Document:

<PAGE>

                                                                    Exhibit 10.2

                                      LEASE

                                 by and between

                            ARE-MA Region No. 20, LLC

                                    Landlord

                                       and

                                  ARQULE, INC.

                                     Tenant

                               Dated: May __, 2005

             Premises at 19 Presidential Way, Woburn, Massachusetts

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>                                                                             <C>
TABLE OF CONTENTS..............................................................   i

ARTICLE I       Reference Data.................................................   1
      1.1.      Incorporated References........................................   1
      1.2.      Exhibits.......................................................   3

ARTICLE II      Lease Grant; Extended Terms....................................   4
      2.1.      Term...........................................................   4
      2.2.      Option to Extend Term..........................................   4
      2.3.      Annual Fixed Rent During the Original Term.....................   4
      2.4.      Annual Fixed Rent During Extended Terms........................   4

ARTICLE III     Rent...........................................................   6
      3.1.      Annual Fixed Rent..............................................   6
      3.2.      Additional Rent................................................   6
      3.3.      Real Estate Taxes..............................................   6
      3.4.      Insurance......................................................   8
      3.5.      Certain Provisions Applicable to Insurance Policies............   9
      3.6.      Waiver of Subrogation..........................................  10
      3.7.      Utilities......................................................  10
      3.8.      Net Lease; Nonterminability by Tenant..........................  10

ARTICLE IV      Additional Covenants...........................................  11
      4.1.      Tenant's Affirmative Covenants.................................  11
      4.2.      Landlord's Repair and Maintenance Obligations..................  13
      4.3.      Tenant's Work..................................................  13
      4.4.      Tenant's Indemnity.............................................  14
      4.5.      Landlord's Indemnity...........................................  14
      4.6.      Landlord's Right to Enter......................................  14
      4.7.      Personal Property at Tenant's Risk.............................  15
      4.8.      Payment of Cost of Enforcement.................................  15
      4.9.      Yield-Up.......................................................  15
      4.10.     Estoppel Certificates..........................................  17
      4.11.     Park Restrictions..............................................  17
      4.12.     Holding Over...................................................  17
      4.13.     Assignment and Subletting......................................  18
      4.14.     Waste; Nuisance................................................  19
      4.15.     Installations, Alterations or Additions........................  20
      4.16.     Signage........................................................  21
      4.17.     Parking........................................................  21
      4.18.     Landlord's Additional Covenants................................  21
</TABLE>

                                     - i -

<PAGE>

<TABLE>
<S>                                                                              <C>
ARTICLE V       Casualty or Taking.............................................  22
      5.1.      Casualty.......................................................  22
      5.2.      Taking.........................................................  23
      5.3.      Restoration....................................................  24
      5.4.      Award..........................................................  24

ARTICLE VI      Defaults.......................................................  25
      6.1.      Events of Default..............................................  25
      6.2.      Remedies.......................................................  25
      6.3.      Remedies Cumulative............................................  26
      6.4.      Landlord's Rights to Cure Defaults.............................  26
      6.5.      Effect of Waivers of Default...................................  26
      6.6.      No Accord and Satisfaction.....................................  27
      6.7.      Interest on Overdue Sums.......................................  27

ARTICLE VII     Mortgages......................................................  27
      7.1.      Rights of Mortgage Holders.....................................  27
      7.2.      Superiority of Lease: Option to Subordinate....................  28

ARTICLE VIII    Miscellaneous Provisions.......................................  28
      8.1.      Notices from One Party to the Other............................  28
      8.2.      Quiet Enjoyment................................................  29
      8.3.      Recordation of Lease...........................................  29
      8.4.      Bind and Inure:  Limitation of Landlord's Liability............  29
      8.5.      Acts of God....................................................  29
      8.6.      Landlord's Default; Tenant's Right of Self-Help................  30
      8.7.      Brokerage......................................................  30
      8.8.      Applicable Law and Construction................................  30
      8.9.      Submission Not an Offer........................................  31
      8.10.     Security Deposit...............................................  31
      8.11.     Parties Responsible for Costs of Own Obligations...............  32
      8.12.     Limitation on Damages..........................................  32

ARTICLE IX      First Opportunity; Right of First Refusal......................  32
      9.1.      Tenant's Right of First Opportunity to Purchase................  32
      9.2.      Tenant's Right of First Refusal................................  33

ARTICLE X       Development of Expansion Lot...................................  33
      10.1.     Tenant's Approval Right During Term............................  33
      10.2.     Activities on Expansion Lot....................................  34
      10.3.     Construction Activities of Landlord on Expansion Lot...........  34
      10.4.     Expansion Right................................................  34

ARTICLE XI      Landlord's Representations And Warranties......................  36
      11.1.     Representations and Warranties of Landlord.....................  36
</TABLE>

                                     - ii -

<PAGE>

EXHIBIT A   DESCRIPTION OF PRIMARY LOT

EXHIBIT B   DESCRIPTION OF EXPANSION LOT

EXHIBIT C   FIXTURES, FURNISHINGS AND EQUIPMENT OF TENANT TO BE
            REMOVED FROM PREMISES

EXHIBIT D   NOTICE OF LEASE

EXHIBIT E   FORM OF PURCHASE AGREEMENT

                                    - iii -

<PAGE>

                                 LEASE AGREEMENT

      ARE-MA Region No. 20, LLC, a Delaware limited liability company (the
"Landlord"), hereby leases and demises to ARQULE, INC., a Delaware corporation
(the "Tenant") and Tenant hereby leases from Landlord, the Premises (as
described in Section 1.1 of this Lease) on the terms and provisions of this
Lease.

                                   ARTICLE I

                                 REFERENCE DATA

      1.1. Incorporated References. Each reference in this Lease to any of the
following subjects shall be construed to incorporate the data stated for that
subject in this Section 1.1.

Primary Lot:                          The parcel of land described in Exhibit A
                                      attached hereto.

Expansion Lot:                        The parcel of land described in Exhibit B

attached hereto.

Cross-Easements:                      Those rights and easements appurtenant to
                                      the Primary Lot for drainage facilities,
                                      water and sewer and other utility lines,
                                      granted pursuant to recorded instruments,
                                      including the Easement and Agreement made
                                      as of December 7, 2000, and recorded in
                                      the Middlesex South Registry District of
                                      the Land Court as Document No. 1158395
                                      (the "Easement and Agreement" and together
                                      with the Declaration of Protective
                                      Covenants (hereinafter defined) and other
                                      appurtenant easements, the "Cross
                                      Easements"). Landlord shall not amend or
                                      modify any Cross Easements without the
                                      prior consent of Tenant, which may be
                                      withheld by Tenant in its reasonable
                                      discretion.

Premises:                             The Primary Lot, the Building and the
                                      Cross-Easements.

Building:                             The building located on the Primary Lot.

Rentable Area of Building:            128,325 square feet on three levels. The
                                      19,473 square feet of mechanical space in
                                      the Building is excluded from the Rentable
                                      Area of Building and the calculation of
                                      Annual Fixed Rent.

                                     - 1 -
<PAGE>

Original Address of Landlord:         ARE-MA Region No. 20, LLC

c/o Alexandria Real Estate Equities,
Inc.

135 North Robles Avenue, Suite 250

Pasadena, CA  91101

Attention:  Corporate Secretary

Original Address of Tenant:           19 Presidential Way

                                      Woburn, MA 01801

Landlord's Representative:            Thomas Andrews

Tenant's Representative:              Steven M. Lacerte

Security Deposit:                     $1,604,063 (equal to six (6) months' of
                                      Annual Fixed Rent during Original Term in
                                      the form of a Letter of Credit)

Term Commencement Date:               May __, 2005

Original Term:                        If the Term Commencement Date is the first
                                      day of a calendar month, the period
                                      beginning on the Term Commencement Date
                                      and ending on the day before the tenth
                                      (10th) anniversary of the Term
                                      Commencement Date. If the Term
                                      Commencement Date is a day other than the
                                      first day of a calendar month, the period
                                      beginning on the Term Commencement Date
                                      and ending on the last day of the month in
                                      which the tenth (10th) anniversary of the
                                      Term Commencement Date occurs (whichever
                                      of the foregoing expiration dates is
                                      applicable, the "Original Term Expiration
                                      Date").

Extended Terms:                       Two (2) five (5) year periods, subject to
                                      the provisions of Section 2.2.

Intended Uses:                        General office, manufacturing, research
                                      and development (including RDNA, genetic,
                                      biomedical and combinational chemistry,
                                      and animal testing), testing laboratory,
                                      other accessory general office and
                                      manufacturing uses, and other uses
                                      ancillary and/or related thereto,
                                      including but not limited to parking.

                                     - 2 -
<PAGE>

Other Charges:                        Amounts payable by the owner of the
                                      Primary Lot under that certain Declaration
                                      of Protective Covenants dated May 27,
                                      1988, and recorded with the Middlesex
                                      South Registry District of the Land Court
                                      as Document No. 777192, as amended by
                                      Amendment to Declaration of Covenants
                                      dated October 12, 1989, and recorded with
                                      the Middlesex South Registry District of
                                      the Land Court as Document Number 809254
                                      (collectively, the "Declaration of
                                      Protective Covenants") and the Easement
                                      and Agreement.

Lease Year:                           (a) If the Term Commencement Date is the
                                      first day of a calendar month, each one
                                      year period beginning on the Term
                                      Commencement Date and each anniversary
                                      thereof and ending on the day before the
                                      next succeeding such anniversary and (b)
                                      If the Term Commencement Date is a day
                                      other than the first day of a calendar
                                      month, each one year period beginning on
                                      the first day of the calendar month
                                      immediately after the month in which the
                                      Term Commencement Date occurs, and each
                                      anniversary of such day, and ending on the
                                      day before the next succeeding such
                                      anniversary. Appropriate pro-rations shall
                                      be made for any partial months or other
                                      periods prior to the commencement of the
                                      first Lease Year.

Broker(s):                            CBRE Lynch Murphy Walsh Advisors

Public Liability Insurance Limits     Comprehensive General Liability Limit of
(per occurrence)::                    $5,000,000

Annual Fixed Rent:                    Determined under Sections 2.3 and 2.4 of
                                      this Lease.

      1.2. Exhibits. The Exhibits listed below in this Section are incorporated
in this Lease by reference and are to be construed as a part of this Lease:

EXHIBIT A:                            Description of Primary Lot.

EXHIBIT B:                            Description of Expansion Lot.

EXHIBIT C:                            Fixtures, Furnishings and Equipment of
                                      Tenant to be removed from Premises

EXHIBIT D:                            Form of Notice of Lease

EXHIBIT E:                            Form of Purchase Agreement

                                     - 3 -
<PAGE>

                                   ARTICLE II

                           LEASE GRANT; EXTENDED TERMS

      2.1. Term. Landlord leases the Premises to Tenant and Tenant leases the
Premises from Landlord, for the Term.

      2.2. Option to Extend Term. Tenant shall have two (2) separate options to
extend the then term of this Lease, in each case for an additional five (5) year
period (i.e., for a total, if any of such options is exercised as provided
herein, of ten (10) successive years beyond the Original Term) (each five (5)
year period being referred to herein as an "Extended Term"), provided (i) to
exercise any such option, Tenant shall give notice in writing to Landlord of its
exercise not less than twelve (12) months prior to expiration of the Original
Term or the first Extended Term, as applicable (the "Exercise Date"), and (ii)
no default continuing beyond any applicable notice, grace or cure period in the
obligations of Tenant under this Lease shall exist at the time each such notice
is given. All of the terms and provisions of this Lease shall be applicable
during each such Extended Term except that (i) Tenant shall have no option to
extend the Term of this Lease beyond the second Extended Term and (ii) the
Annual Fixed Rent for each Extended Term shall be adjusted in accordance with
Section 2.4 hereof. The word "Term" or "term" as used herein shall mean the
Original Term, plus any of the Extended Terms as to which Tenant shall have
exercised its option under this Section 2.2.

      2.3. Annual Fixed Rent During the Original Term. For the Original Term of
this Lease the Annual Fixed Rent for the Building shall be as set forth below:

<TABLE>
<CAPTION>
                                     Annual Fixed Rent    Annual Fixed      Annual Fixed
               Lease Year             per square foot         Rent         Rent per month
---------------------------------    -----------------    -------------    --------------
<S>                                  <C>                  <C>              <C>
Commencement Date through
May 31, 2006                              $23.1200        $2,966,874.00      $247,239.50
June 1, 2006 through May 31, 2007         $23.8136        $3,055,880.22      $254,656.69
June 1, 2007 through May 31, 2008         $24.5280        $3,147,556.63      $262,296.39
June 1, 2008 through May 31, 2009         $25.2638        $3,241,983.33      $270,165.28
June 1, 2009 through May 31, 2010         $26.0218        $3,339,242.83      $278,270.24
June 1, 2010 through May 31, 2011         $26.8024        $3,439,420.11      $286,618.34
June 1, 2011 through May 31, 2012         $27.6065        $3,542,602.71      $295,216.89
June 1, 2012 through May 31, 2013         $28.4347        $3,648,880.79      $304,073.40
June 1, 2013 through May 31, 2014         $29.2877        $3,758,347.22      $313,195.60
June 1, 2014 through May 31, 2015         $30.1664        $3,871,097.64      $322,591.47
</TABLE>

      2.4. Annual Fixed Rent During Extended Terms.

            (a) If Tenant shall exercise its option(s) to extend the Term
pursuant to Section 2.2, the Annual Fixed Rent shall be adjusted, effective as
of the first day of each Extended Term (each an "Adjustment Date"), to equal
ninety-five (95%) of the Market Rent (as hereinafter determined and defined) as
of the applicable Adjustment Date. "Market Rent" shall be computed as of each
Adjustment Date at the fair market rental rate (per square foot of Rentable
Area) that would be agreed upon between a landlord and a tenant entering into a
new

                                     - 4 -
<PAGE>

lease for "as is" space in a comparable building, taking into account and giving
effect to (i) the estimated savings to Landlord of costs and expenses associated
with leasing the Premises to Tenant rather than to a third party, including
without limitation leasing commissions and lost rent due to vacancy periods and
(ii) in determining comparability, considerations such as size, configuration,
location (i.e., suburbs of Boston, excluding Cambridge, MA and Boston city
limits), quality, age and condition of premises and lease term, assuming the
landlord and tenant are informed and well-advised and each is acting in what it
considers its own best interests. Market Rent shall include the provision by
Landlord to Tenant of a tenant improvement allowance, free rent and/or other
special concessions ("Fair Market Concessions") in amounts that would be agreed
upon between a landlord and a tenant entering into a new lease for comparable
space as to location (i.e., suburbs of Boston, excluding Cambridge, MA and
Boston city limits), configuration, size and use, in a comparable building as to
location, quality, reputation and age, with a comparable build-out, and a
comparable term, assuming the landlord and tenant are informed and well-advised
and each is acting in what it considers its own best interests. Notwithstanding
anything to the contrary in this Section 2.4(a), the determination of Market
Rent pursuant to Section 2.4(b) shall exclude the value of Tenant's Property and
any installations, alterations or additions to the Premises made after the date
of this Lease. In determining the Market Rent, the net present value approach
shall be utilized (with an appropriate discount rate) to reflect the fact that
Landlord will realize the savings set forth in clause (i) above immediately upon
the commencement of the applicable Extended Term.

            (b) Landlord and Tenant shall negotiate in good faith to determine
the Annual Fixed Rent (including Fair Market Concessions) for the applicable
Extension Period, for a period of thirty (30) days after the date on which
Landlord receives Tenant's written notice of Tenant's election to exercise the
extension option provided for under this Section. In the event Landlord and
Tenant are unable to agree upon the Annual Fixed Rent for any Extension Period
within said thirty (30)-day period, the Market Rent for the Premises shall be
determined by two (2) licensed real estate brokers, one of whom shall be named
by the Landlord and one of whom shall be named by Tenant. Each real estate
broker so selected shall be licensed in the jurisdiction in which the Building
is located as a real estate broker specializing in the field of
laboratory/biotech leasing in the suburban Boston, Massachusetts area, having no
less than ten (10) years' experience in such field, and recognized as ethical
and reputable within the field. Landlord and Tenant agree to make their
appointments promptly within ten (10) days after the expiration of the thirty
(30)-day period, or sooner if mutually agreed upon. Each broker, within fifteen
(15) days after both brokers have been selected, shall submit his or her
determination of the Market Rent and the Fair Market Concessions. If the higher
determination of Market Rent is not more than ten percent (10%) of the lower
determination (based on net present values using an annual discount rate of five
percent (5%)), then the Market Rent shall be the average of the two (2) rental
rate and concession determinations. If the higher determination of Market Rent
is greater than 10% of the lower determination of Market Rent, then the two (2)
brokers selected by Landlord and Tenant shall promptly select a third broker
within ten (10) days after they have delivered their determinations. The third
broker shall meet all the qualifications required above for the first two (2)
brokers and shall make its determination of the Market Rent within ten (10) days
after he or she has been appointed. In such event, the Market Rent shall be the
determination of the three brokers (on a net present value basis as described
above) that is not the highest or the lowest determination, provided, that, if
any two brokers have an identical determination of Market Rent, such
determination shall be the Market Rent hereunder for the

                                     - 5 -
<PAGE>

applicable Extension Term. Subject to Section 2.4(c), Landlord and Tenant shall
each pay the fee of the broker selected by it, and they shall equally share the
payment of the fee of the third broker.

            (c) If the Market Rent is determined by brokers pursuant to Section
2.4(b), Tenant shall have the right, within ten (10) days after such
determination, to revoke its notice to extend the term of this Lease, in which
event Tenant shall be obligated to pay the fees of all of the brokers engaged to
determine Market Rent, and the Term of this Lease shall expire at the end of the
then current Term. If Tenant does not revoke its notice to extend the Term of
this Lease pursuant to the immediately preceding sentence, then, within thirty
(30) days after the Market Rent is determined, whether by agreement of Landlord
and Tenant or by brokers, as aforesaid, the parties shall promptly execute a
supplement to this Lease confirming the same.

                                  ARTICLE III

                                      RENT

      3.1. Annual Fixed Rent. Tenant covenants and agrees to pay rent ("Annual
Fixed Rent") to Landlord at the original Address of Landlord or at such other
place or to such other person or entity as Landlord may by written notice to
Tenant from time to time direct, at the Annual Fixed Rent set forth in, or
determined by the provisions of, Article II, in equal installments equal to
1/12th of the Annual Fixed Rent in advance on the first day of each calendar
month during the Term; and for any portion of a calendar month at the beginning
of the Term, prorated for such portion.

      3.2. Additional Rent. Tenant covenants and agrees to pay as Additional
Rent to Landlord an administrative management fee in the amount of Fifteen
Thousand Dollars ($15,000) per year, which amount shall be due and payable on
the first anniversary of the Commencement Date and on each anniversary of the
Commencement Date during the Original Term. In addition, Tenant shall pay the
amounts provided for in Section 3.3 and Section 3.4 as Additional Rent.

      3.3. Real Estate Taxes.

            (a) Each year during the Term, Landlord shall submit to Tenant a
statement of all invoices for Real Estate Taxes (hereinafter defined) payable by
Tenant pursuant to this Section 3.3, and Tenant shall pay the same to Landlord
not later than ten (10) days prior to the date on which the same may be paid
without interest or penalty. For purposes of this Lease, the term "Real Estate
Taxes" shall mean: (i) all taxes, assessments (special or otherwise), levies,
fees, water and sewer rents and charges and all other governmental levies and
charges, general and special, ordinary and extraordinary foreseen and
unforeseen, to the extent allocable to the Term hereof, imposed with respect to
the ownership or operation of the Primary Lot or the Building; and (ii) all
charges for utilities furnished to the Premises which may become a lien on the
Building or the Primary Lot (collectively "taxes and assessments" or if singular
"tax or assessment"). "Real Estate Taxes" shall not include any income, sales,
gross receipts, value added, estate, transfer, capital gains, inheritance,
succession, gift, franchise, capital stock tax, any income taxes arising out of
or related to the ownership and operation of the Primary Lot or the Building or
any taxes relating to the Expansion Lot. Tenant shall have the right to apply to
the

                                     - 6 -
<PAGE>

appropriate governmental authority or agency to have taxes and assessments
assessed directly to Tenant, and Landlord shall cooperate with Tenant completing
such application and documentation necessary to effect such direct assessment.
In the case of any such taxes and assessments assessed directly to Tenant,
Tenant shall cause the same to be paid on or prior to the date on which the same
may be paid without interest or penalty.

            (b) With respect to any taxes and assessments assessed directly to
Landlord, Landlord shall pay all taxes and assessments to the applicable
government authorities before or on the dates due, and shall promptly provide to
Tenant evidence of such payment.

            (c) With respect to taxes and assessments which may lawfully be paid
in installments, for the purpose of this Section 3.3, taxes and assessments in
any period shall include only such portion of the same which is required to be
paid within such period and any interest payable thereon computed (whether or
not such is the case) as if Landlord had elected to pay the same over the
longest period permitted by law.

            (d) If, at any time during the Term, the present system of ad
valorem taxation of real property shall be changed so that in lieu of the whole
or any part of the ad valorem tax on real property, there shall be assessed on
Landlord a capital levy or other tax on the gross rents received with respect to
the Primary Lot and Building, or both, or a federal, state, county, municipal,
or other local income, franchise, excise or similar tax, assessment, levy or
charge (distinct from any now in effect) measured by or based, in whole or in
part, upon gross rents, then any and all of such taxes, assessments, levies or
charges, to the extent so measured or based ("Substitute Taxes"), shall be
payable by Tenant without duplication; provided, however, Tenant's obligation
with respect to the aforesaid Substitute Taxes shall be limited to the amount
thereof as computed at the rates that would be payable if the Premises were the
only property of Landlord. Landlord shall furnish to Tenant a copy of any notice
of any public, special or betterment assessment received by Landlord concerning
the Premises and charged to Tenant hereunder promptly upon Landlord's receipt
thereof.

            (e) If Landlord shall obtain any abatement or refund on account of
any real estate taxes as to which Tenant shall have paid payments hereunder,
then, within thirty (30) days after receiving the same, Landlord shall refund to
Tenant Tenant's portion of any such abatement or refund, after deducting
therefrom the reasonable costs and expenses incurred by Landlord in obtaining
such abatement or refund.

            (f) For so long as taxes are assessed directly against Landlord, if
at least twenty (20) days prior to the last day for filing an application for
abatement of taxes or assessments for any tax year, Tenant shall give notice to
Landlord that it desires to file an application for abatement of such taxes and
assessments or to otherwise contest the assessed valuation of the Primary Lot
and Building for such tax year, and if within ten (10) days after the receipt of
such notice, Landlord does not give notice back to Tenant that Landlord shall
itself file such application or commence such contest, then Tenant shall have
the right either in its own name or in the name of Landlord but at its own cost
and expense to file such application or commence such contest. If within ten
(10) days after receipt by Landlord of such notice from Tenant, Landlord shall
give Tenant notice that Landlord shall itself file such application or commence
such contest, then Landlord shall do so prior to the expiration of the time for
the

                                     - 7 -
<PAGE>

filing of the same at its own cost and expense. In any event, if any abatement
by whomever prosecuted shall be obtained, the cost and expense of obtaining the
same shall be the first charge upon such abatement and shall be reimbursed to
the party expending the same from the proceeds thereof, prior to any other
distribution. If Tenant shall file an application for abatement or commence such
contest pursuant to the provisions of this paragraph, Tenant shall prosecute the
same to final determination with reasonable diligence and shall not, without
Landlord's consent (which shall not be unreasonably withheld, conditioned or
delayed), settle, compromise or discontinue the same except that Tenant may
discontinue the prosecution of the same at any time after giving Landlord notice
thereof and a reasonable opportunity to assume prosecution of the same. If
Landlord shall file an application for abatement or commence such contest,
Landlord shall prosecute the same to final determination with reasonable
diligence and shall not without Tenant's consent (which shall not be
unreasonably withheld, conditioned or delayed), settle, compromise, or
discontinue the same except that Landlord may discontinue the prosecution of the
same at any time after giving Tenant notice thereof and a reasonable opportunity
to assume prosecution of the same. If either party shall file an application for
an abatement or commence such contest, the other will cooperate and furnish any
pertinent information in its files reasonably required by the prosecuting party.
In every case, any abatement, refund, rebate or credit received shall be paid
first to the party which prosecuted such abatement in the amount of the costs
and expenses expended by it in such connection, and the balance to each party
(within thirty (30) days after receipt) in the proportion that it paid the tax
or assessment being abated, refunded, rebated or credited. Landlord shall pay
any sums due to Tenant from any abatement within thirty (30) days after receipt
of the same even if this Lease shall have expired. Tenant shall timely pay all
sums payable under this Lease in respect of taxes and assessments
notwithstanding the pendency of an abatement proceeding or any such contest.

            (g) Real Estate Taxes assessed for a real estate tax fiscal year
which extends after the Term or earlier termination of this Lease shall be
apportioned between Landlord and Tenant at the expiration of the Term.

      3.4. Insurance. Throughout the Term, subject to Section 3.5(b), Landlord
shall obtain and maintain the insurance listed in Sections 3.4(b) and 3.4(c), at
Tenant's sole cost and expense, which shall be payable by Tenant as Additional
Rent, and Tenant shall obtain and maintain the insurance listed in Section
3.4(a) at Tenant's sole cost and expense:

            (a) Commercial general liability insurance indemnifying Landlord and
Tenant, and if Landlord shall elect, Landlord's mortgagees, against all claims
and demands for any injury to person or property which may be claimed to have
occurred on the Premises or on the sidewalk or ways immediately adjoining the
Premises (including, without limitation the main access driveway), in amounts
which shall, at the beginning of the Term, be at least equal to the limits set
forth in Section 1.1, and, from time to time during the Term, shall be for such
higher limits, if any, as are reasonably required by Landlord; provided,
however, that such increases shall not be required more than biannually, shall
not be required if comparable landlords of comparable buildings do not require
such increases, and shall not exceed those amounts then customarily carried on
properties similar to the Premises in the greater Boston area;

            (b) Direct risk of physical loss (all risk) insurance which shall in
no event be less than 100% replacement value of the Premises (in the Yield-Up
Condition), together with

                                     - 8 -
<PAGE>

rental loss coverage in an amount equal to one year's Annual Fixed Rent and
estimated additional rent, insuring the Building and its rental value with a
replacement cost coverage endorsement and agreed value endorsement, together
with deductibles not to exceed $250,000; and

            (c) Insurance against loss or damage from sprinklers and from
leakage or explosions or cracking of boilers, pipes carrying steam or water, or
both, pressure vessels or similar apparatus (to the extent that any of the
foregoing are present in the Premises), in the so-called "broad form", in such
amounts and with such deductibles as Landlord may reasonably determine, and
insurance against such other hazards and in such amounts as may from time to
time be required by a bank, insurance company or other lending institution
holding a mortgage on the Building and/or the Primary Lot.

      3.5. Certain Provisions Applicable to Insurance Policies.

            (a) Policies for insurance provided for under the provisions of
Sections 3.4(b) and 3.4(c) shall have a deductible not in excess of $250,000,
and shall, in case of loss, be first payable to the holders of any mortgages on
the fee simple interest in the Building and/or the Primary Lot under a standard
mortgagee's clause, and shall be deposited with the holder of any mortgage or
with Landlord, as Landlord may elect. Landlord, Alexandria Real Estate Equities,
Inc. (so long as it is an indirect owner of the Landlord) and, if required,
Landlord's mortgagee, shall be named as an additional insured for general
liability in all such policies issued therefor. All policies for insurance
required under the provisions of Section 3.4 shall be obtained from responsible
companies qualified to do business in the Commonwealth of Massachusetts and in
good standing therein, having a Best's Insurance Rating of at least "A minus"
and a financial size category of at least "VIII". All policies for insurance
required hereunder shall also state that any loss will be payable in accordance
with such policy, notwithstanding any act or omission of either Landlord or
Tenant. Each of Landlord and Tenant agrees to furnish the other party with
copies of certificates on ACORD form 27 of all such insurance which such party
is obligated to obtain pursuant to Section 3.4 prior to the beginning of the
Term hereof and during each Extension Term. Each such policy shall be
noncancelable with respect to the interest of Tenant without at least thirty
(30) days, prior written notice thereto. In the event of a claim under any
insurance policies, Landlord and Tenant shall cooperate with one another and
provide the other party with copies of such insurance policies upon request.

            (b) Tenant shall pay the costs of insurance obtained by Landlord
pursuant to Section 3.4 (including general coverages, such as earthquake,
fidelity, etc typically maintained by Landlord or its affiliates for similar
properties, provided, that, at such time as the Premises is no longer owned by
an organization that, together with its affiliates, owns more than ten
properties similar to the Premises, the foregoing shall include only coverages
typically maintained by owners of properties similar to the Premises in the
greater Boston metropolitan area) as Additional Rent within thirty (30) days
after delivery of an invoice therefor by Landlord, together with reasonable
supporting documentation of such costs. In the event that Landlord obtains any
such insurance pursuant to a blanket insurance policy, Tenant shall be obligated
to pay only those insurance costs allocable to the Premises on an equitable
basis. Upon request from time to time by Tenant, Landlord shall provide
reasonable supporting documentation of how it allocates insurance costs under
its blanket insurance policy to the Premises.

                                     - 9 -
<PAGE>

      3.6. Waiver of Subrogation. Landlord and Tenant shall each procure an
appropriate clause in or endorsement to any property insurance covering the
Premises, the Building and personal property, fixtures and equipment located
therein, wherein the insurance companies shall waive subrogation or consent to a
waiver of right of recovery, and Landlord and Tenant agree not to make any claim
against, or seek to recover from, the other for any loss or damage to its
property or the property of others resulting from fire or other hazards to the
extent covered by such property insurance; provided, however, that the release,
discharge, exoneration and covenant not to sue contained herein shall be limited
by and coextensive with the terms and provisions of the waiver of subrogation or
waiver of right of recovery. If either party shall be unable to obtain the
inclusion of such clause even with the payment of an additional premium, then
such party shall attempt to name the other party as a loss payee under the
policy. If it shall not be possible to have the other party named as a loss
payee, even with the payment of an additional premium, then the first party
shall not be required to obtain such waiver of subrogation or consent to waiver
provision and such party shall so notify the first party and the first party's
agreement to name the other party as an additional insured shall be satisfied.
Tenant acknowledges that Landlord shall not carry insurance on, and shall not be
responsible for, (i) Tenant's Property, and (ii) any loss suffered by Tenant due
to interruption of Tenant's business.

      3.7. Utilities. Tenant shall pay directly to the proper authorities
charged with the collection thereof all charges for water, sewer, gas,
electricity, telephone and other utilities or services used or consumed on the
Premises, whether designated as a charge, tax, assessment fee or otherwise,
including, without limitation, water and sewer use charges and taxes, if any,
all such charges to be paid as the same from time to time become due. If Tenant
is not charged directly by the respective utility for any of such utilities or
services, Tenant shall from time to time, within ten (10) days of receipt of
Landlord's reasonably documented invoice therefor, pay to Landlord such charges.
Landlord shall not be liable for any interruption or failure in the supply of
any such utilities to the Premises; provided, however, that such failure or
interruption does not arise out of any willful act of Landlord or any of
Landlord's employees, servants, licensees, invitees, contractors, affiliates,
agents, or consultants (together, the "Landlord's Parties"). Notwithstanding the
foregoing, Tenant shall have the right to terminate this Lease upon notice to
Landlord if any interruption or failure in the supply of any utilities to the
Premises shall continue for more than one hundred eighty (180) consecutive days.
If Landlord receives any proceeds from a loss of rents insurance policy due to
the interruption or failure to provide utilities to the Premises, Landlord shall
abate the Annual Fixed Rent to the extent of the insurance proceeds received by
Landlord. In addition, Landlord shall use its best efforts to restore any
interrupted utility service affecting Tenant's use of the Premises.

      3.8. Net Lease; Nonterminability by Tenant.

            (a) The Annual Fixed Rent, the Additional Rent and all other amounts
payable hereunder to Landlord shall be paid without notice or demand and without
setoff, abatement, suspension, deferment, reduction or deduction except as
otherwise provided in this Lease or by operation of law, and Landlord shall have
no obligations in respect of the Premises or Tenant, except as otherwise
expressly provided herein.

                                     - 10 -
<PAGE>

            (b) This Lease shall not terminate, nor shall Tenant have any right
to terminate this Lease, nor shall the obligations and liabilities of Tenant set
forth herein be otherwise affected, except as otherwise expressly provided in
this Lease or by operation of law or by final decree or final judgment of any
court having jurisdiction.

                                   ARTICLE IV

                              ADDITIONAL COVENANTS

      4.1. Tenant's Affirmative Covenants. Tenant covenants at its expense at
all times during the Term and for such further time as Tenant occupies the
Premises or any part thereof:

            (a) Perform Obligations. To perform promptly all of the obligations
of Tenant set forth in this Lease; and to pay when due the Annual Fixed Rent and
Additional Rent and all charges, rates and other sums which by the terms of this
Lease are to be paid by Tenant.

            (b) Use. To use the Premises only for the Intended Uses, and from
time to time to procure all licenses and permits necessary therefor at Tenant's
sole expense and to provide copies thereof to Landlord.

            (c) Repair and Maintenance. To keep and maintain the Premises in
good condition and repair, including the plumbing, electrical, lighting, roof
membrane, interior mechanical systems, and all doors, door frames, and door
openers, and all windows, frames and plate glass located on and serving the
Premises, except for (a) reasonable use and wear, (b) damage resulting from
Casualty or Taking (which shall instead be governed by Article V), (c) portions
of the Premises that Landlord is obligated to repair and maintain in accordance
with Section 4.2, and (d) damage resulting from the negligent or other acts or
omissions of Landlord or Landlord's Parties ("Landlord's Negligence") (Landlord
hereby agreeing, subject to the waiver of subrogation provisions of Section 3.7
and in the case of a Casualty or Taking subject to the provisions of Article V,
to perform at Landlord's sole expense any repair or maintenance to the Premises
made necessary by Landlord's Negligence); to keep in a safe, secure and sanitary
condition all trash and rubbish temporarily stored at the Premises; to arrange
for and be responsible for all of the costs of a trash and rubbish removal
service in connection with Tenant's use of the Premises; and to make all
interior repairs and replacements (which shall not include replacements of the
Structural Components or foundation of the Building), which are required to keep
the Premises in good order, condition and repair as required hereunder, and to
do all other work necessary for the foregoing purposes whether the same may be
ordinary or extraordinary, foreseen or unforeseen.

            (d) Compliance with Law and Insurance Requirements. To make all
repairs, alterations, additions or replacements to the Premises required by any
law or ordinance or any order or regulation of any public authority other than
to the Structural Components and foundation of the Building; to keep the
Premises equipped with all safety appliances so required; to pay all municipal,
county, or state taxes assessed against the leasehold interest hereunder, or
against personal property of any kind on or about the Premises; not to dump,
flush, or in any way introduce any hazardous substances or any other toxic
substances into the septic, sewage or other waste disposal system serving the
Premises except in compliance with a valid sewer use permit;

                                     - 11 -
<PAGE>

not to generate, store or dispose of hazardous substances in or on the Premises
or dispose of hazardous substances from the Premises (including any discharge to
the sewer system serving the Premises) except for use, storage, generation and
off-site disposal of hazardous substances normally attendant to Building
operations and Tenant's manufacturing, research and development processes in
compliance with the Resource Conservation and Recovery Act of 1976, as amended,
42 U.S.C. Section 6901 et seq., the Massachusetts Hazardous Waste Management
Act, M.G.L. c. 21 C, as amended, the Massachusetts Oil and Hazardous Material
Release Prevention and Response Act, M.G.L. c. 2lE, as amended, and all other
applicable codes, regulations, ordinances and laws; to notify Landlord of any
incident which would require the filing of a notice under applicable law; to
provide Landlord, from time to time upon Landlord's reasonable request, a list
of hazardous substances which Tenant uses or stores on the Premises, subject to
such confidentiality, proprietary information and trade secret assurances as
Tenant may reasonably impose on Landlord, and without further disclosure of such
records and information to third parties; and to comply with the orders and
regulations of all governmental authorities with respect to zoning, building,
fire, health and other codes, regulations, ordinances or laws applicable to
Tenant's specific use of the Premises, except that Tenant may defer compliance
so long as the validity of any such law, ordinance, order or regulation shall be
contested by Tenant in good faith and by appropriate legal proceedings, if
Tenant first gives Landlord appropriate assurance against any loss, cost or
expense on account thereof. The term "hazardous substances" as used in this
paragraph shall mean "hazardous substances" as defined in the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended, 42
U.S.C. Section 9601 and regulations adopted pursuant to said Act.

      Landlord acknowledges that the Primary Lot and the Expansion Lot are
located adjacent to the Industri-plex Superfund site. Tenant acknowledges that
Tenant's Intended Uses will include the generation and storage of hazardous
substances on the Premises. Without limitation of any of Tenant's obligations
under this Lease in respect of the Premises or Landlord, Tenant agrees to
indemnify, defend with counsel acceptable to Landlord and hold harmless
Landlord, all of Landlord's mortgagees and their respective officers, directors,
principals, agents and employees from and against all loss, cost or damage that
any of them may incur or be liable for in connection with any condition on the
Premises or arising on the Premises relating to the release or threat of release
of hazardous substances in respect of the Premises and directly attributable to
the act, omission or neglect of Tenant or any of Tenant's employees, agents,
independent contractors or invitees including, without limitation, any condition
not in conformity with the requirements of applicable law.

      Within fifteen (15) days thereafter, Tenant shall provide copies to
Landlord of any notice that Tenant may receive, from or give to any governmental
authority or any other party in respect of any release or threat of release of
hazardous substances in respect of the Premises. Landlord and Landlord's
environmental consultants shall have the right from time to time, upon not less
than 24 hours' advance notice to Tenant and accompanied by a representative of
Tenant, to enter the Premises, subject to Tenant's rights and Landlord's
obligations under Section 4.6, to undertake at Landlord's sole cost an
assessment thereof to determine whether any release or threat of release of
hazardous substances has occurred, and Tenant shall cooperate with Landlord
(which cooperation shall not include Tenant's expenditure of money to third
parties) in undertaking such assessment, including, without limitation,
providing copies of such reports and such other information as Landlord or its
consultant may reasonably request, but subject to such

                                     - 12 -
<PAGE>

confidentiality, proprietary information and trade secret assurances as Tenant
may reasonably impose on Landlord, and without further disclosure of such
records and information to third parties; provided, however, Tenant may elect to
undertake such assessment using its own consultants if satisfactory to Landlord
and the holders of mortgages on the Premises and said consultants shall provide
to Landlord and such holders such assessment and a reliance letter from such
consultants regarding the aforesaid without additional charges beyond those
which Landlord would have incurred if Landlord's consultant had undertaken said
assessment. Tenant shall promptly correct any such condition if (a) such
condition does not comply with the requirements of applicable law or permits or
approvals, (b) such condition was caused by the act, omission, or neglect of
Tenant or any of Tenant's employees, agents, independent contractors or
invitees, and (c) Landlord gives written notice of such condition to Tenant
(with Tenant recognizing that Landlord shall have no duty to Tenant to conduct
such assessment or to give such notice to Tenant) in accordance with the
Massachusetts Contingency Plan and the requirements of any other applicable law.
If such assessment discloses any such release that exceeds reportable quantities
under applicable law and was caused by the act or omission of Tenant or any of
its employees, agents, contractors, or invitees, Tenant shall promptly reimburse
Landlord for all costs and expense Landlord may incur in undertaking such
assessment as Additional Rent.

      4.2. Landlord's Repair and Maintenance Obligations. Subject to the
provisions of Article V of this Lease, Landlord covenants, at its sole expense
at all times during the Term to keep in good order, condition and repair the
structural components, structural components of the roof, exterior walls,
foundation and the parking areas and driveways located on the Premises and/or
serving the Building (collectively, "Structural Components"). Without limitation
of the foregoing, Landlord shall be responsible, at its sole expense, for all
capital replacements of the Structural Components and for causing such
Structural Components to be in compliance with all applicable laws and
regulations during the entire Term. Landlord shall not be responsible for damage
to the Premises resulting from the negligence or other acts or omissions of
Tenant or Tenant's employees, servants, agents, contractors licensees,
affiliates, consultants or invitees ("Tenant's Negligence"), Tenant hereby
agreeing to perform at Tenant's expense any repair or maintenance to the
Premises made necessary by Tenant's Negligence; provided, however, that if such
damage to the Premises results from a Casualty (as defined in Section 5.1)
caused by Tenant's Negligence, Landlord shall repair, maintain or restore the
Premises or portion thereof in accordance with and to the extent required by
Article V.

      4.3. Tenant's Work. Tenant shall procure at Tenant's sole expense all
necessary permits and licenses before undertaking any work on the Premises; to
do all such work in a good and workmanlike manner employing materials of good
quality and so as to conform with all applicable zoning, building, fire, health
and other codes, regulations, ordinances and laws; to keep the Premises at all
times free of liens for labor and materials, and to discharge or bond over such
liens forthwith after notice thereof from Landlord; to employ for such work only
contractors approved by Landlord which approval shall not be unreasonably
withheld, delayed or conditioned; to require all contractors employed by Tenant
to carry worker's compensation insurance in accordance with statutory
requirements and commercial general liability insurance covering such
contractors on or about the Premises in amounts that at least equal the limits
set forth in Section 1.1; and to save Landlord harmless and indemnified from all
injury, loss, claims or damage to any person or property due to such work
(provided, however, that Tenant shall not

                                     - 13 -
<PAGE>

be required to indemnify and save Landlord harmless from Landlord's negligent or
intentional acts or omissions to act) and, upon Landlord's request, to furnish
to Landlord statements from all contractors and subcontractors certifying
payment in full of any obligation owed to them in respect of work undertaken on
the Premises.

      4.4. Tenant's Indemnity. Tenant hereby agrees to defend, with counsel
reasonably acceptable to Landlord (which approval shall not be unreasonably
withheld, delayed or conditioned), all actions against Landlord, any partner,
trustee, stockholder, officer, director, employee, beneficiary or member or
manager of Landlord, holders of mortgages secured by the Building and/or the
Primary Lot and any other party having an interest in the Premises ("Indemnified
Parties") with respect to, and to pay, protect, indemnify and save harmless, to
the extent permitted by law, all Indemnified Parties from and against, any and
all liabilities, losses, damages, costs, expenses (including reasonable
attorneys' fees), causes of action, suits, claims, demands or judgments of any
nature arising from (i) injury to or death of any person, or damage to or loss
of property, on or about the Premises, or connected with the use, condition or
occupancy thereof except to the extent caused by the negligent or intentional
act or omission to act of Landlord, (ii) violation of this Lease by Tenant, or
(iii) any wrongful act, fault, wrongful omission, or other misconduct of Tenant
or its agents, contractors, licensees, sublessees or invitees. Nothing in this
Section 4.4, however, shall derogate from the effectiveness of insurance
required to be maintained by Tenant under this Lease naming Landlord as an
insured. This Section 4.4 is further subject to the waiver of subrogation
provisions in Section 3.7.

