Document:

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                                                                    Exhibit 4.14

                             CABOT INDUSTRIAL TRUST

                             ARTICLES SUPPLEMENTARY

                                1,800,000 SHARES

              8.5% SERIES F CUMULATIVE REDEEMABLE PREFERRED SHARES

      Cabot Industrial Trust, a Maryland real estate investment trust (the
"Company"), hereby certifies to the State Department of Assessments and Taxation
of Maryland (the "Department") that:

            FIRST: Under a power contained in Article 2, Section 1 of the
Amended and Restated Declaration of Trust of the Company, filed with, and
accepted for record by, the State Department of Assessments and Taxation of
Maryland (the "SDAT") on January 26, 1998, as supplemented by Articles
Supplementary tiled with, and accepted for record by, the SDAT, respectively, on
July 10. 1998, on April 29, 1999, on September 3, 1999, on September 27, 1999
and on December 9, 1999 and as corrected by that certain Certificate of
Correction filed with, and accepted for record by, the SDAT on October 12, 1999
(as supplemented and corrected, the "Charter"). the Board of Trustees of the
Company, as required by Section 8-203(b) of the Corporations and Associations
Article of the Annotated Code of Maryland, has unanimously adopted resolutions
classifying and designating 1,800,000 unissued shares of beneficial interest as
8.5% Series F Cumulative Redeemable Preferred Shares, par value $0.01 per share,
with the following preferences, conversion and other rights, voting powers,
restrictions, limitations as to dividends and other distributions,
qualifications and terms and conditions of redemption, and other terms and
conditions, which upon any restatement of the Charter shall be made part of
Article 2 of the Charter, with any necessary or appropriate changes to the
enumeration and lettering thereof.

            SECOND:The following is a description of the 8.5% Series F
Cumulative Redeemable Preferred Shares, including the preferences. conversion
and other rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemption thereof:

              8.5% SERIES F CUMULATIVE REDEEMABLE PREFERRED SHARES

      SECTION 1. Designation and Number. A series of preferred shares,
designated the "8.5% Series F Cumulative Redeemable Preferred Shares" (the
"Series F Preferred Shares") is hereby established. The number of shares of
Series F Preferred Shares shall be 1,800,000, par value $0.01 per share.

      SECTION 2. Rank. The Series F Preferred Shares shall, with respect to
distributions and rights upon voluntary or involuntary liquidation, winding-up
or dissolution of the Company, rank senior to all classes or series of common
shares and to all classes or series of equity securities of the Company now or
hereafter authorized, issued or outstanding, other than any class or series of
equity securities of the Company expressly designated as ranking on a parity
with or senior to the Series F Preferred Shares as to distributions and rights
upon voluntary or involuntary liquidation, winding-tip or dissolution of the
Company. For purposes of these Articles Supplementary, the term "Parity
Preferred Shares" shall be used to refer to any class or series of equity
securities of the Company now or hereafter authorized, issued or outstanding
expressly designated by the Company to rank on a parity with the Series F
Preferred Shares with respect to distributions and rights upon voluntary or
involuntary liquidation, winding-up or dissolution of the Company, including
specifically the Series B Cumulative Redeemable Preferred Shares, the Series C
Cumulative Redeemable Preferred Shares, the Series D Cumulative Redeemable
Preferred Shares, and the Series E Cumulative Redeemable Preferred Shares. The
term "equity securities" does not include debt securities, which will rank
senior to the Series F Preferred Shares prior to conversion.

      SECTION 3. Distributions.

      (a) Payment of Distributions. Subject to the rights of holders of Parity
Preferred Shares and holders of equity securities ranking senior to the Series F
Preferred Shares as to payment of distributions, holders of Series F Preferred
Shares will be entitled to receive, when, as and if declared by the Board of
Trustees of the Company, out
<PAGE>

of funds legally available for the payment of distributions, cumulative
preferential cash distributions at the rate per annum of 8.5% of the $25
liquidation preference per Series F Preferred Share. Such distributions shall be
cumulative, shall accrue from the original date of issuance and will be payable
(i) quarterly in arrears, on March 25, June 25, September 25 and December 25 of
each year commencing on the first of such dates to occur after the original date
of issuance and, (ii) in the event of a redemption, on the redemption date (each
a "Preferred Shares Distribution Payment Date"). The amount of the distribution
payable for any period will be computed on the basis of a 360-day year of twelve
30-day months and for any period shorter than a full quarterly period for which
distributions are computed, the amount of the distribution payable will be
computed on the basis of the actual number of days elapsed in such period. If
any date on which distributions are to be made on the Series F Preferred Shares
is not a Business Day (as defined herein), then payment of the distribution to
be made on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay)
except that, if such Business Day is in the next succeeding calendar year, such
payment shall be made on the immediately preceding Business Day, in each case
with the same force and effect as if made on such date. Distributions on the
Series F Preferred Shares will be made to the holders of record of the Series F
Preferred Shares on the relevant record dates, which, unless otherwise provided
by the Company with respect to any distribution, will be fifteen (15) Business
Days prior to the relevant Preferred Shares Distribution Payment Date (each a
"Distribution Record Date"). Notwithstanding anything to the contrary set forth
herein, each Series F Preferred Share shall also continue to accrue all accrued
and unpaid distributions up to the exchange date on any Series F Preferred Unit
(as defined in the Second Amended and Restated Agreement of Limited Partnership
of Cabot Industrial Properties, L.P., dated as of February 4, 1998 (as amended
through the date hereof, the "Partnership Agreement") validly exchanged into
such Series F Preferred Share in accordance with the provisions of such
Partnership Agreement.

      The term "Business Day" shall mean each day, other than a Saturday or a
Sunday, which is not a day on which banking institutions in New York, New York
are authorized or required by law, regulation or executive order to close.

      (b) Limitation on Distributions. No distributions on the Series F
Preferred Shares shall be declared or paid or set apart for payment by the
Company at such time as the terms and provisions of any agreement of the
Company, including any agreement relating to its indebtedness, prohibits such
declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration, payment or setting
apart for payment shall be restricted or prohibited by law.

      (c) Distributions Cumulative. Notwithstanding the foregoing, distributions
on the Series F Preferred Shares will accrue whether or not the terms and
provisions set forth in Section 3(b) hereof at any time prohibit the current
payment of distributions, whether or not the Company has earnings, whether or
not there are funds legally available for the payment of such distributions and
whether or not such distributions are authorized or declared. Accrued but unpaid
distributions on the Series F Preferred Shares will accumulate as of the
Preferred Shares Distribution Payment Date on which they first become payable.
Accumulated and unpaid distributions will not bear interest.

      (d) Priority as to Distributions. (i) So long as any Series F Preferred
Shares are outstanding, no distribution of cash or other property shall be
authorized, declared, paid or set apart for payment on or with respect to any
class or series of common shares or any class or series of other Shares of the
Company ranking junior as to the payment of distributions or rights upon
voluntary or involuntary dissolution, liquidation or winding up of the Company
to the Series F Preferred Shares (such common shares or other junior Shares,
including, without limitation Series A Junior Participating Preferred Shares
authorized pursuant to Articles Supplementary filed with the SDAT on July 10,
1998, collectively, "Junior Shares"), nor shall any cash or other property be
set aside for or applied to the purchase, redemption or other acquisition for
consideration of any Series F Preferred Shares, any Parity Preferred Shares or
any Junior Shares, unless, in each case, all distributions accumulated on all
Series F Preferred Shares and all classes and series of outstanding Parity
Preferred Shares have been paid in full. The foregoing sentence will not
prohibit (i) distributions payable solely in Shares of the Company ranking
junior to the Series F Preferred Shares as to distributions and upon
liquidation, winding-up or dissolution, (ii) the conversion of Junior
<PAGE>

Shares or Parity Preferred Shares into Shares of the Company ranking junior to
the Series F Preferred Shares as to distributions and upon liquidation, winding
up or dissolution, and (iii) purchase by the Company of such Series F Preferred
Shares, Parity Preferred Shares or Junior Shares pursuant to Article 3 of the
Charter to the extent required to preserve the Company's status as a real estate
investment trust.

