Document:

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                                                                  EXHIBIT 4.1

                                 CELESTICA INC.

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                            LONG TERM INCENTIVE PLAN

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                                  June 28, 1998

                    As amended and restated on April 17, 2002

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                                 CELESTICA INC.

                            LONG TERM INCENTIVE PLAN

                                     PART I

1.       PURPOSE
         -------

1.1      This Long Term Incentive Plan has been established by the Company to
provide  incentives  to  certain  of  its  employees  and  consultants  and  its
directors,  to foster a  responsible  balance  between  short term and long term
results,  and  to  build  and  maintain  a  strong  spirit  of  performance  and
entrepreneurship.

2.       PLAN DEFINITIONS AND INTERPRETATIONS
         ------------------------------------

2.1      In this Long Term Incentive Plan, the following terms have the
following meanings:

   (a)   "Applicable Law" means any applicable provision of law, domestic or
         foreign, including, without limitation, the SECURITIES ACT (Ontario),
         the U.S. SECURITIES ACT OF 1933, as amended, and the U.S. SECURITIES
         EXCHANGE ACT 1934, as amended, together with all regulations, rules,
         policy statements, rulings, notices, orders or other instruments
         promulgated thereunder and Stock Exchange Rules;

   (a.1) "Associate" means an associate as defined by the SECURITIES ACT
         (Ontario);

   (b)   "Beneficiary" means any person designated by the Participant by written
         instrument filed with the Company to receive any amount, securities or
         property payable under the Plan in the event of a Participant's death
         or, failing any such effective designation, the Participant's estate;

   (c)   "Board" means the Board of Directors of the Company;

   (d)   "Change in Control" means the occurrence of any of the following after
         the date hereof:

           (i)    the acquisition by any person of beneficial ownership of
                  securities of the Company which, directly or following
                  conversion or exercise thereof, would entitle the holder
                  thereof to cast more than 50% of the votes attaching to all
                  securities of the Company which may be cast to elect directors
                  of the Company, other than the additional acquisition of
                  securities by a person beneficially owning such number of
                  securities on the date hereof; or

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           (ii)   Incumbent Directors ceasing to constitute a majority of the
                  Board as a consequence of the solicitation of proxies through
                  a proxy circular by persons other than management;

   (e)   "Committee" means the committee of the Board, as constituted from time
         to time, which may be appointed by the Board to, INTER ALIA, interpret,
         administer and implement the Plan, and includes any successor committee
         appointed by the Board for such purposes;

   (f)   "Company" means Celestica Inc. and its respective successors and
         assigns, and any reference in the Plan to action by the Company means
         action by or under the authority of the Board or any person or
         committee that has been designated for the purpose by the Company
         including, without limitation, the Committee;

   (g)   "Consultant" means a consultant as defined in the Rule excluding
         investor consultants and associated consultants as defined in the Rule;

   (h)   "Date of Grant" of an Option, a Right or a Performance Unit, as the
         case may be, means the date the Option, Right or Performance Unit is
         granted to a Participant under the Plan;

   (i)   "Designated Affiliated Entity" means a person (including a trust or a
         partnership) or company in which the Company has a significant
         investment and which the Company designates as such for the purposes of
         this Plan;

   (j)   "Director means a member of the Board;

   (k)   "Earliest Exercise Date" in respect of an Option or Right as the case
         may be, means the earliest date on which the Option or Right may be
         exercised, as designated by the Company at the time the Option or Right
         is granted;

   (l)   "Fiscal Year" means the financial year of the Company;

   (m)   "including" means including without limitation;

   (n)   "Incumbent Director" means any member of the Board who was a member of
         the Board immediately prior to the occurrence of a transaction,
         transactions or elections giving rise to a Change in Control (other
         than a transaction approved by the Board) and any successor to an
         Incumbent Director who is recommended or elected or appointed to
         succeed an Incumbent Director by the affirmative vote of a majority of
         the Incumbent Directors then on the Board;

   (o)   "Independent Broker" means a registered broker which is independent
         under Stock Exchange Rules;

   (o.1) "Insider" means (a) an insider of the Company as defined by the
         SECURITIES ACT (Ontario), other than a person who falls within that
         definition solely by virtue of

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         being a director or senior officer of a Subsidiary; and (b) an
         Associate of any person who is an Insider by virtue of (a);

   (p)   "Latest Exercise Date" means the latest date on which an Option or
         Right as the case may be, may be exercised, as designated by the
         Company at the time the Option or Right is granted;

   (q)   "Market Price" shall mean the weighted average price per Share (or the
         mean of the closing bid and ask prices, if not traded) on the TSE
         during the period five trading days preceding the date of the
         determination;

   (r)   "Option" means a right granted under the Plan to a Participant to
         purchase Shares in accordance with the Plan; and

   (s)   "Option Program" means the Stock Option Program, consisting of Part II
         of the Plan, as amended and restated from time to time;

   (t)   "Participant" means

         (i)    a Director,

         (ii)   a permanent employee of the Company, a Subsidiary or a
                  Designated Affiliated Entity, or

         (iii)  a Consultant of the Company, a Subsidiary, or a Designated
                  Affiliated Entity,

         who has been designated by the Company for participation in the Plan
         and who has agreed to participate in the Plan or any Program thereof on
         such terms as the Company may specify;

   (u)   "Performance Share Program" means the Performance Share Unit Program,
         consisting of Part IV of the Plan, as amended and restated from time to
         time;

   (v)   "Performance Unit" means a unit allocated to a Participant in
         accordance with the Performance Share Program;

   (w)   "Plan" means this Long Term Incentive Plan, consisting of the Option
         Program, the Rights Program and the Performance Share Program, as
         amended and restated from time to time;

   (x)   "Program" means the Option Program, the Rights Program or the
         Performance Share Program, as applicable;

   (y)   "Reorganization" means any (i) capital reorganization, (ii) merger,
         (iii) amalgamation, (iv) offer for shares of the Company which if
         successful would entitle the offeror to acquire all of the shares of
         the Company or all of one or more particular class(es) of shares of the
         Company to which the offer relates,

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         (v) sale of a material portion of the assets of the Company, or (i)
         arrangement or other scheme of reorganization;

   (z)   "Right" means a stock appreciation right granted under the Rights
         Program to a Participant in accordance with the Rights Program;

   (aa)  "Retirement" means the retirement of a Participant from employment with
         the Company, a Subsidiary or a Designated Affiliated Entity in
         accordance with the normal retirement policy of his or her employer;

   (bb)  "Rights Program" means the Stock Appreciation Rights Program,
         consisting of Part III of the Plan, as amended and restated from time
         to time;

   (cc)  "Rule" means the Ontario Securities Rule 45-503 Trades to Employees,
         Executives and Consultants;

   (dd)  "Shares" means the Subordinate Voting Shares in the capital of the
         Company, and includes any shares of the Company into which such shares
         may be converted, reclassified, redesignated, subdivided, consolidated,
         exchanged or otherwise changed, pursuant to a Reorganization or
         otherwise;

   (ee)  "Stock Exchange Rules" means the applicable rules of any stock exchange
         upon which shares of the Company are listed;

   (ff)  "Subsidiary" means a subsidiary of the Company as defined by the
         BUSINESS CORPORATIONS ACT (Ontario);

   (gg)  "TSE" means The Toronto Stock Exchange; and

   (hh)  "Year" in respect of an Option, Right or Performance Unit, as the case
         may be, means a calendar year commencing on the Date of Grant of the
         Option, Right or Performance Unit, as the case may be, or on any
         anniversary of such date.

2.2      Certain other defined terms used herein have the meanings ascribed to
them in the Option Program, the Rights Program or the Performance Share Program.

2.3      In this Plan, unless the context requires otherwise, words importing
the singular number may be construed to extend to and include the plural number,
and words importing the plural number may be construed to extend to and include
the singular number.

2.4      The Option Price per Share or Market Price may be expressed or
designated in a currency other than Canadian dollars, based on the noon day
foreign exchange rate as quoted by the Bank of Canada on the relevant date or
such other foreign exchange rate basis as the Company may determine to be
appropriate.

2.5      This Plan is established under the laws of the Province of Ontario and
the rights of all parties and the construction of each and every provision of
the Plan and any Options,

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Rights or Performance Units granted hereunder shall be construed according to
the laws of the Province of Ontario.

2.6      This Plan consists of four parts, the first part ("Part I") commencing
with Section 1, consisting of general provisions applicable to the Plan as a
whole; the second part ("Part II") commencing with section 5, consisting of the
Option Program; the third part ("Part III") commencing with section 12,
consisting of the Rights Program and the fourth part ("Part IV") commencing with
section 18, consisting of the Performance Share Program.

3.       GENERAL
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3.1      The transfer of an employee from the Company to a Subsidiary or a
Designated Affiliated Entity, from a Subsidiary or a Designated Affiliated
Entity to the Company, or from one Subsidiary or Designated Affiliated Entity to
another Subsidiary or Designated Affiliated Entity, shall not be considered a
termination of employment for the purposes of the Plan, nor shall it be
considered a termination of employment if a Participant is placed on such other
leave of absence which is considered by the Company as continuing intact the
employment relationship; in such a case, the employment relationship shall be
continued until the later of the date when the leave equals ninety days or the
date when a Participant's right to reemployment shall no longer be guaranteed
either by law or by contract, except that in the event active employment is not
renewed at the end of the leave of absence, the employment relationship shall be
deemed to have ceased at the beginning of the leave of absence.

3.2      The number of Shares which may be issued from the treasury of the
Company under this Plan is limited to 29,000,000. The number of Shares which may
be reserved for issue under Options, or Rights granted pursuant to this Plan,
together with Shares reserved for issue under any other employee-related plan of
the Company or options for services granted by the Company, to any one person
shall not exceed 5% of the outstanding voting securities of the Company. The
Company may from time to time designate in each case such other maximum number
for this purpose which, however, will not in any event exceed the maximum number
permitted from time to time under Stock Exchange Rules. The number of Shares
which may be issued from the treasury of the Company under this Plan to
Directors is limited to 2,000,000. The number of Shares reserved for issue under
Options or Rights granted to Insiders pursuant to this Plan, together with
Shares reserved for issue to Insiders under any other existing share
compensation arrangement of the Company, shall not exceed 10% of the aggregate
outstanding Multiple Voting Shares and Subordinate Voting Shares of the Company.
Within any one-year period, the number of Shares issued to Insiders pursuant to
this Plan and all other existing share compensation arrangements of the Company
shall not exceed 10% of the aggregate outstanding Multiple Voting Shares and
Subordinate Voting Shares of the Company and the number of Shares issued to any
one Insider and such Insider's Associates shall not exceed 5% of the aggregate
outstanding Multiple Voting Shares and Subordinate Voting Shares of the Company.
If the number of Shares of the Company shall be increased or decreased as a
result of a stock split, consolidation, reclassification or recapitalization and
not as a result of the issuance of Shares for additional consideration or by way
of a stock dividend in the ordinary course, the Company may make appropriate
adjustments to the maximum number of Shares which may be issued from the
treasury of the Company under the Plan.

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3.3      Subject to any Applicable Law, the Company may, but is not obligated
to, acquire issued and outstanding Shares in the market for the purposes of
providing Shares to Participants under the Plan. If it does so, the Company
shall utilize the services of an Independent Broker. The Shares acquired for
this purpose shall not be included for the purposes of the determining the
maximum number of Shares to be issued under the Plan in accordance with section
3.2.

3.4      From time to time the Company may, in addition to its powers under the
Plan, add to or amend any of the provisions of the Plan or terminate the Plan or
amend the terms of any Option, Right or Performance Unit granted under the Plan;
provided, however, that (i) any approvals required under any applicable law or
Stock Exchange Rules are obtained, and (ii) no such amendment or termination
shall be made at any time which has the effect of adversely affecting the
existing rights of a Participant under the Plan without his or her consent in
writing unless the Company, at its option, acquires such existing rights at an
amount equal to the fair market value of such rights at such time as verified by
an independent valuator.

3.5      The determination by the Company of any question which may arise as
to the interpretation or implementation of the Plan or any of the Options,
Rights or Performance Units granted hereunder shall be final and binding on
all Participants and other persons claiming or deriving rights through any of
them.

3.6      The Plan shall enure to the benefit of and be binding upon the Company,
its successors and assigns. The interest of any Participant under the Plan or in
any Option, Right or Performance Unit shall not be transferable or alienable by
him or her either by pledge, assignment or in any other manner, except to a
spouse or a personal holding company or family trust controlled by a
Participant, the shareholders or beneficiaries of which, as the case may be, are
any combination of the Participant, the Participant's spouse, the Participant's
minor children or the Participant's minor grandchildren, and after his or her
lifetime shall enure to the benefit of and be binding upon the Participant's
Beneficiary.

3.7      The Company's obligation to issue or provide Shares in accordance with
the terms of the Plan and any Options, Rights or Performance Units granted
hereunder is subject to compliance with Applicable Law applicable to the
issuance and distribution of such Shares. As a condition of participating in the
Plan, each Participant agrees to comply with all such Law and agrees to furnish
to the Company all information and undertakings as may be required to permit
compliance with such Law.

3.8      The Company, a Subsidiary or a Designated Affiliated Entity may
withhold from any amount payable to a Participant, either under this Plan, or
otherwise, such amount as may be necessary so as to ensure that the Company, the
Subsidiary or Designated Affiliated Entity will be able to comply with the
applicable provisions of any federal, provincial, state or local law relating to
the withholding of tax or other required deductions, including on the amount, if
any, includable in the income of a Participant. The Company shall also have the
right in its discretion to satisfy any such withholding tax liability by
retaining or acquiring any Shares which would otherwise be issued or provided to
a Participant hereunder.

3.9      A Participant shall not have the right or be entitled to exercise any
voting rights, receive dividends or have or be entitled to any other rights as a
shareholder in respect of (i)

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Shares subject to an Option unless and until such Shares have been paid for in
full and issued, (ii) any Rights, or (iii) any Performance Units unless and
until issued or provided in the form of Performance Shares.

3.10     Neither designation of an employee as a Participant nor the grant of
any Options, Rights or Performance Units to any Participant entitles any
Participant to the grant, or any additional grant, as the case may be, of any
Options, Rights or Performance Units under the Plan. Neither the Plan nor any
action taken thereunder shall interfere with the right of the employer of a
Participant to terminate a Participant's employment at any time. Neither any
period of notice, if any, nor any payment in lieu thereof, upon termination of
employment shall be considered as extending the period of employment for the
purposes of the Plan.

3.11     No member of the Board or the Committee shall be liable for any action
or determination made in good faith in connection with the Plan and members of
the Board and the Committee shall be entitled to indemnification and
reimbursement from the Company in respect of any claim relating thereto.

3.12     Participation in the Plan shall be entirely voluntary and any decision
not to participate shall not affect any employee's employment with, or any
Consultant's engagement by, the Company, a Subsidiary or Designated Affiliated
Entity.

3.13     If any provision of this Plan is determined to be invalid or
unenforceable in whole or in part, such invalidity or unenforceability shall
attach only to such provision or part thereof and the remaining part, if any, of
such provision and all other provisions hereof shall continue in full force and
effect.

3.14     Neither the establishment of the Plan nor the grant of any Rights or
Performance Units or the setting aside of any funds by the Company (if, in its
sole discretion, it chooses to do so) shall be deemed to create a trust. Legal
and equitable title to any funds set aside for the purposes of the Plan shall
remain in the Company and no Participant shall have any security or other
interest in such funds. Any funds so set aside shall remain subject to the
claims of creditors of the Company present or future. Amounts payable to any
Participant under the Plan shall be a general, unsecured obligation of the
Company. The right of the Participant or Beneficiary to receive payment pursuant
to the Plan shall be no greater than the right of other unsecured creditors of
the Company.

