Document:

<PAGE>

                                                                    EXHIBIT 10.4

                      SERIES B CONVERTIBLE PREFERRED STOCK

                               PURCHASE AGREEMENT

                             DATED FEBRUARY 18, 2000

                                  BY AND AMONG

                                CORECHANGE, INC.

           AND THE PERSONS LISTED ON THE SCHEDULE OF PURCHASERS HERETO

<PAGE>

                          LIST OF DISCLOSURE SCHEDULES

Capitalization Schedule
Subsidiary Schedule
Restrictions Schedule
Financial Statements Schedule
Liabilities Schedule
Adverse Change Schedule
Developments Schedule
Assets Schedule
Taxes Schedule
Contracts Schedule
Intellectual Property Schedule
Litigation Schedule
Brokerage Schedule
Consents Schedule
Insurance Schedule
Employees Schedule
Employee Benefits Schedule
Compliance Schedule
Affiliated Transactions Schedule
Customers Schedule

<PAGE>

                                LIST OF EXHIBITS

Exhibit A - Certificate of Amendment of Certificate of Incorporation

Exhibit B - Registration Agreement

Exhibit C - Amended and Restated Stockholders Agreement

Exhibit D - Opinion of Counsel

<PAGE>

                               PURCHASE AGREEMENT

         THIS SERIES B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT (this
"AGREEMENT") is made as of February 18, 2000 by and among Corechange, Inc. a
Delaware corporation (the "COMPANY"), and the Persons listed on the SCHEDULE OF
PURCHASERS attached hereto (collectively referred to herein as the "FIRST
PURCHASERS" and individually as a "FIRST PURCHASER"). The First Purchasers and
any subsequent purchasers of shares of Series B Preferred who are made a party
to this Agreement pursuant to Section 1D hereof (the "SUBSEQUENT PURCHASERS")
are collectively referred to herein as the "PURCHASERS." Except as otherwise
indicated herein, capitalized terms used herein are defined in SECTION 6 hereof.

         The parties hereto agree as follows:

         SECTION 1. AUTHORIZATION AND CLOSING.

         1A. AUTHORIZATION OF THE SERIES B PREFERRED. The Company shall
authorize the issuance and sale to the Purchasers of its Series B Convertible
Preferred Stock, par value $0.01 per share (the "SERIES B PREFERRED"), each
having the powers, rights and preferences set forth in the Certificate of
Amendment of Certificate of Incorporation attached hereto as EXHIBIT A.

         1B. PURCHASE AND SALE OF THE SERIES B PREFERRED . At the Closing, the
Company shall sell to each Purchaser and, subject to the terms and conditions
set forth herein, each Purchaser shall purchase from the Company the number of
shares of Series B Preferred set forth opposite such Purchaser's name on the
SCHEDULE OF PURCHASERS attached hereto at a price of $5.837 per share. The sale
of the Series B Preferred shall constitute a separate sale hereunder as to each
such Purchaser.

         1C. THE CLOSING. Each closing of the separate purchases and sales of
the Series B Preferred under this Agreement (the "CLOSING") shall take place at
the offices of Kirkland & Ellis or at such other place as may be mutually
agreeable to the Company and each Purchaser at such Closing. At each Closing,
the Company shall deliver to each Purchaser at such Closing stock certificates
evidencing the Series B Preferred to be purchased by such Purchaser, registered
in such Purchaser's name, bearing the legend set forth in SECTION 7D, upon
payment of the purchase price therefor by a cashier's or certified check, by
wire transfer of immediately available funds to the Company's account, by
cancellation of the principal amount outstanding under the Company's 8%
Convertible Subordinated Notes and the interest which may be accrued and owing
thereon as set forth opposite each Purchaser's name on the Schedule of
Purchasers. Each Purchaser purchasing shares of Series B Preferred through the
cancellation of the 8% Notes shall surrender the original copy of their
respective 8% Notes to the Company at the Closing (except where such 8% Notes
although purchased was never issued) in the aggregate amount set forth opposite
such Purchaser's name on the SCHEDULE OF PURCHASERS.

                                       1
<PAGE>

         1D. FIRST CLOSING. At the First Closing (as defined below), subject to
the terms and conditions of this Agreement, the Company will sell and issue to
each of the First Purchasers, and each of the First Purchasers will purchase the
number of shares of Series B Preferred set forth opposite such First Purchaser's
name on the Schedule of Purchasers for the purchase price of $5.837 per share.
The first closing of the sale and purchase of the Series B Preferred (the "FIRST
CLOSING") shall be held at 10:00 a.m. on February 18, 2000 or at such other time
and date as are mutually agreeable to the Company and the First Purchasers.

         1E. SUBSEQUENT CLOSING. To the extent that at the First Closing the
Company does not sell and issue to the First Purchasers a total of 4,000,000
shares of Series B Preferred, the Company, may, but shall not be obligated to,
offer and sell up to a number of shares of Series B Preferred equal to the
difference between the number of shares of Series B Preferred sold and issued at
the First Closing and 4,000,000 shares (the "SUBSEQUENT SHARES") at a second
closing (the "SECOND CLOSING", and together with the First Closing, the
"CLOSINGS") to be held no later than April 15, 2000 at a price of $5.837 per
share. It shall be a condition to the consummation of the Second Closing that
the Subsequent Purchasers purchasing in such Second Closing shall become parties
to this Agreement by the execution and delivery of counterpart signature pages
in such form as may be acceptable to the Company and shall become subject to the
terms thereof.

         SECTION 2. CONDITIONS OF EACH PURCHASER'S OBLIGATION AT THE CLOSING.
The obligation of each Purchaser to purchase and pay for the Series B Preferred
at the Closing is subject to the satisfaction (or waiver by such Purchaser) as
of such Closing of the following conditions:

         2A. REPRESENTATIONS AND WARRANTIES; COVENANTS. The representations and
warranties contained in SECTION 5 hereof shall be true and correct in all
material respects at and as of the First Closing as though then made, except to
the extent of changes expressly contemplated herein resulting from the
transactions contemplated herein, and the Company shall have performed in all
material respects all of the covenants required to be performed by it hereunder
prior to the Closing.

         2B. AMENDMENT OF CERTIFICATE OF INCORPORATION. The Company's
Certificate of Incorporation shall have been amended to include the provisions
set forth in EXHIBIT A hereto, shall be in full force and effect under the laws
of Delaware as of the Closing as so amended and shall not have been further
amended or modified.

         2C. REGISTRATION AGREEMENT. The Company and the First Purchasers shall
have entered into a registration agreement in form and substance as set forth in
EXHIBIT B attached hereto (the "REGISTRATION AGREEMENT"), and the Registration
Agreement shall be in full force and effect as of the Closing.

         2D. STOCKHOLDERS AGREEMENT. The Company, the First Purchasers, each
holder of Series A Preferred, and Ulf Arnetz shall have entered into a
stockholders agreement in form and substance set forth in EXHIBIT C attached
hereto (the "STOCKHOLDERS AGREEMENT") which amends, restates and supercedes
the Stockholders Agreement dated January 21, 1998 as amended, and the
Stockholders Agreement shall be in full force and effect as of the Closing.

                                       2
<PAGE>

         2E. SALE OF SERIES B PREFERRED TO EACH PURCHASER. The Company shall
have simultaneously sold to each Purchaser the Series B Preferred to be
purchased by such Purchaser hereunder at such Closing and shall have received
payment therefor in full.

         2F. KEY-MAN LIFE INSURANCE. The Company shall have obtained a key-man
life insurance policy on the life of Ulf Arnetz, in the face amount of
$2,000,000, which policy shall be in full force and effect as of the First
Closing. Such insurance policy shall name the Company as beneficiary and shall
provide that such policy may not be canceled unless the insurance carrier gives
at least 30 days prior written notice of such cancellation to the Company's
Board of Directors.

         2G. SECURITIES LAW COMPLIANCE. The Company shall have made all filings
under all applicable federal and state securities laws necessary to consummate
the issuance of the Series B Preferred pursuant to this Agreement in compliance
with such laws.

         2H. OPINION OF THE COMPANY'S COUNSEL. Each Purchaser shall have
received from counsel for the Company, an opinion with respect to the matters
set forth in EXHIBIT D attached hereto, which shall be addressed to each
Purchaser, dated the date of the Closing.

         2I. CLOSING DOCUMENTS. The Company shall have delivered to each
Purchaser all of the following documents:

             i. a certificate signed by the Company's President or chief
        financial officer, dated the date of the Closing, stating that the
        conditions specified in SECTION 1 and SECTIONS 2A through 2H, inclusive,
        have been fully satisfied;

             ii. certified copies of (a) the resolutions duly adopted by the
        Company's board of directors authorizing the execution, delivery and
        performance of this Agreement, the Registration Agreement, the
        Stockholders Agreement and each of the other agreements contemplated
        hereby, the filing of the amendment to the Certificate of Incorporation
        referred to in SECTION 2B, the issuance and sale of the Series B
        Preferred, the reservation for issuance upon conversion of the Series B
        Preferred shares of Common Stock and the consummation of all other
        transactions contemplated by this Agreement, and (b) the resolutions
        duly adopted by the Company's stockholders adopting the Certificate of
        Amendment of Certificate of Incorporation referred to in SECTION 2B;

             iii. certified copies of the Certificate of Incorporation referred
        to in SECTION 2B and the Company's amended bylaws, each as in effect at
        the Closing;

             iv. copies of all third party and governmental consents, approvals
        and filings required in connection with the consummation of the
        transactions hereunder (including, without limitation, all blue sky law
        filings and waivers of all preemptive rights and rights of first
        refusal);

                                       3
<PAGE>

             v. for the Purchasers that are SBICs, duly completed and executed
        SBA Forms 480, 652 and 1031 (Part A) and a written statement from the
        Company regarding its intended use of proceeds from the financing; and
        a list after giving effect to the transactions contemplated by this
        Agreement of (a) the name of each of the Company's directors, (b) the
        name and title of each of the Company's officers and (c) the name of
        each of the Company's stockholders setting forth the number and Series
        of shares held; and

             vi. such other documents relating to the transactions contemplated
        by this Agreement as the Purchasers' special counsel may reasonably
        request.

         2J. PROCEEDINGS. All corporate and other proceedings taken or required
to be taken by the Company in connection with the transactions contemplated
hereby to be consummated at or prior to the Closing and all documents incident
thereto shall be reasonably satisfactory in form and substance to Purchasers'
special counsel.

         2K. WAIVER. Any condition specified in this SECTION 2 may be waived if
consented to by a Purchaser; provided that no such waiver shall be effective
against any Purchaser unless it is set forth in a writing executed by such
Purchaser.

         2L. EXPENSES. At the Closing, the Company shall have reimbursed the
Purchasers for the fees and expenses of their special counsel as provided in
SECTION 7B hereof.

         2M. COMPLIANCE WITH APPLICABLE LAWS. The purchase of Series B Preferred
by each Purchaser hereunder shall not be prohibited by any applicable law or
governmental rule or regulation and shall not subject such Purchaser to any
penalty, liability or, in such Purchaser's sole judgment, other onerous
commercially unreasonable condition under or pursuant to any applicable law or
governmental rule or regulation, and the purchase of the Series B Preferred by
each Purchaser hereunder shall be permitted by laws, rules and regulations of
the jurisdictions and governmental authorities and agencies to which such
Purchaser is subject.

         SECTION 3. COVENANTS.

         3A. FINANCIAL STATEMENTS AND OTHER INFORMATION. The Company shall
deliver to each Purchaser (so long as such Purchaser owns not less than 10% the
Underlying Common Stock owned by such Purchaser immediately after the Closing at
which such Purchaser purchased Series B Preferred, subject to adjustment for
stock splits, stock dividends, recapitalizations and similar events):

             i. as soon as available but in any event within 30 days after the
        end of each monthly accounting period in each fiscal year, unaudited
        consolidating and consolidated statements of income and cash flows of
        the Company and its Subsidiaries for such monthly

                                       4
<PAGE>

        period and for the period from the beginning of the fiscal year to the
        end of such month, and unaudited consolidating and consolidated balance
        sheets of the Company and its Subsidiaries as of the end of such monthly
        period, setting forth in each case comparisons to the Company's annual
        budget and to the corresponding period in the preceding fiscal year, and
        all such statements shall be prepared in accordance with generally
        accepted accounting principles, consistently applied, subject to the
        absence of footnote disclosures and to normal year-end adjustments for
        recurring accruals, and shall be certified by the Company's chief
        financial officer;

             ii. within 45 days after the end of each quarterly accounting
        period in each fiscal year, an Officer's Certificate stating that the
        Company is not aware of any Event of Noncompliance in existence or, if
        any Event of Noncompliance exists, specifying the nature and period of
        existence thereof and what actions the Company and its Subsidiaries have
        taken and propose to take with respect thereto;

             iii. within 120 days after the end of each fiscal year,
        consolidating and consolidated statements of income and cash flows of
        the Company and its Subsidiaries for such fiscal year, and consolidating
        and consolidated balance sheets of the Company and its Subsidiaries as
        of the end of such fiscal year, setting forth in each case comparisons
        to the Company's annual budget and to the preceding fiscal year, all
        prepared in accordance with generally accepted accounting principles,
        consistently applied, and accompanied by (a) with respect to the
        consolidated portions of such statements, an opinion of an independent
        accounting firm of recognized national standing;

             iv. prior to the beginning of each fiscal year, an annual budget
        prepared on a monthly basis for the Company and its Subsidiaries for
        such fiscal year (displaying anticipated statements of income and cash
        flows and balance sheets), and promptly upon preparation thereof any
        other significant budgets prepared by the Company and any revisions of
        such annual or other budgets;

             v. promptly (but in any event within five business days) after the
        discovery of receipt of notice of any Event of Noncompliance, an
        Officer's Certificate specifying the nature and period of existence
        thereof and what actions the Company and its Subsidiaries have taken and
        propose to take with respect thereto;

             vi. within ten days after transmission thereof, copies of all
        financial statements, proxy statements, reports and any other general
        written communications which the Company sends to its stockholders
        generally and copies of all registration statements and all regular,
        special or periodic reports which it files, or any of its officers or
        directors file with respect to the Company, with the Securities and
        Exchange Commission or with any securities exchange on which any of its
        securities are then listed, and copies of all press releases and other
        statements made available generally by the Company to the public
        concerning material developments in the Company's and its Subsidiaries'
        businesses; and

                                       5
<PAGE>

             vii. with reasonable promptness, such other information and
        financial data concerning the Company and its Subsidiaries as any Person
        entitled to receive information under this SECTION 3A may reasonably
        request.

Each of the financial statements and related documents referred to in
subparagraph (i) through (iii) shall be true and correct in all material
respects as of the dates and for the periods stated therein, subject in the case
of the unaudited financial statements to changes resulting from normal year-end
adjustments.

Notwithstanding the foregoing, the provisions of this SECTION 3A shall cease to
be effective so long as the Company (a) is subject to the periodic reporting
requirements of the Securities Exchange Act and continues to comply with such
requirements and (b) promptly provides to each Person otherwise entitled to
receive information pursuant to this SECTION 3A all reports and other materials
filed by the Company with the Securities and Exchange Commission pursuant to the
periodic reporting requirements of the Securities Exchange Act; provided that so
long as 10% of the Series B Preferred remains outstanding the Company shall
continue to deliver to each Purchaser the information specified in SECTIONS
3A(ii), 3A(iii) and 3A(v).

For purposes of SECTIONS 3A, 3B and 3C hereof, the term "PURCHASER" shall
include any direct or indirect partner or equity investor in a Purchaser who
received shares of Series B Preferred or Underlying Common Stock pursuant to a
distribution from or a liquidation of such Purchaser.

         3B. INSPECTION OF PROPERTY. The Company shall permit any
representatives designated by any Purchaser (so long as such Purchaser holds any
at least 10% of the Underlying Common Stock acquired by such Purchaser at
Closing, subject to adjustment for stock splits, stock dividends,
recapitalizations and similar events) upon reasonable notice and during normal
business hours and at such other times as any such holder may reasonably
request, to (i) visit and inspect any of the properties of the Company and its
Subsidiaries, (ii) examine the corporate and financial records of the Company
and its Subsidiaries and make copies thereof or extracts therefrom and (iii)
discuss the affairs, finances and accounts of any such corporations with the
directors, officers, key employees and independent accountants of the Company
and its Subsidiaries. The presentation of an executed copy of this Agreement by
any Purchaser or any holder of Underlying Common Stock to the Company's
independent accountants shall constitute the Company's permission to its
independent accountants to participate in discussions with such Persons.

         3C. RESTRICTIONS. The Company shall not, without the prior written
consent of the holders of a majority of the Underlying Common Stock then
outstanding:

             i. pay any dividend or make any other distribution to the holders
        of Common Stock;

             ii. acquire all or substantially all of the assets of, or acquire a
        controlling equity interest in, any other person or business entity;

                                       6
<PAGE>

             iii. directly or indirectly redeem, purchase or otherwise acquire,
        or permit any Subsidiary to redeem, purchase or otherwise acquire, any
        of the Company's or any Subsidiary's capital stock or other equity
        securities (including, without limitation, warrants, options and other
        rights to acquire such capital stock or other equity securities) other
        than the Series A Preferred or Series B Preferred pursuant to the terms
        of the Amended and Restated Certificate of Incorporation or directly or
        indirectly redeem, purchase or make any payments with respect to any
        stock appreciation rights, phantom stock plans or similar rights or
        plans, except for repurchases of Common Stock from employees, directors,
        officers, consultants and advisors of the Company and its Subsidiaries
        upon the termination of employment, retention, or disability of such an
        individual pursuant to arrangements approved by the Company's Board of
        Directors;

             iv. except as expressly contemplated by this Agreement, authorize,
        issue or enter into any agreement providing for the issuance (contingent
        or otherwise) of (a) any notes or debt securities containing equity
        features (including, without limitation, any notes or debt securities
        convertible into or exchangeable for capital stock or other equity
        securities, issued in connection with the issuance of capital stock or
        other equity securities or containing profit participation features),
        that are senior to or pari passu with the Series B Preferred with
        respect to the payment of dividends, redemptions or distributions upon
        liquidation or otherwise; or (b) any capital stock or Equity
        Equivalents, in either case which are senior to or pari passu with the
        Series B Preferred with respect to the payment of dividends, redemptions
        or distributions upon liquidation or otherwise or any shares of phantom
        stock, stock appreciation rights or any similar instruments; or (c) any
        other capital stock or equity securities (or any other securities
        convertible into or exchangeable for any capital stock or other equity
        securities), whether or not subordinated to the Series B Preferred,
        other than as permitted under SECTION 3C(xv) or SECTION 3C(xvi) herein.

             v. make, or permit any Subsidiary to make, any loans or advances
        to, guarantees for the benefit of, or Investments in, any Person (other
        than a Wholly-Owned Subsidiary established under the laws of a
        jurisdiction of the United States or any of its territorial
        possessions), except for (a) reasonable advances to employees in the
        ordinary course of business, and (b) Investments having a stated
        maturity no greater than one year from the date the Company makes such
        Investment in (1) obligations of the United States government or any
        agency thereof or obligations guaranteed by the United States
        government, (2) certificates of deposit of commercial banks having
        combined capital and surplus of at least $50 million or (3) commercial
        paper with a rating of at least "PRIME-1" by Moody's Investors
        Service, Inc.;

             vi. merge or consolidate with any Person which results in the
        Company's stockholders as of immediately prior to such merger or
        consolidation (and without regard to any stockholders that acquired
        shares in connection therewith or in contemplation thereof) owning less
        than 50% of the merged entity by vote or permit any Subsidiary to merge
        or consolidate with any Person (other than a Wholly Owned Subsidiary);

                                       7
<PAGE>

             vii. sell, lease, pledge or otherwise dispose of, or permit any
        Subsidiary to sell, lease or otherwise dispose of, more than fifty
        percent (50%) of the consolidated assets of the Company and its
        Subsidiaries (computed on the basis of book value, determined in
        accordance with generally accepted accounting principles consistently
        applied, or fair market value, determined by the Company's board of
        directors in its reasonable good faith judgment) in any transaction or
        series of related transactions (other than sales of inventory in the
        ordinary course of business);

             viii. liquidate, dissolve or effect a recapitalization or
        reorganization in any form of transaction (including, without
        limitation, any reorganization into a limited liability company, a
        partnership or any other non-corporate entity which is treated as a
        partnership for federal income tax purposes);

             ix. become subject to, or permit any of its Subsidiaries to become
        subject to (including, without limitation, by way of amendment to or
        modification of) any agreement or instrument which by its terms would
        (under any circumstances) restrict the Company's right to perform the
        provisions of this Agreement, the Registration Agreement, the
        Stockholders Agreement, the Amended and Restated Certificate of
        Incorporation or the Company's bylaws (including, without limitation,
        provisions relating to the declaration and payment of dividends on and
        the making of redemptions of the Series B Preferred, and conversions of
        the Series B Preferred);

             x. except as expressly contemplated by this Agreement, make any
        amendment to the Certificate of Incorporation, as amended;

             xi. create, incur, assume or suffer to exist, or permit any
        Subsidiary to create, incur, assume or suffer to exist, Indebtedness in
        excess of $3,000,000 in the aggregate;

             xii. change the authorized size of its board of directors from
        eight (8) members;

             xiii. issue or sell any shares of the capital stock, or rights to
        acquire shares of the capital stock, of any Subsidiary to any Person
        other than the Company or a Wholly Owned Subsidiary;

             xiv. register any shares of Common Stock pursuant to a public
        offering not constituting a Qualified Public Offering (as defined in the
        Company's Amended and Restated Certificate of Incorporation), or
        register any Subsidiary's equity;

             xv. issue or grant under the Company's stock incentive plan, stock
        option plan, stock purchase plan, restricted stock plan, stock bonus
        arrangement or other similar stock plan or agreement approved by the
        Company's Board of Directors any option, warrant, Common Stock (other
        than Common Stock sold by the Company prior to the date of this

                                       8
<PAGE>

        Agreement for full fair market value in an arms-length transaction) or
        Equity Equivalent to any employee, officer, director, consultant or
        advisor unless such issuance or grant: (i) provides cliff vesting after
        one year (25%), with the remaining portion vested on a straight line
        monthly basis over at least an additional three year period; (ii)
        provides a right of first refusal in favor of the Company to repurchase
        any Common Stock or Equity Equivalents derived from such issuance or
        grant at a bona fide third party offer price; and (iii) restricts the
        transfer and sale of such option, warrant, Common Stock or Equity
        Equivalent (including any securities derived therefrom) for a period of
        180 days following any initial public offering of the Company's equity
        securities, as may be required by Company's underwriters; or

             xvi. issue or grant to any employee, officer, director, consultant
        or advisor under the Company's stock incentive plan, stock option plan,
        stock purchase plan, restricted stock plan, stock bonus arrangement or
        other similar stock plan or agreement approved by the Company's Board of
        Directors any options, warrants, Common Stock (other than Common Stock
        sold by the Company prior to the date of this Agreement for full fair
        market value in an arms-length transaction) or Equity Equivalents that
        in the aggregate with all pre-existing options, warrants, Common Stock
        and Equivalents issued or granted at any time under such plans and
        agreements exceed 20% of the Company's issued and outstanding Common
        Stock (including any issued and outstanding convertible securities, on
        an as-if converted basis).

         3D. AFFIRMATIVE COVENANTS. The Company shall, and shall cause each
Subsidiary to, unless it has received the prior written consent of the holders
of a majority of the outstanding Underlying Common Stock:

             i. at all times cause to be done all things necessary to maintain,
        preserve and renew its corporate existence and all material licenses,
        authorizations and permits that the Company believes, in its reasonable
        discretion, necessary to the conduct of its businesses;

             ii. maintain and keep its properties in good repair, working order
        and condition, and from time to time make all repairs, renewals and
        replacements that the Company believes, in its reasonable discretion, to
        be necessary or desirable so that its businesses may be property and
        advantageously conducted at all times;

             iii. pay and discharge when due and payable all taxes, assessments
        and governmental charges imposed upon its properties or upon the income
        or profits therefrom (in each case before the same becomes delinquent
        and before penalties accrue thereon) and all claims for labor, materials
        or supplies which if unpaid would by law become a Lien upon any of its
        property and would reasonably be expected to have a material adverse
        effect upon the financial condition, operating results, assets,
        operations or business prospects of the Company and its Subsidiaries
        taken as a whole, unless and to the extent that the same are being
        contested in good faith and by appropriate proceedings and adequate
        reserves (as determined in accordance with generally accepted
        accounting principles, consistently applied) have been established
        on its books with respect thereto;

                                       9
<PAGE>

             iv. comply in all material respects with all other obligations
        which it incurs pursuant to any contract or agreement, whether oral or
        written, express or implied, as such obligations become due to the
        extent to which the failure to so comply would reasonably be expected to
        have a material adverse effect upon the financial condition, operating
        results, assets, operations or business prospects of the Company and its
        Subsidiaries taken as a whole, unless and to the extent that the same
        are being contested in good faith and by appropriate proceedings and
        adequate reserves (as determined in accordance with generally accepted
        accounting principles, consistently applied) have been established on
        its books with respect thereto or unless determined otherwise by vote of
        the Board of Directors;

             v. comply in all material respects with all applicable laws, rules
        and regulations of all governmental authorities, the violation of which
        would reasonably be expected to have a material adverse effect upon the
        financial condition, operating results, assets, operations or business
        prospects of the Company and its Subsidiaries taken as a whole;

             vi. apply for and continue in force with good and responsible
        insurance companies adequate insurance covering risks of such types and
        in such amounts as are commercially reasonable for corporations of
        similar size engaged in similar lines of business as determined by the
        Board of Directors of the Company in its reasonable discretion;

             vii. maintain the key-man life insurance policies referred to in
        SECTION 2F hereof and maintain officers and directors liability
        insurance coverage of at least $2,000,000;

             viii. maintain proper books of record and account which present
        fairly in all material respects its financial condition and results of
        operations and make provisions on its financial statements for all such
        proper reserves as in each case are required in accordance with
        generally accepted accounting principles, consistently applied; and

             ix. enter into and maintain nondisclosure, proprietary rights and
        noncompete agreements with its key employees in accordance with the
        Company's past practices.

