Document:

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                                                                    EXHIBIT 10.2

                         CONTROL DELIVERY SYSTEMS, INC.

                             1997 STOCK OPTION PLAN

1.   PURPOSE
     -------

     The purpose of this 1997 Stock Option Plan (the "Plan") is to advance the
interests of Control Delivery Systems, Inc. (the "Company") by enhancing the
ability of the Company and its subsidiaries to attract and retain directors,
employees, consultants or advisers who are in a position to make significant
contributions to the success of the Company, to reward them for their
contributions and to encourage them to take into account the long-term interests
of the Company.

     The Plan provides for the award of options to purchase shares of the
Company's common stock ("Stock") and for the award of stock appreciation rights
("SARs") based on Stock.  Options granted pursuant to the Plan may be incentive
stock options as defined in section 422 of the Internal Revenue Code of 1986 (as
from time to time amended, the "Code") (any option that is intended to qualify
as an incentive stock option being referred to herein as an "incentive option"),
or options that are not incentive options, or both.  Options granted pursuant to
the Plan shall be presumed to be non-incentive options unless expressly
designated as incentive options.

2.   ELIGIBILITY FOR AWARDS
     ----------------------

     Persons eligible to receive awards under the Plan shall be all directors,
including directors who are not employees, of the Company and all executive
officers of the Company and its subsidiaries and other employees, consultants
and advisers who, in the opinion of the Board, are in a position to make a
significant contribution to the success of the Company and its subsidiaries.
Incentive options shall be granted only to "employees" as defined in the
provisions of the Code or regulations thereunder applicable to incentive stock
options.  A subsidiary for purposes of the Plan shall be a corporation in which
the Company owns, directly or indirectly, stock possessing 50% or more of the
total combined voting power of all classes of stock.  Persons selected for
awards under the Plan are referred to herein as "participants."

3.   ADMINISTRATION
     --------------

     The Plan shall be administered by the Board of Directors (the "Board") of
the Company.  The Board shall have authority, not inconsistent with the express
provisions of the Plan, (a) to grant awards consisting of options or SARs, or
both, to such participants as the Board may select; (b) to determine the time or
times when awards shall be granted and the number of shares of Stock subject to
each award; (c) to determine which options are, and which options are not,
incentive options; (d) to determine the terms and conditions of each award; (e)
to prescribe the form or forms of any instruments evidencing awards and any
other
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instruments required under the Plan and to change such forms from time to time;
(f) to adopt, amend and rescind rules and regulations for the administration of
the Plan; and (g) to interpret the Plan and to decide any questions and settle
all controversies and disputes that may arise in connection with the Plan. Such
determinations of the Board shall be conclusive and shall bind all parties.
Subject to Section 8 the Board shall also have the authority, both generally and
in particular instances, to waive compliance by a participant with any
obligation to be performed by the participant under an award, to waive any
condition or provision of an award, and to amend or cancel any award (and if an
award is canceled, to grant a new award on such terms as the Board shall
specify) except that the Board may not take any action with respect to an
outstanding award that would adversely affect the rights of the participant
under such award without such participant's consent. Nothing in the preceding
sentence shall be construed as limiting the power of the Board to make
adjustments required by Section 5(c) and Section 6(j).

     The Board may, in its discretion, delegate some or all of its powers with
respect to the Plan to a committee (the "Committee"), in which event all
references in this Plan (as appropriate) to the Board shall be deemed to refer
to the Committee.  The Committee, if one is appointed, shall consist of at least
two directors.  A majority of the members of the Committee shall constitute a
quorum, and all determinations of the Committee shall be made by a majority of
its members.  Any determination of the Committee under the Plan may be made
without notice or meeting of the Committee by a writing signed by a majority of
the Committee members.

4.   EFFECTIVE DATE AND TERM OF PLAN
     -------------------------------

     The Plan shall become effective on the date on which it is approved by the
shareholders of the Company.  Grants of awards under the Plan may be made prior
to that date (but contemporaneous with or after Board adoption of the Plan),
subject to approval of the Plan by such shareholders.

     No awards shall be granted under the Plan after the completion of ten years
from the date on which the Plan was adopted by the Board, but awards previously
granted may extend beyond that date.

5.   SHARES SUBJECT TO THE PLAN
     --------------------------

     (a) Number of Shares.  Subject to adjustment as provided in Section 5(c),
         ----------------
the aggregate number of shares of Stock that may be delivered upon the exercise
of awards granted under the Plan shall be 15,000.  If any award granted under
the Plan terminates without having been exercised in full, or upon exercise is
satisfied other than by delivery of Stock, the number of shares of Stock as to
which such award was not exercised shall be available for future grants within
the limits set forth in this Section 5(a).

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     The maximum number of shares for which options may be granted to any
individual over the life of the Plan shall be 7,500.  The maximum number of
shares subject to SARs granted to any individual over the life of the Plan shall
likewise be 7,500].  The per-individual limitations described in this paragraph
shall be construed and applied consistent with the rules and regulations under
Section 162(m) of the Code.

     (b) Shares to be Delivered.  Shares delivered under the Plan shall be
         ----------------------
authorized but unissued Stock or, if the Board so decides in its sole
discretion, previously issued Stock acquired by the Company and held in its
treasury.  No fractional shares of Stock shall be delivered under the Plan.

     (c) Changes in Stock.  In the event of a stock dividend, stock split or
         ----------------
combination of shares, recapitalization or other change in the Company's capital
stock, the number and kind of shares of Stock subject to awards then outstanding
or subsequently granted under the Plan, the exercise price of such awards, the
maximum number of shares of Stock that may be delivered under the Plan, and
other relevant provisions shall be appropriately adjusted by the Board, whose
determination shall be binding on all persons.