      4.5. Landlord's Indemnity. Landlord hereby agrees to defend, with counsel
reasonably acceptable to Tenant (which approval shall not be unreasonably
withheld, delayed or conditioned), all actions against Tenant, any partner,
trustee, stockholder, officer, director, employee, beneficiary or member or
manager of Tenant ("Tenant Indemnified Parties") with respect to, and to pay,
protect, indemnify and save harmless, to the extent permitted by law, all Tenant
Indemnified Parties from and against, any and all liabilities, losses, damages,
costs, expenses (including reasonable attorneys' fees), causes of action, suits,
claims, demands or judgments of any nature arising from (i) injury to or death
of any person, or damage to or loss of property, on or about the Premises, or
connected with the use, condition or occupancy thereof to the extent caused by
the negligent or intentional act or omission to act of Landlord, (ii) violation
of this Lease by Landlord, or (iii) any wrongful act, fault, wrongful omission,
or other misconduct of Landlord or its agents, contractors, licensees,
sublessees or invitees. Nothing in this Section 4.5, however, shall derogate
from the effectiveness of insurance required to be maintained by Tenant under
this Lease naming Landlord as an insured. This Section 4.5 is further subject to
the waiver of subrogation provisions in Section 3.7. Landlord further agrees to
indemnify, defend with counsel acceptable to Tenant and hold harmless Tenant and
its officers, directors, principals, agents and employees from and against all
loss, cost or damage that any of them may incur or be liable for in connection
with any condition on the Premises or arising on the Premises relating to the
release or threat of release of hazardous substances in respect of the Premises
and directly attributable to the act, omission or neglect of Landlord or any of
Landlord's employees, agents, independent contractors or invitees including,
without limitation, any condition not in conformity with the requirements of
applicable law.

      4.6. Landlord's Right to Enter. Landlord and its agents shall be permitted
to enter into the Premises at reasonable times and upon reasonable advance
notice to examine the Premises, make

                                     - 14 -
<PAGE>

such repairs and replacements as Landlord may be entitled to make under this
Lease, without, however, any obligation to do so except as provided in this
Lease, to view the Premises for Tenant's compliance with Tenant's obligations
under this Lease, and show the Premises to prospective purchasers and lenders,
and, during the last twelve (12) months of the Term or earlier if Tenant shall
be in default under this Lease beyond applicable notice, grace and cure periods,
to show the Premises to prospective tenants and to keep affixed in suitable
places notices of availability of the Premises. Landlord's exercise of its right
of access to the Premises as provided in this Lease shall be subject to the
following: (a) Landlord shall not unreasonably interfere with Tenant's business
activities, (b) Landlord shall indemnify and hold harmless Tenant from and
against all loss, cost and expense resulting from the negligent or intentional
act or omission to act of Landlord in the course of exercise of such right, (c)
Landlord shall, except in the case of an emergency, enter the Premises only when
accompanied by a representative of Tenant during normal business hours and upon
not less than 24 hours' notice, in order to ensure the continued confidentiality
of Tenant's business materials, and (d) Landlord shall at all times adhere to
such safety, security, confidentiality, proprietary information and trade secret
rules and guidelines as Tenant may reasonably impose.

      4.7. Personal Property at Tenant's Risk. All of the furnishings, fixtures,
equipment, effects and property of every kind, nature and description of Tenant
and of all persons claiming by, through or under Tenant which, during the
continuance of this Lease or any occupancy of the Premises by Tenant or anyone
claiming under Tenant, may be on the Premises, shall, as between the parties, be
at the sole risk and hazard of Tenant and if the whole or any part thereof shall
be destroyed or damaged by fire, water or otherwise, or by the leakage or
bursting of water pipes, steam pipes, or other pipes, by theft or from any other
cause, no part of said loss or damage is to be charged to or to be borne by
Landlord, except that Landlord shall in no event be indemnified or held harmless
or exonerated from any liability to Tenant or to any other person, for any
injury, loss, damage or liability resulting from Landlord's Negligence. Tenant
shall insure Tenant's personal property.

      4.8. Payment of Cost of Enforcement. Tenant shall pay on demand Landlord's
expenses, including reasonable attorney's fees, incurred in successfully
enforcing any obligation of Tenant under this Lease continuing beyond applicable
notice, grace and cure periods or in curing any default by Tenant under this
Lease as provided in Section 6.4.

      4.9. Yield-Up.

            (a) At the expiration of the Term or earlier termination of this
Lease, Tenant shall surrender all keys to the Premises and shall remove the
furnishings, fixtures and equipment set forth in Exhibit C attached hereto, as
defined below. Tenant shall have the right, but not the obligation, to remove
any installments, alterations or improvements made by Tenant during the Term.
Tenant shall repair all damage caused by such removal and to yield-up the
Premises in broom-clean condition and in the same good order and repair in which
Tenant is obliged to keep and maintain the Premises by the provisions of this
Lease (except for reasonable wear and tear, damage by Casualty and Taking and
damage resulting from Landlord's Negligence).

            (b) Upon surrender of the Premises in accordance with this Section
4.9, the Premises shall be free of Hazardous Materials brought upon, kept, used,
stored, handled, treated,

                                     - 15 -
<PAGE>

generated in, or released or disposed of from, the Premises by any person other
than a Landlord Party (collectively, "TENANT HAZMAT OPERATIONS") and released of
all Hazardous Materials Clearances. At least three (3) months prior to the
surrender of the Premises at the end of the Term, Tenant shall deliver to
Landlord a narrative description of the actions proposed to be taken by Tenant
(the "SURRENDER PLAN") in order to surrender the Premises free of Hazardous
Materials and in a manner that results in the release of all Hazardous Materials
Clearances at the expiration or earlier termination of the Term. Such Surrender
Plan shall be accompanied by a current listing of (i) all Hazardous Materials
licenses and permits held by or on behalf of any Tenant Party with respect to
the Premises, and (ii) all Hazardous Materials used, stored, handled, treated,
generated, released or disposed of from the Premises, and shall be subject to
the reasonable review and approval of an environmental consultant selected by
Landlord and reasonably acceptable to Tenant to ensure that the Surrender Plan
is likely to result in the surrender of the Premises free of all Hazardous
Materials and in a manner that results in the release of all Hazardous Materials
Clearances. In connection with the review and approval of the Surrender Plan,
upon the request of Landlord, Tenant shall deliver to Landlord or its consultant
such additional non-proprietary information concerning Tenant HazMat Operations
as Landlord shall reasonably request. On or before such surrender, Tenant shall
deliver to Landlord evidence that the approved Surrender Plan shall have been
completed, and Landlord shall have the right, at Landlord's sole cost and
expense, to cause Landlord's environmental consultant to inspect the Premises
and perform such additional procedures as may be deemed reasonably necessary to
confirm that the Premises will be surrendered free of all Hazardous Materials
and that all Hazardous Materials Clearances have or will be issued as of the
effective date of such surrender or early termination of the Lease. Tenant shall
reimburse Landlord, as Additional Rent, for the actual out-of pocket expense
incurred by Landlord for Landlord's environmental consultant to review and
approve the Surrender Plan and to visit the Premises and verify satisfactory
completion of the same, which cost shall not exceed $5,000. Landlord shall have
the unrestricted right to deliver such Surrender Plan and any report by
Landlord's environmental consultant with respect to the surrender of the
Premises to third parties with a need to access to the information contained in
the Surrender Plan. The term "HAZARDOUS MATERIALS" means any substances,
materials or wastes currently or in the future deemed or defined in any
applicable law as "hazardous substances", "toxic substances", "contaminants",
"pollutants" or words of similar import, but shall expressly exclude any such
substances or materials contained in the Premises and/or used in connection with
the electrical, HVAC and other systems serving the Premises (such as hydraulic
oil used for the elevators and water treatment in the boilers) to the extent the
presence of such substances or materials is required for the proper operation of
the Premises and such systems and is in compliance with all applicable laws and
regulations.

            (c) If Tenant shall fail to prepare or submit a Surrender Plan
approved by Landlord, or if Tenant shall fail to complete the approved Surrender
Plan, or if such Surrender Plan, whether or not approved by Landlord, shall fail
to result in the surrender of the Premises free of Hazardous Materials and in
the issuance of all Hazardous Materials Clearances, then Landlord shall have the
right, from and after the expiration of the Term or the earlier termination of
this Lease, and continuing through and including the date that is 180 days
thereafter, to take such actions as Landlord may deem reasonably appropriate to
assure that all Hazardous Materials are removed from the Premises and all
Hazardous Materials Clearances are issued, the reasonable costs of which actions
shall be reimbursed by Tenant as Additional Rent.

                                     - 16 -
<PAGE>

            (d) The yield-up of the Premises in accordance with the foregoing
provisions of this Section 4.9 shall be referred to as the "Yield-Up Condition."
Landlord and Tenant shall conduct an inspection of the Premises prior to the end
of the Term to facilitate Landlord's identification of the items to be removed
under this Section 4.9. Any property not so removed that remains on or at the
Premises shall be deemed abandoned and may be removed and disposed of by
Landlord in such manner as Landlord shall determine, provided, that, Tenant
shall have no obligation to pay Landlord any expense incurred by it is effecting
such removal and disposition and in making any incidental repairs and
replacements to the Premises and for use and occupancy during the period after
the expiration of the Term and prior to Tenant's performance of its obligations
under this Section 4.9.

      4.10. Estoppel Certificates.

            (a) Upon not less than ten (10) business days' prior notice from
Landlord, Tenant shall execute and deliver to Landlord a statement in writing
certifying that this Lease is unmodified and in full force and effect and that
except as stated therein Tenant has no knowledge of any defenses, offsets or
counterclaims against its obligations to pay the Annual Fixed Rent and to
perform its other covenants under this Lease (or, if there have been any
modifications that the same is in full force and effect as modified and stating
the modifications and, if there are any defenses, offsets or counterclaims,
setting them forth in reasonable detail), the dates to which the Annual Fixed
Rent have been paid and a statement that Landlord is not in default hereunder
beyond applicable notice, grace and cure periods (or if in default beyond
applicable notice, grace and cure periods, the nature of such default, in
reasonable detail). Any such statement delivered pursuant to this Section 4.10
may be relied upon by any prospective purchaser or mortgage of the Premises, or
any prospective assignee of any such mortgage.

            (b) Upon not less than ten (10) business days' prior notice from
Tenant, Landlord shall execute and deliver to Tenant a statement in writing
certifying that this Lease is unmodified and in full force and effect and that
except as stated therein Landlord has no knowledge of any defenses, offsets or
counterclaims against its obligations to perform its covenants under this Lease,
(or, if there have been any modifications that the same is in full force and
effect as modified and stating the modifications and, if there are any defenses,
offsets or counterclaims, setting them forth in reasonable detail), the dates to
which the Annual Fixed Rent has been paid and a statement that Tenant is not in
default hereunder beyond applicable notice, grace and cure periods (or if in
default beyond applicable notice, grace and cure periods, the nature of such
default, in reasonable detail). Any such statement delivered pursuant to this
Section 4.10 may be relied upon by any prospective lender, subtenant or assignee
of Tenant.

      4.11. Park Restrictions. Each of Landlord and Tenant shall comply with the
restrictions and covenants set forth in Declaration of Protective Covenants.

      4.12. Holding Over. Tenant covenants that it will vacate the Premises
immediately upon the expiration or sooner termination of this Lease. If Tenant
retains possession of the Premises or any part thereof after the termination of
the Term without Landlord's express consent, Tenant shall be treated as a tenant
at sufferance and shall pay to Landlord the following percentages of Annual
Fixed Rent payable during the last Lease Year preceding expiration or
termination of the term: 110% for the first month of such holdover, 125% for the
second and

                                     - 17 -
<PAGE>

third months of such holdover and 150% thereafter. Landlord's acceptance of such
rent shall not in any manner adversely affect Landlord's rights to evict Tenant
from the Premises; provided, however, that such rent shall constitute liquidated
damages and Tenant shall have no obligation to pay separate or additional
damages incurred by Landlord. Landlord may elect to refuse payment of holdover
rent pursuant to this Section 4.12 and in such event Landlord shall have the
right to remove Tenant through summary proceedings for holding over beyond the
expiration of the Term of this Lease.

      4.13. Assignment and Subletting.

            (a) Except as otherwise expressly provided herein, Tenant shall not
assign this Lease or sublet all or any portion of the Premises without
Landlord's prior written consent, which consent shall not be unreasonably
withheld, delayed or conditioned. Within twenty (20) days after delivery by
Tenant of any request for Landlord's consent to a sublease or assignment,
Landlord shall deliver notice to Tenant indicating whether it consents or does
not consent to such proposed sublease or assignment. If Landlord withholds its
consent, such notice shall contain a detailed explanation of the factors
considered and conclusions arrived at by Landlord in withholding its consent. If
Landlord fails to deliver such notice to Tenant within such twenty (20) day
period, Landlord shall be deemed to have consented to the proposed assignment or
sublease. The sole factors that Landlord may consider in determining whether to
consent or not to consent to a sublease or assignment are (a) whether the
proposed subtenant or assignee has sufficient net worth and working capital to
perform the obligations under the proposed this Lease or the proposed sublease,
as the case may be and (b) whether the use and occupancy of the Premises by the
proposed subtenant or assignee would result in additional material financial
risks to Landlord. Landlord acknowledges that Tenant may, from time to time,
desire to grant Tenant's lender(s) a security interest in the equipment and
furnishings that Tenant may install or maintain in the Premises and that Tenant
shall have the right to grant such security interests without the consent of
Landlord, provided that no such security interest shall encumber any fixture
that Tenant is not entitled under the terms of this Lease to remove at the
expiration of the Term. Any attempted assignment of this Lease without the prior
written approval of Landlord shall be void. No assignment approved or permitted
to be made without Landlord's consent under the next following paragraph of this
Section 4.13, and no indulgence granted by Landlord to any assignee or
sublessee, shall in any way impair the continuing primary liability (which after
an assignment shall be joint and several with the assignee) of Tenant hereunder,
and no approval in a particular instance shall be deemed to be a waiver of the
obligation to obtain Landlord's approval in any other case.

            (b) Notwithstanding the terms of Section 4.13(a), Landlord agrees
that Tenant shall have the right, without Landlord's consent, to assign this
Lease or sublease all or a portion of the Premises, as applicable as follows:

                  (i) Tenant shall have the right to assign this Lease to a
Credit Entity (hereinafter defined). As used herein, a "Credit Entity" shall
mean any person that immediately following such assignment and having given
effect thereto will have a publicly traded unsecured senior debt rating of
"Baa2" or better from Moody's Investor's Services, Inc. or a rating of "BBB" or
better from Standard & Poor's Corporation (or comparable ratings from successor

                                     - 18 -
<PAGE>

rating agencies) (or, if such Person does not then have rated debt, a
determination that by either of such rating agencies its unsecured senior debt
would be so rated by such agency);

                  (ii) Tenant shall have the right to sublease all or a portion
of the Premises to a Credit Entity; or

                  (iii) Tenant shall have the right to assign this Lease or
sublet all or any portion of the Premises to any corporation, person or entity
directly or indirectly controlling or controlled by, or under common control
with, Tenant (an "Affiliate of Tenant") or to any successor by merger,
consolidation or acquisition of all or substantially all of the assets of
Tenant, provided that, in the case of an assignment to an Affiliate of Tenant or
to a successor by merger, consolidation or acquisition of all or substantially
all of the assets of Tenant, such assignee shall have a net worth and working
capital sufficient to enable such assignee to meet Tenant's financial
obligations hereunder.

            (c) In connection with any assignment of the Lease permitted without
the consent of Landlord pursuant to Section 4.13(b), effective on the date of
the assignment, Tenant shall be released from all obligations under this Lease
arising prior to such effective date.

            (d) If Landlord's consent is required with respect to any assignment
of this Lease or any sublease of the Premises or any part thereof, and Landlord
shall grant such consent, Tenant shall, in consideration therefor, pay to
Landlord, as Additional Rent, an amount equal to one-half of:

                  (i) in the case of an assignment, one-half (1/2) of all sums
and other consideration paid to Tenant by the assignee for, or by reason of,
such assignment to the extent such sums are in excess of the obligations assumed
by the assignee to pay Annual Fixed Rent, Additional Rent and other sums under
this Lease; and

                  (ii) in the case of a sublease, one-half (1/2) of any rents,
additional charges, or other consideration payable under the sublease by the
subtenant to Tenant that are in excess of the Annual Fixed Rent and Additional
Rent accruing during the term of the sublease in respect of the subleased space
(at the rate per square foot payable by Tenant hereunder) pursuant to the terms
hereof;

after deducting in both such cases all of Tenant's reasonable out-of-pocket
expenses actually and directly incurred in connection with such sublease or
assignment including, without limitation, reasonable legal fees, brokerage
commissions, marketing costs, alterations to the space, rent concessions, tenant
improvements or allowance, or any rent-free period, such expenses to be
amortized over the term of the sublease (in the case of a sublease) or over the
remaining term of this Lease (in the case of an assignment where the
consideration is not paid in a lump sum on the date of such assignment).

      The sums payable under this Section 4.13(d) shall be paid to Landlord as
and when payable by the subtenant or assignee to Tenant.

      4.14. Waste; Nuisance. Tenant shall not commit any nuisance or allow or
suffer any waste to the Premises.

                                     - 19 -
<PAGE>

      4.15. Installations, Alterations or Additions.

            (a) Tenant shall not make any installations, alterations or
additions in, to or on the Premises which would have a material adverse effect
on the structural or external architectural integrity of the Premises, or the
cost of which would exceed $250,000 with respect to a single project, without
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld, delayed or conditioned. In all cases where plans are
prepared for any work to be done by Tenant having a cost of more than $250,000
or involving structural modifications, Tenant shall furnish copies of the same
to Landlord no less than fifteen (15) days prior to the date on which Tenant
shall commence work in the Premises and in all such cases, Tenant shall provide
to Landlord as-built plans in respect of such work promptly after Tenant
completes the same.

            (b) Installations, alterations or improvements performed by Tenant
in or at the Building shall not require Landlord's prior consent if such
installations, alterations or improvements would not have a material adverse
effect on the structural or architectural integrity of the Premises. Landlord
shall not have the right to require Tenant to remove at the end of the Term
Tenant's Property or any installations, alterations or additions made during the
Term. Notwithstanding the foregoing, nothing in this Section 4.15 shall require
Tenant to obtain Landlord's consent to the installation, removal or substitution
of Tenant's Property (hereinafter defined) in connection with the operation of
Tenant's business so long as such installation, removal or substitution does not
adversely affect in any material respect any structural component of the
Building. "Tenant's Property" shall mean all of the following located in or used
by Tenant in connection with the Premises (which shall be the sole property of
Tenant): all personal property of any type whatsoever, all trade fixtures,
machinery, office equipment, manufacturing equipment and used in connection with
Tenant's business, production equipment, laboratory equipment, office equipment,
furniture, together with all additions thereto, substitutions therefor and
replacements thereof.

            (c) The following procedures shall apply with respect to any
installations, alterations or additions in, to or on the Premises that require
Landlord's prior consent pursuant to Section 4.15(a): Tenant shall submit to
Landlord for review and comment construction plans, specifications and drawings
for the Proposed Alterations ("Construction Drawings"). Landlord shall deliver
its written comments on the Construction Drawings to Tenant not later than ten
(10) business days after Landlord's receipt of the same. If Landlord does not
respond within ten (10) business days to any request by Tenant for consent to
the Construction Drawings, then Landlord's consent shall be deemed given. Such
process shall continue until the Construction Drawings are approved or deemed
approved by Landlord. Any disputes in connection with such comments shall be
resolved in accordance with Section 4.15(d) hereof.

            (d) In the event of any dispute regarding the design of the Proposed
Alterations, which is not settled within ten (10) business days after notice of
such dispute is delivered by one party to the other, Tenant shall make the final
decision regarding the design of the Tenant Improvements, provided (i) Tenant
acts reasonably and such final decision is either consistent with or a
compromise between Landlord's and Tenant's positions with respect to such
dispute, and (ii) such dispute does not involve a proposed modification or
alteration of the exterior shell of the Building.

                                     - 20 -
<PAGE>

            (e) Landlord and Tenant hereby agree that disputes over Proposed
Alterations that are not resolved pursuant to Section 4.15(c), (each, an
"ARBITRATION MATTER") which cannot be resolved between Landlord and Tenant will
be submitted to binding arbitration. If either party delivers to the other a
demand for arbitration of an Arbitration Matter, then Landlord and Tenant shall
meet (which meeting may take place by telephone conference) within three (3)
business days after delivery of the demand for arbitration and make a good faith
attempt to mutually appoint a single Arbitrator (as defined below) to determine
the Arbitration Matter. If Landlord and Tenant are unable to agree upon a single
Arbitrator, then each shall, by written notice delivered to the other within
five (5) business days after the meeting, select an Arbitrator. If either party
fails to timely give notice of its selection for an Arbitrator, the other
party's Arbitrator shall be the sole Arbitrator. If each party selects an
Arbitrator, then the two Arbitrators so appointed shall, within five (5)
business days after their appointment, appoint a third Arbitrator, who shall be
the sole Arbitrator. If the two Arbitrators so selected cannot agree on the
selection of the third Arbitrator within the time above specified, then either
party, on behalf of both parties, may request such appointment of such third
Arbitrator by application to any state court of general jurisdiction in the
jurisdiction in which the Premises are located, upon 5 business days prior
written notice to the other party of such intent. The Arbitrator shall hold an
arbitration proceeding, to be attended by Landlord and Tenant, within ten (10)
business days of the Arbitrator's appointment. The decision of the Arbitrator
shall be made within two (2) days after the arbitration proceeding. Each party
shall pay the fees and expenses of the Arbitrator appointed by or on behalf of
such party. The fees and expenses of any single Arbitrator or the third
Arbitrator shall be borne equally by both parties. The parties hereby waive any
right to appeal the decision of the Arbitrator. An "ARBITRATOR" for purposes of
this Section only shall be any person appointed by or on behalf of either party
pursuant to the provisions hereof and shall be a retired judge of the Superior
Court or Land Court of Middlesex County, Massachusetts or an individual
otherwise mutually agreed to by Landlord and Tenant.

            (f) Landlord shall not charge any fees for such approvals or in
connection with the construction of any such alterations.

      4.16. Signage. Tenant shall have the right, without the consent of
Landlord, to display Tenant identification signage on the exterior and interior
of the Building, in the parking areas serving the Building and on the Primary
Lot. The size, design and placement of said signage shall be in compliance with
applicable laws. Tenant shall have no obligation to remove any signage upon the
expiration or earlier termination of this Lease.

      4.17. Parking. Tenant shall have the exclusive right to use and occupy the
parking areas located on the Land.

      4.18. Landlord's Additional Covenants. Except for mortgages granted with
respect to the Premises to secure a financing, Landlord shall not encumber the
Premises or permit any other person to use or occupy the Premises without the
prior consent of Tenant. Without the prior written consent of Tenant, Landlord
shall not construct any installations, alterations or additions on, to or under
the Premises, except to the extent necessary to perform its obligations under
this Lease.

                                     - 21 -
<PAGE>

                                    ARTICLE V
                               CASUALTY OR TAKING

      5.1. Casualty.

            (a) If, at any time during the Term, the Building or the Premises
are damaged or destroyed by a fire or other insured casualty, Landlord shall
notify Tenant within 30 days after discovery of such damage (a "Restoration
Notice") as to the amount of time Landlord reasonably estimates it will take to
restore the Premises, as applicable (the "Restoration Period"). If the
Restoration Period is estimated to exceed fifteen (15) months (the "Maximum
Restoration Period"), Landlord may, in such notice, elect to terminate this
Lease as of the date that is seventy-five (75) days after the date of discovery
of such damage or destruction; provided, however, that notwithstanding
Landlord's election to restore, Tenant may elect to terminate this Lease by
written notice to Landlord delivered within forty-five (45) days of receipt of a
notice from Landlord estimating a Restoration Period for the Premises longer
than the Maximum Restoration Period. Unless either Landlord or Tenant so elects
to terminate this Lease pursuant to this Section 5.1, Landlord shall promptly
restore the Premises (including all tenant improvements that were part of the
Premises as of the date of this Lease), as needed to obtain any license,
clearance or other authorization of any kind required to enter into and restore
the Premises issued by any Governmental Authority having jurisdiction over the
use, storage, handling, treatment, generation, release, disposal, removal or
remediation of Hazardous Materials (hereinafter defined) in, on or about the
Premises (collectively referred to herein as "HAZARDOUS MATERIALS CLEARANCES");
provided, however, that if repair or restoration of the Premises is not
substantially complete as of the end of the Maximum Restoration Period, Landlord
shall cease all work, and Tenant may by written notice to Landlord delivered
within five (5) business days of the expiration of Maximum Restoration Period,
elect to terminate this Lease. If Tenant elects to terminate this Lease,
Landlord shall be relieved of its obligation to make repairs or restoration, and
this Lease shall terminate as of the date of discovery of such damage or
destruction. Landlord shall retain any Rent paid and the right to any Rent
payable by Tenant and applicable to the date of termination. If Tenant does not
timely elect to terminate, this Lease shall remain in full force and effect, and
Landlord shall complete all repairs and restoration as soon as reasonably
practicable.

            (b) Notwithstanding anything to the contrary contained in Section
5.1(a), (i) if there is Material Damage (as hereinafter defined) and the date
set forth in the Restoration Notice is more than twelve (12) months from the
date of such damage, then Tenant shall have the right to terminate this Lease by
giving notice to Landlord (a "TENANT TERMINATION NOTICE"), not later than thirty
(30) days following Tenant's receipt of the Restoration Notice. If this Lease is
terminated by Landlord pursuant to Section 5.1(a) or by Tenant pursuant to this
Section 5.1(b), (a) the Term shall expire upon the thirtieth (30th) day after
notice of termination is given or on such later date as Tenant reasonably
requires so long as Tenant is continuously and diligently using good faith
commercially reasonable efforts to relocate, (b) Tenant's liability for Rent
shall cease proportionately as of the date Tenant vacates the Premises, and (c)
any prepaid Rent for any period after the date Tenant's liability for Rent has
ceased shall be refunded by Landlord to Tenant.

                                     - 22 -
<PAGE>

            (c) For purposes of this Article V, the term "MATERIAL DAMAGE" shall
mean either (i) fifteen percent (15%) or more of the rentable area of the
Premises is damaged and thereby rendered untenantable or not reasonably usable
by Tenant for its then current Permitted Use, or (ii) a portion of the Premises
is damaged and as a result thereof, Tenant is denied reasonable use or access to
a material portion of the Premises.

            (d) Notwithstanding anything to the contrary in this Article V,
either Landlord or Tenant may terminate this Lease if the Premises are damaged
during the last 18 months of the Term and a third party architect or engineer
reasonably acceptable to both Landlord and Tenant determines that it will take
more than five (5) months to repair or restore such damage, or if insurance
proceeds are not available for such repair or restoration. Rent shall be abated
from the date of discovery of such damage or destruction until the Premises are
repaired and restored, in the proportion which the area of the Premises, if any,
which is not usable by Tenant bears to the total area of the Premises, unless
Landlord provides Tenant with other space during the period of repair that is
suitable for the temporary conduct of Tenant's business. Such abatement shall be
the sole remedy of Tenant, and except as provided in this Section 5.1, Tenant
waives any right to terminate the Lease by reason of damage or casualty loss.

            (e) The provisions of this Lease, including this Section 5.1,
constitute an express agreement between Landlord and Tenant with respect to any
and all damage to, or destruction of, all or any part of the Premises, and any
statute or regulation which is now or may hereafter be in effect shall have no
application to this Lease or any damage or destruction to all or any part of the
Premises, the parties hereto expressly agreeing that this Section 5.1 sets forth
their entire understanding and agreement with respect to such matters.

      5.2. Taking.

            (a) If during the Term the entire Premises shall be taken or
condemned by any public authority or for any public use or destroyed by the
action of any public authority (including by sale under threat of such a taking)
(a "Taking"), then this Lease shall terminate on the date on which title vests
in such public authority, and the Annual Fixed Rent and Additional Rent shall be
abated on and as of such date, and the parties' obligations hereunder shall
cease. If only a part of the Premises shall be subject to a Taking, then, except
as hereinafter provided in this Article, this Lease and the Term shall continue
in full force and effect, provided that from and after the date of the vesting
of title, the Annual Fixed Rent shall be modified to reflect the reduction of
the Premises and/or the Building as a result of such Taking.

            (b) If there is a Taking of more than fifty percent (50%) of the
Building, Landlord may elect to terminate this Lease by notice to Tenant given
within thirty (30) days after the effective time of such Taking, and this Lease
shall terminate effective as of the date set forth in Landlord's notice which
shall in no event be earlier than thirty (30) days from the date of such notice.

            (c) If (i) the part of the Premises subject to a Taking contains
more than ten percent (10%) of the total area of the Building or a material
portion of the parking area located on the Land, (and, with respect to the
parking areas, Landlord is unable to provide Tenant with replacement parking
reasonably acceptable to Tenant), immediately prior to such acquisition or

                                     - 23 -
<PAGE>

condemnation, or (ii) if, by reason of such acquisition or condemnation, Tenant
no longer has reasonable means of access to ten percent (10%) or more of the
area of the Building, then Tenant may terminate this Lease by notice to
Landlord, and this Lease shall end and expire on the effective time of the
Taking.

            (d) Upon any termination of this Lease pursuant to the provisions of
this Section 5.2, Annual Fixed Rent and Additional Rent shall be apportioned as
of, and shall be paid or refunded up to and including, the date of such
termination.

            (e) Upon any acquisition or condemnation of all or any part of the
Premises, Landlord shall receive the entire award for any such acquisition or
condemnation, and Tenant shall have no claim against Landlord or the condemning
authority for the value of any unexpired portion of the Term. Nothing contained
in this Article V shall be deemed to prevent Tenant from making a separate claim
in any condemnation proceedings for Tenant's Property, alterations installed by
Tenant or improvements, the then value of any Tenant's fixtures or personal
property and for any moving expenses.

      5.3. Restoration. If neither Tenant nor Landlord exercises its election to
terminate provided in Section 5.1 or 5.2, as may be applicable, then this Lease
shall continue in full force and effect and a just proportion of the Annual
Fixed Rent and other charges hereunder, according to the nature and extent of
the damages sustained, shall be abated from the date of Casualty or Taking until
Landlord shall have substantially completed the restoration of the Premises, as
provided under this Article V. Landlord shall complete such restoration with as
soon as practicable diligence at Landlord's expense, and the Premises shall be
put by Landlord in a condition as nearly as practicable to their condition
immediately prior to such Casualty or Taking, subject to zoning and building
laws or ordinances then in existence.

      5.4. Award. Irrespective of the form in which recovery may be had, all
rights to damages for all such Takings, subject to the allocation provisions
sets forth below, shall belong to Landlord in all cases; provided, however, that
Tenant shall have the right to pursue any separate claim to which it is entitled
for Tenant's Property and Tenant's trade fixtures and moving and relocation
expenses. Landlord and Tenant agree that the net proceeds of the damages treated
as belonging to Landlord under this Section 5.4 (except to the extent utilized
for restoration) shall be allocated as follows: first, to Landlord in the amount
equal to the then fair market value of the Premises in the Yield-Up Condition;
second, to Tenant in the amount of the then unamortized (determined on a
straight-line basis over the Original Term of this Lease) cost of Tenant's
Property (exclusive of Tenant's Property not encompassed within such Taking)
(except to the extent the same are treated as trade fixtures and a separate
award is made on account thereof to Tenant); third, to Tenant in the amount of
the then fair market value of Tenant's leasehold interest in the Premises; and
fourth, to Landlord in the amount of the balance of the net proceeds. The
procedures for the determination of Market Rent under Section 2.4 of this Lease
shall be applicable to the determination of the fair market value of the
Premises.

      In the case of a Taking which permanently reduces the Premises, the Annual
Fixed Rent and other charges due hereunder shall be equitably abated or adjusted
for the balance of the Term.

                                     - 24 -
<PAGE>

                                   ARTICLE VI

                                    DEFAULTS

      6.1. Events of Default. (a) If Tenant shall default in the performance of
any of its obligations to pay the Annual Fixed Rent and if such default shall
continue for ten (10) days after written notice from Landlord designating such
default (provided that Landlord shall not be required to give any such notice
more than two (2) times in any twelve (12)-month period), or (b) if Tenant shall
default in the performance of any of its obligations to pay Additional Rent
hereunder and if such default shall continue for ten (10) days after written
notice from Landlord designating such default, or (c) if within thirty (30) days
after written notice from Landlord to Tenant specifying any other default or
defaults Tenant has not commenced diligently to correct the default or defaults
so specified or does not thereafter diligently prosecute such correction to
completion within a reasonable period of time under the circumstances, or (d) if
any assignment for the benefit of creditors shall be made by Tenant without
Landlord's consent, or (e) if Tenant's leasehold interest shall be taken on
execution or other process of law in any action against Tenant, or (f) if a lien
or other involuntary encumbrance is filed against Tenant's leasehold interest
and is not discharged or bonded within forty-five (45) days thereafter, or (g)
if a petition is filed by Tenant for liquidation or for reorganization or an
arrangement or any other relief under any provision of the Bankruptcy Code as
then in force and affect, or (h) if an involuntary petition under any of the
provisions of said Bankruptcy Code is filed against Tenant and such involuntary
petition is not dismissed within sixty (60) days thereafter, then, and in any of
such cases, Landlord and the agents and servants of Landlord lawfully may, in
addition to and not in derogation of any remedies for any preceding breach of
covenant, immediately or at any time thereafter and without demand or notice and
with or without process of law (forcibly, if necessary, to the extent permitted
by law) enter into and upon the Premises or any part thereof in the name of the
whole, or mail a notice of termination addressed to Tenant, and repossess the
same as of Landlord's former estate and expel Tenant and those claiming through
or under Tenant and remove its and their effects (forcibly, if necessary, to the
extent permitted by law) without being deemed guilty of any manner of trespass
and without prejudice to any remedies which might otherwise be used for arrears
of rent or prior breach of covenant, and upon such entry or mailing as aforesaid
this Lease shall terminate and Landlord, without notice to Tenant, may store
Tenant's effects and those of any person claiming through or under Tenant at the
expense and risk of Tenant and, if Landlord so elects, may sell such effects at
public auction or private sale and apply the net proceeds to the payment of all
sums due to Landlord from Tenant, if any, and pay over the balance, if any, to
Tenant.

      6.2. Remedies.

      In the event that this Lease is terminated under any of the circumstances
contained in Section 6.1, Tenant covenants to pay forthwith to Landlord, as
compensation, the excess of the total rent reserved for the residue of the Term
over the fair market rental value of the Premises for the residue of the Term,
which shall be calculated on a net present value basis using a discount rate
equal to the Prime Rate as published in the "Money Rates" Section of The Wall
Street Journal ("Prime Rate"). In calculating the rent reserved there shall be
included, in addition to the Annual Fixed Rent and Additional Rent, the value of
all other considerations agreed to be paid or performed by Tenant during the
residue. Tenant further covenants as

                                     - 25 -
<PAGE>

additional and cumulative obligation after any such termination to pay
punctually to Landlord all the sums and to perform all the obligations which
Tenant covenants in this Lease to pay and to perform in the same manner and to
the same extent and at the same time as if this Lease had not been terminated.
In calculating the amounts to be paid by Tenant pursuant to the preceding
sentence, Tenant shall be credited with any amount paid to Landlord as
compensation as provided in this Section 6.2, and also with the net proceeds of
any rent obtained by Landlord by reletting the Premises, after deducting all
Landlord's reasonable expenses in connection with such reletting; including,
without limitation, all repossession costs, brokerage commissions, fees for
legal services and expenses of preparing the Premises for such reletting, it
being agreed that Landlord shall use reasonable efforts to (i) relet the
Premises or any part or parts thereof for a term or terms which may at
Landlord's option be equal to or less than or exceed the period which would
otherwise have constituted the balance of the Term, which may include granting
such concessions and free rent as Landlord in its reasonable judgment considers
advisable or necessary to relet the same and (ii) make such alterations, repairs
and decorations in the Premises as Landlord in its reasonable judgment considers
advisable or necessary to relet the same, and no action of Landlord in
accordance with the foregoing or failure to relet or to collect rent under
reletting shall operate or be construed to release or reduce Tenant's liability
as aforesaid.

      Nothing contained in this Lease shall, however, limit or prejudice the
right of Landlord to prove and obtain in proceedings for bankruptcy or
insolvency by reason of the termination of this Lease, an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when, and
governing the proceedings in which, the damages are to be proved, whether or not
the amount be greater than, equal to, or less than the amount of the loss or
damages referred to above.

      6.3. Remedies Cumulative. Except as otherwise expressly provided herein,
any and all rights and remedies which either party may have under this Lease,
and at law and equity, shall be cumulative and shall not be deemed inconsistent
with one another, and any two or more of all such rights and remedies may be
exercised at the same time insofar as permitted by law.

      6.4. Landlord's Rights to Cure Defaults. Landlord may, but shall not be
obligated to, cure, at any time following notice to Tenant and expiration of all
applicable cure, notice and grace periods (except in cases of emergency, in
which case only such notice, if any, as may be reasonable under the
circumstances need be given), any default by Tenant under this Lease; and
whenever Landlord so elects, all reasonable costs and expenses incurred by
Landlord, including reasonable attorneys' fees, in curing a default shall be
paid by Tenant to Landlord as Additional Rent on demand, together with interest
thereon at the Delinquency Rate (as defined in Section 6.7) from the date of
payment by Landlord to the date of payment by Tenant.

      6.5. Effect of Waivers of Default. Any consent or permission by either
party to any act or omission which otherwise would be a breach of any covenant
or condition herein, or any waiver by either party of the breach of any covenant
or condition herein, shall not in any way be held or construed (unless expressly
so declared) to operate so as to impair the continuing obligation of any
covenant or condition herein, or otherwise, except as to the specific instance,
operate to permit similar acts or omissions.

                                     - 26 -
<PAGE>

      The failure of either party to seek redress for violation of, or to insist
upon the strict performance of, any covenant or condition of this Lease shall
not be deemed a waiver of such violation nor prevent a subsequent act, which
would have originally constituted a violation, from having all the force and
effect of an original violation. The receipt by Landlord of rent with knowledge
of the breach of any covenant of this Lease shall not be deemed to have been a
waiver of such breach by Landlord. No consent or waiver, express or implied, by
either party to or of any breach of any agreement or duty shall be construed as
a waiver or consent to or of any other breach of the same or any other agreement
or duty.

      6.6. No Accord and Satisfaction. No acceptance by Landlord of a lesser sum
than the Annual Fixed Rent, Additional Rent or any other charge then due shall
be deemed to be other than on account of the earliest installment of such rent
or charge due, unless Landlord elects by notice to Tenant to credit such sum
against the most recent installment due, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment as rent or other
charge be deemed an accord and satisfaction, and Landlord may accept such check
or payment without prejudice to Landlord's right to recover the balance of such
installment or pursue any other remedy provided in this Lease.

      6.7. Interest on Overdue Sums. If Tenant fails to pay any installment of
Annual Fixed Rent, Additional Rent and other charges payable by Tenant to
Landlord within ten (10) business days after the due date thereof (without
regard to any requirement of notice from Landlord or any period of grace allowed
to Tenant under this Lease before Landlord is allowed to exercise any remedy on
account thereof), the amount so unpaid shall bear interest at an annual rate
(the "Delinquency Rate") equal to 400 basis points above the Prime Rate, if such
rate is in excess of any maximum interest rate permissible under applicable law,
the Delinquency Rate shall be the maximum interest rate permissible under
applicable law, commencing with the due date and continuing through the day
preceding the date on which payment of such delinquent payment with interest
thereon is paid. Similarly, if Landlord fails to pay any amount payable to
Tenant by Landlord within ten (10) business days after the due date thereof, the
amount so unpaid shall bear interest at the Delinquency Rate, commencing with
the due date and continuing through the date preceding the date on which payment
of such delinquent payment with interest thereon is paid.

                                   ARTICLE VII

                                    MORTGAGES

      7.1. Rights of Mortgage Holders. The word "mortgage" as used herein
includes mortgages, deeds of trust or other similar instruments evidencing other
voluntary liens or encumbrances, and modifications, consolidations, extensions,
renewals, replacements and substitutes thereof. The word "holder" shall mean a
mortgagee, and any subsequent holder or holders of a mortgage.

      In the event of any act or omission by Landlord which would give Tenant
the right to terminate this Lease or to claim a partial or total eviction,
Tenant shall not exercise any such right (a) until it shall have given notice,
by certified or registered mail, of such act or omission to the holder of any
mortgage encumbering the Premises whose name and address shall have been

                                     - 27 -
<PAGE>

furnished to Tenant in writing, at the last address so furnished, and (b) unless
Landlord or such holder shall have failed to commence to remedy such act or
omission within thirty (30) days after such notice or thereafter diligently to
prosecute such remedy to completion.

      In the event any proceedings are brought for the foreclosure of, or in the
event of exercise of the power of sale under, any mortgage now or hereafter
encumbering the Premises, or any part thereof, Tenant shall attorn to the
purchaser upon such foreclosure or sale or upon any grant of a deed in lieu of
foreclosure and recognize such purchaser as Landlord under this Lease if so
requested by such purchaser, so long as such purchaser recognizes all of
Tenant's rights under this Lease.

      7.2. Superiority of Lease: Option to Subordinate. Unless Landlord
exercises the option set forth below in this Section 7.2, this Lease shall be
superior to and shall not be subordinate to any mortgage on the Premises.
Landlord shall have the option to subordinate this Lease to any mortgage of the
Premises provided that the holder of record thereof enters into a subordination
and non-disturbance agreement with Tenant, in form reasonably acceptable to
Tenant (the "SNDA"), by the terms of which such holder will agree (a) to
recognize the rights of Tenant under this Lease and not to disturb Tenant's
possession of the Premises so long as Tenant is not in default of its
obligations hereunder beyond applicable notice, grace and cure periods, (b) to
cure any repair or maintenance default which shall be continuing upon
acquisition of the Premises by such holder, (c) to perform Landlord's
obligations hereunder arising on and after the date of such holder's acquisition
of title and (d) to accept Tenant as tenant of the Premises under the terms and
conditions of this Lease in the event of acquisition of title by such holder
through foreclosure proceedings or otherwise, and Tenant will agree to recognize
the holder of such mortgage as Landlord in such event, and which agreement shall
be made expressly to bind and inure to the benefit of the successors and assigns
of Tenant and of the holder and upon anyone purchasing said Premises at any
foreclosure sale. Tenant and Landlord agree to execute and deliver any
appropriate and mutually acceptable instruments necessary to carry out the
agreements contained in this Section 7.2. Any such mortgage to which this Lease
shall be subordinated may contain such terms, provisions and conditions as the
holder deems usual or customary; subject to the provisions of the SNDA.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      8.1. Notices from One Party to the Other. All notices and other
communications required or permitted hereunder shall be in writing and
addressed, if to Tenant, at the Original Address of Tenant or such other address
as Tenant shall have last designated by notice in writing to Landlord and, if to
Landlord, at the Original Address of Landlord or such other address as Landlord
shall have last designated by notice in writing to Tenant. Any notice shall be
given by mailing to such address postage prepaid, registered or certified mail,
return receipt requested or by delivery by a nationally-recognized overnight
delivery service which provides delivery receipts, or delivered to such address
by hand. Any notice shall be effective upon receipt or tender of delivery.

                                     - 28 -
<PAGE>

      8.2. Quiet Enjoyment. Landlord agrees that upon Tenant's paying the rent
and performing and observing the terms, covenants, conditions and provisions on
its part to be performed and observed, Tenant shall and may peaceably and
quietly have, hold and enjoy the Premises during the Term without any manner of
hindrance or molestation from Landlord or anyone claiming under Landlord,
subject, however, to Landlord's remedies under this Lease in the event of a
default by Tenant hereunder.

      8.3. Recordation of Lease. Tenant shall, at its sole cost, have the right
to record this Lease in the land records of the jurisdiction in which the
Building is located. Both parties shall, upon the request of either, execute,
deliver and record a Notice of Lease in the form attached hereto as Exhibit D,
with such modifications as may be permitted by applicable statute, or otherwise
agreed to by the parties. If this Lease is terminated before the originally
scheduled expiration of the Term, the parties shall execute, deliver and record
an instrument acknowledging such fact and the actual date of termination of this
Lease, and Tenant hereby appoints Landlord its attorney-in-fact, coupled with an
interest, with full power of substitution to execute such instrument.