         3E. COMPLIANCE WITH AGREEMENTS. The Company shall perform and observe
in all material respects (i) all of its obligations to each holder of the Series
B Preferred and all of its obligations to each holder of the Underlying Common
Stock set forth in the Certificate of Amendment of Certificate of Incorporation
and the Company's bylaws, (ii) all of its obligations to each holder of
Registrable Securities set forth in the Registration Agreement, and (iii) all of
its obligations to each party under the Stockholders Agreement.

                                       10
<PAGE>

         3F. CURRENT PUBLIC INFORMATION. At all times after the Company has
filed a registration statement with the Securities and Exchange Commission
pursuant to the requirements of either the Securities Act or the Securities
Exchange Act, the Company shall use its best efforts to file all reports
required to be filed by it under the Securities Act and the Securities Exchange
Act and the rules and regulations adopted by the Securities and Exchange
Commission thereunder and shall take such further action as any holder or
holders of Restricted Securities may reasonably request, all to the extent
required to enable such holders to sell Restricted Securities pursuant to (i)
Rule 144 adopted by the Securities and Exchange Commission under the Securities
Act (as such rule may be amended from time to time) or any similar rule or
regulation hereafter adopted by the Securities and Exchange Commission or (ii) a
registration statement on Form S-2 or S-3 or any registration form hereafter
adopted by the Securities and Exchange Commission that replaces such Form S-2 or
S-3. Upon request, the Company shall deliver to any holder of Restricted
Securities a written statement as to whether it has complied with such
requirements.

         3G. SBIC REGULATORY PROVISIONS.

             i. Within 75 days after the Closing and each subsequent Financing
        hereunder by each holder of Series B Preferred or Underlying Common
        Stock which is an SBIC (an "SBIC HOLDER") and at the end of each quarter
        thereafter until all of the proceeds from the Financing hereunder have
        been used by the Company and its Subsidiaries, the Company shall deliver
        to each SBIC Holder a written statement certified by the Company's
        president or chief financial officer describing in reasonable detail the
        use of the proceeds of the Financing hereunder by the Company and its
        Subsidiaries. In addition to any other rights granted hereunder, the
        Company shall grant each SBIC Holder and the United States Small
        Business Administration (the "SBA") access to the Company's records for
        the purpose of verifying the use of such proceeds.

             ii. Promptly after the end of each fiscal year (but in any event
        prior to February 28 of each year), the Company shall deliver to each
        SBIC Holder a written assessment of the economic impact of the SBIC
        Holder's investment in the Company, specifying the full-time equivalent
        jobs created or retained in connection with the investment, the impact
        of the investment on the businesses of the Company in terms of expanded
        revenue and taxes and other economic benefits resulting from the
        investment (including, but not limited to, technology development or
        commercialization, minority business development, urban or rural
        business development and expansion of exports).

             iii. For purposes of this Section, the term "FINANCING" shall have
        the meaning set forth in the SBIC Regulations.

         3H. RESERVATION OF COMMON STOCK. The Company shall at all times reserve
and keep available out of its authorized but unissued shares of Common Stock,
solely for the purpose of issuance upon the conversion of the Series B
Preferred, a number of shares of Common Stock equal to the number of shares
thereof which are issuable upon conversion of all outstanding Series B
Preferred. All shares of Common Stock which are so issuable shall, when issued
pursuant to the

                                       11
<PAGE>

terms of and for the consideration contemplated by this Agreement, be duly and
validly issued, fully paid and nonassessable and free from all taxes, liens and
charges. The Company shall take all such actions as may be necessary to assure
that all such shares of Common Stock may be so issued without violation of any
applicable law or governmental regulation or any requirements of any domestic
securities exchange upon which shares of Common Stock may be listed (except for
official notice of issuance which shall be immediately transmitted by the
Company upon issuance).

         3I. INTELLECTUAL PROPERTY RIGHTS. The Company shall, and shall cause
each Subsidiary to, possess and maintain all Intellectual Property Rights
material to the conduct of their respective businesses as the Company shall
determine in its reasonable discretion, and own all right, title and interest in
and to, or have a valid license for, all such Intellectual Property Rights.
Neither the Company nor any Subsidiary shall take any action, or fail to take
any action, that would result in the invalidity, abandonment, misuse or
unenforceability of such Intellectual Property Rights or which would infringe
upon or misappropriate any rights of other Persons.

         3J. FIRST REFUSAL RIGHTS. If the Company authorizes the issuance or
sale of any shares of Common Stock or Equity Equivalents, the Company shall
first offer to sell to each holder of Underlying Common Stock a portion of such
stock or Equity Equivalents equal to the quotient determined by dividing (1) the
number of shares of Underlying Common Stock held by such holder immediately
prior to such issuance by (2) the sum of the total number of shares of
Underlying Common Stock immediately prior to such issuance and the number of
shares of Common Stock outstanding (including Common Stock reserved for
Preferred Stock, Series I Preferred Stock, Series II Preferred Stock and Series
III Preferred Stock) immediately prior to such issuance which are not shares of
Underlying Common Stock; provided, however, that the following issuances shall
be exempted from the Company's obligation to offer shares to such holder: (a)
issuance of Common Stock, options or Equity Equivalents to the Company's
employees, directors, officers, advisors and consultants to the extent
permissible under SECTIONS 3C(xv) and 3C(xvi), (b) issuance of Common Stock upon
the conversion of any Preferred Stock or upon the conversion of any other
presently outstanding convertible debt or other convertible securities of the
Company, (c) issuance of capital stock upon the exercise of any presently
outstanding warrants, (d) issuance of up to an additional 196,774 shares of
Common Stock to Cambridge Technology Partners, (e) issuance of up to 38,382
shares of Common Stock to Benjamin Weissberg and Jonathan Leitersdorf pursuant
to the Agreement dated June 30, 1997 between the corporation and them, (f)
issuance of up to 15,000 shares of Common Stock to Gustin Partners pursuant to
an oral agreement between Gustin Partners and the corporation, and (g) issuance
of up to 15,000 shares of Common Stock to strategic partners of the Company, (h)
issuance by way of a dividend or other distribution on shares of Preferred Stock
in accordance with the Amended and Restated Certificate of Incorporation, (i)
securities offered to the public pursuant to a registration statement filed
pursuant to the Securities Act, (j) sale of the Subsequent Shares pursuant to
this Agreement, and (k) the issuance of Common Stock or Equity Equivalents in
exchange for the capital stock of a third party in an arms length acquisition
transaction. Each holder of Underlying Common Stock shall be entitled to
purchase such stock or securities at the most favorable price and on the most
favorable terms as such stock or securities are to be offered to any other
Person. The purchase price for all stock and securities offered to the holders
of the Underlying Common Stock shall be payable on terms no less favorable to
such holders

                                       12
<PAGE>

than those offered to any other Person. The right of first refusal set forth in
this SECTION 3J is nonassignable, except that (I) such right is assignable in
connection with the transfer of the Series A Preferred or Series B Preferred
shares to any wholly-owned subsidiary or parent of, or to any corporation or
entity which is, within the meaning of the Securities Act, controlling,
controlled by or under common control with the holder of such Series B
Preferred, and (ii) such right is assignable in connection with the transfer of
Series B Preferred shares to the partners of the holder of such shares; provided
that the right of first refusal granted hereunder may not be assigned unless (A)
the transferee has certified to the Company that he or it is an "accredited
investor" within the meaning of Rule 501(a) under the Securities Act, (B) the
Company is given written notice by the transferee at the time of such transfer
stating the name and address of the transferee and identifying the securities
with respect to which such rights are being assigned, and (C) the transferee has
delivered to the Company a written instrument by which such transferee agrees to
be bound by the obligations imposed under this SECTION 3J to the same extent as
if such transferee were a party hereto.

             i. In order to exercise its purchase rights hereunder, a holder of
        Underlying Common Stock must within twenty (20) days after receipt of
        written notice from the Company describing in reasonable detail the
        stock or securities being offered, the purchase price thereof, the
        payment terms and such holder's percentage allotment deliver a written
        notice to the Company describing its election hereunder. If all of the
        stock and securities offered to the holders of Underlying Common Stock
        is not fully subscribed by such holders, the remaining stock and
        securities shall be reoffered by the Company to the holders purchasing
        their full allotment upon the terms set forth in this Section, except
        that such holders must exercise their purchase rights within five days
        after receipt of such reoffer.

             ii. Upon the expiration of the offering periods described above,
        the Company shall be entitled to sell such stock or securities which the
        holders of Underlying Common Stock have not elected to purchase during
        the ninety (90) days following such expiration on terms and conditions
        no more favorable to the purchasers thereof than those offered to such
        holders. Any stock or securities offered or sold by the Company after
        such 90-day period must be reoffered to the holders of Underlying Common
        Stock pursuant to the terms of this Section.

         3K. REGULATORY COMPLIANCE COOPERATION. In the event that any Purchaser
determines that it has a Regulatory Problem (as defined below), such Purchaser
shall have the right to transfer (subject to compliance with applicable
securities laws and regulations) its Preferred Stock without regard to any
restrictions on transfer set forth in this Agreement or the Stockholders
Agreement (provided that the transferee agrees in writing to become a party to
this Agreement), and the Company shall take all such actions as are reasonably
requested by such Purchaser in order to (a) effectuate and facilitate any
transfer by such Purchaser of any securities of the Company then held by such
Purchaser to any Person designated by such Purchaser, (b) permit such Purchaser
(or any Affiliate of such Purchaser) to exchange all or any portion of the
Preferred Stock then held by such Purchaser on a share-for-share basis for
shares of a class of nonvoting preferred stock of the Company, which nonvoting
preferred stock shall be identical in all respects to such Preferred Stock,
except that such preferred stock shall be nonvoting and shall be convertible, at
such Purchaser's sole

                                       13
<PAGE>

discretion, into either Common Stock or the non-voting Common Stock described in
clause (c), below, on such terms as are requested by such Purchaser in light of
regulatory considerations then prevailing, (c) permit such Purchaser (or any
Affiliate of such Purchaser) to exchange all or any portion of the Common Stock
then held by such Purchaser on a share-for-share basis for shares of a class of
nonvoting common stock of the Company, which nonvoting common stock shall be
identical in all respects to such Common Stock, except that such common stock
shall be nonvoting and shall be convertible into Common Stock on such terms as
are requested by such Purchaser in light of regulatory considerations then
prevailing and (d) amend this Agreement, the Articles of Incorporation and other
related agreements to effectuate and reflect the foregoing. Such actions may
include, but shall not necessarily be limited to:

             i. entering into such additional agreements as are requested by
        such Purchaser to permit any Person(s) designated by such Purchaser to
        exercise any voting power which is relinquished by such Purchaser upon
        any exchange of Common Stock for nonvoting stock of the Company; and

             ii. entering into such additional agreements, adopting such
        amendments to the Articles of Incorporation and bylaws of the Company
        and taking such additional actions as are reasonably requested by such
        Purchaser in order to effectuate the intent of the foregoing.

         For purposes of this Agreement, a "REGULATORY PROBLEM" means any set of
facts or circumstances wherein it has been asserted by any governmental
regulatory agency (or such Purchaser believes that there is a substantial risk
of such assertion) that such Purchaser and its Affiliates are not entitled to
hold, or exercise any significant right with respect to, the Preferred Stock or
the Common Stock.

         3L. PUBLIC DISCLOSURES. The Company shall not, nor shall it permit any
Subsidiary to, disclose any Purchaser's name or identity as an investor in the
Company in any press release or other public announcement or in any document or
material filed with any governmental entity, without the prior written consent
of such Purchaser, unless such disclosure is required by applicable law or
governmental regulations or by order of a court of competent jurisdiction, in
which case prior to such disclosure Company shall provide to such Purchaser in
reasonable detail the proposed content of such disclosure and shall permit the
Purchaser to review and comment upon the form and substance of such disclosure.

         3M. TERMINATION OF COVENANTS. The covenants of the Company contained in
this SECTION 3 shall terminate upon consummation by the Company of a Qualified
Public Offering (as defined in the Company's Amended and Restated Certificate of
Incorporation) provided, however, that the covenants contained in SECTIONS 3A
(to the extend specified therein), 3E, 3G and 3K shall survive with respect to a
Purchaser for so long as such Purchaser continues to own any Underlying Common
Stock, and the covenants contained in SECTION 3H shall survive with respect to a
Purchaser for so long as such Purchaser continues to own any Preferred Stock
purchased pursuant to this Agreement.

                                       14
<PAGE>

         3N. OTHER COVENANTS SUPERCEDED. The covenants set forth in this SECTION
3 shall supercede (as of the First Closing) all of the Company's covenants set
forth Section 7 of the Purchase Agreement between the Company and HarbourVest
Venture Partners V - Direct Fund L.P. dated January 21, 1998, which covenants
shall be terminated as of the date hereof, and HVP as the Purchaser thereunder
shall have all the rights with respect to its Series A Preferred Stock as are
set forth in this SECTION 3.

         SECTION 4. TRANSFER OF RESTRICTED SECURITIES.

         4A. REQUIREMENTS FOR TRANSFER.

             i. Restricted Securities shall not be sold or transferred unless
        either (a) they first shall have been registered under the Securities
        Act, or (b) the Company first shall have been furnished with an opinion
        of legal counsel, reasonably satisfactory to the Company, to the effect
        that such sale or transfer is exempt from the registration requirements
        of the Securities Act.

             ii. Notwithstanding the foregoing, no registration or opinion of
        counsel shall be required for (a) a transfer by a Purchaser that is a
        corporation to a Wholly-Owned Subsidiary of such corporation, a transfer
        by a Purchaser that is a partnership to a partner of such partnership or
        a retired partner of such partnership who retires after the date hereof,
        or to the estate of any such partner or retired partner, or a transfer
        by a Purchaser that is a limited liability company to a member of such
        limited liability company or a retired member who resigns after the date
        hereof or to the estate of any such member or retired member; provided
        that the transferee in each of the foregoing cases shall first agree in
        writing to be subject to the terms and conditions of this SECTION 4A to
        the same extent as if it were the original Purchaser hereunder, or (b)a
        transfer made in accordance with Rule 144 under the Securities Act.

         4B. LEGEND. Each certificate representing Restricted Securities shall
bear a legend substantially in the following form:

        "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED,
        SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND
        UNTIL SUCH SHARES ARE REGISTERED UNDER THE ACT OR AN OPINION OF
        COUNSEL SATISFACTORY TO THE COMPANY IS OBTAINED TO THE EFFECT THAT
        SUCH REGISTRATION IS NOT REQUIRED."

                                       15
<PAGE>

         4C. LEGEND REMOVAL. If any Restricted Securities become eligible for
sale pursuant to Rule 144(k), the Company shall, upon the request of the holder
of such Restricted Securities, remove the legend set forth in SECTION 4B from
the certificates for such Restricted Securities.

         SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         As a material inducement to the Purchasers to enter into this Agreement
and purchase the Series B Preferred hereunder, the Company hereby represents and
warrants that, except to the extent set forth on the Disclosure Schedules
attached hereto:

         5A. ORGANIZATION, CORPORATE POWER AND LICENSES. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of Delaware and is qualified to do business in every jurisdiction in which its
ownership of property or conduct of business requires it to qualify and in which
the failure to so qualify would have a Material Adverse Effect. The Company
possesses all requisite corporate power and authority and all material licenses,
permits and authorizations necessary to own and operate its properties, to carry
on its businesses as now conducted and presently proposed to be conducted and to
carry out the transactions contemplated by this Agreement. The copies of the
Company's and each Subsidiary's charter documents and bylaws which have been
furnished to the Purchasers' special counsel reflect all amendments made thereto
at any time prior to the date of this Agreement and are correct and complete.

         5B. CAPITAL STOCK AND RELATED MATTERS.

             i. As of the Closing and immediately thereafter, the authorized
        capital stock of the Company shall consist of (a) 413,965 shares of
        Series I Preferred all of which shall be issued and outstanding, (b)
        336,021 shares of Series II Preferred all of which shall be issued and
        outstanding, (c) 215,000 shares of Series III Preferred of which 200,032
        shares shall be issued and outstanding, (d) 2,884,598 shares of Series A
        Preferred all of which shall be issued and outstanding, (e) 4,000,000
        shares of Series B Preferred of which [3,033,878] shall be issued and
        outstanding, and the remainder of which shall be reserved for future
        issuances of Series B Preferred, and (f) 15,000,000 shares of Common
        Stock, of which 4,097,171 shares shall be issued and outstanding,
        7,849,584 shares shall be reserved for issuance upon conversion of the
        Preferred Stock and 950,266 shares shall be reserved for issuance upon
        exercise of all other Equity Equivalents. All of the issued and
        outstanding shares of the Company's capital stock have been duly
        authorized, are validly issued, fully paid, and nonassessable, and are
        not subject to, nor were they issued in violation of, any preemptive
        rights or rights of first refusal. As of the First Closing, neither the
        Company nor any Subsidiary shall have outstanding any capital stock or
        Equity Equivalents, nor shall the Company or any Subsidiary have
        outstanding any rights or options to subscribe for or to purchase its
        capital stock or Equity Equivalents or any oral or written agreement
        related thereto, except for the Preferred Stock and except as set forth
        on the attached "CAPITALIZATION SCHEDULE." The CAPITALIZATION SCHEDULE
        accurately sets forth the following information with

                                       16
<PAGE>

        respect to all outstanding Capital Stock and Equity Equivalents: the
        holder thereof; the class of series and number of shares or Equity
        Equivalents owned; and in the case of Equity Equivalents, the class or
        series and number of shares of capital stock (or equivalent) obtainable
        upon exercise thereof, the exercise price (or equivalent) thereof, and
        the expiration date thereof. As of the First Closing, neither the
        Company nor any Subsidiary shall be subject to any obligation
        (contingent or otherwise) to repurchase or otherwise acquire or retire
        any shares of its capital stock or any Equity Equivalents, except as set
        forth on the CAPITALIZATION SCHEDULE and except pursuant to the
        Certificate of Incorporation.

             ii. There are no statutory or, to the best of the Company's
        knowledge, contractual stockholders preemptive rights, rights of refusal
        or first offer or similar rights, or anti-dilution rights with respect
        to the issuance of the Series B Preferred hereunder or the issuance of
        the Common Stock upon the conversion of the Preferred Stock that have
        not been waived prior to the First Closing. The Company has not violated
        any applicable U.S. federal or state corporate or securities laws in
        connection with the offer, sale or issuance of any of its capital stock,
        and, based on the representations of the Purchasers set forth in SECTION
        7D, the offer, sale and issuance of the Series B Preferred hereunder do
        not require registration under the Securities Act or any applicable
        state securities laws. To the best of the Company's knowledge, there are
        no agreements between the Company's stockholders with respect to the
        voting or transfer of the Company's capital stock or with respect to any
        other aspect of the Company's affairs, except as set forth on the
        CAPITALIZATION SCHEDULE.

         5C. SUBSIDIARIES; INVESTMENTS. The attached "SUBSIDIARY SCHEDULE"
correctly sets forth the name of each Subsidiary, the jurisdiction of its
incorporation and the Persons owning the outstanding capital stock of such
Subsidiary. Each Subsidiary is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation to the extent
that such concepts exist in such jurisdictions, possesses all requisite
corporate power and authority and all material licenses, permits and
authorizations necessary to own its properties and to carry on its businesses as
now being conducted and as presently proposed to be conducted and is qualified
to do business in every jurisdiction in which its ownership of property or the
conduct of business requires it to qualify and in which the failure to be so
qualified would have a Material Adverse Effect. All of the outstanding shares of
capital stock of each Subsidiary are validly issued, full paid and
nonassessable, and all such shares are owned beneficially and of record by the
Company or another Subsidiary free and clear of any Lien and not subject to any
option or right to purchase any such shares. Except as set forth on the
SUBSIDIARY SCHEDULE, neither the Company nor any Subsidiary owns or holds the
right to acquire any shares of stock or any other security or interest in any
other Person (other than another Subsidiary).

         5D. AUTHORIZATION; NO BREACH. The execution, delivery and performance
of this Agreement, the Registration Agreement, the Stockholders Agreement and
all other agreements contemplated hereby to which the Company is a party, the
filing of the amendment of the Certificate of Incorporation (collectively, the
"RELEVANT DOCUMENTS") have been duly authorized by the Company. The Relevant
Documents to which the Company is a party each constitutes a valid and binding
obligation of the Company, enforceable in accordance with its terms. The
execution and

                                       17
<PAGE>

delivery by the Company of the Relevant Documents, the offering, sale and
issuance of the Series B Preferred hereunder, the issuance of the Common Stock
upon conversion of the Series B Preferred, the filing of the amendment of the
Certificate of Incorporation and the fulfillment of and compliance with the
respective terms hereof and thereof by the Company, do not and shall not (i)
conflict with or result in a breach of the terms, conditions or provisions of,
(ii) constitute a default under, (iii) result in the creation of any lien,
security interest, charge or encumbrance upon the Company's or any Subsidiary's
capital stock or assets pursuant to, (iv) give any third party the right to
modify, terminate or accelerate any obligation under, (v) result in a violation
of, or (vi) require any authorization, consent, approval, exemption or other
action by or notice or declaration to, or filing with, any court or
administrative or governmental body or agency pursuant to, or the charter or
bylaws of the Company or any Subsidiary, or any law, statute, rule or regulation
to which the Company or any Subsidiary is subject, or any agreement, instrument,
order, judgment or decree to which the Company or any Subsidiary is subject
(except for filings required under the Securities Act and state blue sky laws)
which event would have a Material Adverse Effect. Except as set forth on the
attached "RESTRICTIONS SCHEDULE," none of the Subsidiaries are subject to any
restrictions upon making loans or advances or paying dividends to, transferring
property to, or repaying any Indebtedness owed to, the Company or another
Subsidiary.

         5E. FINANCIAL STATEMENTS. Attached hereto as the "FINANCIAL STATEMENTS
SCHEDULE" are (x) the consolidated balance sheets of the Company and its
Subsidiaries as of December 31, 1997 and 1998, and the related statements of
income and cash flows (or the equivalent) for the respective twelve-month
periods then ended, and (y) the unaudited consolidated balance sheet of the
Company and its Subsidiaries as of December 31, 1999 (the "LATEST BALANCE
SHEET"), and the related statements of income and cash flows (or the equivalent)
for the 12-month period then ended. Each of the foregoing financial statements
(including in all cases the notes thereto, if any) is accurate and complete in
all material respects, is consistent with the books and records of the Company
(which, in turn, are accurate and complete in all material respects) and has
been prepared in accordance with generally accepted accounting principles,
consistently applied, subject in the case of the unaudited financial statements
to the absence of footnote disclosure and changes resulting from normal year-end
adjustments none of which would have a Material Adverse Effect.

         5F. ABSENCE OF UNDISCLOSED LIABILITIES. Except as set forth on the
attached "LIABILITIES SCHEDULE", to the Company's knowledge the Company and its
Subsidiaries do not have any material obligation or liability (whether accrued,
absolute, contingent, unliquidated or otherwise, whether due or to become due
and regardless of when asserted) arising out of transactions entered into at or
prior to the Closing, or any action or inaction at or prior to the Closing, or
any state of facts existing at or prior to the Closing other than: (i)
liabilities set forth on the Latest Balance Sheet (including any notes thereto),
(ii) liabilities and obligations which have arisen after the date of the Latest
Balance Sheet in the ordinary course of business (none of which is a liability
resulting from breach of contract, breach of warranty, tort, infringement, claim
or lawsuit), (iii) other liabilities and obligations expressly disclosed in the
other Schedules to this Agreement, and (iv) liabilities incurred in the ordinary
course of business that were not required to be disclosed on the latest balance
sheet of the Company or its Subsidiaries in accordance with GAAP.