            (ii) So long as distributions have not been paid in full (or a sum
sufficient for such full payment is not irrevocably deposited in trust for
payment) upon the Series F Preferred Shares, all distributions authorized and
declared on the Series F Preferred Shares and all classes or series of
outstanding Parity Preferred Shares shall be authorized and declared so that the
amount of distributions authorized and declared per share of Series F Preferred
Shares and such other classes or series of Parity Preferred Shares shall in all
cases bear to each other the same ratio that accrued distributions per share on
the Series F Preferred Shares and such other classes or series of Parity
Preferred Shares (which shall not include any accumulation in respect of unpaid
distributions for prior distribution periods if such class or series of Parity
Preferred Shares do not have cumulative distribution rights) bear to each other.

      (e) No Further Rights. Holders of Series F Preferred Shares shall not be
entitled to any distributions, whether payable in cash, other property or
otherwise, in excess of the full cumulative distributions described herein.

      SECTION 4. Liquidation Preference.

      (a) Payment of Liquidating Distributions. Subject to the rights of holders
of Parity Preferred Shares and subject to equity securities ranking senior to
the Series F Preferred Shares with respect to rights upon any voluntary or
involuntary liquidation, dissolution or winding-up of the Company, the holders
of Series F Preferred Shares shall be entitled to receive out of the assets of
the Company legally available for distribution or the proceeds thereof, after
payment or provision for debts and other liabilities of the Company, but before
any payment or distributions of the assets shall be made to holders of common
shares or any other class or series of shares of the Company that ranks junior
to the Series F Preferred Shares as to rights upon liquidation, dissolution or
winding-up of the Company, an amount equal to the sum of(i) a liquidation
preference of $25 per Series F Preferred Share, and (ii) an amount equal to any
accumulated and unpaid distributions thereon, whether or not declared, to the
date of payment. In the event that, upon such voluntary or involuntary
liquidation, dissolution or winding-up, there are insufficient assets to permit
full payment of liquidating distributions to the holders of Series F Preferred
Shares and any Parity Preferred Shares, all payments of liquidating
distributions on the Series F Preferred Shares and such Parity Preferred Shares
shall be made so that the payments on the Series F Preferred Shares and such
Parity Preferred Shares shall in all cases bear to each other the same ratio
that the respective rights of the Series F Preferred Shares and such other
Parity Preferred Shares (which shall not include any accumulation in respect of
unpaid distributions for prior distribution periods if such Parity Preferred
Shares do not have cumulative distribution rights) upon liquidation, dissolution
or winding-up of the Company bear to each other.

      (b) Notice. Written notice of any such voluntary or involuntary
liquidation, dissolution or winding-up of the Company, stating the payment date
or dates when, and the place or places where, the amounts distributable in such
circumstances shall be payable, shall be given by (i) fax and (ii) by registered
mail, postage pre-paid. not less than thirty (30) and not more than sixty (60)
days prior to the payment date stated therein, to each record holder of the
Series F Preferred Shares at the respective addresses of such holders as the
same shall appear on the share transfer records of the Company.

      (c) No Further Rights. After payment of the full amount of the liquidating
distributions to which they are entitled, the holders of Series F Preferred
Shares will have no right or claim to any of the remaining assets of the
Company.

      (d) Consolidation. Merger or Certain Other Transactions. The voluntary
sale, conveyance, lease, exchange or transfer (for cash, shares of stock,
securities or other consideration) of all or substantially all of the property
or assets of the Company to, or the consolidation or merger or other business
combination of the Company with or into any corporation. trust or other entity
(or of any corporation, trust or other entity with or into the Company) shall
not be deemed to constitute a liquidation, dissolution or winding-up of the
Company.
<PAGE>

      SECTION 5. Optional Redemption.

      (a) Right of Optional Redemption. The Series F Preferred Shares may not be
redeemed prior to December 22, 2004. On or after such date, the Company shall
have the right to redeem the Series F Preferred Shares, in whole or in part, at
any time or from time to time, upon not less than thirty (30) nor more than
sixty (60) days' written notice, at a redemption price, payable in cash, equal
to $25 per share of Series F Preferred Shares plus accumulated and unpaid
distributions, whether or not declared, to the date of redemption. If fewer than
all of the outstanding Series F Preferred Shares are to be redeemed, the Series
F Preferred Shares to be redeemed shall be selected pro rata (as nearly as
practicable without creating fractional shares).

      (b) Limitation on Redemption. The Company may not redeem fewer than all of
the outstanding shares of Series F Preferred Shares unless all accumulated and
unpaid distributions have been paid on all outstanding Series F Preferred Shares
for all quarterly distribution periods terminating on or prior to the date of
redemption.

      (c) Procedures for Redemption. (i) Notice of redemption will be (i) faxed,
and (ii) mailed by the Company by registered mail, postage prepaid, not less
than thirty (30) nor more than sixty (60) days prior to the redemption date,
addressed to the respective holders of record of the Series F Preferred Shares
to be redeemed at their respective addresses as they appear on the transfer
records of the Company. No failure to give or defect in such notice shall affect
the validity of the proceedings for the redemption of any Series F Preferred
Shares except as to the holder to whom such notice was defective or not given.
In addition to any information required by law or by the applicable rules of any
exchange upon which the Series F Preferred Shares may be listed or admitted to
trading, each such notice shall state: (i) the redemption date, (ii) the
redemption price, (iii) the number of Series F Preferred Shares to be redeemed,
(iv) the place or places where such Series F Preferred Shares are to be
surrendered for payment of the redemption price, (v) that distributions on the
Series F Preferred Shares to be redeemed will cease to accumulate on such
redemption date and (vi) that payment of the redemption price and any
accumulated and unpaid distributions will be made upon presentation and
surrender of such Series F Preferred Shares. If fewer than all of the Series F
Preferred Shares held by any holder are to be redeemed, the notice mailed to
such holder shall also specify the number of Series F Preferred Shares held by
such holder to be redeemed.

            (ii) If the Company gives a notice of redemption in respect of
Series F Preferred Shares (which notice will be irrevocable) then, by 12:00
noon, New York City time, on the redemption date, the Company will deposit
irrevocably in trust for the benefit of the holders of the Series F Preferred
Shares being redeemed, funds sufficient to pay the applicable redemption price,
plus any accumulated and unpaid distributions, whether or not declared, if any,
on such shares to the date fixed for redemption, without interest, and will give
irrevocable instructions and authority to pay such redemption price and any
accumulated and unpaid distributions, whether or not declared, if any. on such
shares to the holders of the Series F Preferred Shares upon surrender of the
certificates for the Series F Preferred Shares by such holders at the place
designated in the notice of redemption. If fewer than all Series F Preferred
Shares evidenced by any certificate are being redeemed, a new certificate shall
be issued upon surrender of the certificate evidencing all Series F Preferred
Shares, evidencing the unredeemed Series F Preferred Shares without cost to the
holder thereof. On and after the date of redemption, distributions will cease to
accumulate on the Series F Preferred Shares or portions thereof called for
redemption, unless the Company defaults in the payment of such redemption price.
If any date fixed for redemption of Series F Preferred Shares is not a Business
Day, then payment of the redemption price payable on such date will be made on
the next succeeding day that is a Business Day (and without any interest or
other payment in respect of any such delay) except that, if such Business Day
falls in the next calendar year, such payment will be made on the immediately
preceding Business Day, in each case with the same force and effect as if made
on such date fixed for redemption. If payment of the redemption price or any
accumulated or unpaid distributions in respect of the Series F Preferred Shares
is improperly withheld or refused and not paid by the Company, distributions on
such Series F Preferred Shares will continue to accumulate from the original
redemption date to the date of payment, in which case the actual payment date
will be considered the date fixed for redemption for purposes of calculating the
applicable redemption price and any accumulated and unpaid distributions.
<PAGE>

      (d) Status of Redeemed Shares. Any Series F Preferred Shares that shall at
any time have been redeemed shall after such redemption, have the status of
authorized but unissued Shares, without designation as to class or series until
such shares are once more designated as part of a particular class or series by
the Board.