      8.4. Bind and Inure: Limitation of Landlord's Liability. The obligations
of this Lease shall run with the land, and this Lease shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. No owner of the Premises shall be liable under this Lease except for
breaches of Landlord's obligations occurring while owner of the Premises,
provided, however, that (a) any successor Landlord shall be obligated to cure
any repair or maintenance default of a prior Landlord which shall be continuing
upon acquisition of the Premises by such successor Landlord and (b) any
successor Landlord (other than a mortgagee or a person acquiring title on
foreclosure or conveyance in lieu of foreclosure) shall be obligated to cure any
payment default of a prior Landlord which shall be continuing upon acquisition
of the Premises by such successor Landlord. The obligations of Landlord shall be
binding upon the assets of Landlord which comprise the Premises, any portion
thereof, and any rents, proceeds, insurance proceeds and condemnation awards
arising therefrom. In no event shall Landlord be liable to Tenant for any
indirect, consequential or punitive damages arising out of a breach by Landlord
of its obligations hereunder. No individual partner, trustee, stockholder,
officer, director, employee, beneficiary, member or manager of Landlord shall be
personally liable under this Lease and Tenant shall look solely to Landlord's
interest in the Premises (including any rents and profits) therefrom arising
after enforcement is sought, or arising prior to enforcement (to the extent the
latter have not been distributed or used by Landlord) in pursuit of its remedies
upon an Event of Default under Section 6.1, and the assets of Landlord and its
partners, trustees, stockholders, officers, employees, beneficiaries, members or
managers shall not be subject to levy, execution or other enforcement procedure
for the satisfaction of the remedies of Tenant; provided that the foregoing
provisions of this sentence shall not constitute a waiver of any obligation
evidenced by this Lease and provided further that the foregoing provisions of
this sentence shall not limit the right of Tenant to name Landlord or any
partner or trustee thereof as party defendant in any action or suit in
connection with this Lease so long as no personal money judgment shall be asked
for or taken against any partner, trustee, stockholder, officer, employee
beneficiary, member or manager of Landlord.

      8.5. Acts of God. In any case where either party hereto is required to do
any act, then, except where specifically provided in this Lease to the contrary,
delays caused by or resulting

                                     - 29 -
<PAGE>

from acts of God, war, civil commotion, fire, flood or other casualty,
government regulations, moratoria, unusually severe weather, or other causes
beyond such party's reasonable control which are unrelated to labor difficulties
and shortages of labor, materials or equipment shall not be counted in
determining the time during which such act shall be completed, whether such time
be designated by a fixed date, a fixed time or a "reasonable time", and such
time shall be deemed to be extended by the period of such delay.

      8.6. Landlord's Default; Tenant's Right of Self-Help. Landlord shall not
be deemed to be in default in the performance of any of its obligations
hereunder unless it shall fail to perform such obligations and unless within
thirty (30) days after notice from Tenant to Landlord specifying such default
Landlord has not commenced diligently to correct the default so specified or has
not thereafter diligently pursued such correction to completion. Except only as
specifically otherwise provided in this Lease, Tenant shall have no right, for
any default by Landlord, to offset or counterclaim against any rent due
hereunder.

      If, by reason of any failure which is not due to any act or omission of
Tenant or any employee, agent, contractor, licensee, or invitee of Tenant,
Tenant's use and enjoyment of the Premises materially is impaired by reason of
Landlord's failure to comply with its obligations under this Lease, then Tenant
may give Landlord and all holders of mortgages on the Premises written notice
thereof, and if Landlord or any said holder (if such holder shall elect to do
so) shall fail to begin correction of such condition by a date which is ten (10)
days after Landlord's receipt of such notice, Tenant shall have the right, but
shall not be required, to perform such repair or restoration work as is
reasonably necessary to cure the condition. In the event of the proper exercise
of such right of self-help by Tenant in accordance with the provisions of this
paragraph, Landlord agrees to pay Tenant, within thirty (30) days of billing,
the reasonable costs incurred by Tenant in curing such condition or, in the
event Landlord fails to so reimburse Tenant within such thirty-day period,
Tenant shall have the right to offset said amounts against Tenant's Annual Fixed
Rent obligations next-coming due hereunder.

      Landlord shall pay on demand Tenant's expenses, including reasonable
attorneys' fees, incurred by Tenant in successfully enforcing any obligation of
Landlord under this Lease.

      8.7. Brokerage. Each of Tenant and Landlord warrants and represents to the
other that it has had no dealings with any broker or agent in connection with
this Lease other than the Broker(s) named in Article I and covenants to defend
with counsel approved by the other, hold harmless and indemnify the other from
and against any and all cost, expense or liability for any compensation,
commissions and charges claimed by any broker or agent other than the Broker(s)
named in Article I with respect to its dealings in connection with this Lease or
the negotiation thereof. The brokerage commission of Broker shall be paid by
Tenant pursuant to a separate agreement.

      8.8. Applicable Law and Construction. This Lease shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts. If
any term, covenant, condition or provision of this Lease or the application
thereof to any person or circumstances shall be declared invalid or
unenforceable by the final ruling of a court of competent jurisdiction having
final review, the remaining terms, covenants conditions and provisions of this
Lease and their application thereof to persons or circumstances shall not be
affected thereby and shall

                                     - 30 -
<PAGE>

continue to be enforced and recognized as valid agreements of the parties, and
in the place of such invalid or unenforceable provision, there shall be
substituted a like, but valid and enforceable, provision which comports to the
findings of the aforesaid court and most nearly accomplishes the original
intention of the parties. There are no prior oral or written agreements between
Landlord and Tenant affecting this Lease. This Lease may be amended, and the
provisions hereof may be waived or modified, only by instruments in writing
executed by Landlord and Tenant. The titles of the several Articles and Sections
contained herein are for convenience only and shall not be considered in
construing this Lease. Unless repugnant to the context, the words "Landlord" and
"Tenant" appearing in this Lease shall be construed to mean those named above
and their respective heirs, executors, administrators, successors and assigns,
and those holding title or claiming through or under them respectively. If there
be more than one tenant the obligations imposed by this Lease upon Tenant shall
be joint and several. Time is of the essence with respect to all terms and
conditions of this Agreement.

      8.9. Submission Not an Offer. The submission of a draft of this Lease or a
summary of some or all of its provisions does not constitute an offer to lease
or demise the Premises, it being understood and agreed that neither Landlord nor
Tenant shall be legally bound with respect to the leasing of the Premises unless
and until this Lease has been executed by both Landlord and Tenant and a fully
executed copy delivered.

      8.10. Security Deposit. Tenant shall deposit with Landlord a security
deposit equal to six (6) months of Annual Fixed Rent in the total amount of One
Million Six Hundred Four Thousand Sixty-Three and no/100 Dollars ($1,604,063.00)
in the form of an unconditional, irrevocable letter of credit without documents,
with Landlord as beneficiary, in whole or in part, and providing for payment in
Boston, Massachusetts ("SECURITY DEPOSIT"). The letter of credit shall be in
form and substance reasonably satisfactory to Landlord, shall be drawn on a
domestic commercial money center bank with a letter of credit paying office
located in Boston, Massachusetts reasonably satisfactory to Landlord and shall
be addressed to, and payable upon simple demand by, Landlord and Landlord's
mortgagee(s) as co-beneficiaries, which demand shall be accompanied by a
statement of an authorized officer or agent of Landlord stating that the drawing
represents amounts due to Landlord from Tenant under this Lease. The letter of
credit shall provide for multiple draws and multiple successors or
co-beneficiaries. The Security Deposit shall be held by Landlord as security for
the faithful performance by Tenant of all of the terms, covenants, and
conditions of this Lease applicable to Tenant. If, after notice and beyond the
expiration of any applicable grace period (or, if Landlord is prevented from
giving notice by the automatic stay of a Bankruptcy court or by any other legal
prohibition, without notice) Tenant fails to make the payment of rent or other
money due hereunder, timely perform or observe any obligation of Tenant under
this Lease, Landlord may (but shall not be required to) use, apply or retain all
or any part of the Security Deposit for the payment of any amount which Landlord
may spend by reason of Tenant's default, or for compensation to Landlord for any
loss or damage which Landlord may suffer or be entitled to by reason of Tenant's
failure to timely perform or observe any obligation of Tenant under this Lease.
If any portion of the Security Deposit is so used or applied, Tenant shall,
within ten (10) days after written demand therefor, deposit with Landlord a
supplemental letter of credit in an amount sufficient to restore the Security
Deposit to its original amount and otherwise in form and substance as required
for the original letter of credit. If Tenant fully and faithfully performs every
provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned (without

                                     - 31 -
<PAGE>

interest) to Tenant at Lease expiration or termination and after Tenant has
vacated the Premises. Failure of Tenant to deliver a replacement letter of
credit to Landlord at least ten (10) days prior to the expiration date of any
current letter of credit shall constitute a separate event entitling Landlord to
draw down immediately and entirely on the current letter of credit and the
proceeds shall constitute a cash Security Deposit. Landlord shall not be
required to keep the cash Security Deposit separate from Landlord's general
funds or be deemed to be a trustee of same. Tenant shall pay when due all fees,
charges and costs imposed by the issuing bank for the issuance, transfer or
amendment of the letter of credit and/or any supplemental letter of credit.
Notwithstanding anything to the contrary in this Section 8.10, on the Term
Commencement Date, Tenant shall have the right to deposit cash in the amount of
One Million Six Hundred Four Thousand Sixty-Three and no/100 Dollars
($1,604,063.00) as the Security Deposit hereunder in lieu of a letter of credit,
and shall, within thirty (30) days after the Term Commencement Date, deliver to
Landlord the letter of credit referenced above in this Section 8.10. Within two
(2) business days after Tenant delivers to Landlord an original letter of credit
in accordance with this Section 8.10, Landlord shall refund to Tenant the cash
security deposit by wire transfer of immediately available funds.

      8.11. Parties Responsible for Costs of Own Obligations. Except where
specifically provided herein to the contrary, each party shall bear all costs
and expenses of performing its obligations under this Lease.

      8.12. Limitation on Damages. In no event shall Tenant be liable for any
indirect, consequential or punitive damages arising from a breach of Tenant's
obligations under this Lease.

                                   ARTICLE IX

                    FIRST OPPORTUNITY; RIGHT OF FIRST REFUSAL

      9.1. Tenant's Right of First Opportunity to Purchase. Landlord will not
during the Term of this Lease (the "First Opportunity Period") sell the Premises
or any portion thereof to a third party without first complying with the
following (the "First Opportunity Rights"):

            (a) Landlord will not sell the Premises to a third party unless it
first gives Tenant written notice of its intention to sell or attempt to sell
the Premises and setting forth in detail terms and conditions upon which it
would be willing to sell (a "Sale Offer") the Premises to Tenant; and

            (b) Tenant will have thirty (30) days after receipt of a Sale Offer
(the "Offer Period") within which to accept any such Sale Offer. Failure of
Tenant to accept any such Sale Offer within such Offer Period shall constitute
and be deemed a rejection of such Sale Offer. If Tenant accepts such Sale Offer
within such Offer Period, each of Landlord and Tenant shall execute and deliver
to the other the Purchase Agreement in substantially the form attached hereto as
Exhibit E ("Purchase Agreement") within thirty (30) days after Tenant accepts
such Sale Offer. If Tenant does not accept such Sale Offer within the Offer
Period, or, if after accepting any such Sale Offer within the Offer Period,
Tenant fails to execute and deliver the Purchase Agreement within thirty (30)
days after Tenant accepts such Sale Offer, then Landlord shall be

                                     - 32 -
<PAGE>

free, for a period of one hundred eighty (180) days after the expiration of the
Offer Period, to sell the Premises (i) at a price which is not less than
ninety-five percent (95%) of the purchase price offered to Tenant in the Sale
Offer or (ii) on other terms and conditions materially more beneficial to buyer
than those offered to Tenant in the Sale Offer, without re-offering the Premises
to Tenant at such reduced price and/or better terms, as applicable, by written
notice (the "Reduced Offer"), whereupon Tenant shall have thirty (30) days to
accept the Reduced Offer. If Tenant shall fail within such thirty (30) day
period to accept the Reduced Offer or if Tenant shall accept the Reduced Offer
but shall fail to execute and deliver the Purchase Agreement within thirty (30)
days after accepting the Reduced Offer, Landlord shall again be free for a
period of one hundred eighty (180) days to sell the Premises to any other party
in the same manner as aforesaid. If Landlord shall fail to accept a bona fide
offer to sell the Premises in accordance with terms of Section this Section
9.1(b) within the time periods specified herein, then Tenant's right of first
opportunity to purchase set forth in Section 9.1(a) and this Section 9.1(b)
shall again become applicable.

      9.2. Tenant's Right of First Refusal. If, during the Term of this Lease,
Landlord shall receive an offer to purchase the Premises and Landlord desires to
accept such offer (the "Landlord's Offer"), Landlord shall give written notice
of the terms of Landlord's Offer and Landlord's desire to accept Landlord's
Offer to Tenant (the "Landlord's Offer Notice"). If Tenant desires to acquire
the Premises on the terms and conditions in Landlord's Offer Notice, Tenant
shall give Landlord notice thereof (the "Tenant's Acceptance Notice") within the
earlier to occur of (a) five (5) business days after the date on which Landlord
gives Tenant Landlord's Offer Notice, if Tenant shall have declined a Sale Offer
or Reduced Offer within the preceding twelve (12) month period or (b) thirty
(30) days after the date on which Landlord gives Tenant Landlord's Offer Notice
if Tenant shall not have declined a Sale Offer or Reduced Offer within the
preceding twelve (12) month period, and, in the event that Tenant delivers a
Tenant's Acceptance Notice, Landlord and Tenant shall promptly thereafter
execute and deliver the Purchase Agreement. If Tenant does not give Tenant's
Acceptance Notice to Landlord within such five (5) business day period or thirty
(30) day period, as applicable, Landlord shall be entitled to accept Landlord's
Offer and consummate the sale of the Premises free of Tenant's rights under this
Section 9.2.

                                    ARTICLE X

                          DEVELOPMENT OF EXPANSION LOT

      10.1. Tenant's Approval Right During Term. Tenant hereby acknowledges that
Landlord may desire to develop the Expansion Lot by constructing a building or
other improvements thereon ("Expansion Building"). In the event Landlord desires
to construct the Expansion Building, Landlord shall give notice to Tenant
describing its development plan in detail reasonably satisfactory to Tenant.
Tenant shall, within thirty (30) days after receipt of such notice and a
development plan in detail reasonably satisfactory to Tenant, either approve or
disapprove the proposed development in writing. Tenant's approval of the plans
for the Expansion Building shall not be unreasonably withheld or conditioned,
provided, that, Landlord acknowledges and agrees that it shall be reasonable for
Tenant to withhold its approval to any design for the Expansion Building (i) to
the extent such design is not for a first class office building, laboratory
building, medical research facility, health care research facility or a

                                     - 33 -
<PAGE>

combination of any of the foregoing comparable to the first class quality of the
Building and other buildings located in MetroNorth Corporate Center (120
Presidential Way, 150 Presidential Way, 10 Presidential Way and 235 Presidential
Way) or (ii) if it is not in compliance with all applicable laws and
regulations. Any special permit obtained by Landlord with respect to the
Expansion Building shall be deemed to be in compliance with all applicable laws
and regulations, provided, that, Landlord acknowledges and agrees that Tenant
shall have the right to disapprove any proposed use or design of the Expansion
Building that is noxious or that would have a material adverse effect on
Tenant's use and occupancy of the Premises.

      10.2. Activities on Expansion Lot. In connection with any activities of
Landlord on or affecting the Expansion Lot, Landlord hereby covenants and agrees
to (i) abide by, and cause its contractors and agents to abide by, the building
rules and regulations regarding construction activities at the Building,
exclusive of any rules and regulations which conflict with the terms of this
Lease or which have not been provided as of the date hereof to Tenant, (ii) not
damage the Building or any portion of the Primary Lot and (iii) not unreasonably
disturb the use, occupancy or enjoyment by Tenant or its successors and assigns
of any portion of the Building or the Primary Lot.

      10.3. Construction Activities of Landlord on Expansion Lot. Landlord
understands and acknowledges that Tenant operates a manufacturing facility at
the Premises that may be adversely affected by noise or vibrations caused by
construction activities on the Primary Lot or the Expansion Lot. In connection
with performing any construction activities on the Primary Lot or the Expansion
Lot, Landlord will use its best efforts to avoid adversely affecting Tenant's
manufacturing facility. Landlord shall provide Tenant with not less than
seventy-two (72) hours' advance notice of any construction activities on the
Primary Lot or Expansion Lot that could potentially have an adverse effect on
Tenant's manufacturing facility or other operations. If Tenant thereafter
notifies Landlord that such proposed construction activities will likely have an
adverse effect on Tenant's manufacturing or other operations, Landlord shall use
its best efforts to employ any and all available alternatives to the extent
necessary to avoid adversely affecting Tenant's manufacturing and other
operations (such as performing the work during other than Tenant's business
hours; employing alternative construction methods, etc.).

      10.4. Expansion Right. Subject to the terms of this Section 10.4, except
during the final eighteen (18) months of the Term of this Lease, Tenant shall
have the following rights to lease space in the Expansion Building (the
"Expansion Space").

            (a) Tenant's Preconstruction Expansion Option. Before construction
of the Expansion Building is commenced and before Landlord shall enter into any
binding arrangement with any third party to lease all or part of the Expansion
Building, Landlord shall provide Tenant a notice (the "Preconstruction Expansion
Notice") setting forth the terms and conditions under which Landlord would be
willing to lease space to Tenant ("Tenant's Preconstruction Expansion Option").
Within thirty (30) days after Landlord's notice, Tenant shall inform Landlord
whether it elects to lease space in the Expansion Building according to the
terms set forth in the Preconstruction Expansion Notice. If Tenant does not so
inform Landlord within such thirty (30) day period, Tenant shall be deemed to
have elected not to lease such space in the Expansion Building. If Tenant so
elects, Landlord shall offer the space to Tenant on the terms described in the
Preconstruction Expansion Notice, except that Tenant shall have the right to
specify that the

                                     - 34 -
<PAGE>

term of its lease for the space in the Expansion Building shall be coterminous
with the Term for its space in the Building (including any Extension Term),
provided, that, the term of its lease for space in the Expansion Building shall
in no event be less than five (5) years. If Tenant does not so elect, or is
deemed not to have so elected, Landlord shall be free to enter into a lease with
any other party for a rent with an effective value not less than 95% of the
effective value of the rent in the Preconstruction Expansion Notice, which
amount shall be determined based on the rental rate, rent escalations, tenant
incentives and other concessions; provided, however, Landlord shall not be free
to enter into a lease with any other party for rent with an effective value less
than 95% of the effective value of the rent in the Preconstruction Expansion
Notice without providing Tenant another Preconstruction Expansion Notice as
provided above. The provisions of this Section 10.4(a) shall apply to all lease
arrangements that Landlord enters into with respect to the Expansion Building
prior to commencement of construction thereof. In the event Landlord does not
commence construction of the Expansion Building within two (2) years of the date
Tenant does not elect, or is deemed not to have elected, to lease space in the
Expansion Building according to the terms set forth in the Preconstruction
Expansion Notice, and Landlord continues to desire to construct the Expansion
Building, Landlord shall, except during the final eighteen (18) months of the
Term of this Lease (as the same may have been extended), provide to Tenant
another Preconstruction Expansion Notice as provided above, which notice shall
be subject to the rights of third parties who have previously agreed to lease
space in the Expansion Building.

            (b) Tenant's Offer. Within thirty (30) days after the date of
commencement of construction of the Expansion Building, Landlord shall grant to
Tenant a right of first offer ("Offer Right") to lease all or part of the
Expansion Building (the "Offer Notice"). The Offer Notice shall include (i) the
size and location of any and all available space in the Expansion Building
("Expansion Space"), (ii) Landlord's reasonable good faith determination of
Landlord's anticipated rental rate and tenant incentives and other terms and
conditions for the Expansion Space, (iii) the date that the Expansion Space will
be available to Tenant, (iv) the length of the term for which such Expansion
Space can be leased to Tenant and (v) such other terms as Landlord shall elect.
Tenant may, within ten (10) days after its receipt of the Offer Notice, elect to
exercise its right to lease the Expansion Space covered by such Offer Notice on
Landlord's proposed rental terms. If Tenant fails to exercise its right within
such ten (10) day period after Tenant's receipt of the Offer Notice, Tenant
shall be deemed to have waived its right under this Section 10.4(b) as to such
Expansion Space (but not as to any other space in the Expansion Building) for a
period of twelve (12) calendar months after the date on which Landlord gives the
Offer Notice; provided, however, that if Tenant does not exercise its right
under this Section 10.4(b), Landlord may not lease such Expansion Space for less
than 95% of the effective value of the rent in the Offer Notice, which amount
shall be determined based on the rental rate, rent escalations, tenant
incentives, rent abatements and other concessions, without first providing
Tenant another Offer Notice as provided above. Notwithstanding the foregoing, if
Tenant fails to exercise its right under this Section 10.4(b) and Landlord fails
to lease such Expansion Space on terms as described in the preceding sentence,
within twelve (12) calendar months after the date on which Landlord gives the
Offer Notice, or if Landlord leases such Expansion Space and such Expansion
Space thereafter again becomes available for lease, then Tenant's rights under
this Section 10.4(b) shall be reinstated as to such Expansion Space and Landlord
shall provide Tenant with another Offer Notice as provided above. Tenant's
rights under this Section 10.4(b) shall be subject to the rights of other
tenants leasing space in the Building or the Expansion Building at the time
Tenant exercises its Offer Right.

                                     - 35 -
<PAGE>

            (c) Except for work and allowances constituting tenant incentives as
shown in the Preconstruction Expansion Notice or the Offer Notice, or unless
Landlord expressly agrees in writing to the contrary, the Expansion Space leased
by Tenant shall be leased in its "then-existing" condition and shall be provided
to Tenant broom clean (it being expressly understood by Tenant that Landlord
shall not be required to complete any work or provide any tenant improvement
allowance with respect to the Expansion Space).

            (d) If Tenant exercised its rights under this Section 10.4 by
electing to lease the space in the Expansion Building (including Expansion
Space), Landlord and Tenant shall execute a written lease (the "Expansion
Building Lease") confirming the terms, provisions and conditions applicable to
the space leased by Tenant.

The foregoing provisions of this Article X are intended to benefit Tenant and
its successors and assigns and to run with Tenant's leasehold and/or fee
interest (as the case may be) in the Building and the Primary Lot and shall be
memorialized in a recordable instrument and recorded in the land records as a
covenant burdening the Expansion Lot.

                                   ARTICLE XI

                    LANDLORD'S REPRESENTATIONS AND WARRANTIES

      11.1. Representations and Warranties of Landlord. To induce Tenant to
execute this Lease and perform its obligations hereunder, Landlord hereby
represents and warrants to Tenant as of the date hereof as follows:

            (a) Landlord is a limited liability company, duly organized and
validly existing under the laws of the State of Delaware. Landlord has all
requisite power to own, lease and operate its assets, and to carry on its
business as now conducted. Landlord has full power to execute, deliver and carry
out the terms and provisions of this Lease and all documents required on its
part to be executed and has taken all necessary company action to authorize the
execution, delivery and performance of this Lease and all other agreements and
instruments executed in connection herewith and the performance of those
provisions of this Lease required on its part to be carried out. The persons
executing this Lease (and all other agreements and instruments entered into by
Landlord in furtherance hereof), on behalf of Landlord, have the authority to
bind Landlord to the terms and conditions of this Lease (and all said agreements
and instruments). Neither the execution and delivery of this Lease and said
agreements and instruments to be executed by Landlord in connection herewith,
nor the incurrence by Landlord of the obligations herein set forth, nor the
consummation by Landlord of the transactions herein contemplated, nor compliance
by Landlord with the terms of this Lease and said agreements and instruments
will conflict with or result in a breach of any of the terms, conditions or
provisions of, or constitute a default under, the limited liability company
agreement of Landlord, or to the knowledge of Landlord, any bond, note or other
evidence of indebtedness, contract, indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument, to which Landlord is a party
or by which any of its properties may be bound. This Lease constitutes, and all
agreements and documents required to be executed by Landlord hereunder when so
executed and delivered shall constitute, the legal, valid and binding
obligations of Landlord enforceable against Landlord in accordance with their
respective terms. Any order, permission, consent, approval, license,

                                     - 36 -
<PAGE>

authorization, registration or filing with, or exemption by, any governmental
agency which is required for the execution or delivery of this Lease, or said
agreements and instruments by Landlord has been obtained or made.

            (b) Landlord is not in default or violation of any order, writ
injunction, decree or demand of any governmental authority.

            (c) Landlord (i) is not in receivership or dissolution, (ii) has not
made an assignment for the benefit of creditors or admitted in writing its
inability to pay its debts as they mature, (iii) has not been adjudicated a
bankrupt or filed a petition in voluntary bankruptcy or a petition or answer
seeking reorganization or an arrangement with creditors under the Federal
bankruptcy law or any other similar law or statute of the United States or any
jurisdiction and no such petition has been filed against Landlord, and (iv) to
the best of its knowledge, none of the foregoing are pending or threatened.

            (d) Landlord has not granted or conveyed to anyone other than
Tenant, any right or option to acquire the Property or any party thereof or any
easement, license or lease except for matters of record of the Property or other
right relating to the use or possession of the Property.

                                     - 37 -
<PAGE>

      WITNESS the execution hereof under seal as of the day and year first above
written.

                                TENANT:

                                19 Presidential Way
                                Woburn, MA 01801

                                By:    /s/ Louise A. Mawhinney
                                Name:  Louise A. Mawhinney
                                Title: Vice President, Chief Financial Officer,
                                       Treasurer and Secretary

                                LANDLORD:

                                ARE-MA REGION NO. 20, LLC, a Delaware limited
                                liability company

                                By:    Alexandria Real Estate Equities,
                                       L.P., a Delaware limited partnership

                                       By: ARE-QRS Corp., a Maryland corporation

                                By:    /s/ Jennifer Pappas
                                       _________________________________________

                                Name:  Jennifer Pappas
                                       _________________________________________

                                Its:   Vice President & Assistant Secretary
                                       _________________________________________

                                     - 38 -
<PAGE>

                                    EXHIBIT A

                           DESCRIPTION OF PRIMARY LOT

Lot 11:

A parcel of land on Presidential Way, Woburn, Middlesex County, Massachusetts,
shown as Lot 11 on Land Court Plan 36099-D, a copy of which is filed with the
Middlesex South Registry District of the Land Court with Certificate of Title
No. 212009.

                                      - 1 -
<PAGE>

                                    EXHIBIT B

                          DESCRIPTION OF EXPANSION LOT

Lot 12:

A parcel of land on Presidential Way, Woburn, Middlesex County, Massachusetts,
shown as Lot 12 on Land Court Plan 36099-D, a copy of which is filed with the
Middlesex South Registry District of the Land Court with Certificate of Title
No. 212009.

Parcel 5B-1

A parcel of land situated near Presidential Way, Woburn, Middlesex County,
Massachusetts, shown as Parcel 5B-1 on a plan entitled, "Subdivision Plan of
Land in Woburn, Massachusetts," dated January 16, 2001, prepared by Vanasse
Hangen Brustlin, Inc., recorded Middlesex South Registry of Deeds in Plan Book
32475, Page 319.

                                      - 1 -
<PAGE>

                                    EXHIBIT C

                  FIXTURES, FURNISHINGS AND EQUIPMENT OF TENANT
                           TO BE REMOVED FROM PREMISES

-  NMRs, LCMSs, and all other Analytical and Research laboratory equipment,
   whether fastened to the building or not*

-  ArQule AMAP and ssAMAP customized production and research-based equipment,
   whether fastened to the building or not*

-  Autoclaves, biosafety cabinets, incubators, stability chambers, and all other
   biology-related equipment, whether fastened to the building or not*

-  Machine shop equipment, whether fastened to the building or not

-  External N2 storage tank, which is leased from supplier

-  Custom solvent delivery and collection system

-  Fitness Center equipment

-  Equipment located in Server Room and Network closets

-  Built-in A/V equipment, including videoconferencing, teleconferencing, and
   telecommunications equipment

-  Radio/microwave tower on roof, leased from supplier

-  All equipment added after the signing of the lease, whether fastened to the
   building or not*

* Exemptions do not include fume hoods, casework, and lab benches

                                        1
<PAGE>

                                    EXHIBIT D

                                 NOTICE OF LEASE

      This notice of lease has been executed and delivered in accordance with
the Massachusetts General Laws to give notice of the lease described below, but
is not intended to modify or amend any of the terms of said lease, and in the
event of any inconsistency between the terms of this notice of lease and the
terms of the lease described below, the lease described below shall govern.

      Landlord:          ARE-MA Region No. 20, LLC, a Delaware limited liability
                         company having an office at c/o Alexandria Real Estate
                         Equities, Inc., 135 N. Los Robles Avenue, Suite 250,
                         Pasadena, CA 01101

      Tenant:            ArQule, Inc., a Delaware corporation having an office
                         at 19 Presidential Way, Woburn, MA 01801

      Date of Lease:     May __, 2005

      Term of Lease:     10-year period commencing on the Term Commencement
                         Date, together with two options to extend for 5-years
                         each as provided in and on the terms set forth in
                         Section 2.2 of the Lease.

      Term
      Commencement
      Date:              ___________________

      Premises:          The leased premises consist of the following:

                         A parcel of land on Presidential Way, Woburn, Middlesex
                         County, Massachusetts, shown as Lot 11 on Land Court
                         Plan 36099-D, a copy of which is filed with the
                         Middlesex South Registry District of the Land Court
                         with Certificate of Title No. 212009.

      Expansion Lot:     The Expansion Lot consists of the following:

                         Lot 12:

                         A parcel of land on Presidential Way, Woburn, Middlesex
                         County, Massachusetts, shown as Lot 12 on Land Court
                         Plan 36099-D, a copy of which is filed with the
                         Middlesex South Registry District of the Land Court
                         with Certificate of Title No. 212009.

                                        1
<PAGE>

                         Parcel 5B-1

                         A parcel of land situated near Presidential Way,
                         Woburn, Middlesex County, Massachusetts, shown as
                         Parcel 5B-1 on a plan entitled, "Subdivision Plan of
                         Land in Woburn, Massachusetts," dated January 16, 2001,
                         prepared by Vanasse Hangen Brustlin, Inc., recorded
                         Middlesex South Registry of Deeds in Plan Book 32475,
                         Page 319.

      Other:             The Lease contains, as to the Premises and/or the
                         Expansion Lot (i) certain rights of first offer for the
                         Tenant; (ii) certain rights of first refusal for the
                         Tenant; (iii) certain expansion rights for the Tenant;
                         and (iv) certain approval rights of the Tenant with
                         respect to future development on the Expansion Lot by
                         the Landlord.

      WITNESS the execution hereof under seal as of this 2nd day of May, 2005.

                                 LANDLORD:

                                 ARE-MA REGION NO. 20, LLC,
                                 a Delaware limited liability company

                                 By: ALEXANDRIA REAL ESTATE EQUITIES, L.P., a
                                 Delaware limited partnership,
                                 Managing Member

                                 By: ARE-QRS CORP., a Maryland
                                 corporation, General Partner

                                 Name:
                                 Title:

                                 TENANT:

                                 ARQULE, INC.

                                 By:    /s/ Louise A. Mawhinney
                                 Name:  Louise A. Mawhinney
                                 Title: Vice President, Chief Financial Officer,
                                        Treasurer and Secretary

                                        2
<PAGE>

COMMONWEALTH OF MASSACHUSETTS

      On this _____ day of May, 2005, before me, the undersigned notary public,
personally appeared _________________________________, proved to me through
satisfactory evidence of identification, which was personal knowledge of
identity to be the person whose name is signed on the preceding or attached
document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as _________________________ of ArQule, Inc.

                                 _______________________________________________
                                 Notary Public
                                 My Commission Expires:_________________________

COMMONWEALTH OF MASSACHUSETTS

      On this _____ day of May, 2005, before me, the undersigned notary public,
personally appeared _________________________________, proved to me through
satisfactory evidence of identification, which was personal knowledge of
identity to be the person whose name is signed on the preceding or attached
document, and acknowledged to me that he/she signed it voluntarily for its
stated purpose as _________________________ of ARE-QRS Corp.

                                 _______________________________________________
                                 Notary Public
                                 My Commission Expires:_________________________

                                        3
<PAGE>

                                    EXHIBIT E

                           FORM OF PURCHASE AGREEMENT

                         AGREEMENT OF PURCHASE AND SALE

       (REPURCHASE OF PROPERTY BY ARQULE, INC. PURSUANT TO SELLER'S LEASE)

      THIS AGREEMENT OF PURCHASE AND SALE ("Agreement") is made as of
___________________ ("Contract Date"), between (i) ARE-MA Region No. 20, LLC, a
Delaware limited liability company ("Seller"), and (ii) ArQule, Inc., a Delaware
corporation ("Purchaser").

                            ARTICLE 1. INTERPRETATION

      1.1 DEFINITIONS. For purposes of this Agreement, the following capitalized
terms shall have the meanings indicated:

            1.1.1 ACTION: any action, suit, arbitration, governmental
investigation or other legal proceeding.

            1.1.2 CLOSING: the consummation of the purchase and sale of the
Property as contemplated by this Agreement.

            1.1.3 CLOSING DATE: the date on which the Closing occurs.

            1.1.4 CODE: the Internal Revenue Code of 1986, as amended.

            1.1.5 CONTRACT DATE: as defined in the Preamble.

            1.1.6 CONTRACT: any contract for services, maintenance and supplies,
or equipment leases to which Seller is a party and which is necessary for the
use, maintenance, operation, or equipping of the Property, and all amendments
thereto.

            1.1.7 DAMAGES: damages (other than indirect, special or
consequential damages), liabilities, losses, claims, costs and expenses
(including reasonable attorneys' fees and expenses).

            1.1.8 DEPOSIT: as defined in Section 2.2.

            1.1.9 ENVIRONMENTAL LAWS: all Legal Requirements in effect as of the
Contract Date relating to the protection of the environment or to human health,
or regulating the manufacture, use or disposal of Hazardous Substances.

            1.1.10 EXISTING SURVEY: as defined in Section 5.2.2.

            1.1.11 HAZARDOUS SUBSTANCE: any pollutant, contaminant or any toxic,
radioactive or otherwise hazardous substance, including petroleum, its
derivatives,
                                        1
<PAGE>

by-products and other hydrocarbons, asbestos, and toxic mold, in each case as
regulated under Environmental Laws.

            1.1.12 IMPROVEMENTS: the building located on the Land, having an
address of 19 Presidential Way, Woburn, Massachusetts and a tax lot designation
of 195 Presidential Way, Woburn, Massachusetts, including all heating,
ventilation and air conditioning systems serving such buildings, and all
laboratory casework and fume hoods located therein.

            1.1.13 INTANGIBLE PROPERTY: collectively, (i) all assignable
guarantees and warranties that relate to the Improvements, (ii) all assignable
permits, certificates of occupancy, and other public approvals that relate to
the Land or the Improvements and (iii) all plans and specifications for the
Improvements.

            1.1.14 LAND: collectively, the parcels of land more fully described
on Exhibit C (excluding the Expansion Lot, as such term is defined in Seller's
Lease) together with all right, title and interest of the Seller in and to (i)
all rights, ways, easements, privileges and appurtenances to such parcel, (ii)
all strips and gores appurtenant to such parcel, and (iii) any land lying in the
bed of any streets, roads and alleys appurtenant to such parcel.

            1.1.15 LEGAL REQUIREMENT: any federal, state, local or municipal
constitution, law, statute, ordinance, rule, order or regulation.

            1.1.16 OBJECTIONS: as defined in Section 5.2.3.

            1.1.17 PERMITTED EXCEPTIONS: collectively, (i) the matters approved
or deemed approved by Purchaser in accordance with Section 5.2 and set forth on
Schedule 5.2 hereof, and (ii) the lien for real estate taxes and other
assessments not yet due and payable.

            1.1.18 PERSON: a natural person or any legal or governmental entity.

            1.1.19 PROPERTY: collectively, (i) the Land and the Improvements and
Seller's fee simple interest therein, and (ii) the Intangible Property and all
right title and interest of Seller therein and thereto.

            1.1.20 PURCHASE PRICE: as defined in Section 2.2.

            1.1.21 PURCHASER: as defined in the Preamble.

            1.1.22 PURCHASER INDEMNIFIED PARTIES: as defined in Section 7.5.1.

            1.1.23 PURCHASER'S DESIGNEE: as defined in Section 11.1.

            1.1.24 SERVICE CONTRACT: any contract for services, maintenance and
supplies, equipment leases, and any other contract or agreement to which Seller
is a party

                                        2
<PAGE>

relating to the use, maintenance, operation, provisioning or equipping of the
Property, and all amendments thereto.

            1.1.25 SELLER: as defined in the Preamble.

            1.1.26 SELLER'S KNOWLEDGE: the actual current knowledge of
__________________, without any obligation to review any files or make inquiry
of any Person. No knowledge of any other Person shall be imputed to Seller.

            1.1.27 SELLER'S LEASE: that certain lease dated ___________, 2005 by
and between Seller, as landlord and Purchaser, as tenant and all other leases
then encumbering the Land.

            1.1.28 SETTLEMENT STATEMENT: a HUD-1 or similar settlement statement
executed by Purchaser and Seller at closing.

            1.1.29 SURVEY STANDARDS: as defined in Section 5.2.2.

            1.1.30 TITLE POLICY: as defined in Section 5.2.1.

            1.1.31 TITLE COMPANY: Chicago Title Insurance Company, which is also
serving as escrow agent hereunder.

      1.2 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts (without reference
to conflicts of laws principles).

      1.3 CAPTIONS, NUMBERING AND HEADINGS. Captions, numbering and headings of
Articles, Sections, Schedules and Exhibits in this Agreement are for convenience
of reference only and shall not be considered in the interpretation of this
Agreement. References in this Agreement to Articles, Sections, Schedules and
Exhibits shall be deemed to be references to such Articles, Sections, Schedules
and Exhibits in this Agreement unless otherwise expressly specified.

      1.4 NUMBER; GENDER. Whenever required by the context, the singular shall
include the plural, the neuter gender shall include the male gender and female
gender, and vice versa.

      1.5 BUSINESS DAY. In the event that the date for performance of any
obligation under this Agreement falls on other than a business day, then such
obligation shall be performed on the next succeeding business day.

      1.6 SEVERABILITY. In the event that one or more of the provisions of this
Agreement shall be held to be illegal, invalid or unenforceable, each such
provision shall be deemed severable and the remaining provisions of this
Agreement shall continue in full force and effect, unless this construction
would operate as an undue hardship on Seller or Purchaser or would constitute a
substantial deviation from the general intent of the parties as reflected in
this Agreement.

                                        3
<PAGE>

      1.7 NO ORAL MODIFICATIONS OR WAIVERS. No modification of this Agreement
shall be valid or effective unless the same is in writing and signed by Seller
and Purchaser. No purported waiver of any of the provisions of this Agreement
shall be valid or effective unless the same is in writing and signed by the
party against whom it is sought to be enforced. Notwithstanding the foregoing,
the parties agree that the time for performance of any matter to be performed
pursuant to this Agreement may be modified by electronic mail sent by the party
against whom it is sought to be enforced or such party's counsel.

      1.8 EXHIBITS. All Schedules and Exhibits referenced in this Agreement are
incorporated by this reference as if fully set forth in this Agreement, and all
references to this Agreement shall be deemed to include all such Schedules and
Exhibits.

      1.9 INTEGRATION. This Agreement, all Schedules and Exhibits appended to
this Agreement, and the documents and agreements referenced in this Agreement
contain the entire understanding between Seller and Purchaser with respect to
the sale of the Property, and are intended to be a full integration of all prior
or contemporaneous agreements, conditions, understandings or undertakings
between Seller and Purchaser with respect thereto. There are no promises,
agreements, conditions, undertakings, understandings, warranties or
representations, whether oral, written, express or implied, between Seller and
Purchaser with respect to the sale of the Property other than as are expressly
set forth in this Agreement, the Schedules and Exhibits appended to this
Agreement, and the documents and agreements referenced in this Agreement.

      1.10 NO CONSTRUCTION AGAINST DRAFTER. This Agreement has been negotiated
and prepared by Seller and Purchaser and their respective attorneys and, should
any provision of this Agreement require judicial interpretation, the court
interpreting or construing such provision shall not apply the rule of
construction that a document is to be construed more strictly against one party.

      1.11 INCLUDING. The term "including," and variants thereof, shall mean
"including without limitation."

                           ARTICLE 2. SALE OF PROPERTY

      2.1 SALE AND PURCHASE. Subject to and in accordance with the terms of this
Agreement, Seller shall sell to Purchaser, and Purchaser shall purchase from
Seller, the Property.

      2.2 PURCHASE PRICE.

            2.2.1 The purchase price ("Purchase Price") for the sale and
purchase of the Property shall be $________________________.

            2.2.2 The Purchase Price shall be payable as follows:

                  2.2.2.1 Within one (1) business day following the Contract
Date, Purchaser shall deposit into escrow with the Title Company the sum of Two
Hundred

                                        4
<PAGE>

Fifty Thousand Dollars ($250,000) ("Deposit") by wire transfer of immediately
available funds.

                  2.2.2.2 The Deposit shall be held in accordance with Section
8.1. At Closing, the Deposit shall be paid to or at the direction of Seller and
credited against the Purchase Price.

                  2.2.2.3 At Closing, Purchaser shall pay the balance of the
Purchase Price (net of the Deposit) to or at the direction of Seller by wire
transfer of immediately available funds, and Seller and Purchaser shall cause
the Title Company to release the Deposit to Seller.

      2.3 [Reserved]

      2.4 CONDITION OF PROPERTY.

            2.4.1 Purchaser acknowledges that (i) Purchaser has been given a
reasonable opportunity to inspect and investigate the Property, all improvements
thereon and all aspects relating thereto, including all of the physical,
environmental and operational aspects of the Property, either independently or
through agents and experts of Purchaser's choosing, and (ii) Purchaser will
acquire the Property based solely upon Purchaser's own investigation and
inspection thereof and the representations, warranties and covenants of Seller
expressly set forth in this Agreement. SELLER AND PURCHASER AGREE THAT, EXCEPT
AS EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, (I) THE PROPERTY SHALL BE SOLD AND
PURCHASER SHALL ACCEPT POSSESSION OF THE PROPERTY ON THE CLOSING DATE "AS IS,"
"WHERE IS," AND "WITH ALL FAULTS," AND (II) SUCH SALE SHALL BE WITHOUT
REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, INCLUDING ANY WARRANTY OF INCOME POTENTIAL, OPERATING EXPENSES, USES,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER HEREBY DISCLAIMS
AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY. PURCHASER FURTHER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT,
SELLER SHALL BE UNDER NO DUTY TO MAKE ANY AFFIRMATIVE DISCLOSURE REGARDING ANY
MATTER WHICH MAY BE KNOWN TO SELLER, OR ITS OFFICERS, DIRECTORS, CONTRACTORS,
AGENTS OR EMPLOYEES, AND THAT IT IS RELYING SOLELY UPON ITS OWN INSPECTION OF
THE PROPERTY AND NOT UPON ANY REPRESENTATIONS MADE TO IT BY ANY PERSON
WHOMSOEVER ON SELLER'S BEHALF.

