E M E N T  is made the Ninth          day of February
Two thousand and one  B E T W E E N :-

(1)      GRANTA PARK LIMITED (company registration number 3455563) whose
         registered office is at 103 Wigmore Street London W1U LAH
         ("the Landlord")

(2)      MEPC LIMITED (company registration number 00420575) whose registered
         office is at 103 Wigmore Street London W1U LAH ("MEPC")

(3)      MILLENNIUM PHARMACEUTICALS LIMITED of The Merrifield Centre Rosemary
         Lane Cambridge CB1 3LQ ("the Tenant") and

(4)      MILLENNIUM PHARMACEUTICALS INC of 75 Sidney Street Cambridge
         Massachusetts USA 02139 ("the Surety")

NOW IT IS HEREBY AGREED as follows:-

1                 DEFINITIONS
                  IN this Agreement where the context so allows:-

1.1               "Access Date" means the date following that upon which the
                  Landlord serves written notice upon the Tenant inviting the
                  Tenant to commence the carrying out of the Tenant's Fit Out
                  Works provided that the Landlord shall not serve such notice
                  until the following have been completed:-

1.1.1             all external excavation;

1.1.2             mass filling to formation level and sub-base to roads;

1.1.3             all on site drainage installations manholes and soakaways;

1.1.4             reinforced concrete structural frame including ground slab and
                  suspended power floated slabs to first and plant room floors
                  all with associated cast-in builders work ducts and voids;

<PAGE>

1.1.5             structural steel work frame for roof level plant room; and

1.1.6             incoming main services for gas electricity and water and below
                  ground duct work

1.2               "the Act" means the Town and Country Planning Act 1990 as
                  amended by the Planning and Compensation Act 1991 and includes
                  any statute amending consolidating or replacing it for the
                  time being in force

1.3               "Appeal" means both or either of the following:-

1.3.1             An appeal to the Secretary of State in accordance with the Act
                  against either refusal or deemed refusal of planning
                  permission or the grant of a planning permission subject to
                  one or more Onerous Conditions

1.3.2             A calling in of an application under s.77 of the Act

1.4               "Associated Company" means a company or body in which the
                  Surety has a controlling interest directly or indirectly

1.4               "the Building" means the building to be constructed as part
                  of the Works

1.6               "the Certificate Date" means the date of issue of the
                  Certificate of Practical Completion

1.7               "the Certificate of Practical Completion" means the
                  certificate to be issued by the Landlord's Representative
                  confirming Practical Completion of the Works

1.8               "Completion Date" means the date which is five working days
                  after the latest to happen of the following:-

1.8.1             the Interim Certificate Date

<PAGE>

1.8.2             agreement or determination of the Gross Internal Area of the
                  Building in accordance with clause 12

1.9               "the CONDAM Regulations" means the Construction (Design and
                  Management) Regulations 1994

1.10              "Consultant" means the Planning Supervisor

1.11              "Court Application" means both or either of the following as
                  the case may be namely:-

1.11.1            Any application for judicial review under Order 53 of the
                  Rules of the Supreme Court in respect of any planning
                  permission; and/or

1.11.2            An application by a person aggrieved under s.288 of the Act
                  in respect of any planning permission

1.12              "Defects Liability Period" means the period of 18 months
                  commencing on the Interim Certificate Date

1.13              "Deferred Works" means:-

1.13.1            those parts of the Works which cannot be carried out prior to
                  completion of the Tenant's Fit-Out Works;

1.13.2            the final surfacing to all roads and footpaths;

1.13.3            applied paints and finishes floor covering staircase handrails
                  and balustrades;

1.13.4            installation of doors (or final panels) providing temporary
                  access to the

<PAGE>

                  plant room forming part of the Works;

1.13.5            external doors stair lobby doors and duct riser doors; and

1.13.6            soft landscaping top soiling and planting

1.14              "the Detailed Specification" means the plans drawings and
                  specifications of the Works to be agreed pursuant to clause 3
                  hereof

1.15              "the Development" means the carrying out of the Works in order
                  to provide a new R & D office/laboratory building or linked
                  buildings (including ancillary stores or similar buildings)
                  with an aggregate Gross Internal Area of approximately 90,000
                  square feet together with such car parking as shall conform
                  with the Parking Ratio constructed partly within the Property
                  and partly in an adjacent parking grove

1.16              "the Estate" means the entirety of the property known as and
                  comprising Granta Park Abington Cambridge as designated by the
                  Landlord from time to time the present extent of which is
                  shown for identification by blue edging on Plan 1 annexed to
                  the Lease

1.17              "Event of Default" means in respect of the Tenant any one or
                  more of the following:-

1.17.1            Non-rectification by the Tenant of a material default by the
                  Tenant (in respect of any of its obligations under this
                  Agreement) of which the tenant has been given written notice
                  within the period stipulated in such notice such period to be
                  reasonable in the circumstances

1.17.2            An Event of Insolvency in relation to the Tenant or the Surety

<PAGE>

1.17.3            Material default by the Tenant in respect of any of its
                  obligations under the Tenant's Management Contract or the
                  terms of the appointment of the Tenant's Design Consultant

1.17.4            The issue by the Tenant's Management Contractor of any notice
                  terminating or indicating an intention to terminate the
                  Tenant's Management Contract

1.18              "Event of Insolvency" means in respect of any party to whom
                  it refers:-

1.18.1            If that party is a company that

1.18.1.1          It is deemed unable to pay its debts as defined in s.123 of
                  the Insolvency Act 1986 ("the Act") or goes into liquidation
                  as defined in s.247(2) of the Act or is otherwise wound up
                  (except voluntarily for the purpose of reconstruction and/or
                  amalgamation with a solvent concern) or that a provisional
                  liquidator is appointed under s.135 of the Act

1.18.1.2          A petition is presented for an administration order under Part
                  II of the Act

1.18.1.3          A receiver or manager is appointed whether under Part III of
                  the Act or otherwise

1.18.1.4          A proposal is made for a voluntary arrangement under Part I of
                  the Act or

1.18.2            If the person is an individual:-

1.18.2.1          That a bankruptcy  petition is presented to the Court or the
                  circumstances of that person are such that a bankruptcy
                  petition could be presented under Part IX of the Act

<PAGE>

1.18.2.2          That an application is made for an interim order or a proposal
                  is made for a voluntary arrangement under Part VIII of the Act

1.18.2.3          That the person otherwise compounds with his creditors or

1.18.3            In respect of the Surety bankruptcy receivership insolvency
                  re-organisation (except for the purposes of amalgamation or
                  reconstruction) or similar proceedings involving or affecting
                  the Surety

1.18.4            If any execution of distress shall be levied on any goods or
                  chattels of the party concerned

1.19              "Force Majeure" means:-

1.19.1            Fire storm tempest other extreme adverse weather conditions
                  hostilities labour lock out strikes and other industrial
                  disputes riot non-availability of materials or equipment;
                  and/or

1.19.2            Any other cause or circumstances outside the control of the
                  Landlord  provided that any such cause or circumstance:-

1.19.2.1          Materially and adversely affects the performance of the terms
                  and provisions of this Agreement; and

1.19.2.2          Cannot reasonably be avoided or provided against by the
                  Landlord

1.19.3            The operation of clause 9

1.20              "Forecast Construction Cost" means the aggregate cost of the
                  following items:-

<PAGE>

1.20.1            the forecast cost of construction agreed or determined
                  pursuant to clauses 17.3 or 17.4 of the Works on the Property
                  pursuant to the Management Contract

1.20.2            the forecast cost of construction agreed or determined
                  pursuant to clause 17.3 or 17.4 of the parking spaces
                  available for use (calculated in accordance with the Parking
                  Ratio) by the occupier of the Building and situate otherwise
                  than on the Property

1.20.3            managing contracting fees and preliminaries as agreed or
                  determined pursuant to clauses 3.1 or 3.3 hereof but excluding
                  all contingencies professional fees and fees for regulatory
                  applications and any fixed price or single lump sum allowances

1.21              "Gross Internal Area" has the meaning attributed to it in the
                  Measuring Code but calculated on the basis that the areas set
                  out in paragraph 2.6 of the Measuring Code are excluded and
                  not included

1.22              "Independent Expert" means a Fellow of the Royal Institution
                  of Chartered Surveyors of no less than 10 years calling and
                  with experience in the construction and valuation of premises
                  of a similar nature to the Property to be agreed upon by the
                  Landlord and the Tenant or in default of agreement appointed
                  by the President of the time being of the Royal Institution of
                  Chartered Surveyors on the application of either of them
                  acting as an expert and not as an arbitrator

1.23              "Insured Risks" means the risks specified in the extract of
                  the draft policy annexed hereto (as Schedule VI)

1.24              "Interest" means interest at the rate of 4% above the base
                  rate of Lloyds TSB Bank plc from time to time (as well after
                  as before judgement) or

<PAGE>

                  such other comparable rate as the Landlord may reasonably
                  designate if the base rate ceases to be published compounded
                  at quarterly rests on the 31 March 30 June 30 September and 31
                  December in each year

1.25              "Interim Certificate" means the certificate to be issued by
                  the Landlord's Representative confirming that the Works have
                  been brought to Practical Completion save for the Deferred
                  Works

1.26              "Interim Certificate Date" means the date of issue of the
                  Interim Certificate

1.27              "the Landlord" includes the Landlord's successors in title to
                  the Estate and any other person who is at any time entitled
                  to the reversion immediately expectant on the term agreed to
                  be granted by this Agreement

1.28              "Landlord's Capital Contribution" means a sum arrived at by
                  multiplying the number of square metres comprised in the Gross
                  Internal Area of the Building (as measured in accordance with
                  clause 12) by (pound)1,250 and deducting from this figure the
                  Forecast Construction Cost

1.29              "the Landlord's Percentage" means 33%

1.30              "the Landlord's Representative" means William Scott of Granta
                  Park Limited Granta Park Abington Cambridge or such other
                  person as the Landlord may appoint to fulfil such role and
                  notified in writing to the Tenant

1.31              "the Landlord's Solicitors" means Taylor Vinters of Merlin
                  Place Milton Road Cambridge or any other firm of solicitors
                  which the Landlord may from time to time notify to the Tenant
                  as being its solicitors for the purposes of this Agreement

<PAGE>

1.32              "the Lease" means the Lease of the Property in the form of
                  the draft annexed hereto (as Schedule I) to be granted by the
                  Landlord to the Tenant pursuant to this Agreement

1.33              "the Long Stop Date" means the date falling 24 months after
                  the date of grant of the Planning Consent

1.34              "the Management Contract" means a contract under seal for the
                  carrying out of the Works the form of such contract to be
                  agreed or ascertained pursuant to clauses 7.1 to 7.4 inclusive

1.35              "the Management Contractor" means Bovis Lend Lease
                  Pharmaceutical Limited (company registration number 3133137)
                  subject to guarantee by Bovis Lend Lease Holdings Limited
                  (company registration number 231889) or such other company (if
                  any) as may be employed by the Landlord from time to time to
                  act as Management Contractor in respect of the Development and
                  approved by the Tenant such approval not to be unreasonably
                  withheld or delayed

1.36              "Material Variation" means any alteration or addition to or
                  omission from the Specification or the use of any materials in
                  substitution for those specified in the Specification and/or
                  the Management Contract

1.36.1            which is not insubstantial or immaterial and of a routine
                  nature, or

1.36.2            which would alter the design layout nature capacity or
                  standard of construction of the Works or which would prejudice
                  or have a materially adverse effect on the use of the Property
                  for the purposes specified in the Lease or in the case of the
                  Tenant's Fit Out Works which would alter the design layout or
                  nature of the Tenant's Fit-Out Works

<PAGE>

1.36.3            where the variation involves substitution of materials
                  those materials substituted are not of an equivalent or
                  superior standard or

1.36.4            which would cause a material delay in the construction period
                  under the Management Contract

1.37              "Measuring Code" means the Code of Measuring Practice (Fourth
                   Edition RICS/ISVA 1993)

1.38              "Onerous Condition" means a condition imposed in a planning
                  permission or any other limitation or provision of a planning
                  permission applied for under this Agreement or contained in or
                  imposed or to be imposed in any planning agreement regulating
                  the Development or use of the Property and which contains an
                  obligation or restriction of any one or more of the following
                  kinds:-

1.38.1            It requires the payment or expenditure of money or other
                  consideration by way of planning gain or on works outside the
                  Estate or

1.38.2            It prevents or unduly restricts the occupation of the Property
                  for the Permitted Use or to a named occupier or class of
                  occupiers more restricted than that referred to in the
                  Planning Agreement

1.38.3            It prevents the carrying out of the Development without the
                  agreement or co-operation of an independent third party which
                  cannot be obtained on a basis at a cost or within a time that
                  in any such case is reasonably acceptable to the Landlord and
                  the Tenant

1.38.4            It prevents or unduly restricts the development or occupation
                  of any other part of the Estate

<PAGE>

1.39              "Outline Specification" means the outline specification of the
                   Works contained in Schedule III

1.40              "Parking Ratio" means one car parking space for each 24
                  square metres of the gross external area of the Building (as
                  determined by the relevant planning authority) or such lesser
                  ratio as may be imposed by the relevant planning authority
                  prior to the grant of the Planning Consent

1.41              "Permitted Use" means the use permitted by the Lease

1.42              "Planning Consent" means a reserved matters approval
                  authorising the carrying out of the Development in accordance
                  with the Specification and the use of the Property for the
                  Permitted Use and which does not contain any Onerous
                  Conditions

1.43              "Planning Agreement" means the Section 106 Town and Country
                  Planning Act 1990 Agreement dated 28 day of August 1996 as
                  amended by a Section 106 Agreement dated 10 June 1998 and a
                  Supplemental Agreement dated 11 June 1998

1.44              "the Planning Supervisor" means such firm or company of
                  planning supervisors as may be appointed by the Landlord in
                  connection with the Development and approved by the Tenant
                  such approval not to be unreasonably withheld or delayed

1.45              "Practical Completion" means the Practical Completion of the
                  Development in accordance with the Management Contract

1.46              "the Property"  means the land known as Plot 15A Granta Park
                  together with the Building (so far as constructed

<PAGE>

                  from time to time) constructed thereon as part of the
                  Development and as more particularly described in Part I of
                  Schedule I to the Lease

1.47              "Relevant Date" means 30 November 2001

1.48              "Rent Commencement Date" means the date which is the later
                  of:-

1.48.1            The date of expiry of the period of 12 months from the Access
                  Date;

1.48.2            The date of expiry of the period of 6 months from the Interim
                  Certificate Date and

1.48.3            The date being the earlier of the date upon which the Tenant
                  takes up beneficial occupation of the Premises for the purpose
                  of carrying out its business and the date of expiration of the
                  period of 21 months from the date upon which the Landlord
                  commences the carrying out of the Works but provided that such
                  period will be extended by any periods of delay in the
                  carrying out of the Works which are attributable to:

1.48.3.1          Force Majeure under the Management Contract; or

1.48.3.2          The insolvency of the Management Contractor or any
                  sub-contractor involved in the carrying out of the Works; or

1.48.3.3          Any failure on the part of the Landlord to comply with its
                  obligations under the Management Contract; and

               BUT provided that such periods shall run concurrently and shall
               not be cumulative

1.49              "Requisite Consents" means those permissions consents
                  approvals

<PAGE>

                  licences certificates and permits which may be necessary in
                  order to lawfully carry out maintain and complete the
                  Development and to permit the Tenant's occupation of the
                  Property for the Permitted Use but excluding those relating to
                  the Tenant's particular business

1.50              "Sub-Contractor" means any sub-contractor employed by the
                  Management Contractor to undertake any part of the Works

1.51              "Secretary of State" means the Secretary of State for the
                  Environment or other Minister or authority for the time being
                  having the right to exercise the powers now conferred upon the
                  Secretary of State for the Environment by s.77 78 and 79 of
                  the Act

1.52              "Settlement Date" means the date falling 5 Working Days after
                  the later of the issue of a certificate of practical
                  completion in respect of the Tenant's Fit Out Works and the
                  determination of the amount of the Landlord's Capital
                  Contribution pursuant to clause 17 hereof

1.53              "Site Meeting" means any of the pre-arranged meetings between
                  the Management Contractor the Consultants and Sub--Contractors
                  relating to the Works

1.54              "the Specification" means the Detailed Specification of the
                  Works

1.55              "Target Development Cost" means a sum no less than L850
                  multiplied by the number of square metres of Gross Internal
                  Area and no greater than(pound)900 multiplied by the number of
                  square metres of Gross Internal Area

1.56              "the Tenant" includes any successors in title of the Tenant
                  or assignees of the benefit of this Agreement approved by the
                  Landlord pursuant to clause 23

<PAGE>

1.57              "Tenant's Design Consultant" means such person firm or company
                  as may be employed by the tenant from time to time in
                  connection with the Tenant's Fit Out Works with the approval
                  of the Landlord such approval not to be unreasonably withheld
                  or delayed

1.58              "Tenant's Management Contractor" means the company appointed
                  by the Tenant to carry out the Tenant's Fit Out Works and
                  whose identity shall be approved by the Landlord such approval
                  not to be unreasonably withheld or delayed

1.59              "Tenant's Consultants" means the Tenant's Design Consultant
                  and the Tenant's Planning Supervisor

1.60              "Tenant's Fit Out Specification" means the plans drawings and
                  specifications of the Tenant's Fit Out Works to be agreed
                  pursuant to clause 3 (which specification may be subject to
                  further detailing variations or additions in accordance with
                  clauses 8 or 9 hereof)

1.61              "Tenant's Fit Out Works" means the works to be carried out by
                  the Tenant in order to fit out the Building for the purposes
                  of its business as are more particularly described in the
                  Tenant's Fit Out Specification

1.62              "Tenant's Interim Certificate" means an interim certificate
                  issued by the Tenant's Representative confirming the due
                  completion of part or parts of the Tenant's Fit Out Works

1.63              "Tenant's Planning Supervisor" means such firm or company as
                  may be appointed by the Tenant as planning supervisor in
                  respect of the Tenant's Fit Out Works and approved by the
                  Landlord such approval not to be unreasonably withheld or
                  delayed

<PAGE>

1.64              "Tenant's Representative" means Henry Martin of Hannah Reed
                  Associates of Telford House Fulbourn Cambridgeshire or such
                  other firm or company of surveyors as may be appointed by the
                  Tenant and notified to the Landlord

1.65              "Tenant's Solicitors" means Hewitson Becke & Shaw of
                  Shakespeare House 42 Newmarket Road Cambridge CB5 8EP or such
                  other firm of solicitors as the Tenant may from time to time
                  notify to the Landlord as being its solicitors for the
                  purposes of this Agreement

1.66              "Term Commencement Date" means the quarter day prior to the
                  Interim Certificate Date

1.67              "Variations" means any changes to the materials used in
                  connection with the Works or any amendment to or departure
                  from the Specification or the Tenant's Fit Out Specification

1.68              "VAT" means any value added tax at the relevant rate from
                  time to time in force or any tax of similar nature that may be
                  substituted for it or levied in addition to it

1.69              "Working Day" means any day from Monday to Friday (inclusive)
                  which is not Christmas Day Good Friday or a statutory Bank
                  Holiday

1.70              "the Works" means the works to be carried out by the Landlord
                  and set out in the Specification as the same may be varied
                  from time to time pursuant to clauses 8 and 9 hereof

1.71              "Yearly Rent" means the sum of L18.50 plus VAT multiplied by
                  the number of square feet comprised in the Gross Internal Area
                  of the Building as agreed or determined in accordance with
                  clause 12

<PAGE>

2                 INTERPRETATION
                  IN this Agreement:-

2.1               Any reference to a clause sub-clause or paragraph is a
                  reference to the corresponding clause sub-clause or paragraph
                  of this Agreement and any clause headings shall not affect its
                  construction

2.2               Words importing the singular meaning where the context so
                  admits include the plural meaning and vice versa

2.3               Words of one gender include both other genders and words
                  denoting persons shall include operations and firms and vice
                  versa

2.4               If any party to this Agreement comprises more than one person
                  the obligations and liabilities of that party under this
                  Agreement shall be joint and several obligations and
                  liabilities of those person

3                 DETAILED SPECIFICATION

3.1               THE Landlord and the Tenant shall forthwith after the date
                  hereof each use their respective reasonable endeavours to
                  reach agreement on the detailed specification of the Works
                  based upon the Outline Specification within the period of 3
                  months from the date hereof or one month from the date of
                  grant of the Planning Consent whichever is the later and on
                  the Tenant's Fit Out Specification within the period of 5
                  months from the date hereof or one month from the date of
                  grant of the Planning Consent whichever is the later and such
                  specifications shall take into account any requirements of the
                  planning authority and any conditions annexed to the Planning
                  Consent and in agreeing the detailed specification of the
                  Works both parties will seek to ensure that the Forecast
                  Construction Cost falls

<PAGE>

                  within the parameters of the Target Development Cost (such
                  costs to be calculated for the purposes of this clause by
                  reference to a Gross Internal Area calculated from a
                  measurement of the drawings forming part of the Detailed
                  Specification)

3.2               Once the Detailed Specification and the Tenant's Fit Out
                  Specification have been agreed between the parties copies of
                  each shall be signed by or on behalf of the parties hereto

3.3               If the Detailed Specification or the Tenant's Fit Out
                  Specification have not been agreed within the periods referred
                  to in clause 3.1 either party may refer the matter to the
                  Independent Expert for determination in accordance with clause
                  16

4                 PLANNING CONSENT

4.1               THE Landlord will apply for and use all reasonable endeavours
                  to obtain the Planning Consent as soon as practicable and in
                  any event by the Relevant Date Provided Always that if at that
                  date a Court Application has been made the Relevant Date shall
                  be extended to a date one month after all proceedings pursuant
                  to the Court Application have been exhausted and (if
                  applicable) any further decision required to be made by the
                  Secretary of State or the local planning authority or any
                  other relevant authority pursuant to such proceedings have
                  been made

4.2               The grant of a planning permission containing one or more
                  Onerous Conditions shall be treated for the purposes of this
                  Agreement as a planning refusal unless both the Landlord and
                  the Tenant shall elect to treat the grant of such planning
                  permission as the grant of the Planning Consent

