Document:

Filed by sedaredgar.com - Megawest Energy Corp. - Exhibit 4.40

UNITED STATES

SUBSCRIPTION AGREEMENT FOR COMMON SHARES

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc. (the "Agent")
  
	 	 
	AND TO: 	Tristone Capital USA Inc. (the "Placement
      Agent") 

The undersigned (hereinafter referred to as the
"Subscriber") hereby irrevocably subscribes for and agrees to purchase
the number of Common Shares ("Shares") in the capital of the Corporation
set forth below for the aggregate subscription price set forth below (the
"Aggregate Subscription Price"), representing a subscription price of
US$0.60 per Share, upon and subject to the terms and conditions set forth in
"Terms and Conditions of Subscription for Shares of MegaWest Energy Corp."
attached hereto (together with the face pages and the attached Exhibits, the
"Subscription Agreement"). In addition to this face page, the Subscriber
must also complete all applicable exhibits attached hereto.

	 	 	 	 	 	 	 	 
	 	 
    	 	 	 	 	Number of Shares: 	 
	 	(Name of Subscriber - please print) 	 	 	 	 	 	 
	 		 	 	 	 	  	 
	 	 	 	 	 	 	 	 
	 	By:
	 	 	 	 	 
    	 
	 	       
      (Authorized Signature) 	 	 	 	 	Aggregate Subscription Amount: 	 
	 	  	 	 	 	 	(No. of Shares x US$0.60 per
      Share) 	
	 	 	 	 	 	 	 	 
	 	(Official Capacity or Title - please print) 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	(Please print name of individual whose
      signature appears 	 	 	 	 	 	 
	 	above if different than the name of the
      Subscriber printed 	 	 	 	 	 	 
	 	above.) 	 	 	 	 	  	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	(Subscriber's Residential Address) 	 	 	 	 	  	 
	 	  	 	 	 	 	  	 
	 	 	 	 	 	 	 	 
	 	(Telephone
      Number)                                                
      (E-Mail Address) 	 	 	 	 		 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	Register the Shares as set forth
      below: 	 	 	 	 	Deliver the Shares as set forth
      below: 	 
	 	 	 	 	 	 	 	 
	 	(Name) 	 	 	 	 	(Name) 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	(Account
      reference, if applicable) 	 	 	 	 	(Account reference, if applicable) 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	(Address) 	 	 	 	 	(Contact Name) 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	  	 	 	 	 	(Address) 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

ACCEPTANCE: The Corporation hereby accepts the
subscription as set forth above on the terms and conditions contained in this
Subscription Agreement and the Corporation represents and warrants to the
Subscriber that the representations and warranties made by the Corporation to
the Agent in the Agency Agreement (as defined herein) are true and correct in
all material respects as of the Closing Date (as defined herein) (save and
except as waived by the Agent) and that the Subscriber is entitled to rely
thereon as if the Subscriber was a party thereto.

_____________________ , 2008

	MEGAWEST ENERGY CORP. 	 	Subscription No: 

	 	 
	By: 	 	 

This agreement comprises 10 pages (not including
Exhibits)

	 	2 	UNITED STATES 

TERMS AND CONDITIONS OF SUBSCRIPTION FOR 

  SHARES OF MEGAWEST ENERGY CORP.

	INSTRUCTIONS: To properly complete
      this Subscription Agreement: 
	(1) 	All
      subscribers must complete all boxes on the face page; 
	(2) 	All
      subscribers must complete and sign Exhibit 1 or Exhibit 2, as applicable;
      and 
	(3) 	All
      subscribers should return their completed documents, to Tristone Capital
      Inc., Attn: Rita Sivadas at Suite 2020, 335 - 8th
  
	  	Avenue S.W., Calgary, Alberta, T2P 1C9;
      Telephone: 403.539.4347; Fax: 403.303.8658; Email:
      rsivadas@tristonecapital.com. 

Terms of the Offering

1. The Subscriber acknowledges (on its own behalf and, if
applicable, on behalf of each person on whose behalf the Subscriber is
contracting) that this subscription is subject to rejection, acceptance or
allotment by the Corporation in whole or in part.

2. The Subscriber acknowledges (on its own behalf and, if
applicable, on behalf of each person on whose behalf the Subscriber is
contracting) that the Shares subscribed for by it hereunder form part of a
larger issuance and sale by the Corporation of up to 26,750,000 Shares at a
subscription price of US$0.60 per Share (the "Offering") but that
completion of the Offering is not subject to the Corporation receiving any
minimum amount of subscriptions.

Representations, Warranties and Covenants by
Subscriber

3. The Subscriber (on its own behalf and, if applicable, on
behalf of each person on whose behalf the Subscriber is contracting) represents,
warrants and covenants to the Corporation, the Agent and the Placement Agent
(and acknowledges that the Corporation, the Agent, the Placement Agent and their
respective counsel, are relying thereon) that both at the date hereof and at the
Closing Time (as defined herein):

	 	(a) 	
      it has been independently advised as to restrictions with
      respect to trading in the Shares imposed by applicable securities laws,
      confirms that no representation has been made to it by or on behalf of the
      Corporation, the Agent or the Placement Agent with respect thereto,
      acknowledges that it is aware of the characteristics of the Shares, the
      risks relating to an investment therein and of the fact that it may not be
      able to resell the Shares except in accordance with limited exemptions
      under applicable securities laws and regulatory policy until expiry of the
      applicable restricted period and compliance with the other requirements of
      applicable law; and it agrees that, in addition to any other legend
      required under United States' securities laws described in this
      Subscription Agreement, any certificates representing the Shares are to
      bear a legend indicating that the resale of such securities is
      restricted; and the Subscriber further acknowledges that it has been
      advised to consult its own legal counsel in its jurisdiction of residence
      for full particulars of the resale restrictions applicable to it;
    and

	 	 	 
	 	(b) 	
      it has not received or been provided with, nor has it
      requested, nor does it have any need to receive, any offering memorandum,
      any prospectus, sales or advertising literature, or any other document
      (other than an annual report, annual information form, interim report,
      information circular or any other continuous disclosure document, other
      than an offering memorandum, the content of which is prescribed by statute
      or regulation) describing or purporting to describe the business and
      affairs of the Corporation which has been prepared for delivery to, and
      review by, prospective purchasers in order to assist them in making an
      investment decision in respect of the Shares; and

	 	 	 
	 	(c) 	
      it has not become aware of any advertisement in printed
      media of general and regular paid circulation (or other printed public
      media), radio, television or telecommunications or other form of
      advertisement (including electronic display and the internet) with respect
      to the distribution of the Shares and acknowledges that it has not
      purchased the Shares as a result of any general solicitation or general
      advertising, as such terms are defined in Regulation D of the U.S.
      Securities Act (as hereinafter defined), including, without limitation,
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general advertising; and

	 	 	 
	 	(d) 	
      it understands that the Shares are being offered for sale
      only on a "private placement" basis and that the sale and delivery of the
      Shares is conditional upon such sale being exempt from the requirements as
      to the filing

	 	3 	UNITED STATES 

of a prospectus or delivery of an
offering memorandum or upon the issuance of such orders, consents or approvals
as may be required to permit such sale without the requirement of filing a
prospectus or delivering an offering memorandum and, as a consequence (i)
certain protections, rights and remedies provided by applicable securities laws,
including statutory rights of rescission or damages, will not be available to
the Subscriber, (ii) the Subscriber is restricted from using most of the civil
remedies available under securities legislation, (iii) the Subscriber may not
receive information that would otherwise be required to be provided to it under
securities legislation, and (iv) the Corporation is relieved from certain
obligations that would otherwise apply under securities legislation; and

	 	(e) 	
      unless it is purchasing under 3(f), it is purchasing the
      Shares directly from the Corporation pursuant to Regulation D under United
      States Securities Act of 1933, as amended (the "U.S. Securities
      Act"):

	 	 	 	 
	 		(i) 	
      it understands and acknowledges that the Shares have not
      been and will not be registered under the U.S. Securities Act, or any
      applicable state securities laws, and that the sale contemplated hereby is
      being made in reliance on a private placement exemption for the sale to
      institutions that are "accredited investors" as defined in Rules
      501(a)(1), (a)(2), (a)(3) and (a)(7) of Regulation D under the U.S.
      Securities Act ("Institutional Accredited Investors") and similar
      exemptions under state law; and

	 	 	 	 
	 		(ii) 	
      it has received, for its information only, a copy of this
      Subscription Agreement and a term sheet relating to the Offering in the
      United States of the Shares and has had access to such additional
      information, if any, concerning the Corporation as it has considered
      necessary in connection with its investment decision to invest in the
      Shares; and

	 	 	 	 
	 		(iii) 	
      it has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of
      its investment in the Shares and is able to bear the economic risk of such
      investment including the ability to withstand a complete loss of such
      investment, and

	 	 	 	 
	 		(iv) 	
      it understands and acknowledges that the Shares have not
      been and will not be registered under the U.S. Securities Act or the
      securities laws of any state of the United States, and are therefore
      "restricted securities" within the meaning of Rule 144 under the U.S.
      Securities Act, and agrees that if it decides to offer, sell or otherwise
      transfer or pledge any of the Shares, it will not offer, sell or otherwise
      transfer or pledge any of such Shares, directly or indirectly, except: (A)
      if the sale is made pursuant to registration of the Shares under the U.S.
      Securities Act, (B) to the Corporation, (C) outside the United States in
      accordance with Rule 904 of Regulation S under the U.S. Securities Act,
      and in compliance with applicable local laws and regulations, (D) the sale
      is made pursuant to the exemption from registration under the U.S.
      Securities Act provided by Rule 144 thereunder, or (E) in a transaction
      that does not require registration under the U.S. Securities Act or any
      applicable United States state securities laws, and it has furnished to
      the Corporation an opinion of counsel of recognized standing reasonably
      satisfactory to the Corporation to that effect; and

	 	 	 	 
	 		(v) 	
      it understands and acknowledges that upon the original
      issuance thereof, and until such time as the same is no longer required
      under applicable requirements of the U.S. Securities Act or state
      securities laws, the certificates representing the Shares, and all
      certificates issued in exchange therefor or in substitution thereof, shall
      bear on the face of such certificates the following
  legend:

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE " U.S. SECURITIES ACT") OR STATE SECURITIES LAWS. THE HOLDER HEREOF, BY
PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF MEGAWEST ENERGY CORP. (THE
"CORPORATION") THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN
ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, AND IN
COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED
STATES IN ACCORDANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT PROVIDED BY RULE 144 

	 	 4 	UNITED STATES 

THEREUNDER, IF APPLICABLE AND IN
COMPLIANCE WITH ANY STATE SECURITIES LAWS, OR (D) IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN ANY EVENT, IN COMPLIANCE WITH
ANY APPLICABLE STATE SECURITIES LAWS OF THE UNITED STATES; PRIOR TO ANY TRANSFER
PURSUANT TO THE FOREGOING CLAUSE (C), AFTER PROVIDING A LEGAL OPINION OR OTHER
EVIDENCE SATISFACTORY TO THE CORPORATION.

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THE SECURITIES MUST NOT TRADE THE SECURITIES BEFORE
THE DATE WHICH IS FOUR MONTHS FROM THE CLOSING DATE.