            2.4.2 Except with respect to any Damages arising out of any breach
of any express representation, warranty or covenant set forth in this Agreement,
Purchaser hereby waives, releases and forever discharges Seller, and its
officers, directors and employees, from any and all Damages, whether known or
unknown, which Purchaser has or may have in the future, arising out of or in
connection with the Property, including the physical, environmental,
governmental, economic or legal condition of the Property. For the foregoing
purposes, Purchaser hereby specifically waives the provisions of any law the
import of which is that a general release does not extend to claims which the
creditor does not know or suspect to exist in the creditor's favor at the time
of executing the

                                        5
<PAGE>

release, which if known by the creditor must have materially affected a
settlement with the debtor.

            2.4.3 The provisions of this Section 2.4 shall be applicable to (and
each reference herein to "Purchaser" shall be deemed to be an explicit reference
to) Purchaser, each Purchaser's Designee, and each of their respective
successors, heirs and assignees. The provisions of this Section 2.4 shall
survive the Closing without limitation as to time.

      2.5 SELLER'S LEASE. On the Closing Date, Seller shall assign Seller's
Lease to Purchaser.

               ARTICLE 3. SELLER'S REPRESENTATIONS AND WARRANTIES

      Seller hereby represents and warrants to Purchaser as follows:

      3.1 GOOD STANDING. Seller is a limited liability company, duly formed,
validly existing and in good standing under the laws of the State of Delaware,
and qualified to transact business and in good standing under the laws of the
Commonwealth of Massachusetts. Seller has full power and authority to execute
this Agreement and to consummate the transactions contemplated by this
Agreement.

      3.2 DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement by Seller and the consummation by Seller of the transactions
contemplated by this Agreement have been duly and validly authorized by all
requisite actions of Seller. Assuming the due execution and delivery of this
Agreement by Purchaser, this Agreement constitutes the valid and binding
obligation of Seller, enforceable against Seller in accordance with its terms.

      3.3 NO VIOLATIONS. The execution, delivery and performance of this
Agreement by Seller and the consummation by Seller of the transactions
contemplated by this Agreement will not: (i) violate any Legal Requirement or
any order of any court or governmental authority that is binding on Seller or
the Property; or (ii) result in a breach of or default under any contract or
other agreement to which Seller is a party or by which the Property is bound
(including any rights of first offer or first refusal) or any provision of the
organizational documents of Seller.

      3.4 BANKRUPTCY. Seller is not the subject debtor under any federal, state
or local bankruptcy or insolvency proceeding, or any other proceeding for
dissolution, liquidation or winding up of its assets.

      3.5 LITIGATION. There are no Actions pending or, to Seller's knowledge,
threatened before any court or governmental authority (i) relating to the
ownership, operation, development, use or occupancy of the Property or (ii)
against Seller, which if adversely determined would affect Seller's ability to
enter into or perform its obligations under this Agreement.

      3.6 LEASES. Except for the Seller's Lease, there are no leases, subleases
or occupancy agreements affecting the Property. Seller has not granted to any
third party

                                        6
<PAGE>

any rights to purchase the Property or any rights of first refusal with respect
to the sale or lease of the Property.

      3.7 SERVICE CONTRACTS. There are no Service Contracts that would be
binding on Purchaser following the Closing.

      3.8 VIOLATIONS OF LAW. Seller has received no written notice from any
governmental authority alleging a violation of any Legal Requirement affecting
the Property that has not been corrected.

      3.9 CONDEMNATION. There are no pending condemnation actions with respect
to the Property, and to Seller's Knowledge there are no threatened or
contemplated condemnation actions with respect to the Property. Seller shall
have the right to update the representation set forth in this Section 3.9 to
reflect (i) any condemnation that becomes pending after the Contract Date, or
(ii) any threatened or contemplated condemnation that first becomes known to
Seller after the Contract Date, in which event the provisions of Article 9 shall
control.

      3.10 ENVIRONMENTAL MATTERS. Seller has received no written notice from any
governmental authority of any actual or potential violation of or failure to
comply with any Environmental Laws with respect to the Property which remains
uncorrected, or of any actual or threatened obligation to undertake or bear the
cost of any clean-up, removal, containment, or other remediation under any
Environmental Law with respect to the Property which remains unperformed. To
Seller's Knowledge, other than (i) Hazardous Substances used in the ordinary
course of maintaining and cleaning the Property, (ii) Hazardous Substances used
in connection with the research, development, manufacturing and other operations
of Seller and (iii) Hazardous Substances used as fuels, lubricants or otherwise
in connection with vehicles, machinery and equipment located at the Property in
commercially reasonable amounts, no Hazardous Substances are present on or in
the Property.

      3.11 FOREIGN PERSON. Seller is not a "foreign person" as defined in
Section 1445 of the Code.

      ARTICLE 4. PURCHASER'S REPRESENTATIONS AND WARRANTIES

      Purchaser hereby represents and warrants to Seller as follows:

      4.1 GOOD STANDING. Purchaser is a corporation, validly existing and in
good standing under the laws of Delaware, and has full power and authority to
conduct the business in which it is now engaged.

      4.2 DUE AUTHORIZATION. This Agreement constitutes the valid and binding
obligation of Purchaser, enforceable against Purchaser in accordance with its
terms.

      4.3 NO VIOLATIONS. The execution, delivery and performance of this
Agreement by Purchaser and the consummation by Purchaser of the transactions
contemplated by this Agreement will not: (i) violate any Legal Requirement or
any order of any court or

                                        7
<PAGE>

governmental authority that is binding on Purchaser; or (ii) result in a breach
of or default under (A) any contract or other agreement to which Purchaser is a
party or (B) any provision of the organizational documents of Purchaser.

      4.4 BANKRUPTCY. Purchaser is not the subject debtor under any federal,
state or local bankruptcy or insolvency proceeding, or any other proceeding for
dissolution, liquidation or winding up of its assets.

      4.5 LITIGATION. There are no Actions pending or, to Purchaser's knowledge,
threatened against Purchaser before any court or governmental authority, an
adverse determination of which would materially adversely affect (i) the
financial condition of Purchaser, or (ii) Purchaser's ability to enter into or
perform this Agreement.

      4.6 TERRORIST ORGANIZATIONS LISTS. Purchaser is not acting, directly or
indirectly, for or on behalf of any Person named by the United States Treasury
Department as a Specifically Designated National and Blocked Person, or for or
on behalf of any Person designated in Executive Order 13224 as a Person who
commits, threatens to commit, or supports terrorism. Purchaser is not engaged in
the transaction contemplated by this Agreement directly or indirectly on behalf
of, or facilitating such transaction directly or indirectly on behalf of, any
such Person.

                       ARTICLE 5. ACTIONS PENDING CLOSING

      5.1 PHYSICAL CONDITION. Seller shall make available to Purchaser for
inspection and copying at the Property or at Seller's offices, or at Seller's
option deliver to Purchaser, such documents, materials and information
concerning the physical condition of the Property, the structural integrity of
the Property, title matters and compliance of the Property with Legal
Requirements as are in Seller's possession. Notwithstanding the foregoing,
Seller shall have no obligation to deliver to Purchaser (i) materials that
Seller shall have obtained or developed in connection with the potential sale of
the Property, (ii) materials that relate primarily to Seller's financial
affairs, business or research and development operations as distinguished from
the operation of the Property and (iii) materials that are subject to
attorney-client privilege or reveal trade secrets.

      5.2 TITLE AND SURVEY.

            5.2.1 Purchaser has been provided with the title insurance policy
issued to Seller on ___________, 2005 ("Title Policy"), accompanied by a copy of
all documents referred to as exceptions in the Title Policy.

            5.2.2 Purchaser has been provided with a survey of the Property
dated ___________________, ___________ ("Survey"). Promptly following the
Contract Date, Purchaser shall order either an update of the Survey or, if
required by Purchaser, a new survey of the Property ("New Survey") prepared in
accordance with the Minimum Standard Detail Requirements and Classifications for
ALTA/ACSM Land Title Surveys published in 1999 ("Survey Standards").

                                        8
<PAGE>

            5.2.3 On or before the date that is ten (10) days prior to Closing
("Title Objection Date"), Purchaser shall notify Seller of any items in the
Survey that were not disclosed in the Survey or in the Title Policy that are
unsatisfactory to Purchaser ("Objections"). Except to the extent that Purchaser
so notifies Seller of any Objections, any item reflected in the Title Policy,
and any item shown on the Survey, shall be deemed to have been approved by
Purchaser and shall be Permitted Exceptions for all purposes under this
Agreement.

            5.2.4 If Purchaser timely notifies Seller of any Objections, Seller
may, but shall not be obligated to, endeavor to cure the Objections to
Purchaser's and the Title Company's reasonable satisfaction. Seller shall give
notice to Purchaser on or before the date that is five (5) days following the
date on which Purchaser notified Seller of its Objections stating whether Seller
agrees to cure each such Objection prior to the Closing. If Seller fails timely
to give such notice, then Seller shall be conclusively deemed to have elected
not to cure any such Objections. Seller shall endeavor to cure at or before the
Closing any Objection that it has agreed to cure in accordance with this Section
5.2.4, provided that Seller shall have the right to extend the Closing for a
period not to exceed thirty (30) days in the aggregate if necessary to effect
such cure. Seller may use a portion of the Purchase Price to effect such cure at
Closing, and a title insurance endorsement reasonably acceptable to Purchaser
that affirmatively insures over any Objection shall constitute cure of such
Objection.

            5.2.5 If Seller elects (or is deemed to elect) not to agree to cure
any such Objections, then Purchaser may either (i) waive such Objections,
without any reduction of the Purchase Price, in which event such waived
Objections shall become Permitted Exceptions for all purposes under this
Agreement or (ii) terminate this Agreement by written notice to Seller,
whereupon the Deposit shall be promptly returned to Purchaser and the parties
shall have no further rights or liabilities under this Agreement other than
those that expressly survive the termination of this Agreement. Purchaser shall
make the election described in the preceding sentence by written notice to
Seller on or before the Closing, and in the event Purchaser does not make such
election, Purchaser shall be conclusively deemed to have waived all Objections
other than those that Seller has agreed to cure in accordance with Section
5.2.4.

            5.2.6 Notwithstanding anything to the contrary in this Section 5.2,
Seller shall cure at or before the Closing (i) any mortgage lien created by,
through or under Seller, other than any UCC financing statement filed with
respect to a Contract involving a lease of Seller's personal property, (ii) any
recorded mechanics' lien or materialmen's lien resulting from work performed for
Seller (it being agreed that Seller shall be entitled to cure such liens by
bonding over the same in a manner reasonably acceptable to Purchaser), (iii) any
judgment lien, tax lien (other than taxes not yet due and payable) or other lien
securing a monetary amount, created by, through or under Seller, which may be
removed by the payment of a liquidated sum of money and (iv) any encumbrance
created by or through Seller after the date of the Title Policy if Purchaser did
not expressly consent to the same, provided that Seller shall not be required to
expend more than $500,000.00 in the aggregate with respect to Objections
described in clauses (ii) and (iii). Seller may use a portion of the Purchase
Price to effect such cure at Closing.

                                        9
<PAGE>

      5.3 OPERATION OF PROPERTY. Prior to Closing:

            5.3.1 Seller shall continue to operate the Property in the ordinary
course of business consistent with the practices and procedures in effect as of
the Contract Date, except to the extent that this Agreement expressly provides
otherwise.

            5.3.2 Seller shall maintain all Improvements substantially in their
present condition, except for reasonable wear and tear and damage by casualty or
condemnation. 5.3.3 Seller shall continue to maintain the insurance currently
carried by it with respect to the Property.

      5.4 CONTRACTS. Prior to Closing, Seller shall not enter into any new
Contract that would be binding on Purchaser from and after Closing.

      5.5 UPDATES TO REPRESENTATIONS. Prior to Closing, Seller and Purchaser
shall each promptly notify the other in writing if it becomes aware of any fact
or condition that is inconsistent with any of Seller's representations or
warranties under this Agreement. Purchaser shall be bound by any state of facts
of which it is aware prior to Closing, notwithstanding any representation or
warranty to the contrary made hereunder by Seller. Accordingly, Seller shall not
be deemed to have breached any representation or warranty made hereunder to the
extent that Purchaser was aware prior to Closing that such representation or
warranty was not accurate.

      5.6 SATISFACTION OF CONDITIONS. Prior to Closing, Seller and Purchaser
shall each use good faith, commercially reasonable efforts to satisfy the
conditions to Closing set forth in Article 6.

                        ARTICLE 6. CONDITIONS TO CLOSING

      6.1 PURCHASER'S CONDITIONS TO CLOSING. The obligation of Purchaser to
consummate the Closing shall be subject to the satisfaction of each of the
following conditions, any or all of which may be waived in whole or in part by
Purchaser:

            6.1.1 Each of Seller's representations and warranties set forth in
this Agreement (as modified by all modifications and updates expressly permitted
by Section 5.5 or Section 7.6) shall be correct in all material respects as of
the Closing Date.

            6.1.2 Seller shall have performed all of its material obligations
under this Agreement required at or prior to Closing.

            6.1.3 Title to the Land and Improvements shall be good and
marketable fee simple title, subject only to the Permitted Exceptions, and
insurable at standard rates in an amount equal to the Purchase Price.

      6.2 FAILURE OF PURCHASER'S CONDITION. In the event of the failure of any
condition set forth in Section 6.1, Purchaser, at its sole election, may (i)
terminate this

                                       10
<PAGE>

Agreement and receive a return of the Deposit, (ii) waive the condition and
proceed to Closing, or (iii) extend the Closing Date for such additional period
of time (not to exceed thirty (30) days in the aggregate) as may be reasonably
required to allow such condition to be satisfied. Nothing set forth in this
Section 6.2 shall affect Purchaser's rights or remedies under Section 8.3 with
respect to any breach of this Agreement by Seller.

      6.3 SELLER'S CONDITIONS TO CLOSING. The obligation of Seller to consummate
the Closing shall be subject to the satisfaction of each of the following
conditions, any or all of which may be waived in whole or in part by Seller:

            6.3.1 Each of Purchaser's representations and warranties set forth
in this Agreement shall be correct in all material respects as of the Closing
Date.

            6.3.2 Each of Purchaser's representations and warranties set forth
in this Agreement shall be correct in all material respects as if made by
Purchaser's Designee as of the Closing Date.

            6.3.3 Purchaser shall have performed all of its material obligations
under this Agreement required at or prior to Closing.

      6.4 FAILURE OF SELLER'S CONDITION. In the event of the failure of any
condition precedent set forth in Section 6.3, Seller, at its sole election, may
(i) terminate this Agreement, (ii) waive the condition and proceed to Closing,
or (iii) extend the Closing Date for such additional period of time (not to
exceed thirty (30) days in the aggregate) as may be reasonably required to allow
Purchaser to satisfy such condition. Nothing set forth in this Section 6.4 shall
affect Seller's rights or remedies under Section 8.2 with respect to any breach
of this Agreement by Purchaser.

                               ARTICLE 7. CLOSING

      7.1 CLOSING.

            7.1.1 Closing shall be held on the date that is thirty (30) days
after the date of this Agreement or on such earlier date as is mutually agreed
upon by Seller and Purchaser, subject to extension as expressly provided in this
Agreement. Closing shall be conducted through an escrow with the Title Company,
and Seller and Purchaser shall execute (or cause their counsel to execute) such
additional instructions to the Title Company as may be required in connection
therewith.

            7.1.2 Pre-closing ("Pre-Closing") shall be held on the business day
immediately preceding the scheduled date for Closing. At Pre-Closing, Seller and
Purchaser shall execute and deliver to the Title Company all documents and
deliveries required under Sections 7.2 and 7.3, other than the Settlement
Statement and payment of the Purchase Price. Seller and Purchaser shall complete
and execute the Settlement Statement, and Purchaser shall pay the portion of the
Purchase Price required pursuant to Section 2.2.2.4 to the Title Company at
Closing by wire transfer of immediately available funds, such that the amounts
due to or on behalf of Seller pursuant to the Settlement

                                       11
<PAGE>

Statement shall be wire transferred into a bank account or accounts designated
by Seller no later than 1:00 p.m. local time at the Property on the Closing
Date.

      7.2 SELLER'S CLOSING DELIVERIES. At or prior to Closing, Seller shall
deliver to the Title Company the following:

            7.2.1 A deed substantially in the form of Exhibit A conveying the
fee estate in the Land and Improvements, with such modifications as are required
by local law so that such deed will be in recordable form, duly executed and
acknowledged by Seller, and dated as of the Closing Date.

            7.2.2 An assignment and assumption in the form of Exhibit B,
transferring to Purchaser all of Seller's right, title and interest in and to
the Intangible Property, duly executed by Seller, and dated as of the Closing
Date.

            7.2.3 Subject to the provisions of Section 7.6 hereof, a
certificate, duly executed by Seller, confirming that its representations and
warranties set forth in this Agreement are correct in all material respects as
if made on the Closing Date, modified as Seller may determine to be required to
reflect additional or changed facts or circumstances (including additional facts
or circumstances which may have become known to Seller after the execution of
this Agreement, but prior to Closing).

            7.2.4 A title affidavit, in customary form reasonably satisfactory
to the Title Company and Seller, with respect to mechanics' liens and parties in
possession, duly executed by Seller, provided that such affidavits shall not
subject Seller to any material liabilities other than as may be required by
Section 5.2.

            7.2.5 An affidavit, in the form required by the Code and the
regulations issued pursuant thereto, to the effect that Seller is not a foreign
person within the meaning of the Code.

            7.2.6 Such evidence of the power and authority of Seller to
consummate the transactions described in this Agreement as may be reasonably
required by Purchaser or Title Company.

            7.2.7 A written direction to the Title Company to disburse the
Deposit to Seller in accordance with Section 8.1.2.2.

            7.2.8 A Settlement Statement, duly executed by Seller.

            7.2.9 To the extent required by any Contract, notice in form
approved by Purchaser, informing the parties other than Seller to such contract
of the change in ownership of the Property.

            7.2.10 Such other documents and instruments as are customary and as
may be reasonably requested by Purchaser or the Title Company, to effectuate the
transactions contemplated by this Agreement.

                                       12
<PAGE>

      7.3 PURCHASER'S CLOSING DELIVERIES. At or prior to Closing, Purchaser
shall deliver to the Title Company the following:

            7.3.1 An assignment and assumption of the Intangible Property in the
form of Exhibit B, duly executed by Purchaser (or by Purchaser's Designee), and
dated as of the Closing Date.

            7.3.2 A certificate, duly executed by Purchaser, confirming that its
representations and warranties set forth in this Agreement are correct in all
material respects as if made on the Closing Date (or noting any exceptions).

            7.3.3 Such evidence of the power and authority of Purchaser and
Purchaser's Designee to consummate the transactions described in this Agreement
as may be reasonably required by Seller or Title Company. 7.3.4 A written
direction to the Title Company to disburse the Deposit to Seller in accordance
with Section 8.1.2.2.

            7.3.5 The balance of the Purchase Price.

            7.3.6 A Settlement Statement, duly executed by Purchaser or
Purchaser's Designee.

            7.3.7 Such other documents and instruments as are customary and as
may be reasonably requested by Seller or the Title Company to effectuate the
transactions contemplated by this Agreement.

      7.4 CLOSING COSTS. All escrow or settlement fees of the Title Company
shall be borne by Purchaser. All state, county and local taxes and fees related
to the transfer and recordation of the deed transferring title to the Property
to Seller shall be borne by Seller. Seller and Purchaser shall each bear its own
counsel's fees and expenses in connection with the transactions described in
this Agreement. Purchaser shall pay all costs of title insurance premiums and
costs, costs of the New Survey, and all costs of Purchaser's financing.

      7.5 INDEMNIFICATION.

            7.5.1 Subject to any express provisions of this Agreement to the
contrary, from and after Closing, Seller hereby agrees to indemnify Purchaser,
Purchaser's Designees, and their respective directors, officers, employees,
partners, members and affiliates (collectively, "Purchaser Indemnified
Parties"), and to hold Purchaser Indemnified Parties harmless from and against,
any and all Damages paid or incurred by Purchaser Indemnified Parties due to any
breach of any representation or warranty made by Seller in this Agreement.

            7.5.2 In connection with any indemnification claim under Section
7.5.1, Purchaser shall afford Seller a full opportunity to defend such claims,
using counsel

                                       13
<PAGE>

reasonably acceptable to Purchaser, in the name of Purchaser and generally shall
cooperate with Purchaser in the defense of such claim.

            7.5.3 Seller's indemnification of Purchaser pursuant to Section
7.5.1 shall terminate on the date that is nine (9) months after the Closing
Date. From and after Closing, the indemnification provisions in this Section 7.5
shall be the exclusive remedy of Purchaser in connection with any of the matters
described in this Section 7.5 and the transaction described in this Agreement,
and Purchaser hereby waives and releases any other rights or remedies it may
have under applicable law or at equity in connection therewith.

            7.5.4 Seller shall only have liability for any individual indemnity
claim under this Section 7.5 to the extent the actual damages suffered by
Purchaser from such individual claim exceed $50,000. Further, Seller's aggregate
liability for any actual damages suffered by Purchaser for all indemnity claims
made under this Section 7.5 shall not exceed $500,000.

      7.6 SUBSEQUENT CHANGES TO SELLER'S REPRESENTATIONS AND WARRANTIES. Seller
covenants and agrees to notify Purchaser in writing of any state of facts
becoming known to Seller after the date hereof which would render materially
inaccurate any of the representations and warranties made by Seller promptly
after such facts become known to Seller. In such event, Purchaser may, as its
sole remedy, terminate this Agreement upon written notice to Seller given within
two (2) days after receipt of Seller's notification and receive a return of the
Deposit, whereupon neither Seller nor Purchaser shall have any further liability
hereunder except for those matters which either expressly or by their very
nature survive termination. Notwithstanding the foregoing, Purchaser shall not
have the right to terminate this Agreement, as aforesaid, if Seller commences
and diligently pursues the cure of the condition which has rendered the affected
representation and warranty to be materially inaccurate and in fact effects such
cure not later than sixty (60) days after the originally-scheduled date for
Closing.

      7.7 SURVIVAL.

            7.7.1 Except where this Agreement expressly provides for a longer
period, the representations, warranties, covenants and indemnities of Seller and
Purchaser set forth in this Agreement shall survive Closing until the date that
is nine (9) months after the Closing Date, and any action on any such
representation, warranty, covenant or indemnity must be instituted on or before
such date.

            7.7.2 Notwithstanding any other provision of this Agreement, if at
or prior to Closing Purchaser obtains actual knowledge that any representation
or warranty of Seller under this Agreement (as the same is modified pursuant to
Section 5.6) is inaccurate in any respect, but nonetheless proceeds to Closing,
Purchaser shall be deemed to have waived any right to make a claim arising out
of such inaccuracy.

                                       14
<PAGE>

                      ARTICLE 8. ESCROW, DEFAULT, REMEDIES

      8.1 ESCROW TERMS.

            8.1.1 The Title Company shall promptly give notice to Purchaser and
Seller upon its receipt of any portion of the Deposit from Purchaser in
accordance with this Agreement. The Title Company shall invest the Deposit in an
interest bearing money market account at such bank as the Title Company may
elect and shall be approved by Purchaser and Seller. The Title Company shall not
be liable for any loss of such investment (unless due to the Title Company's
gross negligence or willful misconduct). All interest on the Deposit shall be
treated by the Title Company for income tax purposes as earned by Purchaser, and
Purchaser's tax identification number for this purpose is __________.

            8.1.2 The Title Company shall deliver the Deposit to Seller or to
Purchaser, as the case may be, under the following conditions:

                  8.1.2.1 the Deposit shall be delivered to or at the direction
of Seller at Closing upon receipt by the Title Company of a statement executed
by Seller and Purchaser that the Deposit may be so released; or

                  8.1.2.2 the Deposit shall be delivered to Seller following
receipt by the Title Company of written demand therefor from Seller, stating
that Purchaser has defaulted in the performance of its obligations under this
Agreement and specifying the Section of this Agreement which entitles Seller to
receive the Deposit, if Purchaser shall not have given written notice of
objection in accordance with Section 8.1.3; or

                  8.1.2.3 the Deposit shall be delivered to Purchaser following
receipt by the Title Company of written demand therefor from Purchaser stating
that Seller has defaulted in the performance of its obligations under this
Agreement or that this Agreement was terminated under circumstances entitling
Purchaser to the return of the Deposit, and specifying the Section of this
Agreement which entitles Purchaser to the return of the Deposit, if Seller shall
not have given written notice of objection in accordance with Section 8.1.3; or

                  8.1.2.4 the Deposit shall be delivered as directed by joint
written instructions of Seller and Purchaser.

            8.1.3 Upon the filing of a written demand for the Deposit by Seller
or Purchaser pursuant to Section 8.1.2.2 or 8.1.2.3, the Title Company shall
promptly give notice thereof (including a copy of such demand) to the other
party. The other party shall have the right to object to the delivery of the
Deposit, by giving notice of such objection to the Title Company at any time
within five (5) business days after such party's receipt of notice from the
Title Company, but not thereafter. Failure to deliver such objection notice
within such period shall be deemed to be a waiver of such party's right to
object to the Title Company's compliance with such demand. Such objection notice
shall set forth the basis for objecting to the delivery of the Deposit. Upon
receipt of such notice of

                                       15
<PAGE>

objection, the Title Company shall promptly give a copy of such notice to the
party who filed the written demand. The foregoing five (5) business day period
does not constitute a cure period in which either Seller or Purchaser, as the
case may be, shall be required to accept tender of cure of any default under
this Agreement.

            8.1.4 If the Title Company shall have received the notice of
objection provided for in Section 8.1.3 within the time therein prescribed, the
Title Company shall continue to hold the Deposit until (i) the Title Company
receives written notice from Seller and Purchaser directing the disbursement of
the Deposit, in which case the Title Company shall then disburse the Deposit in
accordance with said direction, or (ii) litigation is commenced between Seller
and Purchaser, in which case the Title Company shall deposit the Deposit with
the clerk of the court in which said litigation is pending, or (iii) the Title
Company takes such affirmative steps as the Title Company may elect, at the
Title Company's option, in order to terminate the Title Company's duties
hereunder (but in no event disbursing the Deposit to either Seller or
Purchaser), including depositing the Deposit in court and commencing an action
for interpleader, the costs thereof to be borne by whichever of Seller or
Purchaser is the losing party.

            8.1.5 The Title Company may rely and act upon any instrument or
other writing reasonably believed by it to be genuine and purporting to be
signed and presented by any person or persons purporting to have authority to
act on behalf of Seller or Purchaser, as the case may be, and shall not be
liable in connection with the performance of any duties imposed upon the Title
Company as escrow agent by the provisions of this Agreement, except for the
Title Company's own gross negligence, willful misconduct or default. The Title
Company shall have no duties or responsibilities except those set forth herein.
The Title Company shall not be bound by any modification or termination of this
Agreement unless the same is in writing and signed by Purchaser and Seller, and,
if the Title Company's duties hereunder are affected, unless the Title Company
shall have given prior written consent thereto. The Title Company shall be
reimbursed by Seller and Purchaser for any expenses (including reasonable legal
fees and disbursements of outside counsel, including all of the Title Company's
fees and expenses with respect to any interpleader action pursuant to Section
8.1.4) incurred in connection with this Agreement, and such liability shall be
joint and several; provided that, as between Purchaser and Seller, the
prevailing party in any dispute over the Deposit shall be entitled to
reimbursement of any such expenses paid to the Title Company. In the event that
the Title Company shall be uncertain as to the Title Company's duties or rights
hereunder, or shall receive instructions from Purchaser or Seller that, in the
Title Company's opinion, are in conflict with any of the provisions hereof, the
Title Company shall be entitled to continue to hold the Deposit pursuant to
Section 8.1.4, and may decline to take any other action.

            8.1.6 The Title Company shall have the right at any time to resign
as escrow agent upon ten (10) business days prior notice to Seller and
Purchaser. Seller and Purchaser shall jointly select a successor escrow agent
and shall notify the Title Company of the name and address of such successor
escrow agent within ten (10) business days after receipt of notice from the
Title Company of its intent to resign as escrow agent. If the Title Company has
not received notice of the name and address of such successor

                                       16
<PAGE>

escrow agent within such period, the Title Company shall have the right to
select on behalf of Seller and Purchaser a bank or trust company to act as its
successor hereunder. At any time after the ten (10) business day period, the
Title Company shall have the right to deliver the Deposit to any successor
selected hereunder, provided such successor shall execute and deliver to Seller
and Purchaser an assumption agreement whereby it assumes all of the Title
Company's obligations hereunder as escrow agent. Upon the delivery of all such
amounts and such assumption agreement, the successor shall become the escrow
agent for all purposes under this Section 8.1 and shall have all of the rights
and obligations of the Title Company under this Section 8.1, and the Title
Company shall have no further responsibilities or obligations hereunder as
escrow agent.

      8.2 PURCHASER'S DEFAULT. If Purchaser defaults in its obligation to
proceed to Closing in accordance with this Agreement, or if any condition set
forth in Section 6.3 is not satisfied and Seller elects not to proceed to
Closing, and if such default is not cured and/or such condition is not satisfied
within five (5) days after Seller has given Purchaser written notice of the
same, then the Title Company shall, subject to Sections 8.1.3 and 8.1.4, pay the
Deposit to Seller, as full and complete liquidated damages, and as the exclusive
and sole right and remedy of Seller. Upon payment of the Deposit to Seller
pursuant to this Section 8.2, this Agreement shall terminate and neither party
shall have any further obligations or liabilities to the other party, except for
obligations that expressly survive termination of this Agreement. Purchaser
acknowledges that Seller's actual damages caused by Purchaser's default in its
obligation to proceed to Closing would be difficult to determine precisely and
that the Deposit, as liquidated damages, is a fair and reasonable approximation.
Seller hereby waives any right to recover damages (whether actual,
consequential, punitive or other) as a result of Purchaser's default in its
obligation to proceed to Closing in accordance with this Agreement or as a
result of any conditions set forth in Section 6.3 not being satisfied, except
for the liquidated damages as described in this Section 8.2.

      8.3 SELLER'S DEFAULT. If Seller defaults in its obligation to proceed to
Closing in accordance with this Agreement, or if any condition set forth in
Section 6.1 is not satisfied and Purchaser elects not to proceed to Closing, and
if such default is not cured and/or such condition is not satisfied within five
(5) days after Purchaser has given Seller written notice of the same, then
Purchaser shall be entitled, as its sole remedy, to either (i) specific
performance of this Agreement, provided that any action for specific performance
must be initiated no later than sixty (60) days after the date that Closing is
otherwise required to occur under this Agreement, or (ii) terminate this
Agreement and (a) subject to Sections 8.1.2 and 8.1.3, receive a return of the
Deposit and (b) solely in the event of Seller's willful default, receive from
Seller all actual, consequential, punitive or other damages available at law or
in equity. Upon return of the Deposit to Purchaser pursuant to this Section 8.3,
this Agreement shall terminate and neither party shall have any further
obligations or liabilities to the other party, except for obligations that
expressly survive termination of this Agreement. Except in the event of Seller's
willful default as set forth above, Purchaser hereby waives any right to recover
damages (whether actual, consequential, punitive or other) as a result of
Seller's default in its obligation to proceed to Closing in accordance with this
Agreement or as a result of any condition set forth in Section 6.1 not being
satisfied.

                                       17
<PAGE>

                      ARTICLE 9. CASUALTY AND CONDEMNATION

      9.1 NOTICE TO PURCHASER. Seller shall give Purchaser notice of the
following promptly upon becoming aware of the same: (i) any pending or
threatened condemnation affecting the Property prior to Closing, and (ii) any
material fire or other casualty affecting the Property and occurring prior to
Closing.

      9.2 MINOR CASUALTY OR CONDEMNATION. If prior to Closing, (i) condemnation
proceedings are commenced against all or any portion of the Property, and such
proceedings do not materially adversely affect the continued operation of the
Property in substantially the same manner as the Property is operated on the
Contract Date, or (ii) the Property is damaged by fire or other casualty to the
extent that the cost of repairing such damage is reasonably estimated by Seller
and Purchaser, each acting reasonably and in good faith, to be five percent (5%)
of the Purchase Price, or less, then this Agreement shall continue in full force
and effect and the Purchase Price shall not be reduced except as hereinafter set
forth, but Purchaser shall be entitled to an assignment of all of the proceeds
payable to Seller of fire or other casualty insurance (other than those proceeds
expended by or on behalf of Seller prior to Closing to restore the Property),
all business interruption or rent loss insurance proceeds (if any) payable with
respect to the period from and after Closing, and all condemnation awards
payable to Seller (other than any portion of the award in respect of income lost
prior to Closing or expended by or on behalf of Seller prior to Closing to
restore the Property), as the case may be, and Seller shall have no obligation
to repair or restore the Property; provided, however, that in the case of any
insured casualty, the Purchase Price shall be reduced by the "deductible"
applied by the applicable Seller's insurer with respect to such fire or casualty
and not paid by Seller prior to Closing.

      9.3 MAJOR CASUALTY OR CONDEMNATION. If prior to Closing, (i) condemnation
proceedings are commenced against all or any material portion of the Property
and such proceedings are not covered by Section 9.2, or (ii) the Property is
damaged by fire or other casualty and such damage is not covered by Section 9.2,
either Purchaser or Seller shall have the right, upon notice in writing to the
other party delivered within ten (10) days after Seller gives Purchaser notice
of such matter as described in this Section 9.3, to terminate this Agreement,
whereupon this Agreement shall terminate, the Title Company shall return the
Deposit to Purchaser and neither party to this Agreement shall thereafter have
any further rights or liabilities under this Agreement other than those that
expressly survive termination of this Agreement. If neither party timely elects
to terminate this Agreement, then this Agreement shall continue in full force
and effect and the Purchase Price shall not be reduced except as hereinafter set
forth, but Purchaser shall be entitled to an assignment of all of the proceeds
payable to Seller of fire or other casualty insurance (other than those proceeds
expended by or on behalf of Seller prior to Closing to restore the Property),
all business interruption or rent loss insurance proceeds (if any) payable with
respect to the period from and after Closing, and all condemnation awards
payable to Seller (other than any portion of the award in respect of income lost
prior to Closing or expended by or on behalf of Seller prior to Closing to
restore the Property), as the case may be, and Seller shall have no obligation
to repair or restore the Property; provided, however, that in the case of any
insured casualty, the Purchase Price shall be reduced by

                                       18
<PAGE>

the "deductible" applied by the applicable Seller's insurer with respect to such
fire or casualty and not paid by such Seller prior to Closing.

                         ARTICLE 10. CERTAIN TAX MATTERS

      10.1 TAX APPEALS. If any appeal of any taxes or assessments relating to
the Property is pending as of the Closing Date, Seller shall be entitled to
receive any rebate or credit resulting from such appeal, and shall pay all
expenses of prosecuting such appeal.

      10.2 TRANSACTION TAXES. Seller shall be responsible for its federal and
state income, franchise and similar taxes applicable to the transactions
contemplated by this Agreement. Purchaser shall be responsible for any bulk
sales taxes, personal property sales taxes, and similar taxes applicable to the
transactions contemplated by this Agreement.

      10.3 SURVIVAL. This Article 10 shall survive Closing.

                            ARTICLE 11. MISCELLANEOUS

      11.1 ASSIGNMENT. Neither Seller nor Purchaser shall assign this Agreement
without the consent of the other. Notwithstanding the foregoing, without
Seller's consent, Purchaser shall have the right to assign the right to receive
the Property at Closing to another Person ("Purchaser's Designee"), subject to
the following conditions: (i) such Purchaser's Designee owns, is wholly owned
(directly or indirectly) by Purchaser; (ii) Purchaser shall give notice given to
Seller no later than ten (10) days after the Contract Date of the identity of
Purchaser's Designee; and (iii) such assignment shall not delay or otherwise
adversely affect Closing. Upon any such assignment, Purchaser's Designee shall
be deemed to have assumed for the benefit of Seller all obligations of Purchaser
under this Agreement, but such assignment shall not relieve Purchaser of its
obligations under this Agreement.

      11.2 NOTICES. Notices and other communications required or permitted under
this Agreement shall be in writing and delivered by hand against receipt or sent
by recognized overnight delivery service, by certified or registered mail,
postage prepaid, with return receipt requested or by facsimile. All notices
shall be addressed as follows:

If to Purchaser:           ArQule, Inc.
                           19 Presidential Way
                           Woburn, MA 01801
                           Attention: Chief Financial Officer
                           Fax: 781-994-0587

                                       19
<PAGE>

                           with a copy to:

                           Arnold & Porter LLP
                           555 Twelfth Street, N.W.
                           Washington, DC 20004
                           Attention: Kenneth L. Schwartz
                           Fax: 202-942-5999

If to Seller:              ARE-MA Region No. 20, LLC
                           c/o Alexandria Real Estate Equities, Inc.
                           135 North Robles Avenue, Suite 250
                           Pasadena, CA 91101
                           Attention: Thomas Andrews
                           Fax: 626-578-7318

with a copy to:            Wilmer Cutler Pickering Hale and Dorr
                           60 State Street
                           Boston, MA 02109
                           Attention: Katharine Bachman
                           Fax: 617-526-5000

If to Title Company:       Chicago Title Insurance Company
                           Maggie G. Watson
                           700 S. Flower Street, Suite 800
                           Los Angeles, CA 90017
                           Fax: 213-488-4380

or to such other addresses as may be designated by a proper notice. Notices
shall be deemed to be effective on and as of a particular day upon receipt (or
refusal thereof) if delivered on or before 5:00 Pacific Time in the following
manner: if personally delivered, sent by recognized overnight delivery service,
or sent by certified or registered mail, postage prepaid, with return receipt
requested, or upon electronically verified transmission, if such delivery is by
facsimile.

      11.3 WAIVER OF JURY TRIAL; JURISDICTION. SELLER AND PURCHASER EACH HEREBY
WAIVES ANY RIGHT TO JURY TRIAL IN THE EVENT ANY PARTY FILES AN ACTION RELATING
TO THIS AGREEMENT OR TO THE TRANSACTIONS OR OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT. Any action, suit or proceeding arising out of this Agreement or the
transactions contemplated by this Agreement shall be brought exclusively in the
federal or state court having jurisdiction over Boston, Massachusetts, and
Seller and Purchaser agree that such courts are the most convenient forum for
resolution of any such action and further agree to submit to the jurisdiction of
such courts and waive any right to object to venue in such courts.

      11.4 COUNTERPARTS AND EFFECTIVENESS. This Agreement may be executed in any
number of counterparts which, when taken together, shall constitute a single
binding

                                       20
<PAGE>

instrument. Execution and delivery of this Agreement by facsimile shall be
sufficient for all purposes and shall be binding on any Person who so executes.

      11.5 BROKERAGE. Each of Purchaser and Seller represents to one another
that no broker, finder or similar consultant has acted on its behalf in
connection with this Agreement. Purchaser and Seller each shall indemnify and
hold the other harmless from claims make by any broker, finder or similar
consultant claiming through it for a commission, fee or compensation in
connection with this Agreement, and such indemnity shall survive Closing without
limitation as to time. The indemnification obligations set forth in this Section
11.5 shall survive Closing or any termination of this Agreement.

      11.6 CONFIDENTIALITY. Purchaser and Seller shall each maintain as
confidential any and all information and material obtained about the other which
is furnished to it by the other in connection with this Agreement, and such
obligation shall survive any termination of this Agreement and shall survive
Closing. Purchaser and Seller shall each maintain as confidential the terms of
this Agreement and such obligation shall survive any termination of this
Agreement, but shall terminate at Closing. Purchaser shall maintain as
confidential any and all information and material about the Property which is
furnished to it by or on behalf of Seller, and such obligation shall survive any
termination of this Agreement but shall terminate at Closing. Confidential
information shall not include information and material which (i) becomes
generally available to the public other than as a result of a disclosure
prohibited by this Section 11.6, (ii) is known to Purchaser or Seller, as the
case may be, on a non-confidential basis, prior to its receipt of such
information and material from the other party, which shall not be unreasonably
withheld, or (iii) becomes available to Purchaser or Seller, as the case may be,
on a non-confidential basis from a source other than the other party which is
not prohibited from disclosing the same. Notwithstanding the foregoing, (a) each
of Purchaser and Seller may disclose confidential information to its employees,
agents or advisors, and to potential investors or lenders, in each case on a
need-to-know basis after the recipients of the information have been informed of
the confidential nature of such information and directed not to disclose such
information except in accordance with this Section 11.6, (b) each of Purchaser
and Seller may disclose confidential information to the extent required by
applicable law or the rules of any applicable securities exchange, and (c)
Purchaser and Seller, following prior notice to and consultation with the other,
may disclose the transaction contemplated by this Agreement to the extent
necessary to obtain consents or approvals contemplated by this Agreement.

      11.7 BULK SALES COMPLIANCE. Seller and Purchaser acknowledge that they do
not intend to comply with and have agreed to waive the provisions of any
statutory bulk sale or similar requirements applicable to the transactions
contemplated by this Agreement, and Seller and Purchaser agree to rely upon the
adjustment provisions of this Agreement to address any matters that would
otherwise be subject to such bulk sale requirements.

      11.8 PUBLIC ANNOUNCEMENTS. Neither Seller nor Purchaser shall make any
public statement or issue any press release prior to the date that is one
hundred eighty (180) days after the Closing with respect to this Agreement or
the transactions

                                       21
<PAGE>

contemplated by this Agreement without the prior written consent of the other
party (which consent shall not be unreasonably withheld or delayed) except as
otherwise required by law. If either party determines that applicable legal
requirements require disclosure of this Agreement or the transactions
contemplated hereby prior to Closing, then, not less than twenty-four (24) hours
prior to such disclosure, such party shall notify and provide the other party an
opportunity to comment on the disclosing party's form of press release,
securities filing or other written disclosure. Securities filings of either
party that effect a republication of previously issued press releases or public
statements shall not require notice to or the consent of the other party.

      11.9 RECORDATION. Neither Seller nor Purchaser shall record this Agreement
or any notice of this Agreement in the land records of any jurisdiction.

      11.10 TIME OF ESSENCE. Time is of the essence with respect to all
obligations of Seller and Purchaser under this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       22
<PAGE>

      IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be
executed as of the Contract Date:

                                 PURCHASER:

                                 ARQULE, INC.
                                 19 Presidential Way
                                 Woburn, MA 01801

                                 By:   _________________________________________
                                 Name: _________________________________________
                                 Its:  _________________________________________

                                 SELLER:

                                 ARE-MA REGION NO. 20, LLC, a Delaware limited
                                 liability company

                                 By: Alexandria Real Estate Equities,
                                     L.P., a Delaware limited partnership

                                     By: ARE-QRS Corp., a Maryland
                                         corporation

                                 By:   _________________________________________
                                 Name: _________________________________________
                                 Its:  _________________________________________

                          JOINDER OF THE TITLE COMPANY

      The undersigned is joining this Agreement to evidence its agreement to
receive, hold and disburse the Deposit in accordance with the terms of the
Agreement.