     The Board may also adjust the number of shares subject to outstanding
awards and the exercise price and the terms of outstanding awards to take into
consideration material changes in accounting practices or principles,
extraordinary dividends, consolidations or mergers (except those described in
Section 6(j)), acquisitions or dispositions of stock or property or any other
event if it is determined by the Board that such adjustment is appropriate to
avoid distortion in the operation of the Plan, provided that no such adjustment
shall be made in the case of an incentive option, without the consent of the
participant, if it would constitute a modification, extension or renewal of the
option within the meaning of section 424(h) of the Code.

6.   TERMS AND CONDITIONS OF OPTIONS AND SARs
     ----------------------------------------

     (a) Exercise Price of Options and SARs.  The exercise price of each option
         ----------------------------------
or SAR shall be determined by the Board but in the case of an incentive option
shall not be less than 100% (110%, in the case of an incentive option granted to
a ten-percent shareholder) of the fair market value of the Stock at the time the
option is granted; nor shall the exercise price be less, in the case of an
original issue of authorized stock, than par value.  For this purpose, "fair
market value" in the case of incentive options shall have the same meaning as it
does in the provisions of the Code and the regulations thereunder applicable to
incentive options; and "ten-percent shareholder" shall mean any participant who
at the time of grant owns directly, or by reason of the attribution rules set
forth in section 424(d) of the Code, is deemed to own stock possessing more than
10% of the total combined voting power of all classes of stock of the Company or
of any of its parent or subsidiary corporations.

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     (b) Duration of Options and SARs.  Options and SARs shall be exercisable
         ----------------------------
during such period or periods as the Board may specify.  The latest date on
which an option or SAR may be exercised (the "Final Exercise Date") shall be the
date that is ten years (five years, in the case of an incentive option granted
to a "ten-percent shareholder" as defined in (a) above) from the date the option
or SAR was granted or such earlier date as the Board may specify at the time the
option or SAR is granted.

     (c)  Exercise of Options and SARs.
          ----------------------------

     (1)  Options and SARs shall become exercisable at such time or times and
          upon such conditions as the Board shall specify.  In the case of an
          option or an SAR not immediately exercisable in full, the Board may at
          any time accelerate the time at which all or any part of the option or
          SAR may be exercised.

     (2)  Options and SARs may be exercised only in writing.  Written notice of
          exercise must be signed by the proper person and furnished to the
          Company, together with (i) such documents as the Board may require and
          (ii) in the case of options, payment in full as specified below in
          Section 6(d) for the number of shares for which the option is
          exercised.

     (3)  The delivery of Stock upon the exercise of an option or an SAR shall
          be subject to compliance with (i) applicable federal and state laws
          and regulations, (ii) if the outstanding Stock is at the time listed
          on any stock exchange, the listing requirements of such exchange, and
          (iii) Company counsel's approval of all other legal matters in
          connection with the issuance and delivery of such Stock. If the sale
          of Stock has not been registered under the Securities Act of 1933, as
          amended, the Company may require, as a condition to exercise of the
          option or SAR, such representations or agreements as counsel for the
          Company may consider appropriate to avoid violation of such Act and
          may require that the certificates evidencing such Stock bear an
          appropriate legend restricting transfer.

     (4)  In the case of an option that is not an incentive option or an SAR,
          the Board shall have the right to require that the participant
          exercising the option remit to the Company an amount sufficient to
          satisfy any federal, state, or local withholding tax requirements (or
          make other arrangements satisfactory to the Company with regard to
          such taxes) prior to the delivery of any Stock pursuant to the
          exercise of the option.  If permitted by the Board, either at the time
          of the grant of the option or SAR or the time of exercise, the
          participant may elect, at such time and in such manner as the Board
          may prescribe, to satisfy such withholding obligation by (i)
          delivering to the Company Stock (which in the case of Stock acquired
          from the Company shall have been owned by the participant for at least
          six months prior to the delivery date) having a fair market

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          value equal to such withholding obligation, or (ii) requesting that
          the Company withhold from the shares of Stock to be delivered upon the
          exercise a number of shares of Stock having a fair market value equal
          to such withholding obligation.

          In the case of an incentive option, if at the time the option is
          exercised the Board determines that under applicable law and
          regulations the Company could be liable for the withholding of any
          federal or state tax with respect to a disposition of the Stock
          received upon exercise, the Board may require as a condition of
          exercise that the participant exercising the option agree (i) to
          inform the Company promptly of any disposition (within the meaning of
          section 424(c) of the Code and the regulations thereunder) of Stock
          received upon exercise, and (ii) to give such security as the Board
          deems adequate to meet the potential liability of the Company for the
          withholding of tax, and to augment such security from time to time in
          any amount reasonably deemed necessary by the Board to preserve the
          adequacy of such security.

     (5)  If an option or an SAR is exercised by the executor or administrator
          of a deceased participant, or by the person or persons to whom the
          option has been transferred by the participant's will or the
          applicable laws of descent and distribution, the Company shall be
          under no obligation to deliver Stock pursuant to such exercise until
          the Company is satisfied as to the authority of the person or persons
          exercising the option or SAR.

     (d) Payment for and Delivery of Stock.  Stock purchased upon exercise of an
         ---------------------------------
option under the Plan shall be paid for as follows:

     (i)  in cash or by personal check, certified check, bank draft or money
          order payable to the order of the Company; or

     (ii  if so permitted by the Board (which, in the case of an incentive
          option, shall specify the method of payment at the time of grant), (A)
          through the delivery of shares of Stock (which, in the case of Stock
          acquired from the Company, shall have been held for at least six
          months prior to delivery) having a fair market value on the last
          business day preceding the date of exercise equal to the purchase
          price or (B) by delivery of a promissory note of the participant to
          the Company, such note to be payable on such terms as are specified by
          the Board or (C) by delivery of an unconditional and irrevocable
          undertaking by a broker to deliver promptly to the Company sufficient
          funds to pay the exercise price or (D) by any combination of the
          permissible forms of payment; provided, that if the Stock delivered
          upon exercise of the option is an original issue of authorized Stock,
          at least so much of the exercise price as represents the par value of
          such Stock shall be paid other than by a personal check or promissory
          note of the person exercising the option.

