Document:

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                                                                   EXHIBIT 10.17

                              AGREEMENT OF SUBLEASE

     This Agreement of Sublease (this "Sublease") is made as of the 31st day of
March, 2000 by and between RENAISSANCE WORLDWIDE, INC., a Massachusetts
corporation, having an office at 52 Second Avenue, Waltham, Massachusetts 02451
("Sublessor"), and NETEGRITY, INC., a Delaware corporation, having an office at
200 West Street, Waltham, Massachusetts 02451 ("Sublessee").

                                   WITNESSETH

     WHEREAS, by a certain Lease Agreement, dated as of June 30, 1998 (the
"Lease"), by and between Waltham 60/10 LLC ("Landlord"), as landlord, and
Sublessor, as tenant, Landlord leased to Sublessor certain premises consisting
of approximately 201,378 rentable square feet (the "Premises"), being all of the
rentable area in that certain building known as and numbered 52 Second Avenue,
Waltham, Massachusetts (the "Building"), which Premises are more particularly
described in the Lease, a copy of which Lease is annexed hereto as EXHIBIT A and
made a part hereof; and

     WHEREAS, Sublessee desires to sublease from Sublessor and Sublessor is
willing to sublease to Sublessee a portion of the Premises consisting of the
entire third floor of the Building, containing approximately 50,345 rentable
square feet as more particularly set forth on EXHIBIT B annexed hereto and made
a part hereof (the "Subleased Premises");

     NOW THEREFORE, in consideration of Ten Dollars ($10) in hand paid by
Sublessee to Sublessor, the mutual covenants herein contained and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1.   SUBLEASING OF SUBLEASED PREMISES; CONDITION OF PREMISES.

     (1) Sublessor hereby subleases to Sublessee and Sublessee hereby hires from
Sublessor, the Subleased Premises, upon and subject to all of the terms,
covenants, rentals and conditions hereinafter set forth.

     (2) Sublessee shall accept so much of the Subleased Premises, containing
approximately 30,000 rentable square feet, as is currently finished and improved
for Sublessor's occupancy, as more particularly shown on Exhibit B-1 attached
hereto and made a part hereof (the "Initial Premises"). The Subleased Premises
shall be delivered broom clean and otherwise in "as is" condition as of the date
hereof, subject to ordinary wear and tear between the date hereof and the
"Commencement Date" (as hereinafter defined). Sublessee expressly acknowledges
and agrees that Sublessor has made no representations with respect to the

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Subleased Premises or the Building except as expressly provided herein and is
not obligated to make repairs of or to perform any work at the Subleased
Premises, except as set forth in subsection (c) below. To the best of
Sublessor's knowledge, as of the date hereof, electric, plumbing and other major
Building systems servicing the Subleased Premises are in good working order and
repair and the Subleased Premises are in compliance with all laws, ordinances,
codes and regulations affecting the Premises.

     (3)  The balance of the Subleased Premises (i.e. so much of the Subleased
Premises as is not part of the Initial Premises), containing approximately
20,345 rentable square feet, as more particularly shown on Exhibit B-2 attached
hereto and made a part hereof (the "Additional Premises"), is currently
unfinished "shell" space. Sublessee and Sublessor have agreed upon the
layout/partitioning plan for the Additional Premises, which layout/partitioning
plan is attached hereto as Exhibit C and made a part hereof. Sublessor shall, at
Sublessor's sole cost and expense, cause the Additional Premises to be built out
in accordance with Exhibit C to a kind and quality of construction consistent
with that of the Initial Premises as of the date hereof excluding any
non-standard improvements, including, but not limited to, any labs, special
electrical (such as any work to equip an office or cubicle for more than one
computer), mechanical or plumbing requirements, and all tel/data cabling. All
such non-standard improvements, as well as any changes or additions to the plan
on Exhibit B, shall be at Sublessee's sole cost and expense and shall be deemed
Additional Rent. Sublessor also acknowledges and agrees that it is obligated at
its sole cost and expense to restore the Subleased Premises at the end of the
Term substantially in accordance with Exhibit C including, without limitation,
the restoration of each circled and checked area of the plan on Exhibit C in
accordance with the plan on Exhibit C. Such cost and expense shall be deemed
Additional Rent. The "Additional Premises Rent Commencement Date" referred to in
Section 3 below shall mean the earlier of (i) such date as Sublessor delivers
the Additional Premises to Sublessee substantially complete and suitable for
Sublessee's use and occupancy but not in any event prior to April 1, 2000; (ii)
such date as Sublessee takes occupancy of any portion of the Additional Premises
for business purposes; or (iii) such date as the Additional Premises would have
been substantially complete but for a delay in the build-out attributable to any
change, addition or non-standard improvement to the plan in Exhibit B requested
by Sublessee. Notwithstanding the foregoing, Sublessee shall have the right, so
long as the same does not materially adversely affect the progress or completion
of Sublessor's work therein, to have access to the Additional Premises at least
two weeks prior to such substantial completion date for the purpose of
installing Sublessee's furnishings and equipment, without such access being
deemed to be occupancy for Sublessee's business purposes. Sublessor shall use
commercially reasonable efforts to deliver the Additional Premises substantially
complete and suitable for Sublessee's use and occupancy on or before June 10,
2000. In the event that the Additional Premises are not substantially complete
within ninety (90) days after June 10, 2000, as extended by any delay
attributable to any change, addition or non-standard improvement

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requested by Sublessee or Sublessee's failure to promptly respond to Sublessor
requests for approvals or consents or by any other act or negligence of
Sublessee or Sublessee's agents, contractors or employees (together, "Sublessee
Delays") and by any delays caused by FORCE MAJEURE, which shall include strikes,
inability to obtain materials, casualties, and any other matters beyond
Sublessor's reasonable control, then Sublessee may terminate this Sublease by
providing written notice to Sublessor prior to substantial completion. If the
Additional Premises are not substantially complete by June 10, 2000, unless such
delay in substantial completion was due to Sublessee Delays or force majeure,
then Sublessee shall be entitled to an abatement of rent for the Additional
Premises until such Additional Premises are substantially complete.

     (4)  The Subleased Premises shall include the use of the Building Common
Areas (except as provided herein) and parking, cafeteria and fitness room (as
further described in Section 22 hereof). Notwithstanding anything to the
contrary herein (i) the Subleased Premises shall not include, and Sublessor
expressly reserves the exclusive use of (including continuous access to and
from) Telephone Closet No. 3129, it being understood that, except in emergency,
Sublessor shall use good faith efforts to give reasonable prior notice, which
may be oral, of its exercise of such access rights, and to minimize disruption
of Sublessee's use and enjoyment of the Subleased Premises; (ii) Sublessor and
Sublessee shall share appropriate usage of Telephone Closet No. 3052; (iii)
Sublessee's furnishings and usage of Activity Room 3020 shall be subject to
Sublessor's review and approval, which shall not be unreasonable, giving due
consideration to visibility of Activity Room 3020 from other portions of the
Building; (iv) Sublessee shall provide its own reception functions within the
Subleased Premises, and shall not have any right to representation at or
participation in Sublessor's reception on the first office level of the
Building; and (v) Sublessee shall be entitled to use the video kiosk closet No.
3094 for the purpose of installing its own video monitor consistent with section
5(a).

     2.   TERM.

     The term (the "Term") of this Sublease shall commence on April 1, 2000 (the
"Commencement Date"), and shall expire at 11:59 P.M. on March 31, 2003 (the
"Expiration Date"), unless sooner extended or terminated as hereinafter
provided.

     3.   FIXED RENT.

     (1)  For the period commencing on the Commencement Date and continuing
through and including the Additional Premises Rent Commencement Date, Sublessee
shall pay to Sublessor, in lawful money of the United States, a Fixed Rent at
the rate of One Million Five Thousand Dollars ($1,005,000.00) per annum
($83,750.00 per month). Concurrently with the execution of this Sublease,
Subtenant shall deliver to Sublandlord the first month's rent in the

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amount of $83,750.00. For the period commencing on the Additional Space Rent
Commencement Date and continuing through and including the Expiration Date, such
Fixed Rent shall be payable at the rate of One Million Six Hundred Eighty-Six
Thousand Five Hundred Fifty-Seven and 57/100 Dollars ($1,686,557.50) per annum
($140,546.46 per month). For any partial month at the beginning of the Term, and
for any month during which the Additional Space Rent Commencement Date occurs,
Fixed Rent shall be appropriately prorated.

     (2)  Fixed Rent shall be due and payable on the first (1st) day of each
calendar month during the Term at the office of Sublessor, or at such other
place as Sublessor may designate by written notice, at any time from time to
time, without any set-off or deduction of any kind whatsoever, except that
Sublessee shall pay to Sublessor the first monthly installment of Fixed Rent due
under this Sublease (together with such electricity charges as shall be due in
accordance with Section 23 of this Sublease), upon the execution of this
Sublease.

     4.   ADDITIONAL RENT.

     (1)  Beginning with the payment of Fixed Rent due for the 13th full
calendar month of the Term, Sublessee shall pay to Sublessor, as Additional
Rent, Sublessee's Proportionate Share, as hereinafter defined, of such amounts
as Sublessor from time to time gives notice to Sublessee that Sublessor is
obligated to pay to Landlord in respect of Operating Costs, including estimated
payments thereof, under and pursuant to Section 4.2 of the Lease, but only to
the extent such payments on an annualized basis, exceed, or are reasonably
estimated by Sublessor to exceed, $9.50 per rentable square feet per year.
Sublessee shall be entitled to Sublessee's Proportionate Share of any credit or
refund as and when received by Sublessor, and shall pay Sublessee's
Proportionate Share of any additional payment request to be made by Sublessor
for Operating Costs in excess of $9.50 per rentable square feet per year as a
result of the final determination of Operating Costs for any calendar year as
Section 4.2 of the Lease provided. Sublessee's Proportionate share shall be a
fraction, the numerator of which is the rentable square feet in the Subleased
Premises and the denominator of which is the rentable square feet in the
Building, currently 50,345/201,378 or 25%.

     (2)  All amounts payable by Sublessee to Sublessor pursuant to this
Sublease, including, without limitation, Fixed Rent and Additional Rent, shall
be deemed to be and shall constitute rent for all purposes hereunder and, in
the event of any non-payment thereof, Sublessor shall have all of the rights and
remedies provided herein (including, without limitation, those rights and
remedies set forth in Section 10 hereof), at law or in equity for non-payment of
rent. The obligation of Sublessee to pay all amounts to Sublessor of Fixed Rent
and Additional Rent due hereunder and under the Lease arising during the term of
the Sublease, as incorporated herein and as modified hereby, shall survive the
Expiration Date or earlier termination of this

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Sublease.

     5.   CARE, SURRENDER AND RESTORATION OF THE PREMISES.

     (1)  Without limiting any other provision of this Sublease or the Lease,
Sublessee shall take good care of the Subleased Premises, suffer no waste or
injury thereto and shall comply with all laws, orders and regulations applicable
to the Subleased Premises, the Building and Sublessee's use or manner of use
thereof, which are imposed on Sublessor, as tenant under the Lease, in
connection with the Subleased Premises and/or the Building. Notwithstanding the
first paragraph of Section 6.1 of the Lease, Sublessee shall make no Alteration
(as defined in Article 6 of the Lease) to the Subleased Premises without the
prior written consent of Sublessor, and then only fully in compliance with the
applicable provisions of Article 6 of the Lease. In no event, however, shall
Sublessee have any right with respect to the elevator and atrium lobby area
(including Activity Room 3020) of the Subleased Premises either (i) to make any
Alteration, addition, modification, decoration or fixturing, or (ii) to use it
for any Sublessee purpose whatsoever, except as set forth herein, except that
Sublessor's approval shall not be unreasonably withheld or delayed for Building
standard furnishings and signage, or for furnishings and signage consistent with
other Building furnishings and signage, in such areas.

     (2)  Upon the Expiration Date or earlier termination of the Term, Sublessee
shall quit and surrender the Subleased Premises to Sublessor, broom clean, in
good order and condition, ordinary wear and tear excepted and Sublessee shall
remove all of its property therefrom. Sublessee shall observe and perform each
of the covenants contained in this Sublease.