                                 CHICAGO TITLE INSURANCE COMPANY

                                 By:   _________________________________________
                                 Name: _________________________________________
                                 Its:  _________________________________________

                                       23
<PAGE>

                                LIST OF EXHIBITS

      EXHIBITS

      A                  Form of Deed
      B                  Form of Assignment
      C                  Legal Description of Land

                                        1<PAGE>
================================================================================

                                           [Published CUSIP Number: ___________]

                        4-YEAR REVOLVING CREDIT AGREEMENT
                             Dated as of May 5, 2005

                                      among

                            THE TJX COMPANIES, INC.,
                                as the Borrower,

                    THE FINANCIAL INSTITUTIONS NAMED HEREIN,
                                 as the Lenders,

                             BANK OF AMERICA, N.A.,

                            as Administrative Agent,

                   JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

                                       and

                              THE BANK OF NEW YORK,

                             as Syndication Agents,

                                       and

                         CITIZENS BANK OF MASSACHUSETTS,

                          KEYBANK NATIONAL ASSOCIATION,

                                       and

                         UNION BANK OF CALIFORNIA, N.A.,

                             as Documentation Agents

================================================================================

                         BANC OF AMERICA SECURITIES LLC,

                           BNY CAPITAL MARKETS, INC.,

                                       and

                            JPMORGAN SECURITIES INC.,

                              as Co-Lead Arrangers

                                       and

                           BNY CAPITAL MARKETS, INC.,

                                       and

                            JPMORGAN SECURITIES INC.,

                              as Joint Book Runners

================================================================================
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                      Page
                                                                                      ----
<S>                                                                                    <C>
ARTICLE I DEFINITIONS..............................................................     1

   1.1     Certain Defined Terms...................................................     1

ARTICLE II THE CREDITS.............................................................    16

   2.1     The Syndicated Loans....................................................    16
   2.2     Repayment of the Syndicated Loans.......................................    16
   2.3     Ratable Syndicated Loans; Types of Syndicated Advances..................    16
   2.4     Minimum Amount of Each Syndicated Advance...............................    16
   2.5     Optional Prepayments of Syndicated Loans................................    17
   2.6     Method of Selecting Types and Interest Periods for New Syndicated
              Advances.............................................................    17
   2.7     Conversion and Continuation of Outstanding Syndicated Advances..........    18
   2.8     Payment of Interest on Syndicated Advances; Changes in Interest Rate....    18
   2.9     Facility Fee; Utilization Fee; Adjustments in Aggregate Commitment......    19
   2.10    Rates Applicable After Default..........................................    20
   2.11    Method of Payment.......................................................    21
   2.12    Evidence of Debt (Optional Syndicated Notes); Telephonic Notices........    21
   2.13    Notification of Syndicated Advances, Interest Rates, Prepayments and
              Commitment Reductions................................................    22
   2.14    Lending Installations...................................................    22
   2.15    Non-Receipt of Funds by the Administrative Agent........................    22
   2.16    Withholding Tax Exemption...............................................    23
   2.17    Termination.............................................................    23
   2.18    Pricing.................................................................    23

ARTICLE III CHANGE IN CIRCUMSTANCES................................................    25

   3.1     Yield Protection........................................................    25
   3.2     Changes in Capital Adequacy Regulations.................................    25
   3.3     Availability of Types of Syndicated Advances............................    26
   3.4     Funding Indemnification.................................................    26
   3.5     Mitigation; Lender Statements; Survival of Indemnity....................    27

ARTICLE IV CONDITIONS PRECEDENT....................................................    27

   4.1     Effectiveness; Initial Syndicated Advance...............................    27
   4.2     Each Syndicated Advance.................................................    28

ARTICLE V REPRESENTATIONS AND WARRANTIES...........................................    29

   5.1     Existence and Standing..................................................    29
   5.2     Authorization and Validity..............................................    29
   5.3     No Conflict; Government Consent.........................................    30
   5.4     Financial Statements....................................................    30
   5.5     Material Adverse Change.................................................    31
   5.6     Taxes...................................................................    31
</TABLE>
<PAGE>
<TABLE>
<S>                                                                                    <C>
   5.7     Litigation and Contingent Obligations...................................    31
   5.8     Subsidiaries............................................................    31
   5.9     ERISA...................................................................    32
   5.10    Accuracy of Information.................................................    32
   5.11    Regulations T, U and X..................................................    32
   5.12    Material Agreements.....................................................    32
   5.13    Compliance With Laws....................................................    32
   5.14    Ownership of Property...................................................    33
   5.15    Labor Matters...........................................................    33
   5.16    Investment Company Act..................................................    33
   5.17    Public Utility Holding Company Act......................................    33
   5.18    Insurance...............................................................    34

ARTICLE VI COVENANTS...............................................................    34

   6.1     Financial Reporting.....................................................    34
   6.2     Use of Proceeds.........................................................    35
   6.3     Other Notices...........................................................    36
   6.4     Conduct of Business.....................................................    36
   6.5     Taxes...................................................................    36
   6.6     Insurance...............................................................    36
   6.7     Compliance with Laws....................................................    37
   6.8     Maintenance of Properties...............................................    37
   6.9     Inspection..............................................................    37
   6.10    Merger..................................................................    37
   6.11    Sale of Assets..........................................................    38
   6.12    Affiliates..............................................................    38
   6.13    Investments.............................................................    39
   6.14    Contingent Obligations..................................................    39
   6.15    Liens...................................................................    40
   6.16    Maximum Leverage Ratio..................................................    42
   6.17    Intentionally Deleted...................................................    42
   6.18    Acquisitions............................................................    42
   6.19    Rate Hedging Obligations................................................    42
   6.20    Subsidiary Indebtedness.................................................    42
   6.21    Subordination of Intercompany Indebtedness..............................    42

ARTICLE VII DEFAULTS...............................................................    43

   7.1     Breach of Representation or Warranty....................................    43
   7.2     Payment Default.........................................................    43
   7.3     Breach of Certain Covenants.............................................    43
   7.4     Breach of Other Provisions..............................................    43
   7.5     Default on Material Indebtedness........................................    43
   7.6     Voluntary Insolvency Proceedings........................................    44
   7.7     Involuntary Insolvency Proceedings......................................    44
   7.8     Condemnation............................................................    44
   7.9     Judgments...............................................................    45
   7.10    ERISA Matters...........................................................    45
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                                    <C>
   7.11    Environmental Matters...................................................    45
   7.12    Change of Control.......................................................    45
   7.13    Loan Document Defaults..................................................    45
   7.14    Off-Balance Sheet Liabilities...........................................    46

ARTICLE VIII ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES........................    46

   8.1     Acceleration............................................................    46
   8.2     Amendments..............................................................    46
   8.3     Preservation of Rights..................................................    47

ARTICLE IX GENERAL PROVISIONS......................................................    47

   9.1     Survival of Representations.............................................    47
   9.2     Governmental Regulation.................................................    48
   9.3     Taxes; Stamp Duties.....................................................    48
   9.4     Headings................................................................    48
   9.5     Entire Agreement........................................................    48
   9.6     Several Obligations; Benefits of this Agreement.........................    48
   9.7     Expenses; Indemnification...............................................    49
   9.8     Numbers of Documents....................................................    50
   9.9     Accounting..............................................................    50
   9.10    Severability of Provisions..............................................    51
   9.11    Nonliability of Lenders.................................................    51
   9.12    GOVERNING LAW...........................................................    51
   9.13    CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.................    52
   9.14    Confidentiality.........................................................    53

ARTICLE X THE ADMINISTRATIVE AGENT.................................................    54

   10.1    Appointment; Nature of Relationship.....................................    54
   10.2    Powers..................................................................    54
   10.3    General Immunity........................................................    54
   10.4    No Responsibility for Syndicated Loans, Creditworthiness, Collateral,
              Recitals, Etc........................................................    55
   10.5    Action on Instructions of Lenders.......................................    55
   10.6    Employment of Agents and Counsel........................................    56
   10.7    Reliance on Documents; Counsel..........................................    56
   10.8    The Administrative Agent's Reimbursement and Indemnification............    56
   10.9    Rights as a Lender......................................................    56
   10.10   Lender Credit Decision..................................................    57
   10.11   Successor Administrative Agent..........................................    57
   10.12   No Duties Imposed on Syndication Agents, Documentation Agents or
              Arrangers............................................................    58
   10.13   Administrative Agent's Fee..............................................    58

ARTICLE XI SETOFF; RATABLE PAYMENTS................................................    58

   11.1    Setoff..................................................................    58
   11.2    Ratable Payments........................................................    58
</TABLE>

                                       iii
<PAGE>
<TABLE>
<S>                                                                                    <C>
   11.3    Application of Payments.................................................    59

ARTICLE XII BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS......................    59

   12.1    Successors and Assigns..................................................    59
   12.2    Participations..........................................................    60
   12.3    Assignments.............................................................    61
   12.4    Designated Lenders......................................................    62
   12.5    Dissemination of Information............................................    63
   12.6    Tax Treatment...........................................................    63

ARTICLE XIII NOTICES...............................................................    63
   13.1    Giving Notice...........................................................    63
   13.2    Change of Address.......................................................    64

ARTICLE XIV COUNTERPARTS...........................................................    64

ARTICLE XV USA PATRIOT ACT NOTICE..................................................    65
</TABLE>

                                       iv
<PAGE>
SCHEDULES

<TABLE>
<S>             <C>
Schedule 1      Commitments
Schedule 5.3    Governmental Authorizations
Schedule 5.7    Litigation
Schedule 5.8    Subsidiaries
Schedule 5.13   Environmental, Health or Safety Requirements of Law
Schedule 5.14   Liens and Encumbrances
Schedule 6.11   Asset Sales
Schedule 6.13   Investments
Schedule 6.14   Contingent Obligations
Schedule 6.20   Subsidiary Indebtedness
Schedule 6.21   Subordination Terms

EXHIBITS

Exhibit A       Form of Syndicated Note (if requested)
Exhibit B       Required Opinions
Exhibit C       Form of Compliance Certificate
Exhibit D       Form of Assignment Agreement
Exhibit E       Form of Syndicated Loan/Credit Related Money Transfer
                   Instruction
Exhibit F       Form of Syndicated Advance Borrowing Notice
Exhibit G       Form of Prepayment Notice
Exhibit H       Form of Conversion/Continuation Notice
Exhibit I       Form of Designation Agreement
</TABLE>

                                        v
<PAGE>
          THIS 4-YEAR REVOLVING CREDIT AGREEMENT, dated as of May 5, 2005, is
among THE TJX COMPANIES, INC., as the Borrower, THE FINANCIAL INSTITUTIONS NAMED
HEREIN, as the Lenders, BANK OF AMERICA, N.A., as the Administrative Agent,
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION and THE BANK OF NEW YORK, as
Syndication Agents, and CITIZENS BANK OF MASSACHUSETTS, KEYBANK NATIONAL
ASSOCIATION and UNION BANK OF CALIFORNIA, N.A., as Documentation Agents. The
parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

          1.1 Certain Defined Terms.

          As used in this Agreement the following terms shall have the following
meanings, such meanings being equally applicable to both the singular and plural
forms of the terms defined:

          "Accounting Changes" has the meaning specified in Section 9.9.

          "Acquisition" means any transaction, or any series of related
transactions, by which the Borrower or any of its Subsidiaries (a) acquires any
going business or all or substantially all of the assets of any firm,
corporation or division thereof which constitutes a going business, whether
through purchase of assets, merger or otherwise or (b) directly or indirectly
acquires (in one transaction or as the most recent transaction in a series of
transactions) at least a majority (in number of votes) of the securities of a
corporation which have ordinary voting power for the election of directors
(other than securities having such power only by reason of the happening of a
contingency), or a majority (by percentage or voting power) of the outstanding
partnership interests of a partnership or a majority (by percentage or voting
power) of the outstanding ownership interests of a limited liability company.

          "Administrative Agent" means Bank of America in its capacity as
contractual representative for the Lenders pursuant to Article X, and not in its
capacity as a Lender, and any successor Administrative Agent appointed pursuant
to Article X.

          "Affiliate" of any Person means any other Person directly or
indirectly controlling, controlled by or under common control with such Person.
A Person shall be deemed to control another Person if the controlling Person
owns 20% or more of any class of voting securities (or other ownership
interests) of the controlled Person or possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies of the
controlled Person, whether through ownership of stock, by contract or otherwise;
provided that no individual shall be an Affiliate solely by reason of being, or
actions taken as, a director, officer or employee.

          "Aggregate Commitment" means the aggregate of the Commitments of all
the Lenders, as adjusted from time to time pursuant to the terms hereof. The
initial Aggregate Commitment hereunder is Five Hundred Million and 00/100
Dollars ($500,000,000).
<PAGE>
          "Agreement" means this 4-Year Revolving Credit Agreement, as it may
from time to time be amended, restated, supplemented or otherwise modified.

          "Alternate Base Rate" means, for any day, a rate of interest per annum
equal to the higher of (a) the Prime Rate for such day and (b) the sum of
Federal Funds Effective Rate for such day plus 0.50% per annum.

          "Applicable Facility Fee Rate" means, from time to time, the
Applicable Facility Fee Rate set forth in Section 2.18.

          "Applicable Utilization Fee Rate" means, from time to time, the
Applicable Utilization Fee Rate set forth in Section 2.18.

          "Arrangers" means BAS, BNYCMI and JPMorgan Securities, in their
capacity as co-lead arrangers and BNYCMI and JPMorgan Securities, in their
capacity as joint book runners.

          "Article" means an article of this Agreement unless another document
is specifically referenced.

          "Authorized Officer" means any of the President, the Chief Executive
Officer, the Chief Financial Officer, the Chief Operating Officer, the
Controller or the Treasurer of the Borrower, acting singly.

          "Bank of America" means Bank of America, N.A., in its individual
capacity, and its successors.

          "BAS" means Banc of America Securities LLC, in its individual
capacity, and its successors.

          "BNY" means The Bank of New York, in its individual capacity, and its
successors.

          "BNYCMI" means BNY Capital Markets, Inc., in its individual capacity,
and its successors.

          "Borrower" means The TJX Companies, Inc., a Delaware corporation, and
its successors and assigns.

          "Borrowing Date" means a date on which a Syndicated Advance is made
hereunder.

          "Business Day" means (a) with respect to any borrowing, payment or
rate selection of Eurodollar Advances, a day (other than a Saturday or Sunday)
on which banks generally are open in New York, New York and London, England for
the conduct of substantially all of their commercial lending activities and (b)
for all other purposes, a day (other than a Saturday or Sunday) on which banks
generally are open in New York, New York for the conduct of substantially all of
their commercial lending activities; provided, that each such day must also be a
day on which the Administrative Agent is open for the conduct of its business.

                                        2
<PAGE>
          "Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with GAAP.

          "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with GAAP.

          "Change" has the meaning specified in Section 3.2.

          "Change in Control" means:

          (a) the acquisition by any Person, or "group" (within the meaning of
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended)
of Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of 50% or more of the
outstanding shares of voting stock of the Borrower; or

          (b) during any period of twelve (12) consecutive calendar months,
individuals:

          (i) who were directors of the Borrower on the first day of such
     period; or

          (ii) whose election or nomination for election to the board of
     directors of the Borrower was recommended or approved by at least a
     majority of the directors then still in office who were directors of the
     Borrower on the first day of such period, or whose election or nomination
     for election was so approved,

     shall cease to constitute a majority of the board of directors of the
Borrower.

          "Chief Financial Officer" means, at any time, the Person who reports
to the board of directors of the Borrower on the financial affairs of the
Borrower and its Subsidiaries.

          "Code" means the Internal Revenue Code of 1986, as amended, reformed
or otherwise modified from time to time.

          "Combined Commitment" means the sum of (a) the Aggregate Commitment
(as defined in the 5-Year Revolving Credit Agreement) and (b) the Aggregate
Commitment hereunder.

          "Combined Utilized Amount" means (1) the sum of all Syndicated Loans,
and (2) the aggregate principal amount of all "Syndicated Loans" (whether
"Syndicated Loans" or "Swing Line Loans") and "L/C Obligations" under and as
defined in the 5-Year Revolving Credit Agreement.

          "Commitment" means, for each Lender, the obligation of such Lender to
make Syndicated Loans not exceeding, in the aggregate, the amount set forth
opposite its name on Schedule 1 hereto or as set forth in any Notice of
Assignment relating to any assignment that has

                                        3
<PAGE>
become effective pursuant to Section 12.3.2, as such amount may be modified from
time to time pursuant to the terms hereof.

          "Condemnation" has the meaning specified in Section 7.8.

          "Consolidated Interest Expense" means, for any period, the aggregate
amount of interest, including payments in the nature of interest under
Capitalized Lease Obligations and the discount or implied interest component of
Off-Balance Sheet Liabilities payable by the Borrower and its Subsidiaries for
such period on a consolidated basis in accordance with GAAP.

          "Consolidated Net Income" means, for any period, the consolidated net
income (or loss) of the Borrower and its Subsidiaries for such period determined
in accordance with GAAP; provided, that there shall be excluded from such amount
(i) the income (or loss) of any Affiliate of the Borrower or other Person (other
than a Subsidiary of the Borrower) in which any Person (other than the Borrower
or any of its Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to the Borrower or any
of its Subsidiaries by such Affiliate or other Person during such period and
(ii) the income (or loss) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries or that Person's assets are acquired by the Borrower
or any of its Subsidiaries.

          "Consolidated Net Worth" means, as of the date of any determination
thereof, the consolidated shareholders' equity of the Borrower and its
Subsidiaries determined in accordance with GAAP.

          "Consolidated Rentals" means, for any period, the aggregate rental
amounts payable by the Borrower and its Subsidiaries for such period under any
lease of Property having an original term (including any required renewals or
any renewals at the option of the lessor or lessee) of one year or more (but
does not include any amounts payable under Capitalized Leases), determined in
accordance with GAAP; provided, however, that there shall be excluded from such
calculation rentals in respect of discontinued operations and other store
closings reflected in the Borrower's consolidated financial statements (or the
footnotes thereto) to the extent such rentals relate to operations for which a
charge has been taken and/or reserve established in accordance with GAAP and
which do not exceed the amount of such charge and/or reserve, the amount of
which charge and/or reserve has been established consistent with GAAP.

          "Consolidated Total Assets" means, as of the date of any determination
thereof, the total assets of the Borrower and its Subsidiaries on a consolidated
basis determined in accordance with GAAP.

          "Contingent Obligation" of a Person means any agreement, written
undertaking or contractual arrangement by which such Person assumes, guarantees,
endorses, contingently agrees to purchase or provide funds for the payment of,
or otherwise becomes or is contingently liable upon, the financial or monetary
obligation or financial or monetary liability of any other Person (excluding
customary indemnification obligations arising from a purchase and sale agreement
negotiated at arm's length and typical for transactions of a similar nature), or
agrees in

                                        4
<PAGE>
writing to maintain the net worth or working capital or other financial
condition of any other Person, or otherwise assures any creditor of such other
Person in writing against loss, including, without limitation, any operating
agreement, take-or-pay contract or application for or reimbursement agreement
with respect to a letter of credit.

          "Controlled Group" means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with the Borrower or any of its Subsidiaries, are
treated as a single employer under Section 414 of the Code.

          "Conversion/Continuation Notice" has the meaning specified in Section
2.7.

          "Credit Ratings" has the meaning specified in Section 2.18.

          "Default" means an event described in Article VII.

          "Designated Lender" means, with respect to each Designating Lender,
each Eligible Designee designated by such Designating Lender pursuant to Section
12.4(a).

          "Designating Lender" means, with respect to each Designated Lender,
the Lender that designated such Designated Lender pursuant to such Section
12.4(a).

          "Disqualified Stock" means, for any Person, any capital stock of such
Person that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder thereof, in
whole or in part, on or prior to the date that is ninety-one (91) days after the
Facility Termination Date.

          "Dollars" and "$" mean the lawful money of the United States.

          "EBITDAR" for any period means the sum, without duplication, of (a)
Consolidated Net Income during such period, plus (to the extent deducted in
determining Consolidated Net Income) (b) all provisions for any foreign,
federal, state and local taxes paid or accrued by the Borrower or any of its
Subsidiaries during such period, plus (to the extent deducted in determining
Consolidated Net Income) (c) Consolidated Interest Expense of the Borrower or
any of its Subsidiaries during such period, minus (to the extent included in
determining Consolidated Net Income) (d) extraordinary gains (and any unusual
gains whether or not arising in the ordinary course of business not included in
extraordinary gains) to the extent not included in income from continuing
operations, plus (to the extent deducted in determining Consolidated Net Income)
(e) consolidated depreciation, plus (to the extent deducted in determining
Consolidated Net Income) (f) consolidated amortization expense, including
without limitation, amortization of goodwill and other intangible assets and
other non-cash charges but excluding reserves, plus (to the extent deducted in
determining Consolidated Net Income) (g) Consolidated Rentals, plus (to the
extent deducted in determining Consolidated Net Income) (h) extraordinary
losses; all of such items as determined in accordance with GAAP.

                                        5
<PAGE>
          "Eligible Designee" means a special purpose corporation, partnership,
limited partnership or limited liability company that is administered or
sponsored by a Lender or an Affiliate of a Lender and (i) is organized under the
laws of the United States or any state thereof, (ii) is engaged primarily in
making, purchasing or otherwise investing in commercial loans in the ordinary
course of its business and (iii) issues (or the parent of which issues)
commercial paper rated at least A-1 or the equivalent thereof by S&P or P-1 or
the equivalent thereof by Moody's.

          "Eligible Participant" means (i) a Lender or any Affiliate thereof
which is a commercial bank, (ii) any other commercial bank having capital and
surplus in excess of $100,000,000 or (iii) an Eligible Designee.

          "Environmental, Health or Safety Requirements of Law" means all
Requirements of Law derived from or relating to federal, state and local laws or
regulations relating to or addressing pollution or protection of the
environment, or protection of worker health or safety, including, but not
limited to, the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. Section 9601 et seq., the Occupational Safety and Health Act of
1970, 29 U.S.C. Section 651 et seq., and the Resource Conservation and Recovery
Act of 1976, 42 U.S.C. Section 6901 et seq., in each case including any
amendments thereto, any successor statutes, and any regulations or guidance
promulgated thereunder, and any state or local equivalent thereof.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.

          "Eurodollar Advance" means a Syndicated Advance denominated in Dollars
that bears interest at a Eurodollar Rate.

          "Eurodollar Applicable Margin" means, from time to time, the
Eurodollar Applicable Margin set forth in Section 2.18.

          "Eurodollar Base Rate" means, with respect to a Eurodollar Advance for
the relevant Eurodollar Interest Period, the applicable British Bankers'
Association Interest Settlement Rate for deposits in Dollars appearing on
Reuters Screen FRBD as of 11:00 a.m. (London time) two Business Days prior to
the first day of such Eurodollar Interest Period, and having a maturity equal to
such Eurodollar Interest Period, provided that, (i) if Reuters Screen FRBD is
not available to the Administrative Agent for any reason, the applicable
Eurodollar Base Rate for the relevant Eurodollar Interest Period shall instead
be the applicable British Bankers' Association Interest Settlement Rate for
deposits in Dollars as reported by any other generally recognized financial
information service as of 11:00 a.m. (London time) two Business Days prior to
the first day of such Eurodollar Interest Period and having a maturity equal to
such Eurodollar Interest Period, and (ii) if no such British Bankers'
Association Interest Settlement Rate is available to the Administrative Agent,
the applicable Eurodollar Base Rate for the relevant Eurodollar Interest Period
shall instead be the rate determined by the Administrative Agent to be the rate
at which Bank of America or one of its affiliate banks offers to place deposits
in Dollars with first-class banks in the London interbank market at
approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Eurodollar Interest Period, in the approximate amount of Bank of
America's relevant Eurodollar Advance, and having a maturity equal to such
Eurodollar Interest Period.

                                       6
<PAGE>
          "Eurodollar Interest Period" means, with respect to a Eurodollar
Advance, a period of one, two, three, six or, if available to all Lenders,
twelve months commencing on a Business Day selected by the Borrower pursuant to
this Agreement. Such Eurodollar Interest Period shall end on (but exclude) the
day which corresponds numerically to such date one, two, three, six or twelve
months thereafter, unless there is no such numerically corresponding day in such
next, second, third, sixth or twelfth succeeding month, in which case such
Eurodollar Interest Period shall end on the last Business Day of such next,
second, third, sixth or twelfth succeeding month. If a Eurodollar Interest
Period would otherwise end on a day which is not a Business Day, such Eurodollar
Interest Period shall end on the next succeeding Business Day, unless said next
succeeding Business Day falls in a new calendar month, in which case such
Eurodollar Interest Period shall end on the immediately preceding Business Day.

          "Eurodollar Loan" means a Syndicated Loan denominated in Dollars which
bears interest at the Eurodollar Rate.

          "Eurodollar Rate" means, with respect to a Eurodollar Advance for the
relevant Eurodollar Interest Period, the sum of (a) the quotient of (i) the
Eurodollar Base Rate applicable to such Eurodollar Interest Period, divided by
(ii) one minus the Reserves (expressed as a decimal) applicable to such
Eurodollar Interest Period, plus (b) the Eurodollar Applicable Margin in effect
from time to time during such Eurodollar Interest Period. The Eurodollar Rate
shall be rounded to the next higher multiple of 1/100 of 1% if the rate is not
such a multiple.

          "Existing Credit Agreements" means, collectively, (i) that certain
364-Day Credit Agreement dated as of March 26, 2002 among the Borrower, the
financial institutions named therein, BNY, as successor administrative agent to
Bank One, NA, JPMorgan and Bank of America, as successor syndication agents to
Fleet National Bank and BNY and KeyBank and Union Bank of California, as
successor documentation agents to Bank of America and JP Morgan, as amended from
time to time, and (ii) that certain 5-Year Revolving Credit Agreement dated as
of March 26, 2002 among the Borrower, the financial institutions named therein,
Bank One, NA, as administrative agent, Fleet National Bank and BNY, as
syndication agents, and Bank of America and JPMorgan, as documentation agents,
as amended from time to time.

          "Facility Termination Date" means May 5, 2009.

          "Fair Value" means the value of the relevant asset determined in an
arm's-length transaction conducted in good faith between an informed and willing
buyer and an informed and willing seller under no compulsion to buy or sell.

          "Federal Funds Effective Rate" means, for any day, an interest rate
per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average (rounded upward, if necessary, to a whole multiple of
1/100 of 1%) of the quotations at approximately 10:00 a.m. (New York time) on
such day on such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by the Administrative
Agent in its sole discretion.

                                        7
<PAGE>
          "Fee Letters" means, collectively, (i) that certain fee letter dated
as of March 23, 2005 among the Borrower, the Syndication Agents and the
Arrangers (other than BAS), as amended, restated, supplemented or otherwise
modified from time to time; and (ii) that certain fee letter dated as of the
April 6, 2005 between the Borrower and the Administrative Agent, as amended,
restated, supplemented or otherwise modified from time to time.

          "5-Year Revolving Credit Agreement" means that certain 5-Year
Revolving Credit Agreement dated as of May 5, 2005 among the Borrower, the
financial institutions named therein, Bank of America, N.A., as the
administrative agent thereunder, BNY and JPMorgan, as the syndication agents
thereunder, and Citizens Bank of Massachusetts, KeyBank National Association and
Union Bank of California, N.A., as the documentation agents thereunder, as the
same may be further amended, restated, supplemented or otherwise modified and as
in effect from time to time.

          "Floating Rate" means, for any day, a rate per annum equal to the
Alternate Base Rate for such day, changing when and as the Alternate Base Rate
changes.

          "Floating Rate Advance" means a Syndicated Advance denominated in
Dollars which bears interest at the Floating Rate.

          "Floating Rate Loan" means a Syndicated Loan denominated in Dollars
which bears interest at the Floating Rate.

          "Funded Debt" of any Person means, without duplication, all
obligations of such Person for money borrowed (whether or not such obligations
have a maturity in excess of one year) which in accordance with GAAP shall be
classified upon a balance sheet of such Person as liabilities of such Person,
and in any event shall include (a) all Capitalized Lease Obligations of such
Person and (b) all Contingent Obligations of such Person with respect to money
borrowed, but shall exclude (i) notes, bills and checks presented in the
ordinary course of business by such Person to banks for collection or deposit,
(ii) with reference to the Borrower and its Subsidiaries, all obligations of the
Borrower and its Subsidiaries of the character referred to in this definition to
the extent owing to the Borrower or any Subsidiary, (iii) bankers acceptances
which, in accordance with GAAP, are classified as accounts payable and (iv)
Contingent Obligations set forth on Schedule 6.14. Without in any way limiting
the foregoing, Funded Debt of the Borrower shall include all Syndicated Loans
outstanding under this Agreement and all "Syndicated Loans" outstanding under
and as defined in the 5-Year Revolving Credit Agreement.

          "GAAP" means generally accepted accounting principles as in effect
from time to time in the United States. An Affiliate of the Borrower which is
consolidated with the accounts of the Borrower in accordance with GAAP shall for
all accounting and financial tests contained in this Agreement be treated as a
Subsidiary hereunder.

          "Governmental Authority" means any country or nation, any political
subdivision of such country or nation, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government of any country or nation or political subdivision thereof.

                                        8
<PAGE>
          "Gross Negligence" means either recklessness or actions taken or
omitted with conscious indifference to or the complete disregard of
consequences. Gross Negligence does not mean the absence of ordinary care or
diligence, or an inadvertent act or inadvertent failure to act. If the term
"gross negligence" is used with respect to the Administrative Agent or any
Lender or any indemnitee in any of the Loan Documents, it shall have the meaning
set forth herein.

          "Hedging Agreement" means any interest rate, commodity or foreign
currency exchange swap, cap or collar arrangement or any other derivative
product customarily offered by banks or other financial institutions to their
customers in order to reduce the exposure of such customers to interest rate and
exchange rate fluctuations.

          "Indebtedness" of a Person means, without duplication, such Person's
(a) obligations for borrowed money, (b) obligations representing the deferred
purchase price of Property or services (other than (i) accounts payable and (ii)
bankers acceptances classified in accordance with GAAP as accounts payable, in
each case arising in the ordinary course of such Person's business payable on
terms customary in the trade), (c) obligations, whether or not assumed, secured
by Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (d) obligations which are evidenced
by notes, acceptances (to the extent not classified as accounts payable in
accordance with GAAP), or other similar instruments, (e) Capitalized Lease
Obligations, (f) obligations of such Person to purchase securities or other
property arising out of or in connection with the sale of the same or
substantially similar securities or property, (g) all Off-Balance Sheet
Liabilities of such Person, (h) net obligations in respect of Hedging Agreements
(to the extent a liability is created) (i) all Disqualified Stock and (j) any
other obligation in writing for borrowed money or financial accommodation with
respect to other items included in the definition of Indebtedness above which in
accordance with GAAP would be shown as a liability on the consolidated balance
sheet of such Person, but excluding, in any event, (i) amounts payable by such
Person in respect of covenants not to compete, and (ii) with reference to the
Borrower and its Subsidiaries, all obligations of the Borrower and its
Subsidiaries of the character referred to in this definition to the extent owing
to the Borrower or any Subsidiary of the Borrower.

          "Indemnified Matters" has the meaning specified in Section 9.7(b).

          "Indemnitees" has the meaning specified in Section 9.7(b).

          "Intellectual Property" means (i) any and all intangible personal
property consisting of intellectual property, whether or not registered with any
governmental entity, including, without limitation, franchises, licenses,
patents, technology and know-how, copyrights, trademarks, trade secrets, service
marks, logos and trade names and (ii) any and all contract rights (including,
without limitation, applications for governmental registrations, license
agreements, trust agreements and assignment agreements) creating, evidencing or
conveying an interest or right in or to any of the intellectual property
described in the preceding clause (i).

          "Interest Period" means a Eurodollar Interest Period.

          "Investment" of a Person means any loan, advance (other than
commission, travel and other loans, credits and advances to officers and
employees made in the ordinary course of

                                        9
<PAGE>
business), extension of credit (other than accounts receivable arising in the
ordinary course of business on terms customary in the trade), deposit account or
contribution of capital by such Person to any other Person or any investment in,
or purchase or other acquisition of, the stock, partnership interests, ownership
interests in any limited liability company, notes, debentures or other
securities of any other Person made by such Person (other than anticipatory
prepayments to vendors in the ordinary course of business consistent with past
practice).

          "JPMorgan" means JPMorgan Chase Bank, National Association, in its
individual capacity, and its successors.

          "JPMorgan Securities" means JPMorgan Securities Inc., in its
individual capacity, and its successors.

          "Lenders" means the lending institutions listed on the signature pages
of this Agreement and their respective successors and assigns.

          "Lending Installation" means, with respect to a Lender, any office,
branch, subsidiary or affiliate of such Lender.

          "Leverage Ratio" means, with respect to the last day of any fiscal
quarter, the ratio of:

          (i) the sum of (a) Funded Debt of the Borrower and its Subsidiaries on
     a consolidated basis, plus (b) an amount equal to the product of four (4)
     multiplied by Consolidated Rentals for the period of four consecutive
     fiscal quarters ending on such day to

          (ii) EBITDAR of the Borrower and its Subsidiaries on a consolidated
     basis for the period of four consecutive fiscal quarters ending on such
     day.

          "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement).

          "Loan Documents" means this Agreement, any Syndicated Notes and all
other documents, instruments and agreements executed in connection therewith or
contemplated thereby, as the same may be amended, restated, supplemented or
otherwise modified and in effect from time to time.

          "Material Adverse Effect" means a material adverse effect on (a) the
business, financial condition, operations, performance or Property of the
Borrower and its Subsidiaries on a consolidated basis, (b) the ability of the
Borrower to perform its obligations under the Loan Documents, or (c) the
validity or enforceability of any of the Loan Documents or any material rights
or remedies of the Administrative Agent or the Lenders thereunder.

                                       10
<PAGE>
          "Material Indebtedness" means Indebtedness (including the net
obligations in respect of Hedging Agreements) which, individually, or in the
aggregate, exceeds $30,000,000.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a Plan, if any, maintained pursuant to a
collective bargaining agreement or any other arrangement to which the Borrower
or any member of the Controlled Group is a party to which more than one
non-Affiliated employer is obligated to make contributions.

          "Notice of Assignment" has the meaning specified in Section 12.3.2.

          "Obligations" means all unpaid principal of and accrued and unpaid
interest on the Syndicated Loans, all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of the Borrower to the Lenders
or to any Lender, the Administrative Agent or any indemnified party hereunder
arising under the Loan Documents.

          "Off-Balance Sheet Liability" of a Person means (i) any repurchase
obligation or liability of such Person or any of its Subsidiaries with respect
to accounts or notes receivable sold by such Person or any of its Subsidiaries
(calculated to include the unrecovered investment of purchasers or transferees
of accounts or any other obligation of such Person or such transferor to
purchasers/transferees of interests in accounts or notes receivable or the agent
for such purchasers/transferees), (ii) any liability under any sale and
leaseback transaction which is not a Capitalized Lease, (iii) any liability
under any financing lease or Synthetic Lease or "tax ownership operating lease"
transaction entered into by such Person, including any Synthetic Lease
Obligations, or (iv) any obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the balance sheets of
such Person, but excluding from this clause (iv) Operating Leases.

          "Operating Lease" of a Person means any lease of Property (other than
a Capitalized Lease) by such Person as lessee.

          "Participant" has the meaning specified in Section 12.2.1.

          "Patriot Act" has the meaning specified in Article XV.

          "Payment Office" means the principal office of the Administrative
Agent in Concord, California, located on the date hereof at 1850 Gateway
Boulevard, Concord, California 94520 or such other office of the Administrative
Agent as the Administrative Agent may from time to time designate by written
notice to the Borrower and the Lenders.

          "PBGC" means the Pension Benefit Guaranty Corporation, or any
successor thereto.

          "Permitted Acquisition" means any Acquisition made by the Borrower or
any of its Subsidiaries, provided that upon giving effect to each such
Acquisition (a) the Person so acquired by the Borrower shall have either been
merged into the Borrower or a Subsidiary (with

                                       11
<PAGE>
the Borrower or the Subsidiary as the surviving entity) or such Person shall
have become a Subsidiary of the Borrower; (b) no Default or Unmatured Default
shall exist; (c) the Acquisition is consummated on a non-hostile basis approved
by a majority of the board of directors or other governing body of the Person
being acquired; and (d) involves the purchase of a business line similar,
related, complementary or incidental to that of the Borrower and its
Subsidiaries as of the date of this Agreement.

          "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

          "Plan" means an employee pension benefit plan which is covered by
Title IV of ERISA or subject to the minimum funding standards under Section 412
of the Code as to which the Borrower or any member of the Controlled Group may
have any liability.

          "Prepayment Notice" has the meaning specified in Section 2.5.

          "Prime Rate" means the per annum rate announced by the Administrative
Agent (or its parent) from time to time as its "prime rate" (it being
acknowledged that such announced rate is a rate set by the Administrative Agent
based on various factors including the Administrative Agent's costs and desired
return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above or below
such announced rate), which prime rate shall change at the opening of business
on the day of any change in such announced rate.

          "Pro Rata Share" means, with respect to any Lender, the percentage
obtained by dividing (A) such Lender's Commitment at such time (as adjusted from
time to time in accordance with the provisions of this Agreement) by (B) the
Aggregate Commitment at such time; provided, that if the Commitments are
terminated pursuant to the terms of this Agreement, then "Pro Rata Share" means
the percentage obtained by dividing (x) the sum of each Lender's Syndicated
Loans by (y) the aggregate amount of all Syndicated Loans.

          "Property" of a Person means any and all property, whether real,
personal, tangible, intangible, or mixed, of such Person, or other assets owned,
leased or operated by such Person.

          "Purchasers" has the meaning specified in Section 12.3.1.

          "Rated Debt" means the Borrower's senior unsecured non-credit-enhanced
long-term Indebtedness, which Indebtedness does not benefit from guaranties or
other credit enhancement provided by any of the Borrower's Subsidiaries.

          "Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

                                       12
<PAGE>
          "Regulation T" means Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by and to brokers and dealers of securities for the purpose
of purchasing or carrying margin stocks.

          "Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to member banks of the Federal Reserve System.

          "Regulation X" means Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).

          "Reportable Event" means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC by regulation waived the
requirement of Section 4043(a) of ERISA that it be notified within 30 days of
the occurrence of such event; provided, however, that a failure to meet the
minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the
notice requirement in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.

          "Required Lenders" means Lenders having, in the aggregate, at least
51% of the Aggregate Commitment; provided, however, that in the event any of the
Lenders shall have failed to fund a portion of any Syndicated Advance requested
by the Borrower which such Lenders are obligated to fund under the terms of this
Agreement and any such failure has not been cured, then for so long as such
failure continues, "Required Lenders" means Lenders (excluding all such
defaulting Lenders) having, in the aggregate, at least 51% of the aggregate
Commitments of such non-defaulting Lenders; provided, further, however, that, if
the Aggregate Commitment has been terminated pursuant to the terms of this
Agreement, "Required Lenders" means Lenders (without regard to such Lenders'
performance of their respective obligations hereunder) whose aggregate
outstanding principal balance of all Syndicated Loans is equal to or greater
than 51%.

          "Requirements of Law" means, as to any Person, the charter and by-laws
or other organizational or governing documents of such Person, and any law, rule
or regulation, or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject
including, without limitation, the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, Regulations T, U and X, ERISA, the
Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act,
Americans with Disabilities Act of 1990, and any certificate of occupancy,
zoning ordinance, building, environmental or land use requirement or permit or
environmental, labor, employment, occupational safety or health law, rule or
regulation, including Environmental, Health or Safety Requirements of Law.

                                       13
<PAGE>
          "Reserves" means, with respect to a Eurodollar Interest Period, the
maximum aggregate reserves (including all basic, supplemental, marginal and
other reserves) imposed under Regulation D on Eurocurrency liabilities.

          "Risk-Based Capital Guidelines" has the meaning specified in Section
3.2.

          "S&P" means Standard & Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc.

          "Sale and Leaseback Transaction" means any sale or other transfer of
Property by any Person with intent to lease such Property as lessee pursuant to
a Capitalized Lease.

          "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

          "Single Employer Plan" means a Plan, if any, maintained by the
Borrower or any member of the Controlled Group for employees of the Borrower or
any member of the Controlled Group. The term "Single Employer Plan" does not
include any Multiemployer Plan.

          "Specified Remittance Time" means (a) if the relevant Payment Office
is located in New York, New York, 2:00 p.m. (New York time) and (b) if the
relevant Payment Office is located elsewhere, such time as the Administrative
Agent shall specify after consultation with the Lenders and the consent of the
Borrower, which consent shall not be unreasonably withheld.

          "Subsidiary" of a Person means (a) any corporation more than 50% of
the outstanding securities having ordinary voting power of which shall at the
time be owned or controlled, directly or indirectly, by such Person or by one or
more of its Subsidiaries or by such Person and one or more of its Subsidiaries,
or (b) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at the time be so owned or controlled.
Unless otherwise expressly provided, all references herein to a "Subsidiary"
shall mean a Subsidiary of the Borrower.

          "Substantial Portion" means, with respect to the Property of any
Person and its Subsidiaries, Property which:

          (a) when aggregated with all other Property in accordance with Section
6.11 (i) represents more than 15% of the consolidated assets of such Person and
its Subsidiaries as would be shown in the consolidated financial statements of
such Person and its Subsidiaries as at the beginning of the fiscal year in which
such determination is made, or (ii) is responsible for more than 15% of the
consolidated net sales of such Person and its Subsidiaries as reflected in the
financial statements referred to in clause (i) above; or

          (b) in any individual transaction or series of related transactions
(i) represents more than 10% of the consolidated assets of such Person and its
Subsidiaries as would be shown in the consolidated financial statements of such
Person and its Subsidiaries as at the beginning of the fiscal year in which such
determination is made, or (ii) is responsible for more than 10% of

                                       14
<PAGE>
the consolidated net sales of such Person and its Subsidiaries as reflected in
the financial statements referred to in clause (i) above.

          "Syndicated Advance" means a borrowing consisting of simultaneous
Syndicated Loans of the same Type made to the Borrower by each of the Lenders
pursuant to Section 2.1, and, in the case of Eurodollar Advances, for the same
Interest Period.

          "Syndicated Advance Borrowing Notice" has the meaning specified in
Section 2.6.

          "Syndicated Loan" means a loan by a Lender to the Borrower as part of
a Syndicated Advance.

          "Syndicated Note" means a promissory note of the Borrower payable to
the order of any Lender, in substantially the form of Exhibit A hereto,
evidencing the aggregate indebtedness of the Borrower to such Lender resulting
from the Syndicated Loans made by such Lender to the Borrower.

          "Syndication Agents" means, collectively, BNY and JPMorgan, and their
respective successors and assigns.

          "Synthetic Lease" means a so-called "synthetic" lease that is not
treated as a capital lease under GAAP, but that is treated as a financing under
the Code.

          "Synthetic Lease Obligations" means, collectively, the payment
obligations of the Borrower or any of its Subsidiaries pursuant to a Synthetic
Lease.

          "Transferee" has the meaning specified in Section 12.5.

          "Type" means, (a) with respect to any Syndicated Loan, its nature as a
Floating Rate Loan or a Eurodollar Loan and (b) with respect to any Syndicated
Advance, its nature as a Floating Rate Advance or a Eurodollar Advance.

          "Unfunded Liabilities" means the amount (if any) by which the present
actuarial value of all vested nonforfeitable benefits under all Single Employer
Plans (based on the actuarial assumptions for each such plan) exceeds the Fair
Value of all such Plan assets allocable to such benefits, all determined as of
the then most recent valuation date for such Plans.

          "United States" and "U.S." mean the United States of America.

          "Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.

          "Wholly-Owned Subsidiary" of a Person means (a) any Subsidiary all of
the outstanding voting securities of which (other than directors qualifying
shares and shares required by applicable corporate law to be owned by foreign
nationals) shall at the time be owned or controlled, directly or indirectly, by
such Person or one or more Wholly-Owned Subsidiaries of such Person, or by such
Person and one or more Wholly-Owned Subsidiaries of such Person, or

                                       15
<PAGE>
(b) any partnership, association, joint venture or similar business organization
100% of the ownership interests having ordinary voting power of which (other
than directors qualifying shares and shares required by applicable corporate law
to be owned by foreign nationals) shall at the time be so owned or controlled.

