Document:

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                                                                   Exhibit 10.37

                                      LEASE

     LEASE (this "Lease") made as of the 28th day of December, 2005 (the "Date
of this Lease" or "Date of the Lease") by and between DIRECT INVEST-60 FRONTAGE,
LLC, a Delaware limited liability company ("Landlord"), and DYNAMICS RESEARCH
CORPORATION, a Massachusetts corporation ("Tenant"). In consideration of the
mutual covenants and conditions set forth below, Landlord and Tenant hereby
agree as follows.

                                    ARTICLE I

                        Basic Data, Definitions, Exhibits

     1.1 Basic Data. Each reference in this Lease to any of the following terms
and phrases shall be construed to incorporate the data stated for that term or
phrase in this Section 1.1.

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<S>                              <C>
Landlord's Address:              DIRECT INVEST-60 FRONTAGE, LLC
                                 c/o Direct Invest, LLC
                                 211 Congress Street, 8th Floor
                                 Boston, MA 02110
                                 Attention: William F. Rand, III

with a copy in like manner to:   Goodwin Procter LLP
                                 Exchange Place
                                 Boston, MA 02109

                                 Attention: Samuel L. Richardson, Esq.

Tenant's Address:                Dynamics Research Corporation
                                 60 Frontage Road
                                 Andover, Massachusetts 01810
                                 Attention: Richard Covel, Esq.

with a copy in like manner to:   Nixon Peabody LLP
                                 100 Summer Street
                                 Boston, Massachusetts 02110
                                 Attention: Andrew I. Glincher, P.C.

Land:                            The land described in Exhibit A attached
                                 hereto.

Building:                        The building containing approximately 130,706
                                 square feet of floor area presently located on
                                 the Land and any Alterations and Improvements
                                 thereto.

Premises:                        The Land, the Building and the driveways,
                                 parking areas, loading facilities, walkways,
                                 utility lines and
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<S>                              <C>
                                 other improvements now or hereafter located on
                                 the Land.

Term Commencement Date:          The Closing Date under that certain Purchase
                                 and Sale Agreement by and between Direct Invest
                                 Property Acquisition, L.L.C. and Tenant, dated
                                 November 18, 2005.

Initial Term:                    The period beginning on the Term Commencement
                                 Date and ending on the last day of the tenth
                                 Lease Year.

Term:                            The Initial Term, the First Additional Term (if
                                 Tenant exercises Tenant's First Extension
                                 Option) and the Second Additional Term (if
                                 Tenant exercises Tenant's Second Extension
                                 Option).

Base Rent:                       The following amounts for the following Lease
                                 Years:

                                 Lease    Annual Base      Monthly     Base Rent Per
                                  Year        Rent        Base Rent     Square Foot
                                 -----   -------------   -----------   -------------
                                  1-2    $1,437,766.00   $119,813.83       $11.00
                                  3-4    $1,568,472.00   $130,706.00       $12.00
                                  5-7    $1,666,501.50   $138,875.12       $12.75
                                  7-10   $1,731,854.50   $144,321.20       $13.25

Permitted Uses:                  General office use and, subject to Landlord's
                                 prior written approval, which shall not be
                                 unreasonably withheld, such other uses
                                 permitted under the applicable zoning code
                                 without special permit or variance, provided
                                 that any Alterations and Improvements required
                                 with respect to such additional uses shall be
                                 performed by Tenant, at its sole cost and
                                 expense, in accordance with the requirements of
                                 this Lease. The Permitted Uses hereunder shall
                                 be subject to all Applicable Laws and to all
                                 reasonable requirements of the insurers of the
                                 Premises.

Commercial General Liability
Insurance Limits:                $5,000,000 combined single limit.

Broker:                          CB Richard Ellis/New England
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     1.2 Further Definitions. In addition to the terms and phrases set forth
above, the following terms and phrases shall be defined as indicated.

     1.2.1 Additional Rent. "Additional Rent" shall mean all Real Estate Taxes,
Operating Expenses, personal property taxes, insurance premiums and utility
charges to be paid by Tenant pursuant to Section 3.2, all interest to be paid by
Tenant on late payments of rent and late charges pursuant to Section 3.3, and
all other charges to be paid by Tenant pursuant to any other of the terms and
conditions of this Lease.

     1.2.2 Alterations and Improvements. "Alterations and Improvements" shall
mean any alterations, modifications, installations, additions and improvements
to the Premises.

     1.2.3 Applicable Laws. "Applicable Laws" shall mean all laws, codes,
statutes, ordinances, by-laws, regulations, rules, licenses, permits, variances,
governmental orders, governmental approvals, title restrictions and requirements
of any board of fire underwriters, insurance rating organization and other
insurance requirements applicable to any given facts, things, circumstances or
events.

     1.2.4 Environmental Laws. Shall mean any federal, state and/or local
statute, ordinance, bylaw, code, rule and/or regulation now or hereafter
enacted, pertaining to any aspect of the environment or human health and safety,
including, without limitation, Chapter 21C, Chapter 21D, and Chapter 21E of the
General Laws of Massachusetts and the regulations promulgated by the
Massachusetts Department of Environmental Protection, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C.
Section 9601 et seq., the Solid Waste Disposal Act as amended by the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq., the Toxic
Substances Control Act, 15 U.S.C. Section 2061 et seq., the Federal Clean Water
Act, 33 U.S.C. Section 1251, the Federal Clean Air Act, 42 U.S.C.Section 7401 et
seq., and Occupational Safety and Health Act of 1970, 29 U.S.C. Section 651 et
seq.

     1.2.5 Event of Default. "Event of Default" shall have the meaning set forth
in Section 11.1.

     1.2.6 Exterior Service Systems. "Exterior Service Systems" shall have the
meaning set forth in Section 5.2.

     1.2.7 Final Professional. "Final Professional" shall have the meaning set
forth in Sections 14.1 and 14.2.

     1.2.8 First Additional Term. "First Additional Term" shall have the meaning
set forth in Section 14.1.

     1.2.9 First Additional Term Annual Base Rent. "First Additional Term Annual
Base Rent" shall mean the meaning set forth in Section 14.1.

     1.2.10 First Additional Term Rental Notice. "First Additional Rental
Notice" shall have the meaning set forth in Section 14.1.

     1.2.11 First Extension Notice. "First Extension Notice" shall have the
meaning set forth in Section 14.3.

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     1.2.12 Hazardous Substances. "Hazardous Substances" shall mean any
substances, materials or wastes defined or regulated as hazardous or toxic under
Environmental Laws, and shall specifically include, without limitation, oil,
petroleum products, asbestos, urea formaldehyde insulation, materials containing
lead, radon, and flammable, combustible and explosive substances.

     1.2.13 Indemnified Party. "Indemnified Party" shall have the meaning set
forth in Section 7.1.

     1.2.14 Initial Improvements Allowance. $650,000.00, to be held in escrow by
Mortgagee and distributed in accordance with the requirements of Section 5.6 in
respect of the Initial Improvements to be performed by Tenant.

     1.2.15 Interior Service Systems. "Interior Service Systems" shall have the
meaning set forth in Section 5.1.

     1.2.16 Landlord's Default. "Landlord's Default" shall have the meaning set
forth in Section 13.6.

     1.2.17 Late Payment/Default Interest Rate. "Late Payment/Default Interest
Rate" shall mean the prime rate of interest published from time to time in the
Wall Street Journal (or, if such newspaper ceases publication or ceases
publishing such rate, as published from time to time in a reasonably comparable
publication), plus 2% per annum, but in no event more, when taken together with
any other charges due from Tenant in connection therewith, than the maximum rate
of interest allowed by Applicable Laws.

     1.2.18 Lease Year. "Lease Year" shall mean each twelve (12) month period
during the Term commencing on the Term Commencement Date and on each anniversary
of the Term Commencement Date, or, if the Term Commencement Date does not fall
on the first day of a calendar month, the first Lease Year shall consist of the
partial calendar month following the Term Commencement Date and the succeeding
twelve full calendar months, and each succeeding Lease Year shall consist of a
one-year period commencing on the first day of the calendar month following the
calendar month in which the Term Commencement Date fell.

     1.2.19 Mortgage. "Mortgage" shall mean any mortgage, ground lease, deed of
trust or other similar instrument evidencing a voluntary lien or encumbrance on
the Premises and all modifications, amendments, extensions, renewals,
replacements, substitutes and consolidations thereto.

     1.2.20 Mortgagee. "Mortgagee" shall mean the holder of any Mortgage.

     1.2.21 Necessary Permits. "Necessary Permits" shall mean all licenses,
permits, approvals and variances necessary under all Applicable Laws to conduct
a subject activity.

     1.2.22 Operating Expenses. "Operating Expenses" shall mean aggregate of (a)
the reasonable costs and expenses incurred by Landlord to perform the repair,
maintenance and replacement obligations under Section 4.2(a) and 4.2(b)
(provided that the Operating Expenses under this clause (a) shall be deemed
reasonable unless Tenant shall object in writing to

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                                       -5-

Landlord within ninety (90) days after receipt of the annual statement of
Operating Expenses from Landlord under Section 3.2.4, and such Operating
Expenses shall in all events be deemed reasonable in the event that the increase
in such Operating Expenses with respect to a particular Operating Year over the
immediately prior Operating Year is equal to or less than the corresponding
increase in the Consumer Price Index for All Urban Consumers
Boston-Brockton-Nashua, MA-NH-ME-CT (Base Year 1982-84 = 100), published by the
United States Department of Labor, Bureau of Labor Statistics or such
appropriate substitute index in the event that such index is not longer
published), and (b) premiums for insurance Landlord is required to carry under
this Lease or any reasonable and customary insurance required by any Mortgagee
of the Premises, and not otherwise carried by Tenant hereunder, including,
without limitation, the insurance required under Section 7.6, insurance covering
loss of rent, and commercial general liability insurance, and (c) the third
party management costs and expenses incurred by Landlord, which amounts under
this clause (c) shall not exceed $12,000 per annum. Notwithstanding the
foregoing, if, during the Term of this Lease, Landlord shall be required to make
a capital expenditure, the total reasonable cost of which is not properly
includable in Operating Expenses under clause (a) above for the year in which it
was made, there shall nevertheless be included in such Operating Expenses for
the year in which it was made and in Operating Expenses for each succeeding year
the annual charge-off of such capital expenditure. The annual charge-off shall
be determined by dividing the original capital expenditure plus an interest
factor reasonably determined by Landlord as being the lesser of Landlord's costs
of funds to perform such replacement or the interest rate then being charged for
long-term mortgages by institutional lenders on like properties within the
locality in which the Premises is located, by the number of years of useful life
of the capital expenditure; and the useful life shall be determined reasonably
by Landlord in accordance with practices in effect at the time of making such
expenditure.

     1.2.23 Operating Year. Shall mean each calendar year, all or any part of
which falls within the Term.

     1.2.24 Parties for Which Landlord Is Responsible. "Parties for Which
Landlord Is Responsible" shall mean Landlord's employees, servants, agents and
contractors and any other parties claiming or occupying by, through or under
Landlord or for which Landlord is otherwise legally responsible.

     1.2.25 Parties for Which Tenant Is Responsible. "Parties for Which Tenant
Is Responsible" shall mean Tenant's employees, servants, agents, contractors,
assignees, subtenants, licensees, concessionaires, invitees and any other
parties claiming or occupying by, through or under Tenant or for which Tenant is
otherwise legally responsible.

     1.2.26 Party; Parties. "Party" shall mean either Landlord or Tenant
generally. "Parties" shall mean both Landlord and Tenant together.

     1.2.27 Permitted Assignments and Subleasings to Tenant Affiliates or Tenant
Successors. "Permitted Assignments and Subleasings to Tenant Affiliates or
Tenant Successors" shall have the meaning set forth in Section 6.2.

     1.2.28 Permitted Incidental Hazardous Substances. "Permitted Incidental
Hazardous Substances" shall mean those Hazardous Substances ordinarily necessary
in the conduct of Tenant's business on the Premises pursuant to the Permitted
Uses. Tenant may bring and use

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Permitted Incidental Hazardous Substances on the Premises, but only subject to
and in strict compliance with the requirements, restrictions and conditions set
forth in Section 4.7.

     1.2.29 Rent. "Rent" shall mean Base Rent, Additional Rent and any other
sums or charges required to be paid by Tenant to Landlord under this Lease.

     1.2.30 Real Estate Taxes. "Real Estate Taxes" shall mean (a) all taxes,
assessments (special or otherwise), levies, fees, water and sewer rents and
charges, and all other government levies and charges, general and special,
ordinary and extraordinary, foreseen and unforeseen, which are, at any time
prior to or during the Term hereof, imposed or levied upon or assessed against
the Premises, the Base Rent, Additional Rent, any other charges payable by
Tenant hereunder, this Lease or the leasehold estate created hereby, or which
arise with respect to the operation, possession or use of the Premises, (b) all
gross receipts and similar taxes imposed or levied upon, assessed against or
measured by any Base Rent, Additional Rent or other charges payable by Tenant
hereunder, (c) all sales, value added, use and similar taxes at any time levied,
assessed or payable on account of the acquisition, leasing or use of the
Premises, and (d) all charges for utilities furnished to the Premises which may
become a lien on the Premises.

     1.2.31 Real Estate Tax Fund Payments. "Real Estate Tax Fund Payments" and
"Tax Fund Payments" shall have the meaning set forth in Section 3.2.2.

     1.2.32 Second Additional Term. "Second Additional Term" shall have the
meaning set forth in Section 14.2.

     1.2.33 Second Additional Term Annual Base Rent. "Second Additional Term
Annual Base Rent" shall have the meaning set forth in Section 14.2.

     1.2.34 Second Additional Term Rental Notice. "Second Additional Term Rental
Notice" shall have the meaning set forth in Section 14.2.

     1.2.35 Second Extension Notice. "Second Extension Notice" shall have the
meaning set forth in Section 14.2.

     1.2.36 Structure. "Structure" shall have the meaning set forth in Section
4.2(b).

     1.2.37 Substitute Taxes. "Substitute Taxes" shall have the meaning set
forth in Section 3.2.1.

     1.2.38 Tenant Affiliate. "Tenant Affiliate" shall mean any corporation,
limited liability company, partnership, trust or other entity (a) at least
fifty-one percent (51%) of the outstanding stock, membership interest,
partnership interest or beneficial interest of which is owned by Tenant, (b)
which owns at least fifty-one (51%) of the outstanding stock, membership
interest, partnership interest or beneficial interest of Tenant, (c) at least
fifty-one (51%) of the outstanding stock, membership interest, partnership
interest or beneficial interest of which is owned by a third corporation,
limited liability company, partnership, trust or other entity which also owns at
least fifty-one (51%) of the outstanding stock, membership interest, partnership
interest or beneficial interest of Tenant or (d) at least fifty-one (51%) of the
outstanding stock, membership interest, partnership interest or beneficial
interest of which is owned collectively by

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                                       -7-

stockholders, members, partners or beneficiaries who also own collectively at
least fifty-one (51%) of the outstanding stock, membership interest, partnership
interest or beneficial interest of Tenant.