	 		
      If the Corporation is a "foreign issuer" and there is no
      "substantial U.S. market interest" in the Shares (all within the meaning
      of Regulation S under the U.S. Securities Act) at the time of sale outside
      the United States is accordance with Rule 904 of Regulation S, a new
      certificate, which will constitute "good delivery" in settlement of
      transactions on Canadian stock exchanges, will be made available to the
      Subscriber upon provision by the Subscriber of a declaration in the form
      attached to this Subscription Agreement as Exhibit 3 or in such other form
      that is acceptable to the Corporation; and

	 	 	 
	 	(vi) 	
      it is an Institutional Accredited Investor because it is
      an entity described in Exhibit 1 hereto, and it is acquiring the Shares as
      principal for its own account, and not with a view to any resale,
      distribution or other disposition of the Shares, in violation of United
      States securities laws; and

	 	 	 
	 	(vii) 	
      it has concurrently executed and delivered Exhibit 1
      hereto with this Subscription Agreement which Exhibit is incorporated into
      and forms a part of this Subscription Agreement;
and

	 	(f) 	
      unless it is purchasing under 3(e), it is purchasing the
      Shares from the Placement Agent pursuant to Rule 144A under the U.S.
      Securities Act:

	 	(i) 	
      it is a "Qualified Institutional Buyer" as defined in
      Rule 144A under the U.S. Securities Act ("Rule 144A");

	 	 	 
	 	(ii) 	
      it understands and acknowledges that the Shares have not
      been and will not be registered under the U.S. Securities Act or the
      securities laws of any state of the United States, and are therefore
      "restricted securities" within the meaning of Rule 144 under the U.S.
      Securities Act, and agrees that if it decides to offer, sell or otherwise
      transfer or pledge any of the Shares, it will not offer, sell or otherwise
      transfer or pledge any of such Shares, directly or indirectly, except: (A)
      if the sale is made pursuant to registration of the Shares under the U.S.
      Securities Act, (B) to the Corporation, (C) in the United States, in
      accordance with Rule 144A to a person it reasonably believes is a
      Qualified Institutional Buyer that purchases for its own account or for
      the account of another Qualified Institutional Buyer and to whom notice is
      given that the offer, sale or transfer is being made in reliance on Rule
      144A, (D) outside the United States in accordance with Rule 904 of
      Regulation S under the U.S. Securities Act, and in compliance with
      applicable local laws and regulations, (E) the sale is made pursuant to
      the exemption from registration under the U.S. Securities Act provided by
      Rule 144 thereunder, or (F) in a transaction that does not require
      registration under the U.S. Securities Act or any applicable United States
      state securities laws, and it has furnished to the Corporation an opinion
      of counsel of recognized standing reasonably satisfactory to the
      Corporation to that effect; and

	 	 	 
	 	(iii) 	
      it has received, for its information only, a copy of this
      Subscription Agreement and a term sheet relating to the Offering in the
      United States of the Shares and has had access to such additional
      information, if any, concerning the Corporation as it has considered
      necessary in connection with its investment decision to invest in the
      Shares; and

	 	 	 
	 	(iv) 	
      it understands and acknowledges that all Shares sold in
      the United States to Qualified Institutional Buyers as part of this
      Offering will bear a legend to the foregoing
effect:

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE "U.S. SECURITIES 

	 	5 	UNITED STATES 

ACT") OR STATE SECURITIES LAWS. THE
HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF MEGAWEST
ENERGY CORP. (THE "CORPORATION") THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES
IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, AND
IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS (C) INSIDE THE UNITED
STATES, PURSUANT TO THE EXEMPTIONS FROM REGISTRATION UNDER THE U.S. SECURITIES
ACT PROVIDED BY RULE 144A THEREUNDER TO A PERSON IT REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE OFFER, SALE OR TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (D)
IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND, IN
ANY EVENT, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS OF THE UNITED
STATES; PRIOR TO ANY TRANSFER PURSUANT TO THE FOREGOING CLAUSE (D), AFTER
PROVIDING A LEGAL OPINION OR OTHER EVIDENCE SATISFACTORY TO THE CORPORATION.

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THE SECURITIES MUST NOT TRADE THE SECURITIES BEFORE
THE DATE WHICH IS FOUR MONTHS FROM THE CLOSING DATE.

If the Corporation is a "foreign
issuer" and there is no "substantial U.S. market interest" in the Shares (all
within the meaning of Regulation S under the U.S. Securities Act) at the time of
sale outside the United States is accordance with Rule 904 of Regulation S, a
new certificate, which will constitute "good delivery" in settlement of
transactions on Canadian stock exchanges, will be made available to the
Subscriber upon provision by the Subscriber of a declaration in the form
attached to this Subscription Agreement as Exhibit 3 or in such other form that
is acceptable to the Corporation; and

	 	(v) 	
      it acknowledges that the sale to it of the Shares is
      being made in reliance on Rule 144A, and it certifies that it is and will
      be acquiring the Shares for its own account or for the account of a
      Qualified Institutional Buyer; and

	 	 	 
	 	(vi) 	
      it has concurrently delivered Exhibit 2 hereto with this
      Subscription Agreement which Exhibit is incorporated into and forms a part
      of this Subscription Agreement; and

	 	(g) 	
      it certifies that it is not resident in or otherwise
      subject to applicable securities laws of any province or territory of
      Canada and it acknowledges that:

	 	 	 	 
	 		(i) 	
      no securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Shares; and

	 	 	 	 
	 		(ii) 	
      there is no government or other insurance covering the
      Shares; and

	 	 	 	 
	 		(iii) 	
      there are risks associated with the purchase of the
      Shares; and

	 	 	 	 
	 		(iv) 	
      there are restrictions on the Subscriber's ability to
      resell the Shares and it is the responsibility of the Subscriber to find
      out what those restrictions are and to comply with them before selling the
      Shares; and

	 	 	 	 
	 		(v) 	
      the Corporation has advised the Subscriber that the
      Corporation is relying on an exemption from the requirements to provide
      the Subscriber with a prospectus and to sell securities through a person
      or company registered to sell securities under the Securities Act
      (Alberta), the Securities Act (British Columbia), and the
      Securities Act (Ontario) and other applicable securities laws and,
      as a consequence of acquiring securities pursuant to this exemption,
      certain protections, rights and remedies provided by the Securities Act
      (Alberta), the Securities Act (British Columbia), and the
      Securities Act (Ontario) and other applicable securities laws,
      including statutory rights of rescission or damages, will not be available
      to the Subscriber; and

	 	6 	UNITED STATES 

	 	(h) 	
      it understands and agrees that there may be material tax
      consequences to the Subscriber of an acquisition or disposition of the
      Shares. The Corporation gives no opinion and makes no representation with
      respect to the tax consequences to the Subscriber under United States,
      state, local or foreign tax law of the undersigned’s acquisition or
      disposition of such Shares. In particular, no determination has been made
      whether the Corporation will be a "passive Foreign investment company"
      ("PFIC") within the meaning of Section 1291 of the United States
      Internal Revenue Code; and

	 	 	 
	 	(i) 	
      it understands and agrees that the financial statements
      of the Corporation have been prepared in accordance with Canadian
      generally accepted accounting principles, which differ in some respects
      from United States generally accepted accounting principles, and thus may
      not be comparable to financial statements of United States companies;
      and

	 	 	 
	 	(j) 	
      it consents to the Corporation making a notation on its
      records or giving instructions to any transfer agent of the Corporation in
      order to implement the restrictions on transfer set forth and described in
      this Subscription Agreement and understands and acknowledges that the
      Corporation and/or the transfer agent for the Shares may not record a
      transfer by any person in the United States without first being satisfied
      that such transfer is exempt from or not subject to registration under the
      Securities Act and any applicable state securities laws; and

	 	 	 
	 	(k) 	
      it is resident in the United States of America, its
      territories and possessions or any state of the United States or the
      District of Columbia (collectively the "United States"), a "U.S.
      Person" as such term is defined in Regulation S of the U.S. Securities Act
      or was in the United States at the time the securities were offered or the
      Subscription Agreement was executed; and

	 	 	 
	 	(l) 	
      it understands that the Shares are "restricted
      securities" within the meaning of Rule 144 under the U.S. Securities Act
      and that the U.S. Securities Act and the rules of the SEC provide that the
      Subscriber may dispose of the Shares only pursuant to an effective
      registration statement under the U.S. Securities Act or an exemption from
      registration under the U.S. Securities Act, and, other than as set out
      herein, the Subscriber understands that the Corporation has no obligation
      to register any of the Shares or to take action so as to permit sales
      pursuant to the U.S. Securities Act (including Rule 144 thereunder).
      Accordingly, the Subscriber understands that absent registration, under
      the rules of the SEC, the Subscriber may be required to hold the Shares
      indefinitely or to transfer the Shares in "private placements" which are
      exempt from registration under the U.S. Securities Act, in which event the
      transferee will acquire "restricted securities" subject to the same
      limitations as in the hands of the Subscriber. As a consequence, the
      Subscriber understands that it must bear the economic risks of the
      investment in the Shares for an indefinite period of time; and

	 	 	 
	 	(m) 	
      it understands and acknowledges that the Corporation is
      not obligated to remain a "foreign issuer" (as defined in Regulation S
      under the U.S. Securities Act); and

	 	 	 
	 	(n) 	
      it has no intention to distribute, and shall not
      transfer, either directly or indirectly any of the Shares to any person
      within the United States or to U.S. persons, as defined in Regulations S
      except pursuant to an effective registration statement under the U.S.
      Securities Act, or an exemption from registration under the U.S.
      Securities Act; and

	 	 	 
	 	(o) 	
      if it is not an individual, it pre-existed the Offering
      of the Shares and has a bona fide business purpose other than the
      investment in the Shares and was not created, formed or established solely
      or primarily to acquire securities, or to permit purchases of securities
      without a prospectus, in reliance on an exemption from the prospectus
      requirements of applicable securities legislation; and

	 	 	 
	 	(p) 	
      if it is a corporation, partnership, trust,
      unincorporated association or other entity, it has the legal capacity to
      enter into and be bound by this Subscription Agreement and further
      certifies that all necessary approvals of directors, trustees,
      fiduciaries, shareholders, partners, stakeholders, holders of voting
      securities or otherwise have been given and obtained; and

	 	 	 
	 	(q) 	
      if it is an individual, it is of the full age of majority
      and is legally competent to execute this Subscription Agreement and take
      all action pursuant hereto; and

	 	 	 
	 	(r) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby will not result in a violation of any of
      the terms or provisions of any law applicable to the Subscriber (or any
      person on whose

	 	7 	UNITED STATES 

	 		
      behalf the Subscriber is contracting), or if the
      Subscriber (or any person on whose behalf the Subscriber is contracting)
      is not a natural person, any of such person's constating documents, or any
      agreement to which such person is a party or by which it is bound;
    and

	 	 	 	 
		(s) 	
      this Subscription Agreement has been duly and validly
      authorized, executed and delivered by and constitutes a legal, valid,
      binding and enforceable obligation of the Subscriber; and

	 	 	 
	 	(t) 	
      it has such knowledge and experience in financial and
      business affairs as to be capable of evaluating the merits and risks of
      its investment in the Shares and is able to, and agrees to, bear the
      economic risk of loss of its investment; and

	 	 	 	 
	 	(u) 	
      except for the representations and warranties made by the
      Corporation to the Agent in the Agency Agreement (as defined herein), it
      has relied solely upon publicly available information relating to the
      Corporation and not upon any verbal or written representation as to fact
      or otherwise made by or on behalf of the Corporation, the Agent or the
      Placement Agent, such publicly available information having been delivered
      to the Subscriber without independent investigation or verification by the
      Agent or the Placement Agent, and agrees that the Agent, the Placement
      Agent and their counsel assume no responsibility or liability of any
      nature whatsoever for the accuracy, adequacy or completeness of the
      publicly available information or as to whether all information concerning
      the Corporation required to be disclosed by the Corporation has been
      generally disclosed and acknowledges that the Corporation's counsel and
      the Agent's and Placement Agent's counsel are acting as counsel to the
      Corporation and the Agent and Placement Agent, respectively, and not as
      counsel to the Subscriber (or any person on whose behalf the Subscriber is
      contracting); and

	 	 	 	 
	 	(v) 	
      if required by applicable securities legislation,
      regulations, rules, policies or orders or by any securities commission,
      stock exchange or other regulatory authority, the Subscriber will execute,
      deliver, file and otherwise assist the Corporation in filing, such
      reports, undertakings and other documents with respect to the issue of the
      Shares (including, without limitation a Representation Letter in the form
      attached as Exhibit 1 or Exhibit 2, as applicable); and

	 	 	 	 
	 	(w) 	
      the acquisition of the Shares hereunder by the Subscriber
      (and each person on whose behalf the Subscriber is contracting) will not
      result in the Subscriber (or any such person) becoming a "control person"
      in respect of the Corporation, as defined under applicable securities
      laws; and

	 	 	 	 
	 	(x) 	
      no person has made to the Subscriber (or any person on
      whose behalf the Subscriber is contracting) any written or oral
      representations (i) that any person will resell or repurchase the Shares
      (except in accordance with the articles of the Corporation), or (ii) that
      any person will refund the purchase price of the Shares, or (iii) as to
      the future price or value of the Shares; and

	 	 	 	 
		(y) 	
      the Aggregate Subscription Price which will be advanced
      by the Subscriber to the Agent, the Placement Agent or the Corporation
      hereunder will not represent proceeds of crime for the purposes of the
      Proceeds of Crime (Money Laundering) and Terrorist Financing Act
      (Canada) (the "PCMLA") and the Subscriber acknowledges that the
      Corporation may in the future be required by law to disclose the
      Subscriber's name and other information relating to this Subscription
      Agreement and the Subscriber's subscription hereunder, on a confidential
      basis, pursuant to the PCMLA; and to the best of its knowledge (i) none of
      the subscription funds to be provided by the Subscriber (A) have been or
      will be derived from or related to any activity that is deemed criminal
      under the law of Canada, the United States of America, or any other
      jurisdiction, or (B) are being tendered on behalf of a person or entity
      who has not been identified to the Subscriber, and (ii) it shall promptly
      notify the Corporation if the Subscriber discovers that any of such
      representations ceases to be true, and to provide the Corporation with
      appropriate information in connection therewith; and

	 	 	 	 
	 	(z) 	
      the Subscriber (including any person on whose behalf the
      Subscriber is contracting) has been encouraged to obtain independent
      legal, income tax and investment advice with respect to this subscription
      for the Shares and accordingly, has had the opportunity to acquire an
      understanding of the meanings of all terms contained herein relevant to
      the Subscriber (and each person on whose behalf the Subscriber is
      contracting) for purposes of giving representations, warranties and
      covenants under this Subscription Agreement; and

	 	 	 	 
	 	(aa) 	
      none of the securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock

	 	8 	UNITED STATES 

exchange or automated dealer quotation
system, except that currently certain market makers make market in the shares of
the Company's common stock on the OTC Bulletin Board.