     6.   USE.

     Sublessee shall use and occupy the Subleased Premises as and for office use
and for no other purpose.

     7.   SUBORDINATION TO AND INCORPORATION OF TERMS OF THE LEASE.

     (1)  This Sublease is in all respects subject and subordinate to all of the
terms, provisions, covenants, stipulations, conditions and agreements of the
Lease, and, except as otherwise expressly provided in this Sublease, all of the
terms, provisions, covenants, stipulations, conditions, rights, obligations,
remedies and agreements of the Lease (including but not limited to Article 14
(except for Section 14.3) of the Lease as to payment of Fixed Rent and
Additional Rent in accordance with the provisions hereof) are incorporated in
this Sublease by reference and made a part hereof as if herein set forth at
length, and shall, as between Sublessor and Sublessee (as if they were the
Landlord and Tenant, respectively, under the Lease, and the

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word "Lease" were "Sublease"), constitute the terms of this Sublease, except for
Articles 2, 3, 4, Section 5.5, Article 9, Sections 14.2 (e), 14.3, 15.1, 16.1
and 16.3, Articles 17 and 20 and Sections 21.9 and 21.10, as well as such other
terms of the Lease as do not relate to the Subleased Premises or are
inapplicable to, inconsistent with, or specifically modified by, the terms of
this Sublease (which provisions, for purposes of this Sublease, are hereby
deemed deleted in their entirety). Sections 5.1 through 5.4 of the Lease are
incorporated herein expressly subject to the provisions of Section 9 hereof. In
furtherance of the foregoing, Sublessee shall not take any action or do or
permit to be done anything which (i) is or may be prohibited to Sublessor, as
tenant under the Lease, (ii) might result in a violation of or default under any
of the terms, covenants, conditions or provisions of the Lease or any other
instrument to which this Sublease is subordinate, or (iii) would result in any
additional cost or other liability to Sublessor. This clause shall be
self-operative and no further instrument of subordination shall be required, but
Sublessee shall execute promptly any certificate confirming such subordination
that Sublessor may request. In the event of any inconsistency between this
Sublease and the Lease, such inconsistency shall be resolved in favor of that
obligation which is more onerous to Sublessee or that restriction which is more
restrictive of Sublessee, as the case may be

     (2)  In the event that the Lease is canceled or terminated due to default
of Sublessor, Sublessee shall, at the option of Landlord, attorn and recognize
Landlord, as Sublessor hereunder, and shall, promptly upon Landlord's request,
execute and deliver all instruments necessary or appropriate to confirm such
attornment and recognition. Sublessor has disclosed to Sublessee that Sublessor
and Landlord dispute certain matters relating to the Lease including, without
limitation, whether Sublessor has performed in a timely manner all of its
obligations under the Lease. These disputes arose prior to the date of this
Sublease. So as of the date of this Sublease, Sublessor agrees to perform in a
timely manner all of its obligations under the Lease except to the extent they
are to be performed by Sublessee pursuant to the terms of this Sublease.

     8.   SUBLESSEE'S OBLIGATIONS.

     Except as specifically set forth herein to the contrary, all acts to be
performed by, and all of the terms, provisions, covenants, stipulations,
conditions, obligations and agreements to be observed by, Sublessor, as tenant
under the Lease, shall, to the extent that the same relate to the Subleased
Premises, be performed and observed by Sublessee, and Sublessee's obligations in
respect thereof shall run to Sublessor or Landlord, as Sublessor may determine
to be appropriate or as may be required by the respective interests of Sublessor
and Landlord. Sublessee shall indemnify, defend and hold Sublessor harmless from
and against all liabilities, losses, obligations, damages, penalties, claims,
costs and expenses (including, without limitation, attorneys' fees and other
costs) which are paid, suffered or incurred by Sublessor or claimed or asserted
against Sublessor as a result of or alleged to have resulted from the
nonperformance or

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nonobservance of any such terms, provisions, covenants, stipulations,
conditions, obligations or agreements by Sublessee under this Sublease.

     9.   SUBLESSOR'S OBLIGATIONS.

     Sublessor agrees that except as expressly provided herein, Sublessee shall
have and enjoy the same rights which Sublessor, as tenant under the Lease, has
to performance by Landlord of any service, repair, alteration or other similar
obligation which is the obligation of Landlord to perform under those provisions
of the Lease incorporated herein, provided, however, that notwithstanding
anything contained in this Sublease to the contrary, Sublessor shall have no
responsibility to Sublessee for, and shall not be required to provide, any of
the services or make any of the repairs or restorations which Landlord has
agreed to make or provide, or cause to be made or provided, under the Lease
(including, without limitation, Landlord's obligations set forth in Article 5 of
the Lease) and Sublessee shall rely upon, and look solely to, Landlord for the
provision of such services and the performance of such repairs and restorations.
Sublessee shall contact Sublessor's facility manager, Spaulding & Slye Colliers
(or such other person or entity as Sublessor shall from time to time identify as
its facility manager by notice to Sublessee), for all Building concerns such as
maintenance, janitorial, cafeteria, fitness center, parking, security and other
Building related issues. Sublessee shall not make any claim against Sublessor
for any damage which may result from, nor shall Sublessee's obligations
hereunder (including, without limitation, Sublessee's obligation to pay all
Fixed Rent and Additional Rent when due be impaired by reason of (a) the failure
of Landlord to keep, observe or perform any of its obligations under the Lease,
or (b) the acts or omissions of Landlord or any of its agents, contractors,
servants, employees, invitees or licensees. If Landlord shall default in any of
its obligations to Sublessor with respect to the Subleased Premises, Sublessee
shall be entitled to request that Sublessor enforce Sublessor's rights against
Landlord with respect thereto. Sublessor agrees to use commercially reasonable
efforts to enforce Sublessor's rights against Landlord. In no event shall
Sublessor have any obligation to bring any action or proceeding against
Landlord. In the event of such default and in the event that Sublessor elects a
remedy that entitles Sublessor to rent abatement and Sublessor receives such
abatement, then Sublessor agrees to pass on to Sublessee a share of such
abatement to the extent it applies to the Subleased Premises.

     10.  COVENANTS WITH RESPECT TO THE LEASE.

     In the event that Sublessee shall be in default of any term, provision,
covenant, stipulation, condition, obligation or agreement of, or shall fail to
honor any obligation under, this Sublease, Sublessor, on giving the notice, if
any, required by the Lease (as modified pursuant to Section 15 hereof) and
subject to the right, if any, of Sublessee to cure any such default within any
applicable grace period provided in the Lease (as modified pursuant to
Section 15 hereof),

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shall have available to it all of the remedies available to Landlord under the
Lease including without limitation Section 14.2 of the Lease (with the words
"Fixed Rent" substituted for "Base Rent" and "Additional Rent" substituted for
"Operating Costs") in the event of a default or failure on the part of the
Sublessor, as tenant thereunder. Such remedies shall be in addition to all other
remedies available to Sublessor at law or in equity.

     11.  BROKERS.

     Sublessor and Sublessee each represent and warrant to the other that
neither has dealt with any broker or finder in connection with this Sublease
other than Trammell Crow Company and CRF Partners (the "Brokers") and Sublessor
and Sublessee each agree to indemnify, defend and hold the other harmless from
and against any and all liabilities, losses, obligations, damages, penalties,
claims, costs and expenses (including, without limitation, attorneys's fees and
other charges) arising out of (i) any breach of the foregoing representation
and/or (ii) any claim, demand or proceeding for a real estate brokerage
commission, finder's fee or other compensation made by any person or entity
other than the Brokers in connection with this Sublease claiming to have dealt
with the indemnifying party and not such other party. If, as and when this
Sublease is executed, and the first month's Fixed Rent is paid, Sublessor shall
pay the Brokers 50% of the fee and commission due them pursuant to a separate
agreement, with the remaining 50% commission to be paid upon occupancy of and
the commencement of payments of Fixed Rent by Sublessee for the Additional
Premises.

     12.  INDEMNIFICATION OF SUBLESSOR AND SUBLESSEE.

     (1)  Sublessee agrees to indemnify, defend and hold Sublessor harmless
from, any and all liabilities, losses, obligations, damages, penalties, claims,
costs and expenses (including, without limitation, attorneys' fees and other
charges) which are paid, suffered or incurred by Sublessor or claimed or
asserted against Sublessor as a result of or alleged to have resulted from (a)
any personal injuries or property damage occurring in, on or about the Subleased
Premises during the Term other than due wholly to the negligence of Sublessor,
(b) any work or thing done, or any condition created, by Sublessee in, on or
about the Subleased Premises or the Building during the Term, or (c) any act or
omission of Sublessee or Sublessee's agents, contractors, servants, employees,
invitees or licensees during the Term.

     (2)  Sublessor agrees to indemnify, defend and hold Sublessee harmless
from, any and all liabilities, losses, obligations, damages, penalties, claims,
costs and expenses (including, without limitation, attorneys' fees and other
charges) due to or arising out of (i) Sublessor's use of the Telephone Closets
as further described in Section 1(d) hereof or (ii) any willful or negligent act
or omission by Sublessor or anyone for whom Sublessor is legally responsible,
other than due

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wholly to the negligence of Sublessee. In no event shall Sublessor be liable for
any indirect incidental, special, punitive or consequential damages, including
lost profit or revenues, even if informed of their possibility.

     13.  TERMINATION OF LEASE.

     If the term of the Lease is terminated prior to the Expiration Date, then,
subject to Section 7(b) hereof, this Sublease shall immediately terminate and
Sublessor shall not be liable to Sublessee by reason thereof.

     14.  APPROVALS OR CONSENTS.

     In all provisions of the Lease requiring the approval or consent of
Landlord, Sublessee shall be required to obtain the express written approval or
consent of Sublessor.

     15.  TIME LIMITS.

     The parties agree that unless otherwise expressly modified herein, the time
limits set forth in the Lease for the giving of notices, making demands, payment
of any sum, the performance of any act, condition or covenant, or the exercise
of any right, remedy or option, are modified for the purpose of this Sublease by
(i) shortening the same in each instance by three (3) business days (but never
to less than two (2) calendar days) if requiring performance by Sublessee, and
(ii) by lengthening the same in each instance by three (3) business days if
requiring performance by Sublessor, so that notices may be given, demands made,
any act, condition or covenant performed and any right or remedy hereunder
exercised, by Sublessor or Sublessee, as the case may be, within the time limits
relating thereto contained in the Lease. Sublessor and Sublessee shall, promptly
after receipt thereof, furnish to each other a copy of each notice, demand or
other communication received from Landlord with respect to the Subleased
Premises.

     16.  ASSIGNMENT AND SUBLETTING.

     (1)  Sublessee shall not assign, sublet, mortgage, pledge or encumber this
Sublease, the Subleased Premises, or any interest in the whole or in any portion
thereof, without the prior written consent of Sublessor (which consent shall not
be unreasonably withheld or delayed). For purposes of this Article 16, a
transfer, in one transaction or a series of transactions, of a controlling
interest in the capital stock or other ownership or membership interests in
Sublessee shall be deemed to be an assignment of this Sublease. If Sublessee
makes any such assignment, mortgage, sublease or pledge (whether with or without
Sublessor's written consent), Sublessee named herein shall nonetheless remain
primarily liable for the performance and observation of all

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of the terms of this Sublease required to be observed or performed by Sublessee
hereunder. Fifty percent (50%) of the amount by which any rentals, fees and
charges from time to time received by Sublessee in connection with any such
assignment or sublease (after first netting out any reasonable brokerage and
re-letting expenses actually incurred by Sublessee), exceed the Fixed Rent and
Additional Rent payable to Sublessor hereunder (hereinafter referred to as
"Excess Rental") shall be paid immediately by Sublessee to Sublessor as
Additional Rent under this Sublease. In such event, the Fixed Rent and
Additional Rent payable by Sublessee to Sublessor under this Sublease for the
balance of the Sublease Term shall be increased by an amount equal to the Excess
Rental. In addition, Sublessor shall have the option, in its sole discretion, to
terminate this Sublease effective as of the proposed effective date of any
assignment or sublease, by giving Sublessee written notice thereof within ten
(10) days after Sublessor's receipt of said notice from Sublessee; and in the
event Sublessee shall propose to sublet only a portion of the Subleased
Premises, Sublessor shall have the additional option to terminate this Sublease
as to that portion of the Subleased Premises proposed to be sublet. Should
Sublessor not elect to so terminate this Sublease in connection with any
proposed subletting or assignment, Sublessor shall continue to have the right to
disapprove same (subject to the terms herein). Upon any subletting or assignment
by Sublessee in accordance with the terms hereof, any extension option granted
herein other than a permitted assignment pursuant to Paragraph 16 (3) shall
become null and void. Consent by Sublessor to one or more assignments or
sublettings shall not operate as a waiver of Sublessor's rights as to any
subsequent assignments or sublettings.