     1.2.39 Tenant Successor. "Tenant Successor" shall mean any corporation,
limited liability company, partnership, trust or other entity which is the
successor to Tenant by merger, consolidation, non-bankruptcy reorganization or
acquisition of substantially all the assets or stock of Tenant.

     1.2.40 Tenant's First Extension Option. "Tenant's First Extension Option"
shall have the meaning set forth in Section 14.1.

     1.2.41 Tenant's Second Extension Option. "Tenant's Second Extension Option"
shall have the meaning set forth in Section 14.2.

     1.3 Exhibits. The Exhibits listed below in this Section 1.3 are
incorporated in this Lease by reference and are to be construed as a part
hereof:

          EXHIBIT A Legal Description of the Land

                                   ARTICLE II

                               Premises and Term

     2.1 Premises. Landlord hereby leases the Premises to Tenant, and Tenant
hereby leases the Premises from Landlord, subject to and with the benefit of the
terms, covenants, conditions and provisions of this Lease.

     2.2 Term. TO HAVE AND TO HOLD for the Term, beginning on the Term
Commencement Date.

     2.3 Premises Leased "As Is" . Landlord makes no representations or
warranties whatsoever with respect to the Premises. Landlord leases the Premises
to Tenant "as is, where is and with all faults".

     2.4 Delivery. Landlord shall deliver the Premises to Tenant on the Term
Commencement Date, free and clear of all other tenants and occupants, in
substantially the same condition as they are in on the Date of this Lease,
except for reasonable wear and tear and any modifications made or damage caused
by Tenant.

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                                   ARTICLE III

                           Base Rent; Additional Rent

     3.1 Base Rent. Tenant covenants and agrees to pay the Base Rent to Landlord
throughout the Term without offset, notice, demand or deduction, except as
otherwise expressly provided in this Lease, at Landlord's Address or at such
other place or to such other person or entity as Landlord may direct by thirty
(30) days' prior written notice to Tenant from time to time, in the annual
amount for each Lease Year specified in Section 1.1 in monthly installments
specified in Section 1.1, in advance on the first day of each calendar month
during the Term, and for any partial month at the beginning or the end of the
Term, the pro-rata portion of such monthly amount allocable thereto. This Lease
shall be construed as though Landlord's covenants contained herein are
independent and not dependent of Tenant's obligations hereunder, and Tenant
hereby waives the benefit of any law or statute to the contrary.

     3.2 Additional Rent. Tenant covenants and agrees to pay as Additional Rent,
without offset or deduction, except as otherwise expressly provided in this
Lease, Real Estate Taxes, Operating Expenses and utility charges with respect to
the Premises as follows:

     3.2.1 Real Estate Taxes. Tenant shall pay all Real Estate Taxes assessed,
levied or imposed on or with respect to the Premises during and with respect to
the Term. For each tax or assessment period, or installment period thereof,
wholly included in the Term, Tenant shall pay such Real Estate Taxes directly to
the authority or authorities charged with the collection thereto not less than
ten (10) days prior to the last date on which the same may be paid without
interest or penalty. For any fraction of a tax or assessment period, or
installment period thereof, included in the Term at the end thereof, Tenant
shall pay to Landlord, within ten (10) days after receipt of an invoice
therefor, the fraction of the Real Estate Taxes so levied or assessed or
becoming payable which is allocable to such included period. Tenant shall
promptly after payment thereof furnish Landlord proof of payment of all items
which Tenant is required to pay pursuant to this Section 3.2.1.

     If Tenant shall deem itself aggrieved by any such Real Estate Taxes and
shall elect to contest the payment thereof, Tenant may make such payment under
protest or if postponement of such payment does not jeopardize Landlord's title
to the Premises, Tenant may postpone the same, provided that in all events it
shall secure such payment and any potential interest and penalties thereon by
causing to be delivered to Landlord cash or other adequate security in form and
amount reasonably satisfactory to Landlord. Provided that Tenant has given prior
written notice to Landlord, and provided that there is then no outstanding Event
of Default, Tenant may file an application for abatement of real or personal
property taxes in its own name or in the name of Landlord. If Tenant files an
abatement application, Tenant shall (i) promptly provide a copy thereof to
Landlord, (ii) diligently pursue such application, (iii) keep Landlord informed
of the status thereof in writing, (iv) with respect to claims relating to a tax
year which falls entirely or partially within the last three Lease Years of the
Term, not settle such claim without the prior written approval of Landlord
(which shall not be unreasonably withheld or delayed), and (v) not dismiss such
claim (other than in connection with a settlement which must first be approved
by Landlord where required under the preceding clause) without first giving
Landlord at least thirty (30) days' prior written notice and opportunity to
assume the prosecution of such claim. Landlord shall reasonably cooperate with
Tenant in seeking such abatement. Any abatement

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received shall be paid and distributed first to Tenant in the amount of the
reasonable costs and expenses expended by Tenant to obtain such abatement, and
the remainder to each Party in the proportion that it paid the Real Estate Taxes
which were abated.

     Nothing contained in this Lease shall require Tenant to pay any income,
franchise, corporate, estate, inheritance, succession, capital levy or transfer
tax of Landlord, unless such tax is imposed, levied or assessed in substitution
for any Real Estate Taxes which Tenant is otherwise required to pay pursuant to
this Section 3.2.1.

     3.2.2 Tax Fund Payments. If there shall occur an Event of Default, then
Landlord may, in its sole discretion, at any time after the occurrence of such
Event of Default, elect rather than have Tenant pay Real Estate Taxes directly
to the applicable authorities to do so itself and have Tenant make Tenant's
payments for Real Estate Taxes to Landlord instead. Tenant shall also be
required to make such payments to Landlord to the extent required by any
Mortgagee of the Premises. Landlord may make such election by written notice
thereof to Tenant. Commencing on the date that is thirty (30) days after receipt
by Tenant of such notice, Tenant shall make monthly payments to Landlord in such
amounts as Landlord shall from time to time reasonably determine and direct to
be sufficient to provide in the aggregate a fund adequate to pay all Real Estate
Taxes when they become due and payable ("Real Estate Tax Fund Payments" or "Tax
Fund Payments"). If the aggregate of such Tax Fund Payments is not adequate to
pay all such Real Estate Taxes, then Tenant shall pay to Landlord the amount by
which such aggregate is less than the amount of all such Real Estate Taxes, such
payment to be made on or before the later of (a) twenty (20) days after receipt
by Tenant of notice from Landlord of such amount, or (b) the 30th day prior to
the last day on which such Real Estate Taxes may be paid without interest or
penalty. If Tenant shall have made the aforesaid Tax Fund Payments, then
Landlord shall pay such Real Estate Taxes to the proper authority charged with
the collection thereof, up to the amount of such Tax Fund Payments, and furnish
Tenant, upon request, reasonable evidence of such payment. Any balance remaining
after such payment by Landlord shall be accounted for to Tenant annually. Tenant
shall continue to make Tax Fund Payments to Landlord until Landlord at its
election terminates the requirement for such payments. If at any time Landlord
so terminates the requirement for Tax Fund Payments, then Tenant still resume
paying Real Estate Taxes directly to the applicable authorities as required by
Section 3.2.1.

     3.2.3 Personal Property Taxes. Tenant shall pay all taxes assessed against
Tenant s personal property on or about the Premises directly to the authorities
charged with the collection thereof before or on the dates due from time to
time.

     3.2.4 Operating Expenses. Tenant shall pay to Landlord, as Additional Rent,
an amount equal to the Operating Expenses (as defined in Section 1.2.22)
incurred by Landlord with respect to each Operating Year, such amount to be
apportioned for any portion of an Operating Year in which the Term Commencement
Date falls or the Term of this Lease ends. Estimated payments by Tenant on
account of Operating Expenses shall be made on the first day of each and every
calendar month during the Term of this Lease, in the fashion herein provided for
the payment of Base Rent. The monthly amount so to be paid to Landlord shall be
sufficient to provide Landlord by the end of each Operating Year a sum equal to
Tenant s required payment, as reasonably estimated by Landlord from time to time
during each Operating Year, on account of Operating Expenses for such Operating
Year. After the end of each Operating Year, Landlord shall submit to Tenant a
reasonably detailed accounting of Operating Expenses for such

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Operating Year. If estimated payments theretofore made for such Operating Year
by Tenant exceed Tenant's required payment on account thereof for such Operating
Year according to such statement, Landlord shall credit the amount of
overpayment against subsequent obligations of Tenant with respect to Operating
Expenses (or promptly refund such overpayment if the Term of this Lease has
ended and Tenant has no further obligation to Landlord); but if the required
payments on account thereof for such Operating Year are greater than the
estimated payments (if any) theretofore made on account thereof for such
Operating Year, Tenant shall make payment to Landlord within thirty (30) days
after being so advised by Landlord, and the obligation to make such payment for
any period within the Term shall survive expiration of the Term.

     3.2.5 Tenant's Insurance Costs. Tenant shall further pay all premiums and
other costs of the insurance which it is required to carry pursuant to Article
VII directly to the applicable insurers before or on the dates due from time to
time.

     3.2.6 Utilities. Tenant shall pay directly to the proper authorities
charged with the collection thereof all charges for water, sewer, gas,
electricity, telephone and other utilities or services used or consumed on the
Premises, whether called charge, tax, assessment, fee or otherwise, including,
without limitation, water and sewer use charges and taxes, if any. Tenant shall
pay such charges before or on the dates due from time to time.

     3.3 Late Payment of Rent. If Tenant fails to make any payment of Rent on
the date such payment is due, then Tenant shall pay Landlord interest on such
payment from the date due until the date paid at the Late Payment/Default
Interest Rate, provided that such interest shall not be due the first time any
such payment is late in any twelve (12) month period unless such payment has
been late for more than ten (10) days. In addition, Tenant shall pay Landlord a
late charge for any Rent payment which is not paid within ten (10) days after
its due date equal to two (2) percent of such payment.

     3.4 Cost of Tenant's Obligations. Tenant shall bear the entire cost and
expense of fulfilling and performing all of its obligations under this Lease.

                                   ARTICLE IV

       Use; Repairs and Maintenance; Compliance with Applicable Laws, etc.

     4.1 Use. Tenant shall use the Premises only for the Permitted Uses and not
for any other purpose.

     4.2 Repair and Maintenance.

     (a) Subject to Landlord s obligations set forth in Section 4.2(b) below,
Tenant shall throughout the Term keep and maintain the Premises, including,
without limitation, (i) elevators, boilers, the plumbing, sprinkler, electrical
and mechanical lines and equipment associated therewith, each to the extent
located within the Building; (ii) utility and trunk lines, tanks and
transformers, each to the extent located within the Building, (iii) improvements
to the Land outside of the Building, including ditches, shrubbery, landscaping
and fencing; and (iv) the parking areas and access ways located on the Land, in
at least as good order, condition and repair

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                                      -11-

as they are in on the Term Commencement Date or may be put during the Term,
excepting only (x) reasonable wear and tear, (y) damage by fire or other
casualty or taking by condemnation or eminent domain which shall instead be
governed by Articles VIII and IX, and (z) damage caused by Landlord or Parties
for Which Landlord is Responsible. Tenant shall obtain and maintain at all times
during the Term of this Lease a maintenance contract with a responsible,
licensed HVAC contractor, on terms reasonably acceptable to Landlord, for the
regular maintenance of all heating, air conditioning and ventilating equipment
serving the Building, and shall be responsible for the performance of all
maintenance to be performed thereunder. Tenant shall keep accurate and complete
records of the performance of all scheduled maintenance under such contract and
shall provide copies thereof to Landlord from time to time upon request by
Landlord. Tenant shall promptly make all repairs and replacements and do all
other work necessary to accomplish the foregoing, at Tenant's sole cost and
expense. In the event that the provisions of this Lease, including, without
limitation the requirements of this Section 4.2(a), shall require that Tenant
perform a capital replacement of any Building system serving the Building,
notwithstanding the foregoing provisions of this Section 4.2(a), upon written
request from Tenant, Landlord and not Tenant shall cause such replacement to be
performed, and the amortized costs incurred by Landlord with respect to such
capital replacement shall constitute an Operating Expense and shall be
reimbursed by Tenant in accordance with the provisions of 3.2.4 above.

     (b) Subject to Tenant's obligations set forth in Section 4.2(a) above,
Landlord shall maintain, repair and replace, as necessary, and keep in good
order, safe and clean condition, the bearing walls, roof, exterior walls,
support beams and columns, foundation, window frames and floor slabs of the
Building (collectively, the "Structure" ) as well as any portion of the
following systems, to the extent located outside of the Building but on the
Premises: plumbing, sprinkler, electrical and mechanical lines and equipment
associated therewith and utility and trunk lines, tanks and transformers, except
that Landlord shall in no event be responsible to Tenant for the repair of any
condition on the Premises caused by any act or neglect of Tenant or Parties for
Which Tenant is Responsible.

     (c) Notwithstanding the foregoing, Tenant shall determine in Tenant's
commercially reasonable discretion when a replacement is needed, whereupon
Tenant shall notify Landlord that such replacement is needed, and Landlord shall
cause such replacement to be performed pursuant to this Section 4.2.

     4.3 Compliance with Applicable Laws. Tenant shall at all times during the
Term strictly and promptly comply with all Applicable Laws with respect to the
Premises and Tenant's use and occupancy thereof. Without limiting the generality
of the foregoing, Tenant shall (a) obtain all Necessary Permits for the
Permitted Uses and Tenant's occupancy of the Premises before commencing such
uses and occupancy and maintain such permits in force and effect while
continuing such use and occupancy, (b) obtain all Necessary Permits for any
Alterations and Improvements which Tenant may make to the Premises from time to
time pursuant to Article V before commencing any such work, and (c) install and
maintain all safety equipment required in and on the Premises from time to time
by all Applicable Laws as a result of Tenant's use and occupancy of the
Premises, provided that if a change in Applicable Laws shall occur subsequent to
the date of this Lease, which change in Applicable Laws is generally applicable
to all office buildings similar to the Building, and if as a result of such
change certain safety equipment must be installed in the Building that would
constitute a capital expense under Section

<PAGE>

                                      -12-

1.2.22, Landlord shall be responsible to perform such installation under Section
4.2(b) above, and the costs thereof shall constitute an Operating Expense under
Section 3.2.4.

     4.4 No Nuisance; Prohibited Uses. Tenant shall not injure, overload, deface
or otherwise harm the Premises; nor overload, impair or interfere with the
heating, ventilating, air conditioning, hot water, plumbing, electrical, gas,
elevator, mechanical, security, alarm or other systems in the Premises; nor
commit any nuisance on, in, from or about the Premises; nor emit or permit the
emission of any objectionable noise, vibration, odor, smoke or vapor from the
Premises; nor conduct or allow any illegal, illicit or immoral activities on the
Premises; nor make, allow or suffer any waste of the Premises; nor make any use
of the Premises which is contrary to Applicable Laws or which will invalidate
any of Landlord's or Tenant's insurance; nor conduct any auction, fire, "going
out of business" or bankruptcy sales on the Premises.