      SECTION 6. Voting Rights.

      (a) General. Holders of the Series F Preferred Shares will not have any
voting rights, except as set forth below.

      (b) Right to Elect Trustees. (i) If at any time full distributions shall
not have been timely made on any Series F Preferred Shares with respect to any
six (6) prior quarterly distribution periods, whether or not consecutive (a
"Preferred Distribution Default"), the holders of such Series F Preferred
Shares, voting together as a single class with the holders of each class or
series of Parity Preferred Shares upon which like voting rights have been
conferred and are exercisable, will have the right to elect two additional
Trustees to serve on the Company's Board (the "Preferred Shares Trustees") at a
special meeting called by the holders of record of at least 10% of the
outstanding Series F Preferred Shares or any such class or series of Parity
Preferred Shares or at the next annual meeting of Shareholders, and at each
subsequent annual meeting of Shareholders or special meeting for the election of
Trustees held in place thereof, until all such distributions in arrears and
distributions for the current quarterly period on the Series F Preferred Shares
and each such class or series of Parity Preferred Shares have been paid in full.

            (ii) At any time when such voting rights shall have vested, a proper
officer of the Company shall call or cause to be called, upon written request of
holders of record of at least 10% of the outstanding Series F Preferred Shares,
a special meeting of the holders of Series F Preferred Shares and all the series
of Parity Preferred Shares upon which like voting rights have been conferred and
are exercisable (collectively, the "Parity Securities") by mailing or causing to
be mailed to such holders a notice of such special meeting to be held not less
than ten and not more than 45 days after the date such notice is given. The
record date for determining holders of the Parity Securities entitled to notice
of and to vote at such special meeting will be the close of business on the
third Business Day preceding the day on which such notice is mailed. At any such
special meeting, all of the holders of the Parity Securities, by plurality vote,
voting together as a single class without regard to series will be entitled to
elect two Trustees on the basis of one vote per $25 of liquidation preference to
which such Parity Securities are entitled by their terms (excluding amounts in
respect of accumulated and unpaid dividends) and not cumulatively. The holder or
holders of one-third of the Parity Securities then outstanding, present in
person or by proxy, will constitute a quorum for the election of the Preferred
Shares Trustees except as otherwise provided by law. Notice of all meetings at
which holders of the Series F Preferred Shares shall be entitled to vote will be
given to such holders at their addresses as they appear in the transfer records.
At any such meeting or adjournment thereof in the absence of a quorum. subject
to the provisions of any applicable law, the holders of a majority of the votes
to which the Parity Securities are entitled, present in person or by proxy,
shall have the power to adjourn the meeting for the election of the Preferred
Shares Trustees, without notice other than an announcement at the meeting, until
a quorum is present. If a Preferred Distribution Default shall terminate after
the notice of a special meeting has been given but before such special meeting
has been held, the Company shall, as soon as practicable after such termination,
mail or cause to be mailed notice of such termination to holders of the Series F
Preferred Shares that would have been entitled to vote at such special meeting.

            (iii) If and when all accumulated distributions and the
distributions for the current distribution period on the Series F Preferred
Shares shall have been paid in full or a sum sufficient for such payment is
irrevocably deposited in trust for payment, the holders of the Series F
Preferred Shares shall be divested of the voting rights set forth in this
Section 6(b) herein (subject to revesting in the event of each and every
Preferred Distribution Default) and, if all distributions in arrears and the
distributions for the current distribution period have been paid in full or set
aside for payment in full on all other classes or series of Parity Preferred
Shares upon which like voting rights have been conferred and are exercisable,
the term and office of each Preferred Shares Trustee so elected shall terminate.
Any Preferred Shares Trustee may be removed at any time with or without cause by
the vote of, and shall not be removed otherwise than by the vote of, the holders
of record of a majority of the votes to which the outstanding Parity Securities
are entitled, when they have the voting rights set forth in this Section 6(b).
<PAGE>

So long as a Preferred Distribution Default shall continue, any vacancy in the
office of a Preferred Shares Trustee may be filled by written consent of the
Preferred Shares Trustee remaining in office, or if none remains in office, by a
vote of the holders of record of a majority of the votes to which the
outstanding Parity Securities are entitled, when they have the voting rights set
forth in this Section 6(b). The Preferred Shares Trustees shall each be entitled
to one vote per trustee on any matter.

      (c) Certain Voting Rights. So long as any Series F Preferred Shares remain
outstanding, the Company shall not, without the approval of the holders of at
least two-thirds of the Series F Preferred Shares outstanding at the time (i)
designate or create, or increase the authorized or issued amount of, any class
or series of shares ranking senior to the Series F Preferred Shares with respect
to payment of distributions or rights upon liquidation, dissolution or
winding-up of the Company or reclassify any authorized shares of the Company
into any such shares, or create, authorize or issue any obligations or security
convertible into or evidencing the right to purchase any such shares, (ii)
designate or create, or increase the authorized or issued amount of, any Parity
Preferred Shares or reclassify any authorized shares of the Company into any
such shares, or create, authorize or issue any obligations or security
convertible into or evidencing the right to purchase any such shares, but only
to the extent such Parity Preferred Shares are issued to an affiliate of the
Company, or (iii) either (A) consolidate, merge into or with, or convey,
transfer or lease its assets substantially as an entirety, to any corporation or
other entity, or (B) amend, alter or repeal the provisions of the Company's
Charter (including these Articles Supplementary) or Bylaws, whether by merger,
consolidation or otherwise, in each case that would materially and adversely
affect the powers. special rights, preferences, privileges or voting power of
the Series F Preferred Shares or the holders thereof, provided, however, that
with respect to the occurrence of a merger, consolidation or a sale or lease of
all or substantially all of the Company's assets as an entirety, so long as (a)
the Company is the surviving entity and the Series F Preferred Shares remain
outstanding with the terms thereof unchanged, or (b) the resulting, surviving or
transferee entity is a corporation or real estate investment trust organized
tinder the laws of any state and substitutes the Series F Preferred Shares for
other preferred Shares having substantially the same terms and same rights as
the Series F Preferred Shares, including with respect to distributions,
redemptions. transfers, voting rights and rights upon liquidation, dissolution
or winding-up of the Company, then the occurrence of any such event shall not be
deemed to materially and adversely affect such rights, privileges or voting
powers of the holders of the Series F Preferred Shares and no vote of the Series
F Preferred Shares shall be required; and provided further that any increase in
the amount of authorized Shares or the creation or issuance of any other class
or series of Shares, or any increase in an amount of authorized shares of each
class or series, in each case ranking either (a) junior to the Series F
Preferred Shares with respect to payment of distributions and the distribution
of assets upon liquidation, dissolution or winding-up of the Company, or (b) on
a parity with the Series F Preferred Shares with respect to payment of
distributions or the distribution of assets upon liquidation, dissolution or
winding-up of the Company to the extent such Shares are not issued to an
affiliate of the Company, shall not be deemed to materially and adversely affect
such rights, preferences, privileges or voting powers and no approval of the
Series F Preferred Shares shall be required.

      SECTION 7. Transfer Restrictions. The Series F Preferred Shares shall be
subject to the provisions of Article 3 of the Charter; provided, however, in no
event shall the Ownership Limit with respect to the Series F Preferred Shares
(as defined in the Charter) be decreased pursuant to Section 10 of Article 3 of
the Charter or otherwise (other than a decrease as a result of a retroactive
change in existing law that would require a decrease to retain real estate
investment trust status tinder the Internal Revenue Code of 1986, as amended).

      SECTION 8. No Conversion Rights. The holders of the Series F Preferred
Shares shall not have any rights to convert such shares into shares of any other
class or series of Shares or into any other securities of, or interest in. the
Company.

      SECTION 9. No Sinking Fund. No sinking fund shall be established for the
retirement or redemption of Series F Preferred Shares.