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     (e) Stock Appreciation Rights.  The Board in its discretion may grant SARs
         -------------------------
either in tandem with or independent of options awarded under the Plan.  Except
as hereinafter provided, each SAR shall entitle the participant to receive upon
exercise, with respect to each share of Stock to which the SAR relates, the
excess of (i) the share's value on the date of exercise over (ii) the share's
fair market value on the date the SAR was granted.  For purposes of clause (i),
"value" shall mean fair market value; provided, that the Board may adjust such
value to take into account dividends on the Stock and may also grant SARs that
provide, in such limited circumstances following a change in control of the
Company (as determined by the Board) as the Board may specify, that "value" for
purposes of clause (i) is to be determined by reference to an average value for
the Stock during a period immediately preceding the change in control, all as
determined by the Board.  The amount payable to a participant upon exercise of
an SAR shall be paid either in cash or in shares of Stock, as the Board
determines.  Each SAR shall be exercisable during such period or periods and on
such terms as the Board may specify.  In no event, however, shall an SAR be
exercisable after the date that is ten years from the date of grant.

     (f) Rights as Shareholder.  A participant shall not have the rights of a
         ---------------------
shareholder with regard to awards under the Plan except as to Stock actually
received by the participant under the Plan.

     (g) Nontransferability of Awards.  Except as the Board may otherwise
         ----------------------------
determine, no award may be transferred other than by will or by the laws of
descent and distribution, and during a participant's lifetime an award may be
exercised only by the participant.

     (h) Death.  If a participant dies, each option and SAR held by the
         -----
participant immediately prior to death may be exercised, to the extent it was
exercisable immediately prior to death, by the participant's executor or
administrator or by the person or persons to whom the option or SAR is
transferred by will or the applicable laws of descent and distribution, at any
time within the one-year period (or such longer or shorter period as the Board
may determine) beginning with the date of the participant's death but in no
event beyond the Final Exercise Date.  All options and SARs held by a
participant immediately prior to death that are not then exercisable shall
terminate on the date of death.

     (i) Termination of Service Other Than By Death.  If an employee's
         ------------------------------------------
employment with the Company and its subsidiaries terminates for any reason other
than by death, all options and SARs held by the employee that are not then
exercisable shall terminate.  Options and SARs that are exercisable on the date
employment terminates shall continue to be exercisable for a period of three
months (or such longer period as the Board may determine, but in no event beyond
the Final Exercise Date) unless the employee was discharged for cause that in
the opinion of the Board casts such discredit on the employee as to justify
termination of the employee's options and SARs.  After completion of the post-
termination exercise period, such options and SARs shall terminate to the extent
not previously exercised, expired or

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terminated. For purposes of this Section 6(i), employment shall not be
considered terminated (i) in the case of sick leave or other bona fide leave of
absence approved for purposes of the Plan by the Board, so long as the
employee's right to reemployment is guaranteed either by statute or by contract,
or (ii) in the case of a transfer of employment between the Company and a
subsidiary or between subsidiaries, or to the employment of a corporation (or a
parent or subsidiary corporation of such corporation) issuing or assuming an
option or SAR in a transaction to which section 424(a) of the Code applies, or
(iii) if the Board of Directors shall consent to the continuation of such award
and such award shall not be an incentive stock option, in the case of the
employee's continued service to the Company as a consultant, adviser or
director.

     In the case of a participant who is not an employee, provisions relating to
the exercisability of options and SARs following termination of service shall be
specified in the award.  If not so specified, all options and SARs held by such
participant that are not then exercisable shall terminate upon termination of
service.  Options and SARs that are exercisable on the date the participant's
service as a director, consultant or adviser terminates shall continue to be
exercisable for a period of three months (or such longer period as the Board may
determine, but in no event beyond the Final Exercise Date) unless the director,
consultant or adviser was terminated for cause that in the opinion of the Board
casts such discredit on him or her as to justify termination of his or her
options and SARs.  After completion of the post-termination exercise period,
such options and SARs shall terminate to the extent not previously exercised,
expired or terminated.

     (j) Mergers, etc.  In the event of a consolidation or merger in which the
         ------------
Company is not the surviving corporation or which results in the acquisition of
substantially all the Company's outstanding Stock by a single person or entity
or by a group of persons and/or entities acting in concert, or in the event of
the sale or transfer of substantially all the Company's assets, all outstanding
awards shall thereupon terminate, provided that all outstanding awards shall
become exercisable immediately prior to consummation of such merger,
consolidation or sale of assets unless, if there is a surviving or acquiring
corporation, the Board has arranged, subject to consummation of the merger,
consolidation or sale of assets, for the assumption of the awards or the grant
to participants of replacement awards by that corporation or an affiliate of
that corporation, which awards in the case of incentive options shall satisfy
the requirements of section 424(a) of the Code.

     The Board may grant awards under the Plan in substitution for awards held
by directors, employees, consultants or advisers of another corporation who
concurrently become directors, employees, consultants or advisers of the Company
or a subsidiary of the Company as the result of a merger or consolidation of
that corporation with the Company or a subsidiary of the Company, or as the
result of the acquisition by the Company or a subsidiary of the Company of
property or stock of that corporation.  The Company may direct that substitute
awards be granted on such terms and conditions as the Board considers
appropriate in the circumstances.