Closing

4. The Subscriber agrees to deliver to Tristone Capital Inc.,
Attn: Rita Sivadas at Suite 2020, 335 - 8th Avenue S.W., Calgary,
Alberta, T2P 1C9; Telephone: 403.539.4347; Fax: 403.303.8658; Email:
rsivadas@tristonecapital.com, not later than 5:00 p.m. (Calgary time) on the day
that is three business days before the Closing Date (as defined below): (a) this
duly completed and executed Subscription Agreement; (b) a fully executed and
completed Representation Letter in the form of Exhibit 1 or Exhibit
2, attached hereto, as applicable; (c) a certified cheque or bank draft
payable to "Tristone Capital Inc." for the Aggregate Subscription Amount or
payment of the same amount in such other manner as is acceptable to the Agent;
and (d) such other documents as may be requested pursuant to subsection 3(v)
hereof. If this Subscription Agreement is rejected in whole or in part, the
Subscriber acknowledges that the unused portion of the subscription amount will
be promptly returned to it without interest.

5. The sale of the Shares pursuant to this Subscription
Agreement will be completed at the offices of Macleod Dixon LLP, the
Corporation's counsel, in Calgary, Alberta at 8:00 a.m. or such other time as is
established by the Corporation and the Agent (the "Closing Time") on May
15, 2008 or such other date as is established by the Corporation and the Agent
(the "Closing Date"). If at the Closing Time the Agent and the Placement
Agent are satisfied that all of their terms and conditions for the Offering have
been satisfied or waived by them, the Agent and the Placement Agent shall
deliver to the Corporation all completed subscription agreements, including this
Subscription Agreement, and deliver to the Corporation the aggregate
subscription proceeds for the Offering in accordance with the Agency Agreement,
against delivery by the Corporation of the certificates representing the Shares
and such other documentation as may be required.

6. The Corporation, the Agent and the Placement Agent shall be
entitled to rely on an executed copy of this Subscription Agreement delivered
via facsimile or electronically (including e-mail), and acceptance by the
Corporation of such executed copy of this Subscription Agreement shall be
legally effective to create a valid and binding agreement between the Subscriber
and the Corporation in accordance with the terms hereof. In addition, this
Subscription Agreement may be executed in counterparts, each of which shall be
deemed to be an original and all of which shall constitute one and the same
document. If less than a complete copy of this Subscription Agreement is
delivered to the Corporation at the Closing Time, the Corporation, the Agent and
the Placement Agent shall be entitled to assume that the Subscriber accepts and
agrees with all of the terms and conditions of this Subscription Agreement on
the pages not delivered at the Closing Time unaltered.

General

7. The Subscriber, on its own behalf and (if applicable) on
behalf of others for whom it is contracting hereunder, agrees that the
representations, warranties and covenants of the Subscriber herein will be true
and correct both as of the Subscriber's execution of this Subscription Agreement
and as of the Closing Time and will survive the completion of the issuance of
the Shares. The representations, warranties and covenants of the Subscriber
herein are made with the intent that they be relied upon by the Corporation, the
Agent and the Placement Agent and their respective counsel in determining the
eligibility of a purchaser of Shares and the Subscriber agrees to indemnify and
save harmless the Corporation, the Agent, the Placement Agent and their
respective affiliates, shareholders, directors, officers, employees, counsel and
agents against all losses, claims, costs, expenses and damages or liabilities
which any of them may suffer or incur which are caused or arise from a breach
thereof. The Subscriber undertakes to immediately notify the Corporation at
MegaWest Energy Corp., Suite 800, 926 - 5th Avenue S.W., Calgary,
Alberta T2P 0N7; Telephone: 403.984.6320; Fax: 403.984.6343; E-mail:
kelly.sledz@megawestenergy.com, Attention: Kelly Sledz and the Agent at Tristone
Capital Inc. at Suite 2020, 335 - 8th Avenue S.W., Calgary, Alberta
T2P 1C9; Telephone: 403.539.4347; Fax: 403.303.8658; E-mail:
rsivadas@tristonecapital.com, Attention: Rita Sivadas, of any change in any
statement or other information relating to the Subscriber set forth herein which
takes place prior to the Closing Time.

8. The Subscriber acknowledges that the Agent and the Placement
Agent have been appointed by the Corporation to act as the agents of the
Corporation in connection with the Offering and, in connection therewith, the
Corporation and the Agent have entered into or will enter into an agency
agreement (the "Agency Agreement") pursuant to which the Agent and the
Placement Agent, in connection with the Offering, will receive a fee from the
Corporation. The Subscriber hereby irrevocably authorizes the Agent:

	 	(a) 	
      to negotiate and settle the form of any certificates to
      be delivered and any agreement to be entered into in connection with the
      Offering and to vary, amend, alter or waive, on its own behalf and on
      behalf of the purchasers of Shares, in whole or in part, or extend the
      time for compliance with, any of the conditions for completing the sale of
      the Shares in such manner and on such terms and conditions as the Agent or
      the

	 	9 	UNITED STATES 

	 		
      Placement Agent may determine, acting reasonably, without
      in any way affecting the Subscriber's obligations or the obligations of
      such others hereunder; provided, however, that the Agent and/or the
      Placement Agent shall not vary, amend, alter or waive any such condition
      where to do so would result in a material adverse change to any of the
      material attributes of the Shares;

	 	 	 
	 	(b) 	
      to allocate the Shares being offered pursuant to the
      Offering and in accordance with the terms of the Agency
  Agreement;

	 	 	 
	 	(c) 	
      to act as its representative at the closing of the
      Offering with full power of substitution, as its true and lawful attorney
      and agent with the full power and authority in its place and stead to
      swear, execute, file and record any document necessary, to approve any
      opinions, certificates or other documents addressed to the Subscriber, to
      accept delivery of certificates representing the Shares on the Closing
      Date, to terminate this subscription on its behalf in the event that any
      condition precedent to the Offering has not been satisfied, to execute a
      receipt for such certificates and all other documentation, and to deliver
      such certificates to the Subscriber as set out in this Subscription
      Agreement promptly after the Closing Time; and

	 	 	 
	 	(d) 	
      to complete or correct any errors or omissions in any
      form or document provided by the Subscriber, including this Subscription
      Agreement.

9. The Subscriber acknowledges that this Subscription Agreement
and the Exhibits hereto require the Subscriber to provide certain personal
information to the Corporation. Such information is being collected by the
Corporation for the purposes of completing the private placement, which
includes, without limitation, determining the Subscriber's eligibility to
purchase the Shares under applicable securities laws, preparing and registering
certificates representing the Shares to be issued to the Subscriber and
completing filings required by any stock exchange or securities regulatory
authority. The Subscriber's personal information may be disclosed by the
Corporation to (a) stock exchanges or securities regulatory authorities
(including the Ontario Securities Commission as referred to below), (b) the
Corporation's registrar and transfer agent, (c) Canadian tax authorities, and
(d) any of the other parties involved in the Offering, including legal counsel,
and may be included in record books in connection with the Offering. By
executing this Subscription Agreement, the Subscriber consents to the foregoing
collection, use and disclosure of the Subscriber's personal information. The
Subscriber also consents to the filing of copies or originals of any of the
Subscriber's documents delivered in connection with this Subscription Agreement
as may be required to be filed with any stock exchange or securities regulatory
authority in connection with the transactions contemplated hereby. The
Subscriber further acknowledges that it has been notified by the Corporation (a)
of the requirement to deliver to the Ontario Securities Commission (the
"OSC") the full name, residential address and telephone number of the
purchaser of the securities, the number and type of securities purchased, the
total purchase price, the exemption relied upon and the date of distribution;
(b) that this information is being collected indirectly by the OSC under the
authority granted to it in securities legislation; (c) that this information is
being collected for the purposes of the administration and enforcement of the
securities legislation of Ontario; and (d) that the Administrative Assistant to
the Director of Corporate Finance can be contacted at Ontario Securities
Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario M5H 3S8,
or at (416) 593-8086, regarding any questions about the OSC's indirect
collection of this information.

10. The Subscriber acknowledges and agrees that all costs
incurred by the Subscriber (including any fees and disbursements of any counsel
retained by the Subscriber) relating to the sale of the Shares to the Subscriber
shall be borne by the Subscriber.

11. The contract arising out of this Subscription Agreement and
all documents relating thereto is governed by and construed in accordance with
the laws of the Province of Alberta and the federal laws of Canada applicable
therein. The parties irrevocably attorn to the exclusive jurisdiction of the
courts of the Province of Alberta. Time is of the essence hereof.

12. This Subscription Agreement represents the entire agreement
of the parties hereto relating to the subject matter hereof and there are no
representations, covenants or other agreements relating to the subject matter
hereof except as stated or referred to herein.

13. The terms and provisions of this Subscription Agreement are
binding upon and enure to the benefit of the Subscriber and the Corporation and
their respective heirs, executors, administrators, successors and assigns;
provided that, except for as otherwise herein provided, this Subscription
Agreement is not assignable by any party hereto without prior written consent of
the other parties. 

	 	10 	UNITED STATES 

14. The Subscriber, on its own behalf and, if applicable, on
behalf of others for whom it is contracting hereunder, agrees that this
subscription is made for valuable consideration and may not be withdrawn,
cancelled, terminated or revoked by the Subscriber, on its own behalf and, if
applicable, on behalf of others for whom it is contracting hereunder. 

15. Subject to section 8, neither this Subscription Agreement
nor any provision hereof shall be modified, changed, discharged or terminated
except by an instrument in writing signed by the party against whom any waiver,
change, discharge or termination is sought.

16. The invalidity, illegality or unenforceability of any
provision of this Subscription Agreement does not affect the validity, legality
or enforceability of any other provision hereof.

17. The headings used in this Subscription Agreement have been
inserted for convenience of reference only and shall not affect the meaning or
interpretation of this Subscription Agreement or any provision hereof.

18. The covenants, representations and warranties contained
herein shall survive the closing of the transactions contemplated hereby.

19. In this Subscription Agreement (including attachments),
references to "$" are to US dollars.

UNITED STATES

EXHIBIT 1

REPRESENTATION LETTER

(FOR ACCREDITED INVESTORS PURSUANT TO REGULATION D)

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc.

(Capitalized terms not specifically defined in this Exhibit
have the meaning ascribed to them in the Subscription Agreement to which this
Exhibit is attached)

     In connection with the execution
by the undersigned Subscriber of the Subscription Agreement which this
Representation Letter forms a part of, the undersigned Subscriber hereby
represents, warrants, covenants and certifies to the Corporation that:

	1. 	
      It understands the Shares have not been and will not be
      registered under the United States Securities Act of 1933, as amended (the
      "U.S. Securities Act"), or the securities laws of any state of the
      United States and that the sale contemplated hereby is being made in
      reliance on an exemption from such registration requirements and that the
      Shares cannot be resold unless they are registered under the U.S.
      Securities Act or unless an exemption from registration thereunder is
      available.