      SECTION 10. No Preemptive Rights. No holder of the Series F Preferred
Shares of the Company shall, as such holder, have any preemptive rights to
purchase or subscribe for additional Shares of the Company or any other security
of the Company which it may issue or sell.
<PAGE>

            THIRD: The Series F Preferred Shares have been classified and
designated by the Board under the authority contained in the Charter.

            FOURTH: These Articles Supplementary have been approved by the Board
in the manner and by the vote required by law.

            FIFTH: The undersigned President of the Company acknowledges these
Articles Supplementary to be the corporate act of the Company and, as to all
matters or facts required to be verified under oath, the undersigned President
acknowledges that to the best of his knowledge, information and belief, these
matters and facts are true in all material respects and that this statement is
made under the penalties for perjury.
<PAGE>

      IN WITNESS WHEREOF, the Company has caused these Articles Supplementary to
be executed under seal in its name and on its behalf by its President and
attested to by its Secretary on this ___ day of December. 1999.

                                     CABOT INDUSTRIAL TRUST

                                     By:  /s/ Robert B. Pattersnon
                                          ----------------------------------
                                                Name:  Robert B. Patterson
                                                Title: President

[SEAL]

ATTEST:

By:  /s/ Neil E. Waisnor
     -------------------------------
           Name:  Neil E. Waisnor
           Title: Secretary<PAGE>

                                                                    Exhibit 10.5

                            CABOT INDUSTRIAL TRUST
                           LONG-TERM INCENTIVE PLAN

                      (As Amended and Restated Effective
                            as of January 26, 1998)
<PAGE>

                             CABOT INDUSTRIAL TRUST
                            LONG-TERM INCENTIVE PLAN

                       (As Amended and Restated Effective
                             as of January 26, 1998)

                                TABLE OF CONTENTS

SECTION 1  GENERAL

         1.1.  Purpose.......................................................1
         1.2.  Participation.................................................1

SECTION 2  OPTIONS

         2.1.  Definition....................................................2
         2.2.  Eligibility...................................................2
         2.3.  Formula Awards of Options to Non-Employee
                Trustees.....................................................3
         2.4.  Price.........................................................3
         2.5.  Exercise......................................................5
         2.6.  Post-Exercise Limitations.....................................5
         2.7.  Expiration Date...............................................6

SECTION 3  DIVIDEND AND DISTRIBUTION EQUIVALENT UNITS

         3.1.   Award of Dividend Equivalent Units to
                Non-Employee Trustees........................................6
         3.2.   Terms and Conditions of Non-Employee Trustee
                Dividend Equivalent Units....................................7
         3.3.   Award of Dividend and Distribution Equivalent
                Units to Participants other than Non-Employee
                Trustees.....................................................8
         3.4.   Terms and Conditions of Dividend and
                Distribution Equivalent Units for Participants
                other than Non-Employee Trustees.............................9

SECTION 4  OPERATION AND ADMINISTRATION

         4.1.  Effective Date...............................................10
         4.2.  Shares and Units Subject to Plan.............................10
         4.3.  Reservation of Shares........................................10
         4.4.  Adjustment...................................................10
         4.5.  Individual Limits on Awards..................................11
         4.6.  Limitation on Grant of Options...............................12
         4.7.  Change in Control............................................12
         4.8.  Limit on Distribution........................................13
         4.9.  Withholding..................................................13
<PAGE>

         4.10.  Transferability.............................................14
         4.11.  Notices.....................................................14
         4.12.  Form and Time of Elections..................................14
         4.13.  Option Agreement............................................14
         4.14.  Limitation of Implied Rights................................15
         4.15.  Evidence....................................................15
         4.16.  Action by REIT or Related Company...........................15
         4.17.  Gender and Number...........................................15

SECTION 5  COMMITTEES

         5.1.  Administration...............................................16
         5.2.  Selection of REIT Committee..................................16
         5.3.  Powers of Committee..........................................16
         5.4.  Delegation by Committee......................................17
         5.5.  Information to be Furnished to Committees....................17
         5.6.  Liability and Indemnification of Committees..................17

SECTION 6  AMENDMENT AND TERMINATION........................................18
<PAGE>

                             CABOT INDUSTRIAL TRUST
                            LONG-TERM INCENTIVE PLAN

                       (As Amended and Restated Effective
                             as of January 26, 1998)

                                    SECTION 1
                                     GENERAL

      1.1. Purpose. Cabot Industrial Trust, a Maryland real estate investment
trust (the "REIT"), established the Cabot Industrial Trust Long-Term Incentive
Plan (the "Plan") effective January 26, 1998 (the "Effective Date"). The
provisions that follow constitute an amendment and restatement of the Plan
effective as of the Effective Date. The Plan was established by the REIT to:

      (a)   attract and retain employees and other persons providing services
            to the REIT and the Related Companies (as defined below);

      (b)   motivate Participants (as defined in subsection 1.2), by means of
            appropriate incentives, to achieve long-range goals;

      (c)   provide incentive compensation opportunities that are competitive
            with those of other corporations and real estate investment trusts;
            and

      (d)   further identify Participants' interests with those of the REIT's
            other shareholders through compensation that is based on the value
            of the REIT's common shares;

and thereby promote the long-term financial interest of the REIT and the Related
Companies, including the growth in value of the REIT's equity and enhancement of
long-term shareholder return. The term "Related Company" means any company
during any period in which it is a "subsidiary corporation" (as that term is
defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the
"Code")), with respect to the REIT or any affiliate of the REIT which is
designated as a Related Company by the REIT Committee (as defined in subsection
5.1 below), including Cabot Industrial Properties, L.P. (the "Partnership") and
Cabot Advisors, Inc. (the "Management Company").

      1.2. Participation. Subject to the terms and conditions of the Plan, the
Committees (as described in Section 5) shall determine and designate, from time
to time, from among the Eligible Individuals (as defined below), those persons
who will
<PAGE>

be granted one or more awards under Sections 2 or 3 of the Plan (an "Award"),
and thereby become "Participants" in the Plan. In the discretion of the granting
Committee, and subject to the terms of the Plan, a Participant may be granted
any Award permitted under the provisions of the Plan, and more than one Award
may be granted to a Participant. Except as otherwise agreed by the REIT and the
Participant, or except as otherwise provided in the Plan, an Award under the
Plan shall not affect any previous Award under the Plan or an award under any
other plan maintained by the REIT or the Related Companies. For purposes of the
Plan, the term "Eligible Individual" shall mean any employee, officer,
consultant, adviser or member of the Board of the REIT or a Related Company;
provided, however, that a member of the Board of Trustees of the REIT (the
"Board") who is not an employee of the REIT or a Related Company (a
"Non-Employee Trustee") shall be granted Options in accordance with the formula
award provisions of subsection 2.3.

                                    SECTION 2

                                     OPTIONS

      2.1. Definitions. The grant of an "Option" under this Section 2 entitles
the Participant to purchase common shares of beneficial interest of the REIT
("Shares") or units of interest in the Partnership ("Units") at a price fixed at
the time the Option is granted, subject to the terms of this Section. Share
Options granted under this Section may be either Incentive Share Options or
Share Options that are Non-Qualified Options, as determined in the discretion of
the REIT Committee. An "Incentive Share Option" is a Share Option that is
intended to satisfy the requirements applicable to an "incentive stock option"
described in section 422 of the Code. A "Non-Qualified Option" is an Option that
is not intended to be an Incentive Share Option.

      2.2. Eligibility. Each Committee shall designate the Participants to whom
Options are to be granted under this Section and shall determine the number of
Shares or Units, as applicable, subject to each such Option. If the REIT
Committee grants Incentive Share Options, to the extent that the aggregate fair
market value of Shares with respect to which Incentive Share Options are
exercisable for the first time by any individual during any calendar year (under
all plans of the REIT and all related companies within the meaning of section
424(f) of the Code) exceeds $100,000, such Options shall be treated as
Non-Qualified Options, to the extent required by section 422 of the Code.