3.15     This Plan is hereby instituted this 28th day of June, 1998.

4.       ADMINISTRATION
         --------------

4.1      The Plan shall be administered by the Company in accordance with its
provisions. All costs and expenses of administering the Plan will be paid by the
Company, but the Company shall not be responsible for the payment of any fees or
expenses in respect of the re-sale by a Participant of Shares acquired by him or
her under the Plan. The Company, may from time to time, establish administrative
rules and regulations and prescribe forms or documents relating to the operation
of the Plan as it may deem necessary to implement or further the purpose of the
Plan and amend or repeal such rules and regulations or forms or documents. The
Company, in its discretion, may appoint a Committee for the purpose of
interpreting, administering and

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implementing the Plan or a Program. In administering the Plan, the Company or
the Committee may seek recommendations from the chief executive officer of the
Company. The Company may also delegate to the Committee or any director, officer
or employee of the Company such duties and powers, relating to the Plan or a
Program as it may see fit. The Company may also appoint or engage a trustee,
custodian or administrator to administer or implement the Plan or a Program.

4.2      The Company shall keep or cause to be kept such records and accounts
as may be necessary or appropriate in connection with the administration of the
Plan and the discharge of its duties. At such times as the Company shall
determine, the Company shall furnish the Participant with a statement setting
forth the details of his or her Options, Rights or Performance Units, including
Date of Grant, Designated Option Amount and the Option Price of each Option, the
number of Shares in respect of which the Option has been exercised, the maximum
number of Shares which the Participant may still purchase under the Option
Program, the Designated Rights Amount held by each Participant and the number of
Performance Units held by each Participant. Such statement shall be deemed to
have been accepted by the Participant as correct unless written notice to the
contrary is given to the Company within 30 days after such statement is given to
the Participant.

4.3 (a)  Any payment, notice, statement, certificate or other instrument
         required or permitted to be given to a Participant or any person
         claiming or deriving any rights through him or her shall be given by:

           (i)    delivering it personally to the Participant or to the person
                  claiming or deriving rights through him or her, as the case
                  may be, or

           (ii)   mailing it postage paid (provided that the postal service is
                  then in operation) or delivering it to the address which is
                  maintained for the Participant in the Company's personnel
                  records.

    (b)           Any payment, notice, statement, certificate or other
                  instrument required or permitted to be given to the Company
                  shall be given by mailing it postage paid (provided that the
                  postal service is then in operation), delivering it to the
                  Company at its principal address, or (other than in the case
                  of a payment) sending it by means of facsimile or similar
                  means of electronic transmission, to the attention of the
                  Company Secretary.

    (c)           Any payment, notice, statement, certificate or other
                  instrument referred to in section 4.3(a) or 4.3(b), if
                  delivered, shall be deemed to have been given or delivered on
                  the date on which it was delivered, if mailed (provided that
                  the postal service is then in operation), shall be deemed to
                  have been given or delivered on the second business day
                  following the date on which it was mailed and if by facsimile
                  or similar means of electronic transmission, on the next
                  business day following transmission.

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                                     PART II

                              STOCK OPTION PROGRAM

5.       STOCK OPTION PROGRAM DEFINITIONS
         --------------------------------

5.1      In this Program, the following terms have the following meanings:

   (a)   "Designated Amount" of a Participant's Option means the maximum number
         of Shares which the Participant may purchase under the Option, as
         designated by the Company;

   (b)   "Designated Percentage" in respect of an Option means the percentage of
         the Designated Amount representing the maximum number of Shares which a
         Participant may purchase under the Option during each Option Year
         which, unless otherwise determined by the Company, shall be 20%
         commencing on the second Option Year, 40% commencing on the third
         Option Year, 60% commencing on the fourth Option Year, 80% commencing
         on the fifth Option Year and 100% commencing on the sixth Option Year;

   (c)   "Option Price" in respect of an Option means the price designated by
         the Company at which the Participant may purchase a Share under the
         Option; and

   (d)   "Program" means this Stock Option Program.

6.       GRANTING OF OPTIONS AND DETERMINATION OF THE OPTION PRICE
         ---------------------------------------------------------

6.1      From time to time the Company may grant Options to Participants to
acquire Shares in accordance with the Plan. In granting each such Option, the
Company shall designate:

   (a)   the Designated Amount of Shares;

   (b)   the Earliest Exercise Date, which may be the Date of Grant;

   (c)   the Latest Exercise Date, which shall be no later than ten years after
         the Date of Grant;

   (d)   the Designated Percentage; and

   (e)   the Option Price, which price shall be determined by the Company in
         accordance with section 6.2.

6.2      The Option Price per Share in respect of an Option shall be not less
than the price per Share of the last reporting selling price of at least a Board
Lot of the Shares on the TSE on the day preceding the Date of Grant of the
Option and, if there were no such trades on that day, the weighted average
trading price of the Shares for the previous five days on which the Shares
traded on the TSE.

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6.3      Subject to the terms of the Plan, the Company may determine other terms
or conditions, if any, of any Options, including:

   (a)   any additional  conditions on the grant of Options under the Program,
         including conditions as to the ownership of Shares by a Participant;

   (b)   any additional conditions with respect to the exercise of Options under
         the Program, including conditions in respect of

           (i)    the market price of the Shares,

           (ii)   the financial performance or results of the Company, a
                  Subsidiary, a Designated Affiliated Entity or business unit,
                  and

           (iii)  restrictions on the re-sale of Shares acquired on the exercise
                  of Options; and

   (c)   such other terms or conditions as the Company may in its discretion
         determine.

6.4      At the discretion of the Company, an Option granted under the Plan may
have connected therewith any number of rights or fractions of rights. Each such
right in respect of a Share shall entitle the Participant to surrender to the
Company, unexercised, the right to subscribe for such Share pursuant to the
related Option and to receive from the Company cash in an amount equal to the
excess of the market price ("market price" for this purpose shall mean the
weighted average price per Share (or the mean of the closing bid and ask prices,
if not traded) on the TSE during the period five trading days preceding the date
of the determination) over the Exercise Price provided in the related Option.
Each exercise of a right in respect of a Share covered by a related Option shall
terminate that Option in respect of such Share and such Option in respect of
such Share shall be of no further force or effect. Unexercised rights shall
terminate when the related Option is exercised or the Option terminates.

7.       EXERCISE OF PARTICIPANT'S OPTIONS
         ---------------------------------

7.1      Subject to the provisions of the Plan, an Option may be exercised by
the Participant only on or after the Earliest Exercise Date and thereafter from
time to time at his or her discretion to purchase in the aggregate a number of
Shares equal to the aggregate of the previously unexercised portion of the
Designated Amount provided that, unless the Company at any time otherwise
determines,

   (a)   subject to clause (b) of this section 7.1, the maximum number of Shares
         which the Participant may purchase under the Option during each of the
         Years commencing on the Earliest Exercise Date of the Option shall be
         equal to the number of Shares represented by the Designated Percentage
         of the Designated Amount of the Option, and

   (b)   if the number of Shares purchased under the Option during any of the
         Years is less than the maximum number which could have been purchased
         under the Option during that Year, the difference shall be carried
         forward and added to the

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                                     - 11 -

         maximum number of Shares which may be purchased under the Option in the
         immediately following Year, and so on from time to time, provided that
         the percentage of the Designated Amount which the Participant may
         purchase under an Option shall not exceed one hundred per cent (100%).

7.2      Notwithstanding section 7.1, Options may be exercised at any time
following a Change in Control.

7.3      Unless the Company at any time otherwise determines, a Participant's
Option shall terminate and may not be exercised after the earliest of:

   (a)   in the case of the termination of employment with the Company for
         cause, immediately as of the time of such termination;

   (b)   30 days after the date of the Participant's termination of employment
         with the Company, unless such termination occurs by reason of
         termination of the Participant's employment for cause or the
         Participant's death, disability or Retirement as contemplated in
         subsections (a), (c) or (d) of this section, in which case the
         provisions of the applicable subsection shall govern;

   (c)   three years after the Participant's Retirement provided that if the
         Participant dies prior to the expiry of the first two years of such
         three-year period the Option shall terminate one year after the
         Participant's death;

   (d)   one year after the Participant's death or the termination of employment
         with the Company by reason of his disability (as determined by the
         Company in its sole discretion); and

   (e)   the Latest Exercise Date of the Participant's Option;

provided that, in any event, the Option shall terminate no later than ten years
after the Date of Grant.

7.4      The exercise of an Option under the Plan shall be made by notice to the
Company in writing specifying and subscribing for the number of Shares in
respect of which the Option is being exercised at that time and, except where
payment is made by another means satisfactory to the Company such as wire
transfer of funds, accompanied by a certified cheque or bank draft payable to
the Company in the amount of the aggregate Option Price for such number of
Shares. Upon receipt of such notice and payment, the Shares in respect of which
the Option has been exercised shall be issued as fully-paid and non-assessable
shares of the Company. As of the business day the Company receives such notice
and such payment, the Participant (or the person claiming through him, as the
case may be) shall be entitled to be entered on the share register of the
Company as the holder of the number of Shares in respect of which the Option was
exercised and to receive as promptly as possible thereafter a certificate
representing the said number of Shares.

7.5      A Participant may, in lieu of an exercise of an Option under section
7.4, exercise an Option for a number of Shares without payment of the Option
Price by notice to the Company

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                                     - 12 -

in writing specifying the Participant is subscribing for that number of Shares
to which the Participant is entitled under this Program without payment of the
Option Price. The number of Shares to be issued or provided to the Participant
is the number obtained by dividing (a) the difference between the Market Price
and the Option Price multiplied by the number of the Shares in respect of which
the Option would otherwise be exercised under section 7.4 with the payment of
the aggregate Option Price by (b) the Market Price. The Shares issued in respect
thereof shall be considered fully paid in consideration of past service that is
no less in value than the fair equivalent of the money the Company would have
received if the Shares had been issued for money.

7.6      Unless otherwise determined by the Company, if the Participant is a
person who has knowledge of a "material fact" or "material change" (each as
defined under the SECURITIES ACT (Ontario)) in respect of the Company that has
not been generally disclosed in accordance with applicable securities
legislation and adequately disseminated to the public, he or she shall not be
entitled to exercise the Option.

8.       EFFECT OF TERMINATION OF OPTION
         -------------------------------

8.1      If any Option has terminated or expired without being fully exercised,
any unissued Shares which have been reserved to be issued upon the exercise of
the Option shall become available to be issued upon the exercise of Options
subsequently granted under the Program.

9.       CHANGES IN SHARE CAPITAL
         ------------------------

9.1      If the number of outstanding Shares of the Company shall be increased
or decreased as a result of a stock split, consolidation, reclassification or
recapitalization and not as a result of the issuance of Shares for additional
consideration or by way of a stock dividend in the ordinary course, the Company
may make appropriate adjustments to the Designated Option Amount of any Option
which has previously been granted under the Program, the maximum number of
Shares which the Participant may thereafter purchase under such Option, the
Option Price in respect of such Option and any maximum number of Shares which
may be issued under the Program. Any determinations by the Company as to the
adjustments shall be made in its sole discretion and all such adjustments shall
be conclusive and binding for all purposes under the Program.

9.2      No fractional shares shall be issued upon the exercise of an Option nor
shall any scrip certificates in lieu thereof be issuable at any time.
Accordingly, if as a result of any adjustment under section 9.1 a Participant
would otherwise have become entitled to a fractional share upon the exercise of
an Option, he shall have the right to purchase only the next lower whole number
of Shares and no payment or other adjustment will be made with respect to the
fractional interests so disregarded.

10.      LOANS TO PARTICIPANTS
         ---------------------

10.1     Subject to Applicable Law, the Company may in its sole discretion
arrange for the Company, any Subsidiary or any Designated Affiliated Entity to
make loans or provide guarantees for loans by financial institutions to assist
Participants to purchase Shares upon the

<PAGE>

                                     - 13 -

exercise of the Options and to assist the Participants to pay any income tax
exigible upon exercise of the Options. Such loans may be secured or unsecured,
and at such rates of interest, if any, and on such other terms as may be
determined by the Company, provided that in no event shall any loan be
outstanding for more than 10 years from the Date of Grant of the relevant
Option.

11.      REORGANIZATION
         --------------

11.1     In the event of a Reorganization or proposed Reorganization, the
Company, at its option, may, subject to Stock Exchange Rules, do either of the
following:

   (a)   the Company may irrevocably commute any Option that is still capable of
         being exercised, upon giving to any Participant to whom such Option has
         been granted at least 30 days written notice of its intention to
         commute the Option, and during such period of notice, the Option, to
         the extent that it has not been exercised, may be exercised by the
         Participant up to the Designated Amount of Shares which may be
         purchased under the Option, without regard to the limitations contained
         in subsection 7.1(a), and on the expiry of such period of notice, the
         unexercised portion of the Option shall lapse and be cancelled, or

   (b)   the Company, or any corporation which is or would be the successor to
         the Company or which may issue securities in exchange for Shares upon
         the Reorganization becoming effective, may offer any Participant the
         opportunity to obtain a new or replacement option over any securities
         into which the Shares are changed or are convertible or exchangeable,
         on a basis proportionate to the number of Shares under option or some
         other appropriate basis, or some other property; in such event, the
         Participant shall, if he or she accepts such offer, be deemed to have
         released his or her Option over Shares and such Option shall be deemed
         to have terminated.

11.2     The Company may specify in any notice or offer made under section 11.1,
that, if for any reason, the Reorganization is not completed, the Company may
revoke such notice or offer. The Company may exercise such right by further
notice in writing to the Participant and return to the Participant any amount
paid as an Option Price by the Participant to the Company and the Option shall
thereafter continue to be exercisable by the Participant in accordance with its
terms.

11.3     Subsections (a) and (b) of section 11.1 are intended to be permissive
and may be utilized independently or successively or in combination or
otherwise, and nothing therein contained shall be construed as limiting or
affecting the ability of the Company to deal with Options in any other manner.

<PAGE>

                                     - 14 -

                                    PART III

                        STOCK APPRECIATION RIGHTS PROGRAM

12.      PROGRAM DEFINITIONS
         -------------------

12.1     In this Program, the following terms have the following meanings:

   (a)   "Designated Rights Amount" of a Participant's Rights means the maximum
         number of Rights which the Participant may exercise, as designated by
         the Company;

   (b)   "Designated Rights Percentage" means the percentage of the Designated
         Rights Amount representing the maximum number of Rights which a
         Participant may exercise each Year, which, unless otherwise determined
         by the Company, shall be 20% commencing on the second Year, 40%
         commencing on the third Year, 60% commencing on the fourth Year, 80%
         commencing on the fifth Year and 100% commencing on the sixth Year;

   (c)   "In the Money" means the excess, if any, of the Market Price of a Share
         at any time over the Strike Price;

   (d)   "Program" means this Stock Appreciation Rights Program;

   (e)   "Rights Letter" means a letter approved by the Company whereby a
         Participant may exercise his Rights; and

   (f)   "Strike Price" means the Market Price on the Date of Grant.

13.      GRANTING OF RIGHTS
         ------------------

13.1     From time to time the Company may grant Rights to a Participant in
accordance with the Plan. In granting any such Rights, the Company shall
designate:

   (a)   the Designated Rights Amount;

   (b)   the Earliest Exercise Date;

   (c)   the Latest Exercise Date;

   (d)   the Designated Rights Percentage; and

   (e)   the Strike Price of the Shares on the Date of Grant.

13.2     Subject to the term of the Plan, the Company may determine other terms
         or conditions, if any, of any Rights, including:

<PAGE>

                                     - 15 -

   (a)   any additional conditions on the grant of Rights under the Program,
         including conditions as to the ownership of Shares by a Participant;

   (b)   any additional conditions with respect to the exercise of Rights under
         the Program, including conditions in respect of (i) the market price of
         the Shares and (ii) the financial performance or results of the
         Company, a Subsidiary, a Designated Affiliated Entity, or business
         unit; and

   (c)   such other terms or conditions of the Company may in its discretion
         determine.