     (2)  If Sublessee should desire to assign this Sublease or sublet the
Subleased Premises (or any part thereof), Sublessee shall give Sublessor
written notice thirty (30) days in advance of the proposed effective date of any
proposed assignment or sublease, specifying (i) the name, current address, and
business of the proposed assignee or sublessee, (ii) the amount and location of
the space within the Subleased Premises proposed to be so subleased, (iii) the
proposed effective date and duration of the assignment or subletting, and
(iv) the proposed rent or consideration to be paid to Sublessee by such assignee
or sublessee. Sublessee shall promptly supply Sublessor with financial
statements and other information as Sublessor may reasonably request to evaluate
the proposed assignment or sublease. Sublessee agrees to reimburse Sublessor for
Sublessor's reasonable attorney's fees incurred.

     (3)  Notwithstanding anything to the contrary in this Sublease, Sublessee
shall have the right, for which Sublessor's prior written consent shall not be
withheld or delayed, at any time, and from time to time to transfer to any
entity into or with which Sublessee is merged or consolidated, or to which
substantially all of Sublessee's assets are transferred, or to any corporation
that controls or is controlled by Sublessee, or is under common control with
Sublessee, provided in any of such events (a) the successor to Sublessee has a
net worth (computed in accordance with generally accepted accounting principles)
of at least $50,000,000,

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and (b) proof satisfactory to Sublessor of such net worth shall have been
delivered to Sublessor within five (5) days after the effective date of any such
transaction. In the event of such a transfer, Sublessor shall have the right to
increase the security deposit if in its reasonable opinion it deems such
increase appropriate. This covenant and assignment shall run with the land and
shall bind Sublessee and Sublessee's heirs, executors, administrators, personal,
representatives, successors and assigns.

     (4)  If Sublessee assigns, sublets or makes any other transfer of all or
any portion of its interest(s) hereunder, Sublessee named in this Sublease shall
remain directly and primarily responsible for the faithful performance and
observance of all of the covenants and obligations on Sublessee's part to be
performed in this Sublease.

     (5)  Any assignee or subtenant hereunder shall be bound by and shall comply
with all of the terms and provisions in this Sublease. As a condition to the
effectiveness of any assignment that is permitted hereunder, the assignee shall,
by an instrument in writing, within five (5) days after the effective date of
the applicable transaction assume and agree to perform (for the express benefit
of Sublessor) the terms hereof; and as a condition to the effectiveness of any
sublease that is permitted hereunder, the subtenant shall acknowledge in writing
(for the express benefit of Sublessor) within five (5) days after the effective
date of the applicable transaction the existence of this Sublease and shall
covenant not to do or permit to be done anything that would constitute a breach
thereof.

     (6)  Notwithstanding anything contained in this Paragraph 16 to the
contrary, provided Sublessee is not in default hereunder, Sublessor shall not
unreasonably withhold or delay its consent to Sublessee's request to assign this
Sublease or to sublease the Subleased Premises. In determining the
reasonableness of Sublessor's approval of or failure to consent to Sublessee's
assignment of this Sublease or the subleasing of the Subleased Premises,
Sublessor may take into consideration all relevant factors surrounding the
proposed sublease and assignment, including without limitation, the following:

          (1)  the business reputation of the proposed assignee or subtenant and
               its partners, officers, directors and stockholders;

          (2)  the nature of the business and the proposed use of the Subleased
               Premises by the proposed assignee or subtenant;

          (3)  the financial condition of the proposed assignee or subtenant;

          (4)  the effect that the proposed assignee or subtenant would have on
               the

                                      -11-

<PAGE>   12

               operations and maintenance of the Building;

          (5)  whether or not the proposed assignee or subtenant is presently
               a competitor (or subsidiary, affiliate or parent of a
               competitor);

          (6)  restrictions, if any, contained in other leases or agreements
               affecting the Building;

          (7)  the extent to which the proposed subtenant or assignee and
               Sublessee provide Sublessor with assurances reasonably
               satisfactory to Sublessor as to the satisfaction of Sublessee's
               obligations hereunder, including the payment of rent;

          (8)  restrictions, if any, imposed by the holder of any mortgage
               encumbering the Building or any portion thereof;

taking into account the fact that the Building is Sublessor's corporate
headquarters and that portions of the Subleased Premises are visible from
Building common areas, including the atrium, and from other premises occupied by
Sublessor and by other tenants.

     17.  END OF TERM.

     Sublessee acknowledges that possession of the Subleased Premises must be
surrendered to Sublessor on the Expiration Date or earlier termination of this
Sublease (subject to the force majeure) in the same condition as set forth in
Section 5(b) hereof, subject to normal wear and tear, casualty or condemnation.
Sublessee agrees to indemnify, defend and hold Sublessor harmless from, any and
all liabilities, losses, obligations, damages, penalties, claims, costs and
expenses (including, without limitation, attorney's fees and other charges)
which are paid, suffered or incurred by Sublessor as a result of the failure of,
or the delay by, Sublessee in so surrendering the Subleased Premises, including,
without limitation, any claims made by Landlord or any succeeding tenant founded
on such failure or delay.

     18.  DESTRUCTION. FIRE AND OTHER CASUALTY.

          [Intentionally Omitted]

     19.  EMINENT DOMAIN.

     With respect to Section 11.2 of the Lease, in the event Sublessor receives
an award for

                                      -12-

<PAGE>   13

relocation benefits and moving expenses Sublessee shall be entitled to a share
provided that (i) Sublessee advanced Sublessor its proportionate share of the
expenses incurred by Sublessor in connection with any effort to obtain such an
award and (ii) the condemnation or taking adversely affects Sublessee.

                                      -13-
<PAGE>   14

     20.  NOTICES.

     Any notice, request or demand ("Notice") permitted or required to be given
by the terms and provisions of this Sublease, or by any law or governmental
regulation, either by Sublessor or Sublessee, shall be in writing. Unless
otherwise required by law or regulation, all Notices shall be given and shall be
deemed to have been served and given by either of the parties hereto and
received by the other party, on the date when the party giving the Notice shall
have mailed the Notice by any nationally recognized overnight delivery service
(with signature required) or hand delivered the Notice (with signature
required), addressed to the other party at the address of the other party first
set forth above. A copy of all Notices sent (i) to Sublessor shall be sent to
the address set forth on the first page of this Sublease, Attention: General
Counsel and (ii) to Sublessee shall be sent to the address set forth in the
preface of this Sublease (to the attention of Facility Manager), with a copy to
Hutchins, Wheeler and Dittmar, 101 Federal Street, Boston, Massachusetts 02110,
Attention: Anthony J. Medaglia, Jr., P.C. Either party hereto may designate a
different address for Notices to such party by serving Notice of such change in
accordance with this Section 19.

     21.  EXTENSION.

     Sublessor may, at its sole election, give notice to Sublessee at least
twelve (12) months prior to the Expiration Date, of Sublessor's good faith
determination that all or a substantial portion of the Subleased Premises is or
will be needed by Sublessor within the two (2) years following the Expiration
Date for actual occupancy by Sublessor or one or more of its affiliates. Unless
Sublessor shall give timely such notice, Sublessee shall have the option, by
notice to Sublessor at least nine (9) months' prior to the Expiration Date, to
extend the Term of this Sublease for one (1) period of two (2) years. If
Sublessee fails to give timely such notice of extension, Sublessee's extension
option shall be conclusively deemed waived and of no further force or effect,
time being of the essence. Said extension option is further subject to the
conditions that Sublessee shall not then (x) have assigned this Sublease or
sublet more than twenty-five (25%) percent of the Subleased Premises other than
a permitted assignment pursuant to Paragraph 16 (3) or (y) be in default under
this Sublease beyond such grace or cure period, if any, as may be applicable to
such default. The rate of Fixed Rent payable by Sublessee during such two-year
extension period shall be the higher of (i) the Fixed Rent and Additional Rent
payable during the then current lease year immediately proceeding such two-year
extension period or (ii) Fixed Rent determined pursuant to the method for
determining "Base Rent" set forth in subsection (c) (but not subsection (d)) of
Section 2.3 of the Lease, except that "Extension Market Rate" shall mean the
fair market rental rate for the Subleased Premises in its then "as is" condition
for such two-year extension term, upon and otherwise upon and subject to the
other terms and provisions of this Sublease, with "Sublessor" substituted for
"Landlord" and

                                      -14-

<PAGE>   15

"Sublessee" substituted for "Tenant".

     22.  SECURITY DEPOSIT.

     Sublessee shall deposit with Sublessor, as security for the faithful
performance and observance by Sublessee of the terms, conditions, covenants and
provisions of this Sublease, including the timely and proper surrender of
possession of the Subleased Premises the following security:

     (1)  Sublessee shall deliver to Sublessor upon execution of this Sublease a
clean, irrevocable, non-documentary (other than the sight draft referred to
therein) and unconditional Letter of Credit (the "Letter of Credit") in an
amount equal to Eight Hundred Forty-Three Thousand Two Hundred Seventy-Eight and
75/100 Dollars ($843,278.75) (the "Security Deposit" issued by and drawn upon
any commercial bank (hereinafter referred to as the "Issuing Bank") with offices
for banking purposes in the City of Boston and which shall mean FleetBoston Bank
or any other bank, trust company, national banking association or savings and
loan association which (or the parent company of which) have outstanding
unsecured, uninsured and unguaranteed indebtedness that is then rated, without
regard to qualification of such rating by symbols as "+" or "-" or numerical
notation, "Aa" or better by Moody's Investors Service and "AA" or better by
Standard & Poor's Corporation, and has combined capital, surplus and undivided
profits of not less than $500,000,000.00, which Letter of Credit shall have a
term of not less than one year, be in form and content satisfactory to
Sublessor, be for the account of Sublessor and be fully transferable by
Sublessor in its entirety, but not in part, without the payment of any fees or
charges, if being agreed that if any such fees or charges shall be so imposed,
then such fees or charges shall be paid by Sublessee. The Letter of Credit shall
provide that it shall be deemed automatically renewed, without amendment, for
consecutive periods of one year each thereafter during the term of this Lease,
unless the Issuing Bank sends notice (the "Non-Renewal Notice") to Sublessor by
certified mail, return receipt requested, not less than thirty (30) days next
preceding the then expiration date of the Letter of Credit that it elects not to
have such Letter of Credit renewed. Additionally, the Letter of Credit shall
provide that Sublessor shall have the right, exercisable within twenty (20) days
of its receipt of the Non-Renewal Notice, by sight draft on the Issuing Bank to
receive the monies represented by the existing Letter of Credit and to hold such
proceeds pursuant to the terms of this Paragraph 21 as a cash security pending
the replacement of such Letter of Credit. In the event that Tenant defaults in
respect of any of the terms, provisions, covenants or conditions of this
Sublease, including, but not limited to, the payment of Fixed Rent and
Additional Rent, beyond the expiration of any applicable grace period, Sublessor
may notify the Issuing Bank and thereupon receive all the monies represented by,
the Letter of Credit and use, apply or retain the whole or any part of such
proceeds, to the extent required for the payment of any Fixed Rent or Additional
Rent or any other sum as to which Sublessee is in default or for any sum which
Sublessor may expend or