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7.   NO EMPLOYMENT OR OTHER RIGHTS
     -----------------------------

     Neither the adoption of the Plan nor the grant of awards shall confer upon
any participant any right to continue as an employee or director of, or
consultant or adviser to, the Company or any parent or subsidiary or affect in
any way the right of the Company or parent or subsidiary to terminate them at
any time.  Except as specifically provided by the Board in any particular case,
the loss of existing or potential profit in awards granted under this Plan shall
not constitute an element of damages in the event of termination of the
relationship of a participant even if the termination is in violation of an
obligation of the Company to the participant by contract or otherwise.

8.   EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION
     ---------------------------------------------------------------

     Neither adoption of the Plan nor the grant of awards to a participant shall
affect the Company's right to make awards to such participant that are not
subject to the Plan, to issue to such participant Stock as a bonus or otherwise,
or to adopt other plans or arrangements under which Stock may be issued.

     The Board may at any time discontinue granting awards under the Plan.  With
the consent of the participant, the Board may at any time cancel an existing
award in whole or in part and grant another award for such number of shares as
the Board specifies.  The Board may at any time or times amend the Plan or any
outstanding award for the purpose of satisfying the requirements of section 422
of the Code or of any changes in applicable laws or regulations or for any other
purpose that may at the time be permitted by law, or may at any time terminate
the Plan as to further grants of awards, but no such amendment shall adversely
affect the rights of any participant (without the participant's consent) under
any award previously granted.

                                       8<PAGE>

                                                                    EXHIBIT 10.3

The following is a draft proposal and does not constitute a commitment on the
part of the herein named Lessor to lease the subject premises to the herein
named Lessee.  The Lessor reserves the right to change or withdraw this proposal
without notice at any time prior to the execution by the Lessor of a mutually
satisfactory lease agreement.

                         STANDARD FORM COMMERCIAL LEASE
                         ------------------------------

1.  PARTIES
     (fill in)
          Rita A. Cannistraro, as Trustee of Metro Realty Trust, 80 Rosedale
          Road, Watertown, MA 02172.

          LESSOR, which expression shall include her heirs, successors, and
          assigns where the context so admits does hereby lease to Control
          Delivery Systems, Inc., a Delaware Corporation, of 80 Rosedale Rd.
          Watertown, MA

          LESSEE, which expression shall include its successors, executors,
          administrators, and assigns where the context so admits, and the
          LESSEE hereby leases the following described premises:

2.  PREMISES
     (fill in and include,
     if applicable, suite
     number, floor
     number, and
     square feet)

               The first floor of the building at 313 Pleasant Street,
               Watertown, MA, comprising approx. 11,250 rentable square feet
               (including walls and attributable common areas), as shown on
               Exhibit A hereto.  The building consists of approximately 52, 785
               square feet.  Together with the right to use in common, with
               other entitled thereto, the hallways, stairways, necessary for
               access to said leased premises.

3.  TERM
     (fill in)
          The term of this lease shall be for    SEE 22A.

4.  RENT
     (fill in)
          The LESSEE shall pay to the LESSOR rent at the rate of    SEE 22B for
          RENT.

5.  SECURITY
     DEPOSIT
     (fill in)

          Upon the execution of this lease, the LESSEE shall pay to the LESSOR
          the amount of ($13,125.00) dollars, which shall be held as a security
          for the LESSEE's performance as herein provided and refunded to the
          LESSEE at the end of this lease subject to the LESSEE's satisfactory
          compliance with the conditions hereof.

6.  RENT
     ADJUSTMENT
     (fill in)
          SEE 22.B.  for ADDITIONAL RENT.

7.  UTILITIES
     (fill in or delete)
     and services

          LESSEE shall pay for all LESSEE's utilities, water and sewer use
          charges, including heating fuel and electricity and air conditioning.
          Continued in 22.C.  LESSOR agrees to furnish reasonable heat to the
          leased premises, the hallways.
<PAGE>

10.  FIRE
     INSURANCE

          The LESSEE shall not permit any use of the leased premises which will
          make voidable any insurance on the property of which the lease
          premises are a part, or on the contents of said property or which
          shall be contrary to any law or regulation from time to time
          established by the New England Fire Insurance Rating Association, or
          any similar body succeeding to its powers.  The LESSEE shall on demand
          reimburse the LESSOR, and all other tenants, all extra insurance
          premiums caused by the LESSEE's use of the premises.

11.  MAINTENANCE
     OF PREMISES

          The LESSEE agrees to maintain the leased premises in the same
          condition as they are at the commencement of the term or as they may
          be put in during the term of this lease, reasonable wear and tear,
          damage by fire and other casualty only excepted, and whenever
          necessary, to replace plate glass and other glass therein,
          acknowledging that the leased premises are now in good order and the
          glass whole. The LESSEE shall not permit the leased premises to be
          overloaded, damaged, stripped, or defaced nor suffer any waste. LESSEE
          shall obtain written consent of LESSOR before erecting any sign on the
          premises. Continued in 22.K.

12.  ALTERATIONS-
     ADDITIONS

          The LESSEE shall not make structural alterations or additions to the
          leased premises, but may make non-structural alterations provided the
          LESSOR consents thereto in writing, which consent shall not be
          unreasonably withheld or delayed.  All such allowed alterations shall
          be at LESSEE's expense and shall be in quality at least equal to the
          present construction.  LESSEE shall not permit any mechanics' liens,
          or similar liens, to remain upon the leased premises for labor and
          material furnished to LESSEE or claimed to have been performed at the
          direction of LESSEE and shall cause any such lien to be released of
          record forthwith without cost to LESSOR.  Any alterations or
          improvements made by the LESSEE shall become the property of the
          LESSOR at the termination of occupancy as provided herein.