     4.5 Rubbish Removal, Etc. Tenant shall have all trash, refuse, and garbage
removed from the Premises at frequent intervals by a qualified removal
contractor. Tenant shall keep all trash, refuse and garbage in suitable covered
and secured containers. In no event shall Tenant allow large amounts of trash,
refuse and garbage to accumulate. Tenant shall take reasonable precautions to
prevent insect, vermin and pest infestation of the Premises, and shall promptly
have insects, vermin and pests exterminated by a qualified extermination
contractor should any infestation occur.

     4.6 Safety and Security. Tenant shall at all times maintain safety and
provide adequate security at the Premises and with respect to the conduct of its
business therein by, without limitation, (a) installing, utilizing, operating
and maintaining appropriate locks and safety, security, fire suppression and
alarm systems and equipment, (b) establishing appropriate and adequate safety
and security procedures, training its employees in such procedures and causing
such employees to follow them, and (c) if necessary, employing adequately
trained security guards, personnel or services.

     4.7 Hazardous Substances. Tenant shall not bring, generate, store, use,
install, dispose of, spill, release, emit or discharge any Hazardous Substances
on, in or from the Premises, nor suffer, permit or allow any other Party for
which Tenant Is Responsible to do so, except only for Permitted Incidental
Hazardous Substances which are reasonably necessary for the conduct of Tenant's
business in accordance with the Permitted Uses and then only in the amounts
reasonably required in such connection. Tenant shall bring, generate, store, use
and dispose of any such Permitted Incidental Hazardous Substances in strict
compliance with all Environmental Laws, manufacturers' directions and industry
standards. In the event that Tenant or any Parties for Which Tenant Is
Responsible should spill, release, emit, discharge or dispose of any Hazardous
Substances, permitted or otherwise, on, in or from the Premises, Tenant shall
(a) immediately notify Landlord thereof and (b) promptly contain, remediate,
remove and clean up such substances in strict compliance with all Environmental
Laws. Tenant shall indemnify, defend upon demand with counsel reasonably
acceptable to Landlord, and hold Landlord harmless from and against, any
liabilities, losses, claims, damages, interest, penalties, fines, attorneys'
fees, experts' fees, court costs, remediation costs, and other expenses which
result from any the use, storage, handling, treatment, transportation, release
or disposal of Hazardous Substances in or about the Premises by Tenant or
Tenant's agents, employees or contractors, as well as any violation of the
Environmental Laws by Tenant or it's agents, employees or contractors. Tenant
shall promptly give written notice to Landlord of (i) any communication

<PAGE>

                                      -13-

received by or from any governmental authority concerning Hazardous Substances
which relates to the Premises, and (ii) any "disposal," "release" or "threat of
release," as defined in Environmental Laws, of Hazardous Substances on, to,
from, under or about the Building or Premises, including without limitation the
presence of any substances in an amount or concentration that gives rise to a
duty or obligation under any Environmental Law. During the Term of this Lease,
Tenant shall provide Landlord with all notices or filings that Tenant is
required to provide to or file with any governmental authority in connection
with any Hazardous Substances that is being used by Tenant in the Premises. Such
notices or filings shall be provided to Landlord simultaneously with delivery to
the applicable governmental authority (and in any event prior to the date such
notices are required to be filed). Upon execution of this Lease, Tenant shall
provide to Landlord such notices and filings for the Hazardous Substances it is
then using in connection with its business.

     4.8 Utilities. Tenant shall make its own arrangements for water, sewer,
gas, electricity, telephone and all other utilities necessary to operate the
Premises and to conduct the Permitted Uses therein.

     4.9 Signs. Tenant may, from time to time during the Term, at its own cost
and expense, install identification signage on the Premises. The character,
location, design, size, materials, shape, form, graphics and lighting shall be
subject to Landlord's prior review and approval, which shall not be unreasonably
withheld, and all Applicable Laws. Tenant shall be responsible for obtaining, at
its sole cost and expense, all permits and approvals required by Applicable
Laws. Tenant's installation work shall be subject to all of the applicable terms
and conditions of this Lease regarding Alterations, and Tenant hereby covenants
and agrees to maintain such exterior signage in good condition, consistent with
the first class quality of the Building, and Tenant shall remove such signage
from the Premises, and repair any damage caused thereby, upon the expiration or
earlier termination of this Lease. Tenant's rights under this Section 4.9 shall
not be assignable or transferable other than by the assignment of this Lease.

     4.10 Tenant Responsible for all Services, Etc. Except only for repair and
restoration of the Premises after a fire or other casualty or taking of the
Premises by condemnation or eminent domain pursuant to Articles VIII and IX or
as otherwise specifically provided to the contrary in this Lease, including,
without limitation, as provided in Section 4.2(b), Landlord shall not be
obligated to maintain or repair the Premises, to provide water, sewer, gas,
electricity, telephone or any other utilities to the Premises, to heat, air
condition or ventilate the Premises, to remove trash, refuse and garbage from
the Premises, to provide janitorial or security services to the Premises, to
make the Premises comply with Applicable Laws or to provide any services,
perform any functions or do any work whatsoever with respect to the Premises.
Rather, all such services, functions and work shall be Tenant's responsibility,
as provided in this Article IV and the other provisions, terms and conditions
hereof.

     4.11 Landlord's Right to Enter. Tenant shall permit Landlord and its agents
to enter the Premises at reasonable times after reasonable prior notice to
Tenant, except in case of emergency (a) to make such repairs and replacements as
Landlord is obligated to do so under this Lease, (b) to repair and restore the
Premises after a fire or other casualty or taking of the Premises by
condemnation or eminent domain pursuant to Articles VIII and IX, (c) to cure any
defaults by Tenant pursuant to Section 11.3, again without any obligation to do
so, and (d) to

<PAGE>

                                      -14-

show the Premises to prospective purchasers and lenders. Tenant shall further
permit Landlord and its agents during the last eighteen (18) months of the Term
to show the Premises to prospective tenants and, during the last six (6) months
of the Term, to affix and maintain notices of availability in suitable places in
and on the Premises. In exercising its rights under this Section 4.11, Landlord
shall use all reasonable efforts not to disturb Tenant's use and occupancy of
the Premises.

                                    ARTICLE V

                          Alterations and Improvements

     5.1 Permitted Without Landlord's Approval. Tenant may place and replace its
trade fixtures, tools, machinery, furniture, floor coverings, equipment and
other tangible personal property in the Premises and may make Minor Alterations
as it may desire at its own expense without Landlord's approval or consent, but
with prior written notice to Landlord. Any such Minor Alterations shall be
performed in compliance with all of the terms and conditions of this Lease. As
used herein, "Minor Alterations" shall mean Alterations and Improvements which
(i) are non-structural in nature; (ii) shall not affect the exterior or the
Structure of the Building; (iii) shall not be visible from the outside of the
Building; (iv) shall not affect the proper functioning of any of the Building
systems (including, without limitation, the heating, ventilation, air
conditioning, plumbing, electrical, fire, health and life safety, sprinkler or
security systems serving the Building; (v) shall not jeopardize health, safety
or life safety; (vi) shall not require a change to the certificate of occupancy
for the Building or Project due to an intended change in use of all or any
portion of the Premises as a result of such proposed Alterations and
Improvements; (vii) shall not cause the Building or the Project to be in
violation of any Applicable Laws, and (viii) costs less than $100,000 to
perform.

     5.2 Landlord s Approval. Except for Minor Alterations, Tenant may make
Alterations and Improvements to the Premises subject to receipt of Landlord's
approval, which approval shall not be unreasonably withheld, conditioned or
delayed, provided that Tenant shall comply with all of the terms and conditions
of this Article V. If Tenant desires to perform Alterations and Improvements,
then Tenant shall make a request for Landlord s approval by submitting to
Landlord a list of proposed contractors and the plans and specifications for the
work to be performed. Landlord shall respond within ten (10) business days from
receipt of the same, approving those contractors and those portions of the work
that are acceptable and disapproving those contractors and portions of the work
that are, in Landlord's judgment reasonably exercised, unacceptable and
specifying in reasonable detail the nature of Landlord's objection. If Landlord
expresses its disapproval, Tenant shall submit modifications which are intended
to satisfy Landlord's concerns and Landlord shall respond within five (5)
business days from receipt of the same. This process shall continue until the
parties have reached agreement. Any approval by Landlord permitting Tenant to do
any or cause any Alterations and Improvements to be performed in or about the
Premises or the Building shall be and hereby is conditioned upon Tenant's work
being performed by workmen and mechanics working in harmony and not interfering
with labor employed by Landlord, Landlord's mechanics or their contractors. If
at any time any of the workmen or mechanics performing any Alterations and
Improvements shall be unable to work in harmony or shall interfere with any
labor employed by Landlord or its respective mechanics and contractors, then the
permission granted by Landlord to

<PAGE>

                                      -15-

Tenant permitting Tenant to do or cause such Alterations and Improvements to be
done in or about the Premises or the Building, may be withdrawn by Landlord upon
forty-eight (48) hours written notice to Tenant.

     5.3 Necessary Permits. Tenant shall obtain all Necessary Permits for any
Alterations and Improvements under all Applicable Laws.

     5.4 Insurance. In connection with all Alterations and Improvements, Tenant
shall obtain, or cause its general contractor and subcontractors to obtain, as
applicable, the insurance specified in Section 7.3.5 and provide Landlord with
certificates thereof. Tenant shall maintain, or cause such contractors to
maintain, said insurance throughout the course of construction.

     5.5 Construction. Tenant shall construct all Alterations and Improvements
in substantial compliance with the plans and specifications approved by Landlord
(if such approval is required as provided above in this Article), the Necessary
Permits received and all Applicable Laws. All work shall be done in a good and
workmanlike manner. Tenant shall provide Landlord with as-built plans of such
Alterations and Improvements within thirty (30) days after completion thereof.

     5.6 Payment of Costs; Discharge of Liens; Initial Improvements Allowance.

     (a) Tenant shall pay promptly when due the entire cost of constructing the
Alterations and Improvements so that the Premises shall at all times be free of
any liens for labor and materials. If any such lien should be recorded or should
otherwise attach against the Premises, then Tenant shall discharge or bond such
lien within twenty (20) days after Tenant's receipt of written notice of such
lien.

     (b) Landlord acknowledges that Tenant intends to perform certain initial
Alterations and Improvements in the Premises within the first twelve (12) months
of the Term, including, without limitation, renovations and improvements to the
energy management system, sky light, walkways, bathrooms (12) and upgrades to
the landscaping (the "Initial Improvements"). Landlord hereby approves such
Initial Improvements, subject to Tenant's compliance with the other terms and
conditions of this Article 5, including, without limitation the requirements of
Section 5.2 above. Notwithstanding anything to the contrary contained herein,
Landlord shall reimburse Tenant for the hard and soft costs incurred with
respect to the Initial Improvements, up to the amount of the Initial
Improvements Allowance. Tenant shall be entirely responsible for any excess. The
Initial Improvements Allowance shall be payable by Landlord to Tenant upon
written requisition to Landlord as provided herein. In any case, prior to
payment of any such installment, Tenant shall deliver to Landlord a written
request, which request shall be given no more frequently than once every thirty
(30) days, for such disbursement, which shall be accompanied by: (i) invoices
for the Initial Improvements covered by such requisition; (ii) copies of partial
lien waivers, or the final lien waiver if then applicable, in form complying
with the requirements of M.G.L. c.254, s.32; and (iii) a certificate signed by
the Tenant's architect certifying that the Initial Improvements represented by
the aforementioned invoices have been completed substantially in accordance with
the approved plans, and, with respect to a final installment, as-built plans
and, if required for the Initial Improvements under Applicable Law, the final
certificate of occupancy. Landlord shall pay each required installment within
thirty (30) days of receiving the materials enumerated in the previous sentence.
Each installment by

<PAGE>

                                      -16-

Landlord will be in the amount of such requisition, but in no event shall
Landlord be required to pay more than the Initial Improvements Allowance. In the
event that any amounts of the Initial Improvements Allowance shall remain upon
the expiration of the first Lease Year, such remaining amount shall be applied
to the installments of Base Rent next due under this Lease.

     5.7 Ownership. All Alterations and Improvements constructed by Tenant shall
be deemed part of the Premises and shall be the property of Landlord, subject to
Tenant's rights of use and occupancy pursuant to this Lease, unless Landlord
provides written notice to Tenant promptly after Tenant notifies Landlord of its
intent to perform such Alterations and Improvement to remove same at the
expiration of this Lease, in which event Tenant shall promptly remove such
Alterations and Improvements and restore the Premises or the Building, as
applicable, to good order and condition prior to the expiration or earlier
termination of the Term of this Lease.

     5.8 Required Septic Improvements.

     (a) The parties acknowledge that, as indicated in that certain "Title 5
Inspection of Subsurface Wastewater Disposal Systems, Dynamics Research
Corporation, 60 Frontage Road, Andover, MA 01810", dated December, 2005, and the
accompanying letter regarding Wastewater Disposal Options, dated December 14,
2005, from Ellis G. Neofotistos of Neofotistos, McRae & Associates, Inc. to Mr.
Steve Saccardo of Dynamics Research Corporation (collectively, the "Wastewater
Report"), the Premises is served by two wastewater disposal systems (hereinafter
the "North System" and the "South System" and collectively, the "Systems" ) that
will require replacement in the near future. Therefore, notwithstanding anything
to the contrary contained in this Lease, the parties have agreed that Tenant
shall, immediately following the Commencement Date for a period of up to six
months (the "Study Period"), commence and diligently pursue the feasibility and
likelihood of connecting the Premises to the municipal sewer system by the end
of the second Lease Year in accordance with the recommendations contained in the
Wastewater Report. If for any reason during the Study Period Landlord and Tenant
do not reasonably agree that: (1) they can secure the necessary approvals from
the municipal authorities to install and maintain such sewer connections; and
(2) the cost to connect to the municipal sewer system is equal to or less than
the Letter of Credit Amount (as defined below); and (3) that the sewer
connections can be achieved prior to the failure of either the North System or
the South System, then Tenant shall, on or before the end of the second Lease
Year, replace the South System and, on or before the end of the third Lease
Year, replace the North System, in each case in accordance with a design
approved by Landlord and otherwise subject to and in accordance with the
provisions of this Section 5.8. Without limiting the foregoing, in the event
that the parties shall attempt to obtain the permits and approvals for the sewer
connection and are unsuccessful in obtaining them, Tenant shall have eighteen
(18) months following a final decision of the applicable municipal authority to
replace the Systems as aforesaid. The work necessary to connect the Premises to
a municipal sewer system, or to replace the existing Systems, is hereinafter
referred to as the "Wastewater Improvements Work".