                                      -15-

<PAGE>   16

may be required to expend by reason of Sublessee's default in respect of any of
the terms, provisions, covenants or conditions of this Sublease, including, but
not limited to, any damages or deficiency in the reletting of the Subleased
Premises, whether such damages or deficiency accrue or accrues before or after
summary proceedings or other reentry by Sublessor. If Sublessor applies or
retains any part of the proceeds of the Letter of Credit, Sublessee, upon
demand, shall deposit with Sublessor the amount so applied or retained so that
Sublessor shall have the full deposit on hand at all times during the Term. If
Sublessee shall surrender the Subleased Premises to Sublessor in accordance with
this Sublease and shall pay all Fixed Rent and Additional Rent due hereunder in
full through and including the Expiration Date of this Sublease and no other
default shall have occurred and be continuing, the Letter of Credit shall be
returned to Sublessee within thirty (30) days after the Expiration Date and
delivery of the entire possession of the Subleased Premises to Sublessor.
Sublessee expressly agrees that Sublessee shall have no right to apply any
portion of the Security Deposit against any Sublessee's obligations to pay Fixed
Rent or Additional Rent hereunder and, if Sublessee shall seek to so apply such
Security Deposit, Sublessee shall pay liquidated damages to Sublessor in a sum
equal to two (2) times the amount of any such unpaid Fixed Rent or Additional
Rent. In the event of a transfer or assignment of the Sublease, within thirty
(30) days of notice of such sale or leasing, Sublessee at its sole cost and
expense, shall arrange (i) for the transfer of the Letter of Credit to the new
sublandlord as designated by Sublessor in such notice or (ii) to have the Letter
of Credit reissued in the name of the new sublandlord; and Sublessor shall
thereupon be released by Sublessee from all liability for the return of such
security. Sublessee shall look solely to the new sublandlord for the return of
such Letter of Credit and the provisions hereof shall apply to every transfer or
assignment made of the security to a new sublandlord. Sublessee further
covenants and agrees that it shall not assign or encumber or attempt to assign
or encumber the Letter of Credit deposited herein as security and that neither
Sublessor nor its successors or assigns shall be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance.

     (2)  Notwithstanding anything to the contrary contained in this Sublease,
provided that no default, beyond any applicable notice and grace period, shall
have occurred and be continuing as of any Reduction Date, then the Security
Deposit shall be reduced over the Term as follows: (i) upon the first (1st)
anniversary of the Commencement Date, the Security Deposit shall be reduced to
an amount equal to Five Hundred Sixty-Two Thousand, One Hundred Eighty-Five and
83/100 Dollars ($562,185.83); (ii) upon the second (2nd) anniversary of the
Commencement Date, the Security Deposit shall be reduced, and shall remain for
the balance of the Term at, to an amount equal to Two Hundred Eighty-One
Thousand Ninety-Two and 92/100 Dollars ($281,092.92) (each of the anniversary
dates provided for in (i) and (ii) above is individually a "Reduction Date" and
collectively, the "Reduction Dates"). In connection with such reduction,
provided that Sublessee shall tender to Sublessor a replacement or amended
Letter of Credit in

                                      -16-

<PAGE>   17

the appropriately reduced amount of the Security Deposit, Sublessor shall
promptly exchange the Letter of Credit then held by Sublessor for the Letter of
Credit tendered by Sublessee in the reduced amount set forth above. In the
alternative, and provided that no default, beyond any applicable notice and
grace period, shall have occurred and be continuing as of any Reduction Date,
Sublessor shall, within ten (10) business days following request from Sublessee
furnish to the Issuing Bank a letter signed by Sublessor acknowledging that no
default by Sublessee has occurred and is continuing beyond applicable notice and
grace, and agreeing to such reduction of the Security Deposit as provided above.

     23.  OTHER SUBLESSEE RIGHTS.

     Sublessee shall have the right to use, on a non-reserved basis, a maximum
of 166 of the parking spaces made available to Sublessor pursuant to Section 4.4
of the Lease on Levels 3, 4 and 5 of the Parking Facility. Sublessor reserves
the right to regulate and control such parking usage by Sublessee its employees,
licensees and invitees with parking stickers, tags, cards or any other
reasonable procedure. Sublessee shall participate and cooperate in such control
procedure and agrees that in the event of excess parking by Sublessee, its
employees, licensees or invitees ("Parking Default"), any of the offending
vehicles or other Sublessee vehicles may be denied parking privileges and/or
towed at Sublessee's expense and Sublessee may be subjected to a fine or penalty
of $250.00 per vehicle, which tow charges and fines or penalties shall be
payable as Additional Rent on each occasion. Sublessor shall attempt in good
faith, but shall have no obligation, to contact Sublessee prior to towing any
offending vehicle. In the event of such Parking Default (and without in any way
limiting Sublessor's rights to tow, charge fees, or deny privileges as described
above), Sublessee will give written notice of the Parking Default ("Parking
Default Notice"), and Sublessee shall have ten (10) business days to remedy such
Parking Default. If during any twelve (12) month period Sublessor shall give
Sublessee a Parking Default Notice on three (3) occasions, then commencing with
the fourth occasion and any subsequent occasion during such twelve (12) month
period, Sublessee shall pay Sublessor 125% of the monthly rent for each month
such Parking Notice Default is given. In addition, in any twelve (12) month
period, after the second occasion of Sublessor giving Sublessee a Parking
Default Notice, Sublessee agrees to pay any reasonable costs incurred by
Sublessor to offset the cost of monitoring Sublessee's parking, including, but
not limited to, the hiring of additional personnel, upgrading security access
card software, or signage/space identification programs. Sublessee shall have
the right to Building standard signage in the interior lobby of the Subleased
Premises and to representative inclusion in the Building lobby directory.
Employees of Sublessee shall have the right to use the cafeteria, as well as the
fitness center in the Building from time to time maintained by Sublessor,
subject to such rules and regulations and, in the case of the fitness center the
payment of such per employee annual fee Sublessor may reasonably establish from
time to time.

                                      -17-

<PAGE>   18

     24.  ELECTRICITY CHARGE.

     Sublessee shall pay monthly, as Additional Rent, as and when payments of
Fixed Rent are due, an electricity charge equal to the sum of Four Thousand One
Hundred Ninety-Five and 42/100 Dollars ($4,195.42) in respect of Sublessor's
costs of providing electricity to the Subleased Premises. Sublessee's use of
electricity within or serving its uses of the Subleased Premises shall not
exceed that reasonably required for normal office use. If Sublessor at any time
reasonably determines that Sublessee's use of electricity exceeds reasonable
requirements for normal office use, and Sublessor elects to permit such excess
usage, Sublessor may, at Sublessee's expense, submeter such space and the
electricity charge payable monthly by Sublessee shall be adjusted to such amount
as Sublessor from time to time reasonably estimates based upon such submetering
and specifies by notice to Sublessee, with periodic adjustments, not less
frequently than annually, as Sublessee's actual usages are known.

     25.  SUBLESSEE'S INSURANCE.

     (1)  Sublessee shall obtain and keep in full force and effect during the
term of this Sublease:

          (1)  a policy of commercial general public liability insurance, on a
               primary and non-contributory basis, including bodily injury and
               property damage, with a broad form contractual liability
               endorsement or the then equivalent of such coverage, protecting
               Sublessee, Sublessor, Sublessor's employees and agents and any
               other parties designated by Sublessor having an interest in the
               Subleased Premises, as additional insurers, on an occurrence
               basis against claims for personal injury, death and/or property
               damage occurring in or about the Subleased Premises, and under
               which the insurer agrees to indemnify, defend and hold Sublessee
               harmless from and against, among other things, all cost, expense
               and/or liability arising our of or based upon any and all claims,
               accidents, injuries and damages for which Sublessee shall be
               liable in accordance with this Sublease and the Lease, with any
               umbrella and primary commercial general liability policy on a
               coterminous basis. The minimum limits for liability shall be a
               combined single limit with respect to each occurrence in an
               amount of not less than $5,000,000 for injury (or death) and
               damage to property (or in any increased amount reasonably
               required by Sublessor); and

          (2)  insurance against loss or damage by fire, and such other risks
               and hazards

                                      -18-

<PAGE>   19

               (including burglary, theft, vandalism, sprinkler leakage damage,
               breakage of glass within the Subleased Premises as are insurable
               under then available standard forms of "all risk" insurance
               policies, to Sublessee's property and Sublessee's alterations
               for the full replacement cost value thereof (including an "agreed
               amount" endorsement having a deductible amount, if any, as shall
               be determined by Sublessee in the exercise of Sublessee's
               commercially reasonable discretion);

          (3)  during the performance of any alteration, until completion
               hereof, builder's risk insurance, with no restrictions on
               coverage on an "all risk" basis and on a completed value form for
               full replacement value covering the interests of Sublessor and
               Sublessee, with Sublessor as a named insured; and

          (4)  worker's compensation insurance as required by law, with express
               wavier of subrogation for the benefit of Sublessor.

     (2)  Prior to the time such insurance is first required to be carried by
Sublessee and thereafter, at least thirty (30) days prior to the expiration of
any such policies, Sublessee agrees to deliver to Sublessor evidence of payment
for the policies together with certificates evidencing such insurance. All such
certificates shall contain endorsements that (a) such insurance may not be
modified or canceled or allowed to lapse except upon thirty (30) days' written
notice to Sublessor by certified mail, return receipt requested, containing the
policy number and the names of the insured and the certificate holder, and (b)
Sublessee shall be solely responsible for payment of all premiums under such
policies and Sublessor shall have no obligation for the payment thereof
notwithstanding that Sublessor is or may be named as an insured. Sublessee's
failure to provide and keep in force the aforementioned insurance shall be
regarded as a material default hereunder, entitling Sublessor to exercise any or
all of the remedies as provided in this Sublease in the event of Sublessee's
default. All insurance required to be carried by Sublessee pursuant to the terms
of this Sublease shall be effected under valid and enforceable policies issued
by reputable and independent insurers permitted to do business in The
Commonwealth of Massachusetts and rated in Best's Insurance Guide, or any
successor thereto (of if there be none, an organization having a national
reputation) as having a general policy-holder rating of "A" and a financial
rating of at least "XIII". Sublessee shall not carry separate or additional
insurance, concurrent in form or contributing, in the event of any loss or
damage, with any insurance required to be obtained by Sublessee under this
Sublease.

     (3)  Sublessee shall procure an appropriate clause in, or endorsement on,
any such "all risk" or fire or extended coverage insurance covering the
Subleased Premises, the personal

                                      -19-

<PAGE>   20

property, fixtures or equipment located thereon or therein, pursuant to which
the insurance company waives subrogation or consents to a wavier of right of
recovery by the insured prior to any loss. It is expressly understood and agreed
that Sublessor will not be obligated to carry insurance on Sublessee's property
or Sublessee's work or insurance against interruption of Sublessee's business.

     (4)  Sublessee hereby releases Sublessor (its servants, agents, employees
and invitees) with respect to any claim (including a claim for negligence) which
Sublessee might otherwise have against Sublessor for loss, damage or destruction
with respect to its property by fire or casualty (including rental value or
business interruption, as the case may be) occurring during the term of this
Sublease.

     26.  GOVERNING LAW.

     The provisions of this Sublease shall be governed and interpreted in
accordance with the laws of The Commonwealth of Massachusetts.

     27.  MISCELLANEOUS.

     (1)  This Sublease may not be modified, amended, extended, renewed,
terminated or otherwise modified by either Sublessor or Sublessee except by a
written instrument signed by both of the parties hereto.

     (2)  It is acknowledged and agreed that all understandings and agreements
heretofore had between the parties hereto are merged in this Sublease, which
alone fully and completely expresses their agreement with respect to the subject
matter hereof. This Sublease has been executed and delivered after full
investigation by each of the parties hereto, and neither party hereto has relied
upon any statement, representation or warranty which is not specifically set
forth in this Sublease.