14.      EXERCISE OF PARTICIPANT'S RIGHTS
         --------------------------------

14.1     Subject to the provisions of the Program, a Right may be exercised by
the Participant only on or after the Earliest Exercise Date and thereafter from
time to time at his or her discretion, provided that, unless the Company at any
time otherwise determines,

   (a)   subject to clause (b) of this section 14.1, the maximum number of
         Rights which the Participant may exercise during each of the Years
         commencing on the Earliest Exercise Date of the Right shall be equal to
         the number of Rights represented by the Designated Rights Percentage of
         the Designated Rights Amount, and

   (b)   if the number of Rights exercised during any of the Years is less than
         the maximum number which could have been exercised during that Year,
         the difference shall be carried forward and added to the maximum number
         of Rights which may be exercised immediately following the Year, and so
         on from time to time.

14.2     Notwithstanding section 14.1, Rights may be exercised at any time
following a Change in Control.

14.3     Upon exercising a Right, the Participant will be paid the amount by
which such Right is In The Money on the date of exercise of the Right, subject
to any applicable withholding of taxes.

14.4     Unless the Company at any time otherwise determines, a Participant's
Right shall terminate and may not be exercised after the earliest of:

   (a)   in the case of termination of employment with the Company for cause,
         immediately as of the time of such termination;

   (b)   30 days after the date of the Participant's termination of employment
         with the Company, unless such termination occurs by reason of
         termination of the Participant's employment for cause or the
         Participant's death, disability or Retirement as contemplated in
         subsections (a), (c) or (d) of this section, in which case the
         provisions of the applicable subsection shall govern;

<PAGE>

                                     - 16 -

   (c)   three years after the Participant's Retirement provided that if the
         Participant dies prior to the expiry of the first two years of such
         three-year period, the Right shall terminate one year after the
         Participant's death;

   (d)   one year after the Participant's death or the termination of employment
         with the Company by reason of his disability (as determined by the
         Company in its sole discretion); and

   (e)   the Latest Exercise Date of the Participant's Right.

14.5     No certificates shall be issued with respect to such Rights, but the
Company shall maintain records in the name of each Participant showing the
number of Rights to which such Participant is entitled in accordance with the
Rights Program.

14.6     In order to exercise his Rights, the Participant must forward a
completed Rights Letter by personal delivery, or registered mail or facsimile to
the Company in the manner provided for in section 4.3.

14.7     The Company may, in lieu of all or a portion of the amount which would
otherwise be payable to a Participant under this Program, issue or provide to a
Participant a number of Shares. The number of Shares to be issued or provided to
a Participant will be determined by dividing the cash amount that is proposed to
be provided in the form of Shares under this section by the applicable Market
Price.

15.      EXERCISE OF RIGHTS
         ------------------

15.1     Unless otherwise determined by the Company, if the Participant is a
person who has knowledge of a "material fact" or "material change" (each as
defined under the SECURITIES ACT (Ontario)) in respect of the Company that has
not been generally disclosed in accordance with applicable securities
legislation and adequately disseminated to the public, he or she shall not be
entitled to exercise the Right.

16.      CHANGES IN SHARE CAPITAL
         ------------------------

16.1     If the number of outstanding Shares of the Company shall be increased
or decreased as a result of a stock split, consolidation, reclassification or
recapitalization and not as a result of the issuance of Shares for additional
consideration or by way of a stock dividend in the ordinary course, the Company
may make appropriate adjustments to the Designated Rights Amount and/or the
Strike Price. Any determinations by the Company as to the adjustments shall be
made in its sole discretion and all such adjustments shall be conclusive and
binding for all purposes under the Program.

17.      REORGANIZATION
         --------------

17.1     In the event of a Reorganization or proposed Reorganization, the
Company, at its option, may, subject to Stock Exchange Rules, do either of the
following:

<PAGE>

                                     - 17 -

   (a)   the Company may irrevocably commute any Right that is still capable of
         being exercised, upon giving to any Participant to whom such Right has
         been granted at least 30 days written notice of its intention to
         commute the Right, and during such period of notice, the Right, to the
         extent that it has not been exercised, may be exercised by the
         Participant up to the Designated Rights Amount without regard to the
         limitations contained in subsection 14.1(a), and on the expiry of such
         period of notice, the unexercised portion of the Rights shall lapse or
         be cancelled; or

   (b)   the Company, or any corporation which is or would be the successor to
         the Company or which may issue securities in exchange for Shares upon
         the Reorganization becoming effective, may offer any Participant the
         opportunity to obtain a new or replacement stock appreciation right or
         a security in respect of any securities into which the Shares are
         changed or are convertible or exchangeable, on a basis proportionate to
         the number of Rights held by the Participant or some other appropriate
         basis, or some other property; in such event, the Participant shall, if
         he or she accepts such offer, be deemed to have released his or her
         Rights and such Rights shall be deemed to have terminated.

17.2     The Company may specify in any notice or offer made under section 17.1,
that, if for any reason, the Reorganization is not completed, the Company may
revoke such notice or offer. The Company may exercise such right by further
notice in writing to the Participant and the Right shall thereafter continue to
be exercisable by the Participant in accordance with its terms.

17.3     Subsections (a) and (b) of section 17.1 are intended to be permissive
and may be utilized independently or successively or in combination or
otherwise, and nothing therein contained shall be construed as limiting or
affecting the ability of the Company to deal with Rights in any other manner.

<PAGE>

                                     - 18 -

                                     PART IV

                         PERFORMANCE SHARE UNIT PROGRAM

18.      PERFORMANCE SHARE UNIT PROGRAM DEFINITIONS
         ------------------------------------------

18.1     In this Program, the following terms have the following meanings:

   (a)   "Performance Grant" means a grant to a Participant pursuant to Article
         19 of a bonus stated as a dollar amount;

   (b)   "Performance Unit" means a unit allocated to a Participant under the
         Program in accordance with Article 19;

   (c)   "Program" means this Performance Share Program; and

   (d)   "Release Date" means, for a Performance Grant, the date or dates on
         which Performance Units shall be issued or be provided in the form of
         Performance Shares.

19.      GRANT OF PERFORMANCE GRANTS
         AND ALLOCATION OF PERFORMANCE UNITS
         -----------------------------------

19.1     Subsequent to the completion of each Fiscal Year, the Company may, in
its sole discretion, determine whether Performance Grants will be made to a
particular Participant, the dollar amount of such Performance Grant and the
Release Dates for the relevant Shares for such Participant. In making such
determinations, the Company may take into account the Participant's level of
responsibility, rate of compensation, individual performance and contribution,
and such other criteria as it deems appropriate, in assessing the value of such
past service of the Participant in respect of such Fiscal Year.

19.2     At the option of either the Company or the Participant, the amount
payable to a Participant under any bonus, profit sharing or gain-sharing program
by the Company, a Subsidiary or a Designated Affiliated Entity in respect of a
Fiscal Year, or a portion thereof, may be provided in the form of Performance
Grants in lieu thereof, provided the Company or Participant so elects prior to
the completion of the relevant Fiscal Year. In this case, the amount of the
Performance Grant shall be the amount in respect of which the election has been
made and the Release Date shall be the date or a specified event (including
termination of employment on Retirement) determined by the Company.

19.3     On the Date of Grant, each Participant who receives a Performance Grant
shall be allocated Performance Units reflecting such Performance Grant.

19.4     The number of Performance Units to be allocated to each Participant
shall be obtained by dividing the amount of the Performance Grant of each such
Participant by the Market Price on the Date of Grant. Fractional Units may be
allocated. Each such Performance

<PAGE>

                                     - 19 -

Unit shall represent the right to receive one Share or a cash payment at the
time, in the manner and subject to the restrictions set forth in this Program.

19.5     No certificates shall be issued with respect to such Performance
Grants or Performance Units, but the Company shall maintain records in the name
of each Participant showing the number of Performance Units to which such
Participant is entitled in accordance with the Performance Share Program.

20.      PERFORMANCE UNITS
         -----------------

20.1     Subject to section 20.2 and Article 21, and unless at any time
otherwise determined by the Company at any time, the Performance Units shall be
issued or provided in the form of Shares on the Release Date as determined under
Article 19.

20.2     Subject to the terms of the Plan, the Company may determine other terms
or conditions of any Performance Units, including

   (a)   any additional conditions with respect to the issue or provision of
         Shares under the Program, including conditions in respect of

           (i)    the market price of the Shares,

           (ii)   the financial performance or results of the Company, a
                  Subsidiary, a Designated Affiliated Entity or business unit
                  and

           (iii)  restrictions on the re-sale of Shares acquired under the
                  Program; and

   (b)   any other terms and conditions the Company may in its discretion
         determine.

21.      TERMINATION OF EMPLOYMENT AND FORFEITURES
         -----------------------------------------

21.1     Unless otherwise determined by the Company at any time, if a
Participant ceases to be employed by the Company, a Subsidiary or Designated
Affiliated Entity for any reason other than death, long-term disability or
Retirement, there shall be forfeited as of such termination of employment such
Performance Units as have not been issued or provided in the form of Shares in
accordance with the Plan. No cash or other compensation shall at any time be
paid in lieu of any such Performance Units which have been forfeited under this
Plan.

21.2     If (i) a Participant dies or ceases to be an employee of the Company, a
Subsidiary or a Designated Affiliated Entity by reason of long-term disability
or Retirement or (ii) for any other reason specified in each case by the
Company, all Performance Units shall be issued or provided in the form of Shares
to such Participant or his or her Beneficiary on a date determined by the
Company which shall in any event be not later than one year following the event.

21.3     If there is a Change of Control, all Performance Units shall be issued
or provided in the form of Shares to all Participants.

<PAGE>

                                     - 20 -

22.      ISSUE OF SHARES
         ---------------

22.1     The number of Shares to be issued or provided shall be equal to the
whole number of Performance Units which are to be released. Where, under section
20.1, the number of Units allocated would result in the issue of a fractional
Unit in the form of a fractional Share, the number of Units to be issued in the
form of Shares shall be rounded down to the next whole number of Performance
Units. No fractional Shares shall be issued or provided nor shall cash be paid
at any time in lieu of any such fractional interest. Any such fractional
interests of a Unit which, together with other fractional interests, form a
whole Unit, shall be issued or provided in the form of a Share as part of the
Units to be issued or provided to the Participant on the next applicable Release
Date, if any.

22.2     Shares issued by the Company from treasury under the Performance Share
Program shall be considered fully paid in consideration of past service that is
no less in value than the fair equivalent of the money the Company would have
received if the Shares had been issued for money.

22.3     If so determined by the Company, in lieu of the issue or provision of
Shares, the Company may satisfy the issuance or provision of Shares under the
Program, in whole or in part, by the payment of a cash amount to a Participant
on the Release Date. The amount of such payment shall be equal to the number of
Shares in respect of which the Company makes such a determination, multiplied by
the Market Price on the Release Date, subject to any applicable withholding tax.

23.      MAXIMUM NUMBER OF SHARES TO
         BE ISSUED UNDER PROGRAM
         -----------------------

23.1     The number of Shares which may be issued from the treasury of the
Company under this Program is limited to 2,000,000. The number of Shares which
may be issued pursuant to the Program to any one person shall not exceed 1% of
the issued and outstanding voting securities of the Company. In each case, the
Company may from time to time designate such other maximum number which,
however, will not in any event exceed the maximum number permitted from time to
time under Stock Exchange Rules.

23.2     If Performance Units are forfeited under this Plan, they shall again be
available for allocation under this Program.

24.      CHANGES IN SHARE CAPITAL
         ------------------------

24.1     If the number of outstanding Shares shall be increased or decreased as
a result of a stock split, consolidation, subdivision, reclassification or
recapitalization and not as a result of the issuance of Shares for additional
consideration or by way of a stock dividend in the ordinary course, the Company
may make appropriate adjustments to any maximum number of Shares which can be
issued under the Program and the number of Performance Units granted to each
Participant. Any determinations by the Company as to the adjustments shall be
made in its sole discretion and all such adjustments shall be conclusive and
binding for all purposes under the Program.

<PAGE>

                                     - 21 -

25.      REORGANIZATION
         --------------

25.1     In the event of a Reorganization or proposed Reorganization, the
Company, at its option, may, subject to Stock Exchange Rules, do either of the
following:

   (a)   the Company may irrevocably commute for or into any other security or
         other property or cash any Performance Unit upon giving to any
         Participant to whom such Performance Unit has been granted at least 30
         days' written notice of its intention to commute the Performance Unit,
         and during such period of notice, the Participant may elect to require
         the Company to issue or provide the Performance Units in the
         Participant's account as Shares, without regard to the limitations
         contained in section 20.1, or

   (b)   the Company, or any corporation which is or would be the successor to
         the Company or which may issue securities in exchange for Shares upon
         the Reorganization becoming effective, may offer any Participant the
         opportunity to obtain securities into which the Shares are changed or
         are convertible or exchangeable, on a basis proportionate to the number
         of Performance Units in the Participant's account or some other
         appropriate basis, or some other property; in such event, the
         Participant shall, if he or she accepts such offer, be deemed to have
         released his or her rights relating to the Performance Units and such
         Performance Units shall be deemed to have terminated.

25.2     The Company may specify in any notice or offer made under section 25.1,
that, if for any reason, the Reorganization is not completed, the Company may
revoke such notice or offer. The Company may exercise such right by further
notice in writing to the Participant and the Performance Unit shall thereafter
continue to be allocated to the Participant in accordance with its terms.

25.3     Subsections (a) and (b) of section 25.1 are intended to be permissive
and may be utilized independently or successively or in combination or
otherwise, and nothing therein contained shall be construed as limiting or
affecting the ability of the Company to deal with Performance Units in any other
manner.

<PAGE>

                                   SCHEDULE A

    CELESTICA INC. INLAND REVENUE APPROVED RULES FOR UNITED KINGDOM
                                   EMPLOYEES
                                ("THE SUB-PLAN")

1.       GENERAL
         This schedule to the Celestica Inc. Long Term Incentive Plan ("the
         Plan") sets out the Inland Revenue approved rules for United Kingdom
         employees ("the Sub-Plan").

2.       ESTABLISHMENT OF SUB-PLAN

         Celestica Inc. ("the Company") has established the Sub-Plan under
         section 3.4 of the Plan, which authorises the Company to add to or
         amend any provisions of the Plani.

3.       PURPOSE OF SUB-PLAN

         The purpose of the Sub-Plan is to enable the grant to, and subsequent
         exercise by, employees and directors in the United Kingdom, on a tax
         favoured basis, of options to acquire shares in the Company under the
         Plan.

4.       INLAND REVENUE APPROVAL OF SUB-PLAN

         The Sub-Plan is intended to be approved by the Inland Revenue under
         Schedule 9 to ICTA 1988.

5.       RULES OF SUB-PLAN

         The rules of the Plan, in their present form and as amended from time
         to time, shall, with the modifications set out in this schedule, form
         the rules of the Sub-Plan. In the event of any conflict between the
         rules of the Plan and this schedule, the schedule shall prevail.

6.       RELATIONSHIP OF SUB-PLAN TO PLAN

         The Sub-Plan shall form part of the Plan and not a separate and
         independent plan.