13.  ASSIGNMENT-
     SUBLEASING

          The LESSEE shall not assign or sublet the whole or any part of the
          leased premises without LESSOR's prior written consent, which consent
          shall not be unreasonably withheld or delayed.  Notwithstanding such
          consent, LESSEE shall remain liable to LESSOR for the payment of all
          rent and for the full performance of the covenants and conditions of
          this lease, with respect to any assignments or subletting for which
          the consent of Lessor is required.
          Continued in 22.L.

14.  SUBORDINATION

          This lease shall be subject and subordinate to any and all mortgages,
          deeds of trust and other instruments in the nature of a mortgage, now
          or at any time hereafter, a lien or liens on the property of which the
          leased premises are a part and the LESSEE shall, when requested,
          promptly execute and deliver such written instruments as shall be
          necessary to show the subordination of this lease to said mortgages,
          deeds of trust or other such instruments in the nature of a mortgage,
          provided that such instrument recognizes Lessee's rights hereunder.

15.  LESSOR'S
     ACCESS
          The LESSOR or agents of the LESSOR may, at reasonable times, enter to
          view the leased premises and may remove placards and signs not
          approved and affixed as herein provided, and make repairs and
          alternations as LESSOR should elect to do and may show the leased
          premises to other, and at any time within three (3) months before the
          expiration of the term, may affix to any suitable part of the leased

                                       2
<PAGE>

          premises a notice for letting or selling the leased premises or
          property of which the leased premises are a part and keep the same so
          affixed without hindrance or molestation.  Lessor shall not
          unreasonably interfere with the conduct of Lessee's business in
          performing such activities.

16.  INDEMNIFICATION
     AND LIABILITY
     (fill in)

          The LESSEE shall be liable for all loss and damage to Lessee's
          property occasioned by the use or escape of water or by the bursting
          of pipes, unless such loss is caused by the neglect of the LESSOR.
          The removal of snow and ice from the sidewalks bordering upon the
          leased premises shall be Lessor's responsibility.

17.  LESSEE'S
     LIABILITY
     INSURANCE
     (fill in)

          The LESSEE shall maintain with respect to the leased premises and the
          property, of which the leased premises are a part, comprehensive
          public liability insurance in the amount of $1,000,000. with property
          damage insurance in limits of $500,000 (on Lessee's personal property)
          in responsible companies qualified to do business in Massachusetts and
          in good standing therein insuring the LESSOR as well as LESSEE against
          injury to persons or damage to property as provided.  The LESSEE shall
          deposit with the LESSOR certificates for such insurance at or prior to
          the ________________________.

19.  DEFAULT
     AND BANKRUPTCY
          In the event that:
          (a)  The LESSEE shall in the payment of any installment of rent or
               other sum herein specified and default shall continue for ten
               (10) days after written notice thereof; or

          (b)  The LESSEE shall default in the observance or performance of any
               other of the LESSEE's covenants, agreements, or obligations
               hereunder and such default shall not be corrected within thirty
               (30) days after written notice thereof; or

          (c)  The LESSEE shall be declared bankrupt or insolvent according to
               law, or, if any assignment shall be made of LESSEE's property for
               the benefit of creditors,

          then the LESSOR shall have the right thereafter, while such default
          continues, to re-enter and take complete possession of the leased
          premises, to declare the term of this lease ended, and remove the
          LESSEE's affects, without prejudice to any remedies which might be
          otherwise used for arrears of rent or other default.  The LESSEE shall
          indemnify the LESSOR against all loss of rent and other payments which
          the LESSOR may reasonably incur by reason of such termination during
          the residue of the term.  If the LESSEE shall default, after
          reasonable notice thereof, in the observance or performed under or by
          virtue of any of the provisions in any article of this lease, the
          LESSOR, without being under any obligation to do so and without
          thereby waiving such default, may remedy such default for the account
          and at the expense of the LESEE.  If the LESSOR makes any expenditures
          or incurs any obligations for the payment of money in connection
          therewith, including but not limited to, reasonable attorney's fees in
          instituting, prosecuting or defending any action or proceeding, such
          sums paid or obligations insured, with interest at the rate of six (6)
          per cent annum and costs, shall be paid to the LESSOR by the LESSEE as
          additional rent.

20.  NOTICE
     (fill in)

          Any notice from the LESSOR to the LESSEE relating to the leased
          premises or to the occupancy thereof, shall be deemed duly served, if
          mailed to the leased premises, registered or certified mail, return
          receipt requested, postage prepaid, *addressed to the LESSEE.  Any

                                       3
<PAGE>

          notice from the LESSEE to the LEEOR relating to the leased premises or
          to the occupancy thereof, shall be deemed duly served, if mailed to
          the LESSOR by registered or certified mail, return receipt requested,
          postage prepaid*, addressed to the LESSOR at such address as the
          LESSOR may from time to time advise in writing.  All rent and notices
          shall be paid and sent to the LESSOR at 80 Rosedale Road, Watertown,
          MA 02172.

          *or other recognized overnight delivery service that provides a return
          receipt.

21.  SURRENDER

          The LESSEE shall at the expiration or other termination of this lease
          remove all LESSEE's goods and  effects from the lease premises,
          (including, without hereby limiting the generality of the foregoing,
          all signs and lettering affixed or painted by the LESSEE, either
          inside or outside the leased premises).  LESEE shall delivery to the
          LESSOR the leased premises and all keys, locks hereto, and other
          fixtures connected therewith and all alternations and additions made
          to or upon the leased premises, in the same condition as they were at
          the commencement of the term, or s they were put in during the term
          hereof, reasonable wear and tear and damage by fire or other casualty
          only excepted.  IN the event of the LESSEE's failure to remove any of
          LESSEE's property from the premises, LESSOR is hereby authorized,
          without liability to LESSEE for loss or damage thereto, and at the
          sole risk of LESSEE, to remove and store any of the property at
          LESSEE's expense, or to retain same under LESSOR's control or to sell
          at public or private sale, without notice any or all of the property
          not so removed and to apply the net proceeds of such sale to the
          payment of any sum due hereunder, or to destroy such property.