     (3)  This Sublease does not constitute an offer to sublease the Subleased
Premises to Sublessee and Sublessee shall have not rights with respect to the
leasing of the Subleased Premises unless and until Sublessor, in its sole and
absolute discretion, elects to be bound hereby executing and unconditionally
delivering to Sublessee an original counterpart hereof.

     (4)  Sublessee acknowledges that Sublessor has disclosed to Sublessee
various matters of dispute between Sublessor and Landlord, including a notice of
an Event of Default which Sublessor is contesting.

                                      -20-

<PAGE>   21

     28.  LANDLORD'S CONSENT.

     (1)  Sublessor and Sublessee each acknowledge and agree that this Sublease
is subject to the unconditional consent of Landlord, as required by Section 9.1
of the Lease. Sublessor shall diligently pursue Landlord's consent hereto in
accordance with the terms of the Lease, provided, however that in no event shall
Sublessor be required to expend any sums (other than reasonable legal fees
customarily incurred by sublessors in connection with obtaining consents for
subleases) or bring any lawsuits or other legal proceedings in order to obtain
such consent; and if Landlord shall fail or refuse to give such consent, such
failure or refusal shall in no event affect the validity or enforceability of
this Sublease. In the event that Landlord's consent is not obtained within
thirty (30) days following the date hereof, either party shall have the right to
terminate this Sublease by notice to the other, upon which notice, this Sublease
shall be deemed terminated and of no further force and effect and neither party
shall have any liability to the other hereunder other than the return of
Sublessee's Security Deposit and any paid Rent.

                                      -21-

<PAGE>   22

     IN WITNESS WHEREOF, this Sublease has been duly executed as of the day and
year first above written.

                            SUBLESSOR:

                            RENAISSANCE WORLDWIDE, INC.

                            By: /s/ Ronan P. O'Brian
                                ----------------------------------
                                Name:  Ronan P. O'Brian
                                Title: Corporate Counsel

                            SUBLESSEE:

                            NETEGRITY, INC.

                            By: /s/ James E. Hayden
                                ----------------------------------
                                Name:  James E. Hayden
                                Title: Vice President and Treasurer

                                      -22-AMENDED AND RESTATED INVESTMENT CONTRACT

                                      AMONG

                   INTERNATIONAL INVESTMENT TRUST COMPANY LTD.

                             CENTRAL TRUST OF CHINA

                                       AND

                             THE R.O.C. TAIWAN FUND

                                  July 1, 2000

<PAGE>

                    AMENDED AND RESTATED INVESTMENT CONTRACT
                    ----------------------------------------

                  WHEREAS, The Taiwan (R.O.C.) Fund (the "Fund") exists pursuant
to a securities investment trust contract, effective September 29, 1983, as
twice supplemented, among International Investment Trust Company Ltd. and the
Central Trust of China (the "Securities Investment Trust Contract"), which
defines the rights and obligations of the unitholders of the Fund; and

                  WHEREAS, pursuant to an extraordinary resolution adopted on
April 18, 1989, the unitholders of the Fund authorized that the Fund be
reorganized pursuant to which The R.O.C. Taiwan Fund, a Massachusetts business
trust and an investment company registered under the United States Investment
Company Act of 1940, as amended (the "Unitholder"), became the unitholder of the
Fund; a Massachusetts business trust is an association of persons organized by
the execution of a declaration of trust under which the beneficial interest is
divided into transferable interests for the purpose of carrying on a common
project for gain; and

                  WHEREAS, pursuant to such reorganization, an Amended and
Restated Investment Contract superseded the Securities Investment Trust
Contract; and

                  WHEREAS, pursuant to extraordinary resolutions adopted on May
28, 1991, the Unitholder authorized the reduction of the fee payable to
International Investment Trust Company Limited (the "Manager") out of the assets
held in the Fund and the entry into of an Amended and Restated Investment
Contract, dated July 15, 1991 (the "1991 Investment Contract"), by and among the
Unitholder, the Manager and Central Trust of China (the "Custodian"), pursuant
to which such fee reduction was effected; and

                  WHEREAS, pursuant to resolutions adopted by the Board of
Trustees of the Unitholder on June 2, 1993, the Unitholder authorized the
amendment of the 1991 Investment Contract with respect to certain aspects of the
relationship between the Custodian and the Fund; and

                  WHEREAS, pursuant to extraordinary resolutions adopted on May
31, 1996, the Unitholder authorized the further reduction of the fees payable to
the Manager and the Custodian out of the assets held in the Fund and the entry
into a new investment contract (the "1996 Investment Contract"); and

                  WHEREAS, pursuant to resolutions adopted by the Board of
Trustees of the Unitholder on February 22, 2000, the Unitholder authorized the
further reduction of the fees payable to the Manager and Custodian out of the
assets of the Fund and the amendment of the 1996 Investment Contract in the form
hereof;

<PAGE>

                                                                               2

                  NOW, THEREFORE, this Amended and Restated Investment Contract
is hereby amended and restated to read in its entirety as follows:

         1.       INTRODUCTION AND POLICY

                  1.1      The Taiwan (R.O.C.) Fund (the "Fund") is a securities
investment trust fund established on October 27, 1983 under the laws of the
Republic of China (the "R.O.C."), and reorganized and approved by the Securities
and Exchange Commission, which is now the Securities and Futures Commission (the
"R.O.C. SFC"), of the Ministry of Finance of the R.O.C. on May 19, 1989 for the
exclusive benefit of The R.O.C. Taiwan Fund, a Massachusetts business trust (the
"Unitholder"), and a registered investment company under the United States
Investment Company Act of 1940, (the "1940 Act"), on the basis of this amended
and restated securities investment trust contract (the "Amended and Restated
Investment Contract") among International Investment Trust Company Limited (the
"Manager") of 17th Floor, 167 Fu Hsing North Road, Taipei, Taiwan, R.O.C.,
Central Trust of China (the "Custodian") of 49 Wu Chang Street, Section 1,
Taipei, Taiwan, R.O.C., and the Unitholder of c/o Citigate Dewe Rogerson New
York, 1440 Broadway, New York, New York, 10018, United States of America. This
Amended and Restated Investment Contract, together with relevant laws and
regulations of R.O.C., shall govern the relationship, which is contractual (the
Fund not being a separate legal entity), among the Manager, the Custodian and
the Unitholder.

                  1.2      The Fund's investment objective is long-term capital
appreciation through investment primarily in publicly traded equity securities
of R.O.C. issuers. The Fund intends to spread risk by investing in various
industries and issuers. The Fund may also invest in debt securities of R.O.C.
issuers (including the R.O.C. government). It is an investment policy of the
Fund that normally at least 70% of the total assets held in the Fund will be
invested in securities of R.O.C. issuers (including the R.O.C. government). For
temporary defensive purposes during periods in which changes in economic,
financial or political conditions make it advisable, the Trust may ask the
Manager to reduce its holdings in equity securities and increase its holdings in
(i) long-term or short-term debt securities issued by the R.O.C. government, its
agencies or instrumentalities, or other private issuers in the R.O.C., (ii)
certificates of deposit issued by banks or other financial institutions in the
R.O.C. or (iii) cash, or any combination of the foregoing, in each case to the
extent deemed prudent by the Manager.

<PAGE>

                                                                               3

         2.       BASIC OBLIGATIONS AND RIGHTS

                  2.1      The Manager shall:

                           (a)      be obliged to manage the investment of the
assets constituting the Fund held by the Custodian for the exclusive benefit of
the Unitholder in good faith and to the best of its ability and without gaining
any advantage for itself or any of its Connected Persons (as defined in Article
17 below) thereby except as expressly provided in this Amended and Restated
Investment Contract, in accordance with the investment objective and
restrictions as provided in Article 10 below and subject to and in accordance
with any directions or guidelines made or established by the Unitholder which
are not in contravention of the R.O.C. laws and regulations;

                           (b)      be obliged to account to the Unitholder for
any loss in value of assets held in the Fund where such loss has been caused by
its wilful misfeasance, bad faith or gross negligence in the performance of its
duties or its reckless disregard of its obligations and duties under this
Amended and Restated Investment Contract;

                           (c)      be responsible to the Unitholder for the
acts and omissions of all persons to whom it may delegate any of its functions
as Manager as if they were its own acts and omissions;

                           (d)      promptly report to the R.O.C. SFC and to the
Unitholder any matter which in the opinion of the Manager is an actual or
anticipated breach by the Custodian of any of the provisions of this Amended and
Restated Investment Contract or of any relevant provisions of the laws and
regulations of the R.O.C.;

                           (e)      to the extent permitted by the laws and
regulations of the R.O.C., take such action to enforce the obligations of the
Custodian, on behalf of and for the benefit of the Unitholder, under this
Amended and Restated Investment Contract as it shall think fit or as shall from
time to time be required by the R.O.C. SFC or the Unitholder;

                           (f)      perform its obligations under this Amended
and Restated Investment Contract so as to (i) comply with all laws and
regulations of the R.O.C. and of the United States applicable to the Manager and
the Unitholder and (ii) permit the Unitholder to qualify as a regulated
investment company under the applicable provisions of the United States Internal
Revenue Code of 1986, as amended (the "Code"), and to take such steps as the
Unitholder may deem necessary or desirable pursuant to such provisions of the
Code (including, without limitation, the making of distributions); and

                           (g)      (i) issue certificates in respect of units
issued and cancel certificates in respect of units redeemed and (ii) implement
the procedures for issuing and

<PAGE>

                                                                               4

redeeming units, all in accordance with the relevant provisions of this Amended
and Restated Investment Contract and the laws and regulations of the R.O.C.

                  2.2      The Custodian shall:

                           (a)      (i) be responsible absolutely and without
qualification to the Unitholder for the safekeeping of all assets held in the
Fund (aside from the assets which are entrusted to a central securities
depository company for safekeeping in accordance with Article 2.2(e) below) at
all times and of all amounts from time to time set aside out of the assets held
in the Fund and held for the purposes of distribution in accordance with Article
13 of this Amended and Restated Investment Contract, (ii) shall indemnify the
Unitholder in the event of any loss of such assets and amounts resulting from a
breach of its duties hereunder and (iii) shall insure such assets and amounts
adequately against loss, but the Custodian shall not be responsible for the
willful or negligent default (including non-payment or failure to deliver
securities) by securities brokers or other persons selected by the Manager and
dealt with by the Custodian, unless such default is contributed to by the
Custodian;

                           (b)      comply with the instructions of the Manager
on behalf of the Unitholder given from time to time pursuant to this Amended and
Restated Investment Contract in relation to the disposition of the assets held
in the Fund from time to time and the exercise of rights attaching thereto
except where, in the opinion of the Custodian, to do so would or might involve a
breach of this Amended and Restated Investment Contract or of any relevant
provisions of the laws and regulations of the R.O.C., in which case the
Custodian shall immediately notify the Manager and the Unitholder;

                           (c)      collect and present for payment on a timely
basis and hold as part of the assets held in the Fund all dividends and other
payments and assets which the Fund shall be entitled by applicable law or custom
or otherwise; and

                           (d)      promptly report to the R.O.C. SFC and to the
Unitholder any matter which in the opinion of the Custodian is an actual or
anticipated breach by the Manager of any of the provisions of this Amended and
Restated Investment Contract relating to R.O.C. laws and regulations or of any
relevant provisions of the laws and regulations of the R.O.C.; and

                           (e)      be at liberty to open an account with a
central securities depository company incorporated with the approval of the
Ministry of Finance (the "Depository Company") and to entrust the Depository
Company with the safekeeping of the securities held in the Fund in accordance
with the Custodian's obligations herein. The safekeeping costs chargeable by the
Depository Company shall be paid by the Custodian, PROVIDED, HOWEVER, that the
Custodian shall not be held responsible for losses to the Fund resulting from a
willful or negligent default by the Depository Company unless the Custodian
contributed to such default, but shall on behalf of the Fund claim the

<PAGE>

                                                                               5

indemnity for such losses, with the expenses incurred from the claim to be
reimbursed out of the assets held in the Fund. The Custodian shall monitor and
report periodically to the Manager and, if requested, the Unitholder with regard
to any materially adverse change with respect to (1) the Depository Company's
obligation to the Fund to indemnify the Fund and insure the Fund's assets held
through the Depository Company in the event of loss; (2) the Fund's right that
its assets not be subject to any right, charge, security interest, lien or claim
of any kind in favor of the Depository Company except a claim of payment for
their safe custody or administration; (3) the Fund's right that beneficial
ownership of its assets in the hands of the Depository Company will be freely
transferable without the payment of money or value other than for safe custody
or administration; (4) the adequacy of the Depository Company's records that are
maintained to identify the assets belonging to customers of the Custodian; and
(5) the right of the Fund's public accountants to be given access to the records
or confirmations of the contents of records of the Depository Company, the
Depositary Company being obligated to reply.