4.3               Notwithstanding the provisions of clause 4.1 hereof the
                  Landlord shall not

<PAGE>

                  be obliged to appeal against the refusal of Planning Consent
                  or against the grant of planning permission subject to one or
                  more Onerous Conditions

4.4               The Landlord will immediately upon receipt of the same supply
                  a copy of any planning permission which is granted as a result
                  of an application made pursuant to clause 4.1 and shall within
                  10 Working Days of receipt of any planning permission notify
                  the Tenant in writing if it considers on reasonable grounds
                  any of the conditions attached to such planning permission to
                  be an Onerous Condition (time being of the essence for the
                  purposes of this sub-clause 4.4)

4.5               The Tenant shall within 10 Working Days from receipt of the
                  copy planning permission notify the Landlord in writing
                  whether it considers on reasonable grounds that any condition
                  attached to such planning permission is an Onerous Condition
                  (time being of the essence for the purposes of this sub-clause
                  4.5)

4.6               If the Landlord shall disagree with any notice served upon it
                  by the Tenant pursuant to subclause 4.5 it shall have five
                  Working Days from receipt of that notification (time being of
                  the essence for the purposes of this subclause 4.6) to serve
                  on the Tenant notice in writing ("an Objection Notice")
                  invoking the provisions of clauses 4.8 to 4.10

4.7               If the Tenant shall disagree with any notice served upon it
                  by the Landlord pursuant to clause 4.4 it shall have five
                  Working Days from receipt of that notification (time being of
                  the essence for the purposes of this subclause 4.7) to serve
                  on the Landlord notice in writing ("an Objection Notice")
                  invoking the provisions of clause 4.8 to 4.10

4.8               If an Objection Notice is served in accordance with subclause
                  4.6 or 4.7 and within the time limit therein specified either
                  party shall be entitled to

<PAGE>

                  refer the question of whether the condition or conditions in
                  question are Onerous Conditions to the Independent Expert such
                  referral to be made within five Working Days of receipt of an
                  Objection Notice

4.9               The Independent Expert shall invite the parties to submit to
                  him within such time as he may direct such written
                  representations concerning the condition or conditions in
                  question as they may respectively wish to make and shall have
                  such regard (if any) to such representations (if any) as he
                  shall consider appropriate

4.10              The Independent Expert shall determine whether the condition
                  or conditions in question or any of them are Onerous
                  Conditions and shall give to each of the parties a notice of
                  his determination and his fees and expenses shall be borne
                  equally by the Landlord and the Tenant

4.11              The Landlord will keep the Tenant informed of the progress of
                  its application for the Planning Consent and at the written
                  request and cost of the Landlord the Tenant will use all
                  reasonable endeavours to assist the Landlord in obtaining the
                  same but shall not act independently of the Landlord

4.12              Without prejudice to the generality of the foregoing the
                  Tenant will if it is necessary to procure the grant of the
                  Planning Consent at the written request and cost of the
                  Landlord promptly enter into a planning agreement in such form
                  as the Landlord or the local planning authority may reasonably
                  require and as the Tenant shall approve (such approval not to
                  be unreasonably withheld or delayed)

5                 THE CONDITION

5.1               THIS Agreement is conditional upon the grant of the Planning
                  Consent

<PAGE>

5.2               If by the Relevant Date the Condition referred to in clause
                  5.1 remains unsatisfied either party wishing to determine this
                  Agreement may do so by serving on the other not less than one
                  month's notice in writing of such wish

5.3               If at the expiry of such notice the condition referred to in
                  clause 5.1 still remains unsatisfied or has not been waived by
                  the Tenant (with the Landlord's agreement) this Agreement
                  shall immediately determine and the provisions of clause 13
                  shall apply

5.4               The provisions of clauses 6 to 30 inclusive of this Agreement
                  shall be and remain executory and shall only become operative
                  on or with effect from the date upon which the condition in
                  clause 5.1 has been satisfied

6                 REQUISITE CONSENTS

6.1               THE Landlord will apply for and use all reasonable endeavours
                  to obtain at its own cost all Requisite Consents necessary for
                  the carrying out of the Works as may from time to time be
                  appropriate both before and throughout the course of such
                  works

6.2               The Tenant will apply for and use all reasonable endeavours to
                  obtain at its own cost all Requisite Consents for the Tenant's
                  Fit Out Works as may from time to time be appropriate both
                  before and throughout the course of such works

6.3               If a Requisite Consent is refused the Landlord or the Tenant
                  as appropriate will take such action as may be appropriate in
                  order to proceed with the relevant works

6.4               The Landlord and the Tenant will each notify the other of the
                  grant of a Requisite Consent and will deliver a copy thereof
                  to the other as soon as

<PAGE>

                  practicable

7                 LANDLORD'S OBLIGATIONS WITH REGARD TO THE CARRYING OUT OF THE
                  WORKS

7.1               THE Landlord and the Tenant shall forthwith after the date
                  hereof each use their respective reasonable endeavours to
                  reach agreement with Bovis Lendlease Pharmaceuticals Limited
                  ("Bovis") on the form of contract to be used for the carrying
                  out of Works based upon the form of draft contract annexed
                  hereto as Schedule IV

7.2               The Landlord shall not be entitled to make amendments to the
                  form of draft contract annexed hereto save as may be required
                  by Bovis and approved by the Tenant such approval not to be
                  unreasonably withheld or delayed

7.3               In case of failure to agree the form of such contract with
                  Bovis within eight weeks from the date of this Agreement the
                  Landlord shall nominate an alternative firm or company as
                  prospective management contractor such firm or company to be
                  approved by the Tenant (such approval not to be unreasonably
                  withheld or delayed) and shall use all reasonable endeavours
                  to procure its acceptance of the said form of contract

7.4               If either the alternative firm or company (referred to in
                  clause 7.3) cannot be agreed between the Landlord and the
                  Tenant or the form of contract is not accepted by such
                  alternative firm or company within 4 weeks from the expiry of
                  the 8 week period referred to in clause 7.3 then the
                  provisions of Schedule VIII shall apply

7.5               The Landlord will enter into the Management Contract as soon
                  as practicable after the date of this Agreement and will
                  procure the commencement of the Works as soon as practicable
                  thereafter and in any
<PAGE>

                  event within 8 weeks from the date of grant of the Planning
                  Consent

7.6.1             The Landlord will use all reasonable endeavours to enforce
                  the obligations on the part of the Management Contractor
                  contained in the Management Contract

7.6.2             The Landlord will use all reasonable endeavours to enforce
                  the obligations on the part of the Consultants contained in
                  their respective appointments

7.7               The Landlord will at its own cost following the obtaining of
                  all Requisite Consents use all reasonable endeavours to
                  procure the carrying out and completion of the Works:-

7.7.1             In a good and workmanlike manner with good quality materials

7.7.2             In accordance with the Requisite Consents

7.7.3             In accordance with the CONDAM Regulations

7.8               The Landlord will:-

7.8.1             Use reasonable endeavours to procure that the Works are
                  sufficiently progressed to enable the Landlord to serve the
                  notice referred to in clause 1.1 hereof within 11 months from
                  the date of grant of Planning Consent

7.8.2             Keep the Tenant informed of the progress of the Works and of
                  any material problems or delays affecting the same

7.8.3             Give reasonable prior notice of all Site Meetings to enable
                  the Tenant or its professional advisers to attend and make
                  representations (if appropriate) as observers only and will
                  following such meetings supply
<PAGE>

                  copies of the minutes thereof to the Tenant

7.8.4             Allow the Tenant or its professional advisers on the giving
                  of reasonable prior notice to enter on the Property in order
                  to view the state and progress of the Works provided that in
                  doing so the Tenant and its professional advisers shall not
                  impede or obstruct the progress of the Works nor issue any
                  instructions to the any of the Management Contractor or to any
                  workmen (including any Sub-Contractor) employed in the
                  carrying out of the Works provided that any inspection
                  representation or approval in connection with the Works by or
                  on behalf of the Tenant shall not in any way relieve the
                  Landlord the Consultants the Management Contractor or the
                  Sub-Contractors from their respective obligations under this
                  Agreement any appointment Management Contract sub-contract
                  warranty or deed of duty of care

7.8.5             Give the Tenant's Representative  not less than 10 Working
                  Days' notice of the anticipated date of issue of the Interim
                  Certificate and the Certificate of Practical Completion

7.8.6             Permit the Tenant and its professional advisers to inspect the
                  Works prior to the issue of the Interim Certificate and the
                  Certificate of Practical Completion and make representations
                  to the Landlord's Representative as to whether or not it
                  considers Practical Completion of the Works to have taken
                  place provided that the Landlord's Representatives
                  professional discretion shall not be fettered thereby

7.8.7             Provide to the Tenant on or before the Completion Date copies
                  of all service drawings and operating manuals required for the
                  operation of the services within the Building and within one
                  months thereafter with three sets of as-built drawings

<PAGE>

7.8.8             On or before the Interim Certificate Date (and subsequently
                  following the return of the Management Contractor to the
                  Property (in order to carry out the Deferred Works) on or
                  before the Certificate Date) procure the removal from the
                  Property of all plant equipment machinery tools materials
                  vehicles and other chattels together with any rubbish
                  belonging to the Landlord the Management Contractor or
                  Sub-Contractor and will make good any damage caused to the
                  Property by such removal

7.8.9             Use all reasonable endeavours to procure that the Deferred
                  Works are completed within 4 months from the Interim
                  Certificate Date or in the case of works comprising soft
                  landscaping within such longer period as shall be required to
                  take into account planting seasons provided that extension to
                  such period shall be permitted of a length equivalent to the
                  period of any delays caused by Force Majeure

7.9               The Landlord shall use reasonable endeavours to procure that
                  the Landlord's Representative shall act impartially with
                  reference to the issue of any of the certificates referred to
                  in this Agreement or any time granted under this Agreement to
                  the Management Contractor and in respect of any other matter
                  or the making of any other decision under the provisions of
                  this Agreement which shall or may have consequences for the
                  Tenant

8                 VARIATIONS

8.1               THE Landlord shall be entitled to make Variations to the
                  Works without the Tenant's consent where such Variations do
                  not constitute Material Variations but shall not make any
                  Material Variation to the Specification without the written
                  consent of the Tenant such consent not to be unreasonably
                  withheld or delayed

8.2               The Tenant shall not make any Material Variation to the
                  Tenant's Fit Out Works or any Variation which would require
                  the Landlord's consent

<PAGE>

                  under the terms of the Lease without the written consent of
                  the Landlord such consent not to be unreasonably withheld or
                  delayed but Provided That the Landlord may refuse to consent
                  to Variations which would not be permitted under the terms of
                  the Lease

8.3               Where either party wishes to make a Material Variation it
                  shall give not less than 10 Working Days' notice to the other
                  addressed to the Landlord's Representative for the Landlord
                  and the Tenant's Representative for the Tenant of such
                  intention and the recipient party shall be deemed to have
                  given consent to such variation if it shall not have served
                  written notice of objection upon the other within 5 Working
                  Days after receipt of the said notice

8.4               Any notice of objection given pursuant to clause 8.3 shall
                  state the reasons for such objections and any dispute between
                  the Landlord and the Tenant as to whether such objection is
                  reasonable shall be referred by either party for determination
                  by the Independent Expert

8.5               The parties shall make any submissions that they wish to be
                  considered by the Independent Expert within two working days
                  of the date of appointment

8.6               The Independent Expert shall use his best endeavours to issue
                  his decision within five Working Days of appointment and his
                  decision shall be final and binding

8.7               Fees of the Independent Expert shall be payable as he shall
                  direct or in the absence of direction shall be borne equally
                  by the parties

9                 TENANT'S REQUEST FOR VARIATIONS TO THE WORKS
                  THE Tenant may request Variations to the Works and in respect
                  thereof
<PAGE>

                  the following conditions shall apply:-

9.1               No request for a Variation in respect of the Works shall be
                  made after the expiration of the period of 5 months from the
                  date hereof or 1 month from the date of grant of the Planning
                  Consent whichever is the later

9.2               The Landlord shall be under no liability to make any
                  Variations if to do so would cause material delay in
                  completion of the Works or if they would be materially
                  detrimental to the quality or finish of the Works or would
                  have a materially detrimental effect on any other part of the
                  Development or the Estate or would detrimentally affect the
                  value of the Landlord's reversionary interest in the Property

9.3               The Tenant shall pay to the Landlord on the Interim
                  Certificate Date the amount whereby the costs of carrying out
                  the Development are increased as the result of such Variation
                  or Variations as certified by the Landlord's Representative

9.4               If the Landlord agrees to implement Variations requested by
                  the Tenant the Landlord shall procure that the Tenant is
                  notified as soon as practicable of the estimated costs of
                  implementing any such Variations (including any additional
                  fees payable to any of the Consultants or contractors) and of
                  the impact thereof on the programme for the Works or on the
                  Works themselves and if the Tenant wishes to proceed with the
                  same it shall notify the Landlord's Representative in writing
                  within three Working Days of receipt of such notification

9.5               If as a result of any Variation requested by the Tenant the
                  Rent Commencement Date would be delayed (such period of delay
                  to be conclusively certified by the Landlord's Representative)
                  the Rent Commencement Date shall be brought forward to such
                  earlier date as is

<PAGE>

                  calculated by subtracting the number of days of delay caused
                  by such variation

9.6               If any sum payable under this clause 9 shall be unpaid 10
                  Working Days after demand the Tenant shall pay to the Landlord
                  Interest on any such unpaid sum from the due date until the
                  date of actual payment

10                APPOINTMENT OF CONSULTANTS AND CONTRACTORS AND COLLATERAL
                  WARRANTIES

10.1              THE Landlord and the Tenant will each prepare a shortlist of
                  the candidates whom they propose to consider for appointment
                  as the Consultant and the Tenant's Consultants the Management
                  Contractor and the Tenant's Management Contractor respectively
                  and the Landlord and the Tenant shall each have the right (to
                  be exercised reasonably) to require the other to exclude any
                  proposed candidate from such shortlist

10.2              The Landlord will as soon as practicable after the date of
                  this Agreement let the Management Contract to the Management
                  Contractor and appoint the Consultant pursuant to an
                  appointment substantially in the form of the draft Appointment
                  annexed to this Agreement as Schedule VII

10.3              The Landlord shall procure and deliver to the Tenant as soon
                  as practicable and in any event prior to the Certificate Date

10.3.1            Duly executed warranties under seal substantially in the form
                  of the draft annexed to this Agreement as part of the form of
                  the Management Contract (with each warranty having
                  professional indemnity insurance cover of Five million pounds
                  ((pound)5,000,000) or if less the maximum amount of cover held
                  by the relevant Sub-Contractor) by any of the Sub-Contractors
                  who has undertaken or is to undertake any of the following
                  part of the Works:-

<PAGE>

10.3.1.1          external works drainage road works and pavings;

10.3.1.2          reinforced concrete frame;

10.3.1.3          structural steel work;

10.3.1.4          roof cladding;

10.3.1.5          wall cladding;

10.3.1.6          flat roof coverings;

10.3.1.7          windows and curtain walling;

10.3.1.8          lift installations

10.3.2            Duly executed warranties under seal in the form or
                  substantially in the form of the relevant drafts annexed to
                  this Agreement (as Schedules IV and V) from the Consultant and
                  the Management Contractor

10.4.1            The Tenant will appoint the Tenant's Design Consultant for the
                  design of the Tenant's Fit Out Works pursuant to an
                  appointment substantially in the form of the draft appointment
                  annexed to this Agreement (as Schedule VII and will appoint
                  the Tenant's Planning Supervisor pursuant to an appointment
                  substantially in the form of the draft Appointment annexed as
                  Schedule VII)

10.4.2            The Tenant will let the  Management  Contract for the Tenant's
                  Fit Out Works substantially in the form of Management Contract
                  for the Landlord's Works except that in lieu of Option F there
                  will be Option C

<PAGE>

                  with consequential amendments

10.4.3            The Tenant will appoint as the Tenant's Management  Contractor
                  in respect of the Tenant's Fit Out Works the same person as
                  has been appointed for that role in relation to the Works save
                  in the circumstances referred to in clause 7.3 or 7.4

10.5              The Tenant  shall  procure and deliver to the Landlord as soon
                  as practicable and in any event prior to the Certificate Date
                  duly executed warranties under seal in the form or
                  substantially in the form of the relevant drafts annexed to
                  this Agreement as Schedules IV and V by the Tenant's
                  Consultants and the Tenant's Management Contractor and by
                  those sub-contractors appointed by the Tenant's Management
                  Contractor in respect of the Tenant's Fit Out Works who have
                  undertaken or are to undertake significant design
                  responsibility as part of their works package

10.6              The Landlord and the Tenant shall co-operate with each other
                  in any proceedings taken by either party to enforce their
                  rights under the collateral warranties given by their
                  respective Consultants and Management Contractors in
                  accordance with the above provisions and shall if reasonably
                  so required join in as party to such action

10.7              Where any party shall  request the co-operation of the other
                  pursuant to clause 10.6 it shall indemnify the other
                  against all reasonable and proper costs incurred as a result
                  of such co-operation

10.8              The Landlord and the Tenant will seek to ensure that their
                  respective Consultants co-operate so as to ensure the proper
                  integration of the Works and the Tenant's Fit Out Works

11                CONDAM REGULATIONS

<PAGE>

                  IN respect of the CONDAM Regulations the following shall
                  apply:-

11.1              The Tenant appoints the Landlord to act as the only client in
                  respect of the Works and the Landlord appoints the Tenant to
                  act as the only client in respect of the Tenant's Fit Out
                  Works

11.2              The Landlord shall prior to commencement of the Works make a
                  declaration that it is the only client in respect of the Works
                  and send it to the health and safety executive in accordance
                  with the provisions of the CONDAM Regulations and the Tenant
                  shall do likewise prior to commencement of the Tenant's Fit
                  Out Works

11.3              The Landlord shall as soon as practicable  after Practical
                  Completion but in any event prior to completion of the Lease
                  deliver to the Tenant a copy of the health and safety file
                  relating to the Works

12                MEASUREMENT

12.1              PRIOR to or as soon as practicable immediately after the
                  Interim Certificate Date the Landlord and the Tenant shall
                  cause a joint measurement of the Gross Internal Area in square
                  feet and in square metres of the Building to be made

12.2              If the parties  cannot agree the Gross  Internal Area either
                  party may invite the Independent Expert to measure the
                  Building and immediately thereafter to notify his measurement
                  to the parties

12.3              The Independent Expert shall act as an expert and not as an
                  arbitrator and his measurement of the Gross Internal Area
                  shall be conclusive and binding on the parties (save for
                  manifest error) and his costs shall be born by them in such
                  proportions as he shall direct and in the absence of direction
                  equally

<PAGE>

13                TERMINATION

13.1              IF the  Interim Certificate has not been issued by the Long
                  Stop Date the Tenant may at any time within four weeks
                  thereafter rescind this Agreement by giving written notice to
                  the Landlord to that effect whereupon this Agreement shall
                  terminate

13.2              If the Interim Certificate has not been issued by a date
                  which falls 6 months after the Long Stop Date then the
                  Landlord may at any time within four weeks thereafter rescind
                  this Agreement by giving written notice to the Tenant to that
                  effect whereupon this Agreement shall terminate

13.3              If at any  time  there  shall be an Event of Insolvency  in
                  relation to the Tenant or if there shall be an Event of
                  Insolvency in relation to the Surety and the Tenant shall not
                  have provided to the Landlord any alternative surety or
                  guarantee which is satisfactory to the Landlord (acting
                  reasonably) within the period of one month from the occurrence
                  of such Event of Insolvency then the Landlord may at any time
                  thereafter rescind this Agreement by giving written notice to
                  the Tenant (or as appropriate any Receiver or Liquidator) to
                  that effect whereupon this Agreement shall terminate but
                  without prejudice to the rights of the Landlord in respect of
                  any antecedent breach by the tenant of its obligation herein
                  contained

13.4              Upon  termination  pursuant  to clauses  5.3 13.1 or 13.2
                  neither party shall have a claim against the other for damages
                  compensation or costs in respect of any antecedent breach of
                  any obligation herein contained

14                REMEDY OF DEFECTS

14.1              THE Landlord will procure that the Landlord's  Representative
                  will prior to the expiry of the defects liability period under
                  the Management
<PAGE>

                  Contract inspect the Property and prepare a detailed schedule
                  of defects and will no later than 10 Working Days prior to the
                  expiry of the defects liability period deliver a copy of such
                  schedule to the Tenant

14.2              Following receipt of such schedule  the Tenant shall consider
                  the same and shall notify to the Landlord's Representative any
                  additional defects for which the Management Contractor is
                  liable pursuant to the Management Contract no later than 5
                  Working Days prior to the expiry of the defects liability
                  period

14.3              The Landlord will procure that the Landlord's Representative
                  will deliver such schedule of defects together with any
                  additions properly notified by the Tenant to the Management
                  Contractor within the applicable time limits for doing so
                  under the Management Contract

14.4              The Landlord will use all reasonable endeavours to enforce the
                  obligations of the Management Contractor in relation to all
                  defects notified to it in accordance with clauses 14.2 and
                  14.3 hereof as soon as reasonably practicable

14.5              The Tenant will allow the Landlord and all persons  authorised
                  by the Landlord all such rights of entry as are necessary to
                  enable the schedule of defects to be prepared and to enable
                  the remedy of all defects set out therein

14.6              Provided  that the Landlord complies with its obligations in
                  clauses 14.1 and 14.3 hereof the Tenant shall have no right to
                  require the remedy under the defects liability provisions in
                  the Management Contract of any defect which has been omitted
                  from the schedule of defects

14.7              The Landlord will give to the Tenant not less than 5 Working
                  Days' notice
<PAGE>

                  of the anticipated date of issue of the certificate of making
                  good defects and will allow the Tenant and its professional
                  advisers to inspect the Works and to make representations to
                  the Landlord's Representative as to whether such certificate
                  should be issued or with what qualifications and the
                  Landlord's Representative shall take account of such
                  representations provided that his professional discretion
                  shall not be fettered thereby

14.8              The Landlord shall cease to be liable and the Tenant shall
                  make no claim against the Landlord in respect of any breach of
                  the Landlord's obligations in respect of the carrying out of
                  the Works after the expiry of the period of 6 years from the
                  date of Practical Completion unless the Tenant shall have made
                  a specific claim against the Landlord before the expiry of
                  that period