7.       INTERPRETATION

7.1      In the Sub-Plan, unless the context otherwise requires, the following
         words and expressions have the following meanings:

<PAGE>

                                     - A2 -

<TABLE>
<CAPTION>

<S>                                            <C>
         APPROVAL DATE                         The  date on  which  the  Sub-Plan  is  approved  by the
                                               Inland Revenue under Schedule 9 to ICTA 1988;

         ASSOCIATED COMPANY                    The meaning given to that  expression by section  187(2)
                                               of ICTA 1988;ii

         CLOSE COMPANY                         The meaning given to that  expression by section  414(1)
                                               of, and paragraph 8 of Schedule 9 to, ICTA 1988;iii

         CONSORTIUM                            The  meaning  given to that  word by  section  187(7) of
                                               ICTA 1988;iv

         CONTROL                               The  meaning  given to that word by section  840 of ICTA
                                               1988 and "Controlled" shall be construed accordingly;v

         ELIGIBLE EMPLOYEE                     an individual who is:

                                               (a)   an employee of a Participating Company; or

                                               (b)   a director of a
                                                     Participating Company who
                                                     is contracted to work at
                                                     least 25 hours per week for
                                                     the Company and its
                                                     subsidiaries or any of them
                                                     (exclusive of meal breaks)

                                               and who, in either case, does not
                                               have at the Date of Grant of an
                                               Option, and has not had during
                                               the preceding twelve months, a
                                               Material Interest in a Close
                                               Company which is the Company or a
                                               company which has Control of the
                                               Company or a member of a
                                               Consortium which owns the
                                               Company;

         ICTA 1988                             The Income and Corporation Taxes Act 1988;

         MARKET VALUE                          Notwithstanding section 6.2 of the Plan:
</TABLE>

<Page>
                                     - A3 -

<TABLE>
<CAPTION>

<S>                                            <C>

                                               (a)   in the case of an Option
                                                     granted under the Sub Plan:

                                                        (i)      if at the relevant time the
                                                                 Shares are listed on the New
                                                                 York Stock Exchangevi the last
                                                                 reported selling price  of a
                                                                 Share on  the New York Stock
                                                                 Exchange as reported in the
                                                                 [Wall Street Journal] for the
                                                                 dealing day immediately
                                                                 preceding  the  Date of Grant of
                                                                 the Option (for the avoidance
                                                                 of doubt, if there were no
                                                                 trades on the day immediately
                                                                 preceding the Date of Grant,
                                                                 the weighted average trading
                                                                 price of the Shares for the
                                                                 previous five days on which the
                                                                 shares traded on the New York
                                                                 Stock Exchange); or

                                                        (ii)     at the discretion of the
                                                                 Committee, the last reported
                                                                 selling price of a Share on the
                                                                 New York Stock Exchange as
                                                                 reported in the [Wall Street
                                                                 Journal] on the Date of Grant
                                                                 of the Option (for the
                                                                 avoidance of doubt, if there
                                                                 were no trades on the Date of
                                                                 Grant, the weighted average
                                                                 trading price of the Shares for
                                                                 the previous five days on which
                                                                 the shares traded on the New
                                                                 York Stock Exchange);

                                                        (iii)    if paragraphs (i) or (ii) do not
                                                                 apply, the market value of a
                                                                 Share as determined in
                                                                 accordance with Part VIII of
                                                                 the Taxation of Chargeable
                                                                 Gains Act 1992 and agreed in
                                                                 advance with the Inland
                                                                 Revenue Shares Valuation
                                                                 Division on the Date of Grant
</TABLE>

<Page>

                                     - A4 -

<TABLE>
<CAPTION>

<S>                                            <C>

                                                                 of the Option or such earlier
                                                                 date or dates  as may be agreed
                                                                 with the Board of Inland
                                                                 Revenue;

                                                        (b) in the case of an option granted under any
                                                            other share option scheme, the market
                                                            value of an ordinary share in the capital of
                                                            the Company determined under the rules of
                                                            such scheme for the purpose of the grant of
                                                            the option;

         MATERIAL INTEREST                              the meaning given to that expression by
                                                        section  187(3) of ICTA 1988;vii

         NOTIFICATION OF GRANT OF OPTION                the  notification  issued in  respect of the grant
                                                        of an option;

         OPTION                                         a subsisting  right to acquire  Shares granted
                                                        under the Sub-Plan;

         OPTION HOLDER                                  an individual  who holds an Option or, where
                                                        the context permits, his legal personal
                                                        representatives;

         ORDINARY SHARE CAPITAL                         the meaning given to that  expression by
                                                        section  832(1) of ICTA 1988; and

         PARTICIPATING COMPANY                          the Company or a Subsidiary over which the
                                                        Company has Control unless such Subsidiary
                                                        has been excluded from participation by the
                                                        Committee;

         SUBSIDIARY                                     the  meaning  given to that word in  section  736
                                                        of the Companies Act 1985;
</TABLE>

7.2      In this schedule, unless the context otherwise requires:

         7.2.1    words and expressions not defined above have the same meanings
                  as are given to them in the Plan;

         7.2.2    the rule headings are inserted for ease of reference only and
                  do not affect their interpretation;

<PAGE>

                                     - A5 -

         7.2.3    a reference to a rule is a reference to a rule in this
                  schedule;

         7.2.4    the singular includes the plural and vice-versa and the
                  masculine includes the feminine; and

         7.2.5    a reference to a statutory provision is a reference to a
                  United Kingdom statutory provision and includes any statutory
                  modification, amendment or re-enactment thereof.

8.       COMPANIES PARTICIPATING IN SUB-PLAN

         For the avoidance of doubt reference in the Plan to participation by a
         Designated Affiliated Entity of the Company shall be disregarded for
         the purposes of the Sub-Plan.

9.       SHARES USED IN SUB-PLAN

         The Shares shall form part of the Ordinary Share Capital of the Company
         and shall at all times comply with the requirements of paragraphs 10 to
         14 of Schedule 9 to ICTA 1988.viii

10.      GRANT OF OPTIONS

         An option granted under the Sub-Plan shall be granted under and subject
         to the rules of the Plan as modified by this schedule.

11.      IDENTIFICATION OF OPTIONS

         A Notification of Grant of Option issued in respect of an Option shall
         expressly state that it is issued in respect of an Option. An option
         which is not so identified shall not constitute an Option.

12.      CONTENTS OF NOTIFICATION OF GRANT OF OPTION

         A Notification of Grant of Option issued in respect of an Option shall
         state:

         a)       that it is issued in respect of an Option;

         b)       the Date of Grant of the Option;

         c)       the number of Shares subject to the Option;

         d)       the exercise price of the Shares under Option;

         e)       any performance target or other condition imposed on the
                  exercise of the Option; and

<PAGE>

         f)       the date(s) on which the Option will ordinarily become
                  exercisable.

13.      EARLIEST DATE FOR GRANT OF OPTIONS

         An Option may not be granted earlier than the Approval Date.

14.      PERSONS TO WHOM OPTIONS MAY BE GRANTED

         An Option may not be granted to an individual who is not an Eligible
         Employee at the Date of Grant. For the avoidance of doubt, and
         notwithstanding sections 1, 2.1(g) and 2.1(t)(iii) of the Plan an
         Option may not be granted under the Sub-Plan to a Consultant.

15.      OPTIONS NON TRANSFERABLE

         An Option shall be personal to the Eligible Employee to whom it is
         granted and shall not be capable of being transferred, charged or
         otherwise alienated and shall lapse immediately if the Option Holder
         purports to transfer, charge or otherwise alienate the Option.

         The reference in section 3.6 of the Plan to transfers of Options to a
         spouse, a personal holding company or family trust controlled by a
         Participant and the reference to Beneficiaries in section 2.1(b) of the
         Plan shall be disapplied for the purposes of the Sub-Plan.

16.      LIMIT ON NUMBER OF SHARES PLACED UNDER OPTION UNDER SUB-PLAN

         For the avoidance of doubt, Shares placed under Option under the
         Sub-Plan shall be taken into account for the purpose of section 3.2 of
         the Plan.

17.      INLAND REVENUE LIMIT ((POUND)30,000)

         An Option may not be granted to an Eligible Employee if the result of
         granting the Option would be that the aggregate Market Value of the
         shares subject to all outstanding options granted to him under the
         Sub-Plan or any other share option scheme established by the Company or
         an Associated Company and approved by the Board of Inland Revenue under
         Schedule 9 to ICTA 1988 (other than a savings related share option
         scheme) would exceed sterling (pound)30,000 or such other limit as may
         from time to time be specified in paragraph 28 of Schedule 9 to ICTA
         1988ix. For this purpose, the United Kingdom sterling equivalent of the
         Market Value of a Share on any day shall be determined by taking the
         noon day sterling/US dollar exchange rate for that day as quoted by the
         Bank of Canada.

18.      EXERCISE PRICE OF SHARES UNDER OPTION

         The amount payable per Share on the exercise of an Option shall not be
         less than the Market Value of a Share on the Date of Grant and shall be
         stated on the Date of Grant.

<PAGE>

                                     - A7 -

19.      PERFORMANCE TARGET OR OTHER CONDITION IMPOSED ON EXERCISE OF
         OPTION

         Any performance target or other condition imposed on the exercise of an
         Option under section 6.3 of the Plan shall be:

         19.1     objective;

         19.2     such that, once satisfied, the exercise of the Option is not
                  subject to the discretion of any person; and

         19.3     stated on the Date of Grant.

         If an event occurs as a result of which the Committee considers that a
         performance target or other condition imposed on the exercise of an
         Option is no longer appropriate and substitutes, varies or waives under
         section 3.4 of the Plan the performance target or condition, such
         substitution, variation or waiver shall:

         19.4     be reasonable in the circumstances; and

         19.5     produce a fairer measure of performance and be neither
                  materially more nor less difficult to satisfy.

20.      EXERCISE OF OPTIONS BY LEAVERS

         The period during which an Option shall remain exercisable following
         termination of employment shall be as stated in the Notification of
         Grant of Option or in the absence of any stated period therein shall be
         as set out in section 7.3 of the Plan, except that the reference in
         section 7.3 of the Plan to "unless the Company at any time otherwise
         determines" shall be disapplied for the purposes of the Sub-Plan.

21.      LATEST DATE FOR EXERCISE OF OPTIONS

         The period during which an Option shall remain exercisable shall be
         stated in the Notification of Grant of Option and any Option not
         exercised by that time shall lapse immediately.

22.      MATERIAL INTEREST

         An Option may not be exercised if the Option Holder then has, or has
         had within the preceding twelve months, a Material Interest in a Close
         Company which is the Company or which is a company which has Control of
         the Company or which is a member of a Consortium which owns the
         Company.

<PAGE>

                                     - A8 -

23.      MANNER OF PAYMENT FOR SHARES ON EXERCISE OF OPTIONS

         The amount due on the exercise of an Option shall be paid in cash or by
         cheque or banker's draft and may be paid out of funds provided to the
         Option Holder on loan by a bank, broker or other person. For the
         avoidance of doubt, the exercise procedure in section 7.5 of the Plan
         shall be disapplied for the purposes of the Sub-Plan if this involves a
         broker transferring to the Company the sale proceeds of optioned
         Shares. The date of exercise of an Option shall be the date on which
         the Company receives the amount due on the exercise of the Option.

24.      ISSUE OR TRANSFER OF SHARES ON EXERCISE OF OPTIONS

         The Company shall, as soon as reasonably practicable after the date of
         exercise of an Option, issue or transfer to the Option Holder, or
         procure the issue or transfer to the Option Holder of, the number of
         Shares specified in the notice of exercise and shall deliver to the
         Option Holder, or procure the delivery to the Option Holder of, a share
         certificate in respect of such Shares together with, in the case of the
         partial exercise of an Option, a Notification of Grant of Option in
         respect of, or the original Notification of Grant of Option endorsed to
         show, the unexercised part of the Option, subject only to compliance by
         the Option Holder with the rules of the Sub-Plan and subject to any
         delay as necessary to complete or obtain:

         24.1   the listing of the Shares on any stock exchange on which Shares
                are then listed;

         24.2   such registration or other qualification of the Shares under any
                applicable law, rule or regulation as the Company determines is
                necessary or desirable; or

         24.3   the making of provision for the payment or withholding of any
                taxes required to be withheld in accordance with the applicable
                law of any foreign jurisdiction in respect of the exercise of
                the Option or the receipt of the Shares

25.      RIGHTS ATTACHING TO SHARES ISSUED ON EXERCISE OF OPTIONS

         All Shares issued on the exercise of an Option shall, as to any voting,
         dividend, transfer and other rights, including those arising on a
         liquidation of the Company, rank equally in all respects and as one
         class with the Shares in issue at the date of such exercise save as
         regards any rights attaching to such Shares by reference to a record
         date prior to the date of such exercise.

         Reference in section 6.3(b)(iii) of the Plan to imposing restrictions
         of the re-sale of Shares acquired on the exercise of Options shall be
         disapplied to the extent that these do not apply to all share of the
         same class or not otherwise permitted by paragraph 12(2) of Schedule 9
         to ICTA.

<PAGE>

                                     - A9 -

26.      AMENDMENT OF SUB-PLAN

         Notwithstanding section 3.4 of the Plan, no amendment of the Sub-Plan,
         shall take effect until it has been approved by the Inland Revenue.

27.      ADJUSTMENT OF OPTIONS

         Notwithstanding section 9.1 of the Plan, no adjustment may be made to
         an Option until it has been approved by the Inland Revenue.

28.      EXERCISE OF DISCRETION BY COMMITTEE

         In exercising any discretion which it may have under the Sub-Plan, the
         Committee shall act fairly and reasonably.

29.      DISAPPLICATION OF CERTAIN PROVISIONS OF PLAN

         The provisions of the Plan dealing with:

         a)       Rights;

         b)       Performance Units; and

         c)       loans to Participants

         shall not form part of, and no such rights may be granted under, the
         Sub-Plan.

--------

Notes

i    The Company is the "grantor" as defined in paragraph 1 of Schedule 9 to
ICTA 1988 because it has established the Sub-Plan. In most cases, it will
also be the Company which grants options under the Sub-Plan, although this is
not a requirement of UK tax legislation.
ii   A company is treated as another's "associated company" at a given time
if, at that time or at any other time within one year previously, one of the
two has control of the other, or both are under the control of the same
person or persons. A person is taken to have control of a company if he
exercises, or is able to exercise or is entitled to acquire, direct or
indirect control over the company's affairs and, in particular, if he
possesses or is entitled to acquire the greater part of the company's issued
share capital or the voting power in the company. UK tax legislation contains
two definitions of control: the definition of control here is different from
that in paragraph 4 below.
iii  A close company is a company which is under the control (as defined in
paragraph 1 above) of five or fewer participators (eg shareholders) or of any
number of participators who are directors. There are attributed to a
participator all the rights and powers (eg shares, voting power) of, inter
alia, a company which he controls or of an "associate" (eg relative) of his.
Ordinarily, a company is excluded from being a close company if it is non UK
resident or 35% of the voting power in the company is held by the public and
its shares have been listed, and the subject of dealings, on a recognised
stock exchange within the preceding 12 months. However, for the purpose of
the material interest test (see paragraph 5 below), this exclusion does not
apply with the result that the normal definition of a "close company" is
extended.

<PAGE>

                                    - A10 -

iv   A company is a member of a consortium owning another company if it is
one of a number of companies which between them beneficially own not less
than three-quarters of the other company's ordinary share capital and each of
which beneficially owns not less than one-twentieth of that capital.
v    Control means the power of a person to secure:
(a) by means of the holding of shares or the possession of voting power in or in
relation to that or any other body corporate; or
(b) by virtue of any powers conferred by the articles of association or other
document regulating that or any other body corporate
that the affairs of the first-mentioned body corporate are conducted in
accordance with the wishes of that person.

vi   The expression "recognised stock exchange" is defined in section 841 of
ICTA 1988. "Recognised stock exchange" means the London Stock Exchange
Limited and any stock exchange outside the UK which has been designated by
the Inland Revenue as a recognised stock exchange. This includes, inter alia,
the New York Stock Exchange, NASDAQ and any exchange registered with the US
Securities and Exchange Commission as a national securities exchange.
However, clearance is required from the Shares Valuation Division before the
NASDAQ price may be used to determine the market price of a NASDAQ listed
share.

vii  A person has a material interest in a company if he, either on his own
or with one or more associates, or if any associate of his with or without
such other associates:
(a) is the beneficial owner of, or able, directly or through the medium of other
companies, or by any other indirect means to control, more than 10 per cent of
the ordinary share capital of the company; or
(b) where the company is a close company, possesses, or is entitled to acquire,
such rights as would, in the event of the winding-up of the company or in any
other circumstances, give an entitlement to receive more than 10 per cent of the
assets which would then be available for distribution among the participators.

viii The shares used in the scheme must be:
(a)      ordinary shares;
(b)      fully paid up;
(c)      not redeemable; and
(d)      save for certain limited exceptions, not subject to any restrictions
         which do not apply to all shares of the same class.
         The shares used in the scheme must be:
(a)      of a class listed on a recognised stock exchange; or
(b)      shares in a company which is not under the control of another company;
         or
(c)      shares in a company which is under the control of another company
         (other than a company which is, or would if resident in the UK be, a
         close company) whose shares are listed on a recognised stock exchange.
The shares used in the scheme form part of the ordinary share capital of:
(a)      the grantor (ie the company which has established the scheme); or
(b)      a company which has control of the grantor; or
(c)      a company which either is, or has control of, a company which is a
         member of a consortium owning either the grantor or a company having
         control of the grantor.
Where the company whose shares are to be used in a scheme has more than one
class of ordinary share, the majority of the issued shares of the same class as
those which are to be used must be either employee control shares (see below)
or:
(a)      must not be held by persons (including trustees holding shares on
         behalf of such persons) who acquired their shares in pursuance of a
         right conferred on them or opportunity offered to them as directors or
         employees of any company, and not in pursuance of an offer to the
         public; and
(b)      if the shares are not listed on a recognised stock exchange and the
         company is under the control of another company whose shares are so
         listed, must not be held by companies which have control of the company
         whose shares are in question or of which that company is an associated
         company.
Shares are employee control shares if:
(a)      the persons holding them are, by virtue of their holding of shares of
         that class, together able to control the company; and
(b)      those persons are, or have been, employees or directors of the company
         or of another company which is under the control of the company.