                  The Custodian shall not be responsible for any investment loss
of assets held in the Fund and shall have no other responsibilities to the
Manager or the Unitholder other than those provided in this Article 2.2.

                  2.3      The Unitholder shall have the right at all times to
enforce against the Manager the obligations of the Manager, and against the
Custodian the obligations of the Custodian, under this Amended and Restated
Investment Contract.

                  2.4      The proper costs incurred by the Manager in enforcing
the obligations of the Custodian shall be borne out of the assets held in the
Fund. The Manager shall be entitled to an indemnity out of the assets held in
the Fund against any claims incurred or suffered by it as a result of its acting
as the Manager under this Amended and Restated Investment Contract which are not
attributable to its wilful misfeasance, bad faith or gross negligence in the
performance of its duties or its reckless disregard of its obligations and
duties under this Amended and Restated Investment Contract ("Disabling
Conduct"), but only to the extent that such claims are not borne by any person
other than the Manager, and only to the extent that there has been (1) a final
decision on the merits by a court or other body before whom the proceeding was
brought that the Manager was not liable by reason of Disabling Conduct or (2) in
the absence of such a decision, a reasonable determination, based upon a review
of the facts, that the Manager was not liable by reason of Disabling Conduct by
(a) the vote of a majority of a quorum of trustees of the Unitholder who are
neither "interested persons" as defined in Section 2(a)(19) of the 1940 Act nor
parties to the proceeding or (b) an independent legal counsel in a written
opinion.

                  2.5      The Custodian shall be indemnified by the Fund
against any claims incurred or suffered by it as a result of its acting as the
Custodian under this Amended and Restated Investment Contract which are not
attributable to its wilful misfeasance, bad faith or gross negligence in the
performance of its duties or its reckless disregard of its

<PAGE>

                                                                               6

obligations and duties under this Amended and Restated Investment Contract, but
only to the extent such claims are not borne by any person other than the
Custodian.

                  2.6      The assets held in the Fund will not be subject to
any right, charge, security interest, lien or claim of any kind in favor of the
Custodian or its creditors; beneficial ownership of the assets held in the Fund
will be freely transferable to another Custodian without payment of money or
value to the Custodian; the Custodian will maintain adequate records identifying
the assets held in the Fund as being held for the benefit of the Unitholder; the
Unitholder's independent public accountants will be given access to such records
during normal business hours upon request; and the Manager (acting on behalf of
the Unitholder) will receive periodic reports from the Custodian with respect to
the safekeeping of the assets held in the Fund, including, but not limited to,
notification of any transfer of assets to or from the Fund.

                  2.7      The Custodian represents and warrants to the Manager
and the Unitholder that it is a banking institution established under R.O.C.
law, is regulated as such by the R.O.C. government or an agency thereof, and had
shareholder's equity in excess of the New Taiwan Dollar equivalent of
US$200,000,000 as of the close of its fiscal year ended June 30, 1996.

         3.       FUND ASSETS

                  3.1      All assets held in the Fund shall at all times be
held by the Custodian and, where in registered form, shall be registered in the
name of "Special Account for The R.O.C. Taiwan Fund under the Custody of the
Central Trust of China" or in such other name as may be consented to by the
R.O.C. SFC, the Unitholder and the Manager.

                  3.2      After the reorganization of the Fund, a new
certificate evidencing units of the Fund (the "Units") was issued to the
Unitholder to evidence its acquisition of the entire beneficial interest in the
assets constituting the Fund and to replace the units issued to the unitholders
of the Fund. The number of Units issued to the Unitholder was equal the number
of units thus replaced.

                  3.3      The provisions of Article 18-2 of the Securities and
Exchange Law of the R.O.C. shall apply to the assets held in the Fund, and such
assets shall not form part of the assets of the Custodian or of the Manager. To
the extent that legitimate claims made by third parties against the assets
constituting the Fund exceed the value of those assets, the satisfaction of such
claims shall be the responsibility of the Unitholder and not the Manager or
Custodian.

                  3.4      The Custodian shall not dispose of assets held in the
Fund except:

                           (a)      in accordance with instructions received by
it from the Manager in relation to:

<PAGE>

                                                                               7

                                    (i)     the investment or realization of
                                            assets for the account of the Fund;

                                    (ii)    the payment or discharge of other
                                            amounts or liabilities properly
                                            payable or dischargeable out of the
                                            assets held in the Fund in
                                            accordance with the provisions of
                                            this Amended and Restated Investment
                                            Contract;

                                    (iii)   the payment of amounts due to the
                                            Unitholder by way of any
                                            distribution in accordance with the
                                            provisions of this Amended and
                                            Restated Investment Contract,
                                            including but not limited to any
                                            distribution referred to in Article
                                            2.1(f)(ii) above; or

                                    (iv)    the payment of amounts due to the
                                            Unitholder upon due redemption of
                                            Units;

                           (b)      to the Unitholder upon liquidation and
distribution of assets held in the Fund; or

                           (c)      as otherwise required by any mandatory
provision of law.

         4.       UNITS

                  4.1      Ownership of the assets constituting the Fund by the
Unitholder shall be evidenced by beneficial certificates representing one or
more Units (the "Certificates") in the form approved by the R.O.C. SFC and
signed by the Manager and the Custodian.

                  4.2      The initial Certificate issued to the Unitholder
after the reorganization indicates the number of Units issued to the Unitholder
in accordance with Article 3.2 above.

                  4.3      Each Unit issued in accordance with Article 3.2 above
represents the Net Asset Value (as determined in accordance with Article 5
below) per unit of the Fund as of the close of business on May 19, 1989.

                  4.4      The Manager and the Custodian shall each be
responsible for the maintenance of a record of the number of Units held from
time to time by the Unitholder, in accordance with the relevant provisions of
this Amended and Restated Investment Contract and the laws and regulations of
the R.O.C.

<PAGE>

                                                                               8

                  4.5      Subsequent to the initial issuance of Units in
accordance with Article 4.3 above, each additional Unit issued shall, subject to
Article 7 below, be issued at a price per Unit (the "Net Asset Value per Unit")
calculated, as at the Valuation Date (as defined in Article 5.2 below)
immediately following the date of receipt by the Manager of the application for
the issuance of such additional Unit, by dividing (a) the Net Asset Value of the
Fund by (b) the number of outstanding Units (as determined in accordance with
Article 5.2(g) below).

                  4.6      Payment for each Unit shall be made in cash to the
Custodian in advance of the issuance of such Unit.

                  4.7      Units shall not he transferable by the Unitholder
except by redemption in accordance with Article 6 below.

         5.       VALUATION

                  5.1      The "Net Asset Value" of the Fund shall be the value
of the assets held in the Fund less its liabilities (including such provisions
and allowances for contingencies as the Manager may think appropriate in respect
of the costs and expenses payable out of the assets held in the Fund in
accordance with Article 8 below).

                  5.2      The Net Asset Value of the Fund and the Net Asset
Value per Unit shall be calculated by the Manager as at each business day in
Taipei (a "Valuation Date") by reference to (INTER ALIA) the following criteria:

                           (a)      the value of assets held in the Fund, other
than cash or assets (not specified in (i) to (iv) below) considered by the
Manager to be the effective equivalent of cash, shall be determined:

                                    (i)     where the assets are listed and
                                            dealt in on the Taiwan Stock
                                            Exchange, by reference to the last
                                            dealt price on such Exchange on the
                                            relevant Valuation Date or, if there
                                            is no last dealt price on such
                                            Exchange on that date, the last
                                            dealt price on such Exchange
                                            immediately before the relevant
                                            Valuation Date;

                                    (ii)    where the assets are bonds,
                                            debentures or financial instruments
                                            not listed and dealt in on the
                                            Taiwan Stock Exchange, by reference
                                            to the valuation thereof on the
                                            relevant Valuation Date or the
                                            latest available valuation by the
                                            Stock Brokers' Association of
                                            Taipei, or, if there is no such
                                            valuation, at their par value plus
                                            interest accrued but unpaid to the
                                            relevant Valuation Date;

<PAGE>

                                                                               9

                                    (iii)   where the assets are money market
                                            instruments, at cost plus interest
                                            accrued but unpaid from the date of
                                            purchase to the relevant Valuation
                                            Date; and

                                    (iv)    in all other cases, by reference to
                                            valuation procedures adopted by the
                                            Unitholder and consistent with
                                            guidelines from time to time laid
                                            down by the R.O.C. SFC;

                           (b)      in the case of any interest-bearing
investment or other investment on which income is accruing, not included within
(a)(ii) or (a)(iii) above, there shall be included in the value thereof all
interest or other income accruing up to the Valuation Date;

                           (c)      cash, the effective equivalent of cash,
accounts receivable and accounts prepaid shall be included at the full face or
market value thereof;

                           (d)      there shall be made such allowance (if any)
as the Manager may consider appropriate in the case of any asset that the
Manager considers may not be fully recoverable;

                           (e)      unperformed or partially performed
agreements for the acquisition or disposition of assets shall be valued as if
they had been completely performed;

                           (f)      liabilities shall include the amount of any
fee payable to the Custodian or the Manager in accordance with Article 9 below
and accrued at or accruing to the relevant Valuation Date but remaining unpaid;

                           (g)      the number of outstanding Units shall
include Units scheduled to be redeemed by reference to the relevant Valuation
Date but shall exclude Units scheduled to be issued by reference to that
Valuation Date;

                           (h)      there may be excluded from the value of any
assets in respect of the acquisition or disposition of which brokerage, duties
and other similar costs would be paid out of the assets held in the Fund if such
assets had been acquired or disposed on the relevant Valuation Date an amount
not exceeding the Manager's bona fide estimate of the amount of such costs which
would have been so payable; and

                           (i)      currency conversion between U.S. Dollars and
N.T. Dollars shall be made at the closing exchange rate in the R.O.C. on the
relevant Valuation Date.

                  If in any respect extraordinary circumstances render it
impracticable or inappropriate to conduct a valuation on the basis prescribed
herein, the Manager shall to

<PAGE>

                                                                              10

the extent necessary follow other valuation procedures consistent with
guidelines from time to time laid down by the R.O.C. SFC.

         6.       REDEMPTION OF UNITS

                  6.1      The Unitholder may (subject to Article 7 below and
relevant laws and regulations of the R.O.C. governing foreign investment and
foreign exchange control) redeem all or any of its Units by delivering the
Certificate(s) in respect of the relevant Unit(s) together with an appropriate
request for redemption to the Manager at its principal office in Taipei. The
redemption price shall be the Net Asset Value per Unit (calculated in accordance
with Article 4.5 above) as at the next Valuation Date immediately following the
date of receipt by the Manager of the relevant redemption request and
Certificate(s).

                  6.2      Redemption proceeds shall (subject to Article 7
below) be paid out not later than five days after the next Valuation Date
following the date of receipt by the Manager of the relevant redemption request
and Certificate(s).

                  6.3      When the Unitholder requests redemption of only part
of the Units comprised in a Certificate, the Manager shall (subject to Article 7
below), in addition to paying out the redemption proceeds in accordance with
Article 6.2 above, issue a new Certificate in respect of the relevant Units not
redeemed not later than 14 days after the next Valuation Date following the date
of receipt by the Manager of the relevant redemption request and the relevant
Certificate.