                                       18
<PAGE>

         5G. NO MATERIAL ADVERSE CHANGE. Except as set forth on the attached
"ADVERSE CHANGE SCHEDULE", since the date of the Latest Balance Sheet, there has
been no material adverse change in the financial condition, operating results,
assets, operations, business prospects, employee relations or customer or
supplier relations of the Company and its Subsidiaries taken as a whole.

         5H. ABSENCE OF CERTAIN DEVELOPMENTS. Except as expressly contemplated
by this Agreement or as set forth on the attached "DEVELOPMENTS SCHEDULE", since
the date of the Latest Balance Sheet, neither the Company nor any Subsidiary
have

             i. issued any notes, bonds or other debt securities or any capital
        stock or other equity securities or any securities convertible,
        exchangeable or exercisable into any capital stock or other equity
        securities other than options under the Company's stock inventive plan
        and shares issued upon the exercise of such options;

             ii. discharged or satisfied any material Lien or paid any material
        obligation or liability, other than current liabilities paid in the
        ordinary course of business;

             iii. declared or made any payment or distribution of cash or other
        property to its stockholders with respect to its capital stock or other
        equity securities or purchased or redeemed any shares of its capital
        stock or other equity securities (including, without limitation, any
        warrants, options or other rights to acquire its capital stock or other
        equity securities), other than repurchases of stock from former
        employees, directors, officers, consultants and advisers pursuant to the
        terms of stock restriction agreements to which the Company is a party;

             iv. mortgaged or pledged any of its properties or assets or
        subjected them to any material Lien, except Liens for current property
        taxes not yet due and payable;

             v. sold, assigned or transferred any of its tangible assets, except
        in the ordinary course of business, or canceled any material debts or
        claims;

             vi. sold, assigned or transferred any patents or patent
        applications, trademarks, service marks, trade names, corporate names,
        copyrights or copyright registrations, trade secrets or other intangible
        assets, or disclosed any material proprietary confidential information
        to any Person other than newly hired employees of the Company other than
        pursuant to a confidentiality agreement;

             vii. suffered any material extraordinary losses or waived any
        rights of material value, whether or not in the ordinary course of
        business or consistent with past practice;

             viii. made capital expenditures or commitments therefor that
        individually are in excess of $50,000 or in the aggregate are in excess
        of $500,000.

                                       19
<PAGE>

             ix. made any loans or advances to, guarantees for the benefit of,
        or any Investments in, any Persons in excess of $10,000 in the aggregate
        other than advances to the Company's employees made in the ordinary
        course of the Company's business;

             x. suffered any damage, destruction or casualty loss exceeding in
        the aggregate $150,000, whether or not covered by insurance; or

             xi. made any Investment in or taken steps to incorporate any
        Subsidiary.

         Neither the Company nor any Subsidiary has at any time made any
payments for political contributions or made any bribes, kickback payments or
other illegal payments.

         5I. ASSETS. Except as set forth on the attached "ASSETS SCHEDULE," the
Company and each Subsidiary have good and marketable title to, or a valid
leasehold interest in, the properties and assets used by them, located on their
premises or shown on the Latest Balance Sheet or acquired thereafter, free and
clear of all Liens, except for properties and assets disposed of in the ordinary
course of business since the date of the Latest Balance Sheet and except for
Liens disclosed on the Latest Balance Sheet (including any notes thereto) and
Liens for current property taxes not yet due and payable. Except as described on
the ASSETS SCHEDULE, the Company's and each Subsidiary's buildings, equipment
and other tangible assets are in good operating condition in all material
respects and are fit for use in the ordinary course of business. The Company and
each Subsidiary own, or have a valid leasehold interest in, all assets necessary
for the conduct of their respective businesses as presently conducted and as
presently proposed to be conducted.

         5J. TAX MATTERS.

             i. Except as set forth on the attached "TAXES SCHEDULE": the
        Company, each Subsidiary and each Affiliated Group have filed all Tax
        Returns which they are required to file under applicable laws and
        regulations except to the extent that the failure to file would not have
        a Material Adverse Effect; all such Tax Returns are complete and correct
        in all material respects and have been prepared in compliance with all
        applicable laws and regulations in all material respects; the Company,
        each Subsidiary and to the Company`s knowledge each Affiliated Group in
        all material respects have paid all Taxes due and owing by them (whether
        or not such Taxes are required to be shown on a Tax Return) and have
        withheld and paid over to the appropriate taxing authority all Taxes
        which they are required to withhold from amounts paid or owing to any
        employee, stockholder, creditor or other third party; neither the
        Company, any Subsidiary nor any Affiliated Group has waived any statute
        of limitations with respect to any material Taxes or agreed to any
        extension of time with respect to any material Tax assessment or
        deficiency; the accrual for Taxes on the Latest Balance Sheet would be
        adequate to pay all Tax liabilities of the Company and its Subsidiaries
        if their current tax year were treated as ending on the date of the
        Latest Balance Sheet (excluding any amount recorded which is
        attributable solely to timing differences between book and Tax income);
        since the date of the Latest Balance Sheet, the Company and

                                       20
<PAGE>

        its Subsidiaries have not incurred any material liability for Taxes
        other than in the ordinary course of business; the assessment of any
        additional Taxes for periods for which Tax Returns have been filed by
        the Company, each Subsidiary and each Affiliated Group is not expected
        to exceed the recorded liability therefor on the Latest Balance Sheet in
        any material respect (excluding any amount recorded which is
        attributable solely to timing differences between book and Tax income);
        the federal income Tax Returns of the Company and its Subsidiaries have
        been audited and closed for all tax years through 1998; no foreign,
        federal, state or local tax audits or administrative or judicial
        proceedings are pending or being conducted with respect to the Company,
        any Subsidiary or any Affiliated Group, no information related to Tax
        matters has been requested by any foreign, federal, state or local
        taxing authority and no written notice indicating an intent to open an
        audit or other review has been received by the Company from any foreign,
        federal, state or local taxing authority; and to the Company's knowledge
        there are no material unresolved questions or claims concerning the
        Company's, any Subsidiary's or any Affiliated Group Tax liability.

             ii. Neither the Company nor any of its Subsidiaries has made an
        election under Section 341(f) of the Code. Neither the Company nor any
        Subsidiary is liable for the Taxes of another Person that is not a
        Subsidiary in a material amount under (a) Treas. Reg. Section 1.1502-6
        (or comparable provisions of state, local or foreign law), (b) as a
        transferee or successor, (c) by contract or indemnity or (d) otherwise.
        Neither the Company nor any Subsidiary is a party to any tax sharing
        agreement. The Company, each Subsidiary and each Affiliated Group have
        disclosed on their federal income Tax Returns any position taken for
        which substantial authority (within the meaning of IRC Section
        6662(d)(2)(B)(i)) did not exist at the time the return was filed.
        Neither the Company nor any Subsidiary has made any payments, is
        obligated to make payments or is a party to an agreement that could
        obligate it to make any payments that would not be deductible under IRC
        Section 280G.

             iii. "TAX" or "TAXES" means federal, state, county, local, foreign
        or other income, gross receipts, ad valorem, franchise, profits, sales
        or use, transfer, registration, excise, utility, environmental,
        communications, real or personal property, capital stock, license,
        payroll, wage or other withholding, employment, social security,
        severance, stamp, occupation, alternative or add-on minimum, estimated
        and other taxes of any kind whatsoever (including, without limitation,
        deficiencies, penalties, additions to tax, and interest attributable
        thereto) whether disputed or not. "TAX RETURN" means any return,
        information report or filing with respect to Taxes, including any
        schedules attached thereto and including any amendment thereof.
        "AFFILIATED GROUP" means any affiliated group as defined in IRC
        Section 1504 that has filed a consolidated return for federal income
        tax purposes (or any similar group under state, local or foreign law)
        for a period during which any of the Company or any of its
        Subsidiaries was a member.

                                       21

<PAGE>

         5K. CONTRACTS AND COMMITMENTS. Except as expressly contemplated by this
Agreement or as set forth on the attached "CONTRACTS SCHEDULE" or the attached
"EMPLOYEE BENEFITS SCHEDULE", neither the Company nor any Subsidiary is a party
to or bound by any written or oral:

             i. pension, profit sharing, stock option, employee stock purchase
        or other plan or arrangement providing for deferred or other
        compensation to employees or any other employee benefit plan or
        arrangement, or any collective bargaining agreement or any other
        contract with any labor union, or severance agreements, programs,
        policies or arrangements;

             ii. contract for the employment of any officer, individual employee
        or other Person on a full-time, part-time, consulting or other basis
        providing annual compensation in excess of $100,000 or contract relating
        to loans to officers, directors or Affiliates;

             iii. contract under which the Company or Subsidiary has advanced or
        loaned any other Person amounts in the aggregate exceeding $100,000;

             iv. agreement or indenture relating to borrowed money or other
        Indebtedness or the mortgaging, pledging or otherwise placing a Lien on
        any material asset or material group of assets of the Company and its
        Subsidiaries;

             v. guarantee of any obligation (other than by the Company of a
        Wholly-Owned Subsidiary's debts or a guarantee by a Subsidiary of the
        Company's debts or another Subsidiary's debts);

             vi. lease or agreement under which the Company or any Subsidiary is
        lessee of or holds or operates any property, real or personal, owned by
        any other party, except for any lease of real or personal property under
        which the aggregate annual rental payments do not exceed $15,000;

             vii. lease or agreement under which the Company or any Subsidiary
        is lessor of or permits any third party to hold or operate any property,
        real or personal, owned or controlled by the Company or any Subsidiary;

             viii. contract or group of related contracts with the same party or
        group of affiliated parties the performance of which involves
        consideration in excess of $100,000 in any 12-month period or that if
        terminated would be likely to have a Material Adverse Effect;

             ix. assignment, license, indemnification or agreement with respect
        to any intangible property (including, without limitation, any
        Intellectual Property) other than invention rights and confidentiality
        agreements entered into by the Company in the ordinary course of
        business to protect the Company's intellectual property;

             x. warranty agreement with respect to its services rendered or its
        products sold or leased;

                                       22
<PAGE>

             xi. agreement under which it has granted any Person any
        registration rights (including, without limitation, demand and piggyback
        registration rights);

             xii. agreement with a term of more than six months which is not
        terminable by the Company or any Subsidiary upon less than 90 days
        notice without penalty;

             xiii. contract or agreement prohibiting it from freely engaging in
        any business or competing anywhere in the world; or

             xiv. any other agreement which is material to its operations and
        business prospects or involves a consideration in excess of $100,000.

         All of the contracts, agreements and instruments set forth on the
CONTRACTS SCHEDULE are valid, binding and enforceable against the Company and
each other party thereto in accordance with the respective terms of such
contracts, agreements and instruments. The Company and each Subsidiary have
performed all material obligations required to be performed by them under the
contracts, agreements and instruments listed on the CONTRACTS SCHEDULE and are
not in default in any material respect under or in breach in any material
respect of nor in receipt of any claim of default or breach in any material
respect under any material contract, agreement or instrument listed on the
CONTRACTS SCHEDULE; to the Company's knowledge, no event has occurred which with
the passage of time or the giving of notice or both would result in a default,
breach or event of noncompliance in any material respect by the Company or any
Subsidiary under any material contract, agreement or instrument listed on the
CONTRACTS SCHEDULE; neither the Company nor any Subsidiary has any present
expectation or intention of not fully performing all such obligations; neither
the Company nor any Subsidiary has knowledge of any breach or anticipated breach
by the other parties to any material contract, agreement, instrument or
commitment to which the Company is a party.

         The Purchasers' special counsel has been supplied with a true and
correct copy of each of the written instruments, plans, contracts and agreements
and an accurate description of each of the oral arrangements, contracts and
agreements which are referred to on the CONTRACTS SCHEDULE, together with all
amendments, waivers or other changes thereto.

         5L. INTELLECTUAL PROPERTY RIGHTS.

             i. The attached "INTELLECTUAL PROPERTY SCHEDULE" contains a
        complete and accurate list of all (a) patented or registered
        Intellectual Property Rights owned or used by the Company or any
        Subsidiary, (b) pending patent applications and applications for
        registrations of other Intellectual Property Rights filed by the Company
        or any Subsidiary, (c) material unregistered trade names and corporate
        names owned or used by the Company or any Subsidiary and (d) material
        unregistered trademarks, service marks, copyrights, mask works owned or
        used by the Company or any Subsidiary. The INTELLECTUAL PROPERTY
        SCHEDULE also contains a complete and accurate list of all licenses and
        other rights granted by the Company or any Subsidiary to any third party
        with respect to any material Intellectual Property Rights and all
        licenses and other rights granted by any third party to the Company

                                       23
<PAGE>

        or any Subsidiary with respect to any material Intellectual Property
        Rights, in each case identifying the subject Intellectual Property
        Rights. Except as set forth on the INTELLECTUAL PROPERTY SCHEDULE, the
        Company or one of its Subsidiaries owns all right, title and interest
        to, or has the right to use pursuant to a valid license, all
        Intellectual Property Rights necessary for the operation of the
        businesses of the Company and its Subsidiaries as presently conducted
        (including without limitation all rights set forth on the Intellectual
        Property Schedule). No loss or expiration of any Intellectual Property
        Rights set forth on the Intellectual Property Schedule is, to the best
        of the Company's knowledge, threatened, pending or reasonably
        foreseeable other than any expiration of such rights in accordance with
        their terms that would not have a Material Adverse Effect. The Company
        and its Subsidiaries have taken all commercially reasonable actions to
        maintain and protect the Intellectual Property Rights that they own. To
        the best of the Company's knowledge, the owners of any Intellectual
        Property Rights licensed to the Company or any Subsidiary have taken all
        necessary and desirable actions to maintain and protect the Intellectual
        Property Rights which are subject to such licenses.

             ii. Except as set forth on the INTELLECTUAL PROPERTY SCHEDULE, (a)
        there have been no claims made against the Company or any Subsidiary
        asserting the invalidity, misuse or unenforceability of any of such
        Intellectual Property Rights, and the Company is not aware of any valid
        grounds for the same which are reasonably likely to result in such a
        claim being made, (b) neither the Company nor any Subsidiary has
        received any notices of, and is not aware of any facts which indicate a
        likelihood of, any infringement or misappropriation by, or conflict
        with, any third party with respect to such Intellectual Property Rights
        (including, without limitation, any demand or request that the Company
        or any Subsidiary license any rights from a third party), (c) the
        conduct of the Company's and each Subsidiary's business has not
        infringed, misappropriated or conflicted with and does not infringe,
        misappropriate or conflict with any Intellectual Property Rights of
        other Persons, nor would any future conduct as presently contemplated
        infringe, misappropriate or conflict in any material respect with any
        Intellectual Property Rights of other Persons and (d) to the best of the
        Company's knowledge, the material Intellectual Property Rights owned by
        or licensed to the Company or any Subsidiary have not been infringed,
        misappropriated or conflicted by other Persons. Except as set forth in
        the INTELLECTUAL PROPERTY SCHEDULE, the transactions contemplated by
        this Agreement shall have no material adverse effect on the Company's or
        any Subsidiary's right, title and interest in and to the Intellectual
        Property Rights listed on the INTELLECTUAL PROPERTY SCHEDULE.

         5M. LITIGATION, ETC. Except as set forth on the attached "LITIGATION
SCHEDULE", there are no actions, suits, proceedings, orders, investigations or
claims pending or, to the best of the Company's knowledge, threatened against
the Company or any Subsidiary (or to the best of the Company's knowledge,
pending or threatened against or affecting any of the officers, directors or
employees of the Company and its Subsidiaries with respect to their businesses
or proposed business activities), or pending or threatened by the Company or any
Subsidiary against any third party, at law or in equity, or before or by any
governmental department, commission, board, bureau, agency or instrumentality
(including, without limitation, any actions, suit, proceedings or investigations
with

                                       24
<PAGE>

respect to the transactions contemplated by this Agreement); nor has there been
any such actions, suits, proceeds, order, investigations or claims against or to
the Company's knowledge affecting the Company or any Subsidiary; neither the
Company nor any Subsidiary is subject to any arbitration proceedings under
collective bargaining agreements or otherwise or, to the best of the Company's
knowledge, any governmental investigations or inquiries; and the Company is not
aware of any valid grounds which are reasonably likely to result in any of the
foregoing. Neither the Company nor any Subsidiary is subject to any judgment,
order or decree of any court or other governmental agency, and neither the
Company nor any Subsidiary has received any opinion or memorandum or legal
advice from legal counsel to the effect that it is exposed, from a legal
standpoint, to any liability or disadvantage which may be material to its
business that would reasonably be expected to have, or be likely to have, a
Material Adverse Effect.

         5N. BROKERAGE. Except as set forth on the attached "BROKERAGE
SCHEDULE", there are no claims for brokerage commissions, finders' fees or
similar compensation in connection with the transactions contemplated by this
Agreement based on any arrangement or agreement binding upon the Company or any
Subsidiary. The Company shall pay, and hold each Purchaser harmless against, any
liability, loss or expense (including, without limitation, reasonable attorneys'
fees and out-of-pocket expenses) arising in connection with any such claim.

         5O. GOVERNMENTAL CONSENT, ETC. No permit, consent, approval or
authorization of, or declaration to or filing with, any governmental authority
is required in connection with the execution, delivery and performance by the
Company of this Agreement or the other agreements contemplated hereby, or the
consummation by the Company of any other transactions contemplated hereby or
thereby, except as set forth on the attached "CONSENTS SCHEDULE" and except as
expressly contemplated herein or in the exhibits hereto except for filings under
applicable securities laws.

         5P. INSURANCE. The attached "INSURANCE SCHEDULE" contains a description
of each insurance policy maintained by the Company and its Subsidiaries with
respect to its properties, assets and businesses, and each such policy is in
full force and effect as of the Closing. Neither the Company nor any Subsidiary
is in default in any material respect to its obligations under any insurance
policy maintained by it, and neither the Company nor any Subsidiary has been
denied insurance coverage. The insurance coverage of the Company and its
Subsidiaries is customary for corporations of similar size engaged in similar
lines of business. Except as set forth on the INSURANCE SCHEDULE, the Company
and its Subsidiaries do not have any self-insurance or co-insurance programs,
and the reserves set forth on the Latest Balance Sheet are adequate to cover all
anticipated liabilities with respect to any such self-insurance or co-insurance
programs.

         5Q. EMPLOYEES. The Company is not aware that any executive or key
employee of the Company or any Subsidiary or any group of employees of the
Company or any Subsidiary has any plans to terminate employment with the Company
or any Subsidiary. The Company and each Subsidiary have complied in all material
respects with all laws relating to the employment of labor (including, without
limitation, provisions thereof relating to wages, hours, equal opportunity,
collective bargaining and the payment of social security and other taxes), and
the Company is not aware that it or any Subsidiary has any material labor
relations problems (including, without

                                       25
<PAGE>

limitation, any union organization activities, threatened or actual strikes or
work stoppages or material grievances). Neither the Company, its Subsidiaries
nor, to the best of the Company's knowledge any of their employees is subject to
any noncompete, nondisclosure, confidentiality, employment, consulting or
similar agreements relating to, affecting or in conflict with the present or
proposed business activities of the Company and its Subsidiaries, except for
agreements between the Company and such employees.

         5R. ERISA.

             i. MULTIEMPLOYER PLANS. The Company does not have any obligation to
        contribute to (or any other liability, including current or potential
        withdrawal liability, with respect to) any "multiemployer plan" (as
        defined in Section 3(37) of the Employee Retirement Income Security Act
        of 1974, as amended ("ERISA")).

             ii. RETIREE WELFARE PLANS. The Company does not maintain or have
        any obligation to contribute to (or any other liability with respect to)
        any plan or arrangement whether or not terminated, which provides
        medical, health, life insurance or other welfare-type benefits for
        current or future retired or terminated employees (except for limited
        continued medical benefit coverage required to be provided under Section
        4980B of the IRC or as required under applicable state law).

             iii. DEFINED BENEFIT PLANS. The Company does not maintain,
        contribute to or have any liability under (or with respect to) any
        employee plan that is a tax-qualified "defined benefit plan" (as defined
        in Section 3(35) of ERISA), whether or not terminated.

             iv. DEFINED CONTRIBUTION PLANS. The Company does not maintain,
        contribute to or have any liability under (or with respect to) any
        employee plan that is a tax-qualified "defined contribution plan" (as
        defined in Section 3(34) of ERISA), whether or not terminated, other
        than the Company's qualified 401(k) salary deferral plan (the "PROFIT
        SHARING PLAN").

             v. OTHER PLANS. Except as set forth in the "EMPLOYEE BENEFITS
        SCHEDULE", the Company does not maintain, contribute to or have any
        liability under (or with respect to) any plan or arrangement providing
        benefits to current or former employees, including any bonus plan, plan
        for deferred compensation, employee health or other welfare benefit plan
        or other arrangement, whether or not terminated. Such plans and other
        arrangements are referred to as the "OTHER PLANS".

             vi. THE COMPANY. For purposes of this SECTION 5R, the term
        "COMPANY" includes all organizations under common control with the
        Company pursuant to Section 414(b) or (c) of the IRC.

             vii. PAYMENTS AND ACCRUALS. With respect to the Profit Sharing Plan
        and the Other Plans (the "PLANS"), all required or recommended (in
        accordance with historical

                                       26
<PAGE>

        practices) payments, premiums, contributions, reimbursements or accruals
        for all periods (or partial periods) ending prior to or as of the
        Closing shall have been made or properly accrued on the Latest Balance
        Sheet. None of the Plans has any material unfunded liabilities which are
        not reflected on the Latest Balance Sheet.

             viii. COMPLIANCE. The Plans and all related trusts, insurance
        contracts and funds have been maintained, funded and administered in
        compliance in all material respects with the applicable provisions of
        ERISA, the IRC and other applicable laws. Neither the Company nor any
        trustee or administrator of any Plan has engaged in any transaction with
        respect to the Plans which could subject the Company or any trustee or
        administrator or the Plans, or any party dealing with any such Plan, nor
        do the transactions contemplated by this Agreement constitute
        transactions which could subject any such party, to either a civil
        penalty assessed pursuant to Section 502(i) of ERISA or the tax or
        penalty on prohibited transactions imposed by Section 4975 of the IRC.
        No actions, suits or claims with respect to the assets of the Plans
        (other than routine claims for benefits) are pending or threatened which
        could result in or subject the Company to any liability, and there are
        no circumstances which could give rise to or be expected to give rise to
        any such actions, suits or claims.

             ix. CORRECT COPIES. The Company has provided or made available to
        the Purchasers counsel the Purchasers with true and complete copies of
        all documents pursuant to which the Plans are maintained and
        administered and the most recent annual reports (Form 5500 and
        attachments) for the Plans.

         5S. COMPLIANCE WITH LAWS. Neither the Company nor any Subsidiary has
violated any law or any governmental regulation or requirement which violation
has had or would reasonably be expected to have a Material Adverse Effect, and
neither the Company nor any Subsidiary has received notice of any such
violation. Neither the Company nor any Subsidiary is subject to, or has reason
to believe it may become subject to, any material liability (contingent or
otherwise) or material corrective or remedial obligation arising under any
federal, state, local or foreign law, rule or regulation (including the common
law) relating to or regulating health, safety, pollution or the protection of
the environment ("ENVIRONMENTAL LAWS"). Without limiting the generality of the
foregoing, (i) the Company and each Subsidiary have obtained all material
permits, licenses and authorizations required under, and have complied in all
material respects with, all Environmental Laws, (ii) no notice has been received
by the Company or any Subsidiary regarding any material violation of, or any
claim, liability or material corrective or remedial obligation under, any
Environmental Laws and (iii) to the Company's knowledge, no facts or
circumstances exist with respect to the past or present operations or facilities
of the Company or any Subsidiary which would give rise to a material liability
or material corrective or remedial obligation under any Environmental Laws.

         5T. AFFILIATED TRANSACTIONS. Except as set forth on the attached
"AFFILIATED TRANSACTIONS SCHEDULE," no officer, director, employee, stockholder
or Affiliate of the Company or any Subsidiary or any individual related by
blood, marriage or adoption to any such individual or any entity in which any
such Person or individual owns any beneficial interest, is a party to any

                                       27
<PAGE>

agreement, contract, commitment or transaction with the Company or any
Subsidiary or has any material interest in any material property used by the
Company or any Subsidiary other than employment arrangements entered into in the
ordinary course of the Company's or Subsidiary's business.

         5U. CLOSING DATE. The representations and warranties of the Company
contained in this SECTION 5 and elsewhere in this Agreement and all information
contained in any exhibit, schedule or attachment hereto or in any certificate or
other writing delivered by, or on behalf of, the Company to any Purchaser shall
be true and correct in all material respects on the date of the Closing as
though then made, except as affected by the transactions expressly contemplated
by this Agreement and except as expressly disclosed in writing to the Purchasers
by the Company prior to the Closing.