<PAGE>

                                    - A11 -

ix   UK tax legislation imposes a limit (currently (pound)30,000) on the
"value" of the outstanding options which may be held by an individual
participant in an Inland Revenue approved executive share option scheme.<Page>

                                                                Exhibit 10.1

                             MASTER LEASE AGREEMENT
                                     (QUASI)
                      dated as of MAY 1, 2001 ("AGREEMENT")

     THIS AGREEMENT is between GENERAL ELECTRIC CAPITAL CORPORATION (together
with its successors and assigns, if any, "LESSOR") and DYAX CORP. ("LESSEE").
Lessor has an office at 401 Merritt 7 2nd Floor, Norwalk, CT 06856. Lessee is a
corporation organized and existing under the laws of the state of Delaware.
Lessee's mailing address and chief place of business is One Kendall Square,
Building 600, Cambridge, MA 02139. This Agreement contains the general terms
that apply to the leasing of Equipment from Lessor to Lessee. Additional terms
that apply to the Equipment (term, rent, options, etc.) shall be contained on a
schedule ("SCHEDULE").

1.   LEASING:

     (a) Lessor agrees to lease to Lessee, and Lessee agrees to lease from
Lessor, the equipment and other property ("EQUIPMENT") described in any Schedule
signed by both parties.

     (b) Lessor shall purchase Equipment from the manufacturer or supplier
("SUPPLIER") and lease it to Lessee if on or before the Last Delivery Date
(specified in the Schedule) Lessor receives (i) a Schedule for the Equipment,
(ii) evidence of insurance which complies with the requirements of Section 8,
and (iii) such other documents as Lessor may reasonably request. Each of the
documents required above must be in form and substance satisfactory to Lessor.
Lessor hereby appoints Lessee its agent for inspection and acceptance of the
Equipment from the Supplier. Once the Schedule is signed, the Lessee may not
cancel the Schedule.

2.   TERM, RENT AND PAYMENT:

     (a) The rent payable for the Equipment and Lessee's right to use the
Equipment shall begin on the earlier of (i) the date when the Lessee signs the
Schedule and accepts the Equipment or (ii) when Lessee has accepted the
Equipment under a Certificate of Acceptance ("LEASE COMMENCEMENT DATE"). The
term of this Agreement shall be the period specified in the applicable Schedule.
The word "term" shall include all basic and any renewal terms.

     (b) Lessee shall pay rent to Lessor at its address stated above, except as
otherwise directed by Lessor. Rent payments shall be in the amount set forth in,
and due as stated in the applicable Schedule. If any Advance Rent (as stated in
the Schedule) is payable, it shall be due when the Lessee signs the Schedule.
Advance Rent shall be applied to the first rent payment and the balance, if any,
to the final rent payment(s) under such Schedule. In no event shall any Advance
Rent or any other rent payments be refunded to Lessee. If rent is not paid
within ten (10) days of its due date, Lessee agrees to pay a late charge of five
cents ($.05) per dollar on, and in addition to, the amount of such rent but not
exceeding the lawful maximum, if any.

     (c) Lessor shall not disturb Lessee's quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is continuing
under this Agreement.

3.   TAXES:

     (a) If permitted by law, Lessee shall report and pay promptly all taxes,
fees and assessments due, imposed, assessed or levied against any Equipment (or
purchase, ownership, delivery, leasing, possession, use or operation thereof),
this Agreement (or any rents or receipts hereunder), any Schedule, Lessor or
Lessee by any governmental entity or taxing authority during or related to the
term of this Agreement, including, without limitation, all license and
registration fees, and all sales, use, personal property, excise, gross
receipts, franchise, stamp or other taxes, imposts, duties and charges, together
with any penalties, fines or interest thereon (collectively "TAXES"). Lessee
shall have no liability for Taxes imposed by the United States of America or any
State or political subdivision thereof which are on or measured by the net
income of Lessor. Lessee shall promptly reimburse Lessor (on an after tax basis)
for any Taxes charged to or assessed against Lessor. Lessee shall send Lessor a
copy of each report or return and evidence of Lessees payment of Taxes upon
request.

<Page>

     (b) Lessee's obligations, and Lessor's rights and privileges, contained in
this Section 3 shall survive the expiration or other termination of this
Agreement.

4.   REPORTS:

     (a) If any tax or other lien shall attach to any Equipment, Lessee will
notify Lessor in writing, within ten (10) days after Lessee becomes aware of the
tax or lien. The notice shall include the full particulars of the tax or lien
and the location of such Equipment on the date of the notice.

     (b) Lessee will deliver to Lessor Lessees complete financial statements,
certified by a recognized firm of certified public accountants, within ninety
(90) days of the close of each fiscal year of Lessee. If Lessor requests, Lessee
will deliver to Lessor copies of Lessee's quarterly financial report certified
by the chief financial officer of Lessee, within ninety (90) days of the close
of each fiscal quarter of Lessee. Lessee will deliver to Lessor all Forms 10-K
and 10Q, if any, filed with the Securities and Exchange Commission within thirty
(30) days after the date on which they are filed.

     (c) Lessor may inspect any Equipment during normal business hours after
giving Lessee reasonable prior notice.

     (d) Lessee will keep the Equipment at the Equipment Location (specified in
the applicable Schedule) and will give Lessor prior written notice of any
relocation of Equipment. If Lessor requests, Lessee will promptly notify Lessor
in writing of the location of any Equipment.

     (e) If any Equipment is lost or damaged (where the estimated repair costs
would exceed the greater of ten percent (10%) of the original Equipment cost or
ten thousand and 00/100 dollars ($10,000)), or is otherwise involved in an
accident causing personal injury or property damage, Lessee will promptly and
fully report the event to Lessor in writing.

     (f) Lessee will furnish a certificate of an authorized officer of Lessee
stating that he has reviewed the activities of Lessee and that, to the best of
his knowledge, there exists no default or event which with notice or lapse of
time (or both) would become such a default within thirty (30) days after any
request by Lessor.

     (g) Lessee will promptly notify Lessor of any change in Lessee's state of
incorporation or organization.

5.   DELIVERY, USE AND OPERATION:

     (a) All Equipment shall be shipped directly from the Supplier to Lessee.

     (b) Lessee agrees that the Equipment will be used by Lessee solely in the
conduct of its business and in a manner complying with all applicable laws,
regulations and insurance policies, and Lessee shall not discontinue use of the
Equipment.

     (c) Lessee will not move any equipment from the location specified on the
Schedule, without the prior written consent of Lessor.

     (d) Lessee will keep the Equipment free and clear of all liens and
encumbrances other than those which result from acts of Lessor.

     (e) Lessor shall not disturb Lessees quiet enjoyment of the Equipment
during the term of the Agreement unless a default has occurred and is continuing
under this Agreement.

6.   MAINTENANCE:

     (a) Lessee will, at its sole expense, maintain each unit of Equipment in
good operating order and repair, normal wear and tear excepted. The Lessee shall
also maintain the Equipment in accordance with manufacturers recommendations.
Lessee shall make all alterations or modifications required to comply with any
applicable law, rule or regulation during the term of this Agreement. If Lessor
requests, Lessee shall affix plates, tags or other identifying labels showing
ownership thereof by Lessee and Lessor's security interest therein. The tags or
labels shall be placed in a prominent position on each unit of Equipment.

     (b) Lessee will not attach or install anything on the Equipment that will
impair the originally intended function or use of such Equipment without the
prior written consent of Lessor. All additions, parts, supplies, accessories,
and equipment ("ADDITIONS") furnished or attached to any

<Page>

Equipment that are not readily removable shall become subject to the lien of
Lessor. All Additions shall be made only in compliance with applicable law.
Lessee will not attach or install any Equipment to or in any other personal or
real property without the prior written consent of Lessor.

7.   STIPULATED LOSS VALUE: If for any reason any unit of Equipment becomes worn
out, lost, stolen, destroyed, irreparably damaged or unusable ("CASUALTY
OCCURRENCES") Lessee shall promptly and fully notify Lessor in writing. Lessee
shall pay Lessor the sum of (i) the Stipulated Loss Value (see Schedule) of the
affected unit determined as of the rent payment date prior to the Casualty
Occurrence; and (ii) all rent and other amounts which are then due under this
Agreement on the Payment Date (defined below) for the affected unit. The Payment
Date shall be the next rent payment date after the Casualty Occurrence. Upon
payment of all sums due hereunder, the term of this lease as to such unit shall
terminate.

8.   INSURANCE:

     (a) Lessee shall bear the entire risk of any loss, theft, damage to, or
destruction of, any unit of Equipment from any cause whatsoever from the time
the Equipment is shipped to Lessee.

     (b) Lessee agrees, at its own expense, to keep all Equipment insured for
such amounts and against such hazards as Lessor may reasonably require. All such
policies shall be with companies, and on terms, reasonably satisfactory to
Lessor. The insurance shall include coverage for damage to or loss of the
Equipment, liability for personal injuries, death or property damage. Lessor
shall be named as additional insured with a loss payable clause in favor of
Lessor, as its interest may appear, irrespective of any breach of warranty or
other act or omission of Lessee. The insurance shall provide for liability
coverage in an amount equal to at least ONE MILLION U.S. DOLLARS ($1,000,000.00)
total liability per occurrence, unless otherwise stated in any Schedule. The
casualty/property damage coverage shall be in an amount equal to the higher of
the Stipulated Loss value or the full replacement cost of the Equipment. No
insurance shall be subject to any co-insurance clause. The insurance policies
shall provide that the insurance may not be altered or canceled by the insurer
until after thirty (30) days written notice to Lessor. Lessee agrees to deliver
to Lessor evidence of insurance reasonably satisfactory to Lessor.

     (c) Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make
proof of loss and claim for insurance, and to make adjustments with insurers and
to receive payment of and execute or endorse all documents, checks or drafts in
connection with insurance payments. Lessor shall not act as Lessees
attorney-in-fact unless Lessee is in default. Lessee shall pay any reasonable
expenses of Lessor in adjusting or collecting insurance. Lessee will not make
adjustments with insurers except with respect to claims for damage to any unit
of Equipment where the repair costs are less than the lesser of ten percent
(10%) of the original Equipment cost or ten thousand and 00/100 dollars
($10,000). Lessor may, at its option, apply proceeds of insurance, in whole or
in part, to (i) repair or replace Equipment or any portion thereof, or (ii)
satisfy any obligation of Lessee to Lessor under this Agreement.

9.   RETURN OF EQUIPMENT:

     (a) At the expiration or termination of this Agreement or any Schedule,
Lessee shall perform any testing and repairs required to place the units of
Equipment in the same condition and appearance as when received by Lessee
(reasonable wear and tear excepted) and in good working order for the original
intended purpose of the Equipment. If required the units of Equipment shall be
deinstalled, disassembled and crated by an authorized manufacturer's
representative or such other service person as is reasonably satisfactory to
Lessor. Lessee shall remove installed markings that are not necessary for the
operation, maintenance or repair of the Equipment. All Equipment will be
cleaned, cosmetically acceptable, and in such condition as to be immediately
installed into use in a similar environment for which the Equipment was
originally intended to be used. All waste material and fluid must be removed
from the Equipment and disposed of in accordance with then current waste
disposal laws. Lessee shall return the units of Equipment to a location within
the continental United States as Lessor shall direct. Lessee shall obtain and
pay for a policy of transit insurance for the redelivery period in an amount
equal to the replacement value of the Equipment. The transit insurance must name
Lessor as the loss payee. The Lessee shall pay for all costs to comply with this
section (a).

     (b) Until Lessee has fully complied with the requirements of Section 9(a)
above, Lessee's rent payment obligation and all other obligations under this
Agreement shall continue from month to month notwithstanding any expiration or
termination of the lease term. Lessor may terminate the Lessee's right to use
the Equipment upon ten (10) days notice to Lessee.

     (c) Lessee shall provide to Lessor a detailed inventory of all components
of the Equipment including model and serial numbers. Lessee shall also provide
an up-to-date copy of all other documentation pertaining to the Equipment. All
service manuals, blue prints, process flow diagrams,

<Page>

operating manuals, inventory and maintenance records shall be given to Lessor at
least ninety (90) days and not more than one hundred twenty (120) days prior to
lease termination.

     (d) Lessee shall make the Equipment available for on-site operational
inspections by potential purchasers at least one hundred twenty (120) days prior
to and continuing up to lease termination. Lessor shall provide Lessee with
reasonable notice prior to any inspection. Lessee shall provide personnel, power
and other requirements necessary to demonstrate electrical, hydraulic and
mechanical systems for each item of Equipment.

10.  DEFAULT AND REMEDIES:

     (a) Lessor may in writing declare this Agreement in default if: (i) Lessee
breaches its obligation to pay rent or any other sum when due and fails to cure
the breach within ten (10) days; (ii) Lessee breaches any of its insurance
obligations under Section 8; (iii) Lessee breaches any of its other obligations
and fails to cure that breach within thirty (30) days after written notice from
Lessor; (iv) any representation or warranty made by Lessee in connection with
this Agreement shall be false or misleading in any material respect; (v) Lessee
or any guarantor or other obligor for the Lessee's obligations hereunder
("GUARANTOR") becomes insolvent or ceases to do business as a going concern;
(vi) any Equipment is illegally used; (vii) if Lessee or any Guarantor is a
natural person, any death or incompetency of Lessee or such Guarantor; or (viii)
a petition is filed by or against Lessee or any Guarantor under any bankruptcy
or insolvency laws and in the event of an involuntary petition, the petition is
not dismissed within forty-five (45) days of the filing date. The default
declaration shall apply to all Schedules unless specifically excepted by Lessor.