22.  OTHER
     PROVISION

          It is also understood and agreed that the attached RIDER and PLAN are
          parts of this lease.

22.A.  TERM:

          The initial term of this Lease shall be for four (4) years and sixteen
          (16) days, commencing on November 15, 1999 and ending November 30,
          2003.
          Notwithstanding the foregoing, in the event the present tenant holds
          over in violation of its agreement to vacate the premises on November
          10, 1999, the Lessor will use its best efforts to evict the existing
          tenant from the premises and the commencement of the term of this
          Lease shall be delayed accordingly.

22.B.  BASE RENT; ADDITIONAL RENT.

BASE RENT:

          For the first two years of the initial lease term (through November
          30, 2001), the Lessee shall pay to the Lessor base rent at the rate of
          One Hundred Fifty-Seven Thousand Five Hundred Dollars ($157,500) per
          year, payable in advance in monthly installments of Thirteen Thousand
          One Twenty-Five Dollars ($13,125) on the first day of each month.
          Lessee shall pay the first partial month's base rent, which shall be
          equal to $6,562.50 (one half the monthly rent) upon execution of this
          Lease.

          The base rent for the third year of the initial lease term (December
          1, 2001 through November 30, 2002) shall be increased in the event the
          Consumer Price Index, All Urban Consumers, All Items, (1982-84=100),
          Boston, MA, published by the Bureau of Labor Statistics, or any
          comparable successor or substitute index designated by the Lessor, for
          the month of November, 2001, reflects an increase in the cost of
          living over and above the cost of living as reflected in the Consumer
          Price Index for the Boston area for the month November, 1999.  The
          percentage increase in the amount of the base rent shall be equal to
          the percentage increase in the CPI over such period.  Pending Lessor's
          determination of the rent increase, Lessee shall pay its current base
          rent amount when due for December, 2001, and Lessee shall pay any
          further amount due within 5 business days of its receipt of Lessor's
          notice of the new rent amount.  There shall be no base rent increase
          for the fourth year of the initial lease term; Lessee shall pay the
          same base rental as paid during the third year.

                                       4
<PAGE>

ADDITIONAL RENT
     The Lessee shall pay to the Lessor as Additional Rent:

  o  Reimbursement for 21.2% of real estate taxes levied against the land and
     building of which the premises are a part.

  o  Reimbursement for 21.2% of premiums for fire and extended coverage on the
     building and improvements thereto, with policy limits to be consistent with
     replacement values.

  o  Reimbursement for 21.2% of common area costs for the property of which the
     premises are a part, including, but not limited to:

     *  Landscaping
     *  Cleaning and snow removal of paved parking areas
     *  Exterior and common area lighting
     *  Electricity for heat pumps used to heat and cool, and light the common
        areas; and electricity used to circulate water to the HVAC system
        throughout the entire building
     *  Cleaning of the common areas
     *  Rest room supplies
     *  Elevator maintenance
     *  Rubbish dumpster and disposal
     *  HVAC maintenance
     *  Fire Alarm testing

  o  Reimbursement for 21.2% of the cost of gas used to furnish hot water and
     hot air to the HVAC system throughout the entire building

  o  Reimbursement for 21.2% of the cost of water and sewer usage within the
     building

     The Lessee shall pay this Additional Rent in monthly installments on the
     first day of each month with the base rent, in an amount established by the
     Lessor to be sufficient to cover these reimbursements.  Under-or
     overpayments shall be reconciled at reasonable intervals.  Any amount due
     will be paid within 30 days of Lessee's receipt of notice of the shortfall.
     The Lessor's initial estimate of these installments is $2,900.00 per month.

     The Lessee shall pay the Additional Rent for the half-month of November,
     1999 upon the execution of this lease.

     The following items shall not be included as part of the common area costs:

  o  leasing commission (including brokerage fees and commissions) and other
     expenses incurred for leasing and improving space for tenants.

  o  costs incurred by landlord for alterations, additions, repairs,
     replacements, tools and improvements that are considered capital in nature
     under generally accepted accounting principles consistently applied.

  o  interest on debt or amortization payments on mortgages or deeds of trust or
     any other debt for borrowed money.

  o  repairs or other work needed because of fire or other casualty insured
     against or required to be insured against under this Lease and work needed
     because of eminent domain takings.

  o  costs incurred to test, remove and otherwise remedy hazardous materials
     from the building

                                       5
<PAGE>

  o  fees and expenses paid by the Lessor for buildings owned by it other than
     the building covered by this Lease.

22.C. EXTENSION OPTION. Lessee shall have an option to extend the lease for an
      additional three (3) year term provided that 1) Lessee notifies Lessor in
      writing of its desire t extend the lease not later than six months prior
      to the expiration of the initial lease term, and 2) Lessee is not in
      default under this Lese at the time of such notice or at the commencement
      of the extension term. The rent payable for the first year of the
      extension term shall be the lesser of $21.00 per square foot ($236,250.00)
      or 85% of market rent in the area for comparable space. If the parties are
      not able to agree upon the market rent within 30 days after Lessee's
      notice of its intent to extend, then each party shall retain a qualified
      independent appraiser to make a determination of such market rent within
      the next fourteen day period. The parties are still unable to reach
      appraisals and negotiate in good faith. If the parties are still unable to
      reach agreement, then Lessee shall have the option to extend at the $21.00
      per square foot amount, or to not exercise its extension option by written
      notice to Lessor not later than four months prior to the expiration of the
      initial lease term. If the lease is extended, then the rent shall be
      increased at the commencement of each of the second and third years of the
      extension term by the percentage increase in the CPI over the prior 12
      months, such increase to be determined in the same manner as set forth in
      Section 22B.