14.9              It is hereby agreed that nothing in this Agreement shall be
                  construed as imposing upon the Landlord obligations in respect
                  of the Works which are greater than those imposed upon the
                  Management Contractor and Consultants by virtue of their
                  respective contracts or appointments

14.10             Notwithstanding the foregoing provisions of this clause 14 and
                  without prejudice to them the Landlord shall use reasonable
                  endeavours to procure that any defects notified to the
                  Landlord's Representative by the Tenant or the Tenant's
                  Representative at any time during the Defects Liability Period
                  and which shall materially prevent or diminish the Tenant's
                  full use and enjoyment of the Property shall be rectified by
                  the Management Contractor as quickly as practicable and with
                  the minimum practicable disruption to the Tenant's use of the
                  Property

15                TENANT'S FIT OUT WORKS

15.1              THE Tenant will at its own cost use all reasonable endeavours
                  to procure the carrying out and completion of the Tenant's Fit
                  Out Works:-

<PAGE>

15.1.1            In a good and workmanlike manner with good quality materials

15.1.2            In accordance with Requisite Consents

15.1.3            In accordance with the CONDAM Regulations

15.1.4            In such a manner as not to impede or cause delay to the Works
                  or in any other manner to adversely affect the same

                  Provided Always that the Tenant shall not be permitted to
                  commence the carrying out of the Tenant's Fit Out Works until
                  the Access Date

15.2              The Tenant will:-

15.2.1            Allow the Landlord or its professional advisers on the giving
                  of reasonable prior notice to enter on the Property in order
                  to view the state and progress of the Tenant's Fit Out Works
                  but in so doing it shall not issue instructions to the
                  Tenant's Contractors or the Tenant's Consultants nor impede or
                  obstruct the progress of the Tenant's Fit Out Works

15.2.2            Allow  the  Landlord or its professional advisers to make
                  representations to the Tenant or such person or body as the
                  Tenant shall direct as to whether or not it considers that the
                  Tenant's Fit Out Works have been carried out and completed in
                  accordance with the Tenant's Covenant contained in clause 15.1
                  hereof

15.2.3            Put right to the Landlord's reasonable satisfaction any defect
                  in the Tenant's Fit Out Works and which materially adversely
                  affects the Works or any plant and equipment which is not to
                  be the subject of reinstatement pursuant to the Lease which
                  the Landlord shall notify to the Tenant within
<PAGE>

                  the defects liability period under the contract for the
                  carrying out of such works

15.3              If at any time there shall be an Event of Default then without
                  prejudice to any other rights which the Landlord may have
                  under this Agreement the Landlord shall be entitled to serve
                  notice on the Tenant's Management Contractor requiring the
                  Tenant's Management Contractor thenceforth to accept
                  instructions from the Landlord or its appointee to the
                  exclusion of the Tenant and the Tenant shall ensure that the
                  terms of the Tenant's Management Contract provide for the
                  Tenant's Management Contractor to accept such instructions on
                  the occasion of any Event of Default as herein defined

16                DISPUTES

16.1              ANY disputes between the parties relating to the agreement of
                  the Detailed Specification or the Tenant's Fit Out
                  Specification pursuant to clause 3 hereof or as to the amount
                  of the Forecast Construction Cost pursuant to clause 17.4
                  hereof shall be referred at the instigation of either party
                  for determination by the Independent Expert who shall act as
                  an expert and not as an arbitrator and whose decision shall be
                  conclusive and binding on the parties save in case of manifest
                  error and whose costs shall be borne by the parties in such
                  proportions as he shall direct or in the absence of direction
                  equally

16.2              If any dispute or question shall arise  between the Landlord
                  and the Tenant in relation to this Agreement it shall save
                  where otherwise provided in this Agreement be submitted to
                  arbitration within the meaning of the Arbitration Act 1996 or
                  any act amending or replacing the same

16.3              The arbitrator shall be appointed  by the Landlord and the
                  Tenant jointly or failing such appointment by the President of
                  the Royal Institution of

<PAGE>

                  Chartered Surveyors on the application of either the Landlord
                  or the Tenant

17                DEVELOPMENT COSTS

17.1              THE Landlord will bear the cost:-

17.1.1            Of obtaining all Requisite Consents in respect of the Works

17.1.2            Of the carrying out of the Works

17.2              The Tenant will bear the cost:-

17.2.1            Of obtaining all Requisite Consents in respect of the
                  Tenant's Fit Out Works

17.2.2            Of the carrying out of the Tenant's Fit Out Works

17.2.3            Of any Variations to the Works requested by the Tenant to the
                  extent that this increases the total cost of carrying out the
                  Development as certified by the Landlord's Representative and
                  in accordance with clause 9.3 hereof

17.3              The parties will endeavour to agree the Forecast Construction
                  Cost as soon as practicable after agreement of the Detailed
                  Specification and in any event within 2 months thereafter

17.4              If the parties shall fail to reach agreement pursuant to
                  clause 17.3 that figure will be ascertained immediately
                  following the receipt of tenders for the Works and in case of
                  dispute the matter may be referred by either party for
                  determination by the Independent Expert who shall act as an
                  expert and not as an arbitrator and whose decision shall be
                  conclusive and binding on the parties save in case of manifest
                  error and whose costs shall

<PAGE>

                  be born by the parties in such proportion as he shall direct
                  and in absence of direction equally

17.5              The Landlord will pay the Landlord's Capital Contribution to
                  the Tenant in the following manner:-

17.5.1            Within 15 working days after the issue of each Tenant's
                  Interim Certificate (accompanied by an appropriate value added
                  tax invoice from the Tenant addressed to the Landlord) the
                  Landlord will pay the Landlord's Percentage of the sums set
                  out in such certificate to the Tenant's Management Contractor
                  provided that such amounts shall not when aggregated exceed
                  the Landlord's Capital Contribution and that no payments shall
                  be made prior to the Completion Date and that such arrangement
                  for payment shall not constitute any contractual obligation
                  whether direct or indirect between the Landlord and the
                  Tenant's Management Contractor and the Tenant shall take all
                  steps necessary to preclude any such obligation

17.5.2            On the Settlement Date the Landlord will pay to the Tenant any
                  balance of the Landlord's Capital Contribution which shall not
                  have been paid pursuant to clause 17.5.1

17.5.3            The Tenant shall keep  proper  books of account showing  the
                  amount of all costs and expenses incurred in carrying out and
                  completing the Tenant's Fit Out Works and the Landlord shall
                  be entitled to inspect the same on giving reasonable notice

17.5.4            As from the date upon which any  payment  forming  part of the
                  Landlord's Capital Contribution is made by the Landlord to the
                  Tenant the Tenant's Fit-Out Works (to the extent from time to
                  time constructed) shall belong to and be in the undisputed and
                  unencumbered ownership of the Landlord

<PAGE>

                  until the entirety of the Tenant's Fit-Out Works have been
                  completed and the Tenant shall not be permitted to mortgage
                  charge lease or otherwise create any rights over or in respect
                  of the same

17.5.5            The Landlord shall be entitled (but shall not be obliged) to
                  pay any instalments of the Landlord's Capital Contribution
                  requested by the Tenant direct to a party (other than the
                  Tenant) to whom the costs and expenses to which that payment
                  relates are owed if the Tenant is in default of its
                  obligations to that party

17.5.6            The  Landlord  may  refuse to make any  payments  pursuant  to
                  clause 17.5.2 without having received satisfactory evidence
                  from the Tenant that such amount has been paid

17.5.7            The  Landlord  shall be  entitled  to suspend  payments of the
                  Landlord's Capital Contribution on the happening of any Event
                  of Default or if there shall be an Event of Insolvency in
                  relation to the Tenant's Management Contractor and shall not
                  be required to make any payment (in whole or in part) of the
                  Landlord's Capital Contribution pursuant to clauses 17.5.1
                  and/or 17.5.2 if the date of the relevant Tenant's Interim
                  Certificate (referred to in clause 17.5.1) or the Settlement
                  Date (as the case may be) shall occur after the date which is
                  12 months after the Rent Commencement Date

18                OCCUPATION PENDING GRANT OF LEASE

18.1              AS from the Access Date the Landlord  shall  grant to the
                  Tenant its Contractors Consultants and other properly
                  authorised by the Tenant a non-exclusive licence to enter the
                  Property and thereafter to remain thereon for the purpose only
                  of carrying out the Tenant's Fit Out Works

18.2              The Landlord shall be entitled to restrict access to part of
                  the Property

<PAGE>

                  only at any one time where such access would in the opinion of
                  the Management Contractor result in interference to or safety
                  in the carrying out of the Works

18.3              Any access granted to the Tenant shall be by way of licence
                  only and no relationship of landlord and tenant shall be
                  created thereby The Landlord shall be entitled to terminate
                  any such licence by the service of written notice on the
                  Tenant if the Tenant shall be in material breach of any of its
                  obligations hereunder or shall suffer an Event of Insolvency

19                GRANT OF THE LEASE

19.1              THE Landlord will grant and the Tenant will accept the grant
                  of the Lease on the Completion Date

19.2              Engrossments of the Lease shall be prepared by the Landlord's
                  Solicitors and both parties will promptly execute such
                  engrossments preparatory to the grant of the Lease

19.3              The rent initially reserved by the Lease shall be the Yearly
                  Rent

19.4              The date of commencement of the term granted by the Lease
                  shall be the Term Commencement Date

19.5              The date upon which rent shall commence to be payable
                  pursuant to the Lease shall be the Rent Commencement Date

19.6              The Agreed Net Internal Area of the Premises referred to in
                  the Lease shall be 89% of the Gross Internal Area as
                  determined pursuant to clause 12 hereof

<PAGE>

20                TITLE
                  THE Landlord has deduced its title to the Property and the
                  Tenant accepts it and shall not raise any requisition or
                  objection to the Landlord's title save in respect of entries
                  not revealed by the Office Copy Entries dated 21 March 2000 of
                  the Landlord's title to the Estate as registered at HM Land
                  Registry or in respect of any other matters arising after the
                  date of this Agreement

21                ENCUMBRANCES

21.1              THE Property shall be demised subject to the matters (if any)
                  contained or referred to in the documents set out in Schedule
                  II so far as the same relate to the Property and are still
                  subsisting and the Tenant or its Solicitors having been
                  supplied with copies or details of all such matters shall be
                  deemed to purchase with full notice and shall raise no
                  objection or requisition in respect thereof

21.2              The Property is also demised subject to:-

21.2.1            Any matter or thing registered or capable of registration in
                  the local Land Charges Registry

21.2.2            All rights of way drainage  or other  rights easements
                  quasi-easements and privileges which may affect the Property
                  or any part thereof without any obligation on the part of the
                  Landlord to define the same

21.2.3            All charges and other outgoings which affect or are charged
                  on the Property other than financial charges

22                DISCLAIMER

22.1              THE Tenant hereby acknowledges that this Agreement has not
                  been entered into in reliance wholly or partially upon any
                  statement or

<PAGE>

                  representation made by or on behalf of the Landlord save in so
                  far as any such statement or representation is expressly set
                  out in this Agreement or has been made in writing by the
                  Landlord's Solicitors to the Tenant's Solicitors and that in
                  the event of any such statement being made this shall not
                  obviate the need for the Tenant to make the usual conveyancing
                  searches and enquiries and/or inspections of the Property
                  and/or any relevant authority

22.2              No statement whether made orally or in writing or contained in
                  any advertisement notice or otherwise issued by the Landlord
                  or its agents or otherwise issued on the Landlord's behalf
                  shall be deemed to be a term or condition of this Agreement
                  which constitutes the entire contract between the parties and
                  may only be varied or modified (whether by way of collateral
                  contract or otherwise) in writing under the hands of the
                  parties or their Solicitors

23                AGREEMENT NOT ASSIGNABLE
                  THIS  Agreement  shall be personal to the Tenant and shall not
                  be capable of assignment save that the Tenant may assign the
                  benefit of this Agreement to any Associated Company with the
                  prior written consent of the Landlord which shall not be
                  unreasonably withheld where such potential assignee fulfils
                  the criteria for assignment set out in Schedule 5 Part 2 of
                  the Lease and that the Surety guarantees the obligations of
                  such assignee

24                NON MERGER
                  SAVE in so far as  they  have been fully  performed  the
                  provisions of this Agreement shall remain in effect after and
                  notwithstanding the completion of the grant of the Lease

<PAGE>

25                NOTICES
                  WHERE this Agreement shall require any notice or notification
                  to be given it shall be given in writing and shall be treated
                  as properly given if made in accordance with s.196 of the Law
                  of Property Act 1925 (as amended by the Recorded Delivery
                  Service Act 1962)

26                INSURANCE

26.1              UNTIL the Interim  Certificate  Date the Landlord shall
                  procure that the Building and the Works shall be insured
                  against the Insured Risks to full reinstatement value

26.2              From and including the Interim Certificate Date the Landlord
                  shall insure the Property in accordance with the provisions of
                  the Lease

26.3              If prior to the Interim Certificate Date any part of the
                  Building or the Works is damaged or destroyed by a risk which
                  is covered by the insurance taken out in accordance with
                  subclause 1 hereof the Landlord shall use all reasonable
                  endeavours to procure that the damage is reinstated

26.4              In respect of any damage or destruction which shall occur
                  on or after the Interim Certificate Date the Landlord will
                  observe and perform obligations in the same form as those
                  contained in the Lease

27                VAT

27.1              ALL payments provided for by this  Agreement shall be deemed
                  to be exclusive of VAT and the relevant party shall on receipt
                  of a VAT invoice addressed to it pay to the other any VAT
                  which shall be properly chargeable thereon

27.2              Where the Landlord or the Tenant is entitled to recover the
                  cost of goods and services supplied but in respect of which no
                  taxable supply is made

<PAGE>

                  to the party paying such costs that party shall indemnify the
                  other against any such VAT thereon as is not recoverable as
                  input tax

28                CAPITAL ALLOWANCES

28.1              TO the extent that allowances under the Capital Allowances Act
                  1990 are available in respect of capital expenditure incurred
                  on, and in connection with, the Tenant's Fit Out Works (such
                  expenditure being "Allowable Expenditure" for the purposes of
                  this clause), the Landlord shall be entitled to claim a sum up
                  to the amount of the Landlord's Capital Contribution of such
                  plant and machinery allowances that become available (but
                  subject to clause 28.2), and the Tenant shall:-

28.1.1            make no claim to any such allowances (but so that the Tenant
                  shall be entitled to claim any remaining allowances in respect
                  of such expenditure);

28.1.2            at its own cost, supply any such information in the possession
                  of, or obtained by, the Tenant as the Landlord may reasonably
                  request, and that may be required for the purpose of enabling
                  the Landlord to claim such allowances

28.2              Notwithstanding  the  foregoing  the  Landlord  shall  only be
                  entitled to claim allowances to the extent that the Landlord's
                  Capital Contribution is in respect of Allowable Expenditure
                  and it is hereby agreed that this shall be ascertained by
                  multiplying the Landlord's Capital Contribution by the
                  percentage which the Allowable Expenditure bears to the total
                  expenditure incurred on and in connection with the Tenant's
                  Fit out Works

29                GUARANTEE OF THE TENANT'S COVENANTS

29.1              THE Surety  guarantees to the  Landlord and  as a separate
                  covenant to

<PAGE>

                  MEPC that the Tenant will duly observe and perform all the
                  stipulations and obligations on the Tenant's part contained in
                  this Agreement ("Tenant's Obligations") and in default by the
                  Tenant of the Tenant's Obligations the Surety will observe and
                  perform the Tenant's Obligations Provided Always that the
                  obligations of the Surety hereunder shall not exceed those
                  imposed upon the Tenant

29.2              In the case of amendment to or variation of the terms of this
                  Agreement or any document referred to herein the Surety's
                  guarantee will apply to the Tenant's Obligations as so amended
                  or varied

29.3              If the Tenant fails to duly observe and perform the Tenant's
                  Obligations or any of them the Surety will on demand make good
                  to the Landlord all losses damages costs and expenses arising
                  as a result of such failure and the Surety will indemnify the
                  Landlord against all losses costs expenses and liability
                  arising or incurred by the Landlord as a direct result of such
                  failure subject however to the Landlord using all reasonable
                  endeavours to mitigate any such loss damage cost or expense

29.4              If any liquidator or trustee in bankruptcy of the Tenant shall
                  disclaim this Agreement the Surety will on written demand by
                  the Landlord within one month of such disclaimer enter into an
                  agreement with the Landlord on the same terms as this
                  Agreement save that the Surety shall be the Tenant thereunder
                  and the Surety's separate guarantee obligations shall be
                  excluded The Surety will also pay the Landlord's proper and
                  reasonable costs (including VAT) in connection with such
                  agreement

29.5              No neglect or  forbearance on the part of the Landlord in
                  enforcing observance and performance by the Tenant of any of
                  the Tenant's Obligations and no time or other indulgence given
                  by the Landlord to the Tenant shall release or discharge or in
                  any way affect the liability of the

<PAGE>

                  Surety under this clause 29

29.6              No legal limitation disability incapacity or any other
                  circumstances relating to the Tenant nor any amendment to or
                  variation of the terms of this Agreement or any document to
                  which it refers shall release discharge or in any way limit or
                  affect the liability of the Surety under this clause 29

29.7              The Surety's Obligations under this clause 29 shall not be
                  released or affected by any other act or omission or thing
                  which but for this clause 29.7 would cause the Surety's
                  Obligations under this clause 29 to be released wholly or
                  partly other than a release given under seal by the Landlord

29.8              On the Completion Date the Surety will enter into the Lease as
                  guarantor of the Tenant's covenants thereunder and in the
                  circumstances set out in clause 29.4 herein or if the Tenant
                  fails to complete the Lease shall if the Landlord so requires
                  take up the Lease in its own name as Tenant thereunder and the
                  Lease shall in such circumstances be amended to exclude the
                  Surety Obligations

30                MEPC GUARANTEE

30.1              MEPC covenants and guarantees to the Tenant and as a separate
                  obligation to the Surety the full and prompt performance
                  observance and compliance by the Landlord of each and every
                  provision condition obligation undertaking and agreement on
                  the part of the Landlord to be performed observed or carried
                  out by the Landlord as contained in or referred to in clauses
                  7 10 11 14 17.1 and 17.5 ("the Obligations") Provided Always
                  that MEPC's obligations hereunder shall not exceed those
                  imposed on the Landlord

<PAGE>

30.2              If at any  time any  default is made by the Landlord in the
                  performance of any of the Obligations MEPC will well and truly
                  perform or cause to be so performed each and every one of the
                  Obligations and/or will pay any sum or sums that may properly
                  be payable in consequence of any default made by the Landlord
                  in the performance of any of the Obligations Provided Always
                  that the Tenant shall use all reasonable endeavours to
                  mitigate any loss or expense suffered

30.3              MEPC shall not be discharged  nor shall its liability be
                  affected by anything which would not discharge it or affect
                  its liability if it were the sole principle obligor including
                  but not limited to:-

30.3.1            any amendment modification waiver consent or variation
                  expressed or implied to the scope of the Works or to the
                  Agreement or any related documentation;

30.3.2            the dissolution amalgamation reconstruction or re-organisation
                  of the Landlord;

30.3.3            any compromise of any dispute with the Landlord;

30.3.4            any failure of supervision by the Tenant to detect or prevent
                  any fault of the Landlord;

30.3.5            any assignment of the benefit of this Agreement

                  Provided that MEPC shall have the benefit of any extensions of
                  time or forbearance forgiveness or indulgences in relation to
                  time granted to the Landlord

30.4              MEPC's liability under this clause 30 shall cease upon the
                  date of the

<PAGE>

                  Certificate of Making Good Defects (or similar
                  statement/certification that the Management Contractor has
                  made good defects occurring within the defects liability
                  period pursuant to the provisions of the Management Contract)
                  save in respect of any default on the part of the Landlord
                  which has then occurred and which has been notified to MEPC on
                  or before that date

31                THIRD PARTY RIGHTS
                  IT IS HEREBY AGREED that rights in favour of any third parties
                  which may arise as a result of the operation of the Contracts
                  (Rights of Third Parties) Act 1999 are hereby expressly
                  excluded and the parties shall be at liberty to agree to any
                  rescission or variation of this Agreement without the need for
                  the consent of any such third party

32                TEMPORARY ACCOMMODATION

32.1              IN this clause the following definitions shall apply:-

32.1.1            "Temporary Accommodation" means the land shown edged purple on
                  the plan marked "temporary premises" annexed to the Temporary
                  Accommodation Lease upon which the Temporary Accommodation
                  Works are to be carried out

31.1.2            "Temporary Accommodation Lease" means the lease of the
                  Temporary Accommodation in the form of the draft Lease annexed
                  hereto (as part of Schedule I)

31.1.3            "Temporary Accommodation Works" means the works set out in
                  the plans approved by the Temporary Planning Permission

31.1.4            "Temporary Planning Permission" means the planning permission
                  authorising the carrying out of the Temporary Accommodation
                  Works and dated 19 January 2001 under ref S/2213/00/F
<PAGE>

31.2              The Landlord shall grant and the Tenant shall take the
                  Temporary Accommodation Lease for a term of years commencing
                  on the date hereof and expiring on 30 June 2004 but with
                  provision for earlier termination at the rent and upon the
                  terms and conditions therein contained

31.3              The Temporary Accommodation Lease shall be completed on the
                  date hereof immediately following exchange of this Agreement

31.4              The Tenant will carry out the Temporary Accommodation Works
                  at its own cost and in a good and workmanlike manner and with
                  good quality materials and in accordance with all Requisite
                  Consents to an appropriate standard given the temporary nature
                  of the works

31.5              The Tenant will bear the proper cost of transport erection and
                  dismantling of the Temporary Accommodation Works erected
                  within the Temporary Accommodation together with the proper
                  cost of hire of the buildings comprised therein (if any) and
                  where such costs are incurred by the Landlord on the Tenant's
                  behalf the Tenant shall repay such costs together with value
                  added tax where applicable within ten Working Days of demand
                  provided a copy of the original invoice to which the repayment
                  relates and a valid VAT invoice is supplied with such demand