                                       2
<PAGE>

      2.3. Formula Awards of Options to Non-Employee Trustees. At the time of
his initial election or appointment as a Trustee (or, if later, as of the date
of closing of the initial public offering of Shares pursuant to the REIT's first
effective registration statement for the sale to the public of the Shares filed
under the Securities Act of 1933, as amended (the "Initial Public Offering")),
each Non-Employee Trustee shall automatically receive a Non-Qualified Option for
10,000 Shares, which Option shall become exercisable on the first anniversary
after the date of grant, provided the Non-Employee Trustee remains in continuous
service as a Non-Employee Trustee until such anniversary of the date of grant.
Thereafter, at the closing of each annual meeting of the REIT's shareholders,
each Non-Employee Trustee who has been reelected or who is continuing as a
Trustee as of the adjournment of the annual meeting shall automatically receive
a Non-Qualified Option for an additional 4,000 Shares, which Option shall become
exercisable on the first anniversary after the date of grant. To the extent
Options granted pursuant to subsection 2.2 of the Plan are adjusted pursuant to
subsection 4.4 of the Plan, Options granted under this subsection shall
automatically be adjusted in the same manner. All Options granted under this
subsection 2.3 shall provide for an exercise price per Share equal to the Fair
Market Value (as defined below) of a Share as of the date of grant (or par
value, if greater). Each Option granted under this subsection shall be awarded
with Dividend Equivalent Units, as described in subsection 3.1.

      2.4. Price. The exercise price for each Share purchasable under any
Non-Qualified Option granted to a Non-Employee Trustee is set forth in
subsection 2.3. The determination and payment of the purchase price of a Share
or Unit under each other Option granted under this Section shall be subject to
the following:

      (a)   The purchase price shall be established by the granting Committee at
            the time the Option is granted; provided, however, that:

            (i)   in no event shall the price of a Share Option be less than
                  the par value of a Share on such date;

            (ii)  in no event shall the purchase price of a Share under an
                  Incentive Share Option be less than the Fair Market Value of a
                  Share at the time the Option is granted and in the case of any
                  Incentive Share Option granted to an optionee who, at the time
                  the Option is granted, owns shares of beneficial interest
                  representing more than 10% of the voting power of all classes
                  of shares of

                                       3
<PAGE>

                  beneficial interest of the REIT or any of its subsidiaries
                  within the meaning of section 424(f) of the Code, the exercise
                  price for each Share purchasable under such Option shall not
                  be less than 110% of the Fair Market Value of a Share on the
                  date of grant of the Option; and

      (b)   Subject to the following provisions of this subsection, the full
            purchase price of each Share or Unit purchased upon the exercise of
            any Option shall be paid at the time of such exercise (or such later
            date as may be permitted by the Committee in the case of a cashless
            exercise) and, as soon as practicable thereafter, a certificate
            representing the Shares or Units so purchased shall be delivered to
            the person entitled thereto.

      (c)   The purchase price of a Share Option shall be payable in cash or
            in Shares (valued at Fair Market Value as of the day of exercise)
            that have been held by the Participant at least six months, or in
            any combination thereof, as determined by the REIT Committee.
            The purchase price of a Unit Option shall be payable in cash or
            in Units (valued at Fair Market Value as of the day of exercise)
            that have been held by the Participant at least six months, or in
            any combination thereof, as determined by the REIT Committee.

      (d)   The "Fair Market Value" of a Share or Unit as of any date shall be
            determined in accordance with the following rules:

            (i)   If the Shares are at the time listed or admitted to trading on
                  any stock exchange, then the Fair Market Value of a Share
                  shall be the average of the highest and lowest sales price per
                  Share on such date on the principal exchange on which the
                  Shares are then listed or admitted to trading or, if no such
                  sale is reported on that date, on the last preceding date on
                  which a sale was so reported.

            (ii)  If the Shares are not at the time listed or admitted to
                  trading on a stock exchange, the Fair Market Value of a Share
                  shall be the average of the lowest reported bid price and
                  highest reported asked price of the Shares on the date in
                  question in the over-the-counter market, as such prices are
                  reported in a publication of general circulation

                                       4
<PAGE>

                  selected by the REIT Committee and regularly reporting the
                  market price of Shares in such market.

            (iii) If the Shares are not listed or admitted to trading on any
                  stock exchange or traded in the over-the-counter market, the
                  Fair Market Value of a Share shall be as determined by the
                  REIT Committee in good faith.

            (iv)  For purposes of determining the Fair Market Value of Shares
                  that are sold pursuant to a cashless exercise program, Fair
                  Market Value shall be the price at which such Shares are sold.

            (v)   As of any date, the Fair Market Value of a Unit shall equal
                  the Fair Market Value of a Share on such date.

            (vi)  For a Share or Unit subject to an Option granted on the date
                  of the closing of the Initial Public Offering, the Fair Market
                  Value of such Share or Unit will be deemed to be the initial
                  public offering price for a Share.

      2.5. Exercise. Except as otherwise expressly provided in the Plan, an
Option granted under this Section shall be exercisable in accordance with the
following terms of this subsection:

      (a)   The terms and conditions relating to exercise of an Option
            granted pursuant to subsection 2.2 shall be established by the
            granting Committee, and may include, without limitation,
            conditions relating to completion of a specified period of
            service (subject to paragraph (b) below), achievement of
            performance standards prior to exercise of the Option or the
            achievement of Share ownership objectives by the Participant.
            The granting Committee, in its sole discretion, may accelerate
            the vesting of any Option under circumstances designated by it at
            the time the Option is granted or thereafter.

      (b)   No Option may be exercised by a Participant after the Expiration
            Date (as defined in subsection 2.7) applicable to that Option.

      2.6. Post-Exercise Limitations. The REIT Committee, in its discretion, may
impose such restrictions on Shares acquired pursuant to the exercise of a Share
Option or delivered in

                                       5
<PAGE>

connection with the right described in Section 4.2(e) of the Agreement of
Limited Partnership of Cabot Industrial Properties, L.P. providing for the
exchange of Units for Shares (the "Conversion Right") as it determines to be
desirable, including, without limitation, restrictions relating to disposition
of the Shares and forfeiture restrictions based on service, performance, Share
ownership by the Participant and such other factors as the REIT Committee
determines to be appropriate.

      2.7. Expiration Date. The "Expiration Date" with respect to an Option
granted pursuant to subsection 2.2 means the date established as the Expiration
Date by the granting Committee at the time of the grant; provided, however, that
unless determined otherwise by the Committee, the Expiration Date with respect
to any Option shall not be later than the earliest to occur of:

      (a)   the ten-year anniversary of the date on which the Option is granted;

      (b)   if the Participant's Date of Termination occurs by reason of
            death or Disability, the one-year anniversary of such Date of
            Termination; or

      (c)   if the Participant's Date of Termination occurs for reasons other
            than death or Disability, the three-month anniversary of such Date
            of Termination.

The "Expiration Date" with respect to any Option granted to a Non-Employee
Trustee pursuant to subsection 2.3 means the date which is the earlier to occur
of the ten-year anniversary of the date on which the Option is granted or the
five-year anniversary of the date his trusteeship terminates. For purposes of
the Plan, a Participant's "Date of Termination" shall be the date on which he
both ceases to be an employee of the REIT and the Related Companies and ceases
to perform material services for the REIT and the Related Companies, regardless
of the reason for the cessation; provided that a "Date of Termination" shall not
be considered to have occurred during the period in which the reason for the
cessation of services is a leave of absence approved by the REIT or the Related
Company which was the recipient of the Participant's services. Except as
otherwise provided by the Committee, a Participant shall be considered to have a
"Disability" during the period in which he is unable, by reason of a medically
determinable physical or mental impairment, to engage in the material and
substantial duties of his regular occupation, which condition is expected to be
permanent.