22.D. UTILITIES; CLEANING.  The Lessee shall pay for all utilities consumed
      within the premises, including but not limited to, electricity for lights,
      power, and air-conditioning.  The Lessor represents that the premises are
      separately metered for electricity.

22.E. PARKING.  The Lessee shall have 8 parking spaces designated by Lessor
      that will be for Lessee's exclusive use during business hours, provided
      that Lessor shall have no responsibility to monitor or enforce the use of
      those spaces.  In addition, Lessee shall be entitled to park, in common
      with others entitled thereto, a minimum of 12 cars in the paved parking
      area on the property of which the premises are a part.  The Lessor shall
      have the right to establish reasonable rules and regulations governing the
      use of the parking areas.

22.F. NOTICE OF LEASE:  The Lessor and the Lessee agree not to record this
      lease, but each party will, on request of the other, execute, acknowledge
      and deliver a notice of lease in such form as required by applicable
      statute.

22.G. GOVERING LAW:  This lease shall be governed by and construed according to
      the laws of The commonwealth of Massachusetts.

22.H. ENTIRE AGREEMENT:  This instrument and any schedules or exhibits attached
      hereto contain the entire and only agreement between the parties with
      respect to the lease of the demised premises and no oral statements or
      representations or any prior written matter not contained in this
      instrument shall have any force or effect.

22.I. WAIVER OF SUBROGATION: The Lessor and the Lessee each hereby release the
      other from any and all liability or responsibility to the other by way of
      subrogation or otherwise for any loss or damage to leased premises,
      building or land caused by fine or other extended coverage casualty, even
      if such fire or other casualty shall have been caused by the fault or
      negligence of the other party or anyone for whom such party may be
      responsible, provided, however, that this release shall be applicable and
      in force and effect only with respect to loss or damage occurring during
      such time as the releasor's policies shall contain a clause or endorsement
      to the effect that any such release shall not adversely affect or impair
      the coverage of said polices or prejudice the right of releasor to recover
      thereunder. the Lessor and the Lessee agree that their respective policies
      will include such a clause or endorsement so long as the same shall be
      obtainable without extra cost, or if extra cost shall be chargeable
      therefor, each party shall advise the other thereof and of the amount of
      the extra party shall advise the other thereof and of the amount of the
      extra costs, and the other party, at its election, may pay the same but
      shall not be obligated to do so.

22.J. TOXIC WASTE: No hazardous materials or chemical substances shall be
      stored, used, processed, or disposed of in any manner whatsoever in
      violation of any local, state, or federal laws or regulations and only in

                                       6
<PAGE>

      accordance with the highest standards of the industry. Lessee shall not
      permit the release, discharge, emission, or leakage of any hazardous
      materials or chemical waste in, on or about the Premises. No such
      materials or substances shall be brought onto the premises, except in the
      ordinary course of Lessee's business, provided that Lessee meets all
      requirements imposed by law and obtains all necessary licenses and
      permits. Immediately after such use, Lessee shall dispose of all hazardous
      waste or materials using licensed transporters and disposers and shall
      keep adequate and detailed records of such disposition. Lessee shall
      identify all such materials and substances whenever reasonably requested
      by Lessor and shall permit Lessor to inspect the storage areas at the
      premises from time to time upon reasonable prior notice. In the event of
      any discharge or leakage of such materials, Lessee shall be solely
      responsible for the reporting and cleaning up of the discharge according
      to the laws and regulations. No discontinued equipment or substances shall
      be allowed to remain on the Premises or shall be abandoned thereon.
      without limitation, hazardous substances shall include such substances
      described in the Comprehensive Environmental Response, Compensation and
      Liability Act, as amended, 42 U.S.C. 9601 et seq. and the regulations
      adopted thereunder, and hazardous materials shall include such materials
      shall include such materials described in the Resource Conservation and
      Recovery Act, as amended, M.G.L Chapter 21, and the Massachusetts Oil and
      Hazardous Material Release Prevention Act, as amended, M.G.L. Chapter 21
      E, and the regulations adopted under these acts. In addition, Lessee shall
      execute affidavits, representations, and the like from time to time at
      Lessor's reasonable request concerning Lessee's best knowledge and belief
      regarding the presence or absence of hazardous materials on the Premises
      pertaining thereto. In all events, materials on the Premises occurring
      while Lessee is in possession, unless caused by the Lessor and/or its
      grants, employees, licensees, or invitees. (At the request or Lessor,
      Lessee will from time to time confirm such indemnity to mortgagees
      directly with such mortgages.)

      Lessee shall take all reasonably necessary measures, taking into account
      present unsecured access, to prevent all persons without exception,
      including trespassers, from bringing onto the Premises and disposing
      thereon any hazardous materials or chemical substances.

      Lessee shall deliver to Lessor, within five days after Lessee receives
      same, copies of all letters, inquiries, summons, subpoenas, complaints,
      restraining orders, and any other written communication received by
      Lessee, and written notice of any oral communication received by Lessee,
      related to Lessee's compliance or noncompliance, or the compliance or
      noncompliance of any activities being conducted on or from the Premises
      with any laws, orders, regulations and the like of any governmental
      authorities or any public body relating to Hazardous Waste, Hazardous
      Materials, Oil or radioactive material.

      Lessee shall be solely responsible for becoming informed of any
      amendments made from time to time to the laws and regulations referred to
      in section 9 of this lease; the Lessor shall not be obligated to notify
      Lessee of any of said amendments.

      The above paragraphs regarding Lessee's responsibilities for control of
      hazardous materials are key elements of this agreement, and Lessee's
      failure to comply shall constitute a material breach of this lease.