31.6              The Tenant will remove the  Temporary  Accommodation  Works at
                  the end or sooner of determination of the term granted by the
                  Temporary Accommodation Lease and will reinstate the Temporary
                  Accommodation to the condition of a cleared site covered with
                  grass by a date which is the earlier of 30 June 2004 or the
                  date of expiry of the period of 6 months from the date upon
                  which the Tenant commences beneficial occupation of the
                  Premises for the purposes of its business
<PAGE>

31.7              The Temporary Accommodation  shall be demised  subject to the
                  matters (if any) contained or referred to in the documents set
                  out in Schedule II so far as the same relate to the Temporary
                  Accommodation and are still subsisting and the Tenant or its
                  solicitors having been supplied with copies or details of all
                  such matters shall be deemed to purchase with full notice and
                  shall raise no objection or requisition in respect thereof
                  save in relation to any such matters arising between the date
                  of this Agreement and the grant of the Temporary Accommodation
                  Lease

31.8              The Temporary Accommodation is also demised subject to:-

31.8.1            Any matter or thing registered or capable of registration in
                  the local land Charges Registry

31.8.2            All rights of way drainage or other rights easements
                  quasi-easements and privileges which may affect the Temporary
                  Accommodation or any part thereof without any obligation on
                  the part of the Landlord to define the same

31.8.3            All charges and other outgoings which affect or are charged
                  on the Temporary Accommodation other than financial charges

32                GOVERNING LAW
                  THIS Agreement shall be governed by and construed  in all
                  respects in accordance with the laws of England and
                  proceedings in connection with it shall be subject (and the
                  parties hereby submit) to the non-exclusive jurisdiction of
                  the English Courts

I N   W I T N E S S whereof this document has been executed and delivered as a
Deed

<PAGE>

the day and year first before written

EXECUTED as a Deed by                       )
MILLENNIUM PHARMACEUTICALS                  )
LIMITED acting by two directors or          )
one director and the secretary:-            )

               Director                     /s/ KEVIN P. STARR
                                                Kevin P. Starr

               Secretary                    /s/ JOHN B. DOUGLAS III
                                                John B. Douglas III

EXECUTED as a Deed by                       )
MILLENNIUM PHARMACEUTICALS                  )
INC acting by                               )
its Authorised Signatory:-                  )

               Authorised Signatory         /s/ KEVIN P. STARR
                                            Kevin P. Starr

<PAGE>

EXECUTED as a Deed by                )
GRANTA PARK LIMITED acting by        )
two directors or one director and the)
secretary:-                          )

               Director                     /s/ Roger Quince

               Director/Secretary           /s/ John Price

EXECUTED as a Deed by MEPC                  )
LIMITED acting by two directors or          )
one director and the secretary              )

               Director                     /s/ Iain Watters

               Director/Secretary           /s/ John Price

<PAGE>

                                   SCHEDULE I

Lease

                                  DATED 200[ ]

                               GRANTA PARK LTD (1)
                       MILLENNIUM PHARMACEUTICALS LTD (2)
                       MILLENNIUM PHARMACEUTICALS INC (3)

                                      LEASE

               relating to Unit 15A Granta Park Abington Cambridge

                                                             Taylor Vinters
                                                             Merlin Place
                                                             Milton Road
                                                             Cambridge CB4 0DP

                                                             Tel: 01223 423444
                                                             Fax: 01223 426114

                                                             Our Ref: JMW

<PAGE>

                                      LEASE

                                Index to Clauses

1        Definitions and interpretation

2        The letting terms

3        Tenant's covenants

4        Provisos

5        Landlord's covenant for quiet enjoyment

6        Obligations in Schedules

7        Guarantee provision

8        Expert determination

9        Governing law

Schedule 1        The Premises and rights granted/reserved

Schedule 2        Rent reviews

Schedule 3        Insurance provisions

Schedule 4        Service charge provisions

Schedule 5        Form of guarantee and criteria to be satisfied on assignment

Schedule 6        The Tenant's Fit Out Works

Schedule 7        Assumed Specification

Plan 1            Estate -     Estate edged blue

                               Estate roads colored brown

                               Parking groves edged green

Plan 2            Plot 15A edged red

                                      -55-

<PAGE>

                                  DATED 200[ ]

1             The Landlord:         GRANTA PARK LIMITED whose registered office
                                    is at 103 Wigmore Street London W1U LAH

2             The Tenant:           MILLENNIUM PHARMACEUTICALS LIMITED whose
                                    registered office is at The Merrifield
                                    Centre Rosemary Lane Cambridge CB1 3LQ

3             The Surety:           MILLENNIUM PHARMACEUTICALS INC of 75 Sidney
                                    Street Cambridge Massachusetts USA 02139

OPERATIVE PROVISIONS:

1        DEFINITIONS AND INTERPRETATION

1.1      Definitions

                  In this Lease where the context so allows:

                  "Agreed Net Internal Area" means [NB The figure calculated
                  pursuant to clause 19.6 of the Agreement for Lease]

                  "Approved Condition" means in the condition of Unfitted
                  Laboratories

                  "Assumed Specification" means the specification annexed hereto
                  as Schedule 7

                  "conducting media" means any drains, sewers, conduits, flues,
                  gutters, gullies, channels, ducts, shafts, watercourses,
                  pipes, cables, wires and mains

                  "the Encumbrances" means the restrictions, stipulations,
                  covenants, rights, reservations, provisions and other matters
                  contained, imposed by or referred to in the documents, brief
                  particulars of which are set out in Schedule 1 Part 4

                  "the Estate" means the entirety of the property known as and
                  comprising Granta Park Abington Cambridge as designated by the
                  Landlord from time to time the present extent of which is
                  shown for identification by blue edging on Plan 1

                                      -56-
<PAGE>

                  "Estate Amenities" means those parts of the Estate from time
                  to time available for the use and enjoyment of the Tenant in
                  common with the tenants and occupiers of other parts of the
                  Estate and others authorized to use the same including
                  (without limitation) all service and estate roads, estate
                  parking, conducting media, landscaping, recreational areas and
                  other communal facilities and buildings from time to time
                  provided within the Estate

                  "Estate Roads" means the roadways forming part of the Estate
                  Amenities and shown for the purpose of identification only
                  colored brown on Plan 1 together with any other roads which
                  may from time to time be provided within the Estate and
                  designated for use by the Tenant together with other tenants
                  of the Estate and others authorized to use the same

                  "Hypothetical Premises" means such area of the land demised by
                  this Lease as is referred to in the Assumed Specification
                  (together with the right to use the number of car parking
                  spaces referred to in the Assumed Specification) with an
                  assumed building thereon designed and completed in November
                  2002 in accordance with the Assumed Specification

                  "Insurance Premiums" has the meaning given to it in Schedule 3
                  paragraph 2

                  "the Insured Risks" has the meaning given to it in Schedule 3
                  paragraph 1

                  "Interest" means interest at the rate of 4 per cent over the
                  base rate of Lloyds TSB Bank PLC from time to time (as well
                  after as before judgment), or such other comparable rate as
                  the Landlord may reasonably designate if the base rate ceases
                  to be published, compounded at quarterly rests on 31 March, 30
                  June, 30 September and 31 December in each year

                  "the Landlord" includes all persons from time to time entitled
                  to the immediate reversion to this Lease

                                      -57-
<PAGE>

                  "the Landlord's Surveyor" means the surveyor, architect,
                  engineer or other appropriate Consultant of the Landlord from
                  time to time

                  "Lease" includes any documents supplemental to this Lease

                  "Measuring Code" means the Code of Measuring Practice (Fourth
                  Edition RICS/ISVA 1993)

                  "Outgoings" means in relation to the Premises all non-domestic
                  rates, water rates, water charges and all existing and future
                  rates, taxes, charges, assessments, impositions and outgoings
                  whatsoever (whether parliamentary municipal parochial or
                  otherwise) which are now or may at any time be payable,
                  charged or assessed on property or the owner or occupier of
                  property, but taxes in this context does not include value
                  added tax, nor any taxes imposed on the Landlord in respect of
                  the yearly rent reserved by this Lease or in respect of a
                  disposal of the interest in immediate reversion to this Lease

                  "Permitted Part" means the whole of one floor of the Building
                  or any part of a floor of the Building which is capable of
                  being occupied separately from the remainder of the Building
                  (subject to the use of usual common parts of the Building) or
                  a combination of such parts provided that such separate
                  underletting or underlettings do not prejudice the independent
                  occupation of any other part of the Building

                  "Plan 1" means the plan so marked attached to this Lease

                  "Plan 2" means the plan so marked attached to this Lease

                  "the Planning Agreement" means an Agreement dated 28th August
                  1996 made pursuant to Section 106 of the Town and Country
                  Planning Act 1990 made between South Cambridgeshire District
                  Council (1) The Welding Institute (2) Barclays Bank plc (3)
                  and TWI Estates Limited (4) and an Agreement dated 10 June
                  1998 together with a Supplemental Agreement dated 11 June 1998
                  both

                                      -58-
<PAGE>

                  made pursuant to Section 106 as aforesaid between
                  Cambridgeshire County Council (1) and Granta Park Limited (2)
                  together with any other agreement amending, replacing or
                  supplementing the same from time to time

                  "the Premises" means the property described in Schedule 1 Part
                  1 and refers to each part of the Premises, including all
                  landlord's fixtures, fittings, plant and equipment in or on
                  the Premises and all additions and improvements thereto

                  "Review Percentage" means 110%

                  "reviewed rent" means the Yearly Rent payable on and following
                  any rent review in accordance with Schedule 2

                  "Surety" means any party who shall at any time guarantee the
                  performance of the Tenant's Covenants

                  "the Tenant" includes the Tenant's successors in title and
                  assigns in whom this Lease may for the time being be vested

                  "the Tenant's Fit Out Works" means the works set out in
                  Schedule 6

                  "the Term" means the term of years granted by this Lease and
                  shall (where applicable) include any statutory or other
                  continuation or extension or holding over of such term of
                  years

                  "Unfitted Laboratories" means premises constructed to shell
                  and core finish including central plant and with cabling to
                  distribution boards only; services to riser ducts on each
                  floor only; no ceiling or lighting and no floor coverings but
                  with the core being fitted out;

                  "Unsecured Underletting" means an underletting of the whole or
                  a Permitted Part of the Premises in relation to which the
                  underlessor and the underlessee have agreed to exclude the
                  provisions of sections 24 to 28 of the Landlord and Tenant

                                      -59-
<PAGE>

                  Act 1954 and their agreement to do so has been duly authorized
                  beforehand by the Court

                  "the Yearly Rent" means the yearly rent from time to time
                  reserved by this Lease and payable pursuant to clause 2.3.1
                  (including any reviewed rent)

1.2               Interpretation of restrictions and liability

1.2.1             Where the Tenant is placed under a restriction in this Lease,
                  the restriction includes the obligation on the Tenant not to
                  permit or allow the infringement of the restriction by any
                  person

1.2.2             References to liability include, where the context allows,
                  claims, demands, proceedings, damages, losses, costs and
                  expenses

1.3               Clauses and clause headings

1.3.1             The clause and paragraph headings in this Lease are for ease
                  of reference only and are not to be taken into account in the
                  construction or interpretation of any covenant condition or
                  proviso to which they refer

1.3.2             Unless the context otherwise requires, references:

1.3.2.1           to numbered clauses and Schedules are references to the
                  relevant clause in or Schedule to this Lease; and

1.3.2.2           in any Schedule to a numbered paragraph are references to the
                  relevant paragraph in that Schedule

1.4               SINGULAR AND PLURAL MEANINGS

                  Words in this Lease importing the singular meaning, where the
                  context so allows, include the plural meaning and vice versa.

                                      -60-
<PAGE>

1.5               STATUTES AND STATUTORY INSTRUMENTS

                  References in this Lease to any statutes or statutory
                  instruments include and refer to any statute or statutory
                  instrument amending consolidating or replacing them
                  respectively from time to time in force, and references to a
                  statute or statutes (whether specifically or in general terms)
                  include statutory instruments and regulations made pursuant to
                  them.

1.6               GENDER

                  Words in this Lease importing any one gender include both
                  other genders and may be used interchangeably, and words
                  denoting natural persons where the context so allows include
                  corporations and vice versa.

1.7               JOINT AND SEVERAL OBLIGATIONS

                  At any time that the party of the second or the party of the
                  third part (if any) comprises two or more persons the
                  expression "the Tenant" or (where applicable) the "the Surety"
                  include the plural number and obligations in this Lease
                  expressed or implied to be made by the Tenant or the Surety
                  (if any) are to be treated as made by such persons jointly and
                  severally.

2      THE LETTING TERMS

                  In consideration of the rent reserved by and the covenants in
                  this Lease:

2.1               the Landlord lets to the Tenant:

2.1.1             ALL the Premises:

2.1.2             TOGETHER WITH the rights set out in Schedule 1 Part 2; but

2.1.3             EXCEPT AND RESERVED to the Landlord and persons authorized by
                  the Landlord the rights set out in Schedule 1 Part 3; and

2.1.4             SUBJECT to the Encumbrances

                                      -61-
<PAGE>

2.2               The Tenant shall hold the Premises for the term of TWENTY
                  YEARS commencing on [ ] and ending on [ ]

2.3               The Tenant shall pay to the Landlord during the Term:

2.3.1             the yearly rent of [ ]  POUNDS (L[  ]) (subject to revision
                  under Schedule 2) by equal quarterly payments in advance on
                  the usual quarter days in every year the first (or a
                  proportionate part) of such payments in respect of the period
                  commencing on [ ] and ending on the following quarter day to
                  be made on the date of this Lease;

2.3.2             as additional rent the monies payable by the Tenant under
                  Schedules 3 and 4 commencing on [ ]; and

2.3.3             as additional rent any value added tax chargeable on the rent
                  and additional rent reserved in clauses 2.3.1 and 2.3.2

                  NB DETAILS TO BE INSERTED AS PER AGREEMENT FOR LEASE

3        TENANT'S COVENANTS

                  THE Tenant COVENANTS with the Landlord during the Term as
                  follows:

3.1               PAYMENT OF RENT

3.1.1             To pay the Yearly Rent, free from any deductions and rights of
                  set-off, at the times and in the manner required in clause
                  2.3.1 by means of a standing order to the Tenant's bankers

3.1.2             To pay the additional rents reserved by clauses 2.3.2 and
                  2.3.3 at the times and in the manner specified in relation to
                  each of them

                                      -62-
<PAGE>

3.2               OBLIGATION TO PAY INTEREST

3.2.1             To pay Interest on so much of the rents, reviewed rents, and
                  other monies payable under this Lease as remain unpaid
                  fourteen days after they have become due from the date that
                  they became due until the payment is made to the Landlord

3.2.2             To pay Interest under clause 3.2.1 for any period during which
                  the Landlord properly refuses to accept the tender of payment
                  because of an unremedied breach of covenant of the Tenant
                  unless the Tenant is found not to be in breach

3.3               OUTGOINGS AND CONTRIBUTIONS

3.3.1             To pay all Outgoings

3.3.2             To refund to the Landlord on demand, where Outgoings relate to
                  the whole or part of the Estate including the Premises, a fair
                  and proper proportion attributable to the Premises, such
                  proportion to be conclusively determined by the Landlord or
                  the Landlord's Surveyor acting impartially

3.3.3             To reimburse the Landlord for loss of relief from non-domestic
                  rates of unoccupied property which would have been available
                  to the Landlord in respect of vacancy of the Premises after
                  the termination of this Lease but for the allowance of relief
                  to the Tenant or any other person formerly in occupation of
                  the Premises for vacancy commencing before the termination of
                  this Lease

3.3.4             To pay for all gas and electricity consumed on the Premises,
                  all charges for meters, and all standing charges

3.4               REPAIR

                  Well and substantially to repair maintain and clean the
                  Premises and to keep them in good and substantial repair and
                  condition and where necessary to replace renew and rebuild the
                  Premises (except in respect of damage by Insured Risks as
                  allowed in Schedule 3)

                                      -63-
<PAGE>

3.5               DECORATIONS

3.5.1             To decorate the inside of the Premises in the year 20[ ]and
                  from then in every subsequent fifth year of the Term and in
                  the last three months of the Term (however determined) to
                  normally accepted standards for good quality decoration work
                  using suitable and appropriate materials of good quality, in a
                  proper and workmanlike manner (such decorations in the last
                  three months of the Term to be executed in such colors
                  patterns and materials as the Landlord may reasonably require)

3.5.2             To decorate  those parts of the exterior of the Premises  that
                  are designed to be decorated and otherwise to clean the
                  exterior of the Premises in the year 20[ ] and from then in
                  every subsequent third year of the Term and also in the last
                  three months of the Term (howsoever determined) using suitable
                  and appropriate materials of good quality in a proper and
                  workmanlike manner

3.6               LANDLORD'S RIGHT OF INSPECTION AND RIGHT OF REPAIR

3.6.1             To permit the Landlord and its employees or agents at all
                  reasonable times on reasonable prior notice to enter into
                  inspect and view the Premises and examine their condition and
                  also to take a schedule of fixtures in the Premises

3.6.2             If any breach of covenant, defects, disrepair, removal of
                  fixtures or unauthorized alterations or additions are found on
                  inspection for which the Tenant is liable, then, on notice
                  from the Landlord, to commence to execute to the reasonable
                  satisfaction of the Landlord or the Landlord's Surveyor all
                  repairs, works, replacements or removals required within two
                  months (or sooner if necessary) after the receipt of the
                  notice and thereafter diligently complete the same

3.6.3             If the Tenant fails to comply with a notice under  clause
                  3.6.2, the Landlord may itself or by its workpeople or agents
                  enter the Premises and execute the repairs works replacements
                  or removals

                                      -64-
<PAGE>

3.6.4             To pay to the  Landlord  on  demand  all  proper expenses so
                  incurred under clause 3.6.3 (such expenses and any Interest on
                  them to be recoverable as if they were rent in arrear)

3.7               YIELD UP IN REPAIR AT THE END OF THE TERM

                  At the termination of this Lease or at such later time as the
                  Landlord recovers possession of the Premises from the Tenant:

3.7.1             quietly to yield up the Premises (with all additions and
                  improvements to the Premises and all fixtures in the Premises,
                  other than tenant's fixtures which the Tenant may be entitled
                  to remove) repaired, maintained, cleaned, decorated and kept
                  in accordance with the Tenant's covenants in this Lease
                  (except in respect of damage by Insured Risks as allowed in
                  Schedule 3) and to reinstate the Premises to the Approved
                  Condition;

3.7.2             if so requested by the Landlord, to remove from the Premises
                  all the Tenant's belongings - that is to say trade fixtures
                  and fittings and all notices, notice boards and signs bearing
                  the name of or otherwise relating to the Tenant (including in
                  this context any persons deriving title to the Premises under
                  the Tenant) or its business; and

3.7.3             to make good to the reasonable satisfaction of the Landlord or
                  the Landlord's Surveyors all damage to the Premises resulting
                  from the removal of the Tenant's belongings from the Premises

3.8               LANDLORD'S RIGHT OF ENTRY FOR REPAIRS, ETC TO ADJOINING
                  PROPERTY

3.8.1             To permit the Landlord or other owners, tenants or occupiers
                  of the Estate or any adjoining property and their respective
                  agents, workpeople and employees to enter the Premises at
                  reasonable times, after giving to the Tenant reasonable
                  written notice (except in an emergency):

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<PAGE>

3.8.1.1           to alter, maintain or repair any parts of the Estate or the
                  adjoining premises or property of the Landlord or person so
                  entering; or

3.8.1.2           to construct, alter, maintain, repair or fix any thing or
                  additional thing serving such property and running through or
                  on the Premises; or

3.8.1.3           to comply with an obligation to any third party having legal
                  rights over the Premises; or

3.8.1.4           in exercise of a right or to comply with an obligation of
                  repair maintenance or renewal under this Lease; or

3.8.1.5           in connection with the development of any adjoining or
                  neighboring land or premises

3.8.2             The rights of entry  granted by clause 3.8.1 shall be
                  exercisable without payment of compensation for any nuisance
                  annoyance inconvenience or damage caused to the Tenant,
                  subject to the Landlord (or other person so entering)
                  exercising the rights in a reasonable manner and making good
                  any damage caused to the Premises and the Tenant's fixtures
                  fittings equipment and furnishings without unreasonable delay
                  and complying with the Tenant's reasonable requirements
                  relating to such entry necessitated by or having regard to the
                  nature of the Tenant's business

3.9               ALTERATIONS AND ADDITIONS

3.9.1             Not to make any  alterations  or additions to or affecting the
                  structure or exterior of the Premises, or the appearance of
                  the Premises as seen from the outside nor to make any addition
                  to the Premises which would result in an increase of the Gross
                  External Area thereof (as defined by the Measuring Code)

3.9.2             Not without the consent of the Landlord (such consent not to
                  be unreasonably withheld or delayed) to make any other
                  alterations or additions to the Premises but

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<PAGE>

                  the erection, alteration or removal by the Tenant of internal
                  demountable partitioning, and consequential adjustments of
                  ducting, ceiling tiles, light fittings and wiring, is
                  authorized without such consent if all necessary regulatory or
                  statutory consents are obtained therefor and the plans of the
                  partitions (or details of the alteration or removal of
                  partitioning) are immediately deposited with the Landlord as
                  soon as practicable

3.9.3             Not to install or erect any exterior lighting, shade, canopy
                  or awning or other structure in front of or elsewhere outside
                  the Premises save any communications aerial required in
                  connection with the Tenant's business provided that the same
                  is not above the roof line and is at the rear of the Premises

3.9.4             On the termination of this Lease, to the extent required by
                  the Landlord, to reinstate the Premises to the Approved
                  Condition, such reinstatement to be carried out under the
                  supervision and to the reasonable satisfaction of the Landlord
                  or the Landlord's Surveyor

3.10              ALIENATION

3.10.1            Not to assign or charge part only of the Premises.

3.10.2            Not to assign or charge this Lease without the consent of the
                  Landlord but, subject to the operation of the following
                  provisions of clause 3.10.3, such consent is not to be
                  unreasonably withheld or delayed;

3.10.3            The Landlord may withhold its consent to an application by the
                  Tenant for license to assign this Lease if any one or more of
                  the conditions and criteria set by this clause 3.10.3 are not
                  met, that:

3.10.3.1          at the time of the assignment, there are no arrears of rents
                  or other monies due to the Landlord;

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<PAGE>

3.10.3.2          the Tenant and (to the extent not prohibited by law) the
                  Surety each enters into an Authorized Guarantee Agreement (as
                  defined by the Landlord and Tenant (Covenants) Act 1995)
                  substantially in the form in Schedule 5 Part 1 ;

3.10.3.3          the Tenant shall supply to the Landlord such financial  and
                  other information as the Landlord shall reasonably require
                  about the intended assignee or its sureties which may include
                  if so requested audited accounts or trading figures for the
                  preceding three years together with verified statements as to
                  current financial trading

3.10.3.4          if reasonably so required by the Landlord the  intended
                  assignee shall provide such security (whether by way of rental
                  deposit or otherwise) for the performance of the intended
                  assignee's obligations under this Lease as shall be reasonably
                  required by the Landlord and/or

3.10.3.5          if the Landlord reasonably so requires the Tenant shall
                  procure a guarantee of the covenants of the assignee from a
                  guarantor who is reasonably acceptable to the Landlord, the
                  guarantee to be substantially in the terms set out in Schedule
                  5 Part 1

3.10.3.6          at the time of the application by  the Tenant for the
                  Landlord's license to assign, the proposed assignee satisfies
                  the criteria set out in Schedule 5 Part 2

                  The conditions and criteria contained or referred to in this
                  clause 3.10.3 are specified for the purposes of Section 19(A)
                  of the Landlord and Tenant Act 1927.