     (b) The Wastewater Improvements Work shall constitute an Alteration and
Improvement under this Lease and Tenant shall comply with all of the terms and
conditions of this Lease with respect to such Wastewater Improvements Work,
including, without limitation

<PAGE>

                                      -17-

the requirements of this Article V. Without limiting the foregoing, prior to
commencing the Wastewater Improvements Work, Tenant shall submit to Landlord a
list of proposed contractors and the plans and specifications (the "Plans") for
Landlord's approval, (once approved, the "Approved Plans"). The Plans shall be
stamped by a Massachusetts-registered engineer selected by Landlord in its sole
discretion (the "Approved Engineer"), and shall comply with all Applicable Laws
and the recommendations of the Wastewater Report. The Wastewater Improvements
Work shall be diligently performed in accordance with the Approved Plans and all
Applicable Laws by contractors and subcontractors approved by Landlord, under a
written construction contract in form and substance acceptable to Landlord. The
approval by Landlord of Tenant's contractors or subcontractors shall not impose
upon Landlord any responsibility or liability whatsoever to Tenant as a result
of, or arising out of, the defaults or other acts or omissions of such
contractors. Tenant hereby acknowledges that the Wastewater Improvements Work
will involve substantial disturbance to the Land and to the normal use and
operation of the Premises by Tenant. Landlord shall have no liability to Tenant,
nor shall Tenant be entitled to any diminution of rental value, nor shall this
Lease or any obligations of Tenant hereunder be affected or reduced as a result
of any claimed interference with the conduct of Tenant's business during the
performance of the Wastewater Improvements Work.

     (c) Tenant shall not be deemed to have completed the Wastewater
Improvements Work unless and until Tenant shall have delivered a certificate
from the Approved Engineer that the Wastewater Improvements Work has been
completed in accordance with the Plans, accompanied by copies of all applicable
permits and approvals demonstrating that the Systems, or the replacement
connections to the municipal sewer systems are fully operational in accordance
with all Applicable Laws and the requirements of the Wastewater Report and are
otherwise acceptable to Landlord (such date that Tenant has completed the
Wastewater Improvements Work is hereinafter referred to as the "Wastewater
Improvements Work Completion Date"). The provisions of Section 13.5 shall not
apply to Tenant's obligations under this Section 5.8.

     (d) Tenant shall be responsible for all hard and soft costs and expenses
with respect to the Wastewater Improvements Work, including, without limitation,
all costs and expenses for design and engineering, permitting, and construction
of the Systems in compliance with the design approved by Landlord, the Approved
Plans and all Applicable Laws and all necessary legal and consultant fees and
expenses. In order to secure Tenant's obligations under this Section 5.8, Tenant
shall deliver to Landlord simultaneously with the execution and delivery by
Tenant of this Lease, as collateral for the full performance by Tenant of all of
its obligations under this Section 5.8 and for losses and damages Landlord may
suffer as a result of any default hereunder, a standby, unconditional,
irrevocable, transferable letter of credit (the "Letter of Credit") in the form
of Exhibit B attached hereto and containing the terms required herein, in the
face amount of $1,031,250.00 (the "Letter of Credit Amount"), naming Landlord as
beneficiary, issued by a bank acceptable to Landlord in its sole discretion (it
being agreed that Brown Brothers Harriman is acceptable to Landlord), permitting
multiple and partial draws thereon, transferable by Landlord without additional
cost to Landlord. Tenant shall cause the Letter of Credit to be continuously
maintained in effect (whether through replacement, renewal or extension) through
the date (the "Final LC Expiration Date") that is forty five (45) days after the
Wastewater Improvements Work Completion Date. Notwithstanding the foregoing,
upon completion of the Wastewater Improvements Work with respect to the South
System in

<PAGE>

                                      -18-

accordance with the requirements of this Section 5.8, the Letter of Credit
Amount may be reduced to an amount equal to one hundred twenty-five percent
(125%) of the estimated remaining costs and expenditures related for the
Wastewater Improvement Work with respect to the North System. If the Letter of
Credit held by Landlord expires earlier than the Final LC Expiration Date
(whether by reason of a stated expiration date or a notice of termination or
non-renewal given by the issuing bank), then Tenant shall deliver a new Letter
of Credit or certificate of renewal or extension to Landlord not later than 30
days prior to the expiration date of the Letter of Credit then held by Landlord.
Any renewal or replacement Letter of Credit shall comply with all of the
provisions of this Section 5.8. Landlord shall have the right to draw upon the
Letter of Credit, in whole or in part, at any time and from time to time if (i)
Tenant shall default in its obligations under this Section 5.8, or (ii) the
Letter of Credit held by Landlord expires earlier than the Final LC Expiration
Date (whether by reason of a stated expiration date or a notice of termination
or non-renewal given by the issuing bank), and Tenant fails to deliver to
Landlord, at least 30 days prior to the expiration date of the Letter of Credit
then held by Landlord, a renewal or substitute Letter of Credit that is in
effect and that complies with the provisions of this Section 5.8. The proceeds
of the Letter of Credit may be applied by Landlord against any costs or expenses
incurred by Landlord in respect of a default of Tenant under this Section 5.8,
including, without limitation costs incurred by Landlord in performing the
Wastewater Improvements Work, and/or to pay for all losses and damages that
Landlord has suffered or that Landlord reasonably estimates that it will suffer
as a result of any default by Tenant under this Section 5.8. Any unused proceeds
shall constitute the property of Landlord and need not be segregated from
Landlord's other assets. Notwithstanding the foregoing, provided Tenant has
performed all of its obligations under this Section 5.8, Landlord agrees to pay
to Tenant within forty five (45) days after the Final LC Expiration Date the
amount of any proceeds of the Letter of Credit received by Landlord and not
applied against any obligations of Tenant under this Section 5.8. The Letter of
Credit Amount shall not be deemed to liquidate or limit Tenant's obligations
under this Section 5.8, and Tenant shall at all times remain fully and primarily
liable for all obligations under this Section 5.8 with respect to the Systems
and the Wastewater Improvements Work, including, without limitation, costs
incurred by Landlord to complete the Wastewater Improvements Work above and
beyond the proceeds from the Letter of Credit.

     (e) The obligations of Tenant under this Section 5.8 shall survive the
termination of this Lease.

                                   ARTICLE VI

                            Assignment and Subletting

     6.1 Assignments and Subleasings Generally. Except for Permitted Assignments
and Subleasings to Tenant Affiliates or Tenant Successors pursuant to Section
6.2, Tenant shall not assign, transfer, mortgage or pledge this Lease or grant a
security interest in Tenant's rights hereunder, or sublease all of any part of
the Premises, or suffer or permit this Lease or the leasehold interest created
hereby to be assigned, transferred or encumbered, in whole or in part, whether
voluntarily, involuntarily or by operation of law, without in each instance
obtaining Landlord's written consent thereto, which consent shall not be
unreasonably withheld, conditioned or delayed provided that the following
conditions are met: (a) there does not then

<PAGE>

                                      -19-

exist an Event of Default, (b) any proposed assignee has the reasonable
financial capability, in the case of an assignee, to perform Tenant's
obligations hereunder, (c) the assignment instrument or subject sublease is
reasonably satisfactory to Landlord in form and substance, (d) the proposed use
of the sublease premises for other than general office use is acceptable to
Landlord in its reasonable discretion, (e) there shall be no more than three (3)
subleases in effect at any one time. Tenant shall reimburse Landlord on demand,
as Additional Rent, for any out-of-pocket costs (including reasonable attorneys'
fees and expenses) incurred by Landlord in connection with any actual or
proposed assignment or sublease or other act described above, whether or not
consummated, including the costs of making investigations as to the
acceptability of the proposed assignee or subtenant, which costs and expenses
shall in no event exceed $1,500.00.

     6.2 Permitted Assignments and Subleasings to Tenant Affiliates and Tenant
Successors. Tenant may from time to time assign this Lease or sublease all or
any part of the Premises to a Tenant Affiliate or Tenant Successor without
having to obtain Landlord's consent (such an assignment or subleasing, a
"Permitted Assignment or Subleasing to a Tenant Affiliate or Tenant Successor"),
provided and on condition that, with respect to an assignment to a Tenant
Affiliate or Tenant Successor, (a) such entity has a net worth, computed in
accordance with generally accepted accounting principles consistently applied,
at least equal to the greater of (1) the net worth of Tenant immediately prior
to such transfer, or (2) the net worth of Tenant herein named on the date of
this Lease, (b) proof satisfactory to Landlord of such net worth shall have been
delivered to Landlord at least ten (10) days prior to the effective date of any
such transaction, and (c) the assignee agrees directly with Landlord, by written
instrument in form satisfactory to Landlord in its reasonable discretion, to be
bound by all the obligations of Tenant hereunder, including, without limitation,
the covenant against further assignment and subletting, except in accordance
with the provisions.

     6.3 Information. Tenant shall for each proposed assignment or subleasing,
including any Permitted Assignment or Subleasing to a Tenant Affiliate or Tenant
Successor (except as otherwise expressly provided in this Section 6.3), provide
Landlord with the (a) name and address of the proposed assignee or subtenant,
(b) copies of all assignment or sublease instruments, and (c) financial
statements for the proposed assignee or subtenant for the last two (2) years or
so many of them for which such statements are available, and if not available,
reasonable alternative financial information which accurately presents the
financial condition of the proposed assignee or subtenant, provided that the
requirements of this clause (c) shall not apply to a sublease to a Tenant
Affiliate.

     6.4 Transfer in Violation Void; Tenant's Liability Continues. Any attempted
assignment, transfer, mortgage, pledge, grant of security interest, sublease or
other encumbrance, except as permitted by this Article VI, shall be void. No
assignment, transfer, mortgage, grant of security interest, sublease or other
encumbrance, whether or not approved, and no indulgence granted by Landlord to
any assignee, sublease or occupant shall in any way impair Tenant's continuing
primary liability hereunder, which after an assignment or subletting shall be
joint and several with the assignee or sublessee. No consent by Landlord to any
particular assignment, transfer, mortgage, pledge, grant of a security interest,
sublease or encumbrance shall be construed as a consent to any other assignment,
transfer, mortgage, pledge, grant of a security interest, sublease or
encumbrance, nor as a waiver of Tenant's obligation to obtain Landlord's consent
(if such consent is required under the terms of this Lease) to any other such
transaction in any other instance or case.

<PAGE>

                                      -20-

                                   ARTICLE VII

                             Indemnity and Insurance

     7.1 Indemnity.

     7.1.1 Subject to the provisions of Section 7.5, Tenant agrees to indemnify
and save harmless Landlord and Landlord's partners, members, shareholders,
officers, directors, managers, employees, agents and contractors and any
Mortgagee from and against all claims, losses, cost, damages, liability or
expenses of whatever nature (a) arising from any default by Tenant in the
performance of any covenant or agreement on its part to be performed pursuant to
the provisions of this Lease, which covenant or agreement remains uncured after
expiration of any applicable notice and cure period, so long as Tenant is
diligently and continuously pursuing such cure to completion, or (b) arising
from any accident, injury or damage whatsoever to any person, or to the property
of any person, occurring in or about the Premises, except to the extent Landlord
is required to indemnify Tenant pursuant to Section 7.1.2 below. This indemnity
shall include all court costs, reasonable attorneys' fees, expenses and
liabilities incurred in or in connection with any such claim or any proceeding
brought thereon, and the defense thereof. If any action or proceeding is brought
against Landlord by reason of any such claim, then Tenant agrees to defend the
action or proceeding at its expense upon notice from Landlord.

     7.1.2 Subject to the provisions of Section 7.5, Landlord agrees to
indemnify and save harmless Tenant from and against all claims, losses, cost,
damages, liability or expenses of whatever nature arising from any accident,
injury or damage whatsoever to any person, or to the property of any person,
occurring in or about the Premises, if and to the extent (a) caused by the
negligence or willful misconduct of Landlord or any Parties for Which Landlord
is Responsible, or (b) arising from any default by Landlord in the performance
of any covenant or agreement on its part to be performed pursuant to the
provisions of this Lease, which covenant or agreement remains uncured after
expiration of any applicable notice and cure period, so long as Landlord is
diligently and continuously pursuing such cure to completion. This indemnity
shall include all court costs, reasonable attorneys, fees, expenses and
liabilities incurred in or in connection with any such claim or any proceeding
brought thereon, and the defense thereof. If any action or proceeding is brought
against Tenant by reason of any such claim, then Landlord agrees to defend the
action or proceeding at its expense upon notice from Tenant.

     7.2 Use and Occupancy at Tenant's Risk. Tenant's use and occupancy of the
Premises, and that of any Party for Which Tenant Is Responsible, and all
Tenant's furnishings, fixtures, equipment, Alterations and Improvements,
materials, supplies, inventory, effects and property of every kind, nature and
description and those of any Party for Which Tenant Is Responsible which during
the continuance of this Lease or any occupancy of the Premises by Tenant or any
Party for Which Tenant Is Responsible may be on the Premises shall be at
Tenant's and such parties' sole risk and hazard. Landlord shall not be liable to
Tenant or any Party for Which Tenant Is Responsible for injury to or death of
any person or damage to or destruction of any property in, on or about the
Premises, or for any other losses, damages, costs, expenses or liabilities
whatsoever, including, without limitation, where caused by fire, water,
explosion, collapse, the leakage or bursting of water, steam, or other pipes,
any environmental or other condition in, on, of or about the Premises or any
other event, occurrence, condition or

<PAGE>

                                      -21-

cause, except only to the extent caused by the negligence or willful misconduct
of Landlord or any Parties for Which Landlord is Responsible.

     7.3 Insurance to be Carried. Tenant shall take out and maintain throughout
the Term and such further time as Tenant occupies all or any part of the
Premises, the following insurance with respect to the Premises at Tenant's sole
cost and expense:

     7.3.1 Property Insurance. Special form property insurance covering Tenant's
trade fixtures, furnishings, equipment, Alterations and Improvements performed
by Tenant during the Term, materials, supplies, inventory, effects and personal
property in the Premises, in the amount of the replacement cost thereof from
time to time.

     7.3.2 Liability Insurance. Commercial general liability insurance
indemnifying against all claims and demands for any injury to person or property
which may be claimed to have occurred in, on or about the Premises in amounts
which shall, at the beginning of the Term, be at least equal to the limits set
forth for such insurance in Section 1.1, and, from time to time during the Term,
shall be for such higher limits, if any, as are customarily carried in the area
in which the Premises are located on property similar to the Premises and used
for similar purposes, provided that Tenant shall not be obligated to so increase
such insurance unless at least one year has elapsed since the last adjustment
and then only if requested to do so by Landlord.

     7.3.3 Workmen's Compensation Insurance. Workmen's compensation insurance
with statutory limits covering all of Tenant's employees working on the
Premises.

     7.3.4 Employer's Liability Insurance. Employer's liability insurance in
amounts at least equal to the commercial general liability insurance limits set
forth in Section 1.1 or such higher limits as may be applicable for such
insurance under Section 7.3.2.

     7.3.5 Insurance During Construction. At all times during which Tenant
undertakes any Alterations and Improvements, all-risk builder's risk insurance
in such amount necessary to provide full replacement coverage to the Premises as
improved by such Alterations and Improvements.

     7.3.6 Additional Insurance. Such further insurance in such amounts as
Landlord or any Mortgagee may from time to time reasonably require, provided
that (a) such insurance is, when required, customarily carried in the area in
which the Premises are located on property similar to the Premises and used for
similar purposes, and (b) such amounts are, when required, not higher than the
amounts customarily carried in the area in which the Premises are located on
property similar to the Premises and used for similar purposes.