                                   ARTICLE II
                                   THE CREDITS

          2.1 The Syndicated Loans.

          From and including the date of this Agreement and prior to the
Facility Termination Date, each Lender severally agrees, on the terms and
conditions set forth in this Agreement (including, without limitation, the terms
and conditions of Section 2.9 and Section 8.1 relating to the reduction,
suspension or termination of the Aggregate Commitment), to make Syndicated Loans
to the Borrower from time to time in an aggregate amount not to exceed at any
one time outstanding the amount of such Lender's Commitment. Subject to the
terms of this Agreement (including, without limitation, the terms and conditions
of Section 2.9 and Section 8.1 relating to the reduction, suspension or
termination of the Aggregate Commitment), the Borrower may borrow, repay and
reborrow Syndicated Loans at any time prior to the Facility Termination Date.
Unless earlier terminated in accordance with the terms and conditions of this
Agreement, the Commitments of the Lenders to lend hereunder shall expire on the
Facility Termination Date.

          2.2 Repayment of the Syndicated Loans.

          Any outstanding Syndicated Loans shall be paid in full by the Borrower
on the Facility Termination Date; provided, however, that nothing in this
Section 2.2 shall be construed as limiting or modifying the obligation of the
Borrower to repay any or all of the outstanding Syndicated Loans at any earlier
time in accordance with the terms of this Agreement.

          2.3 Ratable Syndicated Loans; Types of Syndicated Advances.

          Each Syndicated Advance hereunder shall consist of Syndicated Loans
made from the several Lenders ratably in proportion to their respective Pro Rata
Shares of the Aggregate Commitment. Any Syndicated Advance may be a Floating
Rate Advance or a Eurodollar Advance, as the Borrower shall select in accordance
with Sections 2.6 and 2.7.

          2.4 Minimum Amount of Each Syndicated Advance.

          Each Eurodollar Advance shall be in the minimum amount of $15,000,000
(and an integral multiple of $5,000,000 if in excess thereof) and each Floating
Rate Advance shall be in the minimum amount of $10,000,000 (and an integral
multiple of $1,000,000 if in excess thereof); provided, however, that any
Syndicated Advance that is a Floating Rate Advance may be in the amount of the
unused Aggregate Commitment.

                                       16
<PAGE>
          2.5 Optional Prepayments of Syndicated Loans.

          Subject to Section 3.4 and the requirements of Section 2.4, the
Borrower may (a) following notice given to the Administrative Agent by the
Borrower, in the form attached hereto as Exhibit G (a "Prepayment Notice") by
not later than 2:00 p.m. (New York time) on the date of the proposed prepayment,
such notice specifying the aggregate principal amount of and the proposed date
of the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amounts of the Floating Rate Loans comprising part of the
same Syndicated Advance in whole or ratably in part, together with accrued
interest to the date of such prepayment on the principal amount prepaid and (b)
following a Prepayment Notice given to the Administrative Agent by the Borrower
by not later than 2:00 p.m. (New York time) on, if the Syndicated Advance to be
prepaid is a Eurodollar Advance, the third Business Day preceding the date of
the proposed prepayment, such notice specifying the Syndicated Advance to be
prepaid and the proposed date of the prepayment, and, if such notice is given,
such Borrower shall, prepay the outstanding principal amounts of the Eurodollar
Loans comprising a Eurodollar Advance in whole (and not in part), together with
accrued interest to the date of such prepayment on the principal amount prepaid.
In the case of a Floating Rate Advance, each partial prepayment shall be in an
aggregate principal amount not less than $10,000,000 (and an integral multiple
of $1,000,000 if in excess thereof).

          2.6 Method of Selecting Types and Interest Periods for New Syndicated
Advances.

          The Borrower shall select the Type of each Syndicated Advance and, in
the case of a Eurodollar Advance, the Interest Period applicable to such
Syndicated Advance from time to time. The Borrower shall give the Administrative
Agent irrevocable notice, in the form attached hereto as Exhibit F (a
"Syndicated Advance Borrowing Notice"), not later than 12:00 p.m. (New York
time) (i) on the Borrowing Date for each Floating Rate Advance and (ii) at least
three Business Days before the Borrowing Date for each Eurodollar Advance,
specifying:

          (a) the Borrowing Date, which shall be a Business Day, of such
Syndicated Advance,

          (b) the aggregate amount of such Syndicated Advance,

          (c) the Type of such Syndicated Advance, and

          (d) in the case of each Eurodollar Advance, the Interest Period
applicable thereto.

Not later than the Specified Remittance Time on each Borrowing Date, each Lender
shall make available its Syndicated Loan or Syndicated Loans to the
Administrative Agent in immediately available funds at the relevant Payment
Office. To the extent that the Administrative Agent has received funds from the
Lenders as specified in the preceding sentence and the applicable conditions set
forth in Article IV have been fulfilled, the Administrative Agent will make such
funds available to the Borrower at the relevant Payment Office promptly
following the Specified Remittance Time, it being understood that, upon the
request and direction of the Borrower, the

                                       17
<PAGE>
Administrative Agent will make the applicable funds available to the Borrower by
depositing such funds to such account with Bank of America as the Borrower shall
designate.

          2.7 Conversion and Continuation of Outstanding Syndicated Advances.

          Floating Rate Advances shall continue as Floating Rate Advances unless
and until such Floating Rate Advances are converted into Eurodollar Advances or
prepaid pursuant to Section 2.5. Each Eurodollar Advance shall continue as a
Eurodollar Advance until the end of the then applicable Interest Period
therefor, at which time such Eurodollar Advance shall be automatically converted
into a Floating Rate Advance unless the Borrower shall have given the
Administrative Agent a Conversion/Continuation Notice requesting that, at the
end of such Interest Period, such Eurodollar Advance either continue as a
Eurodollar Advance for the same or another Interest Period or be converted into
a Syndicated Advance of another Type. Subject to the terms of Section 2.6, the
Borrower may elect from time to time to convert all or any part of a Syndicated
Advance of any Type into any other Type or Types of Syndicated Advances;
provided that any conversion of any Eurodollar Advance shall be made on, and
only on, the last day of the Interest Period applicable thereto. The Borrower
shall give the Administrative Agent irrevocable notice in the form of Exhibit H
hereto (a "Conversion/Continuation Notice") of each conversion of a Syndicated
Advance or continuation of a Eurodollar Advance not later than 12:00 p.m. (New
York time) (i) in the case of a conversion into a Floating Rate Advance on the
date of such conversion and (ii) in the case of a conversion into or
continuation of a Eurodollar Advance, at least three Business Days before the
date of such conversion or continuation, specifying:

          (a) the requested date, which shall be a Business Day, of such
conversion or continuation;

          (b) the aggregate amount and Type of the Syndicated Advance which is
to be converted or continued; and

          (c) the amount and Type(s) of Syndicated Advance(s) into which such
Syndicated Advance is to be converted or continued and, in the case of a
conversion into or continuation of a Eurodollar Advance, the duration of the
Interest Period applicable thereto.

          2.8 Payment of Interest on Syndicated Advances; Changes in Interest
Rate.

          (a) Interest accrued on each Floating Rate Advance shall be payable in
arrears on the last Business Day of each fiscal quarter, on the Facility
Termination Date, on the date of the reduction of all or any part of the
Aggregate Commitment pursuant to Section 2.9 (solely with respect to such
reduced amount) and on the date on which this Agreement is terminated in full
and all of the Obligations hereunder have been paid in full pursuant to Section
2.2. Interest accrued on each Eurodollar Advance shall be payable in arrears on
the last day of its applicable Interest Period, on any date on which the
Eurodollar Advance is prepaid, whether by acceleration or otherwise, and at
maturity. Interest accrued on each Eurodollar Advance having an Interest Period
longer than three months shall also be payable on the last day of each
three-month interval during such Interest Period. Interest on Floating Rate
Advances shall be calculated for actual days elapsed on the basis of a 365/366
-day year. Interest on Eurodollar Advances shall

                                       18
<PAGE>
be calculated for actual days elapsed on the basis of a 360-day year. Interest
shall be payable for the day a Syndicated Advance is made but not for the day of
any payment on the amount paid if payment is received prior to 2:00 p.m. (New
York time) at the place of payment. If any payment of principal of or interest
on a Syndicated Advance shall become due on a day which is not a Business Day,
such payment shall be made on the next succeeding Business Day and, in the case
of a principal payment, such extension of time shall be included in computing
interest in connection with such payment.

          (b) Each Floating Rate Advance shall bear interest on the outstanding
principal amount thereof, for each day from and including the date such Floating
Rate Advance is made or is converted from a Eurodollar Advance into a Floating
Rate Advance pursuant to Section 2.7 to but excluding the date it becomes due or
is converted into a Eurodollar Advance pursuant to Section 2.7, at a rate per
annum equal to the Floating Rate for such day. Changes in the rate of interest
on each Syndicated Advance maintained as a Floating Rate Advance will take
effect simultaneously with each change in the Alternate Base Rate. Each
Eurodollar Advance shall bear interest from and including the first day of the
Interest Period applicable thereto to (but not including) the last day of such
Interest Period at the Eurodollar Rate determined as applicable to such
Eurodollar Advance. No Interest Period may end after the Facility Termination
Date.

          2.9 Facility Fee; Utilization Fee; Adjustments in Aggregate
Commitment.

          (a) Facility Fee. The Borrower agrees to pay to the Administrative
Agent for the account of each Lender a facility fee at a rate per annum equal to
the Applicable Facility Fee Rate in effect from time to time on such Lender's
Commitment (determined without giving effect to any usage of the Commitments),
whether used or unused, from the date hereof until the date on which this
Agreement is terminated in full and all of the Obligations hereunder have been
paid in full pursuant to Section 2.2. Such facility fees shall be payable in
arrears on the last Business Day of each March, June, September and December, on
the Facility Termination Date, on the date of the reduction of all or any part
of the Aggregate Commitment pursuant to Section 2.9(c) (solely with respect to
such reduced amount) and on the date on which this Agreement is terminated in
full and all of the Obligations hereunder have been paid in full pursuant to
Section 2.2. Facility fees shall be calculated for actual days elapsed on the
basis of a 360-day year.

          (b) Utilization Fee. For each day from and after the date hereof on
which the Combined Utilized Amount exceeds fifty percent (50%) of the Combined
Commitment, the Borrower agrees to pay to the Administrative Agent, for the
ratable account of each Lender, a utilization fee at a rate per annum equal to
the Applicable Utilization Fee Rate in effect from time to time on the sum of
all Syndicated Loans, payable from the date hereof until the date on which this
Agreement is terminated in full and all of the Obligations hereunder have been
paid in full pursuant to Section 2.2. Such utilization fees shall be payable in
arrears on the last Business Day of each March, June, September and December, on
the Facility Termination Date, on the date of the reduction of all or any part
of the Aggregate Commitment pursuant to Section 2.9(c) and on the date on which
this Agreement is terminated in full and all of the Obligations hereunder have
been paid in full pursuant to Section 2.2. Utilization fees shall be calculated
for actual days elapsed on the basis of a 360-day year.

                                       19
<PAGE>
          (c) Reductions in Aggregate Commitment. The Borrower may permanently
reduce the Aggregate Commitment in whole or in part ratably among the Lenders in
a minimum amount of $15,000,000 and integral multiples of $2,500,000 in excess
thereof, upon at least two Business Days' written notice to the Administrative
Agent, which notice shall specify the amount of any such reduction; provided,
however, that the amount of the Aggregate Commitment may not be reduced below
the aggregate principal amount of the outstanding Syndicated Advances.

          (d) Increase of Aggregate Commitment. At any time the Borrower may, on
the terms set forth below, request that the Aggregate Commitment hereunder be
increased; provided, that (i) the Aggregate Commitment hereunder at no time
shall exceed $550,000,000, (ii) the Combined Commitment at no time shall exceed
$1,100,000,000, (iii) each such request shall be in a minimum amount of at least
$10,000,000 and in increments of $5,000,000 in excess thereof, (iv) an increase
in the Aggregate Commitment hereunder may only be made at a time when no Default
or Unmatured Default shall have occurred and be continuing, (v) each Lender
shall be offered a pro rata share of any requested increase prior to the
Borrower, the Administrative Agent and the Syndication Agents inviting any
additional financial institutions to become a Lender hereunder, and (vi) no
Lender's Commitment shall be increased under this Section 2.9(d) without its
consent. In the event of such a requested increase in the Aggregate Commitment,
any financial institution which the Borrower, the Administrative Agent and the
Syndication Agents invite to become a Lender or to increase its Commitment may
set the amount of its Commitment at a level agreed to by the Borrower, the
Administrative Agent and the Syndication Agents. In the event that the Borrower
and one or more of the Lenders (or other financial institutions) shall agree
upon such an increase in the Aggregate Commitment (i) the Borrower, the
Administrative Agent and each Lender or other financial institution increasing
its Commitment or extending a new Commitment shall enter into an amendment to
this Agreement setting forth the amounts of the Commitments, as so increased,
providing that the financial institutions extending new Commitments shall be
Lenders for all purposes under this Agreement, and setting forth such additional
provisions as the Administrative Agent shall consider reasonably appropriate and
(ii) the Borrower shall furnish, if requested, a new Syndicated Note to each
financial institution that is extending a new Commitment or increasing its
Commitment. No such amendment shall require the approval or consent of any
Lender whose Commitment is not being increased. Upon the execution and delivery
of such amendment as provided above, and upon satisfaction of such other
conditions as the Administrative Agent may reasonably specify upon the request
of the financial institutions that are extending new Commitments (including,
without limitation, the Administrative Agent administering the reallocation of
any outstanding Syndicated Loans ratably among the Lenders after giving effect
to each such increase in the Aggregate Commitment, and the delivery of
certificates, evidence of corporate authority and legal opinions on behalf of
the Borrower), this Agreement shall be deemed to be amended accordingly.

          2.10 Rates Applicable After Default.

          Notwithstanding anything to the contrary contained in Section 2.8,
during the continuance of a Default or Unmatured Default no Syndicated Advance
may be made as, converted into or continued past the end of the applicable
Interest Period as a Eurodollar Advance. During the continuance of a Default
upon notice given to the Borrower by the

                                       20
<PAGE>
Administrative Agent, each Syndicated Advance shall bear interest until paid in
full at a rate per annum equal to the then-applicable rate of interest, as the
case may be, plus two percent (2.0%) per annum.

          2.11 Method of Payment.

          All payments of the Obligations hereunder shall be made, without
setoff, recoupment, deduction, or counterclaim, in immediately available funds
to the Administrative Agent at the Administrative Agent's address specified
pursuant to Article XIII, or at any other Lending Installation of the
Administrative Agent specified in writing by the Administrative Agent to the
Borrower, by 1:00 p.m. (New York time) on the date when due and shall be
remitted by the Administrative Agent to the Lenders according to their
respective interests therein. Each payment delivered to the Administrative Agent
for the account of any Lender shall be delivered promptly by the Administrative
Agent to such Lender in the same type of funds that the Administrative Agent
received at its address specified pursuant to Article XIII or at any Lending
Installation specified in a notice received by the Administrative Agent from
such Lender. The Administrative Agent is hereby authorized, but is not
obligated, to charge the accounts of the Borrower maintained with Bank of
America into which proceeds of Syndicated Advances are remitted pursuant to
Section 2.6 for each payment of interest and fees as it becomes due hereunder,
for each payment of principal, in accordance with the applicable Prepayment
Notice or when otherwise due and payable in accordance with the terms hereof.

          2.12 Evidence of Debt (Optional Syndicated Notes); Telephonic Notices.

          (a) Evidence of Debt (Optional Syndicated Notes).

               (i) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Syndicated Loan made by such Lender from time to
time, including the amounts of principal and interest payable and paid to such
Lender from time to time hereunder.

               (ii) The Administrative Agent shall also maintain accounts in
which it will record (a) the amount of each Syndicated Loan made hereunder, and,
to the extent applicable, the Type thereof and the interest period with respect
thereto, (b) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder and (c) the
amount of any sum received by the Administrative Agent hereunder from the
Borrower and each Lender's share thereof.

               (iii) The entries in the accounts maintained pursuant to clauses
(i) and (ii) above shall be prima facie evidence of the existence and amounts of
the Obligations therein recorded; provided, however, that the failure of the
Administrative Agent or any Lender to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Obligations in accordance with their terms. In the event of a conflict
between the accounts maintained by the Administrative Agent and the accounts
maintained by a Lender, the accounts maintained by the Administrative Agent
shall control in the absence of manifest error.

                                       21
<PAGE>
               (iv) Any Lender may request that its Syndicated Loans be
evidenced by one or more Syndicated Notes. In such event, the Borrower shall
execute and deliver to such Lender the applicable Syndicated Note or Syndicated
Notes payable to the order of such Lender. Thereafter, the Syndicated Loans
evidenced by any such Syndicated Note and interest thereon shall at all times
(including after any assignment pursuant to Section 12.3) be represented by one
or more Syndicated Notes payable to the order of the payee named therein or any
assignee pursuant to Section 12.3, except to the extent that any such Lender or
assignee subsequently returns any such Syndicated Note for cancellation and
requests that such Syndicated Loans once again be evidenced as described in
clauses (i) and (ii) above.

          (b) Telephonic Notices. The Borrower hereby authorizes the Lenders and
the Administrative Agent to extend, convert or continue Syndicated Advances and
effect selections of Types of Syndicated Advances based on telephonic notices
made by any person or persons the Administrative Agent in good faith believes to
be acting on behalf of the Borrower. The Borrower agrees to deliver promptly to
the Administrative Agent a written confirmation, if such confirmation is
requested by the Administrative Agent or any Lender, of each telephonic notice
signed by an Authorized Officer. If the written confirmation differs in any
material respect from the action taken by the Administrative Agent and the
Lenders, the records of the Administrative Agent of the relevant telephonic
notice shall govern absent manifest error.

          2.13 Notification of Syndicated Advances, Interest Rates, Prepayments
and Commitment Reductions.

          Promptly after receipt thereof, the Administrative Agent will notify
each Lender of the contents of each Aggregate Commitment reduction notice,
Syndicated Advance Borrowing Notice, Conversion/Continuation Notice and
Prepayment Notice received by it hereunder. The Administrative Agent will notify
each Lender of the interest rate applicable to each Eurodollar Advance promptly
upon determination of such interest rate and will give each Lender prompt notice
of each change in the Alternate Base Rate.

          2.14 Lending Installations.

          Each Lender may book its Syndicated Loans at any one or more Lending
Installations selected by such Lender and may change any such Lending
Installation from time to time. All terms of this Agreement shall apply to any
such Lending Installation and any Syndicated Notes requested by such Lender
shall be deemed held by such Lender for the benefit of such Lending
Installation. Each Lender may, by written or telex notice to the Administrative
Agent and the Borrower, designate a Lending Installation through which
Syndicated Loans will be made by it and for whose account Syndicated Loan
payments are to be made.

          2.15 Non-Receipt of Funds by the Administrative Agent.

          Unless the Borrower or a Lender, as the case may be, notifies the
Administrative Agent prior to the date on which it is scheduled to make payment
to the Administrative Agent of (a) in the case of a Lender, the proceeds of a
Syndicated Loan or (b) in the case of the Borrower, a payment of principal,
interest or fees to the Administrative Agent for the account of the Lenders,
that it does not intend to make such payment, the Administrative Agent may
assume

                                       22
<PAGE>
that such payment has been made. The Administrative Agent may, but shall not be
obligated to, make the amount of such payment available to the intended
recipient in reliance upon such assumption. If such Lender or the Borrower, as
the case may be, has not in fact made such payment to the Administrative Agent,
the recipient of such payment shall, on demand by the Administrative Agent,
repay to the Administrative Agent the amount so made available together with
interest thereon in respect of each day during the period commencing on the date
such amount was so made available by the Administrative Agent until the date the
Administrative Agent recovers such amount at a rate per annum equal to (a) in
the case of repayment by a Lender, the Federal Funds Effective Rate for such day
or (b) in the case of repayment by the Borrower, the interest rate applicable to
the relevant Syndicated Loan.

          2.16 Withholding Tax Exemption.

          At least five Business Days prior to the first date on which interest
or fees are payable hereunder for the account of any Lender, each Lender that is
not incorporated under the laws of the United States of America, or a state
thereof, agrees that it will deliver to each of the Borrower and the
Administrative Agent two duly completed copies of United States Internal Revenue
Service Form W-8BEN or W-8ECI, or successor applicable form, certifying in
either case that such Lender is entitled to receive payments under this
Agreement and the Syndicated Notes (if requested) without deduction or
withholding of any United States federal income taxes. Each Lender which so
delivers a Form W-8BEN or W-8ECI, or successor applicable form, further
undertakes to deliver to each of the Borrower and the Administrative Agent two
additional copies of such form (or any successor form or related form as may
from time to time be required under applicable law) on or before the date that
such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent forms so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Administrative Agent, in each case certifying
that such Lender is entitled to receive payments under this Agreement and the
Syndicated Notes (if requested) without deduction or withholding of any United
States federal income taxes, unless an event (including without limitation any
change in treaty, law or regulation) has occurred prior to the date on which any
such delivery would otherwise be required which renders all such forms
inapplicable or which would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender advises the Borrower
and the Administrative Agent that it is not capable of receiving payments
without any deduction or withholding of United States federal income tax.

          2.17 Termination.

          All unpaid Obligations shall be paid in full by the Borrower on the
Facility Termination Date; provided, however, that nothing in this Section 2.17
shall be construed as limiting or modifying the obligation of the Borrower to
repay any or all of the outstanding Obligations at any earlier time in
accordance with the terms of this Agreement.

          2.18 Pricing.

          The Eurodollar Applicable Margin, the Applicable Facility Fee Rate and
the Applicable Utilization Fee Rate for any period shall be determined on the
basis of the publicly

                                       23
<PAGE>
announced ratings ("Credit Ratings") by Moody's and S&P on the Borrower's Rated
Debt during such period, in each case in accordance with the table set forth
below, to change when and as such Credit Ratings change. For purposes of
determining the Applicable Margin, the Applicable Facility Fee Rate and the
Applicable Utilization Fee Rate with respect to any period:

               (i) Any change in the Credit Rating shall be deemed to become
effective on the date of public announcement thereof and shall remain in effect
until the date of public announcement that such Credit Rating shall no longer be
in effect. If any change in Credit Rating occurs during an Interest Period, the
new Eurodollar Applicable Margin, Applicable Facility Fee Rate and Applicable
Utilization Fee Rate shall become effective from the date of the public
announcement.

               (ii) If, during any period, either Moody's or S&P shall not have
a publicly-announced Credit Rating with respect to the Borrower's Rated Debt,
the Credit Rating announced by the other rating agency with respect thereto
shall be used.

               (iii) Except as provided below, in the event that the Credit
Ratings publicly announced by Moody's and S&P with respect to the Borrower's
Rated Debt appear in more than one column of the table, the Eurodollar
Applicable Margin, the Applicable Facility Fee Rate and the Applicable
Utilization Fee Rate will be based on the column which includes the highest
rating; provided, however, that if there exists a differential of two or more
levels between the Credit Rating publicly announced by Moody's and the Credit
Rating publicly announced by S & P, then the Credit Rating which is one level
below the higher announced Credit Rating will determine the Eurodollar
Applicable Margin, the Applicable Facility Fee Rate and the Applicable
Utilization Fee Rate.

               (iv) If, during any period, neither Moody's nor S&P shall have
publicly announced a Credit Rating with respect to the Borrower's Rated Debt,
the Eurodollar Applicable Margin, the Applicable Facility Fee Rate and the
Applicable Utilization Fee Rate shall be the margins set forth under the column
entitled "No Other Pricing Level Applies."

                         EURODOLLAR APPLICABLE MARGINS
                         APPLICABLE FACILITY FEE RATES
                      AND APPLICABLE UTILIZATION FEE RATES
                               (IN BASIS POINTS)

<TABLE>
<CAPTION>
                                                             AT LEAST
                  AT LEAST A+   AT LEAST A    AT LEAST A-    BBB+ FROM    AT LEAST BBB   NO OTHER
                  FROM S&P OR   FROM S&P OR   FROM S&P OR   S&P OR BAA1    FROM S&P OR    PRICING
CREDIT              A1 FROM       A2 FROM       A3 FROM         FROM        BAA2 FROM      LEVEL
RATINGS             MOODY'S       MOODY'S       MOODY'S       MOODY'S        MOODY'S      APPLIES
---------------   -----------   -----------   -----------   -----------   ------------   --------
<S>               <C>           <C>           <C>           <C>           <C>            <C>
Eurodollar
Applicable
Margin                13.5          17.5          29.0          40.0          61.5         84.0
</TABLE>

                                       24
<PAGE>
<TABLE>
<CAPTION>
                                                              AT LEAST
                  AT LEAST A+   AT LEAST A    AT LEAST A-    BBB+ FROM    AT LEAST BBB   NO OTHER
                  FROM S&P OR   FROM S&P OR   FROM S&P OR   S&P OR BAA1    FROM S&P OR    PRICING
CREDIT              A1 FROM       A2 FROM       A3 FROM         FROM        BAA2 FROM      LEVEL
RATINGS             MOODY'S       MOODY'S       MOODY'S       MOODY'S        MOODY'S      APPLIES
---------------   -----------   -----------   -----------   -----------   ------------   --------
<S>               <C>           <C>           <C>           <C>           <C>            <C>
Applicable
Facility Fee           6.5           7.5           8.5          10.0          13.5         16.0

Applicable
Utilization Fee
Rate                  10.0          10.0          10.0          10.0          10.0         10.0
</TABLE>

                                  ARTICLE III
                             CHANGE IN CIRCUMSTANCES

          3.1 Yield Protection.

          If any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law), or any
interpretation thereof, or the compliance by any Lender therewith,

          (a) subjects any Lender or any applicable Lending Installation to any
tax, duty, charge or withholding on or from payments due from the Borrower
(excluding federal taxation of the overall net income of any Lender, franchise
taxes and branch profit taxes), or changes the basis of taxation of payments to
any Lender or any applicable Lending Installation in respect of its Syndicated
Loans or other amounts due it hereunder, or

          (b) imposes or increases or deems applicable any reserve, assessment,
insurance charge, special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by, any Lender or any
applicable Lending Installation (other than reserves and assessments taken into
account in determining the interest rate applicable to Eurodollar Advances), or

          (c) imposes any other condition, in each case, the result of which is
to increase the cost to any Lender or any applicable Lending Installation of
making, funding or maintaining Syndicated Loans or reduces any amount receivable
by any Lender or any applicable Lending Installation in connection with
Syndicated Loans, or requires any Lender or any applicable Lending Installation
to make any payment calculated by reference to the amount of Syndicated Loans
held, or interest received by it, by an amount deemed material by such Lender,

then, within 15 days of demand by such Lender, the Borrower shall pay such
Lender that portion of such increased expense incurred or reduction in an amount
received which such Lender reasonably determines is attributable to making,
funding and maintaining its Syndicated Loans and its Commitment.

          3.2 Changes in Capital Adequacy Regulations.

          If a Lender determines that the amount of capital required or expected
to be maintained by such Lender, any Lending Installation of such Lender or any
corporation

                                       25
<PAGE>
controlling such Lender is increased as a result of a Change (as defined below
in this Section 3.2), then, within 15 days of demand by such Lender, the
Borrower shall pay such Lender the amount necessary to compensate for any
shortfall in the rate of return on the portion of such increased capital which
such Lender reasonably determines is attributable to this Agreement, its
Syndicated Loans or its obligation to make Syndicated Loans hereunder (after
taking into account such Lender's or such controlling corporation's policies as
to capital adequacy). "Change" means (a) any change after the date of this
Agreement in the Risk-Based Capital Guidelines (as defined below in this Section
3.2) or (b) any adoption of or change in any other law, governmental or
quasi-governmental rule, regulation, policy, guideline, interpretation, or
directive (whether or not having the force of law) after the date of this
Agreement which affects the amount of capital required or expected to be
maintained by any Lender or any Lending Installation or any corporation
controlling any Lender. "Risk-Based Capital Guidelines" means (a) the risk-based
capital guidelines in effect in the United States on the date of this Agreement,
including transition rules, and (b) the corresponding capital regulations
promulgated by regulatory authorities outside the United States implementing the
July 1988 report of the Basle Committee on Banking Regulation and Supervisory
Practices Entitled "International Convergence of Capital Measurements and
Capital Standards," including transition rules, and any amendments to such
regulations adopted prior to the date of this Agreement. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent of any
circumstances that would cause the Borrower to pay additional amounts pursuant
to this Section 3.2, provided that, except as set forth in Section 3.5(b), the
failure to give such notice shall not affect the Borrower's obligation to pay
such additional amounts hereunder.

          3.3 Availability of Types of Syndicated Advances.

          If any Lender reasonably determines that maintenance of its Eurodollar
Loans at a suitable Lending Installation would violate any applicable law, rule,
regulation, or directive, whether or not having the force of law, or if the
Required Lenders reasonably determine that (a) deposits of a type and maturity
appropriate to match fund Eurodollar Advances are not available or (b) the
interest rate applicable to a Type of Syndicated Advance does not accurately
reflect the cost of making or maintaining such Syndicated Advance, then the
Administrative Agent shall suspend the availability of the affected Type of
Syndicated Advance.

          3.4 Funding Indemnification.

          If any payment of a Eurodollar Advance occurs on a date which is not
the last day of the applicable Interest Period, whether because of acceleration,
prepayment, conversion or otherwise, or a Eurodollar Advance is not made
(whether by borrowing, continuation or conversion) on the date specified by the
Borrower for any reason other than default by the Lenders, or an optional
prepayment, notice of which has been given in accordance with Section 2.5, is
not made on the date specified therefor in such notice, the Borrower will
indemnify each Lender for any loss or cost incurred by it resulting therefrom,
including, without limitation, any loss or cost in liquidating or employing
deposits acquired to fund or maintain the Eurodollar Advance.

                                       26
<PAGE>
          3.5 Mitigation; Lender Statements; Survival of Indemnity.

          (a) To the extent reasonably possible, each Lender shall designate an
alternate Lending Installation with respect to its Eurodollar Loans to reduce
any liability of the Borrower to such Lender under Sections 3.1 and 3.2 or to
avoid the unavailability of a Type of Syndicated Advance under Section 3.3, so
long as such designation is not disadvantageous to such Lender in its reasonable
determination. If the obligation of the Lenders to make Eurodollar Advances has
been suspended pursuant to Section 3.3 as a consequence of a determination by
any Lender that maintenance of its Eurodollar Loans at a suitable Lending
Installation would violate any applicable law or any Lender has demanded
compensation under Section 3.1 or 3.2, the Borrower may elect (i) subject to
Section 3.4, to prepay any outstanding Syndicated Advances to the extent
necessary to mitigate its liability under Section 3.1 or 3.2, or (ii) to require
the applicable Lender to assign its outstanding Syndicated Loans and Commitment
hereunder to another financial institution designated by the Borrower and
reasonably acceptable to the Administrative Agent. The obligation of a Lender to
assign its rights and obligations hereunder as contemplated by this Section
3.5(a) is subject to the requirements that (x) all amounts owing to that Lender
under the Loan Documents are paid in full upon the completion of such assignment
and (y) any assignment is effected in accordance with the terms of Section 12.3
and on terms otherwise satisfactory to that Lender (it being understood that the
Borrower or the replacement Lender shall pay the processing fee payable to the
Administrative Agent pursuant to Section 12.3.2 in connection with any such
assignment).

          (b) In determining the amounts payable under Sections 3.1, 3.2 or 3.4,
each Lender shall use its reasonable efforts to make its allocations and
computations, to the extent readily determinable, consistent with the
allocations and computations applied generally by such Lender to other customers
of similar size and credit quality and under similar circumstances. Each Lender
shall deliver a written statement of such Lender as to the amount due, if any,
under Section 3.1, 3.2 or 3.4. Such written statement shall set forth in
reasonable detail the calculations upon which such Lender determined such amount
and shall be final, conclusive and binding on the Borrower in the absence of
manifest error. Unless otherwise provided herein, the amount specified in the
written statement shall be payable not later than fifteen (15) days after
receipt by the Borrower of the written statement. The Borrower shall not be
liable for any amounts under Sections 3.1, 3.2 or 3.4 accruing more than 120
days prior to the receipt of a demand for payment therefor. The obligations of
the Borrower under Sections 3.1, 3.2 and 3.4 shall survive payment of the
Obligations and termination of this Agreement.

                                   ARTICLE IV
                              CONDITIONS PRECEDENT

          4.1 Effectiveness; Initial Syndicated Advance.

          This Agreement shall become effective and the Lenders shall be
obligated to make the initial Syndicated Advance only after the Administrative
Agent shall have received from the Borrower, with sufficient copies (other than
in the case of any requested Syndicated Notes) for each of the Lenders, each of
the following items in form and substance satisfactory to the Administrative
Agent:

                                       27
<PAGE>
          (a) a copy of the certificate of incorporation (or comparable
constitutive document) of the Borrower, together with all amendments thereto and
a certificate of good standing, certified by the appropriate governmental
officer of its jurisdiction of organization and by the Secretary, Assistant
Secretary, or other appropriate officer of the Borrower;

          (b) copies, certified by the Secretary, Assistant Secretary or other
appropriate officer of the Borrower of its by-laws (or any comparable
constitutive laws, rules or regulations) and of its board of directors'
resolutions (and resolutions of other bodies, if any are deemed necessary by
counsel for any Lender) authorizing the execution of the Loan Documents;

          (c) incumbency certificates, executed by the Secretary or Assistant
Secretary or other appropriate officer of the Borrower, which shall identify by
name and title and bear the signature of the officers of the Borrower authorized
to sign the Loan Documents and to make borrowings hereunder, as applicable, upon
which certificate the Administrative Agent and the Lenders shall be entitled to
rely until informed of any change in writing by the Borrower;

          (d) a certificate, signed by the Chief Financial Officer, stating that
on the date hereof no Default or Unmatured Default has occurred and is
continuing;

          (e) evidence of the payment of all fees required to be paid by the
Borrower pursuant to the Fee Letters;

          (f) opinions of (i) Ropes & Gray LLP, counsel to the Borrower, and
(ii) a Senior Vice President-Legal of the Borrower, substantially in the forms
attached as Exhibit B hereto;

          (g) evidence of delivery of the 5-Year Revolving Credit Agreement by
each of the parties thereto;

          (h) written money transfer instructions, in substantially the form of
Exhibit E hereto, addressed to the Administrative Agent and signed by an
Authorized Officer, together with such other related money transfer
authorizations as the Administrative Agent may have reasonably requested;

          (i) evidence of the termination of the Existing Credit Agreements and
repayment of in full of all obligations, indebtedness and liabilities
outstanding thereunder from the proceeds of the initial Syndicated Loans
hereunder and/or the initial "Syndicated Loans" under and as defined in the
5-Year Revolving Credit Agreement; and

          (j) such other documents as any Lender or its counsel may have
reasonably requested (including, without limitation, any Syndicated Notes
requested pursuant to Section 2.12(a)(iv)).

          4.2 Each Syndicated Advance.

          No Lender shall be required to make any Syndicated Loan hereunder
unless on the applicable Borrowing Date:

                                       28
<PAGE>
          (a) there exists no Default or Unmatured Default;

          (b) the representations and warranties contained in Article V are true
and correct as of such Borrowing Date (other than the representation and
warranty set forth in Section 5.5, which shall only be made by the Borrower as
of the date of this Agreement) except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct on and as of such earlier
date;

          (c) after giving effect to such Syndicated Loan and the other
Syndicated Loans being made as a part of such Syndicated Advance, the aggregate
outstanding principal amount of all Syndicated Advances does not exceed the
Aggregate Commitment; and

          (d) all legal matters incident to the making of such Syndicated
Advance shall be reasonably satisfactory to the Lenders and their counsel.

Each Syndicated Advance Borrowing Notice and each Conversion/Continuation Notice
with respect to a Syndicated Loan shall constitute a representation and warranty
by the Borrower that the conditions contained in Sections 4.2(a), (b) and (c)
have been satisfied.

                                   ARTICLE V
                         REPRESENTATIONS AND WARRANTIES

          In order to induce the Administrative Agent and the Lenders to enter
into this Agreement and to make the Syndicated Loans and the other financial
accommodations to the Borrower described herein, the Borrower represents and
warrants to the Administrative Agent and each Lender as follows as of the date
of this Agreement, the date of the initial extension of credit hereunder and
thereafter on each date as required by Section 4.2 that:

          5.1 Existence and Standing.

          Each of the Borrower and its Subsidiaries (other than Subsidiaries
which in the aggregate own, directly or indirectly, less than ten percent (10%)
of the total consolidated assets of the Borrower and its Subsidiaries) (i) is
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, (ii) is duly qualified to do business as a foreign
organization and is in good standing under the laws of each jurisdiction in
which it owns or leases real property or in which the nature of its business
requires it to be so qualified, except those jurisdictions where the failure to
be in good standing or to so qualify is not reasonably likely to have a Material
Adverse Effect, and (iii) has all requisite corporate or other organizational
power and authority to own, lease and operate its property and assets and to
conduct its business as presently conducted and as proposed to be conducted.

          5.2 Authorization and Validity.

          (a) The Borrower has the requisite corporate or other organizational
power and authority to execute, deliver and perform each of the Loan Documents
which have been or are to be executed by it.

                                       29
<PAGE>
          (b) The execution, delivery and performance, as the case may be, of
each of the Loan Documents executed by the Borrower, and the consummation of the
transactions contemplated thereby, have been duly approved by the board of
directors and, if necessary, the shareholders of the Borrower, and such
approvals have not been rescinded. No other corporate or other organizational
action or proceedings on the part of the Borrower is necessary to consummate
such transactions.

          (c) Each of the Loan Documents to which the Borrower is a party has
been duly executed or delivered, as the case may be, by it and constitutes its
legal, valid and binding obligation, enforceable against it in accordance with
its terms (except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditor's rights generally), is in
full force and effect and no material term or condition thereof has been
amended, modified or waived without the prior written consent of the Required
Lenders (or all of the Lenders if so required under Section 8.2), and the
Borrower has performed and complied with all the terms, provisions, agreements
and conditions set forth therein and required to be performed or complied with
by the Borrower and no unmatured default, default or breach of any covenant by
any such party exists thereunder.

          5.3 No Conflict; Government Consent.

          Neither the execution and delivery by the Borrower of the Loan
Documents, nor the consummation of the transactions therein contemplated, nor
compliance with the provisions thereof will violate any law, rule, regulation,
order, writ, judgment, injunction, decree or award binding on the Borrower or
the Borrower's articles of incorporation or by-laws (or any comparable
constitutive laws, rules or regulations) or the provisions of any material
indenture, instrument or material agreement to which the Borrower or any of its
Subsidiaries is a party or is subject, or by which it, or its Property, is
bound, or conflict with or constitute a default thereunder, or result in the
creation or imposition of any Lien in, of or on the Property of the Borrower or
a Subsidiary pursuant to the terms of any such material indenture, instrument or
agreement. No order, consent, approval, license, authorization or validation of,
or filing, recording or registration with, or exemption by, any Governmental
Authority is required to authorize, or is required in connection with the
execution, delivery and performance of, or the legality, validity, binding
effect or enforceability of, any of the Loan Documents, except (i) such as have
been made or obtained as set forth on Schedule 5.3 or (ii) such as set forth on
Schedule 5.3 hereto which have not been obtained or made and which are
immaterial.

          5.4 Financial Statements.

          The January 29, 2005 audited consolidated financial statements of the
Borrower and its Subsidiaries heretofore delivered to the Administrative Agent
and the Lenders were prepared in accordance with GAAP in effect on the date such
statements were prepared and fairly present in all material respects the
consolidated financial condition and operations of the Borrower and its
Subsidiaries at such date and the consolidated results of their operations for
the period then ended.

                                       30
<PAGE>
          5.5  Material Adverse Change.

          As of the date of this Agreement, since January 29, 2005 with respect
to the Borrower and its Subsidiaries, there has been no material adverse change
in the business, financial condition, operations, performance or Property of the
Borrower and its Subsidiaries on a consolidated basis.

          5.6  Taxes.

          The Borrower and its Subsidiaries have filed all United States federal
tax returns and all other tax returns which are required to be filed and have
paid all taxes due pursuant to said returns or pursuant to any assessment
received by the Borrower or any of its Subsidiaries, except such taxes, if any,
as are being contested in good faith, as to which adequate reserves have been
provided in accordance with GAAP and as to which no tax lien has been filed. The
United States income tax returns of the Borrower and its Subsidiaries have been
audited by the Internal Revenue Service, or the Internal Revenue Service has
allowed the Statute of Limitations for audit to expire, for fiscal years ended
January 29, 2000 and prior (provided that the year ending January 29, 2000
remains open only in respect of items from later years carried back to such
year). No tax liens have been filed and remain in effect with respect to the
Borrower and its Subsidiaries. No written claims of taxing authorities are
pending and being made, and no other claims are, to the knowledge of the
executive officers of the Borrower, pending against the Borrower or any of its
Subsidiaries, in each case (i) except claims which are being actively contested
by the Borrower or such Subsidiary in good faith and by appropriate proceedings
and with respect to which the Borrower or such Subsidiary has established such
reserves or made other appropriate provisions as shall be required in conformity
with GAAP; and (ii) which could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The charges, accruals and reserves
on the books of the Borrower and its Subsidiaries in respect of any taxes or
other governmental charges have been established in accordance with GAAP and, to
the knowledge of the executive officers of the Borrower, are adequate.

          5.7  Litigation and Contingent Obligations.

          Except as set forth on Schedule 5.7 hereto, there is no litigation,
arbitration, governmental investigation, proceeding or inquiry pending or, to
the knowledge of any of their executive officers, threatened against or
affecting the Borrower or any of its Subsidiaries which could reasonably be
expected to result in a Material Adverse Effect. Other than any liability
incident to such litigation, arbitration or proceedings, the Borrower and its
Subsidiaries have no material contingent obligations not provided for or
disclosed in the financial statements referred to in Section 5.4.

          5.8  Subsidiaries.

          Schedule 5.8 hereto contains an accurate list of all of the presently
existing Subsidiaries of the Borrower, setting forth their respective
jurisdictions of organization and the percentage of their respective equity held
by the Borrower or other Subsidiaries. All of the issued and outstanding shares
of capital stock of such Subsidiaries have been duly authorized and issued and
are fully paid and non-assessable.

                                       31
<PAGE>
          5.9  ERISA.

          The Unfunded Liabilities of all Single Employer Plans do not in the
aggregate exceed $40,000,000. Neither the Borrower nor any other member of the
Controlled Group has failed to make any required installment or any other
required payment under Section 412 of the Code on or before the due date for
such installment or other payment with respect to a Single Employer Plan, or has
failed to make a required contribution or payment to a Multiemployer Plan.
Neither the Borrower nor any other member of the Controlled Group has any
potential liability, whether direct or indirect, contingent or otherwise, under
Section 4069, 4204 or 4212(c) of ERISA. Each Plan complies in all material
respects with all applicable requirements of law and regulations and has been
administered in all material respects in accordance with its terms. No
Reportable Event has occurred with respect to any Plan, neither the Borrower nor
any other member of the Controlled Group has withdrawn from any Plan or
initiated steps to do so, no steps have been taken to reorganize or terminate
any Plan, no event has occurred which imposes an obligation on the Borrower or
any member of the Controlled Group under Section 4041 of ERISA to provide
affected parties written notice of intent to terminate a Plan in a distress
termination described in Section 4041(c) of ERISA; no event or condition has
occurred which is reasonably likely to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Plan, in any such case where such event could reasonably be expected to have a
Material Adverse Effect.

          5.10 Accuracy of Information.

          No written information, certificate, exhibit or report furnished by
the Borrower or any of its Subsidiaries to the Administrative Agent or the
Lenders (including the Loan Documents and any representation or warranty
therein) contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein not
misleading in light of the circumstances under which they were made.