3.10.4            Not to underlet the whole or any Permitted Part of the
                  Premises without the consent of the Landlord (such consent not
                  to be unreasonably withheld or delayed)

3.10.5            Not to underlet part or parts of the Premises save a
                  Permitted Part in accordance with the following provisions:

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<PAGE>

3.10.5.1          so as to sub-divide the Premises into more than five units
                  of occupation, of which one (at least) shall remain occupied
                  by the Tenant

3.10.5.2          otherwise than by way of Unsecured Underletting of a Permitted
                  Part for a term not exceeding five years

3.10.6            On the grant of an underlease to obtain the Landlord's
                  approval of the form of underlease (such approval not to be
                  unreasonably withheld or delayed) and to obtain covenants by
                  deed from the underlessee direct with the Landlord in such
                  form as the Landlord may reasonably require that the
                  underlessee will:

3.10.6.1          not assign, sub-underlet or charge part only of the premises
                  underlet, nor sub-underlet the whole

3.10.6.2          not part with or share possession or occupation of the whole
                  or any part of the premises underlet nor grant to third
                  parties rights over them otherwise than by an assignment
                  permitted pursuant to clause 3.10.6.3

3.10.6.3          not assign or charge the whole of the premises sub-underlet
                  without obtaining the previous consent of the Landlord under
                  this Lease (such consent not to be unreasonably withheld or
                  delayed);

3.10.7            On the grant of any underlease:

3.10.7.1          to include provisions for the revision of the rent reserved by
                  the underlease in an upward only direction to correspond in
                  time and effect with the provisions for the revision of rent
                  in this Lease and on the basis that in any underletting of
                  part as distinct from the whole the underlet premises shall be
                  substituted for the Hypothetical Premises in such provisions;

3.10.7.2          not to reserve or take a premium or fine;

3.10.7.3          to reserve a rent which is no less than the market rent of the
                  underlet premises as at the time of the grant of the
                  underlease (assessed in accordance with the

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<PAGE>

                  principles in Schedule 2 but with the omission of the
                  reference to the Review Percentage in respect of underlettings
                  of part as distinct from the whole) and provided that no rent
                  reserved on any such underletting (whether of the whole or
                  part) shall be used as evidence in any rent review under this
                  Lease or relating to any other premises on the Estate which
                  are let to or occupied by the Tenant; and

3.10.7.4          to ensure that the covenants of the underlessee are not
                  inconsistent with and do not impair the due performance and
                  observance of the covenants of the Tenant in his Lease and to
                  include a covenant by the underlessee not to do anything which
                  shall result in a breach of the covenants on the part of the
                  Tenant in this Lease

3.10.8            Not otherwise than by assignment or underletting permitted
                  under this clause 3.10 to:

3.10.8.1          part with or share possession or occupation of the whole or
                  any part of the Premises: or

3.10.8.2          grant to third parties any rights over the Premises

3.10.9            The preceding provisions of this clause 3. 10 do not apply to
                  any parting with possession or occupation or the sharing of
                  occupation or sub-division of the Premises to or with any
                  member of a group of companies of which the Tenant is itself a
                  member if:

3.10.9.1          the interest in the Premises so created is and remains no more
                  than a tenancy at will; and

3.10.9.2          the possession, occupation or subdivision are immediately
                  determined if the Tenant and the relevant member cease for any
                  reason whatsoever to be members of the same group of
                  companies;

                                      -70-
<PAGE>

                  and for this purpose two companies are members of a group if,
                  and only if, one is a subsidiary of the other or both are
                  subsidiaries of a third company, "subsidiary" having the
                  meaning given to it by Section 736 of the Companies Act 1985

3.11              REGISTRATION AND SUPPLY OF INFORMATION

3.11.1            To produce to and leave with the solicitors of the Landlord a
                  certified copy of the document effecting the disposition
                  within one month after any disposition of this Lease or the
                  Premises (a "disposition" being an assignment, charge,
                  transfer, underlease, assignment or surrender of any
                  underlease, or on any transmission by death or otherwise
                  documentary evidence of devolution affecting the Premises),
                  and on each occasion to pay to the solicitors such fee as they
                  may reasonably require for the registration

3.11.2            To supply to the Landlord any details required by the Landlord
                  pursuant to Section 40 of the Landlord and Tenant Act 1954 and
                  full details of any notices given pursuant to Section 25 of
                  that Act by the Tenant to any sub-tenant and full details of
                  any notices received by the Tenant from any sub-tenant
                  pursuant to Section 26 of that Act

3.12              ENFORCEMENT OF UNDERLEASES

3.12.1            Not without the consent of the Landlord (such consent not to
                  be unreasonably withheld or delayed) to vary the terms, or
                  waive the benefit, of any covenant of the underlessee or
                  condition in an underlease of the Premises.

3.12.2            Diligently to enforce the covenants of the underlessee and the
                  conditions in an underlease of the Premises and (if reasonably
                  required by the Landlord) to exercise by way of enforcement
                  the powers of re-entry in the underlease

3.12.3            Not without the consent of the Landlord to accept any sum or
                  payment in kind by way of commutation of the rent payable by
                  an underlessee of the Premises

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<PAGE>

3.12.4            Not to accept the payment of rent from an underlessee of the
                  Premises otherwise than by regular quarterly (or more
                  frequent) payments in advance

3.12.5            Duly and punctually to exercise all rights to revise the rent
                  reserved by an underlease of the Premises, and not to agree
                  with an underlessee a revised rent without the approval of the
                  Landlord (such approval not to be unreasonably withheld or
                  delayed)

3.13              PERMITTED USER

3.13.1            Not to use the Premises otherwise than for Research and
                  Development uses falling with Class B1 (b) of the Town and
                  Country (Use Classes) Order 1987 and for purposes ancillary
                  thereto

3.13.2            Nothing in this Lease implies or is to be treated as a
                  warranty to the effect that the use of the Premises for those
                  purposes is in compliance with all town planning laws and
                  regulations now or from time to time in force

3.14              RESTRICTIONS AND REGULATIONS RELATING TO USE

3.14.1            Not to erect or install in the Premises any engine, furnace,
                  plant or machinery which causes fumes or vibration which can
                  be heard smelled or felt outside the Premises or which has a
                  noise level which exceeds 45 and BA measured at the boundary
                  of the Premises

3.14.2            Not to store in the Premises (except in properly designated
                  stores or containers and in accordance with the
                  recommendations of the competent authorities) any petrol or
                  other specially inflammable explosive or combustible substance

3.14.3            Not to use the Premises for any noxious, noisy or offensive
                  trade or business nor for any illegal or immoral act or
                  purpose

                                      -72-
<PAGE>

3.14.4            Not do to anything in the Premises which may be or grow to be
                  a nuisance, annoyance, disturbance, inconvenience or damage to
                  the Landlord or its other tenants or occupiers of the Estate

3.14.5            Not to use the Premises for carrying out any experiments on
                  animals without the written consent of the Landlord and
                  provided that the Landlord shall be entitled to withhold such
                  consent where in its reasonable opinion such use would or
                  might be detrimental to the value of the Premises any
                  neighboring premises or the Estate as a whole

3.14.6            Not to hold in or on the Premises any exhibition public
                  meeting or public entertainment nor to carry on any activity
                  at the Premises which will or may be attended by members of
                  the general public

3.14.7            Not to load or use the floors, walls, ceilings, or structure
                  of the Premises or any building of which they form part so as
                  to cause strain damage or interference with the structural
                  parts, loadbearing framework, roof, foundations, joists and
                  external walls

3.14.8            Not to overload the electrical installation or conducting
                  media serving the Premises nor to do or omit to do anything
                  which may interfere with or which imposes an additional
                  loading on any ventilation, heating, air conditioning or other
                  plant or machinery serving the Premises beyond that which it
                  is designed to take

3.14.9            Not to allow any person to sleep in the Premises nor to use
                  the Premises for residential purposes

3.14.10           Not to permit waste or rubbish to accumulate on the Premises
                  or be deposited on any part of the Estate or any adjoining
                  property and to ensure that all waste and rubbish is placed in
                  dustbins or other suitable containers to be kept within such
                  areas as are provided therefor

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<PAGE>

3.14.11           Not to place leave or install any articles, merchandise, goods
                  or other things in front of or elsewhere outside the Premises
                  except in such receptacles (if any) as may be provided by the
                  Landlord or external storage compounds approved by the
                  Landlord (such approval not to be unreasonably withheld or
                  delayed)

3.14.12.1         Not to permit the drains to be obstructed by oil grease or
                  other deleterious matter, but to keep thoroughly cleaned the
                  Premises and the drains serving the Premises as often as may
                  be necessary

3.14.12.2         Not to permit any dangerous offensive or deleterious effluent
                  to be discharged into any drains or sewers serving the
                  Premises or any part thereof save small quantities in
                  connection with the Tenant's business and as authorized
                  (whether by license issued to the Landlord or the Tenant or
                  authorized generally without license) by the relevant
                  authority and in accordance with the rules and regulations of
                  that authority

3.14.12.3         Not to discharge quantities of water or soil into the drains
                  or sewers serving the Premises or any part thereof so as to
                  overload the same or the means of disposal thereof

3.14.12.4         To procure the obtaining of all necessary licenses and
                  consents for the discharge of any matter into the drains or
                  sewers serving the Premises and not otherwise than in
                  compliance with such licenses or consents to permit any
                  substance to be discharged into any drains or sewers

3.14.13           Not to load or unload vehicles except in the service areas or
                  loading bays provided for such purpose nor to use any portion
                  of the access roads or service area for the parking of
                  vehicles otherwise than during the course of loading and
                  unloading

3.14.14           To observe and perform or cause to be observed and performed
                  any reasonable rules and regulations from time to time made by
                  the Landlord for the orderly and proper use of the Estate
                  including (without limitation):

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<PAGE>

3.14.14.1         such regulations as the Landlord may make with regard to the
                  use of the Estate Amenities

3.14.14.2         such regulations (if any) relating to security as the Landlord
                  may consider appropriate

3.14.14.3         such codes of practice as the Landlord may reasonably
                  introduce for the environmentally responsible use and
                  occupation of buildings

3.15              ADVERTISEMENTS AND SIGNS

3.15.1            Not to place or display on the exterior of the Premises or on
                  the windows or inside the Premises so as to be visible from
                  the exterior of the Premises any name, writing, notice, sign,
                  illuminated sign, display of lights, placard, poster sticker
                  or advertisement other than:

3.15.1.1          suitable signs of a size and kind first approved by the
                  Landlord or the Landlord's Surveyor (such approval not to be
                  unreasonably withheld or delayed) showing the Tenant's and any
                  subtenant's name and trade;

3.15.1.2          such other notices as the Landlord may in its discretion
                  (exercised reasonably) approve; and

3.15.1.3          the name of the Tenant and any permitted subtenants displayed
                  in any indicator board provided by the Landlord

3.15.2            If any name, writing, notice, sign, placard, poster, sticker
                  or advertisement is placed or displayed in breach of these
                  provisions, to permit the Landlord (following reasonable prior
                  notice) to enter the Premises and remove such name, writing,
                  notice, sign, placard, poster, sticker or advertisement, and
                  to pay to the Landlord on demand the expense of so doing.

                                      -75-
<PAGE>

3.16              COMPLIANCE WITH STATUTES, ETC

3.16.1            To comply in all respects with the provisions of all statutes
                  for the time being in force and requirements of any competent
                  authority relating to the Premises or anything done in or on
                  them by the Tenant, and to keep the Landlord indemnified
                  against liability in consequence of the Tenant's failure to
                  comply with them Provided that nothing in this clause 3.16.1
                  shall impose any liability upon the Tenant in respect of any
                  contamination at or under the Premises existing prior to the
                  grant of this Lease or any other pre-existing non-compliance
                  with environmental requirements

3.16.2            To execute with all due diligence (commencing work within two
                  months or sooner if necessary and then proceeding
                  continuously) all works to the Premises for which the Tenant
                  is liable under clause 3.16.1 and of which the Landlord has
                  given notice to the Tenant and, if the Tenant does not comply
                  with this clause 3.16.2 to permit the Landlord to enter the
                  Premises to carry out such works, and to indemnify the
                  Landlord on demand for the expenses of so doing (including
                  surveyors and other professional advisers' fees), such
                  expenses and any Interest on them to be recoverable as if they
                  were rent in arrear

3.16.3            To give notice to the Landlord of any defect in the Premises
                  which might give rise to an obligation on the Landlord to do
                  or to refrain from doing any act or thing in order to comply
                  with the provisions of this Lease or any duty of care imposed
                  on the Landlord pursuant to the Defective Premises Act 1972 or
                  otherwise

3.17              PLANNING PERMISSIONS

3.17.1            Not without the consent of the Landlord to make any
                  application under the Town and Country Planning Acts, as
                  defined in the Town and Country Planning Act 1990, to any
                  local planning authority for permission to develop, including
                  change of use of, the Premises or for any approval pursuant to
                  the Planning Agreement Provided Always that the Landlord shall
                  not be obliged to give consent where the

                                      -76-
<PAGE>

                  application involves a change of use of the Premises or a
                  reduction or potential reduction in the developable area of
                  the remainder of the Estate but shall not otherwise
                  unreasonably withhold or delay its consent

3.17.2            To indemnify the Landlord against any development charges,
                  other charges and expenses payable in respect of such
                  applications and to reimburse to the Landlord the costs it may
                  properly incur in connection with such consent.

3.17.3            Forthwith to give to the Landlord full particulars in writing
                  of the grant of planning permission

3.17.4            Not to implement any planning permission or change of use if
                  the Landlord makes reasonable objection to any of the
                  conditions subject to which the planning permission has been
                  granted within fourteen days of receipt of a copy of the
                  written conditions pursuant to clause 3.17.3

3.18              COMPLIANCE WITH TOWN PLANNING AND ENVIRONMENTAL REQUIREMENTS

3.18.1            To perform and observe the requirements of statutes and
                  regulations relating to town and country planning and
                  environmental protection applying to the Premises and all
                  agreements licenses and consents (and conditions attached
                  thereto) granted thereunder which relate to the Premises and
                  to obtain any development or other consent permit or license
                  by reason of the development or manner of use of or on the
                  Premises by the Tenant

3.18.2            To keep the Landlord indemnified against liability by reason
                  of the Tenant's failure to obtain any requisite development or
                  other consent permit or license or in complying with the
                  requirements of statutes and regulations

3.18.3            To give full particulars to the Landlord of any notice, or
                  proposal for a notice, or order or proposal for an order, made
                  given or issued to the Tenant under any statute or regulation
                  relating to town and country planning, environmental

                                      -77-
<PAGE>

                  protection or otherwise within seven days after the receipt of
                  any such by the Tenant

3.18.4            Forthwith to take all reasonable and necessary steps to comply
                  with any such notice or order

3.18.5            At the request and cost of the Landlord, to make or join with
                  the Landlord in making such objections or representations
                  against or in respect of any proposal for such notice or order
                  as the Landlord may consider expedient provided that the
                  Tenant shall not be required to do so if the Tenant considers
                  that it would be materially detrimental to its business to do
                  so

                  Provided that nothing in this clause 3.18 shall impose any
                  liability upon the tenant in respect of any contamination at
                  or under the Premises existing prior to the grant of this
                  Lease or any other pre-existing non-compliance with
                  environmental requirements

3.19              CLAIMS MADE BY THIRD PARTIES

3.19.1            To keep the Landlord indemnified against liability in respect
                  of any accident, loss or damage to person or property in the
                  Premises

3.19.2            To keep the Landlord indemnified against liability of the
                  Landlord to third parties by reason of breach by the Tenant of
                  its obligations in this Lease

3.20              EXPENSES OF THE LANDLORD

                  To pay to the Landlord on demand all proper expenses
                  (including solicitors' costs, bailiffs' fees and surveyors'
                  and architects' fees) incurred by the Landlord:

3.20.1            incidental to or in proper contemplation of the preparation
                  and service of a schedule of dilapidations during or after the
                  termination of this Lease and/or a notice under section 146
                  and 147 of the Law of Property Act 1925, even if forfeiture is
                  avoided otherwise than by relief granted by the court;

                                      -78-
<PAGE>

3.20.2            in the recovery or attempted recovery of arrears of rent or
                  additional rent due from the Tenant; and

3.20.3            in connection with every application for any consent or
                  approval made under this Lease, whether or not consent or
                  approval is given and provided that in the latter case such
                  fees shall also be reasonable

3.21              OBSTRUCTION OF WINDOWS OR LIGHTS AND EASEMENTS

3.21.1            Not to stop up or obstruct any windows of the Premises or any
                  other buildings belonging to the Landlord.

3.21.2            Not to permit any easement or similar right to be made or
                  acquired into against or on the Premises.

3.21.3            Where any such easement or right is or is attempted to be
                  acquired, immediately to give notice of the circumstances to
                  the Landlord, and at the request and cost of the Landlord to
                  adopt such course as it may reasonably require for preventing
                  the acquisition of the easement or right to such easement.

3.22              VALUE ADDED TAX

3.22.1            To pay value added tax on taxable supplies of goods and
                  services made by the Landlord in connection with this Lease,
                  the consideration for which is to be treated as exclusive of
                  value added tax chargeable on the payment.

3.22.2            Where the Landlord is entitled under this Lease to recover
                  from the Tenant the costs of goods and services supplied to
                  the Landlord, but in respect of which the Landlord makes no
                  taxable supply to the Tenant, to indemnify the Landlord
                  against so much of the input tax on the cost for which the
                  Landlord is not entitled to credit allowance under section 26
                  of the Value Added Tax Act 1994

3.22.3            References in this clause, or elsewhere in this Lease, to
                  value added tax shall include any tax of a similar nature that
                  may be substituted for it

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<PAGE>

3.23              NOTICES "TO LET" AND "FOR SALE"

3.23.1            To allow the Landlord or its agents to enter the Premises at
                  any reasonable time following reasonable prior notice:

3.23.1.1          within six months next before the termination of this Lease to
                  fix on the Premises a notice board for reletting the Premises;
                  and

3.23.1.2          to fix on some part of the Premises a notice board for sale of
                  the interest of the Landlord

3.23.2            Not to remove or obscure any such notice board

3.23.3            To permit all persons authorized by the Landlord or its agents
                  to view the Premises at reasonable hours following reasonable
                  notice without interruption in connection with any such
                  letting or sale subject to those entering complying with the
                  Tenant's reasonable requirements relating to such entry
                  necessitated by or having regard to the nature of the Tenant's
                  business

3.24              ENCUMBRANCES

                  To observe and perform the obligations and restrictions
                  contained in the Encumbrances set out in Part 4A of Schedule 1
                  so far as they relate to the Premises and are capable of being
                  enforced, and to keep the Landlord indemnified against
                  liability for breach of the obligations and restrictions

3.25              REPLACEMENT OF GUARANTOR

                  If at any time any party who shall act as surety for the
                  Tenant's covenants in this Lease shall suffer an event of
                  insolvency as defined in clause 4.1.3 hereof the Tenant in
                  respect of which that party was provided as surety shall
                  notify the Landlord of the same and shall upon request from
                  the Landlord provide a replacement surety reasonably
                  acceptable to the Landlord and who shall enter into covenants
                  with the Landlord substantially in the form of clause 7 of
                  this Lease

                                      -80-
<PAGE>

4                 PROVISOS

                  THE parties agree to the following provisos:

4.1               PROVISO FOR RE-ENTRY

4.1.1             The Landlord may terminate this Lease by re-entering the
                  Premises (or a part of them) itself or by an authorized agent
                  if:

4.1.1.1           any rent remains unpaid twenty-one days after becoming due for
                  payment (whether or not formally demanded); or

4.1.1.2           the Tenant fails to perform or observe any of its covenants or
                  the conditions in this Lease or allows any distress or
                  execution to be levied on its goods; or

4.1.1.3           an event of insolvency occurs in relation to the Tenant or
                  (where applicable) one of the persons comprising the Tenant or
                  any guarantor of the Tenant unless in the case of an event of
                  insolvency in respect of a guarantor the Tenant procures a
                  replacement guarantor who shall enter into covenants with the
                  Landlord substantially in the form of clause 7 of this Lease
                  within two months of the event of insolvency

4.1.2             Re-entry in exercise of the rights in clause 4. 1.1 does not
                  affect any other right or remedy of the Landlord for breach of
                  covenant or condition by the Tenant occurring before the
                  termination of this Lease

4.1.3             The expression "an event of insolvency" in clause 4.1 .1
                  includes:

4.1.3.1           (in relation to a company or other corporation which is the
                  Tenant or one of the Tenants or a guarantor) inability of the
                  company to pay its debts, entry into liquidation either
                  compulsory or voluntary (except for the purpose of
                  amalgamation or reconstruction), the passing of a resolution
                  for a creditors winding-up, the making of a proposal to the
                  company and its creditors for a composition in satisfaction of
                  its debts or a scheme of arrangement of its affairs, the
                  application to the court for an administration order and the
                  appointment of a receiver or administrative receiver; and