22.K. MAINTENANCE
      (Continued):

      The Lessor agrees to maintain the building of which the leased premises
      are part, to make necessary cosmetic repairs to the building, and to make
      all necessary structural repairs in and to the leased premises, the
      building and land, including but not limited to the roof, steel footings,
      exterior walls, sprinkler lines, underground or underslab utilities, and
      also including the electrical, mechanical, plumbing, and other systems
      serving the building generally and to keep the parking areas, driveways,
      and walkways on the land in good condition, free to snow and ice and
      sanded as appropriate.

22.L. ASSIGNMENT
      SUBLEASING (Continued)

      The Lessor shall notify Lessee of Lessor's decision and reasons therefor
      within ten (10) days of the Lessee's request for consent to a proposed
      assignment or subletting.  the failure of the Lessor to provide such
      written notice of the Lessee within said ten (10) day period shall be
      deemed consent by the Lessor to the proposed assignment or subletting.

                                       7
<PAGE>

      Notwithstanding the forgoing, Lessee may assign this lease or sublet any
      portion of the leased premises without the consent of the Lessor to any of
      the following: (i) any corporation which controls, or is controlled by or
      under, the Lessee; (ii) any corporation resulting from the merger or
      consolidation of the Lessee; or (iii) any person or entity that acquires
      all of the operating assets or stock of the Lessee; provided, however,
      that in any such event of assignment or subleasing Lessee shall remain
      liable for the full performance of all terms and conditions of this lease.

22.M. QUIET
      ENJOYMENT:

      The Lessor represents that it has full power and right to execute and
      perform this lease, and covenants that the Lessee, on paying the rents as
      herein provided and performing its covenants and obligations hereunder,
      shall peaceably and quietly have, hold, and enjoy the leased premises
      during the full term of this lease.

22.N. FIRE CASUALTY
      EMINET DOMAIN
      (Continued)

      For the purposes of Section 18, herein a `substantial portion' of the
      leased premises or of the property of which they are a part shall be
      defined as any portion of said premises or property that is necessary for
      the operation by the Lessee of its business at the leased premises, the
      damage to or taking of which renders the leased premises substantially
      unsuitable for its intended use.

22.O. CONDITION OF PREMISES

      Prior to the commencement of the lease term, the Lessor will replace light
      bulbs as necessary and any damaged ceiling tiles. The premises shall be
      delivered free of unwanted items of personal property from the prior
      tenancy. The parties acknowledge that Lessee may purchase certain items
      from the existing tenant and that Lessor and Lessee will walk the premises
      following the departure of the existing tenant to identify any items that
      Lessor needs to remove. ON the western half of the premises, Lessor will
      replace the existing carpet and repaint the walls, provided that Lessor
      and Lessee shall share the cost for the same equally. Lessee will be
      responsible for moving furniture, wall hanging, etc., in order to
      accommodate the foregoing work. Except as provided in the preceding
      sentence, the Lessee shall accept the leased premises "as is" in their
      condition as of the commencement of the term of this Lease, and the Lessor
      shall be obligated to perform to work whatsoever in order to prepare the
      leased premises for occupancy by the Lessee.

22.P. FORCE MAJEURE

      In the event that the Lessor is prevented or delayed from making any
      repairs or performing any other covenant hereunder by reason of any cause
      reasonably beyond the control of the Lessor, the Lessor shall not be
      liable to the Lessee therefor not, except as expressly otherwise provided
      case of casualty of taking, shall the Lessee be entitled to any abatement
      or reduction of rent by reason thereof, nor shall the same give rise to a
      claim by the Lessee that such failure constitutes actual or constructive
      eviction from the leased premises or any part thereof.

22.Q. LATE CHARGE

      If base rent, additional rent or any other sum payable hereunder remains
      outstanding for a period then (10) days, the Lessee shall pay to the
      Lessor a late charge equal to one and one-half percent (1.5%) of the
      amount due for each month or portion thereof during which the arrearage
      continues.

22.R. LIABILITY OF OWNER

      No Owner of the property of which the leased premises are a part shall be
      liable hereunder except for breaches of Lessor's obligations occurring
      during the period of such ownership. The obligations of the Lessor shall
      be binding upon the Lessor's interest in said property, but not upon other
      assets of the Lessor, and no individual partner agent, trustee,
      stockholder, officer, director, employee, beneficiary of the Lessor shall
      be personally liable for performance of the Lessor's obligations
      hereunder.

                                       8
<PAGE>

22.S. RIGHT OF FIRST REFUSAL

      Lessor agrees that during the term of the Lease, as it may be extended,
      Lessor shall notify Lessee of any space that become available in the
      building at 313 Pleasant Street and will provide Lessee the opportunity to
      lease the space on the terms. Lessee must respond to Lessor's offer to
      lease within 21 days. The foregoing shall not apply to the Lessor's
      entering into a new lease with an existing tenant of the building for
      space it then occupies, or any space as to which any tenant has a right of
      first refusal then occupies, or any space as to which any tenant has a
      right of first refusal entered into in writing prior to October 1, 1999.

22.T. BROKERS

      Each party represent and warrants that there is no brother's fee or
      commission payable to anyone in connection with the negotiation and/or
      signing of this Lease and each party will indemnify the other for any such
      fees due to anyone claiming through such party.

22.U. OTHER LEASE

      The Lease dated October 24, 1995 by and between the Lessor and the Lessee
      for the premises at 80 Rosedale Road shall terminate effective November
      30, 1999 (which date shall be postponed by an equal number of days in the
      event of a delayed commencement of this lease). On or before such
      termination date, Lessee shall vacate the premises at 80 Rosedale Road and
      remove all of its belongings. Within 14 days of such termination date,
      Lessor will inspect the premises and determine the actual operating
      expense reimbursement amount for the period through November 30. Upon
      satisfactory inspection of the premises, Lessor will return Lessee's
      security deposits, as a adjusted for the amount, if any, by which the
      actual operating expenses for the period differ from the amount paid by
      Lessee.

                                       9

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