         7.       SUSPENSION OF VALUATION, ISSUES,
                  REDEMPTIONS AND PAYMENTS

                  7.1      The Manager may, subject to R.O.C. SFC approval,
temporarily suspend valuation of the assets held in the Fund and calculation of
the Net Asset Value in the following events:

                           (a)      when the Taiwan Stock Exchange or the R.O.C.
foreign exchange market is closed otherwise than for ordinary holidays;

                           (b)      in the case of breakdown of the means of
communication normally used for the valuation of any material portion of the
assets held in the Fund;

                           (c)      where currency exchange or securities
trading is restricted; or

                           (d)      other special events preventing the
acceptance of redemption requests or payment of redemption price.

<PAGE>

                                                                              11

                  7.2      During any period when valuation is suspended, no
issuance or redemption of Units shall be made, and no payment shall be made of
any redemption proceeds payable but unpaid in respect of any Units already
redeemed.

         8.       EXPENSES

                  8.1      The following items shall be the only costs and
expenses payable out of the assets held in the Fund:

                           (a)      the acquisition price and brokerage, stamp
duty and similar direct acquisition costs of assets acquired for the account of
the Fund;

                           (b)      brokerage, stamp duty and similar direct
disposition costs arising on the disposition of assets held in the Fund;

                           (c)      all stamp and similar duties and charges
payable from time to time in respect of assets held in the Fund;

                           (d)      all necessary or appropriate expenses
incurred in relation to the registration of any assets in the name of the
Custodian for the benefit of the Fund;

                           (e)      all necessary or appropriate expenses
incurred in the collection and distribution of income derived from assets held
in the Fund;

                           (f)      all fees and expenses of any auditors or
legal counsel of the Fund;

                           (g)      all taxes payable in respect of income
(including stock dividends) of, the holding of or dealings with assets held in,
the Fund;

                           (h)      all necessary or appropriate expenses,
including postage, telex and telephone costs, incurred by the Custodian in
connection with the acquisition or disposition of any assets held in the Fund;

                           (i)      any compensation payable to the Manager or
the Custodian in accordance with Article 9 below;

                           (j)      legal fees and expenses incurred in
connection with the interpretation, amendment or enforcement of this Amended and
Restated Investment Contract;

                           (k)      costs relating to the publication of Net
Asset Value per Unit or the Net Asset Value, and the printing, mailing and
similar costs for any regular report sent to the Unitholder;

<PAGE>

                                                                             123

                           (l)      all attestation fees incurred in connection
with the issuance of Certificates;

                           (m)      all necessary or appropriate expenses
incurred by the Unitholder in connection with its organization and initial
receipt of Units, any public offering of its shares to investors in the United
States or elsewhere, the listing of its shares on any stock exchange, its
registration and operation as a management investment company under the 1940 Act
and its qualification as a regulated investment company under the Code; and

                           (n)      all other necessary or appropriate costs,
fees and expenses incurred by the Manager or the Custodian on behalf of the Fund
or the Unitholder in the course of performing their respective duties (including
indemnification costs, the payment of which is provided for in Articles 2.2(e),
2.4 and 2.5); PROVIDED that the Manager and the Custodian shall each bear all
expenses associated with the performance of its duties hereunder (including
employee salaries and overhead) other than expenses to be paid out of the assets
held in the Fund as specifically provided in this Article 8, and the Manager
shall bear the proper fees and expenses of those officers and trustees of the
Unitholder that are "interested persons" (as defined in the 1940 Act) of the
Manager.

         9.       CUSTODIAN AND MANAGEMENT FEES

                  9.1      The remuneration payable to the Custodian and the
Manager, respectively, out of the assets held in the Fund shall be fees accruing
on a daily basis at the applicable rates as set forth below, accruable on the
Net Asset Value as determined on each Valuation Date, payable in NT$ in arrears
on the last Valuation Date in each calendar month.

                  9.2      From and after July 1, 2000, the amount of
remuneration payable to the Manager shall be calculated at the following
applicable rates:

<PAGE>

                                                                              13

--------------------------------------------------------------------------------
AMOUNT OF NET ASSET VALUE                                   PERCENTAGE FEE
--------------------------------------------------------------------------------
Up to NT$6,000,000,000                                           1.35%
--------------------------------------------------------------------------------
In excess of NT$6,000,000,000 up to NT$8,000,000,000             1.15%
--------------------------------------------------------------------------------
In excess of NT$8,000,000,000 up to NT$10,000,000,000            0.95%
--------------------------------------------------------------------------------
In excess of NT$10,000,000,000                                   0.75%
--------------------------------------------------------------------------------

                  9.3      From and after July 1, 2000, the amount of
remuneration payable to the Custodian shall be calculated at the following
applicable rates, provided that the minimum remuneration per annum shall be no
less than NT$2,400,000:

--------------------------------------------------------------------------------
AMOUNT OF NET ASSET VALUE                                   PERCENTAGE FEE
--------------------------------------------------------------------------------
Up to NT$6,000,000,000                                           0.15%
--------------------------------------------------------------------------------
In excess of NT$6,000,000,000 up to NT$8,000,000,000             0.13%
--------------------------------------------------------------------------------
In excess of NT$8,000,000,000 up to NT$10,000,000,000            0.11%
--------------------------------------------------------------------------------
In excess of NT$10,000,000,000                                   0.09%
--------------------------------------------------------------------------------

         10.      OBJECTIVE AND RESTRICTIONS

                  10.1     In accordance with the investment objective set forth
in Article 1.2 above, the assets held in the Fund shall be invested in
securities and money market instruments denominated in NT$ and in NT$ cash and
banking and similar accounts and, if and when permitted by the laws and
regulations of the R.O.C., in such money market instruments or cash or banking
or similar accounts, denominated in foreign currencies, as may be available in
the R.O.C.

                  10.2     The Manager shall ensure that the Fund shall not:

                           (a)      invest in equity securities which, at the
time the investment is made, are not listed and traded on the Taiwan Stock
Exchange, except that the Fund may invest in such securities if R.O.C. law is
changed to so permit;

                           (b)      invest in partnership interests;

<PAGE>

                                                                              14

                           (c)      effect any transaction of securities between
the trust funds under its management;

                           (d)      apply the assets of the Fund to purchase
beneficial certificates issued by the Manager unless the beneficial certificates
are redeemed by investors or repurchased for the purpose of closing the Fund;

                           (e)      invest in securities issued by securities
investment trust funds in the R.O.C.;

                           (f)      borrow money (except to the extent that
amounts advanced by the Manager in connection with the reorganization referred
to in the preamble might be considered borrowing money) or pledge its assets
held pursuant to the Amended and Restated Investment Contract;

                           (g)      engage in short sales of securities, write
put and call options or engage in purchases of securities on margin;

                           (h)      make any loan (other than by bank deposits
or by investment in debt securities or in repurchase agreements) or enter into
any guaranty of any loan;

                           (i)      purchase any security (other than
obligations of the United States government or its agencies or
instrumentalities), if as a result of such purchase (i) as to 75% of the total
assets held under the Amended and Restated Investment Contract (taken at their
then current value), more than 5% of the total assets held under the Amended and
Restated Investment Contract (taken at their then current value) would then be
invested in the securities of a single issuer, (ii) as to the remaining 25% of
the total assets held under the Amended and Restated Investment Contract (taken
at their then current value), more than 10% of the total assets held under the
Amended and Restated Investment Contract (taken at their then current value)
would then be invested in the securities of a single issuer (except that the
Fund may invest up to 25% of its assets in obligations of the R.O.C. or its
agencies or instrumentalities), (iii) more than 10% of the outstanding equity
securities of any issuer (at the time of purchase) would be beneficially held by
the Fund or (iv) 25% or more of the assets held in the Fund (taken at their then
current value) would be invested in a single industry;

                           (j)      underwrite the issue or sale of any
securities;

                           (k)      invest in securities issued by any person
(except the R.O.C. government) who beneficially owns more than 5% of, or takes
any significant active role in the management of, the Manager;

                           (l)      issue senior securities, except as permitted
by paragraph (d) above;

<PAGE>

                                                                              15

                           (m)      buy or sell real estate or real estate
mortgage loans;

                           (n)      buy or sell commodities or commodity
contracts, including futures contracts on a contract market or other futures
market, except that the Fund may invest in currency forward contracts to hedge
against currency fluctuations if R.O.C. law is changed to so permit; or

                           (o)      invest (i) in securities of R.O.C. issuers
the issuance of which has not been approved by or registered with the R.O.C. SFC
for offering to the public or (ii) in unregistered securities of United States
issuers that must be registered before being publicly offered under the United
States Securities Act of 1933.

                  10.3     The Manager shall ensure that investments of assets
held in the Fund will meet the requirements of section 851(b), (c) and (d) of
the Code and any corresponding future provisions of the Code or any successor
legislation thereto. Subject to the immediately preceding sentence, nothing in
Article 10.2 above shall require the realization of any assets held in the Fund
where any of the restrictions therein is breached as a result of any event
outside the control of the Manager and occurring after such investment is made
(including but not limited to redemptions of Units or securities, any
reorganization or amalgamation of any issuer and the suspension of any listing),
but no further assets shall be acquired for account of the Fund until the
relevant restriction can again be complied with, except pursuant to the exercise
of subscription rights to purchase securities of an issuer at a time when the
Fund's portfolio holdings of securities of such issuer would otherwise exceed
the limits set forth in Article 10.2(i) above, where after the announcement of
such rights and prior to its exercise, the Manager sells at least the number of
securities which it subsequently purchases through the exercise of the
subscription rights.

                  10.4     To not less than the extent (if any) from time to
time required by the R.O.C. SFC, a proportion of the assets held in the Fund
shall be retained at all times in liquid form in assets of a type specified by
the R.O.C. SFC.

                  10.5     Cash shall be deposited with the Custodian or such
other banks meeting the requirements set forth in the 1940 Act, or be invested
in money market instruments.

                  10.6     To the maximum extent possible, all transactions for
account of the Fund shall be carried out through stock exchanges and other
officially designated markets. Subject to any limitations which may be imposed
under R.O.C. laws or regulations or the 1940 Act and any rules and regulations
promulgated thereunder, transactions for account of the Fund may be carried out
through a broker who is a Connected Person (as defined in Article 17 hereof) of
the Manager to such extent as the Manager may think fit; provided that the cost
thereof to the Fund is not greater than it

<PAGE>

                                                                              16

would have been had the transactions been carried out through a broker who was
not a Connected Person of the Manager.

                  10.7     The Manager may from time to time, with the consent
of the Unitholder and the R.O.C. SFC, adopt further investment restrictions in
order to comply with applicable laws and regulations.

         11.      DURATION, CHANGES IN MANAGER
                  AND CUSTODIAN AND TERMINATION

                  11.1     Subject to the provisions of this Amended and
Restated Investment Contract, the Fund is established for an unspecified period.

                  11.2     The Fund shall terminate if:

                           (a)      the R.O.C. SFC by notice in writing to the
Manager and the Custodian so requires;

                           (b)      the Manager notifies the Unitholder, the
Custodian and the R.O.C. SFC that in its opinion further operation of the Fund
in accordance with this Amended and Restated Investment Contract is illegal,
impracticable or inadvisable having regard solely to the interests of the
Unitholder; or

                           (c)      the Unitholder is adjudicated a bankrupt.

                  11.3     A majority of the Unitholder's Trustees as a whole
shall annually review the continuance of the arrangements with the Custodian
under this Amended and Restated Investment Contract as consistent with the best
interests of the Unitholder and its shareholders.

                  11.4     (a)      If not sooner terminated this Amended and
Restated Investment Contract shall continue in effect for successive periods of
12 months each after the first anniversary of the date if this Agreement;
PROVIDED that each such continuance shall be specifically approved annually by
(i) the vote of a majority of the Trustees of the Unitholder who are not parties
to this Amended and Restated Investment Contract or "interested persons" (as
defined in the 1940 Act) of any such party, cast in person at a meeting called
for the purpose of voting on such approval, and (ii) either (x) the vote of a
majority of the outstanding voting securities of the Unitholder or (y) the vote
of a majority of the Unitholder's Trustees as a whole. The Unitholder shall
notify the Manager and the Custodian of the continuance (or discontinuance)
annually.