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4.1.3.2           (in relation to an individual who is the Tenant or a
                  guarantor) inability to pay or having no reasonable prospect
                  of being able to pay his debts, the presentation of a
                  bankruptcy petition, the making of a proposal to his creditors
                  for a composition in satisfaction of his debts or a scheme of
                  an arrangement of his affairs, the application to the court
                  for an interim order and the appointment of a receiver or
                  interim receiver;

                  and in relation to the various events of insolvency they are
                  wherever appropriate to be interpreted in accordance and in
                  conjunction with the relevant provisions of the Insolvency Act
                  1986

4.1.3.3           in relation to the Surety bankruptcy receivership insolvency
                  re-organization (except for the purposes of amalgamation or
                  reconstruction) or similar proceedings involving or affecting
                  the Surety

4.2               POWER FOR LANDLORD TO DEAL WITH ADJOINING PROPERTY

4.2.1             The Landlord may deal as it thinks fit with other property
                  adjoining or nearby belonging to the Landlord and may erect or
                  permit to be erected on such property any buildings
                  irrespective of whether they affect or diminish the light or
                  air which may now or at any time be enjoyed by the Tenant in
                  respect of the Premises Provided that the Premises are not
                  rendered unsuitable for the Permitted Use

4.2.2             The Landlord may at all times without obtaining any consent
                  from or making any arrangement with the Tenant alter
                  reconstruct or modify in any way whatsoever or change the use
                  of the Estate or the Common Parts so long as proper means of
                  access to and egress from the Premises are afforded and
                  essential services are maintained at all times

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4.3               ARBITRATION OF DISPUTES BETWEEN TENANTS

                  If any dispute or disagreement at any time arises between the
                  Tenant and the tenants and occupiers of the other parts of the
                  Estate relating to the conducting media serving or easements
                  or rights affecting the Premises or the Estate the dispute or
                  disagreement is to be determined by the Landlord acting
                  impartially by which determination the Tenant shall be bound

4.4               EXEMPTION FROM LIABILITY IN RESPECT OF SERVICES

4.4.1             The Landlord is not to be liable to the Tenant for any loss
                  damage or inconvenience which may be caused by reason of:

4.4.1.1           temporary interruption of services during periods of
                  inspection maintenance repair and renewal;

4.4.1.2           breakdown of or defect in any plant and machinery services or
                  conducting media in the Premises or neighboring or adjoining
                  property; or

4.4.1.3           events beyond the reasonable control of the Landlord

4.4.1.4           any failure to provide any of the services unless such failure
                  shall result from any negligent act or omission on the part of
                  the Landlord

                  Provided that in each case referred to in this clause 4.4.1
                  the Landlord uses all reasonable endeavors to minimize any
                  loss inconvenience or damage

4.4.2             The Landlord's duty of care to the Tenant's employees agents
                  workpeople and visitors in or about the Estate does not go
                  beyond the obligations involved in the common duty of care
                  (within the meaning of the Occupiers Liability Act 1957) or
                  the duties imposed by the Defective Premises Act 1972

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4.5               ACCIDENTS

                  The Landlord is not to be responsible to the Tenant or the
                  Tenant's licensees nor to any other person for any:

4.5.1             accident happening or injury suffered in the Premises; or

4.5.2             damage to or loss of any goods or property sustained in the
                  Building ; or

4.5.3             act or omission of any employee of the Landlord on the Estate
                  where such employee is acting outside the terms of his
                  employment by the Landlord

4.6               COMPENSATION FOR DISTURBANCE

                  The Tenant is not entitled on quitting the Premises to claim
                  from the Landlord any compensation unless and to the extent
                  that any statutory right to compensation precludes the
                  operation of this clause

4.7               REMOVAL OF PROPERTY AFTER DETERMINATION OF TERM

4.7.1             If after the Tenant has vacated the Premises following the
                  termination of this Lease any property of the Tenant remains
                  in the Premises and the Tenant fails to remove it within
                  fourteen days after being requested in writing by the Landlord
                  to do so the Landlord may as the agent of the Tenant sell such
                  property and hold the proceeds of sale after deducting the
                  costs and expenses of removal, storage and sale reasonably and
                  properly incurred by it to the order of the Tenant

4.7.2             The Tenant will indemnify the Landlord against any liability
                  incurred by it to any third party whose property has been sold
                  by the Landlord in the bona fide mistaken belief (which is to
                  be presumed unless the contrary be proved) that it belonged to
                  the Tenant and was liable to be dealt with as such under this
                  clause 4.7

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4.8               NOTICES CONSENTS AND APPROVALS

4.8.1             Any notice served under or in connection with this Lease must
                  be in writing

4.8.2             Notices shall be taken to be given unless the contrary be
                  proved:

4.8.2.1           when sent by first class post, on the next working day
                  following posting

4.8.2.2           when sent by document exchange, on the first working day after
                  the day on which it would normally be available for collection
                  by the addressee

4.8.3             Any consent or approval under this Lease is required to be
                  obtained before the act or event to which it applies is
                  carried out or done and is to be treated as effective only if
                  the consent or approval is given in writing

4.9               RIGHTS OF ACCESS OR ENTRY

                  The exercise of all rights of entry on to the Premises by the
                  Landlord or those authorized by the Landlord shall be subject
                  to the following conditions:

4.9.1             reasonable prior notice must be given save in emergency;

4.9.2             the persons so entering must cause as little disturbance and
                  inconvenience as practicable to the Tenant and any
                  sub-tenants;

4.9.3             the persons so entering must comply with the Tenant's
                  reasonable requirements having particular regard to the
                  Tenant's use and business carried on at the Premises;

4.9.4             must make good any damage to the Premises and any fixtures
                  fittings equipment and furnishings to the reasonable
                  satisfaction of the Tenant and/or its sub-tenants as soon as
                  practicable

                                      -85-
<PAGE>

5                 LANDLORD'S COVENANTS

                  The Landlord covenants with the Tenant that:

5.1               QUIET ENJOYMENT

                  The Tenant paying the rents reserved and performing the
                  Tenant's covenants in this Lease the Tenant may lawfully and
                  peaceably enjoy the Premises throughout the Term without
                  interruption by the Landlord or by any person lawfully
                  claiming through under or in trust for the Landlord

5.2               IN DUTY TO MITIGATE

                  In every circumstance where the Tenant (pursuant to the
                  provisions of this Lease) indemnifies the Landlord against
                  losses claims damages actions and expenses to use all
                  reasonable endeavors to mitigate the same and to notify the
                  Tenant immediately the Landlord becomes aware of any third
                  party claim or action Provided that this clause shall not
                  apply where the Tenant is in breach of the provisions of this
                  Lease

5.3               NOTIFICATION OF INTERRUPTION ETC

                  To give to the Tenant as much notice as reasonably practicable
                  of any change (permanent or temporary) to the Estate Amenities
                  and of any interruption that may arise to services to the
                  Premises through the conducting media

6                 OBLIGATIONS IN SCHEDULES

                  The Landlord and the Tenant mutually covenant to observe and
                  perform their respective obligations and the conditions in the
                  Schedules to this Lease

7                 GUARANTEE PROVISION

7.1               GUARANTEE

7.1.1             The Surety guarantees to the Landlord that the Tenant will pay
                  the rents reserved by and perform and observe all the Tenant's
                  covenants and obligations in this Lease throughout the Term
                  and the Surety will pay and make good to the

                                      -86-
<PAGE>

                  Landlord on demand any losses damages costs and expenses
                  suffered or incurred by the Landlord by reason of any failure
                  of the Tenant to do so

7.1.2             This guarantee remains in force for so long as and to the
                  extent that the Tenant (in this context meaning the party
                  named as "Tenant" in the Parties clause of this Lease) is not
                  released by law from liability for the Tenant's covenants in
                  this Lease

7.2               NO WAIVER OR RELEASE OF LIABILITY

                  The Surety is not to be released from liability under these
                  provisions by reason of:

7.2.1             any forbearance, the granting of time or any other indulgence
                  on the part of the Landlord including (but without affecting
                  the general operation of this clause 7.2) any granting or
                  extension of time under or varying the procedure set out in
                  Schedule 2 paragraph 5; or

7.2.2             any variation of this Lease whether or not made with the
                  consent of the Surety and the guarantee of the Surety in
                  clause 7.1 is to operate in relation to this Lease as it may
                  be varied from time to time

7.3               SURETY TO ACCEPT NEW LEASE UPON DISCLAIMER

7.3.1             If this Lease is effectively determined by disclaimer the
                  Surety shall, if the Landlord by notice within three months
                  after the date of disclaimer so requires, take from the
                  Landlord a lease of the Premises

7.3.2             The lease to be granted to the Surety under clause 7.3.1 is to
                  be on the following terms:

7.3.2.1           the term is to commence on the date of termination of this
                  Lease and to be equal to the residue of the Term which would
                  have remained unexpired at that date if this Lease had not
                  then been terminated;

                                      -87-
<PAGE>

7.3.2.2           the Yearly Rent is to be the same as would have been payable
                  under this Lease if it had continued undetermined and if a
                  rent review operative from a review date before the grant of
                  the lease has not been completed the Surety will complete the
                  rent review as if it had been the Tenant under this Lease in
                  order to establish the commencing yearly rent under the lease;

7.3.2.3           the lease is otherwise to be on the same terms and conditions
                  as would have applied under this Lease if it had continued
                  undetermined; and

7.3.2.4           the Surety is to succeed to the rights and assume the
                  liability of the Tenant under this Lease as if the Lease had
                  continued undetermined

7.3.2.5           the Surety is to pay the Landlord's solicitors' charges
                  relating to grant of the lease

7.3.3             If the Landlord shall not require the Surety to take up a
                  lease of the Premises pursuant to clause 7.3.1 the Surety
                  shall nevertheless upon demand pay to the Landlord a sum equal
                  to the rent and all other payments that would have been
                  payable under this lease but for the disclaimer in respect of
                  the period from the date thereof until the earlier of the
                  expiry of six months from that date or the reletting of the
                  Premises by the Landlord (and the expiry of any rent-free
                  period)

8                 EXPERT DETERMINATION

8.1               In this Lease where any issue is required to be dealt with by
                  or submitted for the determination of an independent expert
                  the following provisions of this clause are to apply but in
                  case of conflict with other provisions specifically relating
                  to expert determination elsewhere in this Lease those other
                  provisions are to prevail to the extent of the conflict

8.2               The expert is to be appointed by the parties jointly or if
                  they cannot or do not agree on the appointment appointed by
                  whichever of the following is appropriate:

8.2.1             the President for the time being of the Royal Institution of
                  Chartered Surveyors;

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<PAGE>

8.2.2             the President for the time being of the Institute of Chartered
                  Accountants in England and Wales

                  or in each such case the duly appointed deputy of the
                  president or other person authorized by him to make appoints
                  in his behalf

8.3               The person so appointed is to act as an expert and not as an
                  arbitrator

8.4               The expert so appointed must afford the parties opportunity
                  within such a reasonable time limit as he may stipulate to
                  make representations to him (accompanied by professional
                  rental valuations reports or other appropriate evidence in the
                  relevant circumstances) and permit each party to make
                  submissions on the representations of the other

8.5               The fees and expenses of the expert including the cost of his
                  nomination are to be borne as the expert may direct (but in
                  the absence of such a direction by the parties in equal
                  shares) but (unless they otherwise agree) the parties will
                  bear their own costs in respect of the determination of the
                  issue by the expert

8.6               If the expert refuses to act becomes incapable of acting or
                  dies the Landlord or the Tenant may require the appointment of
                  another expert in his stead under paragraph 8.2

8.7               The determination of the expert except in case of manifest
                  error is to be binding on the Landlord and the Tenant

9                 GOVERNING LAW

                  This Lease shall be governed by and construed in all respects
                  in accordance with the laws of England and proceedings in
                  connection with it shall be subject (and the parties hereby
                  submit) to the non-exclusive jurisdiction of the English
                  Courts

DELIVERED as a Deed on the date at the head of this Lease

                                   SCHEDULE 1

                                      -89-
<PAGE>

                                     PART 1

                           DESCRIPTION OF THE PREMISES

The premises known as Unit 15A Granta Park, Abington, Cambridge and shown for
identification purposes only edged red on Plan 2

                                      -90-
<PAGE>

                                     PART 2

                          RIGHTS GRANTED TO THE TENANT

1    The right (in addition to but not in substitution for any rights
     specifically granted in the following paragraphs) for the Tenant and all
     persons authorized by the Tenant (in common with the Landlord and others
     having a similar right) to use the Estate Amenities for all proper purposes
     in connection with the use and enjoyment of the Premises

2    The free passage and running (subject to temporary interruption for repair
     alterations or replacement) of water, soil, gas, electricity,
     telecommunications and other supplies and services to and from the Premises
     in and through the conducting media that now or at any time during the Term
     serve the Premises presently laid in on through or under other parts of the
     Estate

3    A right of way for all purposes reasonably necessary for the use and
     enjoyment of the Premises for the purposes permitted by this Lease (but not
     further or otherwise) with or without vehicles over the Estate Roads

4    The right to use [ ] parking spaces in the adjacent parking grove shown
     edged in green on Plan 2 or in such other appropriate areas as shall be
     designated from time to time by the Landlord

NOTE THE NUMBER OF CAR PARKING SPACES WITHIN PARKING GROVES WILL DEPEND UPON THE
     FINAL MEASUREMENT OF THE BUILDING AND THE NUMBER OF SPACES INCORPORATED
     WITHIN THE CURTILAGE OF THE BUILDING

5    The right with or without workmen and on reasonable prior notice (save in
     emergency) to enter any part of the Estate in order to carry out any
     repairs or alterations to the Premises or conducting media serving the
     Premises exclusively that cannot reasonably be carried out without such
     entry upon the Estate subject to the Tenant causing as little damage or
     inconvenience as practicable and making good all damage caused to the
     Estate resulting from the exercise of such rights as soon as reasonably
     practicable

                                      -91-
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                                     PART 3

                         RIGHTS RESERVED TO THE LANDLORD

1         The right to the free passage and running of water soil gas
          electricity telecommunications and other supplies and services to and
          from other parts of the Estate and any adjoining property through and
          along any conducting media in over through or under the Premises which
          now serve or may hereafter during the Term serve also such other parts
          of the Estate

2         The right to build on or rebuild or alter other parts of the Estate
          and any adjoining property and in any manner whatsoever and to let the
          same for any purpose or otherwise deal therewith notwithstanding that
          the supply of light or air to the Premises is in any such case
          diminished thereby or any other liberty easement right or advantage
          other than such as are herein specifically granted belonging to the
          Tenant is thereby diminished or prejudicially affected Provided that
          the Premises are not rendered unsuitable for the Permitted Use

3         The right to maintain renew or construct in upon through or over the
          unbuilt upon parts of the Premises at any time during the Term any
          conducting media or services for the benefit of other parts of the
          Estate which it is impractical or uneconomic to route outside the
          Premises

4         The right at any time during the Term at reasonable times and upon
          reasonable notice except in cases of emergency to enter (or in cases
          of emergency to break and enter) the Premises or any part thereof

4.1       to inspect the condition and state of repair of the Premises and to
          value the same

4.2       to take schedules or inventories of fixtures and other items to be
          yielded up on the expiry of the Term and

4.3       to exercise any of the rights granted to the Landlord elsewhere in
          this Lease

                                      -92-
<PAGE>

4.4       for any other reasonable purpose connected with the Landlord's
          management and development of the Estate

5         The right with the Surveyor or any third party determining the Yearly
          Rent in default of agreement between the parties under any provisions
          for rent review contained in this Lease at convenient hours and on
          reasonable prior notice to enter and inspect and measure the Premises
          for all purposes connected with any pending or intended step under the
          Landlord and Tenant Act 1954 or the implementation of such provisions
          for rent review

                                     PART 4

                                  ENCUMBRANCES

DATE                  DOCUMENT                       PARTIES

28 August 1996     S106 Agreement      South Cambridgeshire District Council (1)
                                       Barclays Bank plc (2)
                                       The Welding Institute (3)
                                       TWI Estates Ltd (4)

10 June 1998       S106 Agreement      Cambridgeshire County Council (1)
                                       Granta Park Ltd (2)

11 June 1998       Supplemental        Cambridgeshire County Council (1)
                   Agreement           Granta Park Ltd (2)

14 November 1997   Deed of Grant       The Welding Institute (1)
                                       Granta Park Ltd (2)

23 December 1999   Deed of Variation   The Welding Institute (1)
                                       Granta Park Ltd (2)

                                   SCHEDULE 2

                                  RENT REVIEWS

6         The review dates

                                      -93-
<PAGE>

6.1       The Yearly Rent is to be reviewed on the expiry of the fifth year of
          the Term and at five yearly intervals thereafter and with effect on
          and from each such rent review date the reviewed rent (as agreed or
          determined in accordance with this Schedule) is to become payable as
          the Yearly Rent reserved by this Lease.

6.2       In this Schedule the expression "the review date" means in relation to
          each such review of rent the date of review pursuant to paragraph 1

7         Upward only rent reviews

7.1       The reviewed rent payable on and from the review date shall be the
          greater of:

7.2       the Yearly Rent reserved under this Lease immediately preceding the
          review date; and

7.3       the Review Percentage of (pound)X

          Where X = (A) x C
                    ---
                    (B)

          and

          A = the market rent for the Hypothetical Premises

          B = 50,000

          C = the Agreed Net Internal Area

8         The market rent

          For the purposes of this Lease, the expression "market rent" means the
          best yearly rent at which the Hypothetical Premises might reasonably
          be expected to be let in the open market by a willing landlord to a
          willing tenant after the expiry of a rent free period of such length
          as would be allowed for fitting out and for the receipt of

                                      -94-
<PAGE>

          such other inducements in lieu thereof as would be negotiated in the
          open market and on the assumption if not a fact, that:

8.1       the letting is:

8.1.1     with vacant possession;

8.1.2     or a term being the greater of the residue of the Term or ten years
          from the review date having a rent review in the same terms as this
          Lease at the expiry of each period of five years throughout the term;

8.1.3     without the payment of a premium by the willing tenant;

8.1.4     subject to terms similar to those of this Lease, other than the length
          of the term and the amount of rent, but including these provisions for
          rent review amended to exclude the reference to the Review Percentage;

8.2       the Hypothetical Premises:

8.2.1     are ready for occupation and immediate use by the willing tenant;

8.2.2     are in a state of full repair and the covenants of the Tenant and the
          Landlord in this Lease have been fully observed and performed; and

8.2.3     may lawfully be used for any purpose permitted by this Lease and/or as
          varied or extended by any license granted by the Landlord to the
          Tenant

8.2.4     have the benefit of all such rights as are granted by this lease and
          (to the extent that the value of the Hypothetical Premises is
          increased thereby) any licenses waivers and consents granted to the
          Tenant

8.3       in case the Premises have been destroyed or damaged the Hypothetical
          Premises have been fully reinstated (or rendered fit for use and
          occupation);

                                      -95-
<PAGE>

8.4       there is not in operation any statute order or instrument, regulation
          or direction which has the effect of regulating or restricting the
          amount of rent that the Landlord may collect or which may be
          chargeable in respect of the Hypothetical Premises;

8.5       the willing Tenant and anyone who may become the Tenant is a taxable
          person who makes only taxable supplies and no exempt supplies (words
          and expressions used in this paragraph 3.5 having the meanings
          assigned to them respectively in the Value Added Tax Act 1994 and the
          regulations made under that Act) and that demand for the Hypothetical
          Premises on the open market would not be reduced by reason of the
          Landlord having elected to waive exemption from value added tax in
          respect of them

9         Matters to be disregarded

          In agreeing or determining the market rent the effect upon it of the
          following matters are to be disregarded in so far as they may relate
          to the Hypothetical Premises:

9.1       the occupation of the Premises by the Tenant;

9.2       any goodwill attached to the Premises by reason of the carrying on at
          the Premises of the business of the Tenant;

9.3       any improvements to the Premises made by the Tenant (whether before or
          after the date of this Lease) with the consent of the Landlord other
          than those:

9.3.1     made in pursuance of an obligation to the Landlord;

9.3.2     completed by the Tenant more than twenty-one years before the review
          date; or

9.3.3     for which the Landlord has made a financial contribution (save in case
          of the Tenant's Fit Out Works);

                                      -96-
<PAGE>

9.4       the Tenant's Fit Out Works

9.5       any works carried out by the Tenant which has diminished the market
          rent; and

9.6       all references to the Review Percentage and in this paragraph 4
          reference to "the Tenant" includes any predecessors-in-title of the
          Tenant and any sub-tenants of the Premises or part thereof

9.7       any additional bid which may be made by a prospective tenant with a
          special interest

10        Procedure for determination of market rent

10.1      The Landlord and the Tenant shall endeavor to agree the market rent,
          and may do so at any time (not being earlier than twelve months before
          the review date), but if they have not agreed the market rent three
          months before the review date the amount of the market rent shall be
          determined by reference to an arbitrator ("the Surveyor")

10.2      The Surveyor shall be nominated by the Landlord and the Tenant
          jointly, but, if they cannot agree or do not do so, then he shall be
          nominated by the President for the time being of the Royal Institution
          of Chartered Surveyors on the application either of the Landlord or of
          the Tenant.

10.3      The reference to and award of the Surveyor shall be governed by the
          Arbitration Act 1996

10.4      The Surveyor must be a chartered surveyor having not less than five
          years' experience of leasehold valuation of property similar to the
          Hypothetical Premises and of property in the same region in which the
          Premises are situated

10.5      If the Surveyor refuses to act, becomes incapable of acting or dies,
          the Landlord or the Tenant may require the appointment of a substitute
          to be nominated in the same manner as provided in paragraphs 5.1 and
          5.2

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<PAGE>

10.6      If either party shall fail to pay its share of the Surveyor's fees and
          expenses within seven days of the same having been demanded the other
          party shall be entitled to pay such share and recover the cost from
          the defaulting party as a debt due on demand

11        Time limits

          Time is not of the essence in agreeing or determining the reviewed
          rent or appointing the Surveyor and delay in commencement of
          negotiations pursuant to paragraph 5.1 or nomination of the Surveyor
          pursuant to paragraphs 5.1 and 5.2 shall not in any way prejudice the
          right to have a rent review

12        Rental adjustments

12.1      If the market rent has not been agreed or determined in accordance
          with the provisions of this Schedule before the review date, then,
          until the market rent has been so agreed or determined, the Tenant
          will continue to pay on account rent at the rate of yearly rent
          payable immediately before the review date.