	 	 
	2. 	
      It satisfies one or more of the categories indicated
      below (please place an "X" on the appropriate
  lines):

		_____	
      An organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust, or partnership, not formed for the specific
      purpose of acquiring the Shares, with total assets in excess of US
      $5,000,000; 

	 	 	
       

		_____	
      A trust that (a) has total assets in excess of US
      $5,000,000, (b) was not formed for the specific purpose of acquiring the
      Shares and (c) is directed in its purchases of securities by a person who
      has such knowledge and experience in financial and business matters that
      he/she is capable of evaluating the merits and risks of an investment in
      the Shares; 

	 	 	
       

		_____	
      A bank as defined in Section 3(a)(2) of the U.S.
      Securities Act or a savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting
      in its individual capacity or fiduciary capacity; 

	 	 	
       

		_____	
      A broker or dealer registered pursuant to Section 15 of
      the United States Securities Exchange Act of 1934; 

	 	 	
       

	 	_____	
      An insurance company as defined in Section 2(a)(13) of
      the U.S. Securities Act; 

	 	 	
       

		_____	
      A plan established and maintained by a state, its
      political subdivisions, or any agency or instrumentality of a state or its
      political subdivisions, for the benefit of its employees that has total
      assets in excess of $5,000,000; 

- 2 -

		_____	
      An employee benefit plan within the meaning of the United
      States Employee Retirement Income Security Act of 1974 for which the
      investment decision is made by a plan fiduciary, as defined in Section
      3(21) of such Act, which is either a bank, savings and loan association,
      insurance company, or registered investment advisor, or that has total
      assets in excess of $5,000,000, or, if a self-directed plan, with
      investment decisions made solely by persons that are accredited investors;
      

	 	 	
       

		_____	
      An investment company registered under the United States
      Investment Company Act of 1940 or a business development company as
      defined in Section 2(a)(48) of that Act; 

	 	 	
       

		_____	
      A Small Business Investment Company licensed by the U.S.
      Small Business Administration under Section 301(c) or (d) of the United
      States Small Business Investment Act of 1958; 

	 	 	
       

		_____	
      A private business development company as defined in
      Section 202(a)(22) of the United States Investment Advisors Act of 1940;
      or 

	 	 	
       

		_____	
      An entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing categories.

	3. 	
      Upon execution of this Exhibit 1 by the undersigned
      Subscriber, this Exhibit 1 shall be incorporated into and form a part of
      the Subscription Agreement.

Dated: _________________________,
2008.

	 	 
	 	Print name of Subscriber
      
	 	 
	 	By: 	 
	 	 	Signature
	 	 	 
	 	Print name of Signatory
      (if different from the 
	 	Subscriber)

	 	 
	 	Title
  

EXHIBIT 2

REPRESENTATION LETTER

(FOR QUALIFIED INSTITUTIONAL BUYERS AS DEFINED IN RULE
144A)

	TO: 	MegaWest Energy Corp. (the
      "Corporation") 
	 	 
	AND TO: 	Tristone Capital Inc. 
	 	 
	AND TO: 	Tristone Capital USA Inc.

(Capitalized terms not specifically defined in this Exhibit
have the meaning ascribed to them in the Subscription Agreement to which this
Exhibit is attached)

     In connection with the execution
by the undersigned Subscriber of the Subscription Agreement which this
Representation Letter forms a part of, the undersigned Subscriber hereby
represents, warrants, covenants and certifies to the Corporation that:

	1. 	
      It understands the Shares have not been and will not be
      registered under the United States Securities Act of 1933, as amended (the
      "U.S. Securities Act"), or the securities laws of any state of the
      United States and that the sale contemplated hereby is being made in
      reliance on an exemption from such registration requirements and that the
      Shares cannot be resold unless they are registered under the U.S.
      Securities Act or unless an exemption from registration thereunder is
      available.

	 	 
	2. 	
      The Subscriber is a "Qualified Institutional Buyer" as
      defined in Rule 144A because the Subscriber
either:

(check one of the following categories)

	_____	(A) 	
      is a dealer registered under Section 15 of the United
      States Securities Exchange Act of 1934 and, as of the end of the
      Subscriber's most recent fiscal year, owned and invested on a
      discretionary basis an aggregate of not less than U.S. $10,000,000 in
      securities of issuers not affiliated with it, which securities do not
      include any unsold allotment to or subscription by the Subscriber as a
      participant in a public offering; or 

	 	  	
       

	_____	(B) 	
      is an investment company registered under the United
      States Investment Company Act of 1940 and, as of the end of the
      Subscriber's most recent fiscal year, it alone or in the aggregate with
      other investment companies having the same investment adviser, owned and
      invested on a discretionary basis an aggregate of not less than U.S.
      $10,000,000 in securities of issuers not affiliated with it; or 

	 	  	
       

	_____	(C) 	
      is a _______________________ [specify nature of entity,
      such as insurance company, employee benefit plan, collective or master
      bank trust fund, etc.] and "qualified institutional buyer" as defined in
      Rule 144A(a)(1) under the U.S. Securities Act other than a dealer or an
      investment company and, as of the end of the Subscriber's most recent
      fiscal year, owned and invested on a discretionary basis an aggregate of
      not less than U.S. $10,000,000 in securities of issuers not affiliated
      with it. In addition, if a bank or savings and loan association, it has an
      audited net worth of at least U.S. $25,000,000 as demonstrated in its
      latest annual financial statements, as of a date not more than 16 months
      preceding the date of sale of Shares if the bank or savings and loan
      association is a U.S. entity or not more than 18 months preceding the sale
      of Shares if the bank or savings and loan association is a non-U.S.
      entity. 

- 2 -

	3. 	If the Subscriber is an investment company,
      fill in below: 

	 	 
	Print name of investment adviser 	 
	 	 
	As investment adviser to the Subscriber, with respect to
      the Part B above 	 

	By: 	 	 
	 	 	 
	Print Name: 	 	 
	 	 	 
	Title: 	 	 

	4. 	
      Upon execution of this Exhibit 2 by the undersigned
      Subscriber, this Exhibit 2 shall be incorporated into and form a part of
      the Subscription Agreement.

Dated: _________________________,
2008.

	 	 
	 	Print name of Subscriber
      
	 	 
	 	By: 	 
	 	 	Signature
	 	 	 
	 	Print name of Signatory
      (if different from the 
	 	Subscriber)

	 	 
	 	Title
  

EXHIBIT 3

Declaration for removal of legend

	TO: 	___________________________________________ as
      registrar and transfer agent for the common shares of MegaWest Energy
      Corp. (the "Corporation") 
	  	  
	RE: 	Sale of
      ______________________________________________
	  	           
                         
             (describe securities) 

     The undersigned (a) acknowledges
that the sale of the securities of MegaWest Energy Corp. (the "Corporation") to
which this declaration relates is being made in reliance on Rule 904 of
Regulation S under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") and (b) certifies that (1) the undersigned is not an
affiliate of the Corporation (as that term is defined in Rule 405 under the U.S.
Securities Act), (2) the offer of such securities was not made to a person in
the United States and either (A) at the time the buy order was originated, the
buyer was outside the United States, or the seller and any person acting on its
behalf reasonably believed that the buyer was outside the United States, or (B)
the transaction was executed in, on or through the facilities of the TSX Venture
Exchange or Toronto Stock Exchange and neither the seller nor any person acting
on its behalf knows that the transaction has been prearranged with a buyer in
the United States, (3) neither the seller nor any affiliate of the seller nor
any person acting on any of their behalf has engaged or will engage in any
directed selling efforts in the United States in connection with the offer and
sale of such securities, (4) the sale is bona fide and not for the purpose of
"washing off" the resale restrictions imposed because the securities are
"restricted securities" (as such term is defined in Rule 144(a)(3) under the
U.S. Securities Act), (5) the seller does not intend to replace such securities
with fungible unrestricted securities and (6) the contemplated sale is not a
transaction, or part of a series of transactions which, although in technical
compliance with Regulation S under the U.S. Securities Act, is part of a plan or
scheme to evade the registration provisions of the U.S. Securities Act. Terms
used herein have the meanings given to them by Regulation S under the U.S.
Securities Act.

	 By: 		 	Dated: 	 
	 	Signature 	 	  	 
	 	  	 	  	 
	 	  	 	  	 
	Name (please print)EXHIBIT 10(ae)
                                                                  --------------

                                 LEASE AGREEMENT

                                 BY AND BETWEEN

                      ROGER G. LITTLE, TRUSTEE OF SPI-TRUST
                                   AS LANDLORD

                                       AND

                                SPIRE CORPORATION
                                    AS TENANT

                         DATED: AS OF SEPTEMBER 1, 2008

<PAGE>

           THIS LEASE AGREEMENT (this "LEASE AGREEMENT") is hereby made and
entered into as of this 1st day of September, 2008 (the "EFFECTIVE DATE"), by
and between Roger G. Little, Trustee of SPI-TRUST, established under a
declaration of trust dated October 30, 1996, a certified copy of which is
recorded with the Hillsborough County Registry of Deeds at Book __________, Page
__________, having a mailing address of One Patriots Park, Bedford,
Massachusetts, 01730 (the "LANDLORD") and Spire Corporation, a Massachusetts
corporation, with an address of One Patriots Park, Bedford, Massachusetts, 01730
(the "TENANT").

                              W I T N E S S E T H:

           WHEREAS, Tenant wishes to lease the Premises (as herein defined) from
Landlord; and

           WHEREAS, Landlord wishes to lease the Premises to Tenant.

           NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant hereby enter
into this Lease Agreement upon the terms and conditions set forth herein.

           1. LEASE OF PREMISES. Subject to all of the provisions herein
contained, and in consideration of the rentals to be paid to Landlord by Tenant,
and the other covenants and agreements to be kept and performed by Tenant
hereunder, as hereinafter set forth, Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, the land situated in the Town of Hudson,
Hillsborough County, New Hampshire commonly known and numbered as 25 Sagamore
Park Road, as more particularly described on Exhibit A attached hereto and made
a part hereof (the "LAND") and all improvements and fixtures located thereon,
including without limitation, the two (2) buildings containing a total of
approximately 90,000 square feet, one of which is presently vacant ("BUILDING
#1") and the other is presently used in the Tenant's semiconductor operation
("BUILDING #2"; Building #1 and Building #2, together, the "BUILDINGS"),
together with the benefit of all of the easements, covenants, conditions and
restrictions benefiting the Land and Buildings, and the burden of all of the
easements, covenants, conditions and restrictions burdening the Land and
Buildings. The Land and Buildings are collectively referred to herein as the
"PREMISES". Except for the performance of Landlord's Work (as defined in Section
6 below), Tenant acknowledges and agrees that the Premises are leased in "AS IS,
WHERE IS" condition. Subject to applicable law, Tenant shall use the Premises
only for general office, warehouse, research and development, light
manufacturing and semiconductor processing (the "Permitted Uses") and for no
other use or purpose. The square footage of the Buildings upon which the Rental
is based shall be 90,000 square feet.

           2. TERM. The term of this Lease Agreement shall be for a period of
seven (7) years, beginning on the Effective Date (the "COMMENCEMENT DATE") and,
unless terminated as herein provided, continuing until expiration on the 31st
day of August, 2015 (the "TERM EXPIRATION DATE"). Tenant shall have the right to
extend the Term for one (1) additional period of five (5) years as set forth in
Section 20 herein.