         5V. CUSTOMERS AND SUPPLIERS.

             i. The attached "CUSTOMER SCHEDULE" lists the 10 largest customers
        of the Company (on a consolidated basis) for each of the two most recent
        fiscal years and sets forth opposite the name of each such customer the
        percentage of consolidated net sales attributable to such customer. The
        CUSTOMER SCHEDULE also lists any additional current customers which the
        Company anticipates shall be among the 10 largest customers for the
        current fiscal year.

             ii. Since the date of the Latest Balance Sheet, no material
        supplier of the Company or any Subsidiary has indicated that it shall
        stop, or materially decrease the rate of, supplying materials, products
        or services to the Company or any Subsidiary, and no customer listed on
        the CUSTOMER SCHEDULE has indicated that it shall stop, or materially
        decrease the rate of, buying materials, products or services from the
        Company or any Subsidiary.

         5W. SMALL BUSINESS MATTERS. The Company acknowledges that ABN AMRO is a
federally licensed SBIC under the SBIC Act. The information regarding the
Company and its affiliates in SBA Form 480, Form 652 and Parts A and B of Form
1031 delivered by the Company at the Closing is accurate in all material
respects. Neither the Company nor any Subsidiary presently engages in, or shall
hereafter engage in, any activities, nor shall the Company or any Subsidiary use
the proceeds of the Financing directly or indirectly for any purpose, for which
an SBIC is prohibited from providing funds by SBIC Regulations (including 13 CFR
Section 107.720).] [TBD]

         5X. CENTURY DATE COMPLIANCE. The Company has conducted reasonable and
prudent investigations with respect to its computer software, computer firmware,
computer hardware (whether general or special purpose), and other similar or
related items of automated, computerized or software systems that are material
to the conduct of the Company's business, and based upon such investigations the
Company is not aware that any such systems are or are likely to malfunction,
cease to function, generate incorrect data or produce incorrect results (any of
the foregoing a "DATE FAILURE") when processing, providing or receiving (x)
date-related data into and between the twentieth and twenty-first centuries or
(y) date-related data in connection with any valid date in the

                                       28
<PAGE>

twentieth and twenty-first centuries (collectively, "YEAR 2000 DATA"). To the
best of the Company's knowledge, after conducting reasonable and prudent
investigations therefor, the products and services sold, licensed, rendered, or
otherwise provided by the Company in the conduct of its business, including but
not limited to the Company's proprietary software and databases, will not suffer
any Date Failure when processing, providing or receiving any Year 2000 Data
(other than any Date Failure caused by the products of others (including
hardware, software, firmware, applications and databases) used in combination
with the products supplied by the Company), and to the Company's knowledge the
Company is not subject to any claims or liabilities arising from any Date
Failure. Except as set forth on Schedule 5Y, the Company has not made any other
representations or warranties regarding the ability of any product or service
sold or licensed by the Company in the conduct of its business to operate
without a Date Failure when processing, providing or receiving Year 2000 Data.

         SECTION 6. DEFINITIONS.

         6A. DEFINITIONS. For the purposes of this Agreement, the following
terms have the meanings set forth below:

         "ABN AMRO" means ABN AMRO Capital (USA), Inc.

         "AFFILIATE" of any particular Person means any other Person
controlling, controlled by or under common control with such particular Person,
where "control" means the possession, directly or indirectly, of the power to
direct the management and policies of a Person whether through the ownership of
voting securities, contract or otherwise.

         "AMENDED AND RESTATED CERTIFICATE OF INCORPORATION" means the Company's
Amended and Restated Certificate of Incorporation set forth on EXHIBIT A hereto.

         "EVENT OF NONCOMPLIANCE" has the meaning set forth in the Amended and
Restated Certificate of Incorporation.

         "EQUITY EQUIVALENTS" means in respect of any Person (i) any securities,
instruments or rights which are convertible into or exercisable or exchangeable
for any equity securities of such Person, (ii) any phantom equity, equity
appreciate or similar rights which permit the holder thereof to participate in
the residual equity value of, or appreciation in, such Person, (iii) any
securities, instruments or rights which permit the holder thereof, under any
circumstances, to vote for the election of members of such Person's governing
body, and (iv) any securities, instruments or rights which are, directly or
indirectly, convertible into or exercisable or exchangeable for any of the
securities, instruments or rights described in clauses (i), (ii) or (iii) above.

         "INDEBTEDNESS" means at a particular time, without duplication, (i) any
indebtedness for borrowed money or issued in substitution for or exchange of
indebtedness for borrowed money, (ii) any indebtedness evidenced by any note,
bond, debenture or other debt security, (iii) any commitment by which a Person
assures a creditor against loss (including, without limitation,

                                       29
<PAGE>

contingent reimbursement obligations with respect to letters of credit), (iv)
any indebtedness guaranteed in any manner by a Person (including, without
limitation, guarantees in the form of an agreement to repurchase or reimburse),
(v) any obligations under capitalized leases (determined in accordance with
GAAP) with respect to which a Person is liable, contingently or otherwise, as
obligor, guarantor or otherwise, or with respect to which obligations a Person
assures a creditor against loss, and (vi) any indebtedness secured by a Lien on
a Person's assets.

         "INTELLECTUAL PROPERTY RIGHTS" means all (i) patents, patent
applications, patent disclosures and inventions, (ii) trademarks, service marks,
trade dress, trade names, logos and corporate names and registrations and
applications for registration thereof together with all of the goodwill
associated therewith, (iii) copyrights (registered or unregistered) and
copyrightable works and registrations and applications for registration thereof,
(iv) mask works and registrations and applications for registration thereof, (v)
trade secrets and other confidential information (including, without limitation,
ideas, formulas, compositions, inventions (whether patentable or unpatentable
and whether or not reduced to practice), know-how, manufacturing and production
processes and techniques, research and development information, drawings,
specifications, designs, plans, proposals, technical data, copyrightable works,
financial and marketing plans and customer and supplier lists and information),
(vi) other intellectual property rights and (vii) copies and tangible
embodiments thereof (in whatever form or medium).

         "INVESTMENT" as applied to any Person means (i) any direct or indirect
purchase or other acquisition by such Person of any notes, obligations,
instruments, stock, securities or ownership interest (including partnership
interests and joint venture interests) of any other Person and (ii) any capital
contribution by such Person to any other Person.

         "IRC" means the Internal Revenue Code of 1986, as amended, and any
reference to any particular IRC section shall be interpreted to include any
revision of or successor to that section regardless of how numbered or
classified.

         "IRS" means the United States Internal Revenue Service.

         "KNOWLEDGE" and "AWARE" mean and include (i) the actual knowledge or
awareness of the Company and its Subsidiaries (which shall include the actual
knowledge and awareness of the officers, directors and key employees of the
Company and its Subsidiaries and the general managers of each facility of the
Company and its Subsidiaries) and (ii) the knowledge or awareness of facts that
may be reasonably imputed to the Company. Without limiting the generality of the
forgoing, the knowledge or awareness of Ulf Arnetz, Felimy Greene, Lars
Ivarsson, Angiras Koorapaty and Hakan Wohlen shall be imputed to the Company.

         "LIENS" means any mortgage, pledge, security interest, encumbrance,
lien or charge of any kind (including, without limitation, any conditional sale
or other title retention agreement or lease in the nature thereof), any sale of
receivables with recourse against the Company, any Subsidiary or any Affiliate,
any filing or agreement to file a financing statement as debtor under the
Uniform Commercial Code or any similar statute other than to reflect ownership
by a third party of

                                       30
<PAGE>

property leased to the Company or any Subsidiaries under a lease which is not in
the nature of a conditional sale or title retention agreement, or any
subordination arrangement in favor of another Person (other than any
subordination arising in the ordinary course of business).

         "MATERIAL ADVERSE EFFECT" means an event that, alone or in the
aggregate with other events, is materially adverse to the financial condition,
operating results, assets, or operations of the Company and its Subsidiaries
taken as a whole.

         "OFFICER'S CERTIFICATE" means a certificate signed by the Company's
President or its chief financial officer.

         "PERSON" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

         "PREFERRED STOCK" means the Series A Preferred Stock as described in
the Company's Amended and Restated Certificate of Incorporation, together with
the Series B Preferred.

         "RESTRICTED SECURITIES" means (i) the Series B Preferred issued
hereunder, (ii) the Common Stock issued upon conversion of the Series B
Preferred and (iii) any securities issued with respect to the securities
referred to in clauses (i) or (ii) above by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. As to any particular Restricted
Securities, such securities shall cease to be Restricted Securities when they
have (a) been effectively registered under the Securities Act and disposed of in
accordance with the registration statement covering them, or (b) been
distributed to the public through a broker, dealer or market maker pursuant to
Rule 144 (or any similar provision then in force) under the Securities Act or
become eligible for sale pursuant to Rule 144(k) (or any similar provision then
in force) under the Securities Act or (c) been otherwise transferred and new
certificates for them not bearing the Securities Act legend set forth in SECTION
4B have been delivered by the Company in accordance with SECTION 4C.

         "SBIC" means a small business investment company licensed under the
Small Business Investment Act of 1958, as amended.

         "SBIC REGULATIONS" means the Small Business Investment Company Act of
1958, as amended, and the regulations issued by the Small Business
Administration thereunder, 13 CFR 107 and 121, as amended.

         "SECURITIES ACT" means the Securities Act of 1933, as amended, or any
similar federal law then in force.

         "SECURITIES AND EXCHANGE COMMISSION" includes any governmental body or
agency succeeding to the functions thereof.

                                       31
<PAGE>

         "SECURITIES EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, or any similar federal law then in force.

         "SERIES A PREFERRED" means the Series A Preferred Stock as described in
the Amended and Restated Certificate of Incorporation.

         "SUBSIDIARY" means, with respect to any Person, any corporation,
limited liability company, partnership, association or other business entity of
which (i) if a corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the units, membership interests, partnership interests or other similar
ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof. For purposes hereof, a Person or Persons shall be deemed to
have a majority ownership interest in a limited liability company, partnership,
association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control any manager,
managing member or general partner of, or has the power to elect a majority of
the members of governing body of, such limited liability company, partnership,
association or other business entity.

         "TREASURY REGULATIONS" means the United States Treasury Regulations
promulgated under the IRC, and any reference to any particular Treasury
Regulation section shall be interpreted to include any final or temporary
revision of or successor to that section regardless of how numbered or
classified.

         "UNDERLYING COMMON STOCK" means (i) the Common Stock issued or issuable
upon conversion of the Series B Preferred, and (ii) any Common Stock issued or
issuable with respect to the securities referred to in clause (i) above by way
of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. For purposes of
this Agreement, any Person who holds Series B Preferred shall be deemed to be
the holder of the Underlying Common Stock obtainable upon conversion of the
Series B Preferred Stock in connection with the transfer thereof or otherwise,
and regardless of any restriction or limitation on the conversion of the Series
B Preferred. As to any particular shares of Underlying Common Stock, such shares
shall cease to be Underlying Common Stock when they have been (a) effectively
registered under the Securities Act and disposed of in accordance with the
registration statement covering them, (b) distributed to the public through a
broker, dealer or market maker pursuant to Rule 144 under the Securities Act (or
any similar provision then in force) or (c) repurchased by the Company or any
Subsidiary.

         "WHOLLY-OWNED SUBSIDIARY" means, with respect to any Person, a
Subsidiary of which all of the outstanding capital stock or other ownership
interests are owned by such Person or another Wholly-Owned Subsidiary of such
Person.

                                       32
<PAGE>

         6B. OTHER DEFINITIONS. The terms set forth below are defined on the
following pages of the Agreement:

<TABLE>
<S>                              <C>
Affiliated Group..................21
Agreement..........................1
Closing............................1
Closings...........................2
Common Stock.......................1
Company............................1
Date Failure......................29
Environmental Laws................27
ERISA.............................25
Financing.........................12
First Closing......................2
First Purchasers...................1
Indemnified Liabilities...........38
Indemnities.......................38
Latest Balance Sheet..............18
Other Plans.......................26
Plans.............................26
Profit Sharing Plan...............26
Purchaser..........................1
Purchasers.........................1
Registration Agreement.............2
Relevant Documents................15
SBA...............................12
SBIC Holder.......................11
Second Closing.....................2
Stockholders Agreement.............2
Subsequent Purchasers..............1
Subsequent Shares..................2
Tax...............................19
Tax Return........................21
Taxes.............................21
Year 2000 Data....................29
</TABLE>

                                       33
<PAGE>

         SECTION 7. MISCELLANEOUS.

         7A. DIRECTED SHARE PROGRAM. In the event of the Company's initial
public offering of equity securities more than one year from the Effective Date,
and to the extent permitted by applicable law, the Company shall use its best
efforts to establish, or cause the managing underwriter to establish, a directed
share program, consistent with applicable laws, rules and regulations
(including, without limitation, rules and regulations promulgated by the
Commission and the National Association of Securities Dealers, Inc.), pursuant
to which the Purchasers shall have the option to purchase up to fifteen percent
(15%) of the securities offered (the "DIRECTED SHARES") valued at the initial
offering price; provided that the lead underwriter may reduce or eliminate
entirely such allocation if in such underwriter's judgment the initial public
offering may be adversely affected. The Purchasers shall have a right of
oversubscription with respect to the Directed Shares such that if any Purchaser
fails to purchase its pro rata portion of the Directed Shares, the other
Purchasers shall, among them, have the right to purchase up to the balance of
the Directed Shares not so purchased. If, as a result thereof, such
oversubscriptions exceed the total number of Directed Shares available in
respect of such oversubscription privilege, the oversubscribing Purchasers shall
be reduced with respect to their oversubscriptions on a pro rata basis or as
they may otherwise agree among themselves.

         7B. EXPENSES. The Company shall pay, and hold each Purchaser and all
holders of Series B Preferred and Underlying Common Stock harmless against
liability for the payment of (i) the reasonable fees and expenses of Purchasers'
counsel, not to exceed $75,000, arising in connection with the negotiation and
execution of this Agreement and the consummation of the transactions
contemplated by this Agreement which shall be payable at the Closing or, if the
Closing does not occur, payable upon demand, and (ii) stamp and other taxes
which may be payable in respect of the execution and delivery of this Agreement
or the issuance, delivery or acquisition of any shares of Series B Preferred or
any shares of Common Stock issuable upon conversion of the Series B Preferred.

         7C. REMEDIES. Each holder of Series B Preferred and Underlying Common
Stock shall have all rights and remedies set forth in this Agreement and the
other Relevant Documents, and all rights and remedies which such holders have
been granted at any time under any other agreement or contract and all of the
rights which such holders have under any law. Any Person having any rights under
any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law.

         7D. PURCHASER'S INVESTMENT REPRESENTATIONS. Each Purchaser represents
and warrants to the Company and to each other Purchaser as follows:

             i. The Purchaser is acquiring the Series B Preferred shares and
        Underlying Common Stock for his own account, for investment and not with
        a view to, or

                                       34
<PAGE>

        for sale in connection with, any distribution thereof, nor with any
        present intention of distribution or selling the same in violation of
        applicable law; and the Purchaser has no present or contemplated
        agreement, undertaking, arrangement, obligation, indebtedness or
        commitment providing for such disposition.

             ii. The Purchaser has the full power and authority to enter into
        and to perform its obligations under this Agreement, the Registration
        Agreement and the Stockholders Agreement in accordance with their
        respective terms. If the Purchaser is a corporation, partnership or
        trust, it represents that it has not been organized, reorganized or
        recapitalized specifically for the purpose of investment in the Company.
        The Purchaser has adequate net worth and means of providing for his or
        its current needs and personal contingencies to sustain a complete loss
        of his investment in the Company; and the Purchaser's overall commitment
        to investments which are not readily marketable is not disproportionate
        to his net worth and the Purchaser's investment in the Series B
        Preferred shares and the Underlying Common Stock will not cause such
        overall commitment to become excessive.

             iii. The Purchaser has substantial knowledge and experience in
        making investment decisions of this type, and is capable of evaluating
        the merits and risks of this investment.

             iv. The Purchaser is an "accredited investor" within the definition
        set forth in Securities Act Rule 501(a).

             v. If the Purchaser's principal address as set forth on the
        signature page below is a location outside of the United States of
        America and its territories, the Purchaser is executing this Agreement
        outside of the United States and the Purchaser: (a) is not a U.S. person
        (as defined in Securities Act Rule 902(k)) and is not acquiring the
        Series B Preferred shares and the Underlying Common Stock for the
        account or benefit of any U.S. person; (b) will resell the Series B
        Preferred and Underlying Common Stock only in accordance with (A) the
        provisions of Regulation S promulgated under the Securities Act
        ("REGULATION S"), (B) pursuant to an effective registration statement
        under the Securities Act, or (C) pursuant to an available exemption from
        registration under the Securities Act; and agrees not to engage in
        hedging transactions unless in compliance with the Securities Act; and
        (c) will not offer or sell the Series B Preferred shares or Underlying
        Common Stock to a U.S. Person or to or for the account or benefit of a
        U.S. Person, or engage in any hedging transactions, prior to the
        expiration of the one year period after the Closing.

         7E. TREATMENT OF THE SERIES B PREFERRED. The Company covenants and
agrees that (i) so long as federal income tax laws prohibit a deduction for
distributions made by the Company with respect to the Series B Preferred, it
shall treat all distributions paid by it out of current and accumulated earnings
and profits on the Series B Preferred as non-deductible dividends on all of its
tax returns to the extent consistent with applicable law and subject to the
reasonable advice of tax

                                       35
<PAGE>

counsel or the Company's independent accountants, and (ii) it shall treat the
Series B Preferred as preferred stock in all of its GAAP based financial
statements and other reports and shall treat all distributions paid by it on the
Series B Preferred as dividends on preferred stock in such statements and
reports.

         7F. CONSENT TO AMENDMENTS. Except as otherwise expressly provided
herein, the provisions of this Agreement may be amended and the Company may take
any action herein prohibited, or omit to perform any act herein required to be
performed by it, only if the Company has obtained the written consent of the
holders of a majority of the Underlying Common Stock. No other course of dealing
between the Company and the holder of any Series B Preferred or Underlying
Common Stock or any delay in exercising any rights hereunder or under the other
Relevant Documents shall operate as a waiver of any rights of any such holders.
For purposes of SECTION 7F, shares of Series B Preferred or Underlying Common
Stock held by the Company or any Subsidiaries shall not be deemed to be
outstanding.

         7G. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties contained herein or made in writing by any party in connection
herewith shall survive the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby, regardless of any
investigation made by any Purchaser or on its behalf.

         7H. SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, all covenants and agreements contained in this Agreement by or on behalf
of any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or
not. In addition, and whether or not any express assignment has been made, the
provisions of this Agreement which are for any Purchaser's benefit as a
purchaser or holder of Series B Preferred or Underlying Common Stock are also
for the benefit of, and enforceable by, any subsequent holder of such Series B
Preferred or such Underlying Common Stock.

         7I. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. Where any accounting
determination or calculation is required to be made under this Agreement or the
exhibits hereto, such determination or calculation (unless otherwise provided)
shall be made in accordance with generally accepted accounting principles,
consistently applied, except that if because of a change in generally accepted
accounting principles the Company would have to alter a previously utilized
accounting method or policy in order to remain in compliance with generally
accepted accounting principles, such determination or calculation shall continue
to be made in accordance with the Company's previous accounting methods and
policies.

         7J. SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

                                       36
<PAGE>

         7K. COUNTERPARTS. This Agreement may be executed simultaneously in two
or more counterparts in the form attached hereto, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together shall constitute one and the same Agreement.

         7L. DESCRIPTIVE HEADINGS; INTERPRETATION. The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a
substantive part of this Agreement. The use of the word "including" in this
Agreement shall be by way of example rather than by limitation.

         7M. GOVERNING LAW. The corporate law of the State of Delaware shall
govern all issues and questions concerning the relative rights and obligations
of the Company and its stockholders. All other issues and questions concerning
the construction, validity, enforcement and interpretation of this Agreement and
the exhibits and schedules hereto shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without giving effect to any
choice of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Delaware.

         7N. NOTICES. All notices, demands or other communications to be given
or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient, sent to the recipient by reputable overnight courier service (charges
prepaid) or mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid. Such notices, demands and other
communications shall be sent to each Purchaser at the address indicated on the
SCHEDULE OF PURCHASERS and to the Company and counsel for the Company and
Purchasers at the address indicated below:

                  Ulf Arnetz
                  President and CEO
                  Corechange, Inc.
                  260 Franklin Street, Suite 1890
                  Boston, Massachusetts  02100

                  with a copy to (which shall not constitute notice hereunder):

                  Hale and Dorr
                  60 State Street
                  Boston, Massachusetts 02109
                  Attention:       Stuart M. Falber
                  Telecopy No:  (617) 526-5000

                                       37
<PAGE>

                  Kirkland & Ellis
                  200 East Randolph Drive
                  Chicago, Illinois 60601
                  Attention:       Gary R. Silverman
                  Telecopy No:     (312) 861-2200

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

         7O. UNDERSTANDING AMONG THE PURCHASERS. The determination of each
Purchaser to purchase the Series B Preferred pursuant to this Agreement has been
made by such Purchaser independent of any other Purchaser and independent of any
statements or opinions as to the advisability of such purchase or as to the
properties, business, prospects or condition (financial or otherwise) of the
Company and its Subsidiaries which may have been made or given by any other
Purchaser or by any agent or employee of any other Purchaser. In addition, it is
acknowledged by each of the other Purchasers that ABN AMRO has not acted as an
agent of such Purchaser in connection with making its investment hereunder and
that ABN AMRO shall not be acting as an agent of such Purchaser in connection
with monitoring its investment hereunder. Each Purchaser represents that there
are no claims for brokerage commissions, finders' fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any
arrangement or agreement that is binding on such Purchaser, and each Purchaser
shall pay, and hold each other Purchaser and the Company harmless against, any
liability, loss or expense (including, without limitation, reasonable attorneys'
fees and out of pocket expenses) arising in connection with any such claim or
any other claim arising out of the failure of the acknowledgements and
understandings stated in this SECTION 7N.

         7P. NO STRICT CONSTRUCTION. The parties hereto have participated
jointly in the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties hereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any of the provisions of this Agreement.

                                       38
<PAGE>

         7Q. ENVIRONMENTAL LIABILITIES. Without limiting the generality of the
representations and warranties set out in SECTION 5 above, the Company shall
defend, protect, indemnify and hold harmless each Purchaser and all other
Indemnitees from and against any and all actions, causes of action, suits,
losses, liabilities, damages, injuries, penalties, fees, costs, expenses and
claims of any and every kind whatsoever paid, incurred or suffered by, or
asserted against, each Purchaser or any other Indemnitee for, with respect to,
or as a direct or indirect result of, the past, present or future environmental
condition of any property owned, operated or used by the Company, any
Subsidiary, their predecessors or successors or of any offsite treatment,
storage or disposal location associated therewith, including, without
limitation, the presence on or under, or the escape, seepage, leakage, spillage,
discharge, emission, release, or threatened release into, onto or from, any such
property or location of any toxic, chemical or hazardous substance, material or
waste (including, without limitation, any losses, liabilities, damages,
injuries, penalties, fees, costs, expenses or claims asserted or arising under
the Comprehensive Environmental Response, Compensation and Liability Act, any
so-called "Superfund" or "Superlien" law, or any other federal, state, local or
foreign statute, law, ordinance, code, rule, regulation, order or decree
regulating, relating to or imposing liability or standards on conduct
concerning, any toxic, chemical or hazardous substance, material or waste),
regardless of whether caused by, or within the control of, the Company or any
Subsidiary.

                                    * * * * *

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first written above.

                                CORECHANGE, INC.