     7.4 General Requirements. All policies required under this Article VII
shall be obtained from responsible companies qualified to do business in the
Commonwealth of Massachusetts and in good standing therein. Tenant shall be
named as the insured and Landlord as an additional insured under all liability
policies. Any Mortgagee of which Landlord gives Tenant notice shall also be
named as an additional insured on such liability policies. Tenant shall furnish
Landlord with original certificates with respect to all policies required under
this Article VII prior to the beginning of the Term and of each renewal policy
at least twenty (20) days prior to the expiration of the policy it renews.
Tenant shall also furnish Landlord with

<PAGE>

                                      -22-

reasonable evidence of the timely payment of all premiums for such policies.
Each policy required to be carried by Tenant hereunder shall be non-cancelable
with respect to Landlord's or such Mortgagee's interest without at least twenty
(20) days' prior written notice thereto. Liability limits may be achieved by
obtaining so-called umbrella policies over the basic coverage with a "per
location" endorsement allocating the required limits of coverage to the
Premises. In the event provision for any such insurance is to be by a blanket
insurance policy, the policy shall allocate a specific amount of coverage to the
Premises, which allocation shall be sufficient in amount to satisfy the
requirements of this Article VII.

     7.5 Waiver of Claims. Landlord and Tenant hereby release the other from any
and all liability or responsibility to the other or anyone claiming through or
under them by way of subrogation or otherwise for any loss or damage to property
caused by fire or any of the extended coverage or supplementary contract
casualties, even if such fire or other casualty shall have been caused by the
fault or negligence of the other Party, or any one for whom such Party may be
responsible; provided, however, that this release shall be applicable in force
and effect only with respect to loss or damage occurring during such time as the
releasor's policies shall contain a clause or endorsement to the effect that any
such release shall not adversely affect or impair said policies or prejudice the
right of the releasor to recover thereunder. Each Party shall request its
insurance carriers to include a waiver of subrogation clause in all insurance
policies which relate to the Premises or use of the Premises so long as such
clause is obtainable without extra cost, or, if extra cost shall be charged
therefor, so long as the other Party pays such entire cost. If extra cost shall
be charged therefor, each Party shall advise the other thereof and of the amount
of the extra cost, and the other Party, at its election, may pay the same, but
shall not be obligated to do so.

     7.6 Property Insurance. Throughout the Term, Landlord shall cause the
Premises to be insured against loss or damage by fire and the perils commonly
covered under the standard extended coverage endorsement to the extent of not
less than the full replacement cost thereof, from time to time excluding all
Alterations and Improvements made by Tenant during the Term.

                                  ARTICLE VIII

                                    Casualty

     8.1 Architect's Opinion. If any portion of the Premises is damaged by fire,
earthquake, flood or other casualty, or by any other cause of any kind or nature
(the "Damaged Property") and the Damaged Property can, in the opinion of
Landlord's architect reasonably exercised, be repaired within three hundred
sixty (360) days from the date of the damage, then Landlord shall proceed
promptly to make such repairs as required by Section 8.3, subject to the
requirements of all Applicable Laws, the availability of insurance proceeds and
the provisions of this Article VIII. This Lease shall not terminate, but Tenant
shall be entitled to a pro rata abatement of Base Rent and Additional Rent
payable during the period commencing on the date of the damage and ending on the
date the and the Premises are delivered to Tenant with the Damaged Property
repaired to the extent required under Section 8.3. The extent of rent abatement
shall be based upon the portion of the Premises rendered untenantable, unfit or
inaccessible for use by Tenant for the purposes stated in this Lease during such
period. When required by this Article VIII, the architect's opinion shall be
delivered to Tenant within sixty (60)

<PAGE>

                                      -23-

days from the date of the damage. The architect's opinion shall be made in good
faith after a thorough investigation of the facts required to make an informed
judgment. The architect shall consider and include as part of its evaluation the
period of time necessary to obtain the required approvals of the municipal
authorities, to order and obtain materials, and to engage contractors.

     8.2  Right to Terminate.

     If (a) in the opinion of Landlord s architect reasonably exercised, damage
to the Damaged Property cannot be repaired within three hundred sixty (360) days
from the date of the damage, or (b) despite Landlord s having carried all of the
insurance required under Section 7.6 hereof, the insurance proceeds available to
Landlord to perform such repair and restoration is insufficient, then Landlord
may terminate this Lease by notice to Landlord within twenty (20) days from the
date on which the architect's opinion is delivered to Tenant. Notwithstanding
the foregoing, in the event that Landlord shall elect to terminate this Lease
solely as a result of the insufficiency of insurance proceeds, Tenant shall have
the option to elect to fund any deficiency required to complete the restoration
required under this Article VIII, by written notice delivered to Landlord within
ten (10) business days after receipt of such termination notice from Landlord.
In the event that Tenant shall so timely elect to fund the remaining amount of
the costs and expenses of restoration, Landlord's termination shall be null and
void, and Landlord shall proceed to restore the Damaged Property as required
hereunder. Tenant shall fund such sums during the construction process within
twenty (20) days after receipt of a requisition from Landlord, and the amount of
any such reimbursement shall be pro rata based on a fraction, the numerator of
which is the total costs and expenses of restoration in excess of the insurance
proceeds available to Landlord, and the denominator of which is the total costs
and expenses of the restoration. In such case, Tenant shall have the right to
offset such sums expended by Tenant from the next due payments of Base Rent due
under this Lease, but not in excess of one year's Base Rent hereunder.

     If (i) in the opinion of Landlord's architect reasonably exercised, damage
to the Damaged Property cannot be repaired within three hundred sixty (360) days
from the date of the damage, or (2) Landlord commences and proceeds with due
diligence but fails to complete the repair of the Damaged Property as required
by Section 8.3 within such three hundred sixty (360) day period, subject to
delays caused by Tenant or as a result of force majeure, then Tenant may
terminate this Lease as follows: for the reason stated in subparagraph (i), by
notice to Landlord within twenty (20) days from the date on which the
architect's opinion is delivered to Tenant; and (ii) for the reason stated in
subparagraph (2), by such notice within twenty (20) days from the end of the
three hundred sixty (360) day period, as such period may have been extended.
Upon termination, Base Rent and Additional Rent shall be apportioned as of the
date of the damage and all prepaid Base Rent and Additional Rent shall be
repaid.

     8.3 Repair of Damaged Property. If neither party exercises its option to
terminate hereunder, then Landlord shall, with due diligence, repair the Damaged
Property as a complete architectural unit of substantially the same usefulness,
design and construction existing immediately prior to the damage, excluding the
Alterations and Improvements performed by Tenant during the Term. Tenant shall
be entitled to a pro rata abatement of Base Rent and Additional Rent in the
manner and to the extent provided in Section 8.1. The word "repair" as used in
this Article VIII shall include rebuilding, replacing, and restoring the Damaged
Property.

<PAGE>

                                      -24-

                                   ARTICLE IX

                                 Eminent Domain

     9.1 Taking - Lease Ends. If at any time during the Term the whole of the
Premises shall be taken for any public or quasi-public use, under any statute or
by right of eminent domain, this Lease shall terminate on the date of such
taking, except as provided in Section 9.3. If less than all of the Premises
shall be so taken and in Tenant s reasonable opinion the remaining part is
insufficient for the conduct of Tenant's business, then Tenant may, by notice to
Landlord within sixty (60) days after the date Tenant is notified of such
taking, terminate this Lease. If Tenant exercises its option, this Lease and the
Term shall end on the date specified in Tenant's notice and the Base Rent and
Additional Rent shall be apportioned and paid to the date specified in Tenant's
notice.

     9.2 Taking - Lease Continues. If less than all of the Premises shall be
taken and, in Tenant's reasonable opinion communicated by notice to Landlord
within sixty (60) days after Tenant is notified of such taking, Tenant is able
to gain access to and continue the conduct of its business in the part not
taken, this Lease shall remain unaffected, except that Tenant shall be entitled
to a pro rata abatement of Base Rent and Additional Rent based upon the nature
of the space taken (office space, storage, parking area) and upon the proportion
which the area of the Premises or parking area, as case may be, so taken bears
to the area of the Premises or parking area, as case may be, immediately prior
to such taking.

     9.3 Temporary Taking. If the use and occupancy of the whole or any part of
the Premises is temporarily taken for a public or quasi-public use for a period
less than the balance of the Term, then this Lease and the Term shall continue
in full force and effect and Tenant shall be entitled to a pro rata abatement of
Base Rent and Additional Rent in the manner and to the extent provided in
Section 9.2 or, at its option, receive that portion of the award for such taking
which represents compensation for the value of Tenant's leasehold estate and the
Term demised hereunder, in which case Tenant shall continue to pay the Base Rent
and Additional Rent in full when due.

     9.4 Landlord's Award. Landlord shall be entitled to receive the entire
award or awards in any condemnation proceeding without deduction therefrom for
any estate vested in Tenant and Tenant shall receive no part of such award or
awards from Landlord or in the proceedings, except as otherwise expressly
provided in this Article IX. Subject to the foregoing, Tenant hereby assigns to
Landlord any and all of Tenant's right, title and interest in or to such award
or awards or any part thereof.

     9.5 Tenant's Award. If there is a taking of all or any portion of the
Premises, then Tenant shall, if allowed by Applicable Laws, be entitled to
appear, claim, prove and receive in the condemnation proceeding (a) the
unamortized value over the Term of the Alterations and Improvements, provided
the same shall have been paid for by Tenant; (b) the value of Tenant's personal
property that is damaged, destroyed or taken hereunder; (c) the cost of
relocation; and (d) special awards or allowances paid to tenants when their
rental space is taken by eminent domain.

<PAGE>

                                      -25-

     9.6 Restoration By Landlord. If there is a taking of all or any portion of
the Premises and this Lease is continued, then Landlord shall, to the extent of
the available takings award, proceed with reasonable diligence to repair,
replace and restore the Premises as a complete architectural unit of
substantially the same proportionate usefulness, design and construction
existing immediately prior to the date of taking.

     9.7 Definitions. Taking by condemnation or eminent domain hereunder shall
include the exercise of any similar governmental power and any sale, transfer or
other disposition of the Premises in lieu or under threat of condemnation.

                                    ARTICLE X

                                    Yield Up

     10.1 Yield Up. At the expiration of the Term or earlier termination of this
Lease, Tenant shall surrender all keys to the Premises, remove all of its
furnishings, fixtures, equipment, materials, supplies, inventory, effects and
other personal property from the Premises (including, without limitation, all of
Tenant's trade furnishings, trade fixtures and equipment and any Alterations and
Improvements designated by Landlord for removal pursuant to Section 5.7), remove
all of its signs wherever located, repair all damage caused by any such removal
and yield up the Premises in the same good, proper, clean, sanitary, safe,
sound, working and tenantable order, condition and repair in which Tenant is
obliged to keep and maintain the Premises by the provisions of this Lease. Any
of Tenant's property not so removed shall be deemed abandoned and may be
retained by Landlord or may be removed and disposed of by Landlord in such
manner as Landlord shall determine. Tenant shall pay Landlord the entire cost
and expense incurred by Landlord in effecting such removal and disposition.
Without limiting the generality of the foregoing, Tenant shall have the right
upon the expiration or termination of this Lease to remove all of its trade
fixtures, furnishings and equipment from the Premises, provided that it complies
with all requirements of this Section 10.1 in doing so.

     10.2 Holdover. For each day after the expiration of the Term, or the
earlier termination of this Lease, and prior to Tenant's performance of its
obligation to yield up the Premises under this Article, Tenant shall pay to
Landlord as rent an amount equal to one hundred fifty percent (150%) of the Base
Rent computed on a daily basis, together with all Additional Rent and other
charges payable with respect to each such day. Any such holding over by Tenant
shall be a tenancy at sufferance only. In the event that Tenant shall remain in
the Premises for more than thirty (30) days following the expiration or earlier
termination of this Lease, Tenant shall also pay to Landlord all damages, direct
and/or indirect, sustained by reason of any such holding over.

                                   ARTICLE XI

                                    Defaults

     11.1 Events of Default. (a) If Tenant fails to make any payment of Base
Rent, Additional Rent or other charges when due hereunder and does not cure such
default within ten

<PAGE>

                                      -26-

(10) days after notice thereof from Landlord, or (b) if Tenant fails to procure
or maintain any of the insurance required hereunder and does not cure such
default within ten (10) days after notice thereof from Landlord, or (c) if
Tenant fails to perform any of its other obligations under this Lease and does
not cure such default within thirty (30) days after notice thereof from
Landlord, or, if such default is not reasonably susceptible of cure within
thirty (30) days, if Tenant does not commence to cure within such thirty (30)
days and thereafter diligently and continuously prosecute such cure to
completion, or (d) if Tenant becomes insolvent or (e) if the leasehold estate
under this Lease or any substantial part of the property of Tenant is taken on
execution, or by other process of law, or is attached or subjected to any other
involuntary encumbrance and such property is not reconveyed to Tenant or such
attachment or encumbrance is not dissolved within sixty (60) days thereafter, or
(f) if a receiver, trustee, custodian, guardian, liquidator or similar agent is
appointed with respect to Tenant, or if any such person or a mortgagee, secured
party or other creditor takes possession of the Premises or of any substantial
part of the property of Tenant, and, in either case, if such appointment or
taking of possession is not terminated within sixty (60) days after it first
occurs, or (g) if a petition is filed by or with the consent of Tenant under any
federal or state law concerning bankruptcy, insolvency, reorganization,
arrangement, or relief from creditors, or (h) if a petition is filed against
Tenant under any federal or state law concerning bankruptcy, insolvency,
reorganization, arrangement, or relief from creditors, and such petition is not
dismissed within sixty (60) days thereafter, or (i) if Tenant dissolves or is
dissolved or liquidates or adopts any plan or commences any proceeding, the
result of which is intended to include dissolution or liquidation (each of the
foregoing an "Event of Default"), then, and in any of such cases, Landlord and
the agents and servants of Landlord lawfully may, in addition to and not in
derogation of any remedies for any preceding breach of covenant, immediately or
at any time thereafter and without demand or notice and with or without process
of law (forcibly, if necessary) enter into and upon the Premises or any part
thereof in the name of the whole or mail a notice of termination addressed to
Tenant, and repossess the same as of Landlord's former estate and expel Tenant
and those claiming through or under Tenant and remove its and their effects
(forcibly, if necessary) without being deemed guilty of any manner of trespass
and without prejudice to any remedies which might otherwise be used for arrears
of rent or prior breach of covenant, and, upon such entry or mailing as
aforesaid, this Lease shall terminate, Tenant hereby waiving all statutory
rights (including, without limitation, rights of redemption, if any, to the
extent such rights may be lawfully waived) and Landlord, without notice to
Tenant, may store Tenant's effects, and those of any person claiming through or
under Tenant at the expense and risk of Tenant, and, if Landlord so elects, may
sell such effects at public auction or private sale and apply the net proceeds
to the payment of all sums due to Landlord from Tenant, if any, and pay over the
balance, if any, to Tenant. Upon such termination, Tenant shall immediately
vacate and surrender the Premises and deliver possession thereof to Tenant.