                                        1
<PAGE>

           3. RENT. For the use and occupancy of the Premises Tenant hereby
covenants and agrees to pay to or for the account of Landlord as rental
("RENTAL"), without demand, deduction or offset, the following amounts:

           (a) An annual fixed rental due and payable in advance in monthly
installments as provided below ("BASE RENTAL") to Landlord, c/o Blouin & Company
Inc., University Office Park, 51 Sawyer Road, Suite 310, Waltham, Massachusetts
02453, on the first day of each and every calendar month during the Term (a
prorated and proportional rent shall be due for any periods of less than a
calendar month at the commencement and expiration of the Term), all without set
off or deduction:

           ---------- -------------------------- ---------------- --------------
           Lease      Annual Base Rental Rate    Annual Base      Monthly Base
           Year:      (per square foot)          Rental:          Rental:
           ---------- -------------------------- ---------------- --------------
           1          $12.50                     $1,125,000.00    $93,750.00
           ---------- -------------------------- ---------------- --------------
           2          $13.25                     $1,192,500.00    $99,375.00
           ---------- -------------------------- ---------------- --------------
           3          $14.00                     $1,260,000.00    $105,000.00
           ---------- -------------------------- ---------------- --------------
           4          $14.75                     $1,327,500.00    $110,625.00
           ---------- -------------------------- ---------------- --------------
           5          $15.50                     $1,395,000.00    $116,250.00
           ---------- -------------------------- ---------------- --------------
           6          $16.25                     $1,462,500.00    $121,875.00
           ---------- -------------------------- ---------------- --------------
           7          $17.00                     $1,530,000.00    $127,500.00
           ---------- -------------------------- ---------------- --------------

           (b) All real estate taxes, or taxes in the nature of real estate
taxes, or taxes assessed in lieu of or in addition thereto (except income taxes
of general application, inheritance, estate or like taxes) including special and
general assessments, however the same may be designated, levied or to be levied
by any taxing authority upon the Premises ("REAL ESTATE TAXES") throughout the
entire Term. Real Estate Taxes shall be paid by Tenant directly to such taxing
authority upon receipt of the tax bill but in no event later than fifteen (15)
days prior to the last date upon which such taxes may be paid without interest
or penalty. If the first or last year of the Term shall not be co-extensive with
the tax year the amount of taxes payable by Tenant hereunder for such years
shall be prorated in proportion to the period of effectiveness of the Lease
Agreement during such years. Tax receipts shall be furnished to Landlord by
Tenant from time to time upon request to show Tenant's compliance herewith on a
current basis. If requested by any first mortgagee of the Land, Tenant agrees to
instead make monthly deposits to such mortgagee on account of such taxes in an
amount reasonably estimated to be sufficient to pay such taxes when they become
due, provided that such deposits are maintained in a separate account and any
interest payable with respect thereto shall be payable to Tenant.

           (c) All utilities, including, without limitation, costs of
electricity, gas, fuel, water and sewage services assessed against the Premises
("UTILITY COSTS").

           (d) All other costs and expenses of every kind with respect to (i)
operation, maintenance, repair and replacement of the Premises (excluding Direct
Landlord Costs (as defined in Section 6(b) below)) ("OPERATIONS COSTS") and (ii)
insurance of the Premises ("INSURANCE COSTS").

                                        2
<PAGE>

           (e) Notwithstanding Tenant's obligations to pay Real Estate Taxes (as
defined in Section 3(b) above), Utility Costs (as defined in Section 3(c)
above), Operations Costs (as defined in Section 3(d) above) and Insurance Costs
(as defined in Section 3(d) above) as set forth in this Section 3, Landlord
shall be solely responsible for the payment any Direct Landlord Costs (as
defined in Section 6(b) below) and the performance of any obligation associated
with such costs.

           4. NET LEASE. It is the intention of the parties hereto that this is
a net lease and that all costs of ownership, maintenance, repair, replacement
and use of the Premises shall be paid by Tenant in addition to the fixed rent
specified above and other sums payable by Tenant hereunder (each of which shall
be treated as Rental, for non-payment of which Landlord shall have all rights
which Landlord would have for non-payment of fixed rent hereunder), provided,
however, that Landlord shall be responsible for maintenance and repair of
structural portions of the Buildings in accordance with Section 6(b) hereof.
Tenant shall pay to or on behalf of Landlord, through the term of this Lease
Agreement, the rent and other payments hereunder, free of any charges,
assessments, impositions or deductions of any kind, all of which Tenant shall
pay or discharge, without abatement, deduction or set off, and Landlord shall
not be required to make any payment of any kind whatsoever hereunder (whether
due to circumstances now existing or beyond present contemplation of the
parties), except as herein otherwise set forth. It is the intention of the
parties hereto that the obligations of Tenant hereunder shall be separate and
independent covenants and agreements; that the Rental payable by Tenant to, or
on behalf of, Landlord shall continue to be payable in all events except as
expressly provided hereunder; and that the obligations of Tenant hereunder shall
continue unaffected, unless the requirement to pay or perform the same shall
have been abated pursuant to an express provision of this Lease. Tenant waives
all rights (i) to any abatement, suspension, deferment, reduction, or deduction
of or from the Rental or (ii) to quit, terminate, or surrender this Lease or the
Premises or any part thereof, except as expressly provided herein. The rights of
the parties in the event of a casualty to the Premises shall be governed by
Section 13 hereto.

           5. Tenant Covenants. Tenant further covenants and agrees as follows:

           (a) Except as set forth in Section 6(b) below, to maintain the
Premises including, without limitation, the doors and windows thereof in good
repair, condition and order in accordance with good maintenance practices; and
to yield peaceable possession to Landlord of the Premises at termination or
expiration of this Lease Agreement free of all tenants and occupants in as good
repair and condition as at occupancy by Tenant or may be put thereafter except
for ordinary wear and tear.

           (b) To comply fully with any applicable statutes, ordinances, and
lawful regulations, rules or orders which are now or hereafter in effect
pertaining to the Premises, including, without limitation, the Americans with
Disabilities Act, and to the activities conducted thereon, to comply with all
applicable rules or conditions reasonably imposed with respect to the Premises
by any insurance carrier, and to prevent the existence of any nuisance, or the
violation of any statute, ordinance or valid rule, order or regulation with
respect thereto and to save Landlord harmless from any failure to do so.

           (c) To keep the Premises and improvements thereto and property of
Tenant therein

                                        3
<PAGE>

insured to the extent of replacement value, against loss or damage by fire,
windstorm, hail, explosion and the other risks included in Causes of Loss -
Special Form property insurance policies from time to time, subject, however to
a "deductible" clause in the maximum amount of $50,000 or such other amount as
Tenant shall reasonably request and Landlord shall approve, which approval shall
not be unreasonably withheld or delayed; all of such policies shall name as
insured Landlord, any first mortgagee to the Premises and Tenant, as their
respective interests may appear and shall provide that they may not be cancelled
without at least fifteen (15) days' prior written notice to Landlord. Tenant
agrees to furnish Landlord with a certificate by the insurer as to the existence
thereof, together with a copy of such policy. Tenant may procure such insurance
under a so-called blanket policy insuring other locations of the Tenant,
provided however, that such policy shall provide on its face that such portion
of the face amount as is required by this Lease Agreement is payable with
respect to covered loss relating to the Premises and is not affected by losses
on other premises.

           (d) To the fullest extent permitted by law, to indemnify Landlord
fully against and to save Landlord harmless from loss, liability, costs,
expense, attorney's fees and court costs, arising directly or indirectly from
any claim or lawsuit by any person, firm, corporation, association or
governmental agency or authority whomsoever, including (but not limited to)
Tenant's officers, agents, contractors, employees or invitees, for damages
asserted or sustained to person or property by reason of any activity conducted
by Tenant upon the Premises, or of any breach by Tenant, its officers, agents,
employees, or invitees of the terms, provisions and conditions of this Lease
Agreement, or occurring upon the Premises, regardless of the merit or lack of
merit of any such claim or lawsuit, of the fault or lack of fault on the part of
Landlord and regardless of the amount of insurance carried; and further, to
procure and keep in force, at Tenant's sole expense, public liability insurance
written on an occurrence basis covering the Premises, with combined single
limits of at least $5,000,000.00 per occurrence, and $5,000,000.00 annual
aggregate, and of $l,250,000.00 for property damage naming Landlord and any
mortgagee of the Premises as additional insureds, provided that if greater
coverage limits are normally carried under similar circumstances, Tenant agrees
to increase such coverage limits appropriately.

           (e) To use its best efforts to prevent the filing or imposition of
any lien of any kind whatsoever upon or against the Premises based upon or
arising out of Tenant's actions, except by Landlord or with Landlord's prior
written consent and in the event of the filing or imposition of any such lien,
to discharge same or to obtain a surety bond sufficient to discharge same within
30 days following the date of any such filing or imposition.

           (f) To permit Landlord to enter the Premises during normal business
hours, subject to Tenant's reasonable security and confidentiality requirements,
where such entry will not unreasonably disturb or interfere with Tenant's use of
the Premises and the operation of Tenant's business, and at any time in case of
emergency, to examine, inspect, or make repairs, replacements, changes or
alterations as set out in this Lease Agreement, and to take such steps as
Landlord may reasonably deem necessary for the safety, improvement or
preservation of the Premises. Landlord shall give reasonable notice to Tenant
prior to any such entry, except in the case of an emergency, but no such entry
shall constitute an eviction or entitle Tenant to any abatement of Rental.

                                        4
<PAGE>

           (g) In the event that Tenant shall fail to perform any act required
by the foregoing covenants and such failure shall continue for a period of 30
days after notice thereof from Landlord, Landlord may (but shall not be
obligated to do so) perform such act without waiving or releasing Tenant from
any of its obligations with respect thereto. Landlord shall be entitled to
recover from Tenant all sums paid or costs incurred in performing such acts on
demand.

           (h) To perform all maintenance, repairs and replacements necessary to
keep in good condition and working order (a) the heating, ventilating, air
conditioning, plumbing, security, electrical, life safety and all other
mechanical systems and equipment serving the Premises, (b) the trees, shrubs,
plants, landscaping, on or otherwise serving the Premises , and (c) the parking
lot, driveways and walkways on the Premises.

           (i) To perform all clearance and removal of snow and ice from the
parking areas, driveways and walkways of the Premises for safe use of such
parking areas and safe access to the Premises by Tenant and its employees,
agents, contractors and invitees.

           6. LANDLORD'S COVENANTS. (a) Landlord hereby represents, warrants,
covenants and agrees as follows that Landlord has good and marketable title to
the Land and the Premises, and Landlord has full right and authority to lease
the Premises and to carry out its obligation under this Lease Agreement.

           (b) Landlord agrees to maintain all structural portions of the
Buildings including the foundation, roof, exterior walls, structural members and
other supporting structures, in good repair, condition and order; provided,
however, that Landlord's responsibility for repair and maintenance of the roof
shall exclude responsibility for repair of (i) leaks occurring by reason of roof
penetrating structures installed or constructed by Tenant, or (ii) any repairs
required by reason of the negligence or default of Tenant, its officers, agents,
employees, and invitees except to the extent that Landlord shall be insured
against the same and receive the proceeds of such insurance and Landlord's
mortgagees shall not retain the proceeds of such insurance. In addition, no
later than February 28, 2009 (unless consented to by Tenant, which consent may
be granted or withheld in its sole discretion), but subject to extension for any
delay caused by Tenant, Landlord, at its sole expense, shall perform the work
describe on Exhibit B attached hereto (the "Landlord's Work"). Except as
expressly stated, any costs incurred by Landlord in performing the foregoing
obligations shall be deemed a "DIRECT LANDLORD COST". Any exclusions from
Landlord's maintenance obligation above shall be Tenant's responsibility.
Landlord is not obligated to provide or perform any service, maintenance,
repair, or replacement with respect to the Premises except as set forth in this
Section 6(b). In performance of its obligations set forth in this Section 6(b),
Landlord shall use commercially reasonable efforts to perform such work in a
manner and at such times as shall minimize disruption of Tenant's business
operations in the Premises.

           (c) To give Tenant prompt notice of the name and mailing address of
any mortgagee or holder of a first mortgage lien with respect to the Premises
and of any change therein.