                                By:  /s/ ULF ARNETZ

                                Its:  President / CEO

                                Date:  Feb. 18, 2000

                                       39
<PAGE>

                             SCHEDULE OF PURCHASERS

    ------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                  NO. OF SHARES OF       TOTAL PURCHASE
     NAMES AND ADDRESSES         SERIES B PREFERRED    PRICE FOR SERIES B
                                       STOCK            PREFERRED STOCK
<S>                              <C>                   <C>

</TABLE>

                                       40
<PAGE>

                                Corechange, Inc.
           Schedule of Series B Preferred Convertible Bridge Financing

<TABLE>
<CAPTION>
                                                  Date of    Interest till    Daily     Principal    # of Series B
Name                                Amount        Deposit       2/18/00     Interest    + Interest    Pref Shares
<S>                                <C>           <C>          <C>             <C>      <C>           <C>
HarbourVest Partners LLC           $   500,000   11/2/99      $   11,945.21$   109.59  $  511,945       87,707

Ulf Arnetz                         $   250,000   11/2/99      $    5,972.60     54.79  $  255,973       43,853

Torbjorn Karlsson                  $   250,000   11/2/99      $    5,972.60     54.79  $  255,973       43,853

Breviksgruppen AB                  $   100,000   12/29/99     $    1,139.73     21.92  $  101,140       17,327

Minvest AB                         $   120,000   12/29/99     $    1,367.67     26.30  $  121,368       20,793

Henrik Ingvarsson                  $    25,000   12/29/99     $      284.93      5.48  $   25,285        4,332

Andreas Nyberg                     $    13,000   12/29/99     $      148.16      2.85  $   13,148        2,253

Dan Segenmark                      $   120,000   12/29/99     $    1,367.67     26.30  $  121,368       20,793

Lars Ahlstrom                      $    50,000   12/29/99     $      569.86     10.96  $   50,570        8,664

Jan Khilberg                       $   120,000   12/29/99     $    1,367.67     26.30  $  121,368       20,793

Andreas Segenmark                  $   120,000   12/29/99     $    1,367.67     26.30  $  121,368       20,793

Svensk Vininformation AB           $    50,000   12/29/99     $      569.86     10.96  $   50,570        8,664

J O Hersler Consulting AB          $    20,000   12/29/99     $      227.95      4.38  $   20,228        3,465

Sofie Emilsson                     $    50,000   12/29/99     $      569.86     10.96  $   50,570        8,664

Rosebud Corporation                $   300,000   12/29/99     $    3,419.18     65.75  $  303,419       51,982

Robert Friberg                     $   200,000   12/29/99     $    2,279.45     43.84  $  202,279       34,655

Svensk Vininformation AB           $    40,000   12/29/99     $      455.89      8.77  $   40,456        6,931

Andreas Strindholm                 $    10,000   12/29/99     $      113.97      2.19  $   10,114        1,733

Per Sahlestrom                     $    20,000   12/29/99     $      227.95      4.38  $   20,228        3,465

Jan Matsson                        $    18,000   12/29/99     $      205.15      3.95  $   18,205        3,119

Harald Mattson Marn                $    58,500   12/29/99     $      666.74     12.82  $   59,167       10,136

Carl Mattson Marn                  $    58,500   12/29/99     $      666.74     12.82  $   59,167       10,136

Hans Bjurklint                     $    35,000   12/29/99     $      398.90      7.67  $   35,399        6,065

Rikard Svensson                    $   150,000   12/29/99     $    1,709.59     32.88  $  151,710       25,991

Fredrik Svensson                   $   150,000   12/29/99     $    1,709.59     32.88  $  151,710       25,991

Matz Borsch                        $   100,000   12/29/99     $    1,139.73     21.92  $  101,140       17,327

Bjorn von Malmborg                 $   143,000   12/29/99     $    1,629.81     31.34  $  144,630       24,778

Hans Jacobsson                     $    81,000   12/29/99     $      923.18     17.75  $   81,923       14,035

Adam Dahlberg                      $   115,000   12/29/99     $    1,310.68     25.21  $  116,311       19,926

Stina Linden                       $    20,000   1/27/00      $      100.82      4.38  $   20,101        3,444

Ulf Oster                          $    20,000   1/27/00      $      100.82      4.38  $   20,101        3,444

Erik Ekberg                        $    15,000   1/27/00      $       75.62      3.29  $   15,076        2,583

Strom & Partners                   $    45,000   1/27/00      $      226.85      9.86  $   45,227        7,748

Richard Hellberg                   $    16,000   2/7/00       $       42.08      3.51  $   16,042        2,748

                                   $ 3,383,000                $      50,274   $   741  $3,433,274      588,192

Direct Investors in the Series B

Harbourvest Capital                $ 1,500,000                                                         256,981

ABN AMRO Capital (USA), Inc.       $ 4,000,000                                                         685,284

Xcelera.com                        $ 3,500,000                                                         599,623

Xcelera.com                        $ 5,000,000                                                         856,604

Ronald Hirsch                      $    25,000                                                           4,283

UK Private Investors

AIB Nominees                       $    75,000                                                          12,849

Marquis Limited                    $    50,000                                                           8,566

Ms. Caroline Kauslick Coombs       $    50,000                                                           8,566

Mr. Phelim Greene                  $    25,000                                                           4,283

Mr. Donal Greene                   $    32,000                                                           5,482

Mr. Kevin MacNally                 $    25,000                                                           4,283

Mrs. Niamh McGowan                 $    25,000                                                           4,283

Ms. Margaret Kennedy               $    43,750                                                           7,495

Total Direct Series B Preferred I  $14,350,750                                                       2,458,583

Total Converted + Direct Investor  $17,733,750                                                       3,046,775

<CAPTION>

<S>                                 <C>

HarbourVest Partners LLC            One Financial Center Boston

Ulf Arnetz                          260 Franklin St Boston

Torbjorn Karlsson                   c/o Corechange Svenska, Stockholm

Breviksgruppen AB                   Birger Jarlsgatan 2, 114 32 Stockholm

Minvest AB                          Neglinge Center, 133 33 Saltsjobaden

Henrik Ingvarsson                   Vikingagatan 27, 113 42 Stockholm

Andreas Nyberg                      Fleminggatan 56, 112 45 Stockholm

Dan Segenmark                       Kistavagen 14, 192 67 Sollentuna

Lars Ahlstrom                       Bergsjoholm, 271 91 Ystad

Jan Khilberg                        Engelbrektsgatan 18, 5 Tr, 114 32 Stockholm

Andreas Segenmark                   Borgvagen 21, 192 55 Sollentuna

Svensk Vininformation AB            Box 9175, 102 73 Stockholm

J O Hersler Consulting AB           Engelbrektsgatan 39, 3 tr, 114 32 Stockholm

Sofie Emilsson                      Radmansgatan 84, 113 29 Stockholm

Rosebud Corporation                 C/O Jean Paul Le Grand, 37 39 Avenue Dumas, Geneva Switzerland

Robert Friberg                      Sockenvagen 141, 132 46 Stockholm

Svensk Vininformation AB            Box 9175, 102 73 Stockholm

Andreas Strindholm                  Ballonggatan 21, 169 71 Solna

Per Sahlestrom                      Bromma Kyrkvag 448, 168 58 Bromma

Jan Matsson                         Palsundsgatan 6, 117 31 Stockholm

Harald Mattson Marn                 Styrmansgatan 24, 114 54 Stockholm

Carl Mattson Marn                   Styrmansgatan 24, 114 54 Stockholm

Hans Bjurklint                      Skapparp, 310 40 Harplinge

Rikard svensson                     Herrgardsgatan 2 A, 722 13 Vasteras

Fredrik Svensson                    Skeppsgatan 1, 721 32 Vasteras

Matz Borsch                         Tornbrinken 6, 132 36 Saltsjo-Boo

Bjorn von Malmborg                  Camino Alto, 108 La Moraleja, 28109 Al Cobendas(Mardrid)Spanien

Hans Jacobsson                      Kiviksgatan 13, 168 54 Bromma

Adam Dahlberg                       Riddargatan 15, 114 57 Stockholm

Stina Linden                        Baltvagen 7, 191 33 Sollentuna

Ulf Oster                           Skogsfrugrand 33, 167 62 Bromma

Erik Ekberg                         Strandvagen 57, 115 23 Stockholm

Strom & Partners                    Strom & Partners, P O Box 775, 8024 Zurich, Switzerland

Richard Hellberg                    Engelbrektsgatan 23, 114 23 Stockholm

DIRECT INVESTORS IN THE SERIES B

Harbourvest Capital                 One Financial Center, 44th Floor, Boston, MA 02111

ABN AMRO Capital (USA), Inc.        208 South LaSalle Street, 10th Floor, Chicago, IL 60604

Xcelera.com                         Ugland House, South Church Street, Grand Cayman, Cayman Island, British West Imdies

Xcelera.com                         Ugland House, South Church Street, Grand Cayman, Cayman Island, British West Imdies

Ronald Hirsch                       223 North Guadalupe, PMB # 153, Santa Fe, NM 87501

UK Private Investors

AIB Nominees                        AIB Nominees, Allied Irish Bank House, P.O. Box 468, Grenville Street, St.
                                    Hellier, Jersey JE 8WT, Channel Islands

Marquis Limited                     Mr. Brad Walmsley, VP Cititrust Switzerland, 62 Rue du Rhone, PO BOAX 3946, CH-1211,
                                    Geneva 3, Switzerland

Ms. Caroline Kauslick Coombs        23 York Avenue, East Sheen, London, SW14, 7LQ, UK

Mr. Phelim Greene                   72 Leopardstown Ave., Blackrock, Co. Dublin, Ireland

Mr. Donal Greene                    Treetops, 114 Roebuck Road, Clonskeagh, Dublin 14, Ireland

Mr. Kevin MacNally                  3 Ailesbury Way, Ailesbury Road, Dublin 4, Ireland

Mrs. Niamh McGowan                  Smurfit Print, 33 Botanic Road, Glasnevin, Dublin 9, Ireland

Ms. Margaret Kennedy                9 Ashurst College Road, Kilkenny, Co. Kilkenny, Ireland

Total Direct Series B Preferred I

Total Converted + Direct Investor
</TABLE>
<PAGE>

                        FORM OF PURCHASER SIGNATURE PAGE

         By its execution and delivery of this signature page, the undersigned
Purchaser hereby joins in and agrees to be bound by the terms and conditions of
(i) the Series B Convertible Preferred Stock Purchase Agreement dated as of
February 18, 2000 (the "Series B Purchase Agreement") by and among Corechange,
Inc. ("Corechange") and the Purchasers (as defined therein), as to the number of
shares of Series B Convertible Preferred Stock set forth below, (ii) the Amended
and Restated Stockholders Agreement dated as of February 18, 2000 (the
"Stockholders Agreement") by and among Corechange and the stockholders (as
defined therein) as a "Stockholder" thereunder, and (iii) the Registration
Agreement dated as of February 18, 2000 (the "Registration Agreement ") by and
among Corechange and the Holders (as defined therein) as a "Holder" thereunder,
and authorizes this signature page to be attached to the Series B Purchase
Agreement, the Stockholders Agreement and the Registration Agreement or
counterparts thereof.

                                               Name of Purchaser

                                               ----------------------------

                                               By:
                                                    -----------------------
                                                        Title:

                                               Record
                                               Address:
                                                       --------------------

                                               ----------------------------

                                               Telecopy No.:
                                                            ---------------

                                               Number of Shares:
                                                                -----------

                                               Aggregate purchase price:

                                               $-------------

Agreed to and accepted this

___ day of ________, 2000

CORECHANGE, INC.

By:
    ----------------------
         Title:

             PLEASE COMPLETE, SIGN AND RETURN AS SOON AS POSSIBLE BY
        TELECOPY, WITH THE ORIGINAL THEN SENT BY OVERNIGHT COURIER, TO:

                             STUART M. FALBER, ESQ.
                                Hale and Dorr LLP
                                 60 State Street
                                Boston, MA 02109
                                Tel: 617-526-6663
                                Tel: 617-526-5000

<PAGE>

                                                                       EXHIBIT A

                            CERTIFICATE OF AMENDMENT

                                       OF

                          CERTIFICATE OF INCORPORATION

                                       OF

                                CORECHANGE, INC.

                         Pursuant to Section 242 of the

                General Corporation Law of the State of Delaware

CORECHANGE, INC., (hereinafter called the "Corporation"), a corporation
organized and existing under and by virtue of the General Corporation Law of the
State of Delaware, does hereby certify as follows:

By action of the Board of Directors of the Corporation taken at a meeting, a
resolutions was duly adopted, pursuant to Section 242 of the General Corporation
Law of the State of Delaware, setting forth an amendment to the Certificate of
Incorporation of the Corporation and declaring said amendment to be advisable.
The stockholders of the Corporation duly approved said proposed amendment by
written consent in accordance with Sections 228 and 242 of the General
Corporation Law of the State of Delaware, and written notice of such consent
will be given to all stockholders who have not consented in writing to said
amendment. The resolution setting forth the amendment is as follows:

RESOLVED: That Article FOURTH of the Certificate of Incorporation of the
          Corporation be and hereby is deleted in its entirety and that Article
          FOURTH in the form attached hereto as EXHIBIT A be inserted in lieu
          thereof.

IN WITNESS WHEREOF, the Corporation has caused its corporate seal to be affixed
hereto and this Certificate of Amendment to be signed by its President this 18th
day of February, 2000.

                                             CORECHANGE, INC.

                                             By:  __________________________
                                                      President
                                                      Ulf Arnetz

<PAGE>

                         EXHIBIT A TO THE CERTIFICATE OF
                  AMENDMENT OF THE CERTIFICATE OF INCORPORATION
                               OF CORECHANGE, INC.

                  Article Fourth of the Certificate of Incorporation is hereby
amended and restated in its entirety to read as follows:

         ARTICLE FOURTH. The Corporation shall only be authorized to issue
15,000,000 shares of common stock, $.01 par value per share (including Common
Stock reserved for conversion of the Preferred Stock, and convertible
securities, options and warrants), and7,849,584 shares of Preferred Stock, $.01
par value per share consisting of: (a) 413,965 shares designated as Series I
Junior Convertible Preferred Stock, $.01 par value per share (the "SERIES I
PREFERRED"), (b) 336,021 shares designated as Series II Junior Convertible
Preferred Stock, $.01 par value per share (the "SERIES II PREFERRED"), (c)
215,000 shares designated as Series III Junior Convertible Preferred Stock, $.01
par value per share (the "SERIES III PREFERRED"), (d) 2,884,598 shares
designated as Series A Convertible Preferred Stock, $.01 par value per share
(the "SERIES A PREFERRED"), and (e) 4,000,000 shares designated as Series B
Convertible Preferred Stock, $.01 par value per share (the "SERIES B PREFERRED,"
and collectively with the Series I Preferred, Series II Preferred, Series III
Preferred and Series A Preferred the "PREFERRED STOCK"). The relative powers,
preferences, and rights of and the relative qualifications, limitations, and
restrictions on such common stock and the Preferred Stock shall be as follows:

         Section 1.        DEFINITIONS.

         Capitalized terms used in this ARTICLE FOURTH and not otherwise defined
herein shall have the meanings set forth in SECTION 11 hereof.

         Section 2.        RELATIVE RIGHTS AND PRIVILEGES.

         2A. COMMON STOCK. Except as otherwise provided by the General
Corporation Law of the State of Delaware or by this Article IV fixing the
relative powers, preferences and rights and the qualifications, limitations or
restrictions of any series of Preferred Stock, the entire voting power of the
shares of the Corporation for the election of Directors and for all other
purposes, as well as all other rights appertaining to shares of the Corporation,
shall be vested exclusively in the Common Stock. Each share of Common Stock
shall have one vote upon all matters to be voted on by the holders of the Common
Stock at all meetings of stockholders (and written actions in lieu of meetings).
There shall be no cumulative voting. The number of authorized shares of Common
Stock may be increased or decreased (but not below the number of

                                       1

<PAGE>

shares thereof then outstanding) by the affirmative vote of the holders of a
majority of the stock of the Corporation entitled to vote irrespective of the
provisions of Section 242(b)(2) of the General Corporation Law of Delaware.

                   Each share of Common Stock shall be entitled to participate
equally in all dividends payable with respect to the Common Stock and to share
equally, subject to the rights and preferences of any Preferred Stock, in all
assets of the Corporation, in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the affairs of the
Corporation, or upon any distribution of the assets of the Corporation.

         2B. PREFERRED STOCK. Preferred Stock may be issued from time to time in
one or more series, each of such series to have such terms as stated or
expressed herein and in the resolution or resolutions providing for the issue of
such series adopted by the Board of Directors of the Corporation as hereinafter
provided. Any shares of Preferred Stock which may be redeemed, purchased or
acquired by the Corporation may be reissued except as otherwise provided by law.
Different series of Preferred Stock shall not be construed to constitute
different classes of shares for the purposes of voting by classes unless
expressly provided.

                   Authority is hereby expressly granted to the Board of
Directors from time to time to issue the Preferred Stock in one or more series,
and in connection with the creation of any such series, by resolution or
resolutions providing for the issue of the shares thereof, to determine and fix
such voting powers, full or limited, or no voting powers, and such designations,
preferences or relative participating, optional or other special rights, and
qualifications, limitations or restrictions thereof, including without
limitation thereof, dividend rights, conversion rights, redemption privileges
and liquidation preferences, all to the full extent now or hereafter permitted
by the General Corporation law of Delaware. Without limiting the generality of
the foregoing, the resolutions providing for issuance of any series of Preferred
Stock may provide that such series shall be superior or rank equally or be
junior to the Preferred Stock or any other series to the extent permitted by
law. Except as otherwise provided in this Certificate of Incorporation, no vote
of the holders of the Preferred Stock or Common Stock shall be a prerequisite to
the designation or issuance of any shares of any series of the Preferred Stock
authorized by and complying with the conditions of this Certificate of
Incorporation, the right to have such vote being expressly waived by all present
and future holders of the capital stock of the Corporation.

         Section 3.        DIVIDENDS.

         3A. ORDINARY DIVIDENDS. The Board of Directors of the Corporation may
determine the amount, timing and nature of any dividends or other distributions
to be declared and paid with respect to each share of Common Stock, provided
however, that the Corporation may not pay any such dividends nor make any such
distributions, whether in cash or in kind, with respect to any share of Common
Stock (other than dividends payable in shares of Common Stock or other
securities of the Corporation distributed in connection with repurchases of

                                       2

<PAGE>

Common Stock held by employees, officers, directors, consultants and advisers of
the Corporation pursuant to the Company's stock restriction agreements), unless
the Corporation shall have also declared and paid to the holders of the
Preferred Stock at the same time that it declares and pays such dividends to the
holders of the Common Stock, the dividends which would have been declared and
paid with respect to the Common Stock issuable upon conversion of the Preferred
Stock had all of the outstanding Preferred Stock been converted into Common
Stock immediately prior to the record date for such dividend, or if no record
date is fixed, the date as of which the record holders of Common Stock entitled
to such dividends are to be determined.

         3B. PREFERENTIAL DIVIDENDS; GENERAL OBLIGATION. In addition to any
dividends under SECTION 3A, and to the extent permitted under the General
Corporation Law of Delaware, the Corporation shall pay preferential dividends in
cash to the holders of the Series B Preferred as provided in SECTIONS 3B, 3C AND
3D. Except as otherwise provided herein, dividends (the "8% Dividends") on each
share of the Series B Preferred (a "SERIES B SHARE") shall accrue on a daily
basis at the rate of 8% per annum on the Liquidation of each Series B Share from
and including the date of issuance of such Series B Share to and including the
first to occur of (i) the date on which the Liquidation Value of such Series B
Share (plus all accrued and unpaid dividends thereon) is paid to the holder
thereof in connection with the liquidation of the Corporation pursuant to
SECTION 4 or the redemption of such Series B Share by the Corporation pursuant
to SECTION 5, and (ii) the date on which such Series B Share is converted into
shares of Conversion Stock pursuant to SECTION 7. Such dividends shall accrue
whether or not they have been declared and whether or not there are profits,
surplus or other funds of the Corporation legally available for the payment of
dividends, and such dividends shall be cumulative. The date on which the
Corporation initially issues any Series B Share shall be deemed to be its "date
of issuance" regardless of the number of times transfer of such Series B Share
is made on the stock records maintained by or for the Corporation and regardless
of the number of certificates which may be issued to evidence such Series B
Share.

         3C. ACCUMULATION OF DIVIDENDS DIVIDEND PAYMENT REFERENCE DATES. All
preferential dividends which have accrued on each Series B Share under SECTION 3
shall be accumulated and shall remain accumulated dividends with respect to such
Series B Share until paid to the holder thereof.

         3D. DISTRIBUTION OF PARTIAL DIVIDEND PAYMENTS. Except as otherwise
provided herein, if at any time the Corporation pays less than the total amount
of dividends then accrued with respect to the Series B Preferred, such payment
shall be distributed pro rata among the holders thereof based upon the aggregate
accrued but unpaid dividends on the Series B Shares held by each such holder.

                                       3

<PAGE>

         Section 4.        LIQUIDATION.

         4A. PRIORITY OF SERIES B PREFERRED. Upon any liquidation, dissolution
or winding up of the Corporation (whether voluntary or involuntary), each holder
of Series B Preferred shall be entitled to be paid, after and subject to the
payment in full of all amounts required to be distributed to the holders of any
class or series of stock ranking in liquidation prior and in preference to the
Series B Preferred, but before any distribution or payment is made upon any
Junior Securities, an amount in cash equal to the greater of (i) the aggregate
Liquidation Value of all Series B Shares held by such holder (plus all accrued
and unpaid dividends thereon), and (ii) an amount in cash equal to the amount
such holder would have received had such holder's Series B Shares been converted
into Conversion Stock immediately prior to such liquidation, dissolution or
winding up. If upon any such liquidation, dissolution or winding up of the
Corporation, the Corporation's assets to be distributed among the holders of the
Series B Preferred are insufficient to permit payment to such holders of the
aggregate amount that they are entitled to be paid under this Section 4, then
such assets shall be distributed pro rata among the holders of the Series B
Preferred and of any other class or series of stock ranking on liquidation on a
parity with the Series B Preferred based upon the aggregate amount each such
holder would otherwise be entitled to receive if all amounts payable on or with
respect to such shares were paid in full. For purposes of the foregoing
paragraph, the mere fact that an event may constitute a Change in Ownership or
Fundamental Change as defined hereinafter shall not by itself cause such event
to be construed as a liquidation, dissolution or winding up of the Corporation.

         4B. PRIORITY OF SERIES A PREFERRED. Upon any liquidation, dissolution
or winding up of the Corporation (whether voluntary or involuntary), after and
subject to payment of all amounts due to the holders of Series B Shares as
provided above in Section 4A and any other class or series of stock of the
Corporation ranking on liquidation prior and in preference to Series A
Preferred, each holder of Series A Preferred shall be entitled to be paid,
before any distribution or payment is made upon any Junior Securities and on a
parity with the Series I, II and III, an amount in cash equal to the aggregate
Liquidation Value of all Series A Preferred held by such holder (plus all
accrued and unpaid dividends thereon). If upon any such liquidation, dissolution
or winding up of the Corporation the Corporation's assets to be distributed
among the holders of the Series A Preferred and any other class or series of
stocks ranking on liquidation on a parity with such Series A Preferred (after
payment to the holders of the Series B Preferred and any other class or series
of stock of the Corporation ranking on liquidation prior and in preference to
the Series A Preferred) are insufficient to permit payment to such holders of
the aggregate amount that they are entitled to be paid upon such liquidation,
dissolution or winding up of the Corporation, then the entire assets available
to be distributed to the Corporation's stockholders, after payment of all
amounts due to the holders of Series B Shares as provided above in Section 4A
and any other class or series of stock of the Corporation ranking on liquidation
prior and in preference to the Series A Preferred, shall be distributed pro rata
among the holders of the Series A Preferred and any other class or series of
stock ranking on liquidation on a parity with the Series A Preferred Stock based
upon the amount each such holders would otherwise be entitled to receive if all
amounts payable in or with respect to such shares were paid

                                       4

<PAGE>

in full. For purposes of the foregoing paragraph, the mere fact that an event
may constitute a Change in Ownership or Fundamental Change as defined
hereinafter shall not by itself cause such event to be construed as a
liquidation, dissolution or winding up of the Corporation.

         4C. DISTRIBUTION TO HOLDERS OF COMMON STOCK. Upon any liquidation,
dissolution or winding up of the Corporation (whether voluntary or involuntary),
after and subject to payment of all amounts due to the holders of Preferred
Stock as provided above in SECTIONS 4A AND 4B in the Certificate of Designation
for the Series I Preferred, Series II Preferred and Series III Preferred,
respectively, any remaining assets or funds of the Corporation available for
distribution to the holders of capital stock of the Corporation shall be
distributed among the holders of Common Stock, pro rata, based on the number of
shares of Common Stock held by each stockholder.

         4D. DECLARATION OF DIVIDENDS PRIOR TO LIQUIDATION. Prior to the
liquidation, dissolution or winding up of the Corporation, the Corporation shall
declare for payment all accrued and unpaid dividends with respect to the
Preferred Stock, but only to the extent of funds of the Corporation legally
available for the payment of dividends, giving preference first to those unpaid
dividends due to the holders of the Series B Preferred in the event that there
are not sufficient funds of the Corporation legally available for payment of all
such unpaid dividends.

         4E. NOTICE. Not less than 10 days prior to the payment date stated
therein, the Corporation shall mail written notice of any such liquidation,
dissolution or winding up to each record holder of Preferred Stock, setting
forth in reasonable detail the amount of proceeds to be paid with respect to
each share of Preferred Stock and each share of Common Stock in connection with
such liquidation, dissolution or winding up.

         Section 5.        REDEMPTIONS.