     11.2 Remedies. In the event that this Lease is terminated under any of the
provisions contained in Section 11.1, Tenant covenants to pay forthwith to
Landlord, as compensation, the excess of the total rent reserved for the residue
of the Term over the rental value of the Premises for said residue. In
calculating the rent reserved, there shall be included, in addition to the Base
Rent and Additional Rent, the value of all other considerations agreed to be
paid or performed by Tenant for said residue. Tenant further covenants as
additional and cumulative obligations after any such termination to pay
punctually to Landlord all the sums and to perform all the obligations which
Tenant covenants in this Lease to pay and to perform in the

<PAGE>

                                      -27-

same manner and to the same extent and at the same time as if this Lease had not
been terminated. In calculating the amounts to be paid by Tenant pursuant to the
immediately preceding sentence, Tenant shall be credited with the portion of any
amount paid to Landlord as compensation as in this Section 11.2 provided
allocable to the corresponding portion of the Term, and also with the net
proceeds of any rent obtained by Landlord by reletting the Premises, after
deducting all Landlord's reasonable expenses in connection with such reletting,
including, without limitation, all repossession costs, brokerage commissions,
fees for legal services and expenses of preparing the Premises for such
reletting, it being agreed by Tenant that Landlord may, but shall not be
obligated to, (a) relet the Premises or any part or parts thereof, for a term or
terms which may at Landlord's option be equal to or less than or exceed the
period which would otherwise have constituted the balance of the Term and may
grant such concessions and free rent as Landlord in its reasonable judgment
considers advisable or necessary to relet the same, and (b) make such
alterations, repairs and decorations in the Premises as Landlord in its
reasonable judgment considers advisable or necessary to relet the same.

     In lieu of any other damages or indemnity and in lieu of full recovery by
Landlord of all sums payable under all the foregoing provisions of this Section
11.2, Landlord may, by notice to Tenant, at any time after this Lease is
terminated under any of the provisions contained in Section 11.1 and before such
full recovery, elect to recover, and Tenant shall thereupon pay, as liquidated
damages, an amount equal to the aggregate of the Base Rent and Additional Rent
accrued in the year ended prior to such termination plus the amount of Rent of
any kind accrued and unpaid at the time of termination and less the amount of
any recovery by Landlord under the foregoing provisions of this Section 11.2 up
to the time of payment of such liquidated damages.

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

     11.3 Landlord's Right to Cure Defaults. Landlord may, but shall not be
obligated to, at any time following thirty (30) days' prior notice to Tenant, or
such shorter period as may be required in Landlord's reasonable discretion in
the event of an emergency, cure any default by Tenant under this Lease; and
whenever Landlord so elects, all reasonable costs and expenses incurred by
Landlord, including reasonable attorneys' fees in curing such default, shall be
paid by Tenant to Landlord as Additional Rent within ten (10) days after receipt
of an invoice therefor, together with interest thereon at the Late
Payment/Default Rate from the date of payment by Landlord to the date of payment
by Tenant.

     11.4 Effect of Waivers of Default. Any consent or permission by Landlord to
any act or omission which otherwise would be a breach of any covenant or
condition herein, or any waiver by Landlord of the breach of any covenant or
condition herein, shall not in any way be held or construed (unless expressly so
declared) to operate so as to impair the continuing obligation of any covenant
or condition herein or otherwise, except as to the specific instance, operate to
permit similar acts or omissions. The failure of Landlord to seek redress for
violation of, or to insist upon the strict performance of, any covenant or
condition of this Lease shall not be deemed a waiver of such violation nor
prevent a subsequent act, which would have originally

<PAGE>

                                      -28-

constituted a violation, from having all the force and effect of an original
violation. The receipt by Landlord of rent with knowledge of the breach of any
covenant of this Lease shall not be deemed to have been a waiver of such breach
by Landlord, or by Tenant, unless such waiver be in writing signed by the party
to be charged. No consent or waiver, express or implied, by Landlord to or of
any breach of any agreement or duty shall be construed as a waiver or consent to
or of any other breach of the same or any other agreement or duty.

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

                                   ARTICLE XII

                                    Mortgages

     12.1 Rights of Mortgagees; Limitation of Liabilities.

     12.1.1 With reference to any assignment by Landlord of Landlord's interest
in this Lease, or the rents payable hereunder, conditional in nature or
otherwise, which assignment is made to a Mortgagee, Tenant agrees that the
execution thereof by Landlord, and the acceptance thereof by such Mortgagee
shall never be treated as an assumption by such Mortgagee of any of the
obligations of Landlord hereunder unless such holder shall, by notice sent to
Tenant, specifically otherwise elect and, except as aforesaid, such Mortgagee
shall be treated as having assumed Landlord's obligations hereunder only upon
foreclosure of the Mortgage or the taking of possession of the Premises.

     12.1.2 In no event shall the acquisition of Landlord's interest in the
Premises by a purchaser which, simultaneously therewith, leases Landlord's
entire interest in the Premises back to the seller thereof be treated as an
assumption by operation of law or otherwise, of Landlord's obligations
hereunder, but Tenant shall look solely to such seller-lessee, and its
successors from time to time in title, for performance of Landlord's obligations
hereunder. In any such event, this Lease shall be subject and subordinate to the
lease to such purchaser. For all purposes, such seller-lessee, and its
successors in title, shall be the Landlord hereunder unless and until Landlord's
position shall have been assumed by such purchaser-lessor.

     12.1.3 Except as provided in Section 12.1.2, in the event of any transfer
of title to the Premises by Landlord, Landlord shall thereafter be entirely
freed and relieved from the performance and observance of all covenants and
obligations hereunder.

     12.1.4 After receiving notice from Landlord of any Mortgagee of the
Premises, no notice from Tenant to Landlord alleging any default by Landlord
shall be effective unless and until a copy of the same is given to such
Mortgagee (provided Tenant shall have been furnished

<PAGE>

                                      -29-

with the name and address of such Mortgagee), and the curing of any of
Landlord's defaults by such Mortgagee shall be treated as performance by
Landlord.

     12.2 Subordination and Non-Disturbance. This Lease shall be subordinate and
subject to all Mortgages; provided, however, that with respect to any existing
Mortgage, no later than the date Tenant executes and delivers this Lease and,
with respect to any future Mortgage, on or before the effective date thereof,
Landlord shall obtain from the Mortgagee a written agreement with Tenant binding
on their respective legal representatives, successors and assigns that provides,
among other provisions, that so long as this Lease shall be in full force and
effect and there shall be no Event of Default hereunder (a) Tenant shall not be
joined as a defendant in any proceeding which may be instituted to foreclose or
enforce the Mortgage, and (b) Tenant's rights under this Lease and possession
and use of the Premises in accordance with the provisions of this Lease shall
not be terminated, diminished, affected or disturbed by reason of the
subordination to or any modification of or default under the Mortgage. If the
Mortgagee or any successor in interest shall succeed to the rights of Landlord
under this Lease, whether through possession, surrender, assignment, subletting,
judicial or foreclosure action, or delivery of a deed or otherwise, Tenant will
attorn to and recognize such successor-landlord as Tenant's landlord provided
the successor-landlord accepts such attornment and recognizes Tenant's rights
under this Lease and Tenant's rights of possession and use of the Premises in
accordance with the provisions of this Lease.

                                  ARTICLE XIII

                            Miscellaneous Provisions

     13.1 Notices from One Party to the Other. All notices required or permitted
under this Lease shall be in writing and delivered by hand, or by overnight
mail, or mailed by registered or certified mail, postage prepaid and return
receipt requested, addressed if to Tenant to Tenant's Address designated in
Section 1.1 or such other address as Tenant shall have last designated by notice
in writing to Landlord and, if to Landlord, to Landlord's Address designated in
Section 1.1 or such other address as Landlord shall have last designated by
notice in writing to Tenant. All notices shall be effective upon delivery to the
address of the addressee (even if such addressee refuses delivery thereof).

     13.2 Quiet Enjoyment. Landlord agrees that, so long as no Event of Default
has occurred and is continuing, Tenant shall and may peaceably and quietly have,
hold and enjoy the Premises during the Term without any manner of hindrance or
molestation from Landlord or anyone claiming under Landlord, subject, however,
to the terms and provisions of this Lease.

     13.3 Lease not to be Recorded. Tenant agrees that it will not record this
Lease. Both Parties shall, upon the request of either, execute and deliver a
notice of this Lease in such form, if any, as may be permitted by Applicable
Laws. If this Lease is terminated before the Expiration Date, then the Parties
shall execute, deliver and record an instrument acknowledging such fact and the
actual date of termination of this Lease.

<PAGE>

                                      -30-

     13.4 Bind and Inure; Limitation of Landlord's Liability. The obligations of
this Lease shall run with the land, and this Lease shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors,
assigns and legal representatives. No individual partner, member, trustee,
stockholder, officer, director, manager, employee or beneficiary of Landlord
shall be personally liable under this Lease. If Landlord shall fail to perform
any covenant, term or condition of this Lease upon Landlord's part to be
performed and, as a consequence of such default, Tenant shall recover a money
judgment against Landlord, such judgment shall be satisfied only out of the
proceeds of sale received upon execution of such judgment and levy thereon
against the right, title and interest of Landlord in the Premises and out of
rents or other income from the Premises receivable by Landlord or out of the
consideration received by Landlord from the sale or other disposition of all or
any part of Landlord's right, title and interest in the Premises, and the
Landlord shall not be liable for any deficiency.

     13.5 Force Majeure. In any case where either Party is required to do any
acts, then, except where specifically provided in this Lease and to the
contrary, delays caused by or resulting from acts of God, war, civil commotion,
fire, flood or other casualty, labor difficulties, shortages of labor, materials
or equipment, government regulations, unusually severe weather, or other causes
beyond such Party's reasonable control shall not be counted in determining the
time during which such acts shall be completed, whether such time be designated
by a fixed date, a fixed time or a "reasonable time", and such time shall be
deemed to be extended by the period of such delay. This Section 13.5 shall not
apply to payment of Base Rent, Additional Rent or any other payments of money
required hereunder.

     13.6 Landlord's Default. If Landlord fails to perform or observe any of its
covenants or obligations set forth in this Lease, Tenant may give Landlord
written notice thereof and, if such failure is not cured by Landlord within
thirty (30) days after the delivery of such notice ("Landlord's Default), except
that if Landlord's Default cannot be cured within said thirty (30) day period,
this period shall be extended for a reasonable additional time, provided that
Landlord commences to cure Landlord's Default within the thirty (30) day period
and proceeds diligently thereafter to effect such cure), Tenant may (but is
under no obligation to) cure Landlord's Default and invoice Landlord for the
reasonable third-party out-of-pocket costs, including reasonable attorney's
fees, associated with effecting such cure. Landlord shall reimburse Tenant for
all costs and expenses within thirty (30) days after receipt of an invoice from
Tenant accompanied by reasonable evidence of such costs and expenses, provided
that in no event shall Tenant have the right to deduct such sums from the Rent
payable by Tenant hereunder. In the event of any dispute under this Section, the
prevailing party in such dispute or the party who ultimately recovers any funds
hereunder, shall also be entitled to be paid all of its reasonable costs and
expenses in pursuing such dispute, including reasonable attorneys fees.

     13.7 Brokerage. The Parties warrant and represent to each other that no
broker has negotiated or brought about this transaction other than the Brokers,
and Landlord covenants and agrees to pay a brokerage commission to the Brokers
in accordance with the provisions of a separate agreement between them. Tenant
shall defend, indemnify and save harmless Landlord from and against any claim
which may be asserted against Landlord by any person other than the Brokers if
(a) the claim is made in connection with this Lease and (b) Tenant employed the
claiming person or entity. Tenant shall reimburse Landlord for reasonable
expenses, losses, costs and damages (including reasonable attorneys fees and
court costs if Tenant fails or refuses to defend as herein required) incurred by
Landlord in connection with such claims. Landlord

<PAGE>

                                      -31-

shall defend, indemnify and save harmless Tenant from and against any claim
which may be asserted against Tenant by any person or entity (including the
Brokers) if the claim (a) is made in connection with this Lease and (b) arises
out of conversations or dealings between Landlord and any claiming broker,
excluding compensation due a broker employed by Tenant. Landlord shall reimburse
Tenant for reasonable expenses, losses, costs and damages (including reasonable
attorneys' fees and court costs if Landlord fails or refuses to defend as herein
required) incurred by Tenant in connection with such claims. Landlord and Tenant
agree that payment to the Brokers or another broker under this Section 13.7
shall not be a release of either Party from its respective obligation to
indemnify the other hereunder or of the rights of each to enforce such indemnity
against the other. This Section 13.7 shall survive the expiration or earlier
termination of this Lease.

     13.8 Estoppel Certificate. Upon not less than fifteen (15) days' prior
notice by Landlord, Tenant shall execute, acknowledge and deliver to Landlord a
statement in writing, addressed to such party as Landlord shall designate in its
notice to Tenant, certifying that this Lease is unmodified and in full force and
effect and that Tenant has no defenses, offsets or counterclaims against is
obligations to pay the Base Rent, Additional Rent and any other charges and to
perform its other covenants under this Lease (or, if there have been any
modifications that the same is in full force and effect as modified and stating
the modifications and, if there are any defenses, offsets or counterclaims,
setting them, forth in reasonable detail), the dates to which the Base Rent,
Additional Rent and other charges have been paid and a statement that Landlord
is not in default hereunder (or if in default, the nature of such default, in
reasonable detail) and such other statements of fact as Landlord shall
reasonably request. Any such statement delivered pursuant to this Section 13.8
may be relied upon by any prospective purchaser or mortgagee of the Premises or
any prospective assignee of any Mortgagee.

          During the Term Landlord shall, within fifteen (15) days after receipt
of Tenant's request, deliver an estoppel certificate to tenant or any Person or
entity designated by Tenant relative to the status of this Lease.

     13.9 Landlord's Consents. No approval or consent hereunder by Landlord,
express or implied, in any one case or instance shall be deemed an approval or
consent in any other case or instance.

     13.10 Tenant's Post-Termination Obligations. The expiration or termination
of this Lease shall not relieve Tenant of any of its obligations hereunder which
by their terms or nature Tenant is to perform after such expiration or
termination, nor of any indemnity given by Tenant hereunder, all of which shall
continue and remain in full force and effect for as long as allowed by
Applicable Laws.

     13.11 Applicable Law. This Lease shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts. If any term,
covenant, condition or provision of this Lease or the application thereof to any
person or circumstances shall be declared invalid, or unenforceable by the final
ruling of a court of competent jurisdiction having final review, the remaining
terms, covenants, conditions and provisions of this Lease and their application
to persons or circumstances shall not be affected thereby and shall continue to
be enforced and recognized as valid agreements of the Parties, and in the place
of such invalid or unenforceable provision, there shall be substituted a like,
but valid and enforceable provision

<PAGE>

                                      -32-

which comports to the findings of the aforesaid court and most nearly
accomplishes the original intention of the Parties.