     (b) After a default, at the request of Lessor, Lessee shall comply with the
provisions of Section 9(a). Lessee hereby authorizes Lessor to peacefully enter
any premises where any Equipment may be and take possession of the Equipment.
Lessee shall immediately pay to Lessor without further demand as liquidated
damages for loss of a bargain and not as a penalty, the Stipulated Loss Value of
the Equipment (calculated as of the rent payment date prior to the declaration
of default), and all rents and other sums then due under this Agreement and all
Schedules. Lessor may terminate this Agreement as to any or all of the
Equipment. A termination shall occur only upon written notice by Lessor to
Lessee and only as to the units of Equipment specified in any such notice.
Lessor may, but shall not be required to, sell Equipment at private or public
sale, in bulk or in parcels, with or without notice, and without having the
Equipment present at the place of sale. Lessor may also, but shall not be
required to, lease, otherwise dispose of or keep idle all or part of the
Equipment. Lessor may use Lessee's premises for a reasonable period of time for
any or all of the purposes stated above without liability for rent, costs,
damages or otherwise. The proceeds of sale, lease or other disposition, if any,
shall be applied in the following order of priorities: (i) to pay all of
Lessor's costs, charges and expenses incurred in taking, removing, holding,
repairing and selling, leasing or otherwise disposing of Equipment; then, (ii)
to the extent not previously paid by Lessee, to pay Lessor all sums due from
Lessee under this Agreement; then (iii) to reimburse to Lessee any sums
previously paid by Lessee as liquidated damages; and then (iv) to Lessee, if
there exists any surplus. Lessee shall immediately pay any deficiency in (i) and
(ii) above.

     (c) The foregoing remedies are cumulative, and any or all thereof may be
exercised instead of or in addition to each other or any remedies at law, in
equity, or under statute. Lessee waives notice of sale or other disposition (and
the time and place thereof), and the manner and place of any advertising. Lessee
shall pay Lessor's actual attorney's fees incurred in connection with the
enforcement, assertion, defense or preservation of Lessor's rights and remedies
under this Agreement, or if prohibited by law, such lesser sum as may be
permitted. Waiver of any default shall not be a waiver of any other or
subsequent default.

     (d) Any default under the terms of this or any other agreement between
Lessor and Lessee may be declared by Lessor a default under this and any such
other agreement.

11.  ASSIGNMENT: LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY
EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR WRITTEN
CONSENT OF LESSOR. Lessor may, without the consent of Lessee, assign this
Agreement, any Schedule or the right to enter into a Schedule. Lessee agrees
that if Lessee receives written notice of an assignment from Lessor, Lessee will
pay all rent and all other amounts payable under any assigned Schedule to such
assignee or as instructed by Lessor. Lessee also agrees to confirm in writing
receipt of the notice of assignment as may be reasonably requested by assignee.
Lessee hereby waives and agrees not to assert against any such assignee any
defense, set-off, recoupment claim or counterclaim which Lessee has or may at
any time have against Lessor for any reason whatsoever.

12.  NET LEASE: Lessee is unconditionally obligated to pay all rent and other
amounts due for the entire lease term no matter what happens, even if the
Equipment is damaged or destroyed, if it is defective or if Lessee no longer can
use it. Lessee is not entitled to reduce or set-off against rent or other
amounts due to Lessor or to anyone to whom Lessor assigns this Agreement or any
Schedule whether Lessees claim arises

<Page>

out of this Agreement, any Schedule, any statement by Lessor, Lessors liability
or any manufacturers liability, strict liability, negligence or otherwise.

13.  INDEMNIFICATION:

     (a) Lessee hereby agrees to indemnify Lessor, its agents, employees,
successors and assigns (on an after tax basis) from and against any and all
losses, damages, penalties, injuries, claims, actions and suits, including legal
expenses, of whatsoever kind and nature arising out of or relating to the
Equipment or this Agreement, except to the extent the losses, damages,
penalties, injuries, claims, actions, suits or expenses result from Lessors
gross negligence or willful misconduct ("CLAIMS"). This indemnity shall include,
but is not limited to, Lessor's strict liability in tort and Claims, arising out
of (i) the selection, manufacture, purchase, acceptance or rejection of
Equipment, the ownership of Equipment during the term of this Agreement, and the
delivery, lease, possession, maintenance, uses, condition, return or operation
of Equipment (including, without limitation, latent and other defects, whether
or not discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage) or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublessee or employees of
Lessee. Lessee shall, upon request, defend any actions based on, or arising out
of, any of the foregoing.

     (b) All of Lessor's rights, privileges and indemnities contained in this
Section 13 shall survive the expiration or other termination of this Agreement.
The rights, privileges and indemnities contained herein are expressly made for
the benefit of, and shall be enforceable by Lessor, its successors and assigns.

14.  DISCLAIMER: LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT
ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR EMPLOYEES. LESSOR DOES NOT MAKE, HAS
NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH RESPECT TO THE
EQUIPMENT LEASED UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE,
USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE.
All such risks, as between Lessor and Lessee, are to be borne by Lessee. Without
limiting the foregoing, Lessor shall have no responsibility or liability to
Lessee or any other person with respect to any of the following: (i) any
liability, loss or damage caused or alleged to be caused directly or indirectly
by any Equipment, any inadequacy thereof, any deficiency or defect (latent or
otherwise) of the Equipment, or any other circumstance in connection with the
Equipment; (ii) the use, operation or performance of any Equipment or any risks
relating to it; (iii) any interruption of service, loss of business or
anticipated profits or consequential damages; or (iv) the delivery, operation,
servicing, maintenance, repair, improvement or replacement of any Equipment. If,
and so long as, no default exists under this Agreement, Lessee shall be, and
hereby is, authorized during the term of this Agreement to assert and enforce,
whatever claims and rights Lessor may have against any Supplier of the Equipment
at Lessee's sole cost and expense, in the name of and for the account of Lessor
and/or Lessee, as their interests may appear.

15.  REPRESENTATIONS AND WARRANTIES OF LESSEE:  Lessee makes each of the
following representations and warranties to Lessor on the date hereof and on
the date of execution of each Schedule:

     (a) Lessee has adequate power and capacity to enter into, and perform
under, this Agreement and all related documents (together, the "DOCUMENTS").
Lessee is duly qualified to do business wherever necessary to carry on its
present business and operations, including the jurisdiction(s) where the
Equipment is or is to be located.

     (b) The Documents have been duly authorized, executed and delivered by
Lessee and constitute valid, legal and binding agreements, enforceable in
accordance with their terms, except to the extent that the enforcement of
remedies may be limited under applicable bankruptcy and insolvency laws.

     (c) No approval, consent or withholding of objections is required from any
governmental authority or entity with respect to the entry into or performance
by Lessee of the Documents except such as have already been obtained.

     (d) The entry into and performance by Lessee of the Documents will not: (i)
violate any judgment, order, law or regulation applicable to Lessee or any
provision of Lessee's Certificate of Incorporation or bylaws; or (ii) result in
any breach of, constitute a default under or result in the creation of any lien,
charge, security interest or other encumbrance upon any Equipment pursuant to
any indenture, mortgage, deed of trust, bank loan or credit agreement or other
instrument (other than this Agreement) to which Lessee is a party.

<Page>

     (e) There are no suits or proceedings pending or threatened in court or
before any commission, board or other administrative agency against or affecting
Lessee, which if decided against Lessee will have a material adverse effect on
the ability of Lessee to fulfill its obligations under this Agreement.

     (f) The Equipment accepted under any Certificate of Acceptance is and will
remain tangible personal property.

     (g) Each financial statement delivered to Lessor has been prepared in
accordance with generally accepted accounting principles consistently applied.
Since the date of the most recent financial statement, there has been no
material adverse change.

     (h) Lessee's exact legal name is as set forth in the first sentence of this
Agreement and Lessee is and will be at all times validly existing and in good
standing under the laws of the State of its incorporation (specified in the
first sentence of this Agreement).

     (i) The Equipment will at all times be used for commercial or business
purposes.

16.  OWNERSHIP FOR TAX PURPOSES, GRANT OF SECURITY INTEREST; USURY SAVINGS:

     (a) For income tax purposes, the parties hereto agree that it is their
mutual intention that Lessee shall be considered the owner of the Equipment.
Accordingly, Lessor agrees (i) to treat Lessee as the owner of the Equipment on
its federal income tax return, (ii) not to take actions or positions
inconsistent with such treatment on or with respect to its federal income tax
return, and (iii) not to claim any tax benefits available to an owner of the
Equipment on or with respect to its federal income tax return. The foregoing
undertakings by Lessor shall not be violated by Lessor's taking a tax position
inconsistent with the foregoing sentence to the extent such a position is
required by law or is taken through inadvertence so long as such inadvertent tax
position is reversed by Lessor promptly upon its discovery. Lessor shall in no
event be liable to Lessee if Lessee fails to secure any of the tax benefits
available to the owner of the Equipment.

     (b) Lessee hereby grants to Lessor a first security interest in the
Equipment, together with all additions, attachments, accessions, accessories and
accessions thereto whether or not furnished by the Supplier of the Equipment and
any and all substitutions, replacements or exchanges therefor, and any and all
insurance and/or other proceeds of the property in and against which a security
interest is granted hereunder. Notwithstanding anything to the contrary
contained elsewhere in this Agreement, to the extent that Lessor asserts a
purchase money security interest in any items of Equipment ("PMSI EQUIPMENT"):
(i) the PMSI Equipment shall secure only those sums which have been advanced by
Lessor for the purchase of the PMSI Equipment, or the acquisition of rights
therein, or the use thereof (the "PMSI INDEBTEDNESS"), and (ii) no other
Equipment shall secure the PMSI Indebtedness.

     (c) It is the intention of the parties hereto to comply with any applicable
usury laws to the extent that any Schedule is determined to be subject to such
laws; accordingly, it is agreed that, notwithstanding any provision to the
contrary in any Schedule or this Agreement, in no event shall any Schedule
require the payment or permit the collection of interest in excess of the
maximum amount permitted by applicable law. If any such excess interest is
contracted for, charged or received under any Schedule or this Agreement, or in
the event that all of the principal balance shall be prepaid, so that under any
of such circumstances the amount of interest contracted for, charged or received
under any Schedule or this Agreement shall exceed the maximum amount of interest
permitted by applicable law, then in such event (i) the provisions of this
paragraph shall govern and control, (ii) neither Lessee nor any other person or
entity now or hereafter liable for the payment hereof shall be obligated to pay
the amount of such interest to the extent that it is in excess of the maximum
amount of interest permitted by applicable law, (iii) any such excess which may
have been collected shall be either applied as a credit against the then unpaid
principal balance or refunded to Lessee, at the option of the Lessor, and (iv)
the effective rate of interest shall be automatically reduced to the maximum
lawful contract rate allowed under applicable law as now or hereafter construed
by the courts having jurisdiction thereof. It is further agreed that without
limitation of the foregoing, all calculations of the rate of interest contracted
for, charged or received under any Schedule or this Agreement which are made for
the purpose of determining whether such rate exceeds the maximum lawful contract
rate, shall be made, to the extent permitted by applicable law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the full
stated term of the indebtedness evidenced hereby, all interest at any time
contracted for, charged or received from Lessee or otherwise by Lessor in
connection with such indebtedness; provided, however, that if any applicable
state law is amended or the law of the United States of America preempts any
applicable state law, so that it becomes lawful for Lessor to receive a greater
interest per annum rate than is presently allowed, the Lessee agrees that, on
the effective date of such amendment or preemption, as the case may be, the
lawful maximum hereunder shall be increased to the maximum interest per annum
rate allowed by the amended state law or the law of the United States of
America.

<Page>

17.  EARLY TERMINATION:

     (a) On or after the First Termination Date (specified in the applicable
Schedule), Lessee may, so long as no default exists hereunder, terminate this
Agreement as to all (but not less than all) of the Equipment on such Schedule as
of a rent payment date ("TERMINATION DATE"). Lessee must give Lessor at least
ninety (90) days prior written notice of the termination.

     (b) Lessee shall, and Lessor may, solicit cash bids for the Equipment on an
AS IS, WHERE IS BASIS without recourse to or warranty from Lessor, express or
implied ("AS IS BASIS"). Prior to the Termination Date, Lessee shall (i) certify
to Lessor any bids received by Lessee and (ii) pay to Lessor (A) the Termination
Value (calculated as of the rent due on the Termination Date) for the Equipment,
and (B) all rent and other sums due and unpaid as of the Termination Date.

     (c) If all amounts due hereunder have been paid on the Termination Date,
Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the highest
bidder and (ii) refund the proceeds of such sale (net of any related expenses)
to Lessee up to the amount of the Termination Value. If such sale is not
consummated, no termination shall occur and Lessor shall refund the Termination
Value (less any expenses incurred by Lessor) to Lessee.

     (d) Notwithstanding the foregoing, Lessor may elect by written notice, at
any time prior to the Termination Date, not to sell the Equipment. In that
event, on the Termination Date Lessee shall (i) return the Equipment (in
accordance with Section 9) and (ii) pay to Lessor all amounts required under
Section 17(b) less the amount of the highest bid certified by Lessee to Lessor.

18.  EARLY PURCHASE OPTION:

     (a) Lessee may purchase on an AS IS BASIS all (but not less than all) of
the Equipment on any Schedule on any Rent Payment Date after the First
Termination Date specified in the applicable Schedule but prior to the last Rent
Payment Date of such Schedule (the "EARLY PURCHASE DATE"), for a price equal to
(i) the Termination Value (calculated as of the Early Purchase Date) for the
Equipment, and (ii) all rent and other sums due and unpaid as of the Early
Purchase Date (the "EARLY OPTION PRICE"), plus all applicable sales taxes.
Lessee must notify Lessor of its intent to purchase the Equipment in writing at
least thirty (30) days, but not more than two hundred seventy (270) days, prior
to the Early Purchase Date. If Lessee is in default or if the Schedule or this
Agreement has already been terminated, Lessee may not purchase the Equipment.
(The purchase option granted by this subsection shall be referred to herein as
the "EARLY PURCHASE OPTION").

     (b) If Lessee exercises its Early Purchase Option, then on the Early
Purchase Date, Lessee shall pay to Lessor any rent and other sums due and unpaid
on the Early Purchase Date and Lessee shall pay the Early Option Price, plus all
applicable sales taxes, to Lessor in cash.

19.  END OF LEASE PURCHASE OPTION: Lessee may, at lease expiration, purchase all
(but not less than all) of the Equipment on any Schedule on an AS IS BASIS for
cash equal to the amount indicated on such Schedule (the "OPTION PAYMENT"), plus
all applicable sales taxes. The Option Payment, plus all applicable sales taxes,
shall be due and payable in immediately available funds on the expiration date
of such Schedule. Lessee must notify Lessor of its intent to purchase the
Equipment in writing at least one hundred eighty (180) days prior to the
expiration date of the Schedule. If Lessee is in default, or if the Schedule or
this Agreement has already been terminated, Lessee may not purchase the
Equipment.

20.  MISCELLANEOUS:

     (a) LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF
THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING TO THE
SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE
RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT. THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT,
ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

<Page>

     (b) Any cancellation or termination by Lessor of this Agreement, any
Schedule, supplement or amendment hereto, or the lease of any Equipment
hereunder shall not release Lessee from any then outstanding obligations to
Lessor hereunder. All Equipment shall at all times remain personal property even
though it may be attached to real property. The Equipment shall not become part
of any other property by reason of any installation in, or attachment to, other
real or personal property.

     (c) Time is of the essence of this Agreement. Lessor's failure at any time
to require strict performance by Lessee of any of the provisions hereof shall
not waive or diminish Lessor's right at any other time to demand strict
compliance with this Agreement. Lessee agrees, upon Lessor's request, to
execute, or otherwise authenticate, any document, record or instrument necessary
or expedient for filing, recording or perfecting the interest of Lessor or to
carry out the intent of this Agreement. In addition, Lessee hereby authorizes
Lessor to file a financing statement and amendments thereto describing the
Equipment described in any and all Schedules now and hereafter executed pursuant
hereto and adding any other collateral described therein and containing any
other information required by the applicable Uniform Commercial Code. Lessee
irrevocably grants to Lessor the power to sign Lessee's name and generally to
act on behalf of Lessee to execute and file financing statements and other
documents pertaining to any or all of the Equipment. All notices required to be
given hereunder shall be deemed adequately given if sent by registered or
certified mail to the addressee at its address stated herein, or at such other
place as such addressee may have specified in writing. This Agreement and any
Schedule and Annexes thereto constitute the entire agreement of the parties with
respect to the subject matter hereof. NO VARIATION OR MODIFICATION OF THIS
AGREEMENT OR ANY WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE VALID
UNLESS IN WRITING AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE PARTIES
HERETO.