         5A. CHANGE IN OWNERSHIP.

             i. If a Change in Ownership has occurred or the Corporation obtains
         knowledge that a Change in Ownership is proposed to occur, the
         Corporation shall give prompt written notice of such Change in
         Ownership or proposed Change in Ownership describing in reasonable
         detail the material terms and date of consummation thereof to each
         holder of Series A Preferred and each holder of Series B Preferred, and
         the Corporation shall give each such holder prompt written notice of
         any material change in the terms or timing of such transaction to the
         extent it is aware of such information.

             ii. In the event of a Change in Ownership, the holder or holders of
         a majority of the Series B Preferred Shares then outstanding may
         require the Corporation to redeem all of the Series B Preferred Shares
         at a Redemption Price per Series B Preferred Share equal to the
         Liquidation Value thereof (plus all accrued and unpaid dividends
         thereon) subject to the payment in full of all amounts required to be
         distributed in the

                                       5

<PAGE>

          event of such Change in Ownership to the holders of any class or
          series of stock ranking prior in preference to the Series B Preferred;
          provided that, if the aggregate consideration paid to the Corporation
          or its stockholders as a result of the Change in Ownership as
          determined by the Board of Directors in their reasonable discretion
          equals at least $30 million, then accrued and unpaid 8% Dividends
          shall not be included in the redemption price and shall not be paid to
          the holders of Series B Preferred Shares in connection with such
          redemption. The Redemption Price under this paragraph may, in the
          Board's reasonable discretion, be paid with the same form of
          consideration received by the selling shareholders for their
          controlling interest in the Corporation, with the value of such
          consideration to be determined by the Board in its reasonable
          discretion.

              iii. In the event of a Change in Ownership, after and subject to
          payment of all amounts to the holders of Series B Preferred Shares as
          provided above in SECTION 5B(ii), the holder or holders of a majority
          of the Series A Preferred Shares then outstanding may require the
          Corporation to redeem all of the Series A Preferred Shares for a
          Redemption Price equal to the Liquidation Value thereof (plus all
          accrued and unpaid dividends thereon) subject to the payment in full
          of all amounts required to be distributed in the event of such Change
          in Ownership to the holders of any class or series of stock ranking
          prior in preference to the Series A Preferred.

              iv. The foregoing majority holder or holders may require
          redemption as described above by giving written notice to the
          Corporation of their respective elections prior to the later of (a) 21
          days after receipt of the Corporation's notice and (b) five days prior
          to the consummation of the Change in Ownership (the "EXPIRATION
          DATE"). Upon the later of (a) the occurrence of the Change in
          Ownership, and (b) five days after the Corporation's receipt of such
          election(s), the Corporation shall be obligated to redeem: first, the
          Series B Preferred Shares in accordance with SECTION 5A(ii); and
          SECOND, after and subject to redemption of such Series B Preferred
          Shares, the Series A Preferred Shares in accordance with SECTION
          5A(iii).

              v. If any proposed Change in Ownership does not occur, all
          requests for redemption in connection therewith shall be automatically
          rescinded.

              vi. The term "CHANGE IN OWNERSHIP" means any sale, transfer or
          issuance or series of sales, transfers and/or issuances of shares of
          the Corporation's capital stock by the Corporation or any holders
          thereof which results in any Person or group of Persons (as the term
          "group" is used under the Securities Exchange Act of 1934), other than
          the holders of capital stock as of the date of the Purchase Agreement,
          owning or otherwise controlling more than 50% of the capital stock of
          the Corporation entitled to vote in ordinary circumstances.

              vii. Nothing herein shall be deemed to limit or restrict the right
          of a holder of Preferred Stock to convert such Shares into Conversion
          Stock in connection with a Change in Ownership.

                                       6

<PAGE>

          5B. DEMAND AND AUTOMATIC REDEMPTIONS.

              i. The holders of Series A Preferred and Series B Preferred shall
          be entitled to demand redemption as provided below in Section 5C(ii)
          (a "Demand Redemption") and automatic redemption as provided below in
          Section 5C(iii) of their Shares as further provided in this Section
          5C.

              ii. At any time on or after the fifth anniversary of the first
          issuance of Series B Preferred, the holders of at least a majority of
          the Series B Preferred then outstanding shall be entitled to require
          the Corporation to redeem all of the Series B Shares by notifying the
          Corporation in writing that such holders are requiring redemption (the
          "Series B Demand Redemption Notice"). Within five (5) business days
          following the Corporation's receipt of the Series B Demand Redemption
          Notice, the Corporation shall deliver a copy of such written notice to
          all other holders of Series B Preferred, and the Redemption shall be
          consummated within sixty (60) business days following final
          determination of the Redemption Price; provided, however, that if the
          Corporation receives a Series B Demand Redemption Notice prior to
          redemption of the Series A Preferred as provided below, then the
          Series B Preferred shall be redeemed hereunder prior to and in
          preference of the Series A Preferred.

              iii. At any time on or after the fifth anniversary of the first
          issuance of Series B Preferred but subject to the further provisions
          of this SECTION 5 (including SECTION 5C(ii)), the holders of at least
          a majority of the Series A Preferred then outstanding shall be
          entitled to require the Corporation to redeem all of the Series A
          Shares by notifying the Corporation in writing that such holders are
          requiring redemption (the "SERIES A DEMAND REDEMPTION NOTICE"). Within
          five (5) business days following the Corporation's receipt of the
          Series A Demand Redemption Notice, the Corporation shall deliver a
          copy of such written notice to all holders of Series B Preferred, and
          the Redemption shall be consummated within sixty (60) business days
          following final determination of the Redemption Price.

              iv. The Corporation shall give written notice at least 45 days
          prior to the redemption dates provided herein, and any rescheduled
          redemption dates as provided below, of its intention to redeem Series
          A Preferred as provided herein, to each holder of Series A Preferred
          and each holder of Series B Preferred, such notice to be addressed to
          each holder at the address as it appears on the stock transfer books
          of the Corporation and to specify the date of redemption and the
          number of shares to be redeemed. Notwithstanding the foregoing, the
          holders of at least a majority of the Series A Preferred shall have
          the right to postpone the redemption dates or waive (on a pro rata
          basis) the obligation of the Corporation to redeem all or part of the
          Series A Preferred by written notice given to the Corporation at least
          ten (10) days prior to the scheduled redemption

                                       7

<PAGE>

          date. The holders of Series A Preferred shall have the right to
          postpone or waive in the manner provided above the obligation of the
          Corporation to redeem Shares each time the Corporation gives notice of
          redemption. The Corporation shall not redeem the Series A Preferred of
          any holder of Series A Preferred until the scheduled redemption date,
          and then only if the holders of a majority of the Series A Preferred
          have not exercised their right to postpone or waive such redemption.

              v. The "REDEMPTION PRICE" for purposes of this SECTION 5C shall be
          equal, per Share, to: (A) in the case of Series A Preferred, the
          Liquidation Value for such Share plus all accrued and unpaid dividends
          thereon, or (B) in the case of Series B Preferred, the greater of (x)
          the Liquidation Value for such Share plus all accrued and unpaid
          dividends thereon and (y) the Market Price thereof.

              vi. If the funds of the Corporation legally available for
          redemption of the Preferred Stock subject to redemption as described
          above are insufficient to redeem the Series B Shares, then the
          Corporation shall redeem (a) first, the Series B pro rata among the
          holders of the Series B Shares, and (b) second, the Series A Preferred
          Shares to the extent required to be redeemed as set forth above in
          SECTION 5C(iii), pro rata among the holders thereof in accordance with
          their respective ownership percentages of all issued and outstanding
          Series A Preferred. In such event and in exchange for its ratable
          share of legally available funds, each holder of such Preferred Stock
          shall be required to deliver to the Corporation certificate(s), duly
          endorsed for transfer to the Corporation, representing the number of
          its shares of such Preferred Stock calculated by dividing its ratable
          share of legally available funds by the Redemption Price. Fractional
          redemption of shares of Preferred Stock shall not, however, be
          permitted, and any fractional Share resulting from the above formula
          shall be retained by the holder thereof until subsequently redeemed
          pursuant to this SECTION 5C. If the certificates delivered to the
          Corporation by a holder represent(s) a number of shares of such
          Preferred Stock in excess of the Shares resulting from the above
          formula, the Corporation shall be obligated to issue to such holder a
          certificate representing the excess number of shares of such Preferred
          Stock. If at any time after the aforementioned redemption, additional
          funds of the Corporation become legally available for payment to the
          remaining holders of Series A Preferred or Series B Preferred, such
          funds will be used, at the end of the next succeeding fiscal quarter
          and in accordance with the procedure outlined above, to pay such
          holders ratably for additional Shares until the Redemption Price for
          each such share of Preferred Stock is paid in full.

          5C. DIVIDENDS IN CONNECTION WITH REDEMPTION. Prior to any redemption
of Series A Preferred or Series B Preferred, the Corporation shall declare for
payment all accrued and unpaid dividends with respect to the Shares which are to
be redeemed, but only to the extent of funds of the Corporation legally
available for the payment of dividends, provided, however that in the event that
the Redemption Price is based upon the Market Price, no dividends shall be

                                       8

<PAGE>

declared (and all rights to such dividends shall be deemed to have been forgiven
by such holder). No Share shall be entitled to any dividends accruing after the
date on which the Redemption Price of such Share (plus all accrued and unpaid
dividends thereon) is paid to the holder of such Share. On such date, all rights
of the holder of such Share shall cease, and such Share shall no longer be
deemed to be issued and outstanding.

         5D. REDEEMED OR OTHERWISE ACQUIRED SHARES. Any Shares which are
redeemed or otherwise acquired by the Corporation shall be canceled and shall
not be reissued, sold or transferred, and the Corporation may from time to time
take such appropriate actions as may be necessary to reduce the authorized
Series B Preferred accordingly.

         5E. NO OTHER REDEMPTION. The Corporation shall not have the rights to
redeem any shares of Preferred Stock unless the holders thereof require the
Corporation to redeem their shares of Preferred Stock as provided under this
SECTION 5.

         Section 6.        VOTING.

         Except as otherwise required by law, with respect to all matters
submitted to a vote of holders of Common Stock generally, the holder of each
Share of Series A Preferred and each Share of Series B Preferred (i) shall be
entitled to the number of votes which is equal to the number of shares of
Conversion Stock into which such Share is then convertible; (ii) shall have
voting rights and powers equal to the voting rights and powers of any other
holder of a share of Common Stock and shall vote as a single class with the
holders of shares of Common Stock and the holders of all other shares of stock
entitled to vote with the holders of Common Stock; and (iii) shall be entitled
to notice of any meeting of the holders of Common Stock of the Corporation in
accordance with the bylaws of the Corporation. Fractional votes shall not,
however, be permitted and any fractional voting rights resulting from the above
formula (after aggregating all shares into which Shares of Series A Preferred
and Series B Preferred held by each holder could then be converted) shall be
rounded to the nearest whole number (with one-half being rounded upward).

         Section 7.        CONVERSION.

         7A. CONVERSION PROCEDURE.

              i. At any time and from time to time, any holder of Series A
         Preferred or Series B Preferred may convert all or any portion of the
         Series A Preferred and Series B Preferred (including any fraction of a
         Share) held by such holder into a number of shares of Conversion Stock
         computed by multiplying the number of Shares of such Preferred Stock
         to be converted, by the Liquidation Value for such Shares and dividing
         the result by the Conversion Price for such Shares then in effect.

                                       9

<PAGE>

              ii. Except as otherwise provided herein, each conversion of such
          Preferred Stock shall be deemed to have been effected as of the close
          of business on the date on which the certificate or certificates
          representing such Preferred Stock to be converted have been
          surrendered for conversion at the principal office of the Corporation.
          At the time any such conversion has been effected, the rights of the
          holder of the Shares converted as a holder of such Shares shall cease
          and the Person or Persons in whose name or names any certificate or
          certificates for shares of Conversion Stock are to be issued upon such
          conversion shall be deemed to have become the holder or holders of
          record of the shares of Conversion Stock represented thereby.

              iii. The conversion rights of any Share subject to redemption
          hereunder shall terminate 10 business days prior to the Redemption
          Date for such Share unless the Corporation has failed to pay to the
          holder thereof the full consideration therefor required hereunder.

              iv. If conversion of the Series A Preferred or Series B Preferred
          is to be made in connection with a Public Offering or other
          transaction affecting the Corporation, the conversion of any Shares
          may, at the election of the holder thereof, be conditioned upon the
          consummation of such transaction (including, without limitation, a
          Change in Ownership, Fundamental Change or Organic Change), in which
          case such conversion shall not be deemed to be effective until such
          transaction has been consummated.

              v. Notwithstanding any other provision hereof, all accrued and
          unpaid dividends on the Shares so converted shall be canceled
          immediately prior to such conversion, and the holder(s) of such Shares
          shall not receive, nor shall they be entitled to, any payment in
          respect of such dividends.

              vi. As soon as possible after a conversion has been effected (but
          in any event within five business days in the case of Section
          7A(vi)(a) below), the Corporation shall deliver to the converting
          holder:

                      (a) a certificate or certificates representing the number
                  of shares of Conversion Stock issuable by reason of such
                  conversion in such name or names and such denomination or
                  denominations as the converting holder has specified; and

                      (b) a certificate representing any Shares of Series A
                  Preferred or Series B Preferred, as applicable, that were
                  represented by the certificate or certificates delivered to
                  the Corporation in connection with such conversion but which
                  were not converted.

                                       10

<PAGE>

              vii. The issuance of certificates for shares of Conversion Stock
          upon conversion of such Preferred Stock shall be made without charge
          to the holders of such Preferred Stock for any issuance tax in respect
          thereof or other cost incurred by the Corporation in connection with
          such conversion and the related issuance of shares of Conversion
          Stock. Upon conversion of each Share, the Corporation shall take all
          such actions as are necessary in order to insure that the Conversion
          Stock issuable with respect to such conversion shall be validly
          issued, fully paid and nonassessable, free and clear of all taxes,
          liens, charges and encumbrances with respect to the issuance thereof.

              viii. If required by the Corporation, certificates surrendered for
          conversion shall be endorsed or accompanied by a written instrument or
          instruments of transfer, in a form reasonably satisfactory to the
          Corporation, duly executed by the registered holder.

              ix. The Corporation shall not close its books against the transfer
          of such Preferred Stock or of Conversion Stock issued or issuable upon
          conversion of such Preferred Stock in any manner that interferes with
          the timely conversion of such Preferred Stock. The Corporation shall
          assist and cooperate with any holder of Shares required to make any
          governmental filings or obtain any governmental approval prior to or
          in connection with any conversion of Shares hereunder (including,
          without limitation, making any filings required to be made by the
          Corporation).

              x. The Corporation shall at all times reserve and keep available
          out of its authorized but unissued shares of Conversion Stock, solely
          for the purpose of issuance upon the conversion of such Preferred
          Stock, such number of shares of Conversion Stock issuable upon the
          conversion of all outstanding Shares. All shares of Conversion Stock
          which are so issuable shall, when issued, be duly and validly issued,
          fully paid and nonassessable and free from all taxes, liens and
          charges. The Corporation shall take all such actions as may be
          necessary to assure that all such shares of Conversion Stock may be so
          issued without violation of any applicable law or governmental
          regulation or any requirements of any domestic securities exchange
          upon which shares of Conversion Stock may be listed (except for
          official notice of issuance which shall be immediately delivered by
          the Corporation upon each such issuance). The Corporation shall not
          take any action that would cause the number of authorized but unissued
          shares of Conversion Stock to be less than the number of such shares
          required to be reserved hereunder for issuance upon conversion of the
          Shares.

              xi. If any fractional interest in a share of Conversion Stock
          would, except for the provisions of this subsection, be delivered upon
          any conversion of such Preferred Stock, the Corporation, in lieu of
          delivering the fractional share therefor, shall pay an amount to the
          holder thereof equal to the Conversion Price of such fractional
          interest as of the date of conversion.

                                       11

<PAGE>

              xii. If the shares of Conversion Stock issuable by reason of
          conversion of such Preferred Stock are convertible into or
          exchangeable for any other stock or securities of the Corporation, the
          Corporation shall, at the converting holder's option, upon surrender
          of the Shares to be converted by such holder as provided herein
          together with any notice, statement or payment required to effect such
          conversion or exchange of Conversion Stock, deliver to such holder or
          as otherwise specified by such holder a certificate or certificates
          representing the stock or securities into which the shares of
          Conversion Stock issuable by reason of such conversion are so
          convertible or exchangeable, registered in such name or names and in
          such denomination or denominations as such holder has specified.

              xiii. All shares of Series A Preferred and Series B Preferred that
          have been surrendered for conversion as herein provided shall no
          longer be deemed to be outstanding and all rights with respect to such
          shares, including the rights if any to receive notices and to vote,
          shall immediately cease and terminate on the effective date of such
          conversion, except only the right of the holders thereof to receive
          shares of Conversion Stock in exchange therefor and payment of any
          declared and unpaid dividends thereon. Any shares of Series A
          Preferred and Series B Preferred so converted shall be retired and
          cancelled and shall not be reissued, and the Corporation may from time
          to time take such appropriate action as may be necessary to reduce the
          authorized shares of Series A Preferred or Series B Preferred, as
          applicable, accordingly.

          7B. CONVERSION PRICE.

              i. The initial Conversion Price shall be as follows: (1) for the
          Series A Preferred, $4.160024 per Series A Preferred Share, and (2)
          for the Series B Preferred $5.837 per Series B Preferred Share (the
          "Conversion Price"). In order to prevent dilution of the conversion
          rights granted under this Section 7, the respective Conversion Price
          for the Series A Preferred and Series B Preferred shall be subject to
          adjustment from time to time pursuant to this Section 7B.

              ii. If and whenever on or after the original date of issuance of
          the Series A Preferred or the original date of issuance of the Series
          B Preferred, as applicable, the Corporation issues or sells, or in
          accordance with Section 7C is deemed to have issued or sold, any
          shares of its Common Stock for a consideration per share less than the
          Conversion Price for the applicable Series A Preferred or Series B
          Preferred in effect immediately prior to the time of such issue or
          sale, then immediately upon such issuance or sale or deemed issuance
          or sale, such Conversion Price(s) shall be reduced to the Conversion
          Price determined by dividing (a) the sum of (1) the product derived by
          multiplying the Conversion Price in effect for such Shares immediately
          prior to such issue or sale by the number of shares of Common Stock
          Deemed Outstanding immediately prior to such issue or sale, plus (2)
          the consideration, if any, received by the

                                       12

<PAGE>

          Corporation upon such issue or sale, by (b) the number of shares of
          Common Stock Deemed Outstanding immediately after such issue or sale.

          7C. EFFECT ON CONVERSION PRICE OF CERTAIN EVENTS. For purposes of
determining the adjusted Conversion Price under SECTION 7B, the following shall
be applicable:

              i. ISSUANCE OF RIGHTS OR OPTIONS. If the Corporation in any manner
          grants or sells any Options and the price per share for which Common
          Stock is issuable upon the exercise of such Options, or upon
          conversion or exchange of any Convertible Securities issuable upon
          exercise of such Options, is less than the Conversion Price in effect
          immediately prior to the time of the granting or sale of such Options,
          then the total maximum number of shares of Common Stock issuable upon
          the exercise of such Options or upon conversion or exchange of the
          total maximum amount of such Convertible Securities issuable upon the
          exercise of such Options shall be deemed to be outstanding and to have
          been issued and sold by the Corporation at the time of the granting or
          sale of such Options for such price per share. For purposes of this
          Section, the "price per share for which Common Stock is issuable"
          shall be determined by dividing (A) the total amount, if any, received
          or receivable by the Corporation as consideration for the granting or
          sale of such Options, plus the minimum aggregate amount of additional
          consideration payable to the Corporation upon exercise of all such
          Options, plus in the case of such Options which relate to Convertible
          Securities, the minimum aggregate amount of additional consideration,
          if any, payable to the Corporation upon the issuance or sale of such
          Convertible Securities and the conversion or exchange thereof, by (B)
          the total maximum number of shares of Common Stock issuable upon the
          exercise of such Options or upon the conversion or exchange of all
          such Convertible Securities issuable upon the exercise of such
          Options. No further adjustment of the Conversion Price shall be made
          when Convertible Securities are actually issued upon the exercise of
          such Options or when Common Stock is actually issued upon the exercise
          of such Options or the conversion or exchange of such Convertible
          Securities.

              ii. ISSUANCE OF CONVERTIBLE SECURITIES. If the Corporation in any
          manner issues or sells any Convertible Securities and the price per
          share for which Common Stock is issuable upon conversion or exchange
          thereof is less than the Conversion Price in effect immediately prior
          to the time of such issue or sale, then the maximum number of shares
          of Common Stock issuable upon conversion or exchange of such
          Convertible Securities shall be deemed to be outstanding and to have
          been issued and sold by the Corporation at the time of the issuance or
          sale of such Convertible Securities for such price per share. For the
          purposes of this Section, the "price per share for which Common Stock
          is issuable" shall be determined by dividing (A) the total amount
          received or receivable by the Corporation as consideration for the
          issue or sale of such Convertible Securities, plus the minimum
          aggregate amount of additional

                                       13

<PAGE>

          consideration, if any, payable to the Corporation upon the conversion
          or exchange thereof, by (B) the total maximum number of shares of
          Common Stock issuable upon the conversion or exchange of all such
          Convertible Securities. No further adjustment of the Conversion Price
          shall be made when Common Stock is actually issued upon the conversion
          or exchange of such Convertible Securities, and if any such issue or
          sale of such Convertible Securities is made upon exercise of any
          Options for which adjustments of the Conversion Price had been or are
          to be made pursuant to other provisions of this SECTION 7, no further
          adjustment of the Conversion Price shall be made by reason of such
          issue or sale.

              iii. CHANGE IN OPTION PRICE OR CONVERSION RATE. If the purchase
          price provided for in any Options, the additional consideration, if
          any, payable upon the conversion or exchange of any Convertible
          Securities or the rate at which any Convertible Securities are
          convertible into or exchangeable for Common Stock changes at any time,
          the Conversion Price in effect at the time of such change shall be
          immediately adjusted to the Conversion Price which would have been in
          effect at such time had such Options or Convertible Securities still
          outstanding provided for such changed purchase price, additional
          consideration or conversion rate, as the case may be, at the time
          initially granted, issued or sold. For purposes of SECTION 7C, if the
          terms of any Option or Convertible Security which was outstanding as
          of the original date of issuance of the Series A Preferred or Series B
          Preferred, respectively, are changed in the manner described in the
          immediately preceding sentence, then for purposes of the Conversion
          Price applicable to such Series A Preferred or Series B Preferred, as
          applicable, such Option or Convertible Security and the Common Stock
          deemed issuable upon exercise, conversion or exchange thereof shall be
          deemed to have been issued as of the date of such change; provided
          that no such change shall at any time cause the Conversion Price
          hereunder to be increased.

              iv. TREATMENT OF EXPIRED OPTIONS AND UNEXERCISED CONVERTIBLE
          SECURITIES. Upon the expiration of any Option or the termination of
          any right to convert or exchange any Convertible Security without the
          exercise of any such Option or right, the Conversion Price then in
          effect hereunder shall be adjusted immediately to the Conversion Price
          which would have been in effect at the time of such expiration or
          termination had such Option or Convertible Security, to the extent
          outstanding immediately prior to such expiration or termination, never
          been issued. For purposes of SECTION 7C, the expiration or termination
          of any Option or Convertible Security that was outstanding as of the
          date of issuance of the Series A Preferred or Series B Preferred, as
          applicable, shall not cause the Conversion Price for such Series A
          Preferred or Series B Preferred, as applicable, to be adjusted
          hereunder unless, and only to the extent that, a change in the terms
          of such Option or Convertible Security caused it to be deemed to have
          been issued after the date of issuance of the Series A Preferred or
          Series B Preferred, as applicable.