                                       6
<PAGE>

                                    SECTION 3

                   DIVIDEND AND DISTRIBUTION EQUIVALENT UNITS

      3.1. Award of Dividend Equivalent Units to Non-Employee Trustees. A
Non-Employee Trustee who is awarded a Share Option under subsection 2.3 of the
Plan shall also be entitled to receive "Dividend Equivalent Units" with respect
to the Share Option.

      (a)   Annual crediting of Dividend Equivalent Units. As of the last day of
            each calendar year, each Non-Employee Trustee shall be credited with
            a number of Dividend Equivalent Units equal to (i) the amount the
            REIT Committee determines to be the average dividend yield per Share
            for such calendar year, reduced by the amount that the REIT
            Committee determines to be the S&P 500 average dividend yield for
            such year, multiplied by (ii) the number of Shares underlying the
            Non-Employee Trustee's outstanding Share Options (reduced pro rata
            to reflect Shares underlying such Share Options that were not
            outstanding on the record date with respect to each dividend payment
            date during such year).

      (b)   Additional credits to reflect dividend payments on Dividend
            Equivalent Units. As of the last day of each calendar year, each
            Non-Employee Trustee shall be credited with additional Dividend
            Equivalent Units equal to (i) the amount the REIT Committee
            determines to be the average dividend yield per Share for such
            calendar year, multiplied by (ii) the number of Dividend Equivalent
            Units outstanding during such calendar year (reduced pro rata to
            reflect Dividend Equivalent Units that were not outstanding on each
            dividend payment date during such year).

      3.2. Terms and Conditions of Non-Employee Trustee Dividend Equivalent
Units. Dividend Equivalent Units of Non-Employee Trustees shall be subject to
the following terms and conditions:

      (a)   Dividend Equivalent Units of Non-Employee Trustees shall vest in
            accordance with the vesting schedule applicable to the Share Option
            with respect to which the Dividend Equivalent Unit was awarded.

      (b)   Each vested Dividend Equivalent Unit shall entitle the holder
            thereof to a Share on the last day of the calendar year in which
            occurs the first of (i) the date

                                       7
<PAGE>

            the Non-Employee Trustee exercises the Share Option with respect to
            which the Dividend Equivalent Unit was awarded, or (ii) the date
            such Option expires by its terms; provided, however, prior to the
            date the Shares would otherwise be payable, to the extent permitted
            by the REIT Committee, a Non-Employee Trustee may irrevocably elect
            to defer receipt of such Shares until the last date of a later
            calendar year, but in no event later than the last day of the
            calendar year in which occurs the tenth anniversary of the grant of
            the underlying Option. Any such deferral election shall be made in
            such form and at such times as the REIT Committee may determine and
            shall be subject to such other terms, conditions and limitations as
            the REIT Committee may establish.

      (c)   All Dividend Equivalent Units which are not vested upon the date a
            Non-Employee Trustee's trusteeship terminates shall be forfeited.

      (d)   Settlement of a Non-Employee Trustee's Dividend Equivalent Units
            shall be made in the form of whole Shares. Any fractional Shares
            shall be settled in cash.

      3.3. Award of Dividend and Distribution Equivalent Units to Participants
other than Non-Employee Trustees. To the extent determined by an affirmative
action of the granting Committee at the time an Option is awarded, a Participant
other than a Non-Employee Trustee who is awarded an Option under the Plan shall
also be entitled to receive "Dividend Equivalent Units" with respect to a Share
Option and "Distribution Equivalent Units" with respect to a Unit Option, as
applicable.

      (a)   Crediting of Dividend Equivalent Units. As of the last day of each
            calendar year, each Participant other than a Non-Employee Trustee
            who has been awarded Dividend Equivalent Units with respect to a
            Share Option shall be credited with a number of Dividend Equivalent
            Units equal to (i) the amount the REIT Committee determines to be
            the average dividend yield per Share for such calendar year, reduced
            by the amount that the REIT Committee determines to be the S&P 500
            average dividend yield for such year, multiplied by (ii) the number
            of Shares underlying the Participant's outstanding Share Option that
            are entitled to Awards under this Section 3 during such calendar
            year (reduced pro rata to reflect Shares underlying such Share
            Option that were not outstanding on the record date with respect to
            each

                                       8
<PAGE>

            dividend payment date during such year).

      (b)   Crediting of Distribution Equivalent Units. As of the last day of
            each calendar year, each Participant who has been awarded
            Distribution Equivalent Units with respect to a Unit Option shall be
            credited with a number of Distribution Equivalent Units equal to (i)
            the amount the REIT Committee determines to be the average
            distribution per Unit for such calendar year, reduced by the amount
            that the REIT Committee determines to be the S&P 500 average
            distribution yield for such year, multiplied by (ii) the number of
            Units underlying the Participant's outstanding Unit Option that are
            entitled to Awards under this Section 3 during such calendar year
            (reduced pro rata to reflect Units underlying such Unit Option that
            were not outstanding on the date each distribution was paid during
            such year).

      3.4. Terms and Conditions of Dividend and Distribution Equivalent Units
for Participants other than Non-Employee Trustees.

      (a)   The granting Committee shall determine whether a Dividend Equivalent
            Unit or a Distribution Equivalent Unit credited pursuant to
            subsection 3.3 shall vest over such period as may be designated by
            the Committee or only upon a Change in Control (as defined in
            subsection 4.7).

      (b)   Each vested Dividend Equivalent Unit and Distribution Equivalent
            Unit shall entitle the holder thereof to a Share or Unit, as
            applicable, on the last day of the calendar year in which occurs the
            first of (i) the date the Participant exercises the Option with
            respect to which the Dividend or Distribution Equivalent Unit was
            awarded, (ii) the date such Option expires by reason of termination
            of employment, or (iii) the tenth anniversary of the date on which
            the Option was granted or, if later, the first anniversary of the
            date the Dividend or Distribution Equivalent Unit is fully vested if
            the holder is employed by the REIT or a Related Company on such
            date; provided, however, prior to the date the Shares or Units would
            otherwise be payable, to the extent permitted by the REIT Committee,
            a Participant may irrevocably elect to defer receipt of such Shares
            or Units until the last day of a later calendar year, but in no
            event later than the last day of the calendar year in which occurs
            the tenth

                                       9
<PAGE>

            anniversary of the grant of the underlying Option. Any such deferral
            election shall be made in such form and at such times as the
            Committee may determine and shall be subject to such other terms,
            conditions and limitations as the Committee may establish.

      (c)   All Dividend Equivalent Units and Distribution Equivalent Units
            which are not vested upon the Participant's Date of Termination
            shall be forfeited.

      (d)   Settlement of all Dividend and Distribution Equivalent Units shall
            be made in the form of whole Shares or Units, as applicable. Any
            fractional Shares or Units shall be settled in cash.

                                    SECTION 4

                          OPERATION AND ADMINISTRATION

      4.1. Effective Date. The Plan was originally effective as of the date it
was adopted by the Board; provided, however, that Awards granted under the Plan
prior to its approval by shareholders were contingent on approval of the Plan by
the REIT's shareholders. The Plan shall be unlimited in duration and, in the
event of Plan termination, shall remain in effect as long as any Options awarded
under it are outstanding and have not been exercised, terminated or expired;
provided, however, that no new Awards shall be made under the Plan on or after
the tenth anniversary of the date on which the Plan was originally adopted by
the Board.

      4.2. Shares and Units Subject to Plan. The Shares with respect to which
Awards may be made under the Plan, including Shares delivered in connection with
the Conversion Right, shall be Shares currently authorized but unissued or
currently held or subsequently acquired by the REIT as treasury shares,
including Shares purchased in the open market or in private transactions.
Subject to the provisions of subsection 4.4, the number of Shares and Units
which may be issued with respect to Awards under the Plan shall not exceed
4,347,500 Shares or Units in the aggregate. In the event the number of
outstanding Shares and Units increases after the Effective Date, the maximum
number of Shares and Units reserved for Awards will be adjusted automatically so
that the maximum number equals 10% of the outstanding Shares and Units on a
fully-diluted basis, provided that the number of Shares reserved for grants of
Options designated as Incentive Share Options will not be so increased over the
number of such Shares as of the date the shareholders approve the Plan. Except

                                       10
<PAGE>

as otherwise provided herein, any Shares or Units subject to an Award which for
any reason expires or is terminated without issuance of Shares or Units
(including Shares reserved in connection with the Conversion Rights of the Units
and Shares or Units that are not issued because they are withheld to satisfy tax
withholding) shall again be available under the Plan.