     (d) If Lessee does not comply with any provision of this Agreement, Lessor
shall have the right, but shall not be obligated, to effect such compliance, in
whole or in part. All reasonable amounts spent and obligations incurred or
assumed by Lessor in effecting such compliance shall constitute additional rent
due to Lessor. Lessee shall pay the additional rent within five days after the
date Lessor sends notice to Lessee requesting payment. Lessor's effecting such
compliance shall not be a waiver of Lessee's default.

     (e) Any rent or other amount not paid to Lessor when due shall bear
interest, from the due date until paid, at the lesser of eighteen percent (18%)
per annum or the maximum rate allowed by law. Any provisions in this Agreement
and any Schedule that are in conflict with any statute, law or applicable rule
shall be deemed omitted, modified or altered to conform thereto.

     (f) Lessee hereby irrevocably authorizes Lessor to adjust the Capitalized
Lessor's Cost up or down by no more than ten percent [10%] within each Schedule
to account for equipment change orders, equipment returns, invoicing errors, and
similar matters. Lessee acknowledges and agrees that the rent shall be adjusted
as a result of the change in the Capitalized Lessor's Cost. Lessor shall send
Lessee a written notice stating the final Capitalized Lessor's Cost, if it has
changed.

     (g) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT.

     (h) Any cancellation or termination by Lessor, pursuant to the provisions
of this Agreement, any Schedule, supplement or amendment hereto, of the lease of
any Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder.

     (i) To the extent that any Schedule would constitute chattel paper, as such
term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction, no security interest therein may be created through the transfer
or possession of this Agreement in and of itself without the transfer or
possession of the original of a Schedule executed pursuant to this Agreement and
incorporating this Agreement by reference; and no security interest in this
Agreement and a Schedule may be created by the transfer or possession of any
counterpart of the Schedule other than the original thereof, which shall be
identified as the document marked Original and all other counterparts shall be
marked Duplicate.

<Page>

     IN WITNESS WHEREOF, Lessee and Lessor have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                         LESSEE:

GENERAL ELECTRIC CAPITAL CORPORATION            DYAX CORP.

By:  /s/ John Edel                              By:  /s/ Stephen S. Galliker
     --------------------------------                ---------------------------

Name: John Edel                                 Name: Stephen S. Galliker
      -------------------------------                 --------------------------

Title: Senior Vice President                    Title: Executive Vice President
       ------------------------------                  -------------------------

<Page>

                                    AMENDMENT

     THIS AMENDMENT is made as of the 27th day of September, 2001, between
General Electric Capital Corporation ("Lessor") and Dyax Corp. ("Lessee") in
connection with that certain Master Lease Agreement, dated or dated as of May 1,
2001 ("Agreement"). The terms of this Amendment are hereby incorporated into the
Agreement as though fully set forth therein. Section references below refer to
the section numbers of the Agreement. The Agreement is hereby amended as
follows:

     PREAMBLE.

     This section is hereby amended and replaced with the following:

          "THIS AGREEMENT is between GENERAL ELECTRIC CAPITAL CORPORATION
          (together with its successors and assigns, if any, "LESSOR") and DYAX,
          CORP. ("LESSEE"). Lessor has an office at 401 Merritt 7 2nd Floor,
          Norwalk, CT 06856. Lessee is a corporation organized and existing
          under the laws of the state of Delaware. Lessee's mailing address and
          chief place of business is One Kendall Square, Building 600,
          Cambridge, Massachusetts 02139. This Agreement contains the general
          terms that apply to the leasing of Equipment from Lessor to Lessee and
          the financing of Leasehold Improvements by Lessor on behalf of Lessee.
          Additional terms that apply to the Equipment and Leasehold
          Improvements (term, rent, options, etc.) shall be contained on a
          schedule covering such Equipment or Leasehold Improvements, as
          applicable (each a "SCHEDULE")."

     1.   LEASING.

     Subsection (a) is hereby amended and replaced with the following:

          "Lessor agrees to lease to Lessee, and Lessee agrees to lease from
          Lessor, the Equipment and Lessor agrees to finance on behalf of the
          Lessee the Leasehold Improvements. As used in this Agreement,
          "Equipment" means any equipment described on any Schedule signed by
          both parties; provided, however, that in no event shall any Leasehold
          Improvements constitute Equipment. As used in this Agreement,
          "Leasehold Improvements" means any of the following items of property
          financed by the Lessor under a Schedule signed by both parties: any
          fixtures (which expressly includes for purposes of this instrument
          fume hoods and laboratory benches), equipment, improvements and
          appurtenances attached to or built into the premises leased by the
          Lessee, as tenant (whether by the landlord at such premises or by the
          Lessee), and any electric, plumbing, heating or sprinkling systems,
          fixtures, outlets, vaults, paneling, molding, shelving, radiator
          enclosures, cork, rubber, linoleum and composition floors,
          ventilating, silencing, air conditioning and cooling equipment located
          at any premises leased by the Lessee, as tenant, whether or not
          attached to or built into such premises."

     Subsection (b) is hereby amended and replaced with the following:

          "Lessor shall purchase Equipment from the manufacturer or supplier
          ("SUPPLIER") and lease it to Lessee if on or before the Last Delivery
          Date (specified in the Schedule) Lessor receives (i) a Schedule for
          the Equipment, (ii) evidence of insurance which complies with the
          requirements of Section 8, and (iii) such other documents as Lessor
          may reasonably request. Lessor shall finance Leasehold Improvements if
          on or before the Last Delivery Date (specified in the Schedule) Lessor
          receives (i) a Schedule for the Leasehold Improvements and (iii) such
          other documents as Lessor may reasonably request. Each of the
          documents required above must be in form and substance satisfactory to
          Lessor. Lessor hereby appoints Lessee its agent for inspection and
          acceptance of the Equipment from the Supplier. Once the Schedule is
          signed, the Lessee may not cancel the Schedule."

     2.   TERM, RENT AND PAYMENT.

     Subsection (a) is hereby amended and replaced with the following:

          "The rent payable for the Equipment or the Leasehold Improvements, as
          applicable, shall begin on the earlier of (i) the date when the Lessee
          signs the Schedule and accepts the Equipment or the Leasehold
          Improvements under such Schedule or (ii) when Lessee has accepted the
          Equipment under a Certificate of Acceptance ("LEASE COMMENCEMENT
          DATE"). The term of this Agreement shall be the period specified in
          the applicable Schedule. The word "term" shall include all basic and
          any renewal terms. The word "rent" as used in this Agreement and the
          Schedules shall mean the periodic rental payment for the Equipment or
          the periodic finance payment for the Leasehold Improvements, as the
          context may require."

     Subsection (c) is hereby amended and replaced with the following:

<Page>

          "Lessor shall not disturb Lessee's quiet enjoyment of the Equipment
          during the term of the Agreement unless a default has occurred and is
          continuing under this Agreement. In no event shall Lessor disturb
          Lessee's quiet enjoyment of the Leasehold Improvements."

     4.   REPORTS.

     Subsection (a) is hereby amended and replaced with the following:

          "If any tax or other lien shall attach to any Equipment, Lessee will
          notify Lessor in writing, within ten (10) days after Lessee becomes
          aware of the tax or other lien. The notice shall include the full
          particulars of the tax or other lien and the location of such
          Equipment on the date of the notice."

     Subsection (b) is hereby amended and replaced with the following:

          "Lessee will deliver to Lessor all Forms 10-K and 10Q, if any, filed
          with the Securities and Exchange Commission within thirty (30) days
          after the date on which they are filed."

     5.   DELIVERY, USE AND OPERATION.

     Subsection (b) is hereby amended and replaced with the following:

          "Lessee agrees that the Equipment will be used by Lessee solely in the
          conduct of its business and in a manner complying with all applicable
          laws, regulations and insurance policies."

     7.   STIPULATED LOSS VALUE.

     This section is hereby amended and replaced with the following:

          "If for any reason any unit of Equipment becomes lost, stolen,
          destroyed, irreparably damaged or permanently unusable ("CASUALTY
          OCCURRENCES") Lessee shall promptly and fully notify Lessor in
          writing. Lessee shall pay Lessor the sum of (i) the Stipulated Loss
          Value (see Schedule) of the affected unit determined as of the rent
          payment date next succeeding the Casualty Occurrence; and (ii) all
          rent and other amounts which are then due under this Agreement on the
          Payment Date (defined below) for the affected unit. The Payment Date
          shall be the rent payment date immediately prior to the Casualty
          Occurrence. Upon payment of all sums due hereunder, the term of this
          lease as to such unit shall terminate."

     8.   INSURANCE.

     Subsection (a) is hereby amended and replaced with the following:

          "As between the Lessor and the Lessee, Lessee shall bear the entire
          risk of any loss, theft, damage to, or destruction of, any unit of
          Equipment from any cause whatsoever from the time the Equipment is
          shipped to Lessee until it is delivered to the Lessor at the end of
          the Term of the applicable Schedule pursuant to Sections 9 and 10 of
          this Agreement."

     Subsection (c) is hereby amended and replaced with the following:

          "Lessee hereby appoints Lessor as Lessee's attorney-in-fact to make
          proof of loss and claim for insurance, and to make adjustments with
          insurers and to receive payment of and execute or endorse all
          documents, checks or drafts in connection with insurance payments.
          Lessor shall not act as Lessees attorney-in-fact unless Lessee is in
          default. In the event Lessee is not in default and damage is not the
          result of a Casualty Occurrence, then Lessee is permitted to make any
          claims adjustments. Lessee shall pay any reasonable expenses of Lessor
          in adjusting or collecting insurance. Unless otherwise stated herein,
          Lessee will not make adjustments with insurers except with respect to
          claims for damage to any unit of Equipment where the repair costs are
          less than the lesser of ten percent (10%) of the original Equipment
          cost or ten thousand and 00/100 dollars ($10,000). During the
          occurrence of a default or in respect of a Casualty Occurrence, Lessor
          may, at its sole option, apply proceeds of insurance, in whole or in
          part, to (i) repair or replace Equipment or any portion thereof, or
          (ii) satisfy any obligation of Lessee to Lessor under this Agreement.

     9.   RETURN OF EQUIPMENT.

<Page>

     Subsection (a) is hereby amended and replaced with the following:

          "At the expiration or termination of any Schedule covering Equipment,
          Lessee will be obligated to take the actions specified in this Section
          9 with respect to the Equipment covered by such Schedule, unless the
          Lessee purchases the Equipment in accordance with the terms of this
          Agreement and such Schedule. Lessee shall perform any testing and
          repairs required to place the units of Equipment in the same condition
          and appearance as when received by Lessee (reasonable wear and tear
          excepted) and in good working order for the original intended purpose
          of the Equipment. If required the units of Equipment shall be
          deinstalled, disassembled and crated by an authorized manufacturer's
          representative or such other service person as is reasonably
          satisfactory to Lessor. Lessee shall remove installed markings that
          are not necessary for the operation, maintenance or repair of the
          Equipment. All Equipment will be cleaned, cosmetically acceptable, and
          in such condition as to be immediately installed into use in a similar
          environment for which the Equipment was originally intended to be
          used. All waste material and fluid must be removed from the Equipment
          and disposed of in accordance with then current waste disposal laws.
          Lessee shall return the units of Equipment to a location within the
          continental United States as Lessor shall direct. Lessee shall obtain
          and pay for a policy of transit insurance for the redelivery period in
          an amount equal to the replacement value of the Equipment. The transit
          insurance must name Lessor as the loss payee. The Lessee shall pay for
          all costs to comply with this section (a)."

     Subsection (b) is hereby amended and replaced with the following:

          "Until Lessee has fully complied with the requirements of Section 9(a)
          above, Lessee's rent payment obligation and all other obligations
          under this Agreement shall continue from month to month
          notwithstanding any expiration or termination of the lease term.
          During any such holdover rental period, Lessor may terminate the
          Lessee's right to use the Equipment upon ten (10) days notice to
          Lessee."

     Subsection (c) is hereby amended and replaced with the following:

          "At the expiration or termination of this Agreement or any Schedule,
          Lessee shall provide to Lessor a detailed inventory of all components
          of the Equipment including model and serial numbers. Lessee shall also
          provide an up-to-date copy of all other documentation pertaining to
          the Equipment. All service manuals, blue prints, process flow
          diagrams, operating manuals, inventory and maintenance records shall
          be given to Lessor at lease termination."

     10.  DEFAULT AND REMEDIES.

     Subsection (a) is hereby amended and replaced with the following:

          "Lessor may in writing declare this Agreement in default if: (i)
          Lessee breaches its obligation to pay rent or any other sum when due
          and fails to cure the breach within ten (10) days; (ii) Lessee
          breaches any of its insurance obligations under Section 8; (iii)
          Lessee breaches any of its other obligations under this Agreement or
          any Schedule and fails to cure that breach within thirty (30) days
          after written notice from Lessor; (iv) any representation or warranty
          made by Lessee in connection with this Agreement shall be false or
          misleading in any material respect when made; (v) Lessee or any
          guarantor or other obligor for the Lessee's obligations hereunder
          ("GUARANTOR") becomes insolvent or ceases to do business as a going
          concern; (vi) any Equipment is illegally used; (vii) if Lessee or any
          Guarantor is a natural person, any death or incompetency of Lessee or
          such Guarantor; or (viii) a petition is filed by or against Lessee or
          any Guarantor under any bankruptcy or insolvency laws and in the event
          of an involuntary petition, the petition is not dismissed within sixty
          (60) days of the filing date. The default declaration shall apply to
          all Schedules unless specifically excepted by Lessor."

     Subsection (b) is hereby amended and replaced with the following:

          "Upon the occurrence of a default, Lessor may, at its sole option,
          exercise one or more of the remedies set forth in this Section 10(b).
          After a default, at the request of Lessor, Lessee shall comply with
          the provisions of Section 9(a). Lessee hereby authorizes Lessor to
          peacefully enter any premises where any Equipment may be and take
          possession of the Equipment. Upon demand by the Lessor, Lessee shall
          immediately pay to Lessor as liquidated damages for loss of a bargain
          and not as a penalty, the Stipulated Loss Value of the Equipment and
          the Leasehold Improvements in each case, (calculated as of the rent
          payment date next succeeding the declaration of default), and all
          rents and other sums then due under this Agreement and all Schedules.
          Lessor may terminate this Agreement as to any or all of the Equipment.
          A termination shall occur only upon written notice by Lessor to Lessee
          and only as to the units of Equipment specified in any such notice.
          Lessor may, but shall not be required to, sell Equipment at private or
          public sale, in bulk or in parcels and without having the Equipment
          present at the place of sale. Lessor may also, but shall not be
          required to, lease, otherwise

<Page>

          dispose of or keep idle all or part of the Equipment. Lessor may use
          Lessee's premises for a reasonable period of time for any or all of
          the purposes stated above without liability for rent, costs, damages
          or otherwise. The proceeds of sale, lease or other disposition, if
          any, shall be applied in the following order of priorities: (i) to pay
          all of Lessor's costs, charges and expenses incurred in taking,
          removing, holding, repairing and selling, leasing or otherwise
          disposing of Equipment; then, (ii) to the extent not previously paid
          by Lessee, to pay Lessor all sums due from Lessee under this
          Agreement; then (iii) to reimburse to Lessee any sums previously paid
          by Lessee as liquidated damages; and then (iv) to Lessee, if there
          exists any surplus. Lessee shall immediately pay any deficiency in (i)
          and (ii) above."

     Subsection (c) is hereby amended and replaced with the following:

          "The foregoing remedies are cumulative, and any or all thereof may be
          exercised instead of or in addition to each other or any remedies at
          law, in equity, or under statute. If notice of any sale or other
          disposition hereunder by Lessor is required by applicable law, the
          parties agree that ten (10) days notice of any sale or disposition
          shall be considered commercially reasonable. Lessee shall pay Lessor's
          actual attorney's fees incurred in connection with the enforcement,
          assertion, defense or preservation of Lessor's rights and remedies
          under this Agreement, or if prohibited by law, such lesser sum as may
          be permitted. Waiver of any default shall not be a waiver of any other
          or subsequent default."