12.2      The Tenant will pay to the Landlord within seven days after the time
          that the market rent has been agreed or determined all arrears of the
          reviewed rent which have accrued in the meantime, with interest at the
          base rate of Lloyds TSB Bank PLC from time to time on each of the
          installments of the arrears from the time that it would have become
          due if the market rent had then been agreed or determined until
          payment becomes due from the Tenant to the Landlord under this
          paragraph 7.2

13        Memorandum of rent review

          The parties will cause a memorandum of the reviewed rent duly signed
          by the Landlord and the Tenant to be endorsed on or securely annexed
          to this Lease and the counterpart of this Lease

                                   SCHEDULE 3

                                      -98-
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                              INSURANCE PROVISIONS

1         INSURED RISKS

1.1       "Insured Risks" means the risks and other contingencies against which
          the Premises, or (where applicable) any building of which they form
          part, are required to be or are from time to time insured under this
          Lease, but subject to any exclusions limitations and conditions in the
          policy of insurance.

1.2       Insured Risks shall (subject to paragraph 1.3) include fire,
          lightning, explosion, storm, tempest, flood, bursting and overflowing
          of water tanks apparatus or pipes, earthquake, aircraft (but not
          hostile aircraft) and other aerial devices dropped from aircraft, riot
          and civil commotion, malicious damage terrorism and such other risks
          as the Landlord may consider it prudent to insure.

1.3       If a risk or contingency itemized, or otherwise included, as an
          Insured Risk, can no longer be insured or can only be insured at an
          uneconomic rate, the risk or contingency shall cease to be treated as
          an Insured Risk from the time that cover is withdrawn and the Landlord
          has notified the Tenant of its withdrawal.

2         TENANT'S LIABILITY FOR INSURANCE PREMIUMS

2.1       The Tenant will pay to the Landlord within fourteen days of demand the
          Insurance Premiums incurred by the Landlord or (where applicable) the
          due proportion of the Insurance Premiums

2.2       "Insurance Premiums" means all monies expended, or required to be
          expended, by the Landlord in affecting and maintaining cover against
          loss resulting from the Insured Risks including:

2.2.1     three years' loss of rent in respect of the Premises;

2.2.2     such professional fees as may be incurred in connection with
          rebuilding or reinstatement;

                                      -99-
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2.2.3     the costs of demolition, shoring up, and site clearance works;

2.2.4     third party and public liability risks; and

2.2.5     the costs of reinstatement of damage to the Premises

2.2.6     value added tax liability on such items (where applicable)

2.3       The insurance cover shall take into account cover for the effects of
          inflation and escalation of costs and fees, and the Landlord's
          estimate of the market rent of the Premises (as defined in Schedule 2)
          in the context of ensuing rent reviews and the termination of the
          Lease

3         TENANT'S OBLIGATIONS IN RELATION TO INSURANCE COVER

3.1       The Tenant will not do anything which may render void or voidable the
          insurance of the Landlord on the Premises or any neighboring or
          adjoining premises or which may cause insurance premiums to be
          increased.

3.2       The Tenant will provide efficient fire extinguishers of a type
          approved by the Landlord, and will adopt such other precautions
          against Insured Risks as the Landlord or its insurers may consider
          appropriate and/or as may be required by any competent authority

3.3       If the insurance of the Landlord is vitiated in whole or in part in
          consequence of an act or omission of the Tenant, persons occupying or
          enjoying the use of the Premises through or under the Tenant, or their
          respective employees workmen agents or visitors, the Tenant will pay
          to the Landlord on demand a sum equal to the amount of the insurance
          monies which have become irrecoverable in consequence of that act or
          omission

3.4       The Tenant may not insure the Premises for any of the Insured Risks in
          such a manner as would permit the insurer of the Landlord to average
          the proceeds of insurance or cancel insurance cover

                                     -100-
<PAGE>

3.5       The Tenant will notify the Landlord forthwith of the occurrence of
          damage to the Premises by any of the Insured Risks

3.6       If the Premises are damaged by Insured Risks, the Tenant will pay to
          the Landlord on demand the amount of any uninsured excess to which the
          insurance cover of the Landlord is subject or (where applicable) the
          due proportion of such excess

3.7       Save where payment is made pursuant to paragraph 3.3 hereof the
          obligations of the Tenant to repair and to yield up in repair the
          Premises are to remain operative to the extent that the insurance of
          the Landlord in respect of Insured Risks is vitiated or insurance
          monies are withheld by reason of an act or omission of the Tenant,
          persons occupying or enjoying the use of the Premises through or under
          the Tenant, or their respective employees workmen agents or visitors,
          but do not otherwise operate in respect of damage to the Premises by
          Insured Risks

4         LANDLORD'S OBLIGATION TO INSURE AND REINSTATE

4.1       The Landlord will keep the Premises insured with an insurer of repute
          against Insured Risks and other items referred to in paragraph 2.2 for
          the full cost of reinstatement, subject to such uninsured excess as
          the insurer may reasonably apply

4.2       Following the occurrence of damage to or destruction of the Premises
          by an Insured Risk, the Landlord will diligently apply, or procure the
          application of, the proceeds of the insurance covering reinstatement
          and rebuilding costs for those purposes, and will make any deficiency
          in the proceeds of the insurance out of its own resources

4.3       The obligations of the Landlord in paragraph 4.2 do not apply:

4.3.1     if the Landlord is unable, after using its reasonable endeavors to do
          so, to obtain any requisite planning permission or other consents for
          the reinstatement of

                                     -101-
<PAGE>

          rebuilding of the Premises or of a building of similar size character
          and amenity; or

4.3.2     if the Landlord's insurance is vitiated by reason of an act or
          omission of the Tenant, persons occupying or enjoying the use of the
          Premises through or under the Tenant or their respective employees
          workmen agents or visitors

4.4       Where the Premises are substantially damaged or destroyed, the Tenant
          may not object to the reinstatement or rebuilding of the Premises in a
          form which is not identical to the Premises immediately before the
          damage or destruction occurred if the Premises as reinstated or
          rebuilt are of equivalent or better standard, and afford amenities
          which are not inferior to or materially different from those enjoyed
          by the Tenant before the occurrence of the damage or destruction

5         LANDLORD'S OBLIGATIONS IN RELATION TO INSURANCE

5.1       The Landlord will use its reasonable endeavors to procure that its
          insurers waive entitlement to rights of subrogation against the
          Tenant, persons occupying or enjoying the use of the Premises through
          or under the Tenant, and their respective employees workmen agents or
          visitors

5.2       The Landlord will notify its insurers of the Tenant's interest in the
          Premises and, if practicable, have it noted on the policies of
          insurance

5.3       The Landlord will provide the Tenant with a copy of its insurance
          policies (or other evidence of the conditions of insurance) on the
          Premises, and at the request of the Tenant with a receipt for the
          payment of the last premium or other evidence of renewal and
          up-to-date details of the amount of cover

5.4       The Landlord will promptly notify the Tenant of any changes in its
          insurance cover or of the terms on which cover has been effected

                                     -102-
<PAGE>

5.5       The Landlord may retain for its exclusive benefit any discount on the
          insurance premiums or commission offered to it by its insurer

6         SUSPENSION OF RENT

6.1       Paragraph 6.2 applies if the Premises are at any time during the Term
          so damaged by an Insured Risk as to render the Premises or any part of
          them unfit for occupation use or enjoyment, except in the
          circumstances referred to in paragraph 4.3.2

6.2       The rent and additional rent reserved by this Lease, or a fair
          proportion of them according to the nature and extent of the damage
          sustained, is to be suspended and cease to be payable until the
          Premises (excluding fitting out works and replacement of contents)
          have been reinstated and made fit for occupation use and enjoyment or,
          if earlier, until the expiry of three years from the occurrence of the
          damage

6.3       A dispute as to the amount of the abatement of the rent or the
          duration of the period of abatement is to be submitted to an
          independent expert

7         OPTIONS TO DETERMINE

7.1       If for any reason beyond the control of the Landlord it proves
          impossible or impracticable to commence rebuilding or reinstatement of
          the Premises within two years of the occurrence of the damage by an
          Insured Risk, the Landlord may terminate this Lease by giving to the
          Tenant written notice to that effect

7.2       If the rebuilding or reinstatement of the Premises has not been
          commenced within two years after the occurrence of the damage by an
          Insured Risk or has not been completed within three years of such
          damage, the Tenant may give written notice to the Landlord of
          intention to terminate this Lease

                                     -103-
<PAGE>

7.3       The termination of this Lease under this paragraph 7 is not to affect
          any liability which has accrued at any time before the time of
          termination

8         RETENTION OF INSURANCE PROCEEDS

          On the termination of this Lease under paragraph 7, or if this Lease
          is terminated by the operation of the doctrine of frustration, the
          Landlord may retain for its exclusive benefit the proceeds of
          insurance.

                                   SCHEDULE 4

                            SERVICE CHARGE PROVISIONS

                                 PART I GENERAL

9         TENANT'S LIABILITY TO PAY SERVICE CHARGE

          The Tenant will pay to the Landlord by way of additional rent the due
          proportion (as defined below) of the total cost ("service charge")
          properly incurred by the Landlord in any service charge period
          beginning or ending during the Term in providing the services
          specified in Sections 2 and 3 of this Schedule and defraying the costs
          and expenses relating and incidental to such services together with
          the costs set out in Section 4 of this Schedule.

10        DEFINITION OF "DUE PROPORTION"

10.1      In this Schedule the expression "due proportion" means in relation to
          the service charge the proportion which is attributable to the
          Premises

10.2      The due proportion is to be a fair proportion and calculated primarily
          by reference to the ratio of the gross external area (as defined in
          the Measuring Code) of the Premises to the gross external area at any
          relevant time of the buildings forming part of the Estate (excluding
          for these purposes the buildings forming part of the Estate Amenities
          but including the Premises) Provided that for the purposes of such
          calculation during the first five years of the Term the gross external
          area of

                                     -104-
<PAGE>

          the buildings on the Estate shall be assumed to be no less than
          550,000 sq. ft and Provided Further that during the first year of the
          Term the due proportion payable by the Tenant shall not exceed a sum
          equivalent to(pound)0.50 per square foot of gross external area

10.3      If such comparison is inappropriate having regard to the nature of any
          expenditure incurred or the premises benefited by the expenditure or
          otherwise, the Landlord is at liberty in its discretion to adopt such
          other method of calculation of the due proportion of such expenditure
          (or item of expenditure) to be attributed to the Premises as may be
          fair and reasonable in the circumstances including if appropriate the
          attribution of the whole of such expenditure to the Premises

11        ADVANCE PAYMENT ON PRELIMINARY BASIS

11.1      The due proportion of the service charge is to be discharged by means
          of advance payments to be made on the same days upon which rent is
          payable under this Lease and by such additional payments as may be
          required under paragraphs 4 and 5

11.2      The amount of each advance payment is to be such amount as the
          Landlord may reasonably determine as likely to be equal in the
          aggregate to the due proportion of the service charge for the relevant
          service charge period and which is notified to the Tenant at or before
          the time when the demand for an advance payment is made

11.3      For the purpose of this Schedule "service charge period" means the
          period of twelve months from 1 October to 30 September in each year
          (or such other period as the Landlord may from time to time determine)

11.4      The service charge is to be treated as accruing on a day-to-day basis
          in order to ascertain yearly rates and for the purposes of
          apportionment in relation to periods other than of one year

                                     -105-
<PAGE>

12        SERVICE CHARGE ACCOUNTS AND ADJUSTMENTS

12.1      The Landlord will as soon as may be practicable after the end of each
          service charge period submit to the Tenant a statement duly certified
          (if so requested) by the Landlord's accountant or surveyor giving a
          proper summary of the service charge for the service charge period
          just ended

12.2      If the due proportion of the service charge as certified is more or
          less than the total of the advance payments (or the grossed-up
          equivalent of such payments if made for any period of less than the
          service charge period), then any sum due to or payable by the Landlord
          by way of adjustment in respect of the due proportion of the service
          charge is forthwith to be paid or allowed as the case may be

12.3      The provisions of this paragraph are to continue to apply
          notwithstanding the termination of this Lease in respect of any
          service charge period then current

12.4      The Tenant is entitled to inspect and (at the Tenant's cost) take
          copies of the service charge records and the invoices receipts
          estimates and vouchers of the Landlord at such location as the
          Landlord may reasonably appoint for the purpose during normal working
          hours on weekdays

13        EXCEPTIONAL EXPENDITURE

13.1      If the Landlord is required during any service charge period to incur
          heavy or exceptional expenditure which forms part of the service
          charge, the Landlord is to be entitled to recover from the Tenant the
          due proportion of the service charge representing the whole of that
          expenditure on the quarter day next following

13.2      If funds collected by way of advance payments of service charge prove
          insufficient to meet an immediate liability, (and there is no reserve
          fund available, or which may be applied, to meet the liability, and
          the circumstances arose otherwise than as mentioned in paragraph 9.1)
          the Landlord is to be entitled to borrow monies for the purpose from
          reputable banks at commercially competitive

                                     -106-
<PAGE>

          rates of interest, and the interest payable on the borrowing shall be
          recoverable as an item of the service charge

14        SINKING FUNDS AND RESERVES

14.1      With a view to securing so far as may reasonably be practicable that
          the service charge should be progressive and cumulative rather than
          irregular and that tenants for the time being shall bear a proper part
          of accumulating liabilities which accrue in the future the Landlord is
          entitled to include as an item of service charge for any service
          charge period an amount which the Landlord reasonably determines is
          appropriate to build up and maintain a sinking fund and a reserve fund
          in accordance with the principles of good estate management

14.2      Any such sinking fund is to be established and maintained on normal
          commercial principles for the renewal and replacement of plant
          machinery and equipment

14.3      Any such reserve fund is to be established and maintained to cover
          prospective and contingent costs of carrying out repairs decoration
          maintenance and renewals and of complying with statutes by-laws
          regulations of all competent authorities and of the insurers in
          relation to the use occupation and enjoyment of the Estate

15        ADVANCE PAYMENTS DEPOSIT ACCOUNT

15.1      This paragraph applies to such part of the monies ("relevant monies")
          paid by the Tenant and other tenants and occupiers of the Estate by
          way of service charge as for the time being has not been disbursed in
          payment of the costs and expenses of providing services

15.2      The Landlord will keep the relevant monies in a separate trust account
          until and to the extent that they may be required for disbursement
          then or in the then immediate future in payment of the costs and
          expenses of providing services

                                     -107-
<PAGE>

15.3      Interest earned upon such account (less any tax payable) is to be
          credited to the account at regular rests in each year

15.4      Until actual disbursement the relevant monies are to be held by the
          Landlord for the benefit of the tenants and occupiers of the Estate as
          a class but on the basis that no tenant shall be entitled to receive
          payment of any part thereof upon the termination of its lease

16        LANDLORD'S PROTECTION PROVISIONS

          The Tenant is not entitled to object to the service charge (or any
          item comprised in it) or otherwise on any of the following grounds:

16.1      the inclusion in a subsequent service charge period of any item of
          expenditure or liability omitted from the service charge for any
          preceding service charge period;

16.2      an item of service charge included at a proper cost might have been
          provided or performed at a lower cost; or

16.3      disagreement with any estimate of future expenditure for which the
          Landlord requires to make provision so long as the Landlord has acted
          reasonably and in good faith and in the absence of manifest error; or

16.4      the manner in which the Landlord exercises its discretion in providing
          services so long as the Landlord acts in good faith and in accordance
          with the principles of good estate management; or

16.5      the employment of managing agents to carry out and provide on the
          Landlord's behalf services under this Part of this Schedule

17        VACANT PARTS OF THE ESTATE AND ACTIONS BY THE LANDLORD

17.1      The due proportion of the service charge may not be increased or
          altered by reason only that at any relevant time any building or
          buildings forming part of the

                                     -108-
<PAGE>

          Estate may be vacant or be occupied by the Landlord or that any other
          tenant or occupier may default in payment of, or be required to pay
          less than, the due proportion of the service charge attributable to
          that part

17.2      The Landlord shall not recover or seek to recover from the Tenant
          whether as part of the service charge or otherwise any costs incurred
          in the remedying of any defects in the Estate Amenities or of any want
          of repair caused by any such defect where such costs are recoverable
          from any other party nor any costs incurred in connection with any
          upgrade of electricity supply to the Estate as a result of the initial
          construction and occupation of any building thereon.

17.3      If the Landlord is entitled to recover monies representing expenditure
          which has been or which would otherwise fall to be included in the
          service charge, the Landlord shall use all reasonable endeavors to
          recover the same and will set off or credit such monies against the
          service charge accordingly

18        SERVICE CHARGE TO EXCLUDE TENANTS' LIABILITIES

          There is to be excluded from the items comprising the service charge
          any liability or expense for which the Tenant or other tenants or
          occupiers of premises within the Estate may individually be
          responsible under the terms of the tenancy or other arrangement by
          which they use or occupy such premises

19        MANAGEMENT CHARGES

          The Landlord is entitled to include in the service charge:

19.1      a reasonable fee for the provision of services where these are managed
          or supplied directly by the Landlord but not exceeding 15% of the
          service charge;

19.2      the proper cost of employing managing agents for the carrying out and
          provision of services under this Schedule not exceeding 10% of the
          service charge or when aggregated with fees referred to in paragraph
          11.1 hereof 15%; and

                                     -109-
<PAGE>

19.3      the reasonable fees of the accountants or auditors for auditing the
          service charge or providing other services in connection with the
          service charge

20        THE LANDLORD'S OBLIGATION TO PROVIDE SERVICES

20.1      Subject to the payment of the due proportion of the service charge by
          the Tenant in the manner required and at the time required under this
          Lease and to the following provisions of this paragraph, the Landlord
          will provide the services specified in Part 2 of this Schedule and may
          provide the services specified in Part 3 of this Schedule

20.2      The Landlord is not to be liable to the Tenant for failure to provide
          any services in Part 2 of this Schedule to the extent that the
          Landlord is prevented from doing so by Insured Risks and other such
          perils, accident, strikes, lockouts of workmen or other cause beyond
          the Landlord's control Provided that the Landlord uses all reasonable
          endeavors to restore the services as soon as possible

20.3      The Landlord is not under any obligation to the Tenant to provide or
          to continue the provision of the services specified in Part 3 of this
          Schedule and may in its absolute discretion following reasonable prior
          notice to the Tenant vary extend alter or add to such services if the
          Landlord considers that by so doing the amenities in the Estate may be
          more efficiently conducted

                  PART 2 ESSENTIAL SERVICES AND HEADS OF CHARGE

21        The provision and carrying out by or on behalf of the Landlord of such
          services as are in the reasonable opinion of the Landlord:

21.1      Necessary for the maintenance repair upkeep renewal insurance
          management cleanliness of and (where applicable) the reasonable and
          necessary replacement of:

21.1.1    Items of plant and equipment and their constituent parts comprised in
          the Estate

                                     -110-
<PAGE>

21.1.2    The conducting media in or under or otherwise serving the Estate

21.1.3    The Estate Amenities or

21.2      Required for the provision of such security arrangements for the
          Estate including (without limitation) the engagement of security
          officers and services as is in the interests of good estate management

22        The insurance of the Estate Amenities against third party liabilities
          and such other risks as the Landlord considers reasonable in the
          interests of good estate management

23        Providing or procuring the provision of the following services to the
          extent necessary or desirable for the benefit of the tenants of the
          Estate and in the interests of good management:

23.1      Lighting of the Estate Amenities

23.2      The cultivation and planting of any planted or grassed areas of the
          Estate Amenities together with the maintenance repair and cultivation
          of any water feature at any time within the Estate Amenities

23.3      The provision of nameboards and signs on the Estate

                PART 3 DISCRETIONARY SERVICES AND HEADS OF CHARGE

1.        The provision of fire alarm and prevention and fire fighting equipment
          and water and fire hydrants on any part of the Estate

2.        The provision of such traffic control measures as the Landlord
          reasonably considers to be appropriate in the interests of good estate
          management

3.        The maintenance and provision of suitable refuse facilities within the
          Estate Amenities and the collection and removal of refuse

4.        The provision of such other services or amenities for the benefit of
          the tenants owners and occupiers of the Estate as the Landlord
          reasonably considers to be appropriate in the interests of good estate
          management

                                     -111-
<PAGE>

              PART 4 COSTS TO BE INCLUDED WITHIN THE SERVICE CHARGE

1.        All rates taxes and other outgoings (including electricity gas and
          telephone and telecommunication charges) payable by the Landlord in
          respect of the Estate Amenities

2.        The expenses of complying with all statutory requirements and the
          requirements of any competent authority in respect of the Estate
          Amenities

3.        The cost of insuring against the Insured Risks such parts of the
          Estate Amenities as the Landlord considers prudent and in the
          interests of good estate management but excluding costs which are
          recoverable pursuant to Schedule 3 hereof

4.        The expenses of preparing making and recovering any insurance claim in
          respect of the Estate Amenities including the fees of any loss
          adjuster and assessor and the cost of obtaining any valuation for the
          purpose of assessing the value for insurance of the Estate Amenities
          not more than once in every two years and provided that such expenses
          shall not be recoverable pursuant to Schedule 3 hereof

5.        The cost of taking of all steps reasonably deemed desirable or
          expedient by the Landlord for complying with making representatives
          against or otherwise contesting the incidence of the provision of any
          regulation bye law notice legislation order or statutory requirements
          relating to town planning public health highways street drainage or
          other matters relating or alleged to relate to the Estate or any part
          of it

6.        The cost of any irrecoverable value added tax charged in respect of
          any of the items forming part of the service charge

7.        Subject to the provisions of paragraph 5.2 of Part I of this Schedule
          any interest charges incurred on expenditure not covered by advance
          payments of the service charge