      4.3. Reservation of Shares. There shall be reserved by the REIT at all
times for sale under the Plan and for exchange pursuant to a Conversion Right
for a Unit received upon the exercise of a Unit Option an aggregate number of
Shares equal to the maximum number of Shares and Units which may be subject to
the granting of Awards under subsection 4.2.

      4.4. Adjustment. In the event the REIT Committee shall determine that any
extraordinary dividend or other distribution (whether in the form of cash,
Shares, Units, other securities or other property), recapitalization, stock
split, reverse stock split, reorganization, merger, consolidation, split-up,
spin-off, combination, repurchase or exchange of Shares, Units or other
securities, the issuance of warrants or other rights to purchase Shares, Units
or other securities, or other similar corporate, trust or partnership
transaction or event affects the Shares or Units with respect to which Options
have been or may be issued under the Plan, such that an adjustment is determined
by the REIT Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the REIT Committee shall, in such manner as it may deem
equitable, adjust any or all of (i) the number and type of Shares and Units that
thereafter may be made the subject of Options, (ii) the number and type of
Shares and Units subject to outstanding Options, and (iii) the grant or exercise
price with respect to any Option, or, if deemed appropriate, make provisions for
a cash payment to the holder of any outstanding Option; provided, that:

      (a)   with respect to Incentive Share Options, no adjustment shall be made
            to the extent that the adjustment would cause the Option to violate
            section 422 of the Code or any successor provision;

            (b)   the number of Shares or Units subject to any Option shall
                  always be a whole number; and

            (c)   in the event of a merger or sale of substantially all of the
                  assets of the REIT, the Board, in its sole discretion, may
                  substitute awards of equal value for Awards under the Plan or
                  cancel outstanding Awards, provided that the Participant

                                       11
<PAGE>

                  receives an amount that the Board believes is reasonable
                  payment therefor.

      4.5. Individual Limits on Awards. Notwithstanding any other provision of
the Plan to the contrary, no Participant shall receive any Award of an Option
under the Plan to the extent that the sum of:

      (a)   the number of Shares and Units subject to such Award;

      (b)   the number of Shares and Units subject to all other prior Awards of
            Options under the Plan during the one-year period ending on the date
            of the Award; and

      (c)   the number of Shares and Units subject to all other prior awards of
            options granted to the Participant under other plans or arrangements
            of the REIT or the Partnership during the one-year period ending on
            the date of the award;

would exceed the Participant's Individual Limit under the Plan. The
determination made under the foregoing provisions of this subsection shall be
based on the Shares and Units subject to the Awards at the time of grant,
regardless of when the Awards become exercisable. Subject to the provisions of
subsection 4.4, a Participant's "Individual Limit" shall be 500,000 Shares or
500,000 Units, or any combination of the foregoing.

      4.6. Limitation on Grant of Options. Notwithstanding any provision of the
Plan to the contrary, in no event shall an Option be granted under the Plan if
the granting of such Option may, in the determination of the REIT Committee,
cause the REIT to lose its status as a real estate investment trust under
section 856 of the Code (including sections 856()(6) and 856(h) thereof) and
applicable regulations thereunder.

      4.7. Change in Control. In the event of a Change in Control of the REIT
(as defined below), all Options and related Awards which have not otherwise
expired shall become immediately exercisable and all other Awards shall become
fully vested. For purposes of the Plan, a "Change in Control" means the
happening of any of the following:

      (a)   the shareholders of the REIT approve a definitive agreement to merge
            the REIT into or consolidate the REIT with another entity, sell or
            otherwise dispose of all or substantially all of its assets or adopt
            a plan of liquidation, provided, however, that a Change in Control
            shall not be deemed to have occurred by reason

                                       12
<PAGE>

            of a transaction, or a substantially concurrent or otherwise related
            series of transactions, upon the completion of which 50% or more of
            the beneficial ownership of the voting power of the REIT, the
            surviving corporation or corporation directly or indirectly
            controlling the REIT or the surviving corporation, as the case may
            be, is held by the same persons (as defined below) (although not
            necessarily in the same proportion) as held the beneficial ownership
            of the voting power of the REIT immediately prior to the transaction
            or the substantially concurrent or otherwise related series of
            transactions, except that upon the completion thereof, employees or
            employee benefit plans of the REIT may be a new holder of such
            beneficial ownership; provided, further, that any transaction
            described in this paragraph (a) with an "Affiliate" of the REIT (as
            defined in the Securities Exchange Act of 1934, as amended (the
            "Exchange Act")) shall not be treated as a Change in Control; or

      (b)   the "beneficial ownership" (as defined in Rule 13d-3 under the
            Exchange Act) of securities representing 25% or more of the combined
            voting power of the REIT is acquired, other than from the REIT, by
            any "person" as defined in Sections 13(d) and 14(d) of the Exchange
            Act (other than any trustee or other fiduciary holding securities
            under an employee benefit or other similar stock plan of the REIT);
            or

      (c)   at any time during any period of two consecutive years, individuals
            who at the beginning of such period were members of the Board cease
            for any reason to constitute at least a majority thereof (unless the
            election, or the nomination for election by the REIT's shareholders,
            of each new trustee was approved by a vote of at least two-thirds of
            the trustees still in office at the time of such election or
            nomination who were trustees at the beginning of such period).

      4.8. Limit on Distribution. Distribution of Shares or Units under the Plan
shall be subject to the following:

      (a)   Notwithstanding any other provision of the Plan, the REIT shall have
            no liability to deliver any Shares or Units under the Plan unless
            such delivery would comply with all applicable laws and the
            applicable requirements of any securities exchange or similar
            entity.

                                       13
<PAGE>

      (b)   In the case of a Participant who is subject to Section 16(a) and
            16(b) of the Exchange Act, the REIT Committee may, at any time, add
            such conditions and limitations to any Award to such Participant, or
            any feature of any such Award, as the REIT Committee, in its sole
            discretion, deems necessary or desirable to comply with Section
            16(a) or 16(b) and the rules and regulations thereunder or to obtain
            any exemption therefrom.

      (c)   To the extent that the Plan provides for issuance of certificates to
            reflect the transfer of Shares or Units, the transfer of such Shares
            or Units may be effected on a non-certificated basis, to the extent
            not prohibited by applicable law or the rules of any stock exchange.

      4.9. Withholding. All Awards and other payments under the Plan are subject
to withholding of all applicable taxes, which withholding obligations with
respect to Share Options may be satisfied, with the consent of the REIT
Committee, through the surrender of Shares which the Participant already owns or
to which a Participant is otherwise entitled under the Plan; provided, however,
previously-owned Shares that have been held by the Participant less than six
months or Shares to which the Participant is entitled under the Plan may only be
used to satisfy the minimum tax withholding required by applicable law.

      4.10. Transferability. Awards under the Plan are not transferable except
as designated by the Participant by will or by the laws of descent and
distribution. In no event shall an Incentive Share Option be transferable to the
extent that such transferability would violate the requirements applicable to
such option under Code section 422. To the extent that the Participant who
receives an Award under the Plan has the right to exercise such Award, the Award
may be exercised during the lifetime of the Participant only by the Participant.
Notwithstanding the foregoing provisions of this subsection, the Committee may
permit Awards under the Plan to be transferred to or for the benefit of the
Participant's family (including, without limitation, to a trust or partnership
for the benefit of a Participant's family), subject to such limits as the
Committee may establish. In no event shall an Incentive Share Option be
transferable to the extent that such transferability would violate the
requirements applicable to such option under Code section 422.