          5.11 Regulations T, U and X.

          Margin stock (as defined in Regulation U) constitutes less than 25% of
those assets of the Borrower and its Subsidiaries which are subject to any
limitation on sale, pledge, or other restriction hereunder. Neither the Borrower
nor any of its Subsidiaries is engaged in the business of purchasing or carrying
margin stock.

          5.12 Material Agreements.

          Neither the Borrower nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any agreement to which it is a party, which default
could reasonably be expected to have a Material Adverse Effect or (ii) any
agreement or instrument evidencing or governing Material Indebtedness.

          5.13 Compliance With Laws.

          The Borrower and its Subsidiaries have complied with all applicable
statutes, rules, regulations, orders and restrictions of any Governmental
Authority having jurisdiction over

                                       32
<PAGE>
the conduct of their respective businesses or the ownership of their respective
Property except where the failure to so comply could not reasonably be expected
to result in a Material Adverse Effect. Except as set forth in Schedule 5.13
hereto, neither the Borrower nor any Subsidiary has received any notice to the
effect that its operations are not in material compliance with any
Environmental, Health or Safety Requirements of Law or the subject of any
federal or state investigation evaluating whether any remedial action is needed
to respond to a release of any petroleum, toxic or hazardous waste or substance
into the environment, which non-compliance or remedial action could reasonably
be expected to have a Material Adverse Effect.

          5.14 Ownership of Property.

          Except as set forth on Schedule 5.14 hereto, on the date of this
Agreement, the Borrower and its Subsidiaries have good title, free of all Liens
other than those permitted by Section 6.15, to all of the Property and assets
reflected in the financial statements referred to in Section 5.4 as owned by it.
The Borrower and each of its Subsidiaries owns (or is licensed to use) all
Intellectual Property which is necessary or appropriate in any material respect
for the conduct of its respective business as conducted on the date of this
Agreement, without any material conflict with the rights of any other Person.
Neither the Borrower nor any Subsidiary is aware of (i) any material existing or
threatened infringement or misappropriation of any of its Intellectual Property
by any third party or (ii) any material third party claim that any aspect of the
business of the Borrower or any Subsidiary (as conducted on the date of this
Agreement) infringes or will infringe upon, any Intellectual Property or other
property right of any other Person, in each case that could reasonably be
expected to have a Material Adverse Effect.

          5.15 Labor Matters.

          There are no labor controversies pending or, to the best of the
Borrower's knowledge, threatened against the Borrower or any Subsidiary, which,
if adversely determined, could reasonably be expected to have a Material Adverse
Effect. The Borrower and each of its Subsidiaries are in substantial compliance
in all material respects with the Fair Labor Standards Act, as amended.

          5.16 Investment Company Act.

          Neither the Borrower nor any Subsidiary thereof is an "investment
company" or a company "controlled" by an "investment company", within the
meaning of the Investment Company Act of 1940, as amended.

          5.17 Public Utility Holding Company Act.

          Neither the Borrower nor any Subsidiary is a "holding company" or a
"subsidiary company" of a "holding company", or an "affiliate" of a "holding
company" or of a "subsidiary company" of a "holding company", within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

                                       33
<PAGE>
          5.18 Insurance.

          The insurance policies and programs in effect with respect to the
Property, liabilities and business of the Borrower and its Subsidiaries are
maintained with financially sound and reputable insurance companies and reflect
coverage that is consistent with sound business practice.

                                   ARTICLE VI
                                    COVENANTS

          6. Covenants. During the term of this Agreement, unless the Required
Lenders shall otherwise consent in writing:

          6.1  Financial Reporting.

          The Borrower will maintain, for itself and its Subsidiaries, a system
of accounting established and administered in accordance with GAAP, and, subject
to Section 13.1, will furnish or cause to be furnished to the Administrative
Agent with sufficient copies for each of the Lenders:

          (a) As soon as practicable but in any event within 105 days after the
close of each of its fiscal years, an audit report (which audit report shall be
unqualified or shall be otherwise reasonably acceptable to the Required Lenders;
provided that such report may set forth qualifications to the extent such
qualifications pertain solely to changes in GAAP from those applied during
earlier accounting periods, the implementation of which changes (with the
concurrence of such accountants) is reflected in the financial statements
accompanying such report), certified by independent certified public accountants
who are reasonably acceptable to the Required Lenders, prepared in accordance
with GAAP on a consolidated basis for itself and its Subsidiaries, including
balance sheets as of the end of such period and the related statements of
income, and consolidated stockholder's equity and cash flows, accompanied by a
certificate of said accountants that, in the course of their examination
necessary for their certification of the foregoing, they have obtained no
knowledge of any Default or Unmatured Default, or if, in the opinion of such
accountants, any Default or Unmatured Default shall exist, stating the nature
and status thereof.

          (b) As soon as practicable but in any event within 60 days after the
close of each of the first three quarterly periods of each of its fiscal years,
for itself and its Subsidiaries on a consolidated basis, balance sheets as of
the end of such period and the related statements of income, and consolidated
stockholder's equity and cash flows for the period from the beginning of such
fiscal year to the end of such quarter, all certified by its Chief Financial
Officer, Controller or Treasurer as to fairness of presentation and prepared,
with respect to such consolidated statements, in accordance with GAAP (subject
to normal year end adjustments).

          (c) Together with the financial statements required hereunder, a
compliance certificate in substantially the form of Exhibit C hereto signed by
its Chief Financial Officer, Controller or Treasurer showing the calculations
necessary to determine compliance with Section 6.16 as of the last day of the
fiscal period covered by such financial statements, and stating that

                                       34
<PAGE>
no Default or Unmatured Default exists, or if any Default or Unmatured Default
exists, stating the nature and status thereof and the Borrower's plans with
respect thereto.

          (d) As soon as possible and in any event within 10 days after an
executive officer of the Borrower knows that any Reportable Event or any other
event described in Section 5.9 has occurred with respect to any Plan, a
statement, signed by the Chief Financial Officer or Treasurer of the Borrower,
describing said Reportable Event or other event and the action which the
Borrower proposes to take with respect thereto.

          (e) As soon as possible and in any event within 10 days after receipt
by the Borrower or any Subsidiary, a copy of (a) any notice or claim to the
effect that the Borrower or any of its Subsidiaries is or may be liable to any
Person as a result of the release by the Borrower, any of its Subsidiaries, or
any other Person of any petroleum, toxic or hazardous waste or substance into
the environment, and (b) any notice alleging any violation of any Environmental,
Health or Safety Requirements of Law by the Borrower or any of its Subsidiaries,
which, in either case, could reasonably be expected to have a Material Adverse
Effect or subject the Borrower and its Subsidiaries to liability, individually
or in the aggregate, in excess of $30,000,000 (in each case, determined after
giving effect to claims which the Borrower has demonstrated to the reasonable
satisfaction of the Administrative Agent are covered by applicable third-party
insurance policies (other than retro-premium insurance or other policies with
similar self-insurance attributes) of the Borrower or any of its Subsidiaries
unless the insurers of such claims have disclaimed coverage or reserved the
right to disclaim coverage).

          (f) Promptly upon the furnishing thereof to the shareholders of the
Borrower, copies of all financial statements, reports and proxy statements so
furnished.

          (g) Promptly upon the filing thereof, copies of all final registration
statements, proxy statements and annual, quarterly, monthly or other reports
which the Borrower or any of its Subsidiaries files with the Securities and
Exchange Commission (provided the Borrower shall not be obligated to provide
copies of routine reports which are required to be filed concerning the
management of employee benefit plans, including, without limitation, stock
purchases or the exercise of stock options made under any such employee benefit
plan).

          (h) Except to the extent that such items are redundant with reports or
information otherwise provided pursuant to this Section 6.1, promptly upon the
furnishing thereof to the holders thereof, copies of all financial statements
and reports furnished to the holders of (or trustee or other representative for
the holders of) any Indebtedness for money borrowed of the Borrower or its
Subsidiaries.

          (i) Such other information (including non-financial information) as
any Lender through the Administrative Agent may from time to time reasonably
request.

          6.2  Use of Proceeds.

          The Borrower will, and will cause each of its Subsidiaries to, use the
proceeds of the Syndicated Advances to repay outstanding loans and advances made
under the Existing Credit Agreements, to repay Syndicated Advances hereunder and
"Syndicated Advances", "Reimbursement Obligations" and the "Swing Line Loans"
under (and as such terms are defined

                                       35
<PAGE>
in) the 5-Year Revolving Credit Agreement or for general corporate or working
capital purposes (including, without limitation, capital expenditures, purchases
by the Borrower of its capital stock, Acquisitions permitted under Section 6.18
and support of commercial paper). The Borrower will not, nor will it permit any
Subsidiary, to use proceeds of the Syndicated Advances other than as
contemplated in this Section 6.2.

          6.3  Other Notices.

          Promptly after the Borrower or relevant subsidiary becomes aware of
such occurrence, the Borrower will, and will cause each of its Subsidiaries to,
give notice in writing to the Lenders of the occurrence of: (a) any Default or
Unmatured Default; and (b) any other development, financial or otherwise, which
could reasonably be expected to have a Material Adverse Effect; provided, no
separate notice of the occurrence of any such development under this clause (b)
needs to be given to the extent such item has been disclosed in the Borrower's
annual, quarterly or other reports (i.e., 10-K, 10-Q or 8-K) filed with the
Securities and Exchange Commission and delivered pursuant to Section 6.1(g) or
in a press release issued by the Borrower or one of its Subsidiaries. Any such
notice shall state the nature and status of the occurrence and any and all
actions taken with respect thereto.

          6.4  Conduct of Business.

          The Borrower will, and will cause each of its Subsidiaries to, carry
on and conduct its business in substantially the same manner and in
substantially the same or complementary fields of enterprise as it is presently
conducted and to do all things necessary to remain duly organized, validly
existing and in good standing as a domestic organization in its jurisdiction of
organization and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted except for transactions
permitted under Sections 6.10, 6.11, 6.13, or 6.18 or where the failure to
maintain such authority could not reasonably be expected to have a Material
Adverse Effect.

          6.5  Taxes.

          The Borrower will, and will cause each of its Subsidiaries to, pay
when due all material taxes, assessments and governmental charges and levies
upon it or its income, profits or Property, except those which are being
contested in good faith by appropriate proceedings and with respect to which
adequate reserves have been set aside in accordance with GAAP and in connection
with which no tax Lien has been filed.

          6.6  Insurance.

          The Borrower will, and will cause each of its Subsidiaries to,
maintain with financially sound and reputable insurance companies insurance with
respect to all their Property, liabilities and business in such amounts and
covering such risks as is consistent with sound business practice, and the
Borrower will furnish to the Administrative Agent upon request of any Lender
full information as to the insurance carried.

                                       36
<PAGE>
          6.7  Compliance with Laws.

          The Borrower will, and will cause each of its Subsidiaries to, comply
in all material respects with all laws (including, without limitation, all
environmental laws), rules, regulations, orders, writs, judgments, injunctions,
decrees or awards to which it may be subject, except where the failure to so
comply could not reasonably be expected to have a Material Adverse Effect.

          6.8  Maintenance of Properties.

          The Borrower will, and will cause each of its Subsidiaries to, do all
things necessary to maintain, preserve, protect and keep its material Property
in good repair, working order and condition, ordinary wear and tear excepted,
and make all necessary and proper repairs, renewals and replacements so that its
business carried on in connection therewith may be properly conducted at all
times. The Borrower will, and will cause each Subsidiary to, do all things
necessary to maintain, preserve and protect all of its material Intellectual
Property including, without limitation, perform each of its respective
obligations under any and all license agreements and other contracts and
agreements evidencing or relating to Intellectual Property, using the same in
interstate or foreign commerce, properly marking such Intellectual Property and
maintaining all necessary and appropriate governmental registrations (both
domestic and foreign) except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

          6.9  Inspection.

          The Borrower will, and will cause each of its Subsidiaries to, permit
the Administrative Agent and any or each Lender, by its respective
representatives and agents, to inspect any of the Property, corporate books and
financial records of the Borrower and each of its Subsidiaries, to examine and
make copies of the books of accounts and other financial records of the Borrower
and each of its Subsidiaries, and to discuss the affairs, finances and accounts
of the Borrower and each of its Subsidiaries with, and to be advised as to the
same by, their respective officers at such reasonable times and intervals as the
Administrative Agent or such Lender may designate. Prior to the occurrence of a
Default or Unmatured Default, the Lenders will use reasonable efforts to
coordinate their inspection through the Administrative Agent so as to minimize
any disruption to the business of the Borrower and its Subsidiaries.

          6.10 Merger.

          The Borrower will not, nor will it permit any of its Subsidiaries to,
merge, amalgamate or consolidate with or into any other Person, except that a
Wholly-Owned Subsidiary may merge with the Borrower or a Wholly-Owned Subsidiary
of the Borrower, subject to the further condition that if the Borrower is a
party to any such permitted merger, the Borrower shall be the surviving
corporation. Nothing herein shall prohibit a transaction otherwise in compliance
with Section 6.11, 6.13, or 6.18.

                                       37
<PAGE>
          6.11 Sale of Assets.

          Except as disclosed in Schedule 6.11, the Borrower will not, nor will
it permit any of its Subsidiaries to, lease, sell or otherwise dispose of its
Property, to any other Person except for:

          (a) Sales of inventory in the ordinary course of business (which in
the business of the Borrower and its Subsidiaries may include sales of larger
quantities of inventory other than to consumers, provided such sales are
consistent with the Borrower's and its Subsidiaries' past practices and which
are not extraordinary transactions under GAAP);

          (b) The sale, discount, or transfer of delinquent accounts receivable
in the ordinary course of business for purposes of collection only;

          (c) Occasional sales, leases or other dispositions of immaterial
assets for cash consideration and for not less than fair market value;

          (d) Sales, leases or other dispositions of assets that are obsolete or
have negligible fair market value;

          (e) Sales of equipment for cash consideration and for fair market
value (but if replacement equipment is necessary for the proper operation of the
business of the seller, the seller must promptly replace the sold equipment);

          (f) Leases, sales or other dispositions of its Property to the
Borrower or a Wholly-Owned Subsidiary of the Borrower;

          (g) Other leases, sales or other dispositions of its Property subject
to the requirement that the net proceeds of each such lease, sale or other
disposition of Property are reinvested in the business of the Borrower and the
Subsidiaries as conducted in accordance with the requirements of Section 6.4 or
are used for other general corporate purposes; and

          (h) Sales of assets in the ordinary course of business and consistent
with past practices for not less than fair market value, including store
closings.

Notwithstanding anything herein to the contrary, the aggregate amount of
Property of the Borrower and its Subsidiaries leased, sold or disposed of
pursuant to clauses (g) and (h) (excluding any equipment which has been promptly
replaced) during the twelve-month period ending with the month in which any such
lease, sale or other disposition occurs shall not: (1) in any single transaction
or series of related transactions constitute a Substantial Portion of the
Property of the Borrower and its Subsidiaries under clause (b) of the definition
of Substantial Portion or (2) in the aggregate constitute a Substantial Portion
of the Property of the Borrower and its Subsidiaries under clause (a) of the
definition of Substantial Portion.

          6.12 Affiliates.

          Except in connection with transactions otherwise permitted pursuant to
the terms of this Article VI, the Borrower will not, nor will it permit any of
its Subsidiaries to, enter into

                                       38
<PAGE>
any transaction (including, without limitation, the purchase or sale of any
Property or service) with, or make any payment or transfer to, any Affiliate
except in the ordinary course of business and pursuant to the reasonable
requirements of the Borrower's or such Subsidiary's business and upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary than the
Borrower or such Subsidiary would obtain in a comparable arm's-length
transaction; provided, however, that these provisions shall not be applicable
with respect to transactions among the Borrower and its Subsidiaries which are
in the ordinary course of business and consistent with past practice.

          6.13 Investments.

          The Borrower will not, nor will it permit any of its Subsidiaries to,
make or suffer to exist any Investments, or commitments therefor, except:

          (a) Investments by the Borrower or any of its Subsidiaries in and to
any domestic Subsidiary;

          (b) Investments by the Borrower or any of its Subsidiaries in and to
any foreign Subsidiary in an aggregate amount at any time not to exceed 20% of
Consolidated Total Assets;

          (c) Investments in existence as of the close of business on the date
hereof and which are described in Schedule 6.13 hereto;

          (d) Subject to the proviso set forth below, investments made in
connection with Acquisitions permitted under Section 6.18;

          (e) Investments consisting of cash and cash equivalents;

          (f) Subject to the proviso set forth below, other Investments in any
other Persons in an aggregate amount at any time not to exceed 10% of
Consolidated Net Worth;

          (g) Investments owned by the Borrower in connection with the
Borrower's Executive Savings Plan; and

          (h) Syndicated Loans, capital contributions and other Investments made
by any Subsidiary in the Borrower;

provided, however, not withstanding anything in this Section 6.13 or Section
6.18 to the contrary, the aggregate amount of Investments made in connection
with Acquisitions made pursuant to clause (b) of Section 6.18 and pursuant to
clause (f) above shall not exceed 10% of Consolidated Net Worth.

          6.14 Contingent Obligations.

          The Borrower will not, nor will it permit any of its Subsidiaries to,
make or suffer to exist any Contingent Obligation, except:

                                       39
<PAGE>
          (a) by endorsement of instruments for deposit or collection in the
ordinary course of business;

          (b) Contingent Obligations of the Borrower and any of its Subsidiaries
existing as of the close of business on the date hereof which are described on
Schedule 6.14;

          (c) Contingent Obligations of the Borrower in respect of the
obligations of any domestic Subsidiary;

          (d) Reimbursement obligations in connection with letters of credit
issued under the 5-Year Revolving Credit Agreement and other letters of credit
(provided the issuance thereof is not violative of any other provision of this
Article VI);

          (e) Contingent Obligations consisting of the Borrower's guaranty of
reimbursement obligations of any Subsidiary in connection with letters of credit
permitted under clause (d) above;

          (f) Contingent Obligations of any Subsidiary to the extent such
Contingent Obligations constitute Indebtedness permitted under this Article VI;

          (g) Contingent Obligations of the Borrower to the extent such
Contingent Obligations (or the Indebtedness underlying such Contingent
Obligations) are included in the calculation of Funded Debt; and

          (h) Contingent Obligations in an additional aggregate amount not to
exceed $100,000,000 at any one time outstanding.

          6.15 Liens.

          (a) The Borrower will not, nor will it permit any of its Subsidiaries
to, create, incur, or suffer to exist any Lien in, of or on the Property of the
Borrower or such Subsidiary, as applicable, except:

               (i) Liens for taxes, assessments or governmental charges or
levies on its Property if the same shall not at the time be delinquent or
thereafter can be paid without penalty, or are being contested in good faith and
by appropriate proceedings and for which adequate reserves in accordance with
GAAP shall have been set aside on its books;

               (ii) Liens imposed by law, such as carriers', warehousemen's and
mechanics' liens and other similar liens arising in the ordinary course of
business which secure payment of obligations not more than 60 days past due or
which are being contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its
books;

               (iii) Liens arising out of pledges or deposits under worker's
compensation laws, unemployment insurance, old age pensions, or other social
security or retirement benefits, or similar legislation;

                                       40
<PAGE>
               (iv) utility easements, building restrictions and such other
encumbrances or charges against real property as are of a nature generally
existing with respect to properties of a similar character and which do not in
any material way affect the same or interfere with the use thereof in the
business of the Borrower or any Subsidiary of the Borrower;

               (v) Liens existing as of the close of business on the date hereof
and which are described in Schedule 5.14;

               (vi) Liens created or incurred after the date hereof, given to
secure the Indebtedness incurred or assumed in connection with the acquisition
or construction of property or assets useful and intended to be used in carrying
on the business of the Borrower or any Subsidiary of the Borrower, including
Liens existing on such property or assets at the time of acquisition or
construction thereof or at the time of acquisition or construction by the
Borrower or such Subsidiary, as applicable, of an interest in any business
entity then owning such property or assets, whether or not such existing Liens
were given to secure the consideration for the property or assets to which they
attach, subject to the requirement that the Lien shall attach solely to the
assets acquired or purchased;

               (vii) secured or unsecured purchase money Indebtedness (including
Capitalized Leases) incurred in the ordinary course of business to finance the
acquisition of fixed assets or equipment used in the business of such Subsidiary
if such Indebtedness does not exceed the lower of the fair market value or the
cost of the applicable fixed assets or equipment on the date acquired;

               (viii) Liens on real property with respect to Indebtedness the
proceeds of which are used (a) for the construction or improvement of the real
property securing such Indebtedness or (b) to finance the cost of construction
or improvement of such real property, provided such financing occurs within one
hundred eighty (180) days of receipt of the certificate of occupancy with
respect to such construction or improvement (other than with respect to a
refinancing under clause (x) below);

               (ix) other Liens (a) securing Indebtedness or other obligations
not exceeding $75,000,000 at any one time outstanding or (b) on property having
in the aggregate a fair market value at the time of incurrence of the Lien not
exceeding $75,000,000 at any one time outstanding;

               (x) any extension, renewal or replacement of any Lien permitted
by the preceding clauses (vi), (vii), (viii) or (ix) hereof in respect of the
same property or assets theretofore subject to such Lien in connection with the
extension, renewal or refunding of the Indebtedness secured thereby; provided
that (x) such Lien shall attach solely to the same property or assets, and (y)
such extension, renewal or refunding of such Indebtedness shall be without
increase in the principal remaining unpaid as of the date of such extension,
renewal or refunding; and

               (xi) Liens on the shares of capital stock of the Borrower's
foreign Subsidiaries securing Indebtedness in an amount which shall not exceed
twenty-five percent (25%) of the assets of all foreign Subsidiaries.

                                       41
<PAGE>
          6.16 Maximum Leverage Ratio.

          The Borrower shall not permit its Leverage Ratio to be greater than
2.75 to 1.00 as at the end of each fiscal quarter.

          6.17 Intentionally Deleted.

          6.18 Acquisitions.

          The Borrower will not, nor will it permit any of its Subsidiaries to,
make any Acquisition other than (a) a Permitted Acquisition; and (b) other
Acquisitions (i) made at a time when no Default or Unmatured Default exists;
(ii) consummated on a non-hostile basis approved by a majority of the board of
directors or other governing body of the Person being acquired, (iii) the
aggregate consideration for which, individually or when aggregated with the
aggregate consideration for other Acquisitions made under this clause (b) does
not exceed 10% of Consolidated Net Worth, and (iv) the aggregate consideration
for all such Acquisitions plus the aggregate amount of Investments made pursuant
to Section 6.13(f) does not exceed 10% of Consolidated Net Worth.

          6.19 Rate Hedging Obligations.

          The Borrower shall not, and shall not permit any of its Subsidiaries
to, enter into any Hedging Agreements, other than Hedging Agreements entered
into in the ordinary course of business to hedge or mitigate risks to which the
Borrower or such Subsidiary is exposed in the conduct of its business or the
management of its assets and liabilities.

          6.20 Subsidiary Indebtedness.

          The Borrower will not permit any Subsidiary to create, incur, assume
or suffer to exist any Indebtedness, except:

          (a) Indebtedness existing on the date hereof or proposed to be
incurred, each as described in Schedule 6.20 hereto;

          (b) Indebtedness of any Subsidiary to third parties (for the avoidance
of doubt, such Indebtedness shall include Indebtedness of Subsidiaries to third
parties set forth on Schedule 6.20 hereof but shall exclude any intercompany
Indebtedness of Subsidiaries), which Indebtedness for all such Subsidiaries does
not exceed 25% of Consolidated Net Worth; and

          (c) Indebtedness of any Subsidiary to the Borrower or to any other
Subsidiary.

          6.21 Subordination of Intercompany Indebtedness.

          The Borrower will not and will not permit any of its domestic
Subsidiaries to create, incur, assume or suffer to exist any intercompany
Indebtedness where the obligor on such Indebtedness is the Borrower, unless such
indebtedness is subordinated to the Obligations hereunder on the terms described
in Schedule 6.21.

                                       42
<PAGE>
                                   ARTICLE VII
                                    DEFAULTS

          7. Defaults. The occurrence of any one or more of the following events
shall constitute a Default:

          7.1  Breach of Representation or Warranty.

          Any representation or warranty made or deemed made by or on behalf of
the Borrower or any of its Subsidiaries to the Lenders or the Administrative
Agent under or in connection with this Agreement, any Syndicated Loan or any
certificate or information delivered in connection with this Agreement or any
other Loan Document shall be materially false on the date as of which made or
deemed made.

          7.2  Payment Default.

          Nonpayment of (i) principal of any Syndicated Loan or Syndicated Note
when due, or (ii) interest upon any Syndicated Loan or Syndicated Note or of any
fee or other obligations under any of the Loan Documents within five Business
Days after such interest, fee or other obligation becomes due.

          7.3  Breach of Certain Covenants.

          The breach by the Borrower of (a) any of the terms or provisions of
Sections 6.2 and 6.4, clause (a) of Section 6.3, any of Sections 6.10 through
6.15, Sections 6.18 and 6.19 or (b) any of the terms of Section 6.16 and such
breach under this clause (b) continues for 10 days after the first to occur of
(i) the date an executive officer of the Borrower first knows of or should have
known of such breach or (ii) the date the Borrower receives written notice from
any Lender (acting through the Administrative Agent) of such breach.

          7.4  Breach of Other Provisions.

          The breach by the Borrower (other than a breach which constitutes a
Default under Section 7.1, 7.2 or 7.3) of any of the terms or provisions of this
Agreement, and such breach continues for 30 days after the first to occur of (i)
the date an executive officer of the Borrower first knows of or should have
known of such breach or (ii) the date the Borrower receives written notice from
any Lender (acting through the Administrative Agent) of such breach.

          7.5  Default on Material Indebtedness.

          Failure of the Borrower or any of its Subsidiaries to make a payment
on any Indebtedness under the 5-Year Revolving Credit Agreement; or the failure
of the Borrower or any of its Subsidiaries to make a payment on Material
Indebtedness when due (after giving effect to any applicable grace period); or
the default by the Borrower or any of its Subsidiaries in the performance of any
term, provision or condition contained in the 5-Year Revolving Credit Agreement
or the default by the Borrower or any of its Subsidiaries in the performance of
any term, provision or condition contained in any agreement or agreements under
which Material

                                       43
<PAGE>
Indebtedness was created or is governed (and any applicable grace period(s)
shall have expired), or any other event shall occur or condition exist, the
effect of which is to cause, or to permit the holder or holders of such
Indebtedness under the 5-Year Revolving Credit Agreement or such Material
Indebtedness to cause, such Indebtedness or Material Indebtedness to become due
prior to its stated maturity; or any of the Indebtedness under the 5-Year
Revolving Credit Agreement or Material Indebtedness of the Borrower or any of
its Subsidiaries shall be declared to be due and payable or required to be
prepaid (other than by a regularly scheduled payment) prior to the stated
maturity thereof; or the Borrower or any of its Subsidiaries shall not pay, or
shall admit in writing its inability to pay, its debts generally as they become
due.

          7.6  Voluntary Insolvency Proceedings.

          The Borrower or any of its Subsidiaries shall (a) have an order for
relief entered with respect to it under the United States bankruptcy laws as now
or hereafter in effect or cause or allow any similar event to occur under any
bankruptcy or similar law or laws for the relief of debtors as now or hereafter
in effect in any other jurisdiction, (b) make an assignment for the benefit of
creditors, (c) apply for, seek, consent to, or acquiesce in, the appointment of
a receiver, custodian, trustee, examiner, liquidator, monitor or similar
official for it or any Substantial Portion of its Property, (d) institute any
proceeding seeking an order for relief under the United States bankruptcy laws
as now or hereafter in effect or seeking to adjudicate it a bankrupt or
insolvent, or seeking dissolution, winding up, liquidation, reorganization,
arrangement, adjustment or composition of it or any of its property or its debts
under any law relating to bankruptcy, insolvency or reorganization or compromise
of debt or relief of debtors as now or hereafter in effect in any jurisdiction,
or any organization, arrangement or compromise of debt under the laws of its
jurisdiction of organization or fail to promptly file an answer or other
pleading denying the material allegations of any such proceeding filed against
it, (e) take any corporate or other organizational action to authorize or effect
any of the foregoing actions set forth in this Section 7.6 or (f) fail to
contest in good faith, or consent to or acquiesce in, any appointment or
proceeding described in Section 7.7.

          7.7  Involuntary Insolvency Proceedings.

          Without the application, approval or consent of the Borrower or any of
its Subsidiaries, a receiver, custodian, trustee, examiner, liquidator or
similar official shall be appointed (either privately or by a court) for the
Borrower or any of its Subsidiaries or any Substantial Portion of its Property,
or a proceeding described in Section 7.6(d) shall be instituted against the
Borrower or any of its Subsidiaries and such appointment continues undischarged
or such proceeding continues undismissed or unstayed for a period of 60
consecutive days.

          7.8  Condemnation.

          Any court, government or governmental agency shall condemn, seize or
otherwise appropriate, or take custody or control of (each a "Condemnation"),
all or any portion of the Property of the Borrower and its Subsidiaries which,
when taken together with all other Property of the Borrower and its Subsidiaries
so condemned, seized, appropriated, or taken custody or control of, during the
twelve-month period ending with the month in which any such

                                       44
<PAGE>
Condemnation occurs, constitutes a Substantial Portion of the consolidated
Property of the Borrower and its Subsidiaries.

          7.9  Judgments.

          The Borrower or any of its Subsidiaries shall fail within 30 days to
pay, bond or otherwise discharge any one or more judgments or orders for the
payment of money in excess of $30,000,000 in the aggregate (determined after
giving effect to claims which the Borrower has demonstrated to the reasonable
satisfaction of the Administrative Agent are covered by applicable third-party
insurance policies (other than retro-premium insurance or other policies with
similar self-insurance attributes) of the Borrower or any of its Subsidiaries
unless the insurers of such claims have disclaimed coverage or reserved the
right to disclaim coverage), which judgments are not stayed on appeal with
adequate reserves set aside on its books in accordance with GAAP of the Borrower
or any of its Subsidiaries.

          7.10 ERISA Matters.

          Any Reportable Event, in connection with any Plan shall occur, which
may reasonably be expected to subject the Borrower and its Subsidiaries to
liability, individually or in the aggregate, in excess of $30,000,000.

          7.11 Environmental Matters.

          The Borrower or any of its Subsidiaries shall be the subject of any
proceeding or investigation pertaining to the release by the Borrower or any of
its Subsidiaries or any other Person of any petroleum, toxic or hazardous waste
or substance into the environment, or any violation of any Environmental, Health
or Safety Requirements of Law which, in either case, could reasonably be
expected to have a Material Adverse Effect or subject the Borrower and its
Subsidiaries to liability, individually or in the aggregate, in excess of
$30,000,000 (in each case, determined after giving effect to claims which the
Borrower has demonstrated to the reasonable satisfaction of the Administrative
Agent are covered by applicable third-party insurance policies (other than
retro-premium insurance or other policies with similar self-insurance
attributes) of the Borrower or any of its Subsidiaries unless the insurers of
such claims have disclaimed coverage or reserved the right to disclaim
coverage).

          7.12 Change of Control.

          Any Change in Control shall occur.

          7.13 Loan Document Defaults.

          Any Loan Document shall fail to remain in full force or effect or any
party thereto shall so assert; or any action shall be taken to discontinue,
revoke or to assert the invalidity or unenforceability of any Loan Document.

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<PAGE>
          7.14 Off-Balance Sheet Liabilities.

          Other than at the request of an Affiliate of the Borrower party
thereto (as permitted thereunder), an event shall occur which (i) permits the
investors in respect of Off-Balance Sheet Liabilities of the Borrower or any of
its Subsidiaries in an amount, individually or in the aggregate, in excess of
$30,000,000, to require amortization or liquidation of such Off-Balance Sheet
Liabilities and (x) such event is not remedied within ten (10) days after the
occurrence thereof or (y) such investors shall require amortization or
liquidation of such Off-Balance Sheet Liabilities as a result of such event, or
(ii) results in the termination or reinvestment of collections or proceeds of
accounts or note receivables, as applicable, under the documents and other
agreements evidencing such Off-Balance Sheet Liabilities.

                                  ARTICLE VIII
                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

          8.1  Acceleration.

          If any Default described in Section 7.6 or 7.7 occurs, the obligations
of the Lenders to make Syndicated Loans hereunder shall automatically terminate
and the Obligations shall immediately become due and payable without any
election or action on the part of the Administrative Agent or any Lender, and
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives. If any other Default occurs and is continuing
(which Default has not been waived under the terms of Section 8.2) the Required
Lenders may (a) terminate or suspend the obligations of the Lenders to make
Syndicated Loans hereunder, or (b) declare the Obligations to be due and
payable, whereupon the Obligations shall become immediately due and payable,
without presentment, demand, protest or notice of any kind, all of which the
Borrower hereby expressly waives, or (c) take the action described in both the
preceding clause (a) and the preceding clause (b).

          If, within 30 days after acceleration of the maturity of the
Obligations or termination of the obligations of the Lenders to make Syndicated
Loans hereunder as a result of any Default (other than any Default as described
in Section 7.6 or 7.7) and before any judgment or decree for the payment of the
Obligations due shall have been obtained or entered, the Required Lenders (in
their sole discretion) shall so direct, the Administrative Agent shall, by
notice to the Borrower, rescind and annul such acceleration and/or termination.

          8.2  Amendments.

          Subject to the provisions of this Article VIII, the Required Lenders
(or the Administrative Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or waiving any
Default or Unmatured Default hereunder; provided, however, that no such
supplemental agreement shall, without the consent of each Lender affected
thereby:

          (a) extend the maturity of any Syndicated Loan or Syndicated Note or
forgive all or any portion of the principal amount thereof, any interest thereon
or any fees or other

                                       46
<PAGE>
amounts payable hereunder, or reduce the rate or extend the time of payment of
interest, fees or other amounts payable hereunder;

          (b) reduce the percentage specified in the definition of Required
Lenders;

          (c) except as provided in Section 2.9(d), increase the amount of the
Commitment of any Lender hereunder, or permit the Borrower to assign its rights
or obligations under this Agreement;

          (d) amend this Section 8.2 or amend or waive any other provision of
this Agreement or any other Loan Document that specifies the number or
percentage of Lenders required to amend or waive any rights or make any
determination or grant any consent.

No amendment of any provision of this Agreement relating in any way to the
Administrative Agent shall be effective without the written consent of the
Administrative Agent. No amendment of any provision of this Agreement which
subjects any Designated Lender to any additional obligation hereunder shall be
effective with respect to such Designated Lender without the written consent of
such Designated Lender or its Designating Lender. The Administrative Agent may
waive payment of the fee required under Section 12.3.2 without obtaining the
consent of any other party to this Agreement.

          8.3  Preservation of Rights.

          No delay or omission of the Lenders or any of them or the
Administrative Agent to exercise any right under the Loan Documents shall impair
such right or be construed to be a waiver of any Default or an acquiescence
therein, and the making of a Syndicated Loan notwithstanding the existence of a
Default or the inability of the Borrower to satisfy the conditions precedent to
such Syndicated Loan shall not constitute any waiver or acquiescence. Any single
or partial exercise of any such right shall not preclude any other or further
exercise thereof or the exercise of any other right, and no waiver, amendment or
other variation of the terms, conditions or provisions of the Loan Documents
whatsoever shall be valid unless in writing signed by (or with the consent of)
the Lenders required pursuant to Section 8.2, and then only to the extent
specifically set forth in such writing. All remedies contained in the Loan
Documents or afforded by law shall be cumulative and all shall be available to
the Administrative Agent and the Lenders until the Obligations have been paid in
full.

                                   ARTICLE IX
                               GENERAL PROVISIONS

          9.1  Survival of Representations.

          All representations and warranties of the Borrower contained in this
Agreement shall survive delivery hereof (including any Syndicated Notes) and the
making of the Syndicated Loans herein contemplated.

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<PAGE>
          9.2  Governmental Regulation.

          Anything contained in this Agreement to the contrary notwithstanding,
no Lender shall be obligated to extend credit to the Borrower in violation of
any limitation or prohibition provided by any applicable statute or regulation.

          9.3  Taxes; Stamp Duties.

          Any taxes (excluding taxes (including net income taxes, franchise
taxes and branch profit taxes) as are imposed on or measured by such Lender's
net income by the United States of America or any Governmental Authority of the
jurisdiction under the laws of which such Lender is organized or maintains its
Lending Installation) or other similar assessments or charges made by any
Governmental Authority or revenue authority in respect of the Loan Documents
shall be paid by the Borrower, together with interest and penalties, if any, as
provided in Section 3.1. The Borrower shall pay and forthwith on demand
indemnify each of the Administrative Agent and each Lender against any liability
it incurs in respect of any stamp, registration and similar tax which is or
becomes payable in connection with the entry into, performance or enforcement of
any Loan Document. To the extent reasonably possible, each Lender shall
designate an alternate Lending Installation with respect to its Syndicated Loans
to reduce any liability of the Borrower to such Lender under this Section 9.3,
so long as such designation is not disadvantageous to such Lender in its
reasonable determination. If any Lender has demanded compensation under this
Section 9.3, the Borrower may elect to require the applicable Lender to assign
its outstanding Syndicated Loans and Commitment hereunder to another financial
institution designated by the Borrower and reasonably acceptable to the
Administrative Agent. The obligation of a Lender to assign its rights and
obligations hereunder as contemplated by this Section 9.3 is subject to the
requirements that (x) all amounts owing to that Lender under the Loan Documents
are paid in full upon the completion of such assignment and (y) any assignment
is effected in accordance with the terms of Section 12.3 and on terms otherwise
satisfactory to that Lender (it being understood that the Borrower or the
replacement Lender shall pay the processing fee payable to the Administrative
Agent pursuant to Section 12.3.2 in connection with any such assignment).

          9.4  Headings.

          Section headings in the Loan Documents are for convenience of
reference only and shall not govern the interpretation of any of the provisions
of the Loan Documents.

          9.5  Entire Agreement.

          The Loan Documents embody the entire agreement and understanding among
the Borrower, the Administrative Agent and the Lenders and supersede all prior
agreements and understandings among the Borrower, the Administrative Agent and
the Lenders relating to the subject matter thereof.

          9.6  Several Obligations; Benefits of this Agreement.

          The respective obligations of the Lenders hereunder are several and
not joint and no Lender shall be the partner or agent of any other (except to
the extent to which the

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Administrative Agent is authorized to act as such). The failure of any Lender to
perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. This Agreement shall not be construed so as to
confer any right or benefit upon any Person other than the parties (and their
directors, officers and employees with respect to Section 9.7 to this Agreement)
and their respective successors and assigns.

          9.7  Expenses; Indemnification.

          (a) The Borrower shall reimburse the Administrative Agent for any
reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' fees and time charges of attorneys for the Administrative
Agent and the Arrangers; which attorneys may be employees of the Administrative
Agent and the Arrangers or of one outside counsel, but not both) paid or
incurred by the Administrative Agent or the Arrangers in connection with the
preparation, negotiation, execution, delivery, syndication, review, amendment,
modification, and administration of the Loan Documents. The Borrower also agrees
to reimburse the Administrative Agent, the Arrangers and the Lenders for any
reasonable costs, internal charges and out-of-pocket expenses (including
reasonable attorneys' fees and time charges of not more than three firms of
attorneys for the Administrative Agent, the Arrangers and the Lenders, which
attorneys may be employees of such persons) paid or incurred by the
Administrative Agent, the Arrangers or any Lender in connection with the
restructuring, workout, collection and/or enforcement of the Loan Documents.

          (b) The Borrower further agrees to defend, protect, indemnify, and
hold harmless the Administrative Agent and each and all of the Arrangers and
each of their respective Affiliates, and each of such Person's respective
officers, directors, employees, partners, managers, shareholders, attorneys and
agents (collectively, the "Indemnitees") from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs and expenses of any kind or nature whatsoever (including, without
limitation, the reasonable fees and disbursements of attorneys and paralegals
for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitees shall be designated a party
thereto), imposed on, incurred by or asserted against such Indemnitees in any
manner relating to or arising out of:

               (i) this Agreement, the other Loan Documents or any act, event or
transaction related or attendant thereto or to the making of the Syndicated
Loans hereunder, the management of such Syndicated Loans, the use or intended
use of the proceeds of the Syndicated Loans hereunder, or any of the other
transactions contemplated by the Loan Documents; or

               (ii) any liabilities, obligations, responsibilities, losses,
damages, personal injury, death, punitive damages, economic damages,
consequential damages, treble damages, intentional, willful or wanton injury,
damage or threat to the environment, natural resources or public health or
welfare, costs and expenses (including, without limitation, attorney, expert and
consulting fees and costs of investigation, feasibility or remedial action
studies), fines, penalties and monetary sanctions and interest, direct or
indirect, known or unknown, absolute or contingent, past, present or future
relating to violation of any Environmental, Health or Safety Requirements of Law
arising from or in connection with the past, present or future operations of the
Borrower, its Subsidiaries or any of their respective predecessors in interest,
or, the past,

                                       49
<PAGE>
present or future environmental, health or safety condition of any respective
Property of the Borrower or its Subsidiaries, the presence of
asbestos-containing materials at any respective property of the Borrower or its
Subsidiaries or the release or threatened release of any petroleum, toxic or
hazardous waste or substance into the environment (collectively, the
"Indemnified Matters");

provided, however, the Borrower shall have no obligation to an Indemnitee
hereunder with respect to Indemnified Matters caused solely by or resulting
solely from the willful misconduct or Gross Negligence of such Indemnitee as
determined by the final non-appealable judgment of a court of competent
jurisdiction. If the undertaking to indemnify, pay and hold harmless set forth
in the preceding sentence may be unenforceable because it is violative of any
law or public policy, the Borrower shall contribute the maximum portion which it
is permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Matters incurred by the Indemnitees.

          (c) The Borrower further agrees to assert no claim against any of the
Indemnitees on any theory of liability for consequential, special, indirect,
exemplary or punitive damages. No settlement shall be entered into by the
Borrower or any of its Subsidiaries with respect to any claim, litigation,
arbitration or other proceeding relating to or arising out of the transaction
evidenced by this Agreement or the other Loan Documents (whether or not the
Administrative Agent or any Lender or any other Indemnitee is a party thereto)
unless such settlement releases all Indemnitees from any and all liability with
respect thereto. After submission of a written request to an Indemnitee from the
Borrower detailing the nature of any claim, litigation, arbitration or other
proceeding which relates to or arises out of the transaction evidenced by this
Agreement or the other Loan Documents, such Indemnitee shall inform the Borrower
as to whether it will require compliance with the provisions of this clause (c)
or whether it will waive such compliance, any waiver of which shall be
applicable only for such Indemnitee.

          (d) The obligations of the Borrower under this Section shall survive
the termination of this Agreement.

          9.8  Numbers of Documents.

          Subject to Section 13.1 hereof, all statements, notices, closing
documents, and requests hereunder shall be furnished to the Administrative Agent
with sufficient counterparts so that the Administrative Agent, if it deems
appropriate, may furnish one to each of the Lenders.

          9.9  Accounting.

          Except as provided to the contrary herein, all accounting terms used
herein shall be interpreted and all accounting determinations hereunder shall be
made in accordance with GAAP. If any changes in GAAP are hereafter required or
permitted and are adopted by the Borrower or any of its Subsidiaries with the
agreement of its independent certified public accountants and such changes
result in a change in the method of calculation of any of the financial
covenants, restrictions or standards herein or in the related definitions or
terms used therein ("Accounting Changes"), the parties hereto agree, at the
Borrower's request, to enter into

                                       50
<PAGE>
negotiations, in good faith, in order to amend such provisions in a credit
neutral manner so as to reflect equitably such Accounting Changes with the
desired result that the criteria for evaluating the Borrower's and its
Subsidiaries' financial condition shall be the same after such Accounting
Changes as if such Accounting Changes had not been made; provided, however,
until such provisions are amended in a manner reasonably satisfactory to the
Administrative Agent and the Required Lenders, no Accounting Change shall be
given effect in such calculations and all financial statements and reports
required to be delivered hereunder shall be prepared in accordance with GAAP
without taking into account such Accounting Changes. In the event such amendment
is entered into, all references in this Agreement to GAAP shall mean generally
accepted accounting principles in effect as of the date of such amendment.