                                        5
<PAGE>

           7. SUBLETTING. Subject to all of the provisions of this Lease
Agreement, Tenant shall not sublet, license, or permit the use or occupancy of,
all or any portion of the Premises without the prior written consent of the
Landlord, which consent, shall not be unreasonably withheld, conditioned or
delayed. Tenant shall have no right to assign this Lease Agreement nor any of
its rights hereunder, nor may same be assigned or pass to another by operation
of law, and any attempt to so assign, without the express prior consent of
Landlord, shall be utterly void. If Tenant desires to effectuate a sublease,
Tenant shall deliver a notice to Landlord, which shall include (i) the
commencement date and termination date of such sublease and the rent per square
foot, (ii) a true and complete statement reasonably detailing the identity of
the proposed sublessee, the nature of its business and its proposed use of the
Premises, (iii) current financial information with respect to the sublessee,
including its most recent financial statements, and (iv) the form of agreement
by which the sublease will be effected. Landlord shall be entitled to fifty
percent (50%) of any consideration payable under the sublease which exceeds the
Base Rental (pro rated on a per square foot basis for the portion of the
Premises subject to such sublease) accruing hereunder during the term of the
sublease after first deducting the monthly amortized costs incurred by Tenant to
prepare the subleased premises for occupancy by such subtenant and the amount of
the reasonable out-of-pocket brokerage and attorneys' fees incurred by Tenant in
connection with such sublease. The sums payable under this Section shall be paid
by Tenant to Landlord monthly as and when paid from the subtenant to Tenant. The
obligation to obtain Landlord's prior consent and Landlord's right to share in
profit shall not apply to (i) transactions with a business entity, into or with
which Tenant is merged or consolidated, or to which all or substantially all of
Tenant's assets are transferred, so long as (A) such transfer was made for a
legitimate independent business purpose and not primarily for the purpose of
transferring this Lease; (B) the successor to Tenant has a net worth computed in
accordance with generally accepted accounting principles at least equal to the
net worth of Tenant immediately prior to such merger, consolidation or transfer;
and (C) proof satisfactory to Landlord of such net worth is delivered to
Landlord at least ten (10) days prior to the effective date of any such
transaction. Landlord's consent to any sublease shall not relieve Tenant from
the obligation to obtain Landlord's consent to any further sublease.
Notwithstanding any sublease or assignment, Tenant shall remain fully liable for
the payment of all Rental and for the performance of all the terms, covenants
and conditions contained in this Lease on Tenant's part to be observed and
performed, and any default under any term, covenant or condition of this Lease
by any sublessee or assignee shall be deemed to be a default under this Lease by
Tenant.

           8. SIGNS. Tenant shall be entitled to erect reasonable ground and
building signs, subject to approval of Landlord, which shall not be unreasonably
withheld, provided, however, Tenant's signs that are presently existing and/or
installed on the Premises are hereby deemed approved by Landlord. All signs
installed by Tenant shall comply with all requirements of appropriate
governmental authorities, and all necessary permits or licenses shall be
obtained by Tenant. Tenant shall maintain all signs in good condition and repair
at all times, and shall save Landlord harmless from injury to person or
property, arising from the erection and maintenance of said signs. Upon vacating
the Premises, Tenant shall remove all signs and repair all damage caused by such
removal.

           9. ALTERATIONS AND IMPROVEMENTS BY TENANT. (a) Tenant shall have the
right during

                                        6
<PAGE>

the continuance of this Lease Agreement to make such non-structural alterations,
changes and improvements to the Premises as may be proper and necessary for the
conduct of Tenant's business and for the full beneficial use of the Premises.
Tenant shall not make any structural change in the Premises, alterations or
additions to the exterior of the Premises (unless such alterations or additions
are cosmetic in nature), or penetrations of the roof (except in connection with
the re-installation of Tenant's equipment pursuant to Exhibit B hereof ),
without first having obtained Landlord's written consent thereto, which consent
may be withheld in Landlord's sole discretion. Without limitation, Landlord may
condition any such consent by reserving the right to require the Premises to be
restored to the same condition they were in prior to the making of any such
structural or exterior change. Tenant shall pay all costs and expenses of such
alterations, changes, and improvements, shall make the same in a good and
workmanlike manner, and in accordance with all applicable laws, codes, and
building regulations, and shall, prior to the making of such alterations,
changes, and improvements, assure Landlord, in form satisfactory to Landlord,
that payment for the same will be made by Tenant. Tenant hereby completely and
fully indemnifies Landlord against any Mechanic's Liens or other liens or claims
in connection with the making of such alterations, changes, and improvements.
Any liens arising out of such alterations, changes, and improvements shall be
discharged of record by Tenant within thirty (30) days after the same have been
filed, Tenant shall pay any and all taxes relating to its personal property,
business, or improvements and alterations constructed as provided in this
Section 9. Upon completion of any non-cosmetic alterations, Tenant shall provide
Landlord an "As Built" plan of the Premises showing such alterations in
reasonable detail. With respect to any non-cosmetic alteration, change or
improvement performed by Tenant after the date hereof, Tenant will restore the
Premises to the condition which existed prior to the making of alterations,
changes or improvements, at the expiration or earlier termination of the Term,
unless Landlord has failed to request such restoration at the time Landlord's
consent is granted, if such consent is required, or by notice to Tenant that
Landlord shall waive its rights to require such restoration, in which event
Tenant shall have no obligation to restore the Premises. Such waiver by Landlord
may be in whole or in part, and if in part, subject to the preceding sentence,
Tenant shall restore to the extent such obligation is not waived by Landlord.
Any cabling or wiring installed in the Premises shall be removed by Tenant at
the end of the Term if and to the extent so requested by Landlord.

           (b) Except as otherwise provided, all signs, furnishings, trade
fixtures and other removable equipment installed in the Premises by Tenant
(whether before or during the Term) and paid for by Tenant shall remain the
property of Tenant and shall be removed by Tenant upon the termination of this
Lease Agreement provided that if any of the same are affixed to the Premises,
Tenant shall immediately repair any damage caused by such removal.

           10. WAIVER OF CLAIMS AND WAIVER OF SUBROGATION. Tenant hereby
releases Landlord from any and all liability or responsibility to the Tenant or
anyone claiming through or under Tenant by way of subrogation or otherwise for
any loss or damage to property caused by fire or any other perils insured or
required to be insured against in policies of insurance covering such property,
even if such loss or damage shall have been caused by the fault or negligence of
the Landlord, or anyone for whom Landlord may be responsible. Tenant shall
insure that its insurance policy contains a waiver of subrogation for the
benefit of Landlord.

                                        7
<PAGE>

           11. SUBORDINATION. (a) Subject to Section 11(b) hereof, this Lease
shall be subordinate to any mortgage, deed of trust or ground lease or similar
encumbrance (collectively, a "MORTGAGE", and the holder thereof from time to
time the "HOLDER") from time to time encumbering the Premises, whether executed
and delivered prior to or subsequent to the date of this Lease, unless the
Holder shall elect otherwise. At the request of the Holder or any other party
who shall succeed to the interest of Landlord (such Holder or other party, a
"SUCCESSOR"), subject to Section 11(b) hereof, Tenant shall attorn to the
Successor. Not more than fifteen (15) days after receipt of a written request
from Landlord or a Holder, Tenant agrees to execute such instruments as may be
required by any such Holder in order to effectuate such subordination and such
certificates as to the status of this Lease Agreement and other matters as such
Holders shall reasonably require. Tenant shall be bound by and observe all
conditions of said Mortgage which shall require the giving of reports and copies
of notices to any such Holders, as well as those which afford such Holders the
opportunity to cure any default of Landlord hereunder and, subject to paragraph
(b) below, to take possession of the Premises without liability for any default
of the Landlord occurring prior thereto or which cannot reasonably be cured by
such Holder not be subject to any offset or defenses on account thereof nor
bound by any prepayment of rent beyond the then current period.

           (b) Notwithstanding the foregoing, the provisions of Section 11(a)
above are conditioned upon, Landlord procuring from any such Holder an
agreement-in-writing, in a form reasonably acceptable to Tenant, which shall be
delivered to Tenant, providing in substance that so long as Tenant shall
faithfully discharge the obligations on its part to be kept and performed under
the terms of this Lease Agreement, Tenant's tenancy will not be disturbed nor
this Lease Agreement affected by any default under such Mortgage, and Tenant
agrees that this Lease Agreement shall remain in full force and effect even
though default in the Mortgage may occur.

           (c) With reference to any assignment by Landlord of Landlord's
interest in this Lease, or the rents payable hereunder, conditional in nature or
otherwise, which assignment is made to the holder of a Mortgage on the Premises,
Tenant agrees:

           (i)       That the execution thereof by Landlord, and the acceptance
                     thereof by the Holder of such Mortgage shall never be
                     treated as an assumption by such Holder of any of the
                     obligations of Landlord hereunder, unless such Holder
                     shall, by notice sent to Tenant, specifically otherwise
                     elect or upon foreclosure, Holder has taken possession of
                     the Premises; and

           (ii)      That, except as aforesaid, such Holder shall be treated as
                     having assumed Landlord's obligations hereunder only upon
                     foreclosure of such Holder's Mortgage and the taking of
                     possession of the Premises, or, in the case of a ground
                     lessor, the assumption of Landlord's position hereunder by
                     such ground lessor.

           12. LIMITATION OF LANDLORD LIABILITY. (a) If Landlord shall fail to
perform any covenant, term or condition of this Lease Agreement upon Landlord's
part to be performed and, as a consequence of such default, Tenant shall recover
a money judgment against Landlord, such judgment shall be satisfied only out of
the interest of Landlord in the Premises and the Premises or insurance proceeds
therefrom and Landlord shall not be liable for any deficiency. It is

                                        8
<PAGE>

understood and agreed that in no event shall Tenant have any right to levy
execution against any property of Landlord other than its interest in the
Premises as herein before expressly provided. Upon receipt of notice to do so
from any first mortgagee of the Premises, Tenant agrees to give written notice
to such mortgagee in the event of any default hereunder by Landlord. Nothing
herein contained shall be deemed to in any way limit or restrict Tenant's right
to obtain specific performance or other injunctive or equitable relief with
respect to the performance by Landlord of its covenants herein.

           (b) To the fullest extent permitted by law, Tenant hereby agrees that
Landlord shall not be liable for any claim for damage to person or property,
sustained by Tenant or any person claiming through Tenant resulting from any
accident or occurrence in, about, or upon the Premises unless due to the fault
or negligence of Landlord, and Landlord's failure to make such repairs as it is
obligated to make within a reasonable period after notice from Tenant of the
need for such repairs. Said waiver shall include claims for unforeseen acts or
events resulting in damage or injury to person or property sustained by Tenant
or any person claiming through Tenant.

           (c) The sale, conveyance or assignment of the Premises shall operate
to release Landlord from liability, from and after the effective date thereof,
upon all of the covenants, terms and conditions of this Lease Agreement, express
or implied, except as such may relate to the period prior to such effective
date, and Tenant shall with respect to claims arising thereafter look solely to
Landlord's successor in interest in and to this Lease Agreement. This Lease
Agreement shall not be affected by any such sale, conveyance or assignment, and
Tenant shall attorn to Landlord's successor in interest thereunder.

           (d) Landlord shall not be deemed to be in default of its obligations
under this Lease Agreement unless Landlord or any mortgagee of which Tenant has
been given notice pursuant to Section 6(c) shall have received notice thereof
and such default shall continue uncured for a period of thirty (30) days
following receipt of such notice. No performance by any such mortgagee of
Landlord's obligations or exercise of its rights, undertaken in a commercially
reasonable manner, shall subject such mortgagee to any liability under this
Lease Agreement. Landlord and Tenant agree that the covenants to be performed by
each are independent and Tenant shall have no right to offset against Rental
(except as expressly permitted hereunder) or terminate this Lease in the event
of Landlord's failure to perform any of its obligations hereunder.

           13. CASUALTY TO PREMISES. (a) If, during the term hereof, the
Premises shall be destroyed or damaged by fire or other casualty, in whole or in
part, Tenant shall not be entitled to surrender possession of the Premises nor
shall Tenant's liability to pay rent under this Lease Agreement cease and Tenant
shall restore the Premises to substantially the same condition as existed before
such destruction or damage with all reasonable speed. If required by Landlord's
mortgagee, all insurance proceeds shall be delivered by Tenant to Landlord's
mortgagee and Landlord's mortgagee shall make monthly disbursements of the same
during the course of reconstruction subject to Tenant's compliance with such
reasonable construction disbursement conditions as Landlord's mortgagee require.
Tenant shall be required to fund any restoration costs to the extent insurance
proceeds are not sufficient to fund the restoration of the Premises.

                                        9
<PAGE>

If Landlord's mortgagee shall refuse to release insurance proceeds to Tenant,
Tenant shall have the right to terminate this Lease, which election must be
exercised by Tenant within thirty (30) days after the date of notice from Tenant
to Landlord that the insurance proceeds will not be released by Landlord's
mortgagee.