     13.12 No Other Agreement. There are no oral or written agreements between
Landlord and Tenant affecting this Lease. This Lease may be amended, and the
provisions hereof may be waived or modified, only by instruments in writing
executed by Landlord and Tenant.

     13.13 No Representations by Landlord. Neither Landlord nor any agent of
Landlord has made any representations or promises with respect to the Premises
except as herein expressly set forth, and no rights, privileges, easements or
licenses are granted to Tenant except as herein expressly set forth.

     13.14 Time of Essence. Time is of the essence with respect to all terms,
conditions and provisions of this Lease.

     13.15 Titles. The titles of the several Articles and Sections contained
herein are for convenience only and shall not be considered in construing this
Lease.

     13.16 "Landlord" and "Tenant". Unless repugnant to the context, the words
"Landlord" and "Tenant" appearing in this Lease shall be construed to mean those
named above and their respective successors, assigns, legal representatives and
those claiming through or under them respectively. If there be more than one
tenant, then the obligations imposed by this Lease upon Tenant shall be joint
and several.

     13.17 Costs; Remedies Not Exclusive. In the event either Party commences a
legal proceeding to enforce any of the terms of this Lease, the prevailing Party
in such action shall have the right to recover reasonable attorneys' fees and
costs from the other Party, to be fixed by the court in the same action. The
term "legal proceedings" shall include appeals from a lower court judgment as
well as proceedings in the Federal Bankruptcy Court, whether or not they are
adversary proceedings or contested matters. The "prevailing Party" shall mean
the Party that prevails in obtaining a remedy or relief which more nearly
reflects the remedy or relief which the Party sought. The various rights and
remedies herein contained and reserved to each of the Parties, except as herein
otherwise expressly provided, shall not be considered as exclusive of any other
right or remedy of such Party, but shall be construed as cumulative and shall be
in addition to every other remedy now or hereafter existing at law, in equity or
by statute. No delay or omission of the right to exercise any power or remedy by
either Party shall impair any such right, power or remedy or be construed as a
waiver of any default or non-performance or as acquiescence therein.

                                   ARTICLE XIV

                               Options to Extend

     14.1 First Option to Extend. On the condition that Tenant is not in default
beyond applicable notice and cure periods in the performance of any of its
covenants and obligations under this Lease at the time of option exercise,
Tenant shall have the option ("Tenant's First Extension Option") to extend the
Term for an additional term of five (5) years (herein referred to

<PAGE>

                                      -33-

as the "First Additional Term"), the First Additional Term to commence
immediately after the expiration of the Initial Term. If Tenant desires to
extend the Term for the First Additional Term, then Tenant shall give notice
(the "First Extension Notice") thereof to Landlord no later than the date that
is eighteen (18) months prior to the scheduled expiration of the Initial Term.
Upon the timely giving of the First Extension Notice, the Term shall be deemed
extended upon all of the same terms and conditions set forth in this Lease for
the Initial Term, except that the annual Base Rent payable during the First
Additional Term (the "First Additional Term Annual Base Rent") shall be equal at
the rate of ninety-five percent (95%) of the then current fair market annual
rent for five (5) year leases of comparable premises in comparable buildings in
the general vicinity of the Building, as determined in accordance with the
following paragraph. The First Additional Term Annual Base Rent shall be payable
in equal monthly installments in advance on or before the first day of each
calendar month during the First Additional Term. Notwithstanding the fact that
Tenant's exercise of Tenant's First Extension Option shall be self-executing, as
aforesaid, upon the request of either Landlord or Tenant, both Landlord and
Tenant shall promptly execute and deliver an amendment to this Lease reflecting
the First Additional Term and the First Additional Term Annual Base Rent after
Tenant exercises Tenant's First Extension Option. Upon Tenant's timely exercise
of Tenant's First Extension Option, the word "Term", wherever it appears in this
Lease, shall include the First Additional Term.

     Landlord shall give Tenant written notice (the "First Additional Term
Rental Notice") of Landlord's good faith determination of the First Additional
Term Annual Base Rent on or before the date that is thirty (30) days after
Landlord's receipt of the First Extension Notice. If Tenant does not accept in
writing Landlord's determination of First Additional Term Annual Base Rent and
if Landlord and Tenant cannot agree in writing on the First Additional Term
Annual Base Rent within thirty (30) days after Tenant's receipt of the First
Additional Term Rental Notice, Tenant may elect to rescind its exercise of
Tenant's First Extension Option by written notice within thirty (30) days after
Tenant's receipt of the First Additional Term Rental Notice. In the event that
Tenant shall not elect to so rescind, then Landlord and Tenant shall, not later
than sixty (60) days after Tenant's receipt of the First Additional Term Rental
Notice, each retain a real estate professional with at least ten (10) years'
continuous experience in the business of appraising or marketing commercial real
estate in the Andover, Massachusetts area. The two (2) real estate professionals
referred to in the preceding sentence as well as the Final Professional referred
to below in this paragraph shall each be instructed by Landlord and Tenant that,
in reaching his or her conclusion as to the First Additional Term Annual Base
Rent, he or she shall take into consideration all relevant factors, including,
without limitation, current market terms and leasing transactions and tenant
concessions, including without limitation, the fact no tenant improvement
allowance, free rent, moving expenses or other concessions will be payable to
Tenant in connection with its leasing the Premises for the First Additional Term
and he or she shall take into consideration the amount of brokerage commissions,
if any, payable by Landlord in connection with Tenant's leasing of the Premises
for the First Additional Term. The two (2) real estate professional referred to
above in this paragraph shall, within thirty (30) days after his or her
selection, prepare a written report summarizing his or her conclusion as to the
First Additional Term Annual Base Rent. Landlord and Tenant shall exchange such
reports; provided, however, that if one Party has not delivered to the other
Party such a report within ninety (90) days after Tenant's receipt of the First
Additional Term Rental Notice, then the determination set forth in the other
Party's report shall be final and binding upon the Parties. If both Parties so
deliver reports within such time and the lesser of the two (2) determinations is
within ten (10%)

<PAGE>

                                      -34-

percent of the higher determination, then the average of these determinations
shall be deemed to be the First Additional Term Annual Base Rent. If these
determinations differ by more than ten (10%) percent, then Landlord and Tenant
shall mutually select a person with the qualifications stated above (the "Final
Professional") to resolve the dispute as to the First Additional Term Annual
Base Rent. If Landlord and Tenant cannot agree upon the designation of the Final
Professional within thirty (30) days after the exchange of the first valuation
reports, then either party may apply to the American Arbitration Association,
the Greater Boston Real Estate Board, or any successor thereto, for the
designation of a Final Professional. Within ten (10) days after the selection of
the Final Professional, Landlord and Tenant shall each submit to the Final
Professional a copy of their respective real estate professional's determination
of the First Additional Term Annual Base Rent. The Final Professional shall not
perform his or her own valuation but rather shall, within thirty (30) days after
such submissions, select the submission which is closest to the determination of
the First Additional Term Annual Base Rent which the Final Professional would
have made acting alone. The Final Professional shall give notice of his or her
selection to Landlord and Tenant and such decision shall be final and binding
upon Landlord and Tenant.

     Each party shall pay the fees and expenses of its real estate professional
and counsel, if any, in connection with any proceeding under this paragraph, and
the losing party (i.e., the party whose submission was not selected by the Final
Professional) shall pay the fees and expenses of the Final Professional.

     14.2 Second Option to Extend. On the condition that Tenant is not in
default beyond applicable notice and cure periods in the performance of any of
its covenants and obligations under this Lease at the time of option exercise,
Tenant shall have the option ("Tenant's Second Extension Option") to extend the
Term for an additional term of five (5) years (herein referred to as the "Second
Additional Term"), the Second Additional Term to commence immediately after the
expiration of the First Additional Term. If Tenant desires to extend the Term
for the Second Additional Term, then Tenant shall give notice (the "Second
Extension Notice") thereof to Landlord no later than the date that is eighteen
(18) months prior to the scheduled expiration of the First Additional Term. Upon
the timely giving of the Second Extension Notice, the Term shall be deemed
extended upon all of the same terms and conditions set forth in this Lease for
the First Additional Term, except that the annual Base Rent payable during the
Second Additional Term (the "Second Additional Term Annual Base Rent") shall be
at the rate of ninety-five percent (95%) of the then current fair market annual
rent for five (5) year leases of comparable premises in comparable buildings in
the general vicinity of the Building, as determined in accordance with the
following paragraph. The Second Additional Term Annual Base Rent shall be
payable in equal monthly installments in advance on or before the first day of
each calendar month during the Second Additional Term. Notwithstanding the fact
that Tenant's exercise of Tenant's Second Extension Option shall be
self-executing, as aforesaid, upon the request of either Landlord or Tenant,
both Landlord and Tenant shall promptly execute and deliver an amendment to this
Lease reflecting the Second Additional Term and the Second Additional Term
Annual Base Rent after Tenant exercises Tenant's Second Extension Option. Upon
Tenant's exercise of Tenant's Second Extension Option, the word "Term", wherever
it appears in this Lease, shall include the Second Additional Term.

     Landlord shall give Tenant written notice (the "Second Additional Term
Rental Notice")

<PAGE>

                                      -35-

of Landlord's good faith determination of the Second Additional Term Annual Base
Rent on or before the date that is thirty (30) days after Landlord's receipt of
the Second Extension Notice. If Tenant does not accept in writing Landlord's
determination of Second Additional Term Annual Base Rent and if Landlord and
Tenant cannot agree in writing on the Second Additional Term Annual Base Rent
within thirty (30) days after Tenant's receipt of the Second Additional Term
Rental Notice, Tenant may elect to rescind its exercise of Tenant's Second
Extension Option by written notice within thirty (30) days after Tenant's
receipt of the Second Additional Term Rental Notice. In the event that Tenant
shall not elect to so rescind, then Landlord and Tenant shall, not later than
sixty (60) days after Tenant's receipt of the Second Additional Term Rental
Notice, each retain a real estate professional with at least ten (10) years'
continuous experience in the business of appraising or marketing commercial real
estate in the Andover, Massachusetts area. The two (2) real estate professionals
referred to in the preceding sentence as well as the Final Professional referred
to below in this paragraph shall each be instructed by Landlord and Tenant that,
in reaching his or her conclusion as to the Second Additional Term Annual Base
Rent, he or she shall take into consideration all relevant factors, including,
without limitation, current market terms and leasing transactions and tenant
concessions, including without limitation, the fact no tenant improvement
allowance, free rent, moving expenses or other concessions will be payable to
Tenant in connection with its leasing the Premises for the Second Additional
Term and he or she shall take into consideration the amount of brokerage
commissions, if any, payable by Landlord in connection with Tenant's leasing of
the Premises for the Second Additional Term. The two (2) real estate
professional referred to above in this paragraph shall, within thirty (30) days
after his or her selection, prepare a written report summarizing his or her
conclusion as to the Second Additional Term Annual Base Rent. Landlord and
Tenant shall exchange such reports; provided, however, that if one Party has not
delivered to the other Party such a report within ninety (90) days after
Tenant's receipt of the Second Additional Term Rental Notice, then the
determination set forth in the other Party's report shall be final and binding
upon the Parties. If both Parties so deliver reports within such time and the
lesser of the two (2) determinations is within ten (10%) percent of the higher
determination, then the average of these determinations shall be deemed to be
the Second Additional Term Annual Base Rent. If these determinations differ by
more than ten (10%) percent, then Landlord and Tenant shall mutually select a
person with the qualifications stated above (the "Final Professional" ) to
resolve the dispute as to the Second Additional Term Annual Base Rent. If
Landlord and Tenant cannot agree upon the designation of the Final Professional
within thirty (30) days after the exchange of the first valuation reports, then
either party may apply to the American Arbitration Association, the Greater
Boston Real Estate Board, or any successor thereto, for the designation of a
Final Professional. Within ten (10) days after the selection of the Final
Professional, Landlord and Tenant shall each submit to the Final Professional a
copy of their respective real estate professional's determination of the Second
Additional Term Annual Base Rent. The Final Professional shall not perform his
or her own valuation but rather shall, within thirty (30) days after such
submissions, select the submission which is closest to the determination of the
Second Additional Term Annual Base Rent which the Final Professional would have
made acting alone. The Final Professional shall give notice of his or her
selection to Landlord and Tenant and such decision shall be final and binding
upon Landlord and Tenant.

     Each party shall pay the fees and expenses of its real estate professional
and counsel, if

<PAGE>

                                      -36-

any, in connection with any proceeding under this paragraph, and the losing
party (i.e., the party whose submission was not selected by the Final
Professional) shall pay the fees and expenses of the Final Professional.

<PAGE>

                                      -37-

Executed under seal as of the Date of this Lease.

                                        LANDLORD:

                                        DIRECT INVEST-60 FRONTAGE, LLC,
                                        a Delaware limited liability company

                                        By: /s/ Robert Licht
                                            ------------------------------------
                                        Print Name: Robert Licht
                                                    ----------------------------
                                        Print Title: Authorized Signatory
                                                     ---------------------------

                                        TENANT:

                                        DYNAMICS RESEARCH CORPORATION,
                                        a Massachusetts corporation

                                        By: /s/ James P. Regan
                                            ------------------------------------
                                        Print Name: James P. Regan
                                                    ----------------------------
                                        Print Title: President
                                                     ---------------------------

<PAGE>

                                      -38-

                                    EXHIBIT A

                          Legal Description of the Land

A certain parcel of land situated on Frontage Road in Andover, Essex County,
Massachusetts, shown as "Remaining land 17.06 +/- Acres" on a plan entitled
"Plan of Land in Andover, Massachusetts. Owner H.F.L. Realty Trust", dated March
26, 1981, revised July 28, 1981, and August 26, 1981, by Port Engineering
Assoc., Inc., recorded with the Essex North District Registry of Deeds as Plan
No. 8734, bounded and described, according to said plan, as follows:

<TABLE>
<S>             <C>
EASTERLY        by Frontage Road, five hundred seventeen and 18/100 517.18)
                feet;

SOUTHEASTERLY   by land now or formerly of Raytheon Company, as shown on said
                plan, two hundred ninety-one and 60/100 (291.60) feet;

SOUTHWESTERLY   by Osgood Street, by five lines measuring, respectively, one
                hundred thirty and 14/100 (130.14) feet, one hundred
                ninety-eight and 83/100 (198.83) feet, one hundred eighty and
                90/100 (180.90) feet, two hundred and 39/100 (200.39) feet, and
                eighty-two and 20/100 (82.20) feet;

WESTERLY        by Lot A, as shown on said plan, two hundred twenty-three and
                98/100 (223.98) feet;

NORTHERLY       by the same, eighty-two and 82/100 (82.82) feet;

WESTERLY        again by the same, two hundred sixty and 00/100 (260.00) feet;

NORTHWESTERLY   again by the same, two hundred forty-three and 54/100 (243.54)
                feet;

SOUTHWESTERLY   again by the same, two hundred ninety and 00/100 (290.00) feet;

NORTHERLY       by land now or formerly of Endrock Associates, as shown on said
                plan, two hundred fifty and 33/10 (250.33) feet;

NORTHEASTERLY   by land of Raytheon Company, as shown on said plan, by three
                lines measuring, respectively, two hundred forty-two and 55/100
                (242.55) feet, one hundred eighty-nine and 52/100 (189.52) feet,
                and ninety-eight and 76/100 (98.76) feet;

SOUTHEASTERLY   again by the same, nine and 51/100 (9.51) feet; and

NORTHEASTERLY   again by the same, one hundred fourteen and 02/100 (114.02)
                feet;
</TABLE>

containing 17.06 acres of land, more or less, according to said plan.