      4.11. Notices. Any notice or document required to be filed with the
granting Committee under the Plan will be properly filed if delivered or mailed
by registered mail, postage prepaid, to

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<PAGE>

such Committee, in care of the REIT or the Management Company, as applicable, at
its principal executive offices. The Committee may, by advance written notice to
affected persons, revise such notice procedure from time to time. Any notice
required under the Plan (other than a notice of election) may be waived by the
person entitled to notice.

      4.12. Form and Time of Elections. Unless otherwise specified herein, each
election required or permitted to be made by any Participant or other person
entitled to benefits under the Plan, and any permitted modification or
revocation thereof, shall be in writing filed with the Committee at such times,
in such form, and subject to such restrictions and limitations, not inconsistent
with the terms of the Plan, as the Committee shall require.

      4.13. Option Agreement. At the time of an Award to a Participant under the
Plan, the granting Committee may require a Participant to enter into an
agreement with the REIT or the Management Company, as applicable (the
"Agreement"), in a form specified by the Committee, agreeing to the terms and
conditions of the Plan and to such additional terms and conditions, not
inconsistent with the Plan, as the Committee may, in its sole discretion,
prescribe.

      4.14.  Limitation of Implied Rights.

      (a)   Neither a Participant nor any other person shall, by reason of the
            Plan, acquire any right in or title to any assets, funds or property
            of the REIT or any Related Company whatsoever, including, without
            limitation, any specific funds, assets, or other property which the
            REIT or any Related Company, in its sole discretion, may set aside
            in anticipation of a liability under the Plan. A Participant shall
            have only a contractual right to the amounts, if any, payable under
            the Plan, unsecured by any assets of the REIT and any Related
            Company. Nothing contained in the Plan shall constitute a guarantee
            by the REIT or any Related Company that the assets of such companies
            shall be sufficient to pay any benefits to any person.

                                       15
<PAGE>

      (b)   The Plan does not constitute a contract of employment, and selection
            as a Participant will not give any employee the right to be retained
            in the employ of the REIT or any Related Company, nor any right or
            claim to any benefit under the Plan, unless such right or claim has
            specifically accrued under the terms of the Plan. Except as
            otherwise provided in the Plan, no Award under the Plan shall confer
            upon the holder thereof any right as a shareholder of the REIT or as
            a holder of interests in the Partnership prior to the date on which
            he fulfills all service requirements and other conditions for
            receipt of such rights and Shares or Units are registered in his
            name.

      4.15. Evidence. Evidence required of anyone under the Plan may be by
certificate, affidavit, document or other information which the person acting on
it considers pertinent and reliable, and signed, made or presented by the proper
party or parties.

      4.16. Action by REIT or Related Company. Any action required or permitted
to be taken by the REIT or any Related Company shall be by resolution of its
board of trustees or directors, as applicable, or by action of one or more
members of the board (including a committee of the board) who are duly
authorized to act for the board or (except to the extent prohibited by
applicable law or the rules of any stock exchange) by a duly authorized officer
of the REIT.

      4.17. Gender and Number. Where the context admits, words in any gender
shall include any other gender, words in the singular shall include the plural
and the plural shall include the singular.

      4.18. Applicable Law. The provisions of the Plan shall be construed in
accordance with the laws of the State of Maryland, without giving effect to
choice of law principles.

                                    SECTION 5

                                   COMMITTEES

      5.1. Administration. The authority to control and manage the operation and
administration of the Plan shall be vested in a REIT Committee and a Management
Company Committee (the "Committees") in accordance with this Section 5.

      5.2. Selection of REIT Committee. So long as the REIT is

                                       16
<PAGE>

subject to Section 16 of the Exchange Act, the Committee shall be selected by
the Board and shall consist of not fewer than two members of the Board or such
greater number as may be required for compliance with Rule 16b-3 issued under
the Exchange Act.

      5.3. Powers of Committees. The authority to manage and control the
operation and administration of the Plan shall be vested in the Committees,
subject to the following:

      (a)   Subject to the provisions of the Plan, the REIT Committee will have
            the authority and discretion to grant Share Options and Unit Options
            and Dividend and Distribution Equivalent Unit rights to individuals
            who, at the time of grant, perform services for the REIT or the
            Partnership, or who are officers, trustees, directors or other
            persons subject to Section 16(a) of the Exchange Act with respect to
            the REIT. The Management Company Committee shall have sole and
            exclusive authority to grant Unit Options and Distribution
            Equivalent Unit rights to persons who, at the time of grant, perform
            services for the Management Company and are not officers, trustees,
            directors or other persons subject to Section 16(a) of the Exchange
            Act with respect to the REIT. Each Committee shall have the
            authority to determine the time or times of receipt, to determine
            the types of Awards and the number of Shares or Units covered by the
            Awards, to establish the terms, conditions, performance criteria,
            restrictions, and other provisions of such Awards, and to cancel or
            suspend Awards. In making such Award determinations, the Committee
            may take into account the nature of services rendered by the
            respective individual, the individual's present and potential
            contribution to the REIT's success and such other factors as the
            Committee deems relevant.

      (b)   The Committee will have the authority and discretion to interpret
            the Plan, to establish, amend and rescind any rules and regulations
            relating to the Plan, to determine the terms and provisions of any
            agreements made pursuant to the Plan and to make all other
            determinations that may be necessary or advisable for the
            administration of the Plan.

      (c)   Any interpretation of the Plan by the Committee and any decision
            made by it under the Plan is final and binding on all persons.

      (d)   Except as otherwise expressly provided in the Plan,

                                       17
<PAGE>

            where the Committee is authorized to make a determination with
            respect to any Award, such determination shall be made at the time
            the Award is made, except that the Committee may reserve the
            authority to have such determination made by the Committee in the
            future (but only if such reservation is made at the time the Award
            is granted and is expressly stated in the Agreement reflecting the
            Award).

      5.4. Delegation by Committee. Except to the extent prohibited by
applicable law or the rules of any stock exchange or NASDAQ (if appropriate), a
Committee may allocate all or any portion of its responsibilities and powers to
any one or more of its members and may delegate all or any part of its
responsibilities and powers to any person or persons selected by it. Any such
allocation or delegation may be revoked by the Committee at any time.

      5.5. Information to be Furnished to Committees. The REIT and Related
Companies shall furnish the Committee such data and information as may be
required for it to discharge its duties. The records of the REIT and Related
Companies as to an employee's or Participant's employment (or other provision of
services), termination of employment (or cessation of the provision of
services), leave of absence, reemployment and compensation shall be conclusive
on all persons unless determined to be incorrect. Participants and other persons
entitled to benefits under the Plan must furnish the Committees such evidence,
data or information as the Committees consider desirable to carry out the terms
of the Plan.

      5.6. Liability and Indemnification of Committees. No member or authorized
delegate of either Committee shall be liable to any person for any action taken
or omitted in connection with the administration of the Plan unless attributable
to his own fraud or willful misconduct; nor shall the REIT or any Related
Company be liable to any person for any such action unless attributable to fraud
or willful misconduct on the part of a trustee or employee of the REIT or
Related Company. Each Committee, the individual members thereof, and persons
acting as the authorized delegates of the Committee under the Plan, shall be
indemnified by the REIT against any and all liabilities, losses, costs and
expenses (including legal fees and expenses) of whatsoever kind and nature which
may be imposed on, incurred by or asserted against the Committee or its members
or authorized delegates by reason of the performance of a Committee function if
the Committee or its members or authorized delegates did not act dishonestly or
in willful violation of the law or regulation

                                       18
<PAGE>

under which such liability, loss, cost or expense arises. This indemnification
shall not duplicate but may supplement any coverage available under any
applicable insurance.

                                    SECTION 6

                            AMENDMENT AND TERMINATION

      The Board may, at any time, amend or terminate the Plan, provided that,
subject to subsection 4.4 (relating to certain adjustments to shares), no
amendment or termination may materially adversely affect the rights of any
Participant or beneficiary under any Award made under the Plan prior to the date
such amendment is adopted by the Board.

                                       19

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