           (b) If Landlord desires to perform the restoration related to such
destruction or damage, Landlord shall notify Tenant within sixty (60) days after
the happening of such destruction or damage. If Landlord shall so elect to
perform the repairs, Tenant shall deliver all insurance proceeds to Landlord and
Landlord shall restore the Premises to substantially the same condition as
existed prior to the destruction or damage, subject to legal requirements. If
the insurance proceeds delivered to Landlord by Tenant are insufficient to fund
the restoration of the Premises, Tenant shall fund any projected shortfall, as
the same may be revised from time to time, within ten (10) days of request of
Landlord. If Landlord's mortgagee shall refuse to release insurance proceeds to
Landlord or shall require the same to be applied to the debt secured by the
mortgage, Landlord shall notify Tenant and Tenant shall have the right to
terminate this Lease, which election must be exercised by Tenant within thirty
(30) days after the date of notice from Landlord that the insurance proceeds
will not be released by its mortgagee.

           (c) Reconstruction shall be at least equal in quality to the original
construction of the Premises and shall, to the extent practical, be wholly
consistent in design and materials therewith. It shall be undertaken only in
full compliance with law after all permits and approvals have been obtained. It
shall be further undertaken only after plans and specifications therefor have
been approved by Landlord, which approval shall not be unreasonably withheld or
delayed.

           (d) Landlord shall have no liability to Tenant by reason of any
injury to or interference with Tenant's business or property arising from any
such destruction or damage. Landlord shall in no event be liable for any such
injury or interference resulting from the making of any repairs to the Premises
undertaken by Landlord in good faith.

           14. CONDEMNATION.

           (a) In the event that the entire Premises shall be taken by
condemnation or right of eminent domain, this Lease Agreement shall terminate as
of the day possession shall be taken by the taking authority, and Landlord and
Tenant shall be released from any further liability hereunder thereafter
accruing.

           (b) In the event that only a portion of the Premises shall be taken
by condemnation or right of eminent domain and the portion so taken renders the
balance unsuitable for the purpose of this Lease Agreement, the Tenant may, at
its option, elect to terminate this Lease Agreement effective as of the day
possession shall be taken, provided thirty (30) days notice of such termination
is given. If, in such case, this Lease Agreement is not terminated, Landlord
may, at its option restore the Premises with reasonable speed to an
architectural unit as nearly like its condition prior to such taking as shall be
practicable, and if during and/or after the work of restoration, Tenant is
deprived of the use of all or a part of the Premises, an appropriate reduction
of Rental, depending upon the time during which and the portion of said Premises
of which Tenant is so deprived, shall be granted. In the event Landlord elects
not to so restore the

                                       10
<PAGE>

Premises, then Tenant may at its option: (i) terminate this Lease Agreement and
any further liability hereunder; or (ii) continue this Lease Agreement with the
Rental adjusted to appropriately reflect the diminution in value of the Premises
effected by such taking, effective as of the date thereof. If Tenant elects to
continue this Lease Agreement then Tenant may, at its own cost and expense, so
restore the Premises.

           (c) All damages awarded in connection with the taking of the
Premises, whether allowed as compensation for diminution in value to the
leasehold or to the fee of the Premises, shall belong to the Landlord.
Notwithstanding the foregoing, Tenant shall be entitled to make a separate claim
for damage to merchandise and moveable trade fixtures, and removal,
reinstallation, and moving expenses, provided it does not reduce the award
payable to Landlord.

           15. DEFAULT. If: (i) there shall be a default in payment of any
Rental which shall continue for a period of ten (10) days following receipt by
Tenant of notice thereof from Landlord; or (ii) there shall be a default in any
other of Tenant's obligations hereunder or if the Premises be abandoned or
vacated by Tenant; and if such default or condition shall continue for a period
of thirty (30) days following receipt by Tenant of notice from Landlord to make
good such default or correct such condition; or (iii) any proceedings under the
present or any future Bankruptcy Act be instituted by or against Tenant, or any
receiver or trustee be appointed for or ordered to dispose of Tenant's business
or property, or if Tenant makes any assignment or conveyance for benefit of
creditors and if any such proceeding instituted against Tenant shall not be
dismissed within 20 days following the date of such institution; then, in such
event Landlord shall have the right, immediately or at any time thereafter, to
enter upon the Premises in the name of the whole and repossess the same as of
its former estate and expel Tenant and all those claiming by, through or under
it, and remove their goods and effects and store the same on behalf of Tenant
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 other default
hereunder and upon entry as aforesaid this Lease Agreement shall be terminated.
Landlord, at its election, may effect such termination by written notice to
Tenant to that effect, which shall have the same force as an entry for breach as
provided in this Section. In case of such termination, Landlord shall become
entitled to receive from Tenant, and Tenant shall pay to Landlord on demand, as
initial liquidated damages, a sum equal to the amount by which the sum of the
rent and other payments called for hereunder for the remainder of the term
exceeds the fair rental value of the Premises for the remainder of the term.
Further, Tenant shall, on demand of Landlord, from time to time indemnify
Landlord against all loss of rent, other payments and damages, however caused,
which it may incur by reason of such termination during the remainder of the
term, first giving credit to any payments made by Tenant to Landlord on account
of initial liquidated damages as aforesaid. In computing such damages there
shall be added such reasonable expenses as Landlord may incur in connection with
such termination and/or reletting, such as legal expenses, brokerage, expenses
for keeping the Premises in good order and for preparing the same for reletting
and expenses and/or decorations in the Premises as way be necessary for the
purpose of reletting. Landlord shall also have the right to pursue such other
rights and remedies as may be allowed at law or equity against Tenant, and any
and all other parties who may be liable. All such remedies shall be cumulative.
Provided, however, if any such default be under clause (ii) above and it would
take more than thirty (30) days to cure the same, Landlord shall not forfeit the
lease created hereby, enter upon the Premises or exercise any of the other
remedies herein provided for

                                       11
<PAGE>

such default if Tenant begins the cure thereof within such period and pursues
same with reasonable due diligence to completion.

           16. QUIET ENJOYMENT. The Landlord covenants and agrees with Tenant
that as long as the Tenant keeps and performs all of the covenants and
conditions to be performed by Tenant hereunder, during the term of this Lease
Agreement Tenant shall have quiet and undisturbed and continued possession of
the Premises, free from any claims against the Landlord and all persons claiming
under, by or through the Landlord.

           17. ARBITRATION. If any controversy shall arise relating to the
provisions of this Lease Agreement or the tenancy or other rights created hereby
(other than with respect to the lack of payment of Rental), and such dispute
shall not be resolved by the parties within fifteen (15) days after either party
shall notify the other in writing of its desire to arbitrate the dispute, then
the dispute shall be settled by arbitration. Such arbitration shall be conducted
at Boston, Massachusetts, under the rules then obtaining of the American
Arbitration Association. There shall be a board of three arbitrators, one
appointed by the Landlord, one appointed by Tenant and a third selected by the
two so named. The arbitrators shall have no power to add to, subtract from or
modify any of the terms or conditions of this Lease Agreement. The award of the
arbitrators shall be final and binding and conclusive on the parties, provided,
however, that nothing herein contained shall limit Tenant's right to exercise
the rights referred to in the last sentence of Section 12(a) hereof.

           18. GENERAL PROVISIONS. (a) Words of any gender used herein shall be
construed to include any other gender, and words in the singular number shall be
held to include the plural, unless the context otherwise requires, (b) the terms
and provisions of this Lease Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors, permitted
assigns and legal representatives; (c) the headings used herein are for
reference purposes only and do not affect the meaning or construction hereof;
(d) this Lease Agreement may not be altered or amended and no waiver of any of
the provisions hereof shall be effective except by an instrument in writing
signed by both parties hereto; (e) all notices, consents, waivers or demands
hereunder shall be in writing and shall be delivered or mailed by a nationally
recognized overnight mail courier, Registered or Certified mail, postage paid,
to the party to whom given at the address set forth above or at such other
address as such party may specify in accordance with this clause; (f) if any
provision of this Lease Agreement shall be held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions of this Lease Agreement shall not in any way be affected or impaired
thereby; (g) this Lease Agreement shall be governed by and construed in
accordance with the laws of the State of New Hampshire; (h) each of the parties
represents and warrants to the other that it has not dealt with any broker or
finder in connection with this Lease Agreement and agrees to indemnify and hold
the other harmless from and against any claims, liabilities or losses (including
attorney's fees) arising out of a breach of this warranty; (i) Landlord and
Tenant shall each have the right to contest in good faith the validity or amount
of any tax, assessment, license fee, excise fee and other charge for which it is
responsible under this Lease Agreement provided that no contest by Tenant may be
undertaken unless tenant shall, upon Landlord's request, deposit with Landlord
adequate and sufficient security against any loss or damage which may ensue or
involve the reasonable possibility of forfeiture, sale or disturbance of
Landlord's interest in the Premises and

                                       12
<PAGE>

that upon the final determination of any contest by Tenant, Tenant shall
immediately pay and satisfy the amount found to be due, together with any costs,
penalties and interest; (j) in any case where either party hereto is required to
do any act, other than the making of any payment of Rental, the time for
performance thereof shall, be extended for a period equal to any delay caused by
or resulting from any act of God, war, civil commotion, fire, casualty, labor
difficulties, shortages of labor, materials or equipment, governmental
regulations or other causes beyond such party's reasonable control, to the
extent that the performance of such obligation was actually prevented thereby;
and (k) This instrument constitutes the entire agreement between the parties
relating to the subject matter hereof and supercedes all prior negotiations,
contracts or understandings; Tenant acknowledges that except for the provisions
of Section 6 hereof, it has not been induced to enter into this Lease Agreement
based on any representations made by Landlord.

           19. DIRECT LANDLORD COSTS AND EXCLUSIONS. (a) Except for Direct
Landlord Costs (as defined in Section 6(b)), all expenses and costs incurred by
Tenant in performing its obligations under this Lease Agreement shall remain the
expense of Tenant, including, without limitation, all expenses and costs related
to the maintenance, repair and replacement of the Premises and the systems and
services exclusively serving the same.

           20. EXTENSION OF TERM. (a) Tenant shall have the right to extend the
Term hereof (the "Extension Option") upon all of the same terms, conditions,
covenants and agreements herein contained (except that Base Rental for the first
year of such extended period shall be the greater of (a) the Base Rental in
effect immediately prior to such extended period or (b) the Fair Market Rent,
which shall be determined in accordance with the procedure set forth below and
thereafter shall be adjusted in accordance with the provisions set forth below),
for one (1) additional period of five (5) years (such period, the "Extended
Term") provided that Tenant is not in default beyond any applicable notice and
cure periods at either the time of delivery of the Exercise Notice or at the
commencement of the Extended Term. If Tenant desires to exercise the Extension
Option, Tenant shall give notice (the "Exercise Notice") to Landlord not later
than twelve (12) months prior to the Term Expiration Date. Upon the giving of
notice by Tenant to Landlord exercising Tenant's Extension Option and provided
the conditions as to no default beyond applicable notice and cure periods by
Tenant are satisfied, the Term in accordance with the provisions of this Section
shall be extended for the Extended Term without the necessity of the execution
of any additional documents; and in such event all references herein to the Term
shall be construed as referring to the Term, as so extended, unless the context
clearly requires otherwise. In the event that Fair Market Rent has not been
determined by the commencement of the Extended Term, Base Rental for the first
year of such Extended Term shall be the Base Rental in effect immediately
preceding the Extended Term, and shall be retroactively adjusted upon the final
determination of Fair Market Rent, if applicable. For purposes of this Lease,
the term "Fair Market Rent" shall mean the Base Rental on the date on which the
Base Rental will become effective for the Extension Option that is being
negotiated in so-called "triple net" leases or is reflected in triple net leases
which have been recently executed, in arm's length transactions between other
landlord and tenants, each acting in its own best interest and without duress,
for comparable space and for a comparable term located in the Hudson, New
Hampshire area, with such adjustment as is necessary in order to reflect the
business terms and obligations of the parties as are set forth in this Lease.