                           (b)      Notwithstanding Article 11.4(a) above, this
Amended and Restated Investment Contract may be terminated at any time by the
Unitholder, without the payment of any penalty, upon a vote of a majority of the
Trustees as a whole, or a

<PAGE>

                                                                              17

majority of the outstanding voting securities of the Unitholder, upon 60 days
written notice to the Manager and the Custodian.

                           (c)      As used in this Article 11.4, the phrase
"majority of the outstanding voting securities" shall have the meaning set forth
in the 1940 Act.

                           (d)      This Amended and Restated Investment
Contract shall automatically terminate in the event of its assignment (as
defined in the 1940 Act). Any transfer or other disposition (other than by
redemption in accordance with Article 6 above) of any of the Units by the
Unitholder shall also constitute an assignment of this Amended and Restated
Investment Contract.

                  11.5     (a)      The R.O.C. SFC may order that a new Manager
or Custodian be appointed within six months if the R.O.C. SFC considers that the
Manager or the Custodian, as the case may be, is incapable of carrying out its
functions properly.

                           (b)      The Manager or the Custodian may be removed
by the Unitholder upon 60 days notice to the other parties hereto.

                           (c)      If either the Manager or the Custodian goes
into liquidation or bankruptcy or if its permit to act as Manager or Custodian
has been revoked, it shall be deemed to have been forthwith removed as Manager
or Custodian, as the case may be.

                           (d)      If the Manager or Custodian is removed, or
resigns in accordance with Article 11.5(e) below, the Unitholder may appoint a
new Manager or Custodian and, subject to Article 16 below, enter into a new
investment contract containing substantially the same terms and conditions as
this Amended and Restated Investment Contract, and this Amended and Restated
Investment Contract shall automatically terminate. The appointment of a new
Manager shall be approved by the Custodian and by the R.O.C. SFC, and the
appointment of a new Custodian shall be approved by the Manager and by the
R.O.C. SFC, PROVIDED that if the R.O.C. SFC has, in the circumstances specified
in the Regulations Governing the Administration of Securities Investment Trust
Funds (effective August 10, 1983), as from time to time amended, required the
appointment of a new Manager or a new Custodian and the Unitholder has not
appointed a new Manager or a new Custodian within three months after the R.O.C.
SFC has so required, the R.O.C. SFC may require the liquidation and distribution
of the assets held in the Fund as provided in Article 11.6 below.

                           (e)      The Manager or the Custodian may resign at
any time by giving 60 days notice to the other parties hereto. If, at the end of
such 60-day period, no appointment of a replacement has been made and approved
and the Fund must be terminated, the Manager or the Custodian which has resigned
shall discharge such responsibilities hereunder as may be required for the
liquidation and distribution of the assets held in the Fund in accordance with
Article 11.6 below.

<PAGE>

                                                                              18

                  11.6     Upon the termination of this Amended and Restated
Investment Contract, the Manager shall, within three months after the effective
date of termination, liquidate the assets held in the Fund at reasonable prices,
satisfy any liabilities relating to the Fund and distribute the available
balance, if any, to the Unitholder.

         12.      ACCOUNTS AND STATEMENTS

                  12.7     The Manager shall maintain in its principal office in
Taipei sufficient accounts and records to enable a complete and accurate view to
be formed of the assets and liabilities and the income and expenditures of the
Fund, all transactions for account of the Fund and amounts received by the Fund
in respect of the issuance of Units and paid out by the Fund on redemptions of
Units and by way of distributions.

                  12.8     The Manager shall prepare financial statements of the
Fund (a) for each annual accounting period commencing immediately after the end
of the preceding period and ending on December 31 in each year (the "Final
Statements"), and (b) as at and for each calendar month ending on the last day
of such calendar month, such financial statement to be in such respective form
and containing such information as may be required by the R.O.C. SFC.

                  12.9     The Manager shall:

                           (a)      cause the Final Statements to be audited by
a person or firm authorized under the laws of the R.O.C. and the regulations of
the R.O.C. SFC (the "Auditors");

                           (b)      submit each Final Statement together with
such report as the Manager may intend to make in relation thereto to the
Unitholder and the Auditors' report thereon to the R.O.C. SFC for comment and
approval within two months after the end of the relevant accounting period;

                           (c)      comply with such requirements as the R.O.C.
SFC may make in relation to each such Final Statement and report within two
weeks after the date on which such requirements are made;

                           (d)      send to the Unitholder and to the R.O.C. SFC
copies of all Final Statements and monthly statements; and

                           (e)      assist and cooperate with the Unitholder in
preparing such reports and statements, including, without limitation, the
calculation of the net asset value of the Unitholder, as may be required of the
Unitholder under the 1940 Act, the United States Securities Exchange Act of 1934
(the "1934 Act"), the rules and regulations promulgated under the 1934 Act and
1940 Act, and the rules and regulations of the New

<PAGE>

                                                                              19

York Stock Exchange, or such other stock exchanges on which the securities of
the Unitholder may be listed.

                  12.10    The Manager shall sign and the Custodian shall
countersign all Final Statements.

                  12.11    The Auditors' report on the Final Statements of the
Fund shall be in the form required by the R.O.C. SFC and where relevant shall
indicate the extent to which such a report cannot be given and the reasons
therefor.

         13.      DISTRIBUTIONS

                  13.12    Distributions of income in respect of each accounting
period ended December 31 will be made to the Unitholder not later than March 31
in the next following year. Distributions to the Unitholder may be made out of
income, realized capital gains, proceeds from the sale of dividends, or such
other items as may from time to time be permitted under the laws and regulations
of the R.O.C. The Manager in conjunction with the auditors shall determine what
is income and what is capital, except that stock dividends and gains (realized
or unrealized) on investments shall not be regarded as income and realized
discounts on debt securities and money market instruments may be regarded as
income. Costs and expenses payable out of the assets held in the Fund may be set
against income or capital as the Manager in conjunction with the Auditors may
determine; PROVIDED that the allocation of such costs and expenses to income or
to capital shall be consistent from year to year. Where expenses are set against
capital, they may be amortized on a straight line basis over a period not
exceeding five years.

                  13.13    The aggregate amount of each distribution shall be
credited to a separate account in the name of the Custodian, and such amount
shall thereupon cease to form part of the assets held in the Fund, but interest
earned on such amount pending distribution to the Unitholder shall be paid into
and form part of the assets held in the Fund.

         14.      CURRENCY

                  The accounts and records of the Fund shall be maintained in
NT$. Payments into the Fund upon issuance of the Units and out of the Fund on
the redemption of Units or by way of distributions shall be made in NT$. The Net
Asset Value and the Net Asset Value per Unit of the Fund shall be calculated in
NT$. The financial statements of the Fund shall be prepared in NT$.

<PAGE>

                                                                              20

         15.      INFORMATION AND NOTICES

                  15.14    There shall be held available for inspection by any
person without charge at the principal office of the Manager in Taipei at all
reasonable business hours copies of:

                           (a)      this Amended and Restated Investment
Contract, as from time to time amended;

                           (b)      the current sales prospectus (if any) in
relation to shares of the Unitholder; and

                           (c)      all final and monthly statements, together
with any relevant Auditors' reports and reports of the Manager in relation
thereto, for the two latest annual accounting periods of the Fund, and all
accounts and records for such periods in relation to the matters referred to in
Article 12.1 above.

                  15.15    All notices to the Unitholder shall be sent by hand,
by airmail or by telex or facsimile transmission to its registered address and
shall become effective upon receipt by the Unitholder.

                  15.16    The Manager shall at all times maintain an office or
offices in Taipei and shall notify the Unitholder in accordance with Article
15.2 above of any change in the address of its principal office in Taipei.

         16.      AMENDMENTS

                  This Amended and Restated Investment Contract may be amended
only with the prior written agreement of the Unitholder, the Manager and the
Custodian, and subject to any approval required by applicable United States and
R.O.C. laws and regulations, including but not limited to the approval of the
R.O.C. SFC.

         17.      CONNECTED PERSONS

                  For the purpose of this Amended and Restated Investment
Contract, and subject to such amendments as the R.O.C. SFC may require, a person
is a "Connected Person" of another if:

                           (a)      together with any person acting in concert
with it in this connection, it owns or otherwise controls for its own account,
directly or indirectly, an interest, whether or not a voting interest, of more
than 5% (or, in the case of an interest of the Custodian, 10%) of that other; or

                           (b)      it is a director or supervisor, or takes any
significant active role in the management, of that other.

<PAGE>

                                                                              21

         18.      GOVERNING LAW, JURISDICTION AND LANGUAGE

                  18.17    The Fund, this Amended and Restated Investment
Contract and the Certificates shall be governed by, and this Amended and
Restated Investment Contract and the Certificates shall be construed in
accordance with, the laws of the R.O.C.

                  18.18    Any dispute arising out of or in respect of the Fund,
this Amended and Restated Investment Contract or the Certificates shall be
subject to the non-exclusive jurisdiction of the courts of the R.O.C. having
original jurisdiction and, in the case of any action against the Manager or the
Custodian, any court having original jurisdiction in the place where the Manager
or the Custodian has its principal office.

                  18.19    The governing language of this Amended and Restated
Investment Contract shall be Chinese, but documents issued in relation to the
Fund may be in either the Chinese or the English language.

         19.      EFFECTIVE DATE

                  This Amended and Restated Investment Contract shall be
effective as of July 1, 2000. Subsequent amendments to this Amended and Restated
Investment Contract shall become effective upon the approval thereof by the
R.O.C. SFC unless the R.O.C. SFC provides to the contrary.

<PAGE>

                                                                              22

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amended and Restated Investment Contract to be executed as of the date set forth
below.

                              INTERNATIONAL INVESTMENT TRUST COMPANY LTD.

                              By   /s/  Jevons Hu
                                   --------------------------------------------
                                   Name:    Jevons Hu
                                   Title:   President

                              CENTRAL TRUST OF CHINA

                              By   /s/  Jack H. Huang
                                   --------------------------------------------
                                   Name:    Jack H. Huang
                                   Title:   President

                              THE R.O.C. TAIWAN FUND

                              By   /s/  Michael Ding
                                   --------------------------------------------
                                   Name:    Michael Ding
                                   Title:   President

                  "The R.O.C. Taiwan Fund" (the "Unitholder") means and refers
to the Trustees from time to time serving under a Declaration of Trust of the
Unitholder dated May 8, 1989, a copy of which is on file with the Secretary of
The Commonwealth of Massachusetts. The execution of this contract has been
authorized by the Trustees of the Unitholder and this contract has been executed
on behalf of the Unitholder by an authorized officer of the Unitholder acting as
such and not individually, and neither such authorization by such Trustees nor
such execution by such officer shall be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but shall
bind only the assets and property of the Unitholder as provided in the
Declaration of Trust.

July 1, 2000

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

1.       INTRODUCTION AND POLICY                                              2

2.       BASIC OBLIGATIONS AND RIGHTS                                         3

3.       FUND ASSETS                                                          6

4.       UNITS                                                                7

5.       VALUATION                                                            8

6.       REDEMPTION OF UNITS                                                 10

7.       SUSPENSION OF VALUATION, ISSUES, REDEMPTIONS AND PAYMENTS           10

8.       EXPENSES                                                            11

9.       CUSTODIAN AND MANAGEMENT FEES                                       12

10.      OBJECTIVE AND RESTRICTIONS                                          13

11.      DURATION, CHANGES IN MANAGER AND CUSTODIAN AND TERMINATION          16

120      ACCOUNTS AND STATEMENTS                                             18

130      DISTRIBUTIONS                                                       19

140      CURRENCY                                                            19

150      INFORMATION AND NOTICES                                             20

160      AMENDMENTS                                                          20

170      CONNECTED PERSONS                                                   20

180      GOVERNING LAW, JURISDICTION AND LANGUAGE                            21

190      EFFECTIVE DATE                                                      21

                                        i

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