                                       14

<PAGE>

              v. CALCULATION OF CONSIDERATION RECEIVED. If any Common Stock,
          Option or Convertible Security is issued or sold or deemed to have
          been issued or sold for cash, the consideration received therefor
          shall be deemed to be the amount received by the Corporation therefor.
          If any Common Stock, Option or Convertible Security is issued or sold
          for a consideration other than cash, the amount of the consideration
          other than cash received by the Corporation shall be the fair value of
          such consideration, except where such consideration consists of
          securities, in which case the amount of consideration received by the
          Corporation shall be the Market Price thereof as of the date of
          receipt. If any Common Stock, Option or Convertible Security is issued
          to the owners of the non-surviving entity in connection with any
          merger in which the Corporation is the surviving Corporation, the
          amount of consideration therefor shall be deemed to be the fair value
          of such portion of the net assets and business of the non-surviving
          entity as is attributable to such Common Stock, Option or Convertible
          Security, as the case may be. The fair value of any consideration
          other than cash and securities shall be determined by the Board of
          Directors in the exercise of its reasonable discretion.

              vi. INTEGRATED TRANSACTIONS. In case any Option is issued in
          connection with the issue or sale of other securities of the
          Corporation, together comprising one integrated transaction in which
          no specific consideration is allocated to such Option by the parties
          thereto, the Option shall be deemed to have been issued for a
          consideration of $.01.

              vii. TREASURY SHARES. The number of shares of Common Stock
          outstanding at any given time shall not include shares owned or held
          by or for the account of the Corporation or any Subsidiary, and the
          disposition of any shares so owned or held shall be considered an
          issue or sale of Common Stock.

              viii. RECORD DATE. If the Corporation takes a record of the
          holders of Common Stock for the purpose of entitling them (a) to
          receive a dividend or other distribution payable in Common Stock,
          Options or in Convertible Securities or (b) to subscribe for or
          purchase Common Stock, Options or Convertible Securities, then such
          record date shall be deemed to be the date of the issue or sale of the
          shares of Common Stock deemed to have been issued or sold upon the
          declaration of such dividend or upon the making of such other
          distribution or the date of the granting of such right of subscription
          or purchase, as the case may be.

              ix. CERTAIN ISSUANCES . Notwithstanding the foregoing, there shall
          be no adjustment to the Conversion Price hereunder with respect to (a)
          the issuance of any option, warrant, Common Stock or Equity Equivalent
          to any employee, officer, director, consultant or advisor, in
          connection with a stock incentive plan, stock option plan, stock
          purchase plan, restricted stock plan, stock bonus arrangement or other
          similar stock plan or agreement approved by the Company's Board of
          Directors to the extent that the Common Stock issued or issuable with
          respect to all such plans, agreements and

                                       15

<PAGE>

          arrangements does not exceed 20% of the Common Stock Deemed
          Outstanding, (b) issuance of Common Stock upon the conversion of any
          Shares or upon the conversion of any other presently outstanding
          convertible debt or other convertible securities of the Corporation,
          (c) issuance of capital stock upon the exercise of any presently
          outstanding warrants, (d) issuance of up to 196,774 shares of Common
          Stock issuable to Cambridge Technology Partners, (e) issuance of up to
          38,382 shares of Common Stock to be issued to Benjamin Weissberg and
          Jonathan Leitersdorf pursuant to the Agreement dated June 30, 1997
          between the Corporation and them, (f) issuance of up to 15,000 shares
          of Common Stock usable to Gustin Partners pursuant to an oral
          agreement between Gustin Partners and the Corporation, (g) up to
          15,000 shares of Common Stock issuable to strategic partners of the
          Company, (h) issuance by way of a dividend or other distribution on
          shares of Preferred Stock in accordance with the Certificate of
          Incorporation, as amended, or (i) securities offered to the public
          pursuant to a registration statement filed pursuant to the Securities
          Act.

          7D. SUBDIVISION OR COMBINATION OF COMMON STOCK . If the Corporation at
any time subdivides (by any stock split, stock dividend, recapitalization or
otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the Conversion Price in effect immediately prior to
such subdivision shall be proportionately reduced, and if the Corporation at any
time combines (by reverse stock split or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the
Conversion Price in effect immediately prior to such combination shall be
proportionately increased.

          7E. REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE.
Any recapitalization, reorganization, reclassification, consolidation, merger,
sale of all or substantially all of the Corporation's assets or other
transaction, in each case which is effected in such a manner that the holders of
Common Stock are entitled to receive (either directly or upon subsequent
liquidation) stock, securities or assets with respect to or in exchange for
Common Stock, is referred to herein as an "ORGANIC CHANGE". Prior to the
consummation of any Organic Change, the Corporation shall make appropriate
provisions to insure that each of the holders of Shares shall thereafter have
the right to acquire and receive, in lieu of or in addition to (as the case may
be) the shares of Conversion Stock immediately theretofore acquirable and
receivable upon the conversion of such holder's Series A Preferred and Series B
Preferred, such shares of stock, securities or assets as such holder would have
received in connection with such Organic Change if such holder had converted its
Shares immediately prior to such Organic Change. The Corporation shall not
effect any such consolidation, merger or sale, unless prior to the consummation
thereof, the successor entity (if other than the Corporation) resulting from
consolidation or merger or the entity purchasing such assets assumes by written
instrument, the obligation to deliver to each such holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions.

                                       16

<PAGE>

          7F. CERTAIN EVENTS. If any event occurs of the type contemplated by
the provisions of this SECTION 7 but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation
rights, phantom stock rights or other rights with equity features), then the
Corporation's Board of Directors shall make an appropriate adjustment in the
Conversion Price so as to protect the rights of the holders of Series A
Preferred and Series B Preferred; provided that no such adjustment shall
increase the Conversion Price as otherwise determined pursuant to this SECTION 7
or decrease the number of shares of Conversion Stock issuable upon conversion of
each Share.

          7G. NOTICES.

              i. Immediately upon any adjustment of the Conversion Price of
          either the Series A Preferred or the Series B Preferred, the
          Corporation shall give written notice thereof to all holders of such
          Preferred Stock , setting forth in reasonable detail and certifying
          the calculation of such adjustment.

              ii. The Corporation shall give written notice to all holders of
          Series A Preferred and Series B Preferred at least 20 days prior to
          the date on which the Corporation closes its books or takes a record
          (a)with respect to any dividend or distribution upon Common Stock, (b)
          with respect to any pro rata subscription offer to holders of Common
          Stock or (c) for determining rights to vote with respect to any
          Organic Change, dissolution or liquidation.

              iii. The Corporation shall also give written notice to the holders
          of Series A Preferred and Series B Preferred at least 20 days prior to
          the date on which any Organic Change shall take place.

          7H. MANDATORY CONVERSION.

              i. The Corporation may at any time require the conversion in
          accordance with this Section 7 of all (but not less than all) of the
          outstanding Series A Preferred and/or Series B Preferred (as
          applicable) if the Corporation is at such time effecting a firm
          commitment underwritten Public Offering of shares of its Common Stock
          in which: (i) in the case of the Series A Preferred, (A) the aggregate
          price paid by the public for the shares shall be at least $20,000,000,
          and (B) the price per share paid by the public for such shares shall
          be at least two (2) times the Series A Conversion Price; or (ii) in
          the case of Series B Preferred, (A) the aggregate price paid by the
          public for the shares shall be at least $30,000,000, and (B) the price
          per share paid by the public for such shares shall be at least two and
          one-half (2 1/2) times the Series B Conversion Price (a "Qualified
          Public Offering."). Any such mandatory conversion shall only be
          effected at the time of and subject to the closing of the sale of such
          shares pursuant to such Public Offering and upon written notice of
          such mandatory conversion delivered to all holders of Series A
          Preferred and Series B Preferred, as applicable, at least seven days
          prior to

                                       17

<PAGE>

          such closing, which notice shall contain a conversion date and place
          designated for such conversion.

              ii. The holders of 75% of Series B Preferred Shares may at any
          time require the conversion in accordance with this Section 7 of all
          (but not less than all) of the outstanding Series B Preferred. Any
          such mandatory conversion shall be effected upon written notice of
          such mandatory conversion delivered by such holders to the Corporation
          (upon receipt of which the Corporation shall immediately provide
          written notice thereof to all other holders of Series B Preferred).

          Section 8.        EVENTS OF NONCOMPLIANCE.

          8A DEFINITION. An Event of Noncompliance shall have occurred if:

              i. the Corporation fails to pay on any date on which such payment
          is required pursuant to the terms hereof the full amount of dividends
          then accrued on the Preferred Stock, whether or not such payment is
          legally permissible or is prohibited by any agreement to which the
          Corporation is subject;

              ii. the Corporation fails to make any redemption payment with
          respect to the Preferred Stock which it is required to make hereunder,
          whether or not such payment is legally permissible or is prohibited by
          any agreement to which the Corporation is subject;

              iii. the Corporation breaches or otherwise fails to comply with
          its obligations under the Purchase Agreement and such breach or
          failure continues for thirty (30) days after written notice thereof to
          the Corporation or is incapable of being cured;

              iv. any representation or warranty contained in the Purchase
          Agreement or required to be furnished to any holder of Series B
          Preferred pursuant to the Purchase Agreement, is false or misleading
          in any material respect on the date made or furnished;

              v. the Corporation or any Subsidiary makes an assignment for the
          benefit of creditors or admits in writing its inability to pay its
          debts generally as they become due; or an order, judgment or decree is
          entered adjudicating the Corporation or any Subsidiary bankrupt or
          insolvent; or any order for relief with respect to the Corporation or
          any Subsidiary is entered under the Federal Bankruptcy Code; or the
          Corporation or any Subsidiary petitions or applies to any tribunal for
          the appointment of a custodian, trustee, receiver or liquidator of the
          Corporation or any Subsidiary or of any substantial part of the assets
          of the Corporation or any Subsidiary, or commences any proceeding
          (other than a proceeding for the voluntary liquidation and dissolution
          of a Subsidiary) relating to the Corporation or any Subsidiary under
          any bankruptcy,

                                       18

<PAGE>

          reorganization, arrangement, insolvency, readjustment of debt,
          dissolution or liquidation law of any jurisdiction; or any such
          petition or application is filed, or any such proceeding is commenced,
          against the Corporation or any Subsidiary and either (a) the
          Corporation or any such Subsidiary by any act indicates its approval
          thereof, consent thereto or acquiescence therein or (b) such petition,
          application or proceeding is not dismissed within 90 days;

              vi. a judgment in excess of $1,000,000 is rendered against the
          Corporation or any Subsidiary and, within 90 days after entry thereof,
          such judgment is not discharged or execution thereof stayed pending
          appeal, or within 90 days after the expiration of any such stay, such
          judgment is not discharged; or

              vii. the Corporation or any Subsidiary defaults in the performance
          of any obligation or agreement if the effect of such default is to
          cause an amount exceeding $1,000,000 to become due prior to its stated
          maturity or to permit the holder or holders of any obligation to cause
          an amount exceeding $1,000,000 to become due prior to its stated
          maturity.

          8B. CONSEQUENCES OF EVENTS OF NONCOMPLIANCE.

              i. If an Event of Noncompliance of the type described in Section
          8A(v) has occurred, or any Event of Noncompliance other than of the
          type described in Section 8A(v) has occurred and continues to exist
          for 30 days, then thereafter and during the continuation of such Event
          of Noncompliance, the dividend rate payable on the Series B Preferred
          Shares as set forth in Section 3B shall be increased to the annual
          rate determined by adding the prime rate charged by Citibank in New
          York (as published in the Wall Street Journal on the first business
          day after such default) plus 8%, with such dividends to accrue on a
          daily basis.

              ii. If any Event of Noncompliance exists, each holder of Preferred
          Stock shall also have any other rights which such holder is entitled
          to under any contract or agreement at any time and any other rights
          which such holder may have pursuant to applicable law, and the
          foregoing increased dividend rate shall not be construed to offset,
          reduce, limit or liquidate damages arising from such Event of
          Noncompliance.

          Section 9. REGISTRATION OF TRANSFER.

          The Corporation shall keep at its principal office a register for the
registration of Series A Preferred and Series B Preferred. Upon the surrender of
any certificate representing Preferred Stock at such place, the Corporation
shall, at the request of the record holder of such certificate, execute and
deliver (at the Corporation's expense) a new certificate or certificates in
exchange therefor representing in the aggregate the number of Shares represented
by the surrendered certificate. Each such new certificate shall be registered in
such name and shall represent such

                                       19

<PAGE>

number of Shares as is requested by the holder of the surrendered certificate
and shall be substantially identical in form to the surrendered certificate, and
dividends shall accrue on such Preferred Stock represented by such new
certificate from the date to which dividends have been fully paid on such
Preferred Stock represented by the surrendered certificate.

         Section 10.      REPLACEMENT.

         Upon receipt of evidence reasonably satisfactory to the Corporation (an
affidavit of the registered holder shall be satisfactory) of the ownership and
the loss, theft, destruction or mutilation of any certificate evidencing Shares
of Series A Preferred or Series B Preferred, and in the case of any such loss,
theft or destruction, upon receipt of indemnity reasonably satisfactory to the
Corporation (provided that if the holder is a financial institution or other
institutional investor its own agreement shall be satisfactory), or, in the case
of any such mutilation upon surrender of such certificate, the Corporation shall
(at its expense) execute and deliver in lieu of such certificate a new
certificate of like kind representing the number of Shares of such class
represented by such lost, stolen, destroyed or mutilated certificate and dated
the date of such lost, stolen, destroyed or mutilated certificate, and dividends
shall accrue on such Preferred Stock represented by such new certificate from
the date to which dividends have been fully paid on such lost, stolen, destroyed
or mutilated certificate.

         Section 11.       DEFINITIONS.

         "COMMON STOCK" means, collectively, the Corporation's Common Stock and
any capital stock of any class of the Corporation hereafter authorized which is
not limited to a fixed sum or percentage of par or stated value in respect to
the rights of the holders thereof to participate in dividends or in the
distribution of assets upon any liquidation, dissolution or winding up of the
Corporation.

         "COMMON STOCK DEEMED OUTSTANDING" means, at any given time, the number
of shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to SECTIONS 7C(i) and
7C(ii) hereof whether or not the Options or Convertible Securities are actually
exercisable at such time, but excluding any shares of Common Stock issuable upon
conversion of the Series A Preferred and Series B Preferred.

         "CORPORATION" means Corechange, Inc., a Delaware Corporation.

         "CONVERSION STOCK" means shares of Common Stock; provided that if there
is a change such that the securities issuable upon conversion of the Preferred
Stock are issued by an entity other than the Corporation or there is a change in
the type or class of securities so issuable, then the term "Conversion Stock"
shall mean one share of the security issuable upon conversion of the Preferred
Stock if such security is issuable in shares, or shall mean the smallest unit in
which such security is issuable if such security is not issuable in shares.

                                       20

<PAGE>

         "CONVERTIBLE SECURITIES" means any stock or securities directly or
indirectly convertible into or exchangeable for Common Stock.

         "CONVERSION PRICE" means with the conversion price applicable to any
particular Share determined in accordance with SECTION 7.

         "JUNIOR SECURITIES" means (i) relative to the Series A Preferred,
Series I Preferred, Series II Preferred, or Series III Preferred, the Common
Stock and any other equity securities of the Corporation ranking or liquidation
junior to the Series A, I, II and III Preferred, (ii) relative to the Series B
Preferred, the Common Stock, Series A Preferred, Series I Preferred, Series II
Preferred, Series III Preferred and any other equity securities of the
Corporation ranking upon liquidation junior for the Series B Preferred.

         "LIQUIDATION VALUE" shall be equal to, as of any particular date (i)
with respect to any Series B Share $5.837, as proportionately adjusted to
reflect any stock split, stock dividend, recapitalization or similar event
affecting the Series B, and (ii) with respect to any Share of Series A Preferred
as of January 21, 1998, $4.160024, as proportionately adjusted for dates
thereafter to reflect any stock split, stock dividend, recapitalization or
similar event affecting the Series A Preferred.

         "MARKET PRICE" of any security means the average of the closing prices
of such security's sales on all securities exchanges on which such security may
at the time be listed, or, if there has been no sales on any such exchange on
any day, the average of the highest bid and lowest asked prices on all such
exchanges at the end of such day, or, if on any day such security is not so
listed, the average of the representative bid and asked prices quoted in the
NASDAQ System as of 4:00 p.m., New York time, or, if on any day such security is
not quoted in the NASDAQ System, the average of the highest bid and lowest asked
prices on such day in the domestic over-the-counter market as reported by the
National Quotation Bureau, Incorporated, or any similar successor organization,
in each such case averaged over a period of 21 days consisting of the day as of
which "Market Price" is being determined and the 20 consecutive business days
prior to such day. If at any time such security is not listed on any securities
exchange or quoted in the NASDAQ System or the over-the-counter market, the
"Market Price" shall be the fair value thereof determined by the Board of
Directors in the exercise of their reasonable discretion.

         "OPTIONS" means any rights, warrants or options to subscribe for or
purchase Common Stock or Convertible Securities.

         "PERSON" means an individual, a partnership, a Corporation, a limited
liability company, a limited liability, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization and a governmental entity
or any department, agency or political subdivision thereof.

         "PUBLIC OFFERING" means any offering by the Corporation of its capital
stock or equity securities to the public pursuant to an effective registration
statement under the Securities Act of

                                       21

<PAGE>

1933, as then in effect, or any comparable statement under any similar federal
statute then in force.

         "PURCHASE AGREEMENT" means the Purchase Agreement, dated as of February
18, 2000 by and among the Corporation and certain investors, as such agreement
may from time to time be amended in accordance with its terms.

         "REGISTRATION AGREEMENT" means the Registration Agreement as defined in
the Purchase Agreement.

         "REDEMPTION DATE" as to any Share means the date specified in the
notice of any redemption at the holder's option or the applicable date specified
herein in the case of any other redemption; provided that no such date shall be
a Redemption Date unless the Liquidation Value of such Share (plus all accrued
and unpaid dividends thereon and any required premium with respect thereto) is
actually paid in full on such date, and if not so paid in full, the Redemption
Date shall be the date on which such amount is fully paid.

         "SHARE" means a share of either Series A Preferred or a share of Series
B Preferred, as applicable.

         "SUBSIDIARY" means, with respect to any Person, any Corporation,
limited liability company, partnership, association or other business entity of
which (i) if a Corporation, a majority of the total voting power of shares of
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership, membership or other similar ownership interest thereof is at
the time owned or controlled, directly or indirectly, by any Person or one or
more Subsidiaries of that person or a combination thereof. For purposes hereof,
a Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if
such Person or Persons shall be allocated a majority of limited liability
company, partnership, association or other business entity gains or losses or
shall be or control a managing member, general partner or similar controlling
party of such limited liability company, partnership, association or other
business entity.

                                       22

<PAGE>

                  11A.     OTHER DEFINITIONS.

Change in Ownership.................................6
Conversion Price...................................13
Corporation.........................................1
Demand Redemption...................................8
Expiration Date.....................................6
Fundamental Change..................................7
Organic Change.....................................17
Preferred Stock.....................................1
Qualified Public Offering..........................18
Redemption Price....................................9
Series A Demand Redemption Notice...................8
Series B Demand Redemption Notice...................8
Series A Preferred..................................1
Series B Preferred..................................1
Series I Preferred..................................1
Series II Preferred.................................1
Series III Preferred................................1
Series B Share......................................3

                                       23

<PAGE>

         Section 12.      AMENDMENT AND WAIVER.

         Any provision of this Amendment to the Certificate of Incorporation may
be waived in writing by the holders of a majority of the shares of each
adversely affected class of capital stock. No amendment, modification or waiver
of any of the Articles of Incorporation shall be binding or effective with
respect to any provision of Section 1 through and including Section 13 hereof
without the prior written consent of the holders of a majority of the Series A
Preferred and holders of a majority of the Series B Preferred outstanding at the
time such action is taken, and no change in the terms hereof may be accomplished
by merger or consolidation of the Corporation with another Corporation or entity
unless the Corporation has obtained such prior written consent.

         Section 13.       NOTICES.

                  Except as otherwise expressly provided hereunder, all notices
referred to herein shall be in writing and shall be delivered by registered or
certified mail, return receipt requested and postage prepaid, or by reputable
overnight courier service, charges prepaid, and shall be deemed to have been
given when so mailed or sent (i) to the Corporation, at its principal executive
offices and (ii) to any stockholder, at such holder's address as it appears in
the stock records of the Corporation (unless otherwise indicated by any such
holder).

                                       24

<PAGE>

                                                                     EXHIBIT B
                             REGISTRATION AGREEMENT

                  THIS REGISTRATION AGREEMENT (this "AGREEMENT") is made as of
February 18, 2000, by and among Corechange, Inc., a Delaware corporation (the
"COMPANY"), each of the Persons listed on the SCHEDULE OF INVESTORS attached
hereto (collectively referred to herein as the "INVESTORS" and individually as
an "INVESTOR"), HarbourVest Venture Partners V - Direct Fund L.P.
("HARBOURVEST"), and each of the other holders of Registrable Securities who may
from time to time become a party hereto by executing a counterpart to this
Agreement.

                  WHEREAS, the Investors and the Company are party to a Series B
Convertible Preferred Stock Purchase Agreement of even date herewith (the
"PURCHASE AGREEMENT"), pursuant to which the Investors acquired shares of the
Company's Series B Preferred, par value $.01 per share;

                  WHEREAS, the Company and HarbourVest are parties to the
Convertible Preferred Stock Purchase Agreement dated January 21, 1998 (the
"HARBOURVEST AGREEMENT"), that contains in Sections 8.5 through 8.14 certain
provisions relating to registration of Company securities in the event of a
public offering therefor;

                  WHEREAS, in order to induce the Investors to enter into the
Purchase Agreement, the Company and HarbourVest have agreed to enter into this
Agreement, which shall supersede in all respects the provisions set forth in
Sections 8.5 through 8.14 of the HarbourVest Agreement, and shall provide in
lieu thereof the registration rights set forth in this Agreement; and

                  WHEREAS, the execution and delivery of this Agreement is a
condition to the Closing under the Purchase Agreement.

                  NOW, THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement
intending to be legally bound hereby agree as follows:

                  Unless otherwise provided in this Agreement, certain terms
used herein shall have the meanings set forth in SECTION 11 hereof.

                                       1

<PAGE>

                  SECTION 1.  REQUESTED REGISTRATION.

                  (a) REQUEST FOR REGISTRATION. At any time after the second
year after the First Closing (as defined in the Purchase Agreement), if the
Company shall receive from Initiating Holders a written request that the Company
effect any registration with respect to all or a part of the Registrable
Securities, the Company will:

                  (i)  promptly give written notice of the proposed registration
         to all other Holders; and

                  (ii) as soon as practicable, use its diligent best efforts to
         effect such registration (including, without limitation, the execution
         of an undertaking to file post-effective amendments, appropriate
         qualification under applicable blue sky or other state securities laws,
         appropriate compliance with applicable regulations issued under the
         Securities Act and listing on appropriate exchanges) as may be so
         requested and as would permit or facilitate the sale and distribution
         of all or such portion of such Registrable Securities as are specified
         in such request, together with all or such portion of the Registrable
         Securities of any Holder or Holders joining in such request as are
         specified in a written request given by any other Holder within 20 days
         after receipt of such written notice from the Company; PROVIDED that
         the Company shall not be obligated to effect, or to take any action to
         effect, any such registration or any related actions pursuant to this
         SECTION 1(a): (A) in any jurisdiction in which the Company would be
         required to execute a general consent to service of process in
         effecting such registration, qualification or compliance, or in which
         the cost of the foregoing is unreasonable in light of the number of
         Registrable Securities requested to be sold in such jurisdiction,
         unless the Company is already subject to service in such jurisdiction
         and except as may be required by the Securities Act or applicable rules
         or regulations thereunder; (B) if at the time of any request to
         register Registrable Securities pursuant to this SECTION 1(a), the
         Company is engaged or has fixed plans to engage within 30 days of the
         time of the request in a registered public offering as to which the
         Holders may include Registrable Securities pursuant to SECTION 2 or is
         engaged in any other activity which, in the good faith determination of
         the Company's Board of Directors, would be adversely affected by the
         requested registration to the material detriment of the Company, then
         the Company may at its option direct that such request be delayed for a
         period not in excess of six months from the effective date of such
         offering or the date of commencement of such other material activity,
         as the case may be, such right to delay a request to be exercised by
         the Company not more than once in any one-year period; (C) within six
         months after the effective date of any other registration of the
         Company's securities; (D) for a registration on Form S-1 or S-2, the
         aggregate value of the Registrable Securities being registered is less
         than $5,000,000; or (E) for a registration on Form S-3, the aggregate
         value of the Registrable Securities being registered is less than
         $250,000.

Subject to the foregoing clauses (A), the Company shall file a registration
statement covering the Registrable Securities so requested to be registered as
soon as practicable, after receipt of the request or requests of the Initiating
Holders.

                                      -2-

<PAGE>

                  The Holders of Series A Preferred shall be entitled, as
Initiating Holders, to no more than two requested registrations under this
SECTION 1(a). The Holders of Series B Preferred shall be entitled, as Initiating
Holders, to no more than two requested registrations under this SECTION 1(a). A
registration shall not count as one of the permitted requested registrations
hereunder until it has become effective.

                  The registration statement filed pursuant to the request of
the Initiating Holders may, subject to the provisions of SECTION 1(b) below,
include other securities of the Company which are held by officers or directors
of the Company or which are held by persons who, by virtue of agreements with
the Company, are entitled to include their securities in any such registration,
but except as provided in the last sentence of SECTION 1(b) below the Company
shall have no right to include any of its securities in any such registration.

                  (b) UNDERWRITING. If the Initiating Holders intend to
distribute the Registrable Securities covered by their request by means of an
underwritten offering, they shall so advise the Company as part of their request
made pursuant to Section 1(c) and the Company shall include such information in
the written notice referred to in Section 1(a) above. The right of any Holder to
registration pursuant to SECTION 1 shall be conditioned upon such Holder's
participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting (unless otherwise mutually agreed by
a majority in interest of the Initiating Holders, the underwriters and such
Holder with respect to such participation and inclusion) to the extent provided
herein. A Holder may elect to include in such underwriting all or a part of the
Registrable Securities he holds.