                                       13
<PAGE>

           (b) If Tenant properly exercises the Extension Option, the Base
Rental for the first year of the Extended Term shall be determined in the
following manner. The Base Rent for the first year of the Extended Term shall be
the greater of (a) the Base Rent in effect immediately prior to the Extended
Term or (b) an amount equal to the Fair Market Rent for the Premises as of the
commencement of the Extended Term, as specified by Landlord by notice to Tenant
not less than ninety (90) days prior to commencement of the Extended Term,
subject to Tenant's right of arbitration as set forth below. If Tenant believes
that the Fair Market Rent specified by Landlord exceeds the actual Fair Market
Rent for the Premises as of commencement of the Extended Term, then Tenant shall
so notify Landlord within ten (10) business days following receipt of Landlord's
notice. If Tenant fails to so notify Landlord within said ten (10) business
days, Landlord's determination of the Fair Market Rent for the Premises for the
Extended Term shall be final and binding upon the parties. If the parties are
unable to agree upon the Fair Market Rent for the Premises within ten (10) days
after Landlord's receipt of notice of Tenant's objection, the amount of Base
Rent as of commencement of the Extended Term for the first year of such Extended
Term shall be determined as follows:

                               (1) Within thirty (30) days after receipt of
           Landlord's notice specifying Fair Market Rent, Tenant, at its sole
           expense, shall obtain and deliver in writing to Landlord a
           determination of the Fair Market Rent for the Premises for a term
           equal to the Extended Term from a broker ("Tenant's Broker") licensed
           in the State of New Hampshire for at least the immediately preceding
           five (5) years. If Landlord accepts such determination, the Base Rent
           for the first year of the Extended Term shall be the greater of (a)
           the Base Rental in effect immediately preceding the Extended Term or
           (b) an amount equal to of the amount determined by Tenant's Broker.

                               (2) If Landlord does not accept such
           determination, within fifteen (15) days after receipt of the
           determination of Tenant's broker, Landlord shall designate a broker
           ("Landlord's Broker") licensed in the State of New Hampshire for at
           least the immediately preceding five (5) years. Landlord's Broker and
           Tenant's Broker shall name a third broker, similarly qualified,
           within five (5) days after the appointment of Landlord's Broker. Each
           of said three brokers shall each independently determine the Fair
           Market Rent for the Premises as of the commencement of the Extended
           Term for a term equal to the Extended Term of the Lease within 15
           days after the appointment of the third broker. The Base Rent payable
           by Tenant effective as of the commencement of the first year of the
           Extended Term shall be an amount equal to the greater of (a) the Base
           Rental in effect immediately preceding the Extended Term or (b) the
           average of the two closest determinations, and such determination
           shall be binding on Landlord and Tenant.

                               (3) Landlord shall pay the costs and fees of
           Landlord's Broker in connection with any determination hereunder, and
           Tenant shall pay the costs and fees of Tenant's Broker in connection
           with such determination. The costs and fees of any third broker shall
           be paid one-half by Landlord and one-half by Tenant.

           (c) On September 1 of each succeeding year after the first year of
the Extended Term, the Annual Base Rental shall be increased by $67,500.00
(90,000 square feet x $0.75 per square foot).

                                       14
<PAGE>

           21. HOLD OVER. Any holding over by Tenant after the expiration of the
Term of this Lease shall be treated as a tenancy at sufferance and shall be on
the terms and conditions as set forth in this Lease, as far as applicable except
that Tenant shall pay as a use and occupancy charge an amount equal to the
greater of (x) 150% of the Basic Rental calculated (on a daily basis) at the
rental rate payable under the terms of this Lease immediately prior to the
expiration of the Term or (y) the fair market rental value of the Premises, in
each case for the period measured from the day on which Tenant's hold-over
commences and terminating on the day on which Tenant vacates the Premises. In
addition, Tenant shall save Landlord, its agents and employees harmless and will
exonerate, defend and indemnify Landlord, its agents and employees from and
against any and all damages which Landlord may suffer on account of Tenant's
hold-over in the Premises after the expiration or prior termination of the term
of this Lease. Nothing in the foregoing nor any other term or provision of this
Lease shall be deemed to permit Tenant to retain possession of the Premises or
hold over in the Premises after the expiration or earlier termination of the
Lease Term. All property which remains in the Premises after the expiration or
termination of this Lease shall be conclusively deemed to be abandoned and may
either be retained by Landlord as its property or sold or otherwise disposed of
in such manner as Landlord may see fit. If any part thereof shall be sold, then
Landlord may receive the proceeds of such sale and apply the same, at its option
against the expenses of the sale, the cost of moving and storage, any arrears of
rent or other charges payable hereunder by Tenant to Landlord and any damages to
which Landlord may be entitled under this Lease and at law and in equity.

           22. LATE PAYMENT OF RENTAL. If Landlord shall not have received any
payment or installment of Rental (the "OUTSTANDING AMOUNT") on or before the
date on which the same first becomes payable under this Lease (the "DUE DATE"),
the amount of such payment or installment shall incur a late charge equal to the
sum of: (a) five percent (5%) of the Outstanding Amount for administration and
bookkeeping costs associated with the late payment and (b) interest on the
Outstanding Amount from five days after the Due Date through and including the
date such payment or installment is received by Landlord, at a rate equal to the
lesser of (i) the rate announced by Bank of America, N.A. (or its successor)
from time to time as its prime or base rate (or if such rate is no longer
available, a comparable rate reasonably selected by Landlord), plus two percent
(2%), or (ii) the maximum applicable legal rate, if any. Such interest shall be
deemed Rental and shall be paid by Tenant to Landlord upon demand.

           23. TENANT'S ENVIRONMENTAL COVENANTS. Tenant hereby covenants and
agrees with Landlord that until the expiration of the Term and for such further
time as Tenant, or any other person or persons claiming through or under Tenant
shall hold the Premises or any part thereof, Tenant shall:

           (a) comply, and cause all other persons on or occupying the Premises
to comply, with all statutes, codes, ordinances and regulations applicable to
gasoline, petroleum, asbestos containing materials, explosives, radioactive
materials, microbial matter, biological toxins, mycotoxins, mold or mold spores
or any hazardous or toxic material, substance or waste which is defined by those
or similar terms or is regulated as such under any legal requirement, including:
(i) any "hazardous substance" defined as such in (or for purposes of) the (A)
Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C.A. ss. 9601(14) as may be amended from time to time, or any so-called
"superfund" or "superlien" legal requirement, or (B) Chapter 146-C, Section 1 of
the State of New Hampshire Revised Statutes; (ii) any "pollutant or

                                       15
<PAGE>

contaminant" as defined in 42 U.S.C.A. ss. 9601(33); (iii) any material now
defined as "hazardous waste" pursuant to 40 C.F.R. Part 260; (iv) any petroleum,
including crude oil or any fraction thereof; (v) natural gas, natural gas
liquids, liquefied natural gas, or synthetic gas usable for fuel; (vi) any
"hazardous chemical" as defined pursuant to 29 C.F.R. Part 1910; and (vii) any
other toxic substance or contaminant that is subject to any other legal
requirement or other past or present requirement of any governmental agency (or
instrumentality thereof) (collectively, "HAZARDOUS MATERIAL");

           (b) not install, use, generate, manufacture, store, treat, release or
dispose of, nor permit the installation, use, generation, manufacture, storage,
treatment, release or disposal of, Hazardous Material on, under or about the
Premises except in compliance with all applicable statutes, codes, ordinances
and regulations;

           (c) immediately advise Landlord in writing of the release of any
Hazardous Material on, under or about the Premises, and provide Landlord with
copies of all reports, analyses, notices, licenses, approvals, orders,
correspondences or other written materials in its possession or control relating
to the environmental condition of the Premises immediately upon receipt of such
materials;

           (d) not create, or permit to continue in existence, any lien upon the
Premises imposed pursuant to any legal requirement relating to Hazardous
Material used, generated, released or disposed of by Tenant; and

           (e) defend, indemnify and hold harmless Landlord and any Holder from
and against any and all claims, losses, and liabilities arising out of Tenant's
breach of, or failure to comply with, any of the foregoing provisions.

           24. TRANSFERS BY LANDLORD. Landlord shall have the right to transfer
and assign, in whole or in part, all of its rights and obligations hereunder and
in the Premises, and in such event and upon the assumption by the transferee of
the obligations of Landlord hereunder, Landlord shall be released from any
further obligations accruing after the date of transfer, and Tenant agrees to
look solely to such successor-in-interest of Landlord for the performance of
such obligations.

           25. SECURITY DEPOSIT. To secure Tenant's obligations under this
lease, a cash security deposit in the amount of $300,000.00 (the "SECURITY
DEPOSIT") shall be deposited with Landlord upon the execution of this Lease. The
Security Deposit shall be held by Landlord, without liability for interest and
without any requirement to maintain the same in a separate account, as security
for the performance by Tenant of Tenant's covenants and obligations under this
Lease, it being expressly understood that the Security Deposit shall not be
considered an advance payment of Rental or a measure of Tenant's liability for
damages in case of default by Tenant. Landlord may, from time to time, without
prejudice to any other remedy, use the Security Deposit to compensate Landlord
for any Rental not paid when due or to satisfy any other covenant or obligation
of Tenant hereunder. Following any such application of the Security Deposit,
Tenant shall pay to Landlord on demand the amount so applied in order to restore
the Security Deposit to its original amount. If Landlord transfers its interest
in the Premises during the term of this Lease, Landlord shall assign the
Security Deposit to the transferee and upon assumption by such

                                       16
<PAGE>

transferee of liability for the Security Deposit, Landlord shall have no further
liability for the return of such Security Deposit. Upon application of all or
any part of the Security Deposit, Tenant must upon demand restore the Security
Deposit to its original amount. No application of the Security Deposit by
Landlord will be deemed to have cured Tenant's default. The Security Deposit
will be released to Tenant within 30 days of the surrender of the Premises to
Landlord subject to any deductions made by Landlord pursuant to the terms of
this Lease.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

                             Signature Page to Lease
                             (25 Sagamore Park Road)

EXECUTED as a sealed instrument as of the date first hereinabove stated.

                                          LANDLORD

                                          SPI-TRUST

                                          By: /s/ Roger G. Little
                                              -------------------------------
                                              Roger Little, Trustee,
                                              and not individually

                                          TENANT

                                          SPIRE CORPORATION

                                          By: /s/ Rodger W. LaFavre
                                              -------------------------------
                                              Name:  Rodger W. LaFavre
                                              Title: Chief Operating Officer

<PAGE>
                                                                       EXHIBIT A
                                                                       ---------

                          LEGAL DESCRIPTION OF THE LAND
                          -----------------------------

<PAGE>
                                                                       EXHIBIT B
                                                                       ---------

                                 LANDLORD'S WORK

Landlord shall complete the following work with respect to Building #2:
-----------------------------------------------------------------------

o    Repair or replace those certain windows identified by Tenant as requiring
     repair or replacement and agreed to by Landlord.

o    Perform such improvements and/or repairs to the concrete entrance and
     loading dock structures serving the building identified by Tenant as
     requiring improvements and/or repairs and agreed to by Landlord.

o    At Landlord's option, replace the roof serving the building, provided
     however, if Landlord so elects to replace the roof, Tenant shall be
     responsible for the removal and re-installation of any special equipment,
     including all costs with respect to such removal and re-installation of
     such equipment.

Landlord shall complete the following work with respect to Building #1:
-----------------------------------------------------------------------

o    Contract with a design firm to plan the demolition of all interior space
     within the building.

o    Demolish such interior space as set forth in the plans developed by the
     design firm contracted by Landlord.

o    Repair structural walls within the building and construct firewall and 3
     interior walls with insulation in accordance with written proposals
     obtained by Tenant copies of which have been previously provided to
     Landlord (the "Proposals").

o    Upgrade life safety, electrical systems, equipment and components serving
     the building to the extent necessary to bring same into compliance with all
     applicable building, health and safety codes to the extent provided in the
     Proposals.

o    Repair existing plumbing to permit the use of the lavatory in Building #1
     in compliance with all applicable building, health and safety codes in
     accordance with the Proposals.

     Landlord and Tenant acknowledge and agree that Landlord shall not be
required to expend more than an amount deemed reasonable by the parties acting
in good faith, in connection with the performance of the last three bullet
points indentified with respect to Building #1 in light of the scope of work
required. In the event the cost will exceed such reasonable amount, Landlord and
Tenant shall cooperate in good faith to reduce the scope of work required to
complete the foregoing items.

<PAGE>

      With respect to Landlord's work as set forth in this EXHIBIT B, Landlord
and Tenant shall reasonably cooperate in the planning, prioritization and
implementation of such work and at all times, Tenant shall be consulted and
given the opportunity, where reasonable, to approve the design and
implementation of such work prior to Landlord's performance thereof. Tenant
shall promptly respond to any requests for consultation or approval made by
Landlord.

BOS 46,377,012V4

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