<PAGE>

                                      -39-

                                    EXHIBIT B

                            Form of Letter of Credit

[Insert Landlord's Name]
[Insert Landlord's Address]

Dear Sir or Madam:

     Brown Brothers Harriman ("BANK"), of __________________, _______________,
hereby issues its Irrevocable, Unconditional Letter of Credit in favor of
_______________________, a _________________________, and/or its successors and
assigns ("LANDLORD"), for the account of ___________________, a
___________________ ("TENANT"), up to the aggregate amount of $______________,
available at sight by the drafts of Landlord on the Bank. Drafts drawn on this
Letter of Credit will be honored when presented, accompanied only by a letter or
certificate signed by a representative of Landlord stating that Landlord is
entitled to draw on this Letter of Credit under the terms of Section 5.8 of the
Lease, dated as of ________________, 200___, between Landlord and Tenant (the
"Lease"). Multiple and partial draws shall be permitted hereunder. This Letter
of Credit is transferable in whole or in part. The Bank shall look solely to
Tenant for payment of any fee for such transfer. Such payment is not a condition
to transfer.

     The Bank shall be entitled (and required) to rely upon the statements
contained in the above-described letter or certificate and will have no
obligation to verify the truth of any statements set forth therein.

     The Bank hereby agrees with drawers, endorsers, and bona fide holders of
this Letter of Credit that all drafts drawn by reason of this Letter of Credit
and in accordance with the above conditions, will meet with due honor when
presented at the office of the Bank in _______________, _______________.

     The obligations of the Bank shall not be subject to any claim or defense by
reason of the invalidity, illegality or inability to enforce any of the
agreements set forth in the Lease.

     This Letter of Credit is subject to the Uniform Customs and Practices for
Documentary Credits (1993 Revision) fixed by the International Chamber of
Commerce (publication 500) when not in conflict with the express terms of this
Letter of Credit.

     This Letter of Credit shall terminate at 3:00 p.m. Eastern Standard [or
Daylight Savings] Time on _________________________ [Insert date 45 days
following scheduled expiration of third Lease Year] which shall be the final
expiration date of this Letter of Credit; provided, that our obligation to make
any payment hereunder in respect of a drawing request made prior to the expiry
hereof shall continue until payment is made:

     Amounts drawn upon this Letter of Credit are to be endorsed on the reverse
side of this Letter of Credit by the negotiating bank.

     THIS LETTER OF CREDIT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES
THAT MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF

<PAGE>

                                      -40-

THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                                        ----------------------------------------
                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------<PAGE>
                                                                   Exhibit 10.38

                     CONSENT, WAIVER AND AMENDMENT AGREEMENT

     This CONSENT, WAIVER AND AMENDMENT AGREEMENT (this "Consent"), dated as of
December 28, 2005, is entered into by and between DYNAMICS RESEARCH CORPORATION,
a Massachusetts corporation, DRC INTERNATIONAL CORPORATION, a Massachusetts
corporation, and H.J. FORD ASSOCIATES, INC., a Delaware corporation, with their
principal executive offices at 60 Frontage Road, Andover, Massachusetts
(hereinafter, individually and collectively, jointly and severally, the
"Borrowers") and BROWN BROTHERS HARRIMAN & CO., as administrative agent and as a
lender, TD BANKNORTH, N.A, FORMERLY KNOWN AS BANKNORTH, N.A., as documentation
agent and as a lender, KEYBANK NATIONAL ASSOCIATION, as co-syndication agent and
as a lender, and BANK OF AMERICA, N.A., SUCCESSOR BY MERGER TO FLEET NATIONAL
BANK, A BANK OF AMERICA company as co-syndication agent and as a lender
(hereinafter, individually and collectively, the "Lenders").

     WHEREAS, the Borrowers and the Lenders are parties to that certain Second
Amended and Restated Loan Agreement dated as of September 1, 2004 (as may be
amended and in effect from time to time, the "Credit Agreement"), pursuant to
which the Lenders, upon certain terms and conditions, agreed to make loans to,
and to issue letters of credit for the benefit of, the Borrowers;

     WHEREAS, the Borrowers have requested that the Lenders consent to the sale
of Dynamics Research Corporation's real property located at 60 Frontage Road,
Andover, Massachusetts (the "Premises") pursuant to that certain Offer Letter
dated October 28, 2005 and that certain Purchase and Sale Agreement entered into
on or about November 18, 2005 (singly and collectively, the "Purchase
Agreement") attached hereto and specifically incorporated by reference herein;

     WHEREAS, the Lenders have agreed, on the terms and subject to the
conditions set forth herein, to consent to such transaction;

     NOW, THEREFORE, for good and valuable consideration, the parties hereto
hereby agree as follows:

1.   Defined Terms. Capitalized terms which are used herein without definition
     and which are defined in the Credit Agreement shall have the same meanings
     herein as in the Credit Agreement.

2.   Consent. The Borrowers have informed the Lenders that Dynamics Research
     Corporation intends to sell the Premises and enter into a sale/leaseback
     arrangement with respect to the Premises pursuant to Purchase Agreement
     (the "Transaction") to be consummated upon terms substantially similar to
     those contained in the Purchase Agreement. In reliance upon the
     representations of the Borrowers herein and therein, the Lenders hereby
     consent to the consummation of the Transaction, subject to each of the
     following terms and conditions:

          a.   Subject to Section 3 of this Consent, no Event of Default shall
               have occurred and be continuing at the time of the consummation
               of the Transaction;

          b.   The Transaction shall be consummated on or before December 31,
               2005 upon terms substantially similar to those contained in the
               Purchase Agreement and without any material amendment or
               modification thereto (it being agreed that any amendment or
               modification to the Purchase Agreement which may be adverse to
               the interests of the Lenders shall be deemed to be material and
               that the net cash consideration received by Dynamics Research
               Corporation (the "Net Cash Proceeds") from the consummation of
               the Transaction must exceed $15,000,000);

          c.   All Net Cash Proceeds shall immediately be remitted by Dynamics
               Research Corporation to the Administrative Agent, for the ratable
               benefit of the Lenders, to be applied by the Administrative Agent
               first to the amounts outstanding under the Term Loan until repaid

                                   Page 1 of 5

<PAGE>

               in full and, second, in reduction of the outstanding principal
               balance of the Acquisition Term Loan, in inverse order of
               maturity; and

          d.   The Borrowers shall deliver to the Lender true and complete
               copies of all documents, instruments and agreements executed in
               connection with the Transaction promptly after consummation of
               the Transaction.

     Upon receipt of the Net Cash Proceeds by the Administrative Agent in
     accordance with the terms of this Consent, the Administrative Agent shall
     execute and deliver to Dynamics Research Corporation a discharge of its
     mortgage interest in and to the Premises pursuant to a certain Mortgage,
     Security Agreement and Assignment dated as of February 10, 2000, as amended
     and in effect, recorded with the Essex County Registry of Deeds at Book
     5676, Page 217.

3.   Waiver. In connection with the consummation of the Transaction, the
     Borrowers have requested that the Lenders waive certain Events of Default
     which may arise as a result thereof. Accordingly, the Lenders hereby waive
     any defaults arising under the Credit Agreement arising solely from the
     consummation of the Transaction. The waiver herein shall constitute a
     one-time waiver and shall relate only to the specific Events of Default
     which may occur as a result of the consummation of the Transaction, and
     shall not be deemed to constitute a waiver of any other Event of Default,
     whether now existing or hereafter arising.

4.   Amendment. The Borrowers and the Lenders acknowledge and agree that
     effective as of the date of this Consent, the Credit Agreement shall be
     amended by deleting the following text appearing in Section 4-4(b)(i) of
     the Credit Agreement in its entirety:

          "(b) In addition to the principal payments required pursuant to
          subsection (a) above, the Borrowers shall also make the following
          payments of principal:

               (i) commencing with the fiscal year ending December 31, 2005, the
               Borrowers shall pay annually to the Administrative Agent, for the
               ratable benefit of the Lenders, by no later than February 15 of
               each year, fifty percent (50%) of its Excess Cash Flow for the
               most recently completed fiscal year (each an "EXCESS CASH FLOW
               PAYMENT"). Each such Excess Cash Flow Payment shall be applied as
               follows:

                    (A) First, to the outstanding principal balance of the
               Revolving Credit Loans, provided, however, the outstanding
               principal balance of the Revolving Credit Loans on the last day
               of the subject fiscal year compared with the outstanding
               principal balance of the Revolving Credit Loans on the last day
               of the previous fiscal year does not already reflect such a
               reduction;

                    (B) Second, to the outstanding principal balance of the
               Acquisition Term Loan, in inverse order of maturity until the
               Acquisition Term Loan is paid in full; and

                    (C) Third, to the outstanding principal balance of the Term
               Loan, in inverse order of maturity until the Term Loan is paid in
               full.

                    Application of each such Excess Cash Flow Payment shall not
               postpone or relieve the Borrowers of their obligations to make
               the scheduled principal payments required by subsection (a)
               above; and"

                    And substituting the following text therefor:

          "(b) In addition to the principal payments required pursuant to
          subsection (a) above, the Borrowers shall also make the following
          payments of principal:

                                   Page 2 of 5

<PAGE>

               (i) intentionally omitted."

5.   Representations and Warranties. The Borrowers hereby represent and warrant
     to the Lenders as follows:

          a.   The execution and delivery of this Consent by the Borrowers and
               the performance by the Borrowers of their obligations and
               agreements under this Consent and the Credit Agreement as amended
               hereby are within the corporate authority of the Borrowers, have
               been duly authorized by all necessary corporate proceedings on
               behalf of the Borrowers and do not and will not contravene any
               provision of law, statute, rule or regulation to which the
               Borrowers are subject or the Borrowers' charters, other
               incorporation papers, by-laws or any stock provision or any
               amendment thereof or of any agreement or other instrument binding
               upon the Borrowers.

          b.   This Consent and the Credit Agreement as modified hereby
               constitute legal, valid and binding obligations of the Borrowers,
               enforceable against the Borrowers in accordance with their
               respective terms, except as limited by bankruptcy, insolvency,
               reorganization, moratorium or other laws relating to or affecting
               generally the enforcement of creditors' rights in general, and by
               general principles of equity (regardless of whether such
               enforceability is considered in a proceeding in equity or at
               law).

          c.   No approval or consent of, or filing with, any governmental
               agency or authority is required to make valid and legally binding
               the execution, delivery or performance by the Borrowers of this
               Consent or the Credit Agreement as modified hereby.

6.   Waiver of Claims: The Borrowers hereby acknowledge and agree that they do
     not have any offsets, defenses, claims, or counterclaims against the
     Lenders or any of their respective officers, directors, employees,
     affiliates, attorneys, representatives, predecessors, successors, or
     assigns with respect to the Credit Agreement or any of the other Loan
     Documents, the Liabilities, or otherwise, and that if the Borrowers now
     have, or ever did have, any such offsets, defenses, claims, or
     counterclaims against the Lenders or any of their respective officers,
     directors, employees, attorneys, representatives, predecessors, successors,
     or assigns, whether known or unknown, at law or in equity, from the
     beginning of the world through this date and through the time of execution
     of this Consent, all of them are hereby expressly WAIVED, and the Borrowers
     hereby RELEASE the Lenders and their respective officers, directors,
     employees, affiliates, attorneys, representatives, predecessors,
     successors, and assigns from any liability therefor.

7.   Miscellaneous Provisions.

          a.   Except as otherwise expressly provided by this Consent, all of
               the terms, conditions and provisions of the Credit Agreement
               shall remain the same. It is declared and agreed by each of the
               parties hereto that the Credit Agreement, as modified hereby,
               shall continue in full force and effect, and that this Consent
               and the Credit Agreement shall be read and construed as one
               instrument.

          b.   This Consent is intended to take effect as an agreement under
               seal and shall be construed according to and governed by the laws
               of the Commonwealth of Massachusetts.

          c.   This Consent may be executed in any number of counterparts, but
               all such counterparts shall together constitute but one
               instrument. In making proof of this Consent it shall not be
               necessary to produce or account for more than one counterpart
               signed by each party hereto by and against which enforcement
               hereof is sought.

                  (remainder of page intentionally left blank)

                                   Page 3 of 5

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Consent as of the
date first written above.

                                        BORROWERS:

                                        DYNAMICS RESEARCH CORPORATION

                                        By /s/ David Keleher
                                           -------------------------------------
                                        Name: David Keleher
                                              ----------------------------------
                                        Title: Senior VP and CFO
                                               ---------------------------------

                                        DRC INTERNATIONAL CORPORATION

                                        By /s/ David Keleher
                                           -------------------------------------
                                        Name: David Keleher
                                              ----------------------------------
                                        Title: Vice President
                                               ---------------------------------

                                        H.J. FORD ASSOCIATES, INC.

                                        By /s/ David Keleher
                                           -------------------------------------
                                        Name: David Keleher
                                              ----------------------------------
                                        Title: Treasurer
                                               ---------------------------------

                                   Page 4 of 5

<PAGE>

ACKNOWLEDGED AND AGREED

LENDERS:

BROWN BROTHERS HARRIMAN & CO.
("ADMINISTRATIVE AGENT AND LENDER")

By /s/ John D. Rogers
   -------------------------------------
Name: John D. Rogers
      ----------------------------------
Title: SVP
       ---------------------------------

TD BANKNORTH, N.A., FORMERLY KNOWN AS
BANKNORTH, N.A.
("DOCUMENTATION AGENT AND LENDER")

By /s/ Jeffrey R. Westling
   -------------------------------------
Name: Jeffrey R. Westling
      ----------------------------------
Title: Senior Vice President
       ---------------------------------

KEYBANK NATIONAL ASSOCIATION
("CO-SYNDICATION AGENT AND LENDER")

By /s/ Daniel DiMarco
   -------------------------------------
Name: Daniel DiMarco
      ----------------------------------
Title: Assistant Vice President
       ---------------------------------

BANK OF AMERICA, N.A., SUCCESSOR BY
MERGER TO FLEET NATIONAL BANK,
A BANK OF AMERICA COMPANY
("CO-SYNDICATION AGENT AND LENDER")

By /s/ Jean S. Manthorne
   -------------------------------------
Name: Jean S. Manthorne
      ----------------------------------
Title: Senior Vice President
       ---------------------------------

                                   Page 5 of 5

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