     11.  ASSIGNMENT.

     This section is hereby amended and replaced with the following:

          "LESSEE SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER OR SUBLET ANY
          EQUIPMENT OR THE INTEREST OF LESSEE IN THE EQUIPMENT WITHOUT THE PRIOR
          WRITTEN CONSENT OF LESSOR, UNLESS LESSEE SUBLETS THE EQUIPMENT OR
          LEASEHOLD IMPROVEMENTS TO BIOTAGE, INC.. Lessor may, without the
          consent of Lessee, assign this Agreement, any Schedule or the right to
          enter into a Schedule. Lessee agrees that if Lessee receives written
          notice of an assignment from Lessor, Lessee will pay all rent and all
          other amounts payable under any assigned Schedule to such assignee or
          as instructed by Lessor. Lessee also agrees to confirm in writing
          receipt of the notice of assignment as may be reasonably requested by
          assignee. Lessee hereby waives and agrees not to assert against any
          such assignee any defense, set-off, recoupment claim or counterclaim
          which Lessee has or may at any time have against Lessor for any reason
          whatsoever."

     12.  NET LEASE.

     This section is hereby amended and replaced with the following:

          "Lessee is unconditionally obligated to pay all rent and other amounts
          due for the entire lease term no matter what happens, even if the
          Equipment or any Leasehold Improvement is damaged or destroyed, if it
          is defective or if Lessee no longer can use it. Lessee is not entitled
          to reduce or set-off against rent or other amounts due to Lessor or to
          anyone to whom Lessor assigns this Agreement or any Schedule whether
          Lessees claim arises out of this Agreement, any Schedule, any
          statement by Lessor, Lessors liability or any manufacturers liability,
          strict liability, negligence or otherwise."

     13.  INDEMNIFICATION.

     Subsection (a) is hereby amended and replaced with the following:

          "Lessee hereby agrees to indemnify Lessor, its agents, employees,
          successors and assigns (on an after tax basis) from and against any
          and all losses, damages, penalties, injuries, claims, actions and
          suits, including legal expenses, of whatsoever kind and nature arising
          out of or relating to the Equipment or the Leasehold Improvements or
          this Agreement, except to the extent the losses, damages, penalties,
          injuries, claims, actions, suits or expenses result from Lessors gross
          negligence or willful misconduct ("CLAIMS"). This indemnity shall
          include, but is not limited to, Lessor's strict liability in tort and
          Claims, arising out of (i) the selection, manufacture, purchase,
          acceptance or rejection of Equipment or Leasehold Improvements, the
          ownership of Equipment or Leasehold Improvements during the term of
          this Agreement, and the delivery, lease, possession, maintenance,
          uses, condition, return or operation of Equipment or Leasehold
          Improvements (including, without limitation, latent and other defects,
          whether or not discoverable by Lessor or Lessee and any claim for
          patent, trademark or copyright infringement or environmental damage)
          or (ii) the condition of Equipment or Leasehold Improvements sold or
          disposed of after use by Lessee, any sublessee or employees of Lessee.
          Lessee shall, upon request, defend any actions based on, or arising
          out of, any of the foregoing."

     14.  DISCLAIMER.

     This section is hereby amended and replaced with the following:

          "LESSEE ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT AND LEASEHOLD
          IMPROVEMENTS WITHOUT ANY ASSISTANCE FROM LESSOR, ITS AGENTS OR
          EMPLOYEES. LESSOR DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO
          MAKE OR HAVE MADE, ANY
<Page>

          WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR
          ORAL, WITH RESPECT TO THE EQUIPMENT AND LEASEHOLD IMPROVEMENTS LEASED
          UNDER THIS AGREEMENT OR ANY COMPONENT THEREOF, INCLUDING, WITHOUT
          LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
          QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY
          PURPOSE, USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT
          INFRINGEMENT, OR TITLE. All such risks, as between Lessor and Lessee,
          are to be borne by Lessee. Without limiting the foregoing, Lessor
          shall have no responsibility or liability to Lessee or any other
          person with respect to any of the following: (i) any liability, loss
          or damage caused or alleged to be caused directly or indirectly by any
          Equipment or Leasehold Improvement, any inadequacy thereof, any
          deficiency or defect (latent or otherwise) of the Equipment or
          Leasehold Improvement, or any other circumstance in connection with
          the Equipment or Leasehold Improvement; (ii) the use, operation or
          performance of any Equipment or Leasehold Improvement or any risks
          relating thereto; (iii) any interruption of service, loss of business
          or anticipated profits or consequential damages; or (iv) the delivery,
          operation, servicing, maintenance, repair, improvement or replacement
          of any Equipment or Leasehold Improvement. If, and so long as, no
          default exists under this Agreement, Lessee shall be, and hereby is,
          authorized during the term of this Agreement to assert and enforce,
          whatever claims and rights Lessor may have against any Supplier of the
          Equipment or Leasehold Improvement at Lessee's sole cost and expense,
          in the name of and for the account of Lessor and/or Lessee, as their
          interests may appear."

     15.  REPRESENTATIONS AND WARRANTIES OF LESSEE.

     Subsection (a) is hereby amended and replaced with the following:

          "Lessee has adequate power and capacity to enter into, and perform
          under, this Agreement and all related documents (together, the
          "DOCUMENTS"). Lessee is duly qualified to do business wherever
          necessary to carry on its present business and operations, including
          the jurisdiction(s) where the Equipment is or is to be located, except
          where the failure to so qualify could not reasonably be expected to
          have a material adverse effect on the business or financial condition
          of the Lessee."

     Subsection (e) is hereby amended and replaced with the following:

          "There are no suits or proceedings pending or overtly threatened in
          writing in court or before any commission, board or other
          administrative agency against or affecting Lessee, which if decided
          against Lessee will have a material adverse effect on the ability of
          Lessee to fulfill its obligations under this Agreement."

     Subsection (g) is hereby amended and replaced with the following:

          "Each financial statement delivered to Lessor has been prepared in
          accordance with generally accepted accounting principles consistently
          applied. Since the date of the most recent financial statement, there
          has been no material adverse change in the financial condition of the
          Lessee."

     16.  OWNERSHIP FOR TAX PURPOSES, GRANT OF SECURITY INTEREST; USURY SAVINGS.

     Subsection (a) is hereby amended and replaced with the following:

          "For income tax purposes, the parties hereto agree that it is their
          mutual intention that Lessee shall be considered the owner of the
          Equipment. Accordingly, Lessor agrees (i) to treat Lessee as the owner
          of the Equipment on its federal income tax return, (ii) not to take
          actions or positions inconsistent with such treatment on or with
          respect to its federal income tax return, and (iii) not to claim any
          tax benefits available to an owner of the Equipment on or with respect
          to its federal income tax return. The foregoing undertakings by Lessor
          shall not be violated by Lessor's taking a tax position inconsistent
          with the foregoing sentence to the extent such a position is required
          by law or is taken through inadvertence so long as such inadvertent
          tax position is reversed by Lessor promptly upon its discovery. Lessor
          shall in no event be liable to Lessee if Lessee fails to secure any of
          the tax benefits available to the owner of the Equipment, unless such
          failure is caused by Lessor's failure to comply with this Section
          16(a)."

     Subsection (b) is hereby amended and replaced with the following:

          "Lessee hereby grants to Lessor a first security interest in the
          Equipment, together with all additions, attachments, accessions,
          accessories and accessions thereto whether or not furnished by the
          Supplier of the Equipment and any and all substitutions, replacements
          or exchanges therefor, and any and all insurance and/or other proceeds
          of the property in and against which a security interest is granted
          hereunder. Notwithstanding anything to the contrary contained
          elsewhere in this Agreement, to the extent that Lessor asserts a
          purchase money security interest in any items of Equipment ("PMSI
          EQUIPMENT"): (i) the PMSI Equipment shall secure only those sums which
          have been advanced by Lessor for the purchase

<Page>

          of the PMSI Equipment, or the acquisition of rights therein, or the
          use thereof (the "PMSI INDEBTEDNESS"), and (ii) no other Equipment
          shall secure the PMSI Indebtedness. Notwithstanding anything to the
          contrary set forth in this Agreement or any Schedule, Lessor
          acknowledges and agrees that (i) Lessor is merely financing the cost
          of the Leasehold Improvements on behalf of Lessee and is not leasing
          them to Lessee and in no event shall Lessor be deemed to have any
          ownership or other interest in the Leasehold Improvements and (ii) in
          no event shall the Equipment include, and the Lessee shall not be
          deemed to have granted to Lessor a security interest in, any rights,
          interests or property to the extent that such a grant would, under the
          terms of the MIT Lease (as hereinafter defined) result in a breach of
          the terms of, or constitute a default under, or cause a termination of
          the MIT Lease. As used herein, the term "MIT Lease" means that certain
          Indenture of Lease dated as of June 13, 2001 between Lessee, as
          Tenant, and Massachusetts Institute of Technology, as Landlord, as it
          may be amended, supplemented, extended or replaced from time to time."

     17.  EARLY TERMINATION.

     Subsection (c) is hereby amended and replaced with the following:

          "If all amounts due hereunder have been paid on the Termination Date,
          Lessor shall (i) sell the Equipment on an AS IS BASIS for cash to the
          highest bidder and (ii) refund the proceeds of such sale (net of any
          related expenses) to Lessee up to the amount of the Termination Value.
          If such sale is not consummated within twelve (12) months, no
          termination shall occur and Lessor shall refund the Termination Value
          (less any expenses incurred by Lessor) to Lessee."

     19.  EARLY TERMINATION.

     This section is hereby amended and replaced with the following:

          "Lessee may, at lease expiration, purchase all (but not less than all)
          of the Equipment on any Schedule on an AS IS BASIS for cash equal to
          the amount indicated on such Schedule (the "OPTION PAYMENT"), plus all
          applicable sales taxes. The Option Payment, plus all applicable sales
          taxes, shall be due and payable in immediately available funds on the
          expiration date of such Schedule. Unless the Option Payment under a
          Schedule is $1.00, Lessee must notify Lessor of its intent to purchase
          the Equipment subject to such Schedule in writing at least one hundred
          eighty (180) days prior to the expiration date of the Schedule. If
          Lessee is in default, or if the Schedule or this Agreement has already
          been terminated, Lessee may not purchase the Equipment."

     20.  MISCELLANEOUS.

     Subsection (a) is hereby amended and replaced with the following:

          "LESSEE AND LESSOR UNCONDITIONALLY WAIVE THEIR RIGHTS TO A JURY TRIAL
          OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
          AGREEMENT, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE
          AND LESSOR RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY
          RELATED TRANSACTIONS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
          ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT.
          THIS WAIVER IS IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER
          ORALLY OR IN WRITING. THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT
          AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT,
          ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
          RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS
          AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT."

     Subsection (e) is hereby amended and replaced with the following:

          "Any rent or other amount not paid to Lessor within ten (10) days
          after the date when due shall bear interest, from the date which is
          ten (10) days after the due date until paid, at the lesser of eighteen
          percent (18%) per annum or the maximum rate allowed by law. Any
          provisions in this Agreement and any Schedule that are in conflict
          with any statute, law or applicable rule shall be deemed omitted,
          modified or altered to conform thereto."

     Subsection (h) is hereby deleted in its entirety.

     Subsection (i) is now known as subsection (h).

     TERMS USED, BUT NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS GIVEN
TO THEM IN THE AGREEMENT. EXCEPT AS EXPRESSLY AMENDED HEREBY, THE AGREEMENT
SHALL REMAIN IN FULL FORCE AND EFFECT.

<Page>

IF THERE IS ANY CONFLICT BETWEEN THE PROVISIONS OF THE AGREEMENT AND THIS
AMENDMENT, THEN THIS AMENDMENT SHALL CONTROL.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment
simultaneously with the Agreement by signature of their respective authorized
representative set forth below.

GENERAL ELECTRIC CAPITAL CORPORATION         DYAX CORP.

By: /s/ John Edel                            By:  /s/ Stephen S. Galliker
    -----------------------------------           ------------------------------

Name: John Edel                              Name: Stephen S. Galliker
      ---------------------------------            -----------------------------

Title: Senior Vice President                 Title: Executive Vice President
       --------------------------------             ----------------------------

<Page>

                  CROSS-COLLATERAL AND CROSS-DEFAULT AGREEMENT

General Electric Capital Corporation
401 Merritt 7 2nd Floor
Norwalk, CT 06856

Gentlemen:

     You (and/or your successors or assigns, "YOU") have entered into or
purchased one or more conditional sale contracts, lease agreements, chattel
mortgages, security agreements, notes and other choses in action (herein
designated "ACCOUNTS") arising from the bona fide sale or lease to us, by
various vendors or lessors, of equipment described in the agreements evidencing
such Accounts (herein designated "COLLATERAL") and/or you have made direct loans
to or otherwise extended credit to us evidenced by Accounts creating security
interests in Collateral.

     In order to induce you to extend our time of payment on one or more
Accounts and/or to make additional loans to us and/or to purchase additional
Accounts and/or to lease us additional equipment, and in consideration of you so
doing, and for other good and valuable consideration, the receipt of which we
hereby acknowledge, we agree as follows:

     All presently existing and hereafter acquired Collateral in which you have
or shall have a security interest shall secure the payment and performance of
all of our liabilities and obligations to you of every kind and character,
whether joint or several, direct or indirect, absolute or contingent, due or to
become due, and whether under presently existing or hereafter created Accounts
or agreements, or otherwise.

     We further agree that your security interest in the property covered by any
Account now held or hereafter acquired by you shall not be terminated in whole
or in part until and unless all indebtedness of every kind, due or to become
due, owed by us to you is fully paid and satisfied and the terms of every
Account have been fully performed by us. It is further agreed that you are to
retain your security interest in all property covered by all Accounts held or
acquired by you, as security for payment and performance under each such
Account, notwithstanding the fact that one or more of such Accounts may become
fully paid. However, when all of the obligations evidenced by the Accounts have
been paid in full, your security interest in the Collateral shall terminate and,
by your acceptance of this instrument, you agree to execute appropriate releases
of liens on the Collateral at our request and expense.

     This instrument is intended to create cross-default and cross-security
between and among all the within described Accounts now owned or hereafter
acquired by you.

     A default under any Account shall be deemed to be a default under all other
Accounts.

     All rights granted to you hereunder shall be cumulative and not
alternative, shall be in addition to and shall in no manner impair or affect
your rights and remedies under any existing Account, agreement, statute or rule
of law.

     This agreement may not be varied or altered nor its provisions waived
except by your duly executed written agreement. This agreement shall inure to
the benefit of your successors and assigns and shall be binding upon our heirs,
administrators, executors, legal representatives, successors and assigns.

     Notwithstanding anything to the contrary set forth in this Cross-Collateral
and Cross-Default Agreement, or any Account, by your acceptance of this
instrument, you acknowledge and agree that in no event shall the Collateral
include, and we shall not be deemed to have granted to you a security interest
in, any Leasehold Improvements or any rights, interests or property to the
extent that such a grant would, under the terms of the MIT Lease, result in a
breach of the terms of, or constitute a default under or cause a termination of,
the MIT Lease. Capitalized terms used but not otherwise defined herein shall
have the meanings attributed to them in that certain Master Lease Agreement
dated as of May 1, 2001 between you and the undersigned.

     IN WITNESS WHEREOF, this agreement is executed this 1st day of May, 2001.

<Page>

                       DYAX CORP.
                       (Name of Proprietorship, Partnership or
                        Corporation, as applicable)

                       By: /s/ Stephen S. Galliker
                           ---------------------------------------------

                                    (Signature)

                       Title: Executive Vice President
                              ------------------------------------------

                                    (Owner, Partner or Officer, as applicable)

                       Address: One Kendall Square Building 600,
                                Cambridge, MA 02139

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