8.        Subject to the provisions of paragraph 11 of Part I of this Schedule
          the proper fees and expenses payable to managing agents contractors
          surveyors valuers; architects engineers accountants solicitors and
          other professional persons in connection with the general management
          of the Estate and/or maintenance thereof and the payment of all proper
          fees charges salaries expenses and commissions payable to them
          including the payment of the fees and expenses incurred by the
          Landlord in preparing accounts of the service charge for each year and
          having such accounts audited by an accountant

9.        Subject to the provisions of paragraph 11 of Part I of this Schedule
          the payment of a proper annual management charge in respect of the
          management of the Estate and the collection of the rents and other
          sums due to the Landlord but excluding costs incurred as a result of
          any tenant's default

10.       The cost of the supply of electricity gas oil or other fuel for the
          provision of the services and for all purposes in connection with the
          Estate Amenities together with the cost of reading meters and
          assessing any such charges

                                     -112-
<PAGE>

11.       The amount which the Landlord shall be called upon to pay as a
          contribution towards the cost of repairing maintaining rebuilding or
          cleansing any ways roads pavements structures conducting media party
          walls or fences or anything which may be used by the Estate in common
          with any other land near to or adjoining the same

12.       All other costs and expenses reasonably and properly incurred in the
          general maintenance and management of the Estate for the benefit of
          the tenants owners and occupiers thereof from time to time and in
          accordance with the principles of good estate management

                                   SCHEDULE 5

                     PART I FORM OF GUARANTEE ON ASSIGNMENT

24        GUARANTEE

24.1      The Guarantor[s] jointly and severally] guarantee[s] to the Landlord
          that the Tenant will pay the rents reserved by and perform and observe
          all the Tenant's covenants in this Lease throughout the Term and the
          Guarantor[s] will pay and make good to the Landlord on demand any
          losses damages costs and expenses suffered or incurred by the Landlord
          by reason of any failure of the Tenant to do so

24.2      This guarantee is to take effect immediately on the assignment of the
          Lease to the Tenant and is to remain in force for so long as and to
          the extent that the Tenant is not released by law from liability for
          the Tenants covenants in the Lease

24.3      In the context of these guarantee provisions, references to the Tenant
          are to the assignee only (in its capacity as Tenant) with respect to
          whom the guarantee is given

25        NO WAIVER OR RELEASE OF LIABILITY

          The Guarantor[s] is not to be released from liability under these
          provisions by reason of:

25.1      any forbearance the granting of time or any other indulgence on the
          part of the Landlord, including (but without affecting the general
          operation of this paragraph 2)

                                     -113-
<PAGE>

          any granting or extension of time under or varying the procedure set
          out in Schedule 2, paragraph 5; or

25.2      any variation of this Lease, whether or not made with the consent of
          the Guarantor[s], and the guarantee of the Guarantor[s] in paragraph 1
          is to operate in relation to this Lease as it may be varied from time
          to time

26        GUARANTOR[S] TO ACCEPT NEW LEASE UPON DISCLAIMER

26.1      If this Lease is effectively determined by disclaimer, the
          Guarantor[s] shall, if the Landlord by notice within three months
          after the date of determination so requires, take from the Landlord a
          lease of the Premises

26.2      The lease to be granted to the Guarantor[s] under paragraph 3.1 is to
          be on the following terms:

26.2.1    the term is to commence on the date of termination of this Lease and
          to be equal to the residue of the Term which would have remained
          unexpired at the date if this Lease had not then been terminated

26.2.2    the yearly rent is to be the same as would have been payable under
          this Lease if it had continued and, if a rent review operative from a
          review date before the grant of the lease has not been completed, the
          Guarantor[s] will complete the rent review as if it had been the
          Tenant under this Lease in order to establish the commencing yearly
          rent under the lease

26.2.3    the lease is otherwise to be on the same terms and conditions as would
          have applied under this Lease if it had continued undetermined; and

26.2.4    the Guarantor[s] [is] [are] to succeed to the rights and assume the
          liability of the Tenant under this Lease as if the Lease had continued
          undetermined

26.2.5    the Guarantor[s] [is] [are] to pay the Landlord's solicitors' charges
          relating to the grant of the lease

                                     -114-
<PAGE>

26.3      If the Landlord shall not require the Guarantor to take up a lease of
          the Premises pursuant to clause 3.1 the Guarantor shall nevertheless
          upon demand pay to the Landlord a sum equal to the rent and all other
          payments that would have been payable under this lease but for the
          determination or disclaimer in respect of the period from the date
          thereof until the expiry of six months from that date or until the
          Premises have been relent by the Landlord (and any rent-free period
          has expired) whichever shall first occur

             PART 2 CRITERIA TO BE SATISFIED BY A PROPOSED ASSIGNEE

26.4      The proposed assignee is to be of required status, meaning that at the
          time that the application for the consent of the Landlord to the
          proposed assignment is made all the following criteria are met:

26.5      Its financial standing is in the reasonable opinion of the Landlord
          sufficient to enable it to perform the current and future obligations
          on the part of the Tenant under this Lease and if the Tenant disputes
          the Landlord's opinion then the matter shall be referred to the
          determination of an independent expert

26.6      The release by law of the Tenant from the Tenant's covenants in this
          Lease and the vesting of this Lease in the proposed assignee would not
          result in a diminution in the capital value of the reversion to this
          Lease of more than 0.5%:

26.6.1    the Landlord is entitled to withhold consent to the proposed
          assignment on this ground if in its opinion, this would be the case,
          but

26.6.2    the Tenant may object to the Landlord's decision and require the issue
          to be submitted to an independent expert.

27        The proposed assignee will be of required status if it is able to
          procure a surety who meets the criteria in paragraph 1 above and who
          enters into a direct covenant with the Landlord in the license to
          assign in the terms set out in Part 1 of this Schedule

                                     -115-
<PAGE>

28        A UK Government department, nationalized industry or public utility
          company to which the Tenant proposes to assign this Lease is to be
          treated as being of required status

                                   SCHEDULE 6

                           THE TENANT'S FIT OUT WORKS

            [TO INCORPORATE THE SCHEDULE OF TENANT'S FIT OUT WORKS AS
             AGREED PURSUANT TO CLAUSE 3 OF THE AGREEMENT FOR LEASE]

                                     -116-
<PAGE>

                                   SCHEDULE 7

                              ASSUMED SPECIFICATION

                                     -117-
<PAGE>

                         MILLENNIUM PHARMACEUTICALS LTD
                               PLOT 15 DEVELOPMENT

                              ASSUMED SPECIFICATION

                                                                      30/01/2001

A.       INTRODUCTION

This schedule describes the specification of the hypothetical premises that will
provide the basis for rent review for Millennium Pharmaceuticals Ltd development
on Plot 15 of Granta Park.

The hypothetical premises comprise a two-story office building of commercial
quality, located on Plot 15 of Granta Park (see Plan 2 for location). The
premises should be assumed to have been completed in November 2002.

The hypothetical premises have two cores, each served by a lift and male and
female toilets. The reception area will comprise 1,100 sq. ft and the offices
48,900 sq. ft. These areas are net internal areas measured in accordance with
the code of measuring practice (4th edition) published by the Royal Institution
of Chartered Surveyors.

The detailed hypothetical specification is set out in three further parts below,
each part dealing respectively with:

i)        External and internal finishes; and

ii)       Key design parameters.

B.        EXTERNAL FINISHES

External finishes will conform with the Granta Park Design Guide (wherever
referred to this means the edition in force on 26/01/2001).

The building will be clad in coated aluminum (Luxalon Quadroclad system)
incorporating areas of stone or brick with windows and feature curtain walling.

Parking areas will be permeable block paving to both roadways and parking bays.

Footpaths will be bound gravel.

Islands will be grassed and planted with trees.

External lighting will be in accordance with Granta Park Design Guide.

C.        INTERNAL FINISHES

ENTRANCE AREAS
Floor:                       Natural stone with recessed entrance mat.
Walls:                       Emulsion paint on plaster or dry lining.
Skirtings and architraves:   Stained hardwood.
Doors:                       Fire rated self closing solid core maple veneered
                             leaves with matching solid sectioned door frames
                             and architraves.
Ironmongery:                 Brushed stainless steel from the D-line range by
                             Allgoods or similar.
Ceilings:                    Demountable suspended metal system.
Reception desk:              Bespoke maple finish reception desk or similar.

                                     -118-
<PAGE>

TOILETS
Floors:                      Domus G800 matt 300 x 300 x 9 tiles, or similar,
                             with coved edging.
Walls:                       Eggshell paint on plastered blockwork or concrete;
                             surface fixed mirrors.
Doors:                       Fire rated self closing solid core maple veneered
                             leaves with matching solid sectioned door frames
                             and architraves.
Ironmongery:                 Brushed stainless steel from the D-line range by
                             Allgoods or similar.
Ceilings:                    Demountable suspended metal system.
Sanitary Ware:               White Armitage Shanks or similar, basins to have
                             tile spashbacks.
Ancillary:                   Soap dispensers, hand driers, toilet roll holders.
OFFICES
Floors:                      Hewetson RMG (fully metal encased) or similar
                             raised floor system; 600 x 600 medium grade carpet
                             tiles.
Walls:                       Emulsion painted plaster or dry lining.
Skirtings and window         Stained hardwood.
boards:
Ceiling:                     Demountable suspended metal system.
MAIN STAIRS
Floor:                       Natural stone at ground floor level; carpet tiles
                             with nosings on treads and landings.
Walls:                       Emulsion paint on dry lining or plastered
                             blockwork.
Ceiling: :                   Demountable suspended metal system.
Doors:                       Fire rated self closing solid core maple veneered
                             leaves with matching solid sectioned door frames
                             and architraves.
Ironmongery                  Brushed stainless steel from the D-line range by
                             Allgoods or similar.

D.       Key Design Parameters

--------------------------------------------------------------------------------
                                                 Proposed Design Parameter
--------------------------------------------------------------------------------
KEY DESIGN PARAMETERS
--------------------------------------------------------------------------------
Site Density (% of site area)                    40%
--------------------------------------------------------------------------------
Parking (per ms GEA)                             1:24
--------------------------------------------------------------------------------
Landscaping (% of site area)                     25%+/-
--------------------------------------------------------------------------------
Floor plate efficiency (NINGIA %)                89%
--------------------------------------------------------------------------------
Building plan depth (m)                          15.0
--------------------------------------------------------------------------------
Column grid (m)                                  7.5
--------------------------------------------------------------------------------
Planning grid (m)                                1.5 x 1.5
--------------------------------------------------------------------------------
Occupancy for means of escape (person:ms)        1:6
--------------------------------------------------------------------------------
CORE ELEMENTS
--------------------------------------------------------------------------------
WC provision (per ms GIA)                        To Building Regs at Jan 2001
--------------------------------------------------------------------------------
male/female ratio                                50/50%
--------------------------------------------------------------------------------
LIFTS
--------------------------------------------------------------------------------
Passenger lifts calcs (per ms GIA)               1:14
--------------------------------------------------------------------------------
Size                                             13 person
--------------------------------------------------------------------------------

                                     -119-
<PAGE>

--------------------------------------------------------------------------------
BUILDING SECTION
--------------------------------------------------------------------------------
Ceiling/lighting zone (mm o/a)                   100 o/a
--------------------------------------------------------------------------------
Services zone (mm o/a)                           500 o/a
--------------------------------------------------------------------------------
Ceiling void (mm o/a)                            600
--------------------------------------------------------------------------------
Floor to ceiling height (mm)
--------------------------------------------------------------------------------
Office areas                                     2700
--------------------------------------------------------------------------------
WC'S                                             2400
--------------------------------------------------------------------------------
Reception                                        2700
--------------------------------------------------------------------------------
Raised floor                                     150
--------------------------------------------------------------------------------
Ceiling tile module (mm)                         600
--------------------------------------------------------------------------------
Raised floor tile module (mm)                    600
--------------------------------------------------------------------------------
STRUCTURAL SYSTEMS
--------------------------------------------------------------------------------
LOADINGS
--------------------------------------------------------------------------------
Ground/upper floors
--------------------------------------------------------------------------------
Live load (kN/ms)                                3.0
--------------------------------------------------------------------------------
Plant room & special high load areas             7.5
(5% of GIA) (kN/ms)
--------------------------------------------------------------------------------
Demountable partitions (kN/ms)                   1.0
--------------------------------------------------------------------------------
Raised floors, ceilings & services (kN/ms)       0.85
--------------------------------------------------------------------------------
Staircases                                       4.0
--------------------------------------------------------------------------------
ENVELOPE THERMAL INSULATION                      TO BUILDING REGS AT JAN 2001
--------------------------------------------------------------------------------
BUILDING SERVICES
--------------------------------------------------------------------------------
ELECTRICAL
--------------------------------------------------------------------------------
Small power offices (W/ms)                       15
--------------------------------------------------------------------------------
Upgradeable to (W/ms)                            25
--------------------------------------------------------------------------------
Rising busbars (W/ms)                            25
--------------------------------------------------------------------------------
Spare ways                                       25%
--------------------------------------------------------------------------------
Lighting (W/ms)                                  12
--------------------------------------------------------------------------------
Mechanical
--------------------------------------------------------------------------------
Controls/BMS                                     Yes
--------------------------------------------------------------------------------
Water Storage (litres/pers/day)                  25-30 (200 litres per wc)
--------------------------------------------------------------------------------
Gas supply                                       To heating plant only
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
KEY PERFORMANCE CRITERIA
--------------------------------------------------------------------------------
COMFORT
--------------------------------------------------------------------------------
Control zoning_- perimeter (m)                   6 x 4.5
--------------------------------------------------------------------------------
Control zoning - internal (m)                    50
--------------------------------------------------------------------------------
TEMPERATURES
--------------------------------------------------------------------------------
WINTER
--------------------------------------------------------------------------------
External - minimum design temp ((DEG.)C)            -4
--------------------------------------------------------------------------------
Internal conditions (95% occupied hours)
--------------------------------------------------------------------------------
Offices ((DEG.)C)                                   22+/-2
--------------------------------------------------------------------------------
Reception, WC, common areas ((DEG.)C)               20+1-2
--------------------------------------------------------------------------------
SUMMER
--------------------------------------------------------------------------------
External - maximum design temp ((DEG.)C)            28
--------------------------------------------------------------------------------
Internal conditions (95% occupied hours)
--------------------------------------------------------------------------------

                                     -120-
<PAGE>

--------------------------------------------------------------------------------
Offices ((DEG.)C)                                   24+/-2
--------------------------------------------------------------------------------
Reception, WC, common areas ((DEG.)C)               24+/-2
--------------------------------------------------------------------------------
LIGHTING
--------------------------------------------------------------------------------
ILLUMINANCE LEVELS (LUX)
--------------------------------------------------------------------------------
Offices                                          450
--------------------------------------------------------------------------------
Reception                                        200
--------------------------------------------------------------------------------
Stairs/lobbies                                   200
--------------------------------------------------------------------------------
Toilets                                          200
--------------------------------------------------------------------------------
Lift car                                         200
--------------------------------------------------------------------------------
External car park                                15-20
--------------------------------------------------------------------------------
External roadways                                15-20
--------------------------------------------------------------------------------
Internal reflectors                              Category 20
--------------------------------------------------------------------------------
Internal fittings control gear                   High frequency
--------------------------------------------------------------------------------
FRESH AIR SUPPLY
--------------------------------------------------------------------------------
Offices (litres/sectperson)                      8
--------------------------------------------------------------------------------
Toilets (change/hour)                            10
--------------------------------------------------------------------------------
Common areas (litres/sec/person)                 8
--------------------------------------------------------------------------------
Humidity control                                 No
--------------------------------------------------------------------------------
AIR EXTRACTION
--------------------------------------------------------------------------------
Toilets (changes / hour)                         10
--------------------------------------------------------------------------------
Internal acoustics
--------------------------------------------------------------------------------
Building services noise
--------------------------------------------------------------------------------
Common areas & toilets (NR)                      40
--------------------------------------------------------------------------------
OPEN PLAN OFFICES (NR)                           38
--------------------------------------------------------------------------------
Other services
--------------------------------------------------------------------------------
Access control                                   By tenant
--------------------------------------------------------------------------------
CCTV                                             By tenant
--------------------------------------------------------------------------------
Security alarms                                  By tenant
--------------------------------------------------------------------------------
Fire Protection                                  Level 2
--------------------------------------------------------------------------------
Air Filtration                                   EU6
--------------------------------------------------------------------------------

                                     -121-
<PAGE>

THE COMMON SEAL of GRANTA              )
PARK LIMITED was affixed in the        )
presence of:                           )

         Director

         Secretary

                                     -122-
<PAGE>

THE COMMON SEAL of MILLENNIUM          )
PHARMACEUTICALS LIMITED was            )
affixed in the presence of:            )

                  Director

                  Secretary

SIGNED as a Deed by MILLENNIUM         )
PHARMACEUTICALS INC acting by          )
                                       )
its duly authorized signatory:         )

                  Authorized Signatory

                                     -123-
<PAGE>

                                              DRAFT LEASE - Plot 12

                                     -124-
<PAGE>

                                   SCHEDULE II
                                  ENCUMBRANCES

DATE                DOCUMENT                       PARTIES

28 August 1996   S106 Agreement      South Cambridgeshire District Council (1)
                                     Barclays Bank plc (2)
                                     The Welding Institute (3)
                                     TWI Estates Ltd (4)

10 June 1998     S106 Agreement      Cambridgeshire County Council (1)
                                     Granta Park Ltd (2)

11 June 1998     Supplemental        Cambridgeshire County Council (1)
                 Agreement           Granta Park Ltd (2)

14 November      Deed of Grant       The Welding Institute (1)
1997                                 Granta Park Ltd (2)

23 December      Deed of Variation   The Welding Institute (1)
1999                                 Granta Park Ltd (2)

                                     -125-
<PAGE>

                                  SCHEDULE III
                       OUTLINE SPECIFICATION OF THE WORKS

                                     -126-
<PAGE>

                                   SCHEDULE IV
             FORM OF LANDLORD'S MANAGEMENT CONTRACT WITH THE FORM OF
                MANAGEMENT CONTRACTOR'S WARRANTY AND THE FORM OF
                            SUB-CONTRACTORS WARRANTY

                                     -127-
<PAGE>

                                   SCHEDULE V
                          FORM OF CONSULTANT'S WARRANTY

                                     -128-
<PAGE>

                                   SCHEDULE VI
                        EXTRACT OF DRAFT INSURANCE POLICY

                                     -129-
<PAGE>

                                  SCHEDULE VII
                        FORM OF CONSULTANT'S APPOINTMENT

                                     -130-
<PAGE>

                                  SCHEDULE VIII
                         ALTERNATIVE PROCUREMENT METHOD

33        The provisions of this Schedule shall only apply in the circumstances
          provided for in clause 7.4 of this Agreement

34        In this Schedule where the context allows:-

34.1      "Building Contracts" means the trade contracts in the form of the
          draft trade contract contained in Part 1 of Annexure A for the
          carrying out of the Works and all documents drawings and plans
          supplemental thereto

34.2      "Construction Management Agreement" means the appointment of the
          construction manager in the form of the draft contained in Part 2 of
          Annexure A

34.3      "Construction Manager" means Glanville Projects Limited of
          CorinthianCourt 80 Milton Road Abington Oxford OX14 4RY or such other
          firm or company of construction managers as may be appointed by the
          Landlord in connection with the Development and approved by the Tenant
          such approval not to be unreasonably withheld or delayed

34.4      "Consultants" means the Design Consultant the Planning Supervisor and
          the Construction Manager

34.5      "Design Consultant" means Bovis Lendlease Pharmaceuticals Limited

34.6      "Planning Supervisor" means Glanville Consultants Limited of Porters
          Wood House Porters Wood St Albans Hertfordshire or such other firm or
          company of planning supervisors as may be appointed by the Landlord in
          connection with the Development and approved by the Tenant such
          approval not to be unreasonably withheld or delayed

<PAGE>

34.7      "Trade Contractor" means any trade contractor employed by the Landlord
          to undertake any works packages for the carrying out of Works and
          approved by the Tenant such approval not to be unreasonably withheld
          or delayed

35        The Landlord will appoint the Construction Manager pursuant to the
          Construction Management Agreement

36        The Landlord will let the Building Contracts to the Trade Contractors
          substantially in the form of the draft contract contained in Part 1 of
          Annexure A such contracts to be duly executed under seal

37        The Landlord shall procure duly executed warranties under seal in
          favour of the Tenant substantially in the form of the drafts contained
          in Part 3 of Annexure A by the Trade Contractors carrying out the
          works packages specified in Part 4 of Annexure A

38        Duly executed warranties under seal in favour of the Tenant in the
          form or substantially in the form of the relevant drafts contained in
          Part 5 of Annexure A from the Consultants to the extent not already
          supplied pursuant to clause 10

39        The Landlord will use all reasonable endeavours to procure that the
          Consultants appointments and warranties shall provide for professional
          indemnity insurance in the sum of (pound)5m for the consultants and in
          respect of the Trade Contractor's warranties in the sums specified in
          Annexure A Part 4

40        The Landlord and the Tenant shall co-operate with each other in any
          proceedings taken by either party to enforce the respective rights
          against the

<PAGE>

          Consultants in accordance with the above provisions and shall if
          reasonably so required join in as party to such action

41        The Landlord shall use all reasonable endeavours to enforce the
          obligations of the relevant Trade Contractor or Trade Contractors

42        Save in so far as expressly varied by the foregoing provisions of this
          Schedule the provisions of clauses 1.48 1.53 7 10 and 14 of this
          Agreement shall continue to apply save that any reference in those
          clauses to the Management Contractor the Consultants the Management
          Contract and Sub-Contractors shall be deemed to refer in each case (as
          appropriate) to the Construction Manager the Construction Management
          Agreement the Consultants the Building Contracts and the Trade
          Contractors as defined in this Schedule

[NB ANNEXURE A TO BE A LEVER ARCH FILE OF DRAFT DOCUMENTS INCORPORATING:-

43        Draft Trade Contract

44        Draft Construction Management Agreement

45        Draft Trade Contractor's Warranty

46        List of works packages in respect of which trade contractors
          warranties required

47        draft consultants's warranty]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]