                  If officers or directors of the Company holding other
securities of the Company shall request inclusion in any registration pursuant
to SECTION 1, or if holders of securities of the Company who are entitled, by
contract with the Company, to have securities included in such a registration
(the "OTHER SHAREHOLDERS") request such inclusion, the Initiating Holders shall
to the extent permitted by applicable laws and regulations, on behalf of all
Holders, offer to include the securities of such officers, directors and Other
Shareholders in the underwriting and may condition such offer on their
acceptance of the further applicable provisions of this Agreement. The Company
shall (together with all Holders, officers, directors and Other Shareholders
proposing to distribute their securities through such underwriting) enter into
an underwriting agreement in customary form (including, without limitation,
customary indemnification and contribution provisions on the part of the
Company) with the representative of the underwriter or underwriters selected for
such underwriting by a majority in interest of the Initiating Holders and
reasonably acceptable to the Company; PROVIDED that such underwriting agreement
shall not provide for indemnification or contribution obligations on the part of
Holders greater than the obligations of the Holders pursuant to SECTION 5.
Notwithstanding any other provision of this Agreement, if the representative
advises the Initiating Holders in writing that marketing factors require a
limitation on the number of shares to be underwritten, the securities of the
Company held by officers or directors of the Company and the Other Shareholders
(other than Registrable Securities) shall be excluded from such registration to
the extent so required by such limitation and if a limitation of the number of
shares is still required, the Initiating Holders shall so advise all Holders of
Registrable Securities whose securities would otherwise be underwritten pursuant
hereto and the number of shares of securities that may be included in the
registration and

                                      -3-

<PAGE>

underwriting shall be allocated among all such Holders in proportion, as nearly
as practicable, to the respective amounts of Registrable Securities of the
Company which they held at the time of the request for registration made by the
Initiating Holders pursuant to SECTION 1(a). No Registrable Securities or any
other securities excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such registration. If any Holder of
Registrable Securities, officer, director or Other Shareholder who has requested
inclusion in such registration as provided above disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
the Company, the underwriter and the Initiating Holders. The securities so
withdrawn shall also be withdrawn from registration. If the underwriter has not
limited the number of Registrable Securities or other securities to be
underwritten, the Company may include its securities for its own account in such
registration if the underwriter so agrees and if the number of Registrable
Securities and other securities which would otherwise have been included in such
registration and underwriting will not thereby be limited.

                  SECTION 2.  COMPANY REGISTRATION.

                  (a) If the Company shall determine to register any of its
securities either for its own account or the account of a security holder or
holders exercising their respective demand registration rights, other than a
registration relating solely to employee benefit plans, or a registration
relating solely to a Commission Rule 145 transaction or a registration on any
registration form which does not permit secondary sales or does not include
substantially the same information as would be required to be included in a
registration statement covering the sale of Registrable Securities, the Company
will:

                  (i) promptly give to each Holder written notice thereof (which
         shall include a list of the jurisdictions in which the Company intends
         to attempt to qualify such securities under the applicable blue sky or
         other state securities laws); provided that the Company shall not be
         required to provide prior written notice of any registration to the
         extent the Holders would not be entitled to include Registrable
         Securities in the Registration Statement pursuant to SECTION 2(b); and

                  (ii) include in such registration (and any related
         qualification under blue sky laws or other compliance), and in any
         underwriting involved therein, all the Registrable Securities specified
         in a written request or requests, made by any Holder within fifteen
         days after written notice from the Company described in clause (i)
         above, except as set forth in SECTION 2(b) below. Such written request
         may specify all or a part of a Holder's Registrable Securities.

Notwithstanding the foregoing, the Company shall have the right to postpone or
withdraw any registration effected pursuant to this SECTION 2 without obligation
to any Holder.

                  (b) UNDERWRITING. If the registration of which the Company
gives notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to SECTION 2(a)(i). In such event the right of any Holder to
registration pursuant to SECTION 2 shall be conditioned upon such Holder's

                                      -4-

<PAGE>

participation in such underwriting and the inclusion of such Holder's
Registrable Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such underwriting shall
(together with the Company and, directors, officers and the Other Shareholders
distributing their securities through such underwriting) enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for underwriting by the Company, PROVIDED that the Company shall use
its reasonable best efforts to ensure that such underwriting agreement shall not
provide for indemnification or contribution obligations on the part of Holders
materially greater than the obligations of the Holders pursuant to SECTION 5.
Notwithstanding any other provision of this SECTION 2, if the underwriter
determines that marketing factors require a limitation on the number of shares
to be underwritten, the underwriter may (subject to the allocation priority set
forth below) exclude from such registration and underwriting some or all of the
Registrable Securities which would otherwise be underwritten pursuant hereto.
The Company shall so advise all holders of securities requesting registration,
and the number of shares of securities that are entitled to be included in the
registration and underwriting shall be allocated in the following manner. The
securities of the Company held by the Other Shareholders and the officers and
directors of the Company (other than Registrable Securities and up to 2,400,000
of the Company's shares held by Ulf Arnetz) shall be excluded from such
registration and underwriting to the extent required by such limitation, and, if
a limitation on the number of shares is still required, the number of shares
that may be included in the registration and underwriting shall be allocated
among all such Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities and other securities which they
held at the time the Company gives the notice specified in SECTION 2(a)(i),
PROVIDED that if such registration has been initiated at the request of
Cambridge Technology Partners ("CTP") pursuant to the exercise of demand
registration rights granted prior to the date of this Agreement, CTP may include
up to 202,106 shares of the Company's stock in priority to any Registrable
Securities. For purposes of the foregoing calculation, Ulf Arnetz shall be
deemed to hold the lesser of 2,400,000 shares of the Company's stock and the
actual number of shares of the Company's stock (other than shares acquired
pursuant to stock options) owned by Ulf Arnetz at such time. If any Holder of
Registrable Securities or any officer, director or Other Shareholder disapproves
of the terms of any such underwriting, he may elect to withdraw therefrom by
written notice to the Company and the underwriter. Any Registrable Securities or
other securities excluded or withdrawn from such underwriting shall be withdrawn
from such registration.

                  SECTION 3. EXPENSES OF REGISTRATION. All Registration Expenses
incurred in connection with any registration, qualification or compliance
pursuant to this Agreement shall be borne by the Company, and all Selling
Expenses shall be borne by the holders of the securities so registered pro rata
on the basis of the number of their shares so registered; PROVIDED, however,
that the Company shall not be required to pay any Registration Expenses if, as a
result of the withdrawal of a request for registration by Initiating Holders
(other than due to a material adverse change in the business of the Company
occurring after the date in which registration was requested or any refusal to
proceed based upon the advice of counsel that the registration statement, or any
prospectus contained therein, contains an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, provided that such withdrawal is made within 10 days after the
Initiating Holders become aware of the material adverse change

                                      -5-

<PAGE>

or such advice from counsel, as applicable), the registration statement does not
become effective, in which case the Holders and Other Shareholders requesting
registration shall bear such Registration Expenses pro rata on the basis of the
number of their shares so included in the registration request.

                  SECTION 4. REGISTRATION PROCEDURES. In the case of each
registration effected by the Company pursuant to this Agreement, the Company
will keep each Holder advised in writing as to the initiation of each
registration and as to the completion thereof. At its expense, the Company will:

                  (a) use its best efforts to keep such registration effective
         for a period of one hundred twenty days or until the Holder or Holders
         have completed the distribution described in the registration statement
         relating thereto, whichever first occurs; provided, however, that (I)
         such 120-day period shall be extended for a period of time equal to the
         period the Holder refrains from selling any securities included in such
         registration in accordance with provisions in SECTION 10 hereof;
         PROVIDED that Rule 415, or any successor rule under the Securities Act,
         permits an offering on a continuous or delayed basis, and PROVIDED,
         FURTHER, that applicable rules under the Securities Act governing the
         obligation to file a post-effective amendment permit, in lieu of filing
         a post-effective amendment which includes any prospectus required by
         Section 10(a)(3) of the Securities Act, the incorporation by reference
         of information contained in periodic reports filed pursuant to Section
         13 or 15(d) of the Exchange Act in the registration statement;

                  (b) furnish such number of prospectuses and other documents
         incident thereto as a Holder from time to time may reasonably request
         in order to facilitate the public sale or other disposition of the
         Registrable Securities by such Holder;

                  (c) in connection with any underwritten offering pursuant to a
         registration statement filed pursuant to SECTION 1 hereof, enter into
         an underwriting agreement reasonably necessary to effect the offer and
         sale of Common Stock, provided such underwriting agreement contains
         customary underwriting provisions and provided further that if the
         underwriter so requests the underwriting agreement will contain
         customary contribution provisions on the part of the Company.

                  SECTION 5.  INDEMNIFICATION.

                  (a) The Company will, and hereby does, indemnify each Holder,
each of its officers, directors and partners, and each person controlling such
Holder (within the meaning of the Securities Act), with respect to which
registration has been effected pursuant to this Agreement, and each underwriter,
if any, and each person who controls any underwriter (within the meaning of the
Securities Act), with respect to such sale, against all claims, losses, damages
and liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any registration statement or prospectus, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, or any violation by the Company of the
Securities

                                      -6-

<PAGE>

Act or any rule or regulation thereunder applicable to the Company and relating
to action or inaction required of the Company in connection with any such
registration, qualification or compliance, and will reimburse each such Holder
(within the meaning of the Securities Act), each of its officers, directors and
partners, and each person controlling such Holder, each such underwriter and
each person who controls any such underwriter (within the meaning of the
Securities Act), for any legal and any other expenses reasonably incurred in
connection with investigating and defending any such claim, loss, damage,
liability or action, PROVIDED that the Company will not be liable in any such
case to the extent that any such claim, loss, damage, liability or expense
arises out of or is based on any untrue statement (or alleged untrue statement)
or omission (or alleged omission) in reliance upon and in conformity with or
based upon written information furnished to the Company by such Holder or
underwriter or controlling person and stated to be specifically for use therein.

                  (b) Each Holder will and hereby does, if Registrable
Securities held by him are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify the
Company, each of its directors and officers and each underwriter, if any, of the
Company's securities covered by such a registration statement, each person who
controls the Company or such underwriter within the meaning of the Securities
Act and the rules and regulations thereunder, each other such Holder and Other
Shareholder and each of their officers, directors and partners, and each person
controlling such Holder or Other Shareholder, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement, or prospectus, or based on any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any violation by the Holder of the Securities Act or any rule or regulation
thereunder applicable to the Holder and relating to action or inaction required
of the Holder in connection with any such registration, qualification or
compliance, and will reimburse the Company and such Holders, Other Shareholders,
directors, officers, partners, persons, underwriters or control persons for any
legal or any other expenses reasonably incurred in connection with investigating
or defending any such claim, loss, damage, liability or action, in each case to
the extent, but only to the extent, that such untrue statement (or alleged
untrue statement) or omission (or alleged omission) is made in such registration
statement or prospectus in reliance upon and in conformity with written
information furnished to the Company by such Holder and stated to be
specifically for use therein; PROVIDED, however, that the obligations of such
Holders hereunder shall be limited to an amount equal to the proceeds to each
such Holder of Registrable Securities sold pursuant to such registration as
contemplated herein.

                  (c) Each party entitled to indemnification under this SECTION
5 (the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, but the
failure of any Indemnified Party to give notice shall not relieve the
Indemnifying Party of its obligation under this SECTION 5 except to the extent
that the Indemnifying Party is adversely affected by such failure. The
Indemnifying Party will be entitled to participate in, and to the extent that it
may elect by written notice delivered to the Indemnified Party promptly after
receiving the aforesaid notice from such Indemnified Party, at its expense to
assume, the defense of any such claim or any litigation resulting therefrom,
with

                                      -7-

<PAGE>

counsel reasonably satisfactory to such Indemnified Party, PROVIDED that the
Indemnified Party may participate in such defense at its expense,
notwithstanding the assumption of such defense by the Indemnifying Party, and
PROVIDED, FURTHER, that if the Indemnified Party shall have reasonably concluded
upon advice of counsel that representation of such Indemnified Party by the
counsel retained by the Indemnifying Party would be inappropriate due to actual
or potential differing interests between the Indemnified Party and any other
party represented by such counsel in such proceeding, the Indemnified Party or
Parties shall have the right to select separate counsel to assert such legal
defenses and to otherwise participate in the defense of such action on behalf of
such Indemnified Party or Parties and the fees and expenses of such counsel
shall be paid by the Indemnifying Party. No Indemnifying Party, in the defense
of any such claim or litigation, shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect to such claim or litigation. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom. No
Indemnified Party shall consent to entry of any judgment or settle any claim or
litigation without the prior written consent of the Indemnifying Party.

                  SECTION 6. INFORMATION BY HOLDER. Each Holder of Registrable
Securities shall furnish to the Company such information regarding such Holder
and the distribution proposed by such Holder as the Company may reasonably
request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance referred to in this Agreement.

                  SECTION 7. LIMITATIONS ON REGISTRATION OF ISSUES OF
SECURITIES. From and after the date of this Agreement, the Company shall not,
without the prior written consent of Holders holding at least a majority of the
Series A Registrable Securities and the holders of at least a majority of the
Series B Registrable Securities enter into any agreement (other than this
Agreement) with any holder or prospective holder of any securities of the
Company giving such holder or prospective holder the right to require the
Company to initiate any registration of any securities of the Company, PROVIDED
that this SECTION 7 shall not limit the right of the Company to enter into any
agreements with any holder or prospective holder of any securities of the
Company giving such holder or prospective holder the right to require the
Company, upon any registration of any of its securities, to include, among the
securities which the Company is then registering, securities owned by such
holder if such right is subject to the limitations and cutbacks set forth in
this Agreement with respect to Other Shareholders. Any right given by the
Company to any holder or prospective holder of the Company's securities in
connection with the registration of securities shall be conditioned such that it
shall not be inconsistent with or more favorable than the rights of the Holders
provided in this Agreement, including the exclusion of such holder's or
prospective holder's securities from registration under the circumstances
specified in SECTIONS 1 and 2.

                  SECTION 8. RULE 144 REPORTING. With a view to making available
the benefits of certain rules and regulations of the Commission which may permit
the sale of the Restricted Securities to the public without registration, the
Company agrees to:

                                      -8-

<PAGE>

                  (a) make and keep public information available as those terms
         are understood and defined in Rule 144 under the Securities Act, at all
         times from and after ninety days following the effective date of the
         first registration under the Securities Act filed by the Company for an
         offering of its securities to the general public;

                  (b) use its best efforts to file with the Commission in a
         timely manner all reports and other documents required of the Company
         under the Securities Act and the Exchange Act at any time after it has
         become subject to such reporting requirements; and

                  (c) so long as a Holder owns any Restricted Securities,
         furnish to such Holder forthwith upon request a written statement by
         the Company as to its compliance with the reporting requirements of
         Rule 144 (at any time from and after ninety days following the
         effective date of the first registration statement filed by the Company
         for an offering of its securities to the general public), and of the
         Securities Act and the Exchange Act (at any time after it has become
         subject to such reporting requirements), a copy of the most recent
         annual or quarterly report of the Company, and such other reports and
         documents so filed as such Holder may reasonably request in availing
         itself of any rule or regulation of the Commission allowing such Holder
         to sell any such securities.

                  SECTION 9. TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS. The
rights to cause the Company to register securities under this Agreement may be
transferred or assigned by each holder in connection with the transfer or
assignment of any of such Holder's Registrable Securities to another Holder, to
any affiliate of the assigning Holder or to any person or entity acquiring at
least 480,000 Registrable Securities (such number being subject to adjustment
for any stock dividend, stock split, subdivision, combination or other
recapitalization of the Common Stock of the Company) or such lesser number as
the Board of Directors may agree in writing, PROVIDED that the Company is given
written notice by you at the time of or within a reasonable time after such
transfer or assignment, stating the name and address of such transferee or
assignee and identifying the securities with respect to which such registration
rights are being transferred or assigned, and PROVIDED, FURTHER, that the
transferee or assignee of such rights is not deemed by the board of directors of
the Company, in its reasonable judgment, to be a competitor of the Company; and
PROVIDED, FURTHER, that the transferee or assignee of such rights agrees in
writing to be bound by the obligations of such Holder under this Agreement.

                  SECTION 10. "MARKET STAND-OFF" AGREEMENT. Each Holder agrees,
if requested by the Company and an underwriter of Common Stock (or other equity
securities) of the Company, not to sell or otherwise transfer or dispose of any
Common Stock (or other equity securities) of the Company held by such Holder
during the one hundred and eighty-day period following the effective date of a
registration statement of the Company filed under the Securities Act, provided
that:

                  (a) such agreement only applies to the first such registration
         statement of the Company including securities to be sold on its behalf
         to the public in an underwritten offering; and

                                      -9-

<PAGE>

                  (b) all Holders, officers and directors and other shareholders
         of the Company holding in excess of 2% of the outstanding Common Stock
         (on an as converted basis) of the Company enter into similar
         agreements.

                  Such agreement shall be in writing in a form reasonably
satisfactory to the Company and such underwriter. Notwithstanding the foregoing,
the Company may impose stop-transfer instructions with respect to the shares (or
securities) subject to the foregoing restriction until the end of such one
hundred and eighty-day period.

                  SECTION 11. DEFINITIONS. For purposes of this Agreement, the
following terms have the meanings set forth below.

                  "COMMISSION" shall mean the Securities and Exchange Commission
or any other federal agency at the time administering the Securities Act.

                  "COMMON STOCK" means the Common Stock of the Company as
described in the Company's Certificate of Incorporation, as amended.

                  "HOLDER" shall mean any holder of Registrable Securities.

                  "INITIATING HOLDERS" shall mean Holders who own in the
aggregate more than 50% of either the Series A Registrable Securities or the
Series B Registrable Securities.

                   "IPO" means the initial sale of Common Stock to the public
pursuant to an underwritten offering registered under the Securities Act.

                  "PREFERRED STOCK" means the Company's Series A Preferred
Stock, par value $.01 per share, and the Company's Series B Preferred Stock, par
value $.01 per share. For purposes of this Agreement, Preferred Stock shall not
include any other series of the Company's preferred stock.

                  The terms "REGISTER", "REGISTERED" and "REGISTRATION" shall
refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act and applicable rules and
regulations thereunder, and the declaration or ordering of the effectiveness of
such registration statement; provided that such terms shall not be deemed to
include the registration of shares pursuant to a registration statement on Form
S-8 or Form S-4, or their successors, or any other form for a similar limited
purpose, or any registration statement covering only securities proposed to be
issued in exchange for securities or assets of another corporation.

                  "REGISTRABLE SECURITIES" means the Series A Registrable
Securities and the Series B Registrable Securities.

                  "SERIES A REGISTRABLE SECURITIES" means (i) Common Stock
issued or issuable upon the conversion of the Series A Preferred, and (ii) any
Common Stock issued in respect of securities issued pursuant to the conversion
of the Series A Preferred upon any stock split, stock

                                      -10-

<PAGE>

dividend, recapitalization or similar event; PROVIDED, HOWEVER, that shares of
Common Stock which are Series A Registrable Securities shall cease to be Series
A Registrable Securities (a) upon any sale pursuant to a registration statement
or Rule 144 under the Securities Act, (b) with respect to a Holder of Series A
Registrable Securities, if all of the Series A Registrable Securities held by
such Holder may be sold pursuant to Rule 144(k) under the Securities Act and
such Holder holds less than 5% of the Company's then outstanding capital stock,
and (c) upon any sale in any manner to a person or entity which, by virtue of
SECTION 10 of this Agreement, is not entitled to the rights provided by this
Agreement. Series A Registrable Securities shall include shares of Common Stock
issuable upon conversion of the Series A Registrable Securities even if such
conversion has not yet been effected.

                  "SERIES B REGISTRABLE SECURITIES" means (i) Common Stock
issued or issuable upon the conversion of the Series B Preferred, and (ii) any
Common Stock issued in respect of securities issued pursuant to the conversion
of the Series B Preferred upon any stock split, stock dividend, recapitalization
or similar event; PROVIDED, HOWEVER, that shares of Common Stock which are
Series B Registrable Securities shall cease to be Series B Registrable
Securities (a) upon any sale pursuant to a registration statement or Rule 144
under the Securities Act, (b) with respect to a Holder of Series B Registrable
Securities, if all of the Series B Registrable Securities held by such Holder
may be sold pursuant to Rule 144(k) under the Securities Act and such Holder
holds less than 5% of the Company's then outstanding capital stock, and (c) upon
any sale in any manner to a person or entity which, by virtue of SECTION 10 of
this Agreement, is not entitled to the rights provided by this Agreement. Series
B Registrable Securities shall include shares of Common Stock issuable upon
conversion of the Series B Registrable Securities even if such conversion has
not yet been effected.

                  "REGISTRATION EXPENSES" shall mean all expenses incurred by
the Company in compliance with SECTIONS 1 and 2 hereof, including, without
limitation, all registration and filing fees, printing expenses, fees and
disbursements of counsel for the Company, blue sky fees and expenses, reasonable
fees and disbursements of one counsel for all the selling Holders and other
security holders, and the expense of any special audits incident to or required
by any such registration (but excluding the compensation of regular employees of
the Company, which shall be paid in any event by the Company, and Selling
Expenses).

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
or any similar federal law then in force.

                  "SELLING EXPENSES" shall mean all underwriting discounts,
selling commissions and transfer taxes applicable to the sale of Registrable
Securities and the fees and expenses of a selling Holder's own counsel (other
than the counsel selected to represent all selling Holders).

                  SECTION 12. TERM. This Agreement shall terminate and be of no
further force or effect upon the earlier of (i) three years after a Qualified
Public Offering (as defined in the Purchase Agreement), and (ii) when all
subject Registrable Securities can be sold under Rule 144 of the Securities Act.

                                      -11-

<PAGE>

                  SECTION 13. MISCELLANEOUS.

                  (a) NO INCONSISTENT AGREEMENTS. This Agreement amends,
         restates and supercedes the Sections 8.4 through 8.15 of the
         HarbourVest Agreement in its entirety, and the Company's obligations
         under such Sections of the HarbourVest Agreement are hereby
         terminated. The Company has not entered into and shall not hereafter
         enter into any agreement with respect to its securities which is
         inconsistent with or violates the rights granted to the holders of
         Registrable Securities in this Agreement.

         7B. ADJUSTMENTS AFFECTING REGISTRABLE SECURITIES. The Company shall not
knowingly take any action, or permit any change to occur, with respect to its
securities which would materially and adversely affect the ability of the
holders of Registrable Securities to include such Registrable Securities in a
registration undertaken pursuant to this Agreement or which would adversely
affect the marketability of such Registrable Securities in any such registration
(including, without limitation, effecting a stock split or a combination of
shares).

         7C. REMEDIES. Any Person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that, in addition to any other rights and
remedies existing in its favor, any party shall be entitled to specific
performance and/or other injunctive relief from any court of law or equity of
competent jurisdiction (without posting any bond or other security) in order to
enforce or prevent violation of the provisions of this Agreement.

         7D. AMENDMENTS AND WAIVERS. Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior
written consent of the Company and holders of a majority of the Registrable
Securities.

         7E. SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto
whether so expressed or not. In addition, whether or not any express assignment
has been made, the provisions of this Agreement which are for the benefit of
purchasers or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities.

         7F. SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of this Agreement.

         7G. COUNTERPARTS. This Agreement may be executed simultaneously in two
or more counterparts in the form attached hereto, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together shall constitute one and the same Agreement.

                                      -12-

<PAGE>

         7H. DESCRIPTIVE HEADINGS. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

         7I. GOVERNING LAW. All issues and questions concerning the
construction, validity, interpretation and enforcement of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Delaware, without giving effect to any choice of
law or conflict of law rules or provisions (whether of the State of Delaware or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

         7J. NOTICES. All notices, demands or other communications to be given
or delivered under or by reason of the provisions of this Agreement shall be in
writing and shall be deemed to have been given when delivered personally to the
recipient, sent to the recipient by reputable overnight courier service (charges
prepaid) or mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid. Such notices, demands and other
communications shall be sent to each Investor at the address indicated on the
Schedule of Investors and to the Company and counsel for the Company and
Investors at the address indicated below:

                  Ulf Arnetz
                  President and CEO
                  Corechange, Inc.
                    260 Franklin Street, Suite 1890
                  Boston, Massachusetts  02100

                  with a copy to (which shall not constitute notice hereunder):

                  Hale and Dorr LLP
                  60 State Street
                  Boston, Massachusetts 02109
                  Attention:       Stuart M. Falber
                  Telecopy No:  (617) 526-5000

                  Kirkland & Ellis
                  200 East Randolph Drive
                  Chicago, Illinois 60601
                  Attention:       Gary R. Silverman
                  Telecopy No:     (312) 861-2200

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

                                      -13-

<PAGE>

                            *     *     *     *    *

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

THE COMPANY:                         CORECHANGE, INC.

                                     By:  _______________________________
                                     Its: ________________________________

                                      -14-

<PAGE>

                                                                       EXHIBIT C

                   AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

                  THIS AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this
"AGREEMENT") is made as of February 18, 2000, by and among Corechange, Inc., a
Delaware corporation (the "COMPANY"), Ulf Arnetz, an individual ("Arnetz