          9.10 Severability of Provisions.

          Any provision in any Loan Document that is held to be inoperative,
unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable, or invalid without affecting the remaining
provisions in that jurisdiction or the operation, enforceability, or validity of
that provision in any other jurisdiction, and to this end the provisions of all
Loan Documents are declared to be severable.

          9.11 Nonliability of Lenders.

          The relationship between the Borrower, on the one hand, and the
Lenders and the Administrative Agent, on the other hand, shall be solely that of
borrower and lender. Neither the Administrative Agent nor any Lender shall have
any fiduciary responsibilities to the Borrower or any of its Subsidiaries.
Neither the Administrative Agent nor any Lender undertakes any responsibility to
the Borrower or any of its Subsidiaries to review or inform the Borrower or any
of its Subsidiaries of any matter in connection with any phase of the business
or operations of the Borrower or any of its Subsidiaries.

          9.12 GOVERNING LAW.

          THE ADMINISTRATIVE AGENT ACCEPTS THIS AGREEMENT, ON BEHALF OF ITSELF
AND THE LENDERS, AT NEW YORK, NEW YORK BY ACKNOWLEDGING AND AGREEING TO IT
THERE. ANY DISPUTE BETWEEN THE BORROWER AND ANY OF THE ADMINISTRATIVE AGENT, ANY
LENDER, OR ANY OTHER HOLDER OF THE OBLIGATIONS ARISING OUT OF, CONNECTED WITH,
RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER
ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE
WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF
THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

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<PAGE>
          9.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

          (a) JURISDICTION. THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT
ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED
IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM, BUT THE BORROWER ACKNOWLEDGES
THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE OF NEW YORK, NEW YORK. EXCEPT AS SET FORTH IN CLAUSE (B) BELOW, ANY
JUDICIAL PROCEEDING BY THE ADMINISTRATIVE AGENT, THE SWING LINE LENDER, ANY
ISSUING LENDER OR ANY LENDER ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS IF BROUGHT OTHER THAN IN ANY UNITED STATES
FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK, SHALL BE BROUGHT
ONLY IN A COURT IN BOSTON, MASSACHUSETTS. ANY JUDICIAL PROCEEDING BY THE
BORROWER AGAINST THE ADMINISTRATIVE AGENT, THE SWING LINE LENDER, ANY ISSUING
LENDER OR ANY LENDER OR ANY AFFILIATE OF ANY SUCH PERSON INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO OR CONNECTED WITH
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN
NEW YORK, NEW YORK OR BOSTON, MASSACHUSETTS, TO THE EXTENT THAT JURISDICTION CAN
BE OBTAINED AGAINST SUCH PERSONS IN ANY SUCH JURISDICTION, BUT THE PARTIES
HERETO ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A
COURT LOCATED OUTSIDE OF NEW YORK, NEW YORK OR BOSTON, MASSACHUSETTS. EACH OF
THE PARTIES HERETO WAIVES IN ALL DISPUTES BROUGHT IN THE JURISDICTIONS
IDENTIFIED IN THIS CLAUSE (A) ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION OF
THE COURT CONSIDERING THE DISPUTE PROVIDED, WITH RESPECT TO THE ADMINISTRATIVE
AGENT OR ANY LENDER, PERSONAL JURISDICTION WITH RESPECT TO SUCH PARTY MAY BE
OBTAINED IN SUCH JURISDICTION.

          (b) OTHER JURISDICTIONS. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY
PERSON TO BRING ANY ACTION HEREUNDER IN A COURT IN ANY LOCATION TO ENABLE SUCH
PERSON TO OBTAIN PERSONAL JURISDICTION OVER ANY OTHER PERSON WITH RESPECT
HERETO. THE BORROWER AGREES THAT THE ADMINISTRATIVE AGENT ANY LENDER OR ANY
OTHER HOLDER OF THE OBLIGATIONS SHALL HAVE THE RIGHT TO PROCEED AGAINST THE
BORROWER OR ITS PROPERTY IN A COURT IN ANY LOCATION TO ENABLE SUCH PERSON TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF SUCH PERSON. THE
BORROWER AGREES THAT IT WILL NOT ASSERT ANY PERMISSIVE

                                       52
<PAGE>
COUNTERCLAIMS IN ANY PROCEEDING BROUGHT UNDER THIS CLAUSE (B) BY SUCH PERSON TO
ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF SUCH PERSON, ALL OF WHICH
PERMISSIVE COUNTERCLAIMS SHALL BE BROUGHT BY THE BORROWER IN THE JURISDICTIONS
IDENTIFIED IN CLAUSE (A) ABOVE. THE BORROWER WAIVES ANY OBJECTION THAT IT MAY
HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH PERSON HAS COMMENCED A
PROCEEDING DESCRIBED IN THIS CLAUSE (B).

          (c) SERVICE OF PROCESS; INCONVENIENT FORUM. THE BORROWER WAIVES
PERSONAL SERVICE OF ANY PROCESS UPON IT AND AGREES THAT ANY SUCH PROCESS MAY BE
SERVED BY REGISTERED MAIL TO THE BORROWER AT ITS ADDRESS FOR NOTICES PURSUANT TO
SECTION 13.1. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT
LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY
SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH
IN ANY JURISDICTION SET FORTH ABOVE.

          (d) WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT
OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

          (e) ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENTS TO EACH OTHER
PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY, THE
PROVISIONS OF THIS SECTION 9.13 WITH ITS COUNSEL.

          9.14 Confidentiality.

          Each Lender agrees to hold any confidential information which it may
receive from the Borrower pursuant to this Agreement in confidence, except for
disclosure (i) to other Lenders and its and their respective Affiliates,
Transferees and prospective Transferees (each of whom by its acceptance thereof,
agrees to be bound by the terms of this Section 9.14), (ii) in confidence to
legal counsel, accountants and other professional advisors to that Lender or to
Transferees or prospective Transferees pursuant to Section 12.5, (iii) to
regulatory officials, (iv)

                                       53
<PAGE>
to any Person as requested (which request such Lender reasonably believes could
give rise to mandatory disclosure) or pursuant to or as required by law,
regulation or legal process, (v) to any Person in connection with any legal
proceeding to which that Lender is a party with respect to any claim,
litigation, arbitration or other proceeding relating to or arising out of the
transaction evidenced by this Agreement or the other Loan Documents, (vi) to any
Person in connection with any other legal proceeding to which that Lender is a
party, provided, that such Lender uses reasonable efforts to give the Borrower
notice of any disclosure thereunder to the extent that such Lender may lawfully
do so and provided, further, that any failure in such regard shall not result in
any liability on the part of such Lender, and (vii) permitted by Section 12.5.

                                   ARTICLE X
                            THE ADMINISTRATIVE AGENT

          10.1 Appointment; Nature of Relationship.

          Bank of America is appointed by the Lenders as the Administrative
Agent hereunder and under each other Loan Document, and each of the Lenders
irrevocably authorizes the Administrative Agent to act as the contractual
representative of such Person with the rights and duties expressly set forth
herein and in the other Loan Documents. The Administrative Agent agrees to act
as such contractual representative upon the express conditions contained in this
Article X. Notwithstanding the use of the defined term "Administrative Agent" or
"agent" in reference to Bank of America, it is expressly understood and agreed
that the Administrative Agent shall not have any fiduciary responsibilities to
any Lender by reason of this Agreement and that the Administrative Agent is
merely acting as the representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as such contractual representative, the Administrative Agent (i) does
not assume any fiduciary duties to any of the Lenders, (ii) is a
"representative" of the Lenders within the meaning of Section 9-102 of the
Uniform Commercial Code and (iii) is acting as an independent contractor, the
rights and duties of which are limited to those expressly set forth in this
Agreement and the other Loan Documents. Each of the Lenders agrees to assert no
claim against the Administrative Agent on any agency theory or any other theory
of liability for breach of fiduciary duty, all of which claims each Lender
waives.

          10.2 Powers.

          The Administrative Agent shall have and may exercise such powers under
the Loan Documents as are specifically delegated to the Administrative Agent by
the terms of each thereof, together with such powers as are reasonably
incidental thereto. The Administrative Agent shall have no implied duties or
fiduciary duties to the Lenders, or any obligation to the Lenders to take any
action hereunder or under any of the other Loan Documents except any action
specifically provided by the Loan Documents required to be taken by the
Administrative Agent.

          10.3 General Immunity.

          Neither the Administrative Agent nor any of its Affiliates nor their
respective Affiliates, directors, officers, agents or employees shall be liable
to the Borrower or any Lender

                                       54
<PAGE>
for any action taken or omitted to be taken by it or them hereunder or under any
other Loan Document or in connection herewith or therewith except to the extent
such action or inaction is found in a final judgment by a court of competent
jurisdiction to have arisen solely from the Gross Negligence or willful
misconduct of such Person.

          10.4 No Responsibility for Syndicated Loans, Creditworthiness,
Collateral, Recitals, Etc.

          Neither the Administrative Agent nor any of its directors, officers,
agents or employees shall be responsible for or have any duty to ascertain,
inquire into or verify (i) any statement, warranty or representation made in
connection with any Loan Document or any extension of credit hereunder; (ii) the
performance or observance of any of the covenants or agreements of the Borrower,
any Subsidiary or any other obligor under any Loan Document; (iii) the
satisfaction of any condition specified in Article IV, except receipt of items
required to be delivered solely to the Administrative Agent; (iv) the existence
or possible existence of any Default or Unmatured Default; or (v) the validity,
effectiveness or genuineness of any Loan Document or any other instrument or
writing furnished in connection therewith. The Administrative Agent shall not be
responsible to any Lender for any recitals, statements, representations or
warranties herein or in any of the other Loan Documents or for the execution,
effectiveness, genuineness, validity, legality, enforceability, collectibility
or sufficiency of this Agreement or any of the other Loan Documents or the
transactions contemplated thereby, or for the financial condition of the
Borrower or any of its Subsidiaries. The Administrative Agent will use its
reasonable efforts to distribute to each of the Lenders, in a timely fashion, a
copy of all written reports, certificates and information required to be
supplied by the Borrower or any of its Subsidiaries to the Administrative Agent
pursuant to the terms of this Agreement or any of the other Loan Documents;
provided that any failure in such regard shall not result in any liability on
the part of the Administrative Agent and provided, further that the
Administrative Agent shall have no duty to disclose to the Lenders information
that is not required to be furnished by the Borrower to the Administrative Agent
at such time, but is voluntarily furnished by the Borrower to the Administrative
Agent (either in its capacity as Administrative Agent or in its individual
capacity) or any of its Affiliates.

          10.5 Action on Instructions of Lenders.

          The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, hereunder and under any other Loan
Document in accordance with written instructions signed by the Required Lenders
or all of the Lenders (as applicable under Section 8.2 or under any other
provision of this Agreement or any other Loan Document), and such instructions
and any action taken or failure to act pursuant thereto shall be binding on all
of the Lenders and any other holders of the Obligations. The Administrative
Agent shall be fully justified in failing or refusing to take any action
hereunder and under any other Loan Document unless it shall first be indemnified
to its satisfaction (which shall not include any requirement that it be
indemnified for its willful misconduct or Gross Negligence) by the Lenders pro
rata against any and all liability, cost and expense that it may incur by reason
of taking or continuing to take any such action.

                                       55
<PAGE>
          10.6 Employment of Agents and Counsel.

          The Administrative Agent may execute any of its duties as the
Administrative Agent hereunder and under any other Loan Document by or through
employees, agents and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Administrative Agent shall be entitled
to advice of counsel concerning the contractual arrangement between the
Administrative Agent and the Lenders and all matters pertaining to the
Administrative Agent's duties hereunder and under any other Loan Document.

          10.7 Reliance on Documents; Counsel.

          The Administrative Agent shall be entitled to rely upon any Loan
Document, notice, consent, certificate, affidavit, letter, telegram, statement,
paper or document (including any electronic transmission) believed by it to be
genuine and correct and to have been signed or sent or given by the proper
person or persons, and, in respect of legal matters, upon the opinion of counsel
selected by the Administrative Agent, which counsel may be employees of the
Administrative Agent and which counsel may have acted as counsel for the
Administrative Agent in connection with the negotiation and execution of this
Agreement and the other Loan Documents.

          10.8 The Administrative Agent's Reimbursement and Indemnification.

          The Lenders agree to reimburse and indemnify the Administrative Agent
ratably in proportion to their respective Pro Rata Shares (i) for any amounts
not reimbursed by the Borrower for which the Administrative Agent is entitled to
reimbursement by the Borrower under the Loan Documents, (ii) for any other
expenses incurred by the Administrative Agent on behalf of the Lenders, in
connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents (including with respect to any disagreement
between or among any of the Administrative Agent or Lenders) and (iii) for any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Administrative Agent in any way
relating to or arising out of the Loan Documents or any other document delivered
in connection therewith or the transactions contemplated thereby, or the
enforcement of any of the terms thereof or of any such other documents, provided
that no Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have arisen solely from the Gross Negligence or willful
misconduct of the Administrative Agent.

          10.9 Rights as a Lender.

          With respect to its Commitment, Syndicated Loans made by it, and
Syndicated Notes (if any) issued to it, Bank of America (or any other Person
succeeding it as the Administrative Agent) shall have the same rights and powers
hereunder and under any other Loan Document as any Lender, and may exercise the
same as though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" shall, unless the context otherwise

                                       56
<PAGE>
indicates, include Bank of America (or any other Person succeeding it as the
Administrative Agent) in its individual capacity. Bank of America (or any other
Person succeeding it as the Administrative Agent) and its Affiliates may accept
deposits from, lend money to, and generally engage in any kind of trust, debt,
equity or other transaction, in addition to those contemplated by this Agreement
or any other Loan Document, with the Borrower or any of its Subsidiaries in
which such Person is not prohibited hereby from engaging with any other Person.

          10.10 Lender Credit Decision.

          Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on the
financial statements prepared by the Borrower and its Subsidiaries and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and the other Loan Documents.

          10.11 Successor Administrative Agent.

          The Administrative Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower, and the Administrative Agent may
be removed at any time with or without cause by written notice received by the
Administrative Agent from the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint, without the
consent of the Borrower and on behalf of the Lenders, a successor Administrative
Agent. If no successor Administrative Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty days
after the retiring Administrative Agent's giving notice of resignation, then the
retiring Administrative Agent may appoint, without the consent of the Borrower
and on behalf of the Lenders, a successor Administrative Agent, which successor
Administrative Agent shall be a Lender unless no Lender shall so agree in which
event such successor Administrative Agent may be a Person of the Administrative
Agent's choosing. Notwithstanding anything herein to the contrary, so long as no
Default has occurred and is continuing, each such successor Administrative Agent
shall be subject to approval by the Borrower, which approval shall not be
unreasonably withheld. Such successor Administrative Agent shall be a commercial
bank having capital and retained earnings of at least $100,000,000. Upon the
acceptance of any appointment as the Administrative Agent hereunder by a
successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Article X shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Administrative Agent hereunder and
under the other Loan Documents.

                                       57
<PAGE>
          10.12 No Duties Imposed on Syndication Agents, Documentation Agents or
Arrangers.

          None of the Persons identified on the cover page to this Agreement,
the signature pages to this Agreement or otherwise in this Agreement as a
"Syndication Agent," "Documentation Agent" or "Arranger" shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than, if such Person is a Lender, those applicable to all Lenders as such.
Without limiting the foregoing, none of the Persons identified on the cover page
to this Agreement, the signature pages to this Agreement or otherwise in this
Agreement as a "Syndication Agent," "Documentation Agent" or "Arranger" shall
have or be deemed to have any fiduciary duty to or fiduciary relationship with
any Lender. In addition to the agreement set forth in Section 10.12, each of the
Lenders acknowledges that it has not relied, and will not rely, on any of the
Persons so identified in deciding to enter into this Agreement or in taking or
not taking action hereunder.

          10.13 Administrative Agent's Fee.

          The Borrower agrees to pay to the Administrative Agent, for its own
account, the fees agreed to by the Borrower and the Administrative Agent by
separate letter agreement, or as otherwise agreed from time to time.

                                   ARTICLE XI
                            SETOFF; RATABLE PAYMENTS

          11.1 Setoff.

          In addition to, and without limitation of, any rights of the Lenders
under applicable law, if the Borrower becomes insolvent, however evidenced, or
any Default or Unmatured Default occurs and is continuing, any and all deposits
(including all account balances, whether provisional or final and whether or not
collected or available) and any other Indebtedness at any time held or owing by
any Lender to or for the credit or account of the Borrower may be offset and
applied toward the payment of the Obligations owing to such Lender, whether or
not the Obligations, or any part hereof, shall then be due.

          11.2 Ratable Payments.

          If any Lender, whether by setoff or otherwise, has payment made to it
upon its Syndicated Loans (other than payments received pursuant to Section 3.1,
3.2 or 3.4) in a greater proportion than that received by any other Lender, such
Lender agrees, promptly upon demand, to purchase a portion of the Syndicated
Loans held by the other Lenders so that after such purchase each Lender will
hold its ratable proportion of Syndicated Loans. If any Lender, whether in
connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligations or such amounts
which may be subject to setoff, such Lender agrees, promptly upon demand, to
take such action necessary such that all Lenders share in the benefits of such
collateral ratably in proportion to their Syndicated Loans. In case any such
payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made.

                                       58
<PAGE>
          11.3 Application of Payments.

          The Administrative Agent shall, unless otherwise specified at the
direction of the Required Lenders which direction shall be consistent with the
last sentence of this Section 11.3, apply all payments and prepayments in
respect of any Obligations in the following order:

          (a) first, to pay interest on and then principal of any portion of the
Syndicated Loans which the Administrative Agent may have advanced on behalf of
any Lender for which the Administrative Agent has not then been reimbursed by
such Lender or the Borrower;

          (b) second, to pay Obligations in respect of any fees, expense
reimbursements or indemnities then due to the Administrative Agent in its
capacity as such;

          (c) third, to the ratable payment of Obligations in respect of any
fees, expenses, reimbursements or indemnities then due to the Lenders;

          (d) fourth, to pay interest due in respect of Syndicated Loans;

          (e) fifth, to the ratable payment or prepayment of principal
outstanding on Syndicated Loans in such order as the Administrative Agent may
determine in its sole discretion; and

          (f) sixth, to the ratable payment of all other Obligations.

Unless otherwise designated (which designation shall only be applicable if no
Default has occurred and is continuing) by the Borrower or unless otherwise
mandated by the terms of this Agreement, all principal payments in respect of
Syndicated Loans shall be applied first, to repay outstanding Floating Rate
Loans, and then to repay outstanding Eurodollar Loans with those Eurodollar
Loans which have earlier expiring Interest Periods being repaid prior to those
which have later expiring Interest Periods. The order of priority set forth in
this Section 11.3 and the related provisions of this Agreement are set forth
solely to determine the rights and priorities of the Administrative Agent and
the Lenders as among themselves. The order of priority set forth in clauses (d)
through (h) of this Section 11.3 may at any time and from time to time be
changed by the Required Lenders without necessity of notice to or consent of or
approval by Borrower or any other Person. The order of priority set forth in
clauses (a) and (b) of this Section 11.3 may be changed only with the prior
written consent of the Administrative.

                                  ARTICLE XII
               BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

          12.1 Successors and Assigns.

          The terms and provisions of the Loan Documents shall be binding upon
and inure to the benefit of the Borrower, the Administrative Agent and the
Lenders and their respective successors and assigns, except that (a) the
Borrower shall not have the right to assign its rights or obligations under the
Loan Documents without the consent of all of the Lenders and (b) any assignment
by any Lender must be made in compliance with Section 12.3. Notwithstanding
clause (b) of the preceding sentence, any Lender may at any time, without the
consent of the

                                       59
<PAGE>
Borrower or the Administrative Agent, assign all or any portion of its rights
under this Agreement and its Syndicated Notes to a Federal Reserve Bank;
provided, however, that no such assignment shall release the transferor Lender
from its obligations hereunder. The Administrative Agent may treat the Person
which made any Syndicated Loan or which holds any Syndicated Note as the owner
thereof for all purposes hereof unless and until such Person complies with
Section 12.3 in the case of an assignment thereof or, in the case of any other
transfer, a written notice of the transfer is filed with the Administrative
Agent. Any assignee or transferee of the rights to any Syndicated Loan or any
Syndicated Note agrees by acceptance of such transfer or assignment to be bound
by all the terms and provisions of the Loan Documents. Any request, authority or
consent of any Person, who at the time of making such request or giving such
authority or consent is the owner of the rights to any Syndicated Loan (whether
or not a Syndicated Note has been issued in evidence thereof), shall be
conclusive and binding on any subsequent holder, transferee or assignee of the
rights to such Syndicated Loan.

          12.2 Participations.

          12.2.1 Permitted Participants; Effect. Any Lender may, in the ordinary
course of its business and in accordance with applicable law, at any time sell
to one or more banks or other Eligible Participants (a "Participant")
participating interests in any Syndicated Loan owing to such Lender, any
Syndicated Note held by such Lender, the Commitment of such Lender or any other
interest of such Lender under the Loan Documents. In the event of any such sale
by a Lender of participating interests to a Participant, such Lender's
obligations under the Loan Documents shall remain unchanged, such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations, such Lender shall remain the owner of its Syndicated Loans and
the holder of any Syndicated Note issued to it for all purposes under the Loan
Documents, all amounts payable by the Borrower under this Agreement shall be
determined as if such Lender had not sold such participating interests, and the
Borrower and the Administrative Agent shall continue to deal solely and directly
with such Lender in connection with such Lender's rights and obligations under
the Loan Documents. The participation agreement effecting the sale of any
participating interest shall contain a representation by the Participant to the
effect that none of the consideration used to make the purchase of the
participating interest in the Commitment and Syndicated Loans under such
participation agreement are "plan assets" as defined under ERISA and that the
rights and interests of the Participant in and under the Loan Documents will not
be "plan assets" under ERISA.

          12.2.2 Voting Rights. Each Lender shall retain the sole right to
approve, without the consent of any Participant, any amendment, modification or
waiver of any provision of the Loan Documents other than any amendment,
modification or waiver with respect to any Syndicated Loan or Commitment in
which such Participant has an interest which would require the consent of such
Participant under Section 8.2(a) if such Participant were a Lender.

          12.2.3 Benefit of Setoff and Other Provisions. The Borrower agrees
that to the extent permitted by law each Participant shall be deemed to have the
right of setoff provided in Section 11.1 in respect of its participating
interest in amounts owing under the Loan Documents to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
the Loan Documents, provided that each Lender shall retain the right of setoff
provided in Section 11.1 with respect to the amount of participating interests
sold to each

                                       60
<PAGE>
Participant. The Lenders agree to share with each Participant, and each
Participant, by exercising the right of setoff provided in Section 11.1, agrees
to share with each Lender, any amount received pursuant to the exercise of its
right of setoff, such amounts to be shared in accordance with Section 11.2 as if
each Participant were a Lender. The Borrower agrees that each Participant shall
be entitled to the benefits of Sections 3.1, 3.2 and 3.4 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
Section 12.3; provided, however, that in no event shall the Borrower be
obligated to make any payment with respect to such Sections which is greater
than the amount that the Borrower would have paid to the Lender had no such
participating interest been sold.

          12.3 Assignments.

          12.3.1 Permitted Assignments. Any Lender may, in the ordinary course
of its business and in accordance with applicable law, at any time assign to one
or more commercial banks ("Purchasers") all or any part of its Commitment and
outstanding Syndicated Loans, together with its rights and obligations under the
Loan Documents with respect thereto; provided, however, that the amount of the
Commitment of the assigning Lender being assigned pursuant to each such
assignment (determined as of the date of such assignment) may be in the amount
of such Lender's entire Commitment but otherwise shall not be less than
$10,000,000 or an integral multiple of $1,000,000 in excess of that amount. Such
assignment shall be substantially in the form of Exhibit D hereto or in such
other form as may be agreed to by the parties thereto. The consent of the
Borrower and the Administrative Agent shall be required prior to an assignment
becoming effective (neither of which consents may be unreasonably withheld or
delayed); provided, however, that if a Default has occurred and is continuing,
the consent of the Borrower shall not be required.

          12.3.2 Effect; Effective Date. Upon (a) delivery to the Administrative
Agent of a notice of assignment, substantially in the form attached to Exhibit D
hereto (a "Notice of Assignment"), together with any consents required by
Section 12.3.1, and (b) payment of a $3,500 fee to the Administrative Agent for
processing such assignment, such assignment shall become effective on the
effective date specified in such Notice of Assignment. The Notice of Assignment
shall contain a representation by the Purchaser to the effect that none of the
consideration used to make the purchase of the Commitment and Syndicated Loans
under the applicable assignment agreement are "plan assets" as defined under
ERISA and that the rights and interests of the Purchaser in and under the Loan
Documents will not be "plan assets" under ERISA. On and after the effective date
of such assignment, such Purchaser shall for all purposes be a Lender party to
this Agreement and any other Loan Document executed by the Lenders and shall
have all the rights and obligations of a Lender under the Loan Documents, to the
same extent as if it were an original party hereto and thereto, and no further
consent or action by the Borrower, the Lenders or the Administrative Agent shall
be required to release the transferor Lender with respect to the percentage of
the Aggregate Commitment and Syndicated Loans assigned to such Purchaser. Upon
the consummation of any assignment to a Purchaser pursuant to this Section
12.3.2, the transferor Lender, the Administrative Agent, and the Borrower shall
make appropriate arrangements so that, if the transferor Lender desires that its
Syndicated Loans be evidenced by Syndicated Notes, replacement Syndicated Notes
are issued to such transferor Lender and, if the Purchaser desires that its
Syndicated Loans be evidenced by Syndicated Notes, new Syndicated Notes or, as
appropriate, replacement Syndicated Notes, are issued to such

                                       61
<PAGE>
Purchaser, in each case in principal amounts reflecting its Commitment, as
adjusted pursuant to such assignment.

          12.4 Designated Lenders.

          (a) Subject to the terms and conditions set forth in this Section
12.4(a), any Lender may from time to time elect to designate an Eligible
Designee to provide all or any part of the Syndicated Loans to be made by such
Lender pursuant to this Agreement; provided the designation of an Eligible
Designee by any Lender for purposes of this Section 12.4(a) shall be subject to
the approval of the Borrower (so long as no Default has occurred and is
continuing) and the Administrative Agent (which consents shall not be
unreasonably withheld or delayed). Upon the execution by the parties to each
such designation of an agreement in the form of Exhibit I hereto (a "Designation
Agreement") and the acceptance thereof by the Borrower (if required) and the
Administrative Agent, the Eligible Designee shall become a Designated Lender for
purposes of this Agreement. The Designating Lender shall thereafter have the
right to permit the Designated Lender to provide all or a portion of the
Syndicated Loans to be made by the Designating Lender pursuant to the terms of
this Agreement and the making of such Syndicated Loans or portion thereof shall
satisfy the obligation of the Designating Lender to the same extent, and as if,
such Syndicated Loan was made by the Designating Lender. As to any Syndicated
Loan made by it, each Designated Lender shall have all the rights a Lender
making such Syndicated Loan would have under this Agreement and otherwise;
provided, (x) that all voting rights under this Agreement shall be exercised
solely by the Designating Lender and (y) each Designating Lender shall remain
solely responsible to the other parties hereto for its obligations under this
Agreement, including the obligations of a Lender in respect of Syndicated Loans
made by its Designated Lender. If the Designating Lender's Syndicated Loans are
evidenced by Syndicated Notes, no additional Syndicated Notes shall be required
with respect to Syndicated Loans provided by a Designated Lender; provided,
however, to the extent any Designated Lender shall advance funds, the
Designating Lender shall be deemed to hold any Syndicated Notes in its
possession as an agent for such Designated Lender to the extent of the
Syndicated Loan funded by such Designated Lender. Such Designating Lender shall
act as administrative agent for its Designated Lender and give and receive
notices and communications hereunder. Any payments for the account of any
Designated Lender shall be paid to its Designating Lender as administrative
agent for such Designated Lender and neither the Borrower nor the Administrative
Agent shall be responsible for any Designating Lender's application of any such
payments. In addition, any Designated Lender may (i) with notice to, but without
the consent of the Borrower and the Administrative Agent, assign all or portions
of its interests in any Syndicated Loans to its Designating Lender or to any
financial institution consented to by the Borrower (so long as no Default has
occurred and is continuing) and the Administrative Agent providing liquidity
and/or credit facilities to or for the account of such Designated Lender and
(ii) subject to advising any such Person that such information is to be treated
as confidential in accordance with such Person's customary practices for dealing
with confidential, non-public information, disclose on a confidential basis any
non-public information relating to its Syndicated Loans to any rating agency,
commercial paper dealer or provider of any guarantee, surety or credit or
liquidity enhancement to such Designated Lender.

          (b) Each party to this Agreement hereby agrees that it shall not
institute against, or join any other person in instituting against any
Designated Lender any bankruptcy,

                                       62
<PAGE>
reorganization, arrangements, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law for one year
and a day after the payment in full of all outstanding senior indebtedness of
any Designated Lender; provided that the Designating Lender for each Designated
Lender hereby agrees to indemnify, save and hold harmless each other party
hereto for any loss, cost, damage and expense arising out of their inability to
institute any such proceeding against such Designated Lender. This Section
12.4(b) shall survive the termination of this Agreement.

          12.5 Dissemination of Information.

          The Borrower authorizes each Lender to disclose to any Participant or
Purchaser or any other Person acquiring an interest in the Loan Documents by
operation of law (each a "Transferee") and any prospective Transferee any and
all information in such Lender's possession concerning the creditworthiness of
the Borrower and its Subsidiaries; provided that each Transferee and prospective
Transferee agrees to be bound by Section 9.14 of this Agreement.

          12.6 Tax Treatment.

          If any interest in any Loan Document is transferred to any Transferee
which is organized under the laws of any jurisdiction other than the United
States or any State thereof, the transferor Lender shall cause such Transferee,
concurrently with the effectiveness of such transfer, to comply with the
provisions of Section 2.18.

                                  ARTICLE XIII
                                    NOTICES

          13.1 Giving Notice.

          (a) Except as otherwise permitted by Section 2.14(b) with respect to
telephonic notices or as elsewhere provided herein, all notices and other
communications provided to any party hereto under this Agreement or any other
Loan Document shall be in writing or by telex or by facsimile and addressed or
delivered to such party at its address set forth below its signature hereto or
at such other address as may be designated by such party in a notice to the
other parties. Any notice, if mailed and properly addressed with postage
prepaid, shall be deemed given when received; any notice, if transmitted by
telex or facsimile, shall be deemed given when transmitted (answerback confirmed
in the case of telexes).

          (b) The Borrower hereby agrees that the Administrative Agent may make
available to the Lenders materials and/or information provided by or on behalf
of the Borrower hereunder, including, but not limited to, any documents
furnished by the Borrower to the Administrative Agent pursuant to Section 6.1
(collectively, "Borrower Materials") by posting the Borrower Materials on
IntraLinks or another similar electronic system (the "Platform"). The Borrower
agrees that the Administrative Agent shall be entitled to treat any Borrower
Materials that are not marked "PUBLIC" as being suitable only for posting on the
portion of the Platform not designated "Public Investor". The Borrower
acknowledges that the distribution of material through an electronic medium is
not necessarily secure and that there are confidentiality and other risks
associated with such distribution. THE PLATFORM IS PROVIDED "AS IS" AND

                                       63
<PAGE>
"AS AVAILABLE." THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY
OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER
MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall the Administrative Agent or any of its officers, directors,
employees or agents (collectively, the "Agent Parties") have any liability to
the Borrower, any Lender or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower's or the Administrative Agent's transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final judgment to have resulted from the Gross Negligence or
willful misconduct of such Agent Party; provided, however, that in no event
shall any Agent Party have any liability to the Borrower, any Lender or any
other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).

          (c) Each Lender agrees that notice to it (as provided in the next
sentence) specifying that the Borrower Materials have been posted to the
Platform shall constitute effective delivery of the Borrower Materials to such
Lender for purposes of this Agreement or any other Loan Document. Each Lender
agrees to notify the Administrative Agent in writing (including by electronic
communication) from time to time of such Lender's e-mail address to which the
foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

          13.2 Change of Address.

          The Borrower, the Administrative Agent and any Lender may each change
the address for service of notice upon it by a notice in writing to the other
parties hereto.

                                  ARTICLE XIV
                                  COUNTERPARTS

          This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. Subject to
Section 4.1, this Agreement shall be effective when it has been executed by the
Borrower, the Administrative Agent and the Lenders and each party has notified
the Administrative Agent by telex or telephone that it has taken such action.

                                       64
<PAGE>
                                   ARTICLE XV
                             USA PATRIOT ACT NOTICE

          Each Lender hereby notifies the Borrower that, pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot Act"), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such
Lender to identify the Borrower in accordance with the Patriot Act.

                  [Remainder of this Page Intentionally Blank]

                                       65
<PAGE>
          IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative
Agent have executed this Agreement as of the date first above written.

                                        THE TJX COMPANIES, INC.,
                                        as the Borrower

                                        By: /s/ Mary B. Reynolds
                                            ------------------------------------
                                            Name: Mary B. Reynolds
                                                  ------------------------------
                                            Title: Vice President -- Finance,
                                                   Treasurer
                                                   -----------------------------
                                            Address:

                                            770 Cochituate Road
                                            Framingham, Massachusetts 01701
                                            Attn: Mary B. Reynolds, Vice
                                            President-Finance, Treasurer
                                            Telephone No.: (508) 390-2351
                                            Facsimile No.: (508) 390-2540
                                            E-mail: mary_reynolds@tjx.com

<PAGE>
                                        BANK OF AMERICA, N.A.,
                                        as a Lender and as Administrative Agent

                                        By: /s/ Amy Honey
                                            ------------------------------------
                                        Name: Amy Honey
                                        Title: Senior Vice President

                                        Address:
                                        901 Main Street, 64th Floor
                                        ----------------------------------------
                                        TX1-492-64-01
                                        ----------------------------------------
                                        Dallas, TX 75202
                                        ----------------------------------------
                                        Telephone No: 214.209.0193
                                                      --------------------------
                                        Facsimile No.: 214.209.0905
                                                       -------------------------
                                        E-mail: amy.honey@bankofamerica.com
                                                --------------------------------

<PAGE>
                                        JPMORGAN CHASE BANK, NATIONAL
                                        ASSOCIATION, as a Lender and as a
                                        Syndication Agent

                                        By: /s/ Barry R. Bergman
                                            ------------------------------------
                                        Name: Barry R. Bergman
                                        Title: Managing Director

                                        Address:
                                        JPMorgan Chase Bank, National
                                        Association
                                        ----------------------------------------
                                        270 Park Ave
                                        ----------------------------------------
                                        New York, NY 10017
                                        ----------------------------------------
                                        Attention: Barry Bergman
                                                   -----------------------------
                                        Telephone No.: (212) 270-0203
                                                       -------------------------
                                        Facsimile: (212) 270-6637
                                                   -----------------------------
                                        E-mail: Barry.Bergman@jpmorgan.com
                                                --------------------------------

<PAGE>
                                        THE BANK OF NEW YORK,
                                        as a Lender and as a Syndication Agent

                                        By: /s/ Johna M. Fidanza
                                            ------------------------------------
                                        Name:  Johna M. Fidanza
                                        Title: Vice President

                                        Address:

                                        One Wall Street
                                        19th Floor
                                        New York, New York 10286
                                        Attention: Johna M. Fidanza
                                        Telephone No: (212) 635-7870
                                        Facsimile No.: (212) 635-1483
                                        E-mail: jfidanza@bankofny.com

<PAGE>
                                       CITIZENS BANK OF MASSACHUSETTS, as a
                                       Lender and as a Documentation Agent

                                       By: /s/ Stephen F. Foley
                                           ------------------------------------
                                       Name:  Stephen F. Foley
                                       Title: Senior Vice President

                                       Address:
                                                28 State Street
                                       ----------------------------------------
                                                Boston, MA 02109
                                       ----------------------------------------

                                       ----------------------------------------
                                       Attention: Stephen F. Foley
                                                  -----------------------------
                                       Telephone No.: 617 994-7029
                                                      -------------------------
                                       Facsimile:     617 263-0439
                                                  -----------------------------
                                       E-mail: Stephen F. Foley@citizensbank.com
                                               ---------------------------------

<PAGE>
                                        KEYBANK NATIONAL ASSOCIATION, as a
                                        Lender and as a Documentation Agent

                                        By: /s/ Brendan A. Lawlor
                                            ------------------------------------
                                        Name:  Brendan A. Lawlor
                                        Title: Senior Vice President

                                        Address:
                                                 127 Public Square
                                        ----------------------------------------
                                                 Cleveland, OH 44114
                                        ----------------------------------------
                                                 Mail code: OH-01-27-0612
                                        ----------------------------------------
                                        Attention: Brendan A. Lawlor
                                                   -----------------------------
                                        Telephone No.: (216) 689-4086
                                                       -------------------------
                                        Facsimile:     (216) 689-4981
                                                   -----------------------------
                                        E-mail: brendan_a_lawlor@keybank.com
                                                --------------------------------

<PAGE>
                                        UNION BANK OF CALIFORNIA, N.A., as a
                                        Lender and as a Documentation Agent

                                        By: /s/ Theresa L. Rocha
                                            ------------------------------------
                                        Name: Theresa L. Rocha
                                        Title: Vice President

                                        Address:
                                        350 California Street, 9th Floor
                                        ----------------------------------------
                                        San Francisco, CA 94104
                                        ----------------------------------------

                                        ----------------------------------------
                                        Attention: Theresa L. Rocha
                                                   -----------------------------
                                        Telephone No.: (415) 705-7594
                                                       -------------------------
                                        Facsimile: (415) 705-7085
                                                   -----------------------------
                                        E-mail: theresa.rocha@uboc.com
                                                --------------------------------

<PAGE>
                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as a Lender

                                        By: /s/ Caroline Gates
                                            ------------------------------------
                                        Name: Caroline Gates
                                        Title: VP

                                        Address:
                                        70 East 55th Street, 11th Floor
                                        ----------------------------------------
                                        New York, NY 10022
                                        ----------------------------------------

                                        ----------------------------------------
                                        Attention: Caroline Gates/Nicole Edwards
                                                   -----------------------------
                                        Telephone No.: 212-836-4034
                                                       -------------------------
                                        Facsimile: 212-593-5241
                                                   -----------------------------
                                        E-mail: caroline.e.gates@wellsfargo.com
                                                --------------------------------

<PAGE>
                                        FIFTH THIRD BANK, as a Lender

                                        By: /s/ David C. Melin
                                            ------------------------------------
                                        Name:  David C. Melin
                                        Title: Vice President

                                        Address:
                                        38 Fountain Square Plaza
                                        ----------------------------------------
                                        MD 109054
                                        ----------------------------------------
                                        Cincinnati, OH 45263
                                        ----------------------------------------
                                        Attention: Brooke Balcom
                                                   -----------------------------
                                        Telephone No.: 513-534-3853
                                                       -------------------------
                                        Facsimile: 513-534-5947
                                                   -----------------------------
                                        E-mail: Brooke.Balcom@53.com
                                                --------------------------------

<PAGE>
                                        THE BANK OF NOVA SCOTIA, as a Lender

                                        By: /s/ Todd Meller
                                            ------------------------------------
                                        Name:  Todd Meller
                                        Title: Managing Director

                                        Address:
                                        One Liberty Plaza
                                        ----------------------------------------
                                        New York, New York 10006
                                        ----------------------------------------

                                        ----------------------------------------
                                        Attention:
                                                   -----------------------------
                                        Telephone No.: 212-225-5096
                                                       -------------------------
                                        Facsimile: 212-225-5254
                                                   -----------------------------
                                        E-mail: todd_meller@scotiacapital.com
                                                --------------------------------

<PAGE>
                                        MELLON BANK, N.A., as a Lender

                                        By: /s/ Thomas J. Tarasovich, Jr.
                                            ------------------------------------
                                        Name: Thomas J. Tarasovich, Jr.
                                        Title: Assistance Vice President

                                        Address:
                                                One Mellon Center
                                        ----------------------------------------
                                                Room 4535
                                        ----------------------------------------
                                                Pittsburgh, PA 15258
                                        ----------------------------------------
                                        Attention: Thomas J. Tarasovich, Jr.,
                                                   Assistant Vice President
                                                   -----------------------------
                                        Telephone No.: 412-236-2790
                                                       -------------------------
                                        Facsimile:  412-236-6112
                                                   -----------------------------
                                        E-mail: tarasovich.t@mellon.com
                                                --------------------------------

<PAGE>
                                        PNC BANK, NATIONAL ASSOCIATION, as a
                                        Lender

                                        By: /s/ Donald V. Davis
                                            ------------------------------------
                                        Name: Donald V. Davis
                                        Title: Managing Director

                                        Address:
                                                 70 East 55th Street
                                        ----------------------------------------
                                                 21st Floor
                                        ----------------------------------------
                                                 New York, NY 10022
                                        ----------------------------------------
                                        Attention:
                                                   -----------------------------
                                        Telephone No.: (212) 303-0034
                                                       -------------------------
                                        Facsimile: (212) 303-0064
                                                   -----------------------------
                                        E-mail: dv.davis@pncbank.com
                                                --------------------------------

<PAGE>
                                        SOVEREIGN BANK, as a Lender

                                        By: /s/ Judith C.E. Kelly
                                            ------------------------------------
                                        Name:  Judith C.E. Kelly
                                        Title: Senior Vice President

                                        Address:
                                                  75 State Street
                                        ----------------------------------------
                                                  MA1 SST 04-10
                                        ----------------------------------------
                                                  Boston, MA 02109
                                        ----------------------------------------
                                        Attention: Judith C.E. Kelly
                                                   -----------------------------
                                        Telephone No.: 617-757-5658
                                                       -------------------------
                                        Facsimile: 617-346-7330
                                                   -----------------------------
                                        E-mail: jkelly@sovereignbank.com
                                                --------------------------------

<PAGE>
                                        SUNTRUST BANK, N.A., as a Lender

                                        By: /s/ Laura Kahn
                                            ------------------------------------
                                        Name:  Laura Kahn
                                        Title: Managing Director

                                        Address:
                                        303 Peachtree Street, NE
                                        ----------------------------------------
                                        10th Floor, Mailcode 1928
                                        ----------------------------------------
                                        Atlanta, GA 30308
                                        ----------------------------------------
                                        Attention: Laura Kahn
                                                   -----------------------------
                                        Telephone No.: 404-588-7705
                                                       -------------------------
                                        Facsimile: 404-658-4905
                                                   -----------------------------
                                        E-mail: laura.kahn@suntrust.com
                                                --------------------------------

<PAGE>
                                        U.S. BANK NATIONAL ASSOCIATION, as a
                                        Lender

                                        By: /s/ Heather Hinkelman
                                            ------------------------------------
                                        Name: Heather Hinkelman
                                        Title: Banking Officer

                                        Address:
                                        One US Bank Plaza
                                        ----------------------------------------
                                        St. Louis, MO 63101
                                        ----------------------------------------

                                        ----------------------------------------
                                        Attention: Heather Hinkelman
                                                   -----------------------------
                                        Telephone No.: 314-418-8673
                                                       -------------------------
                                        Facsimile: 314-418-3859
                                                   -----------------------------
                                        E-mail: heather.hinkelman@usbank.com
                                                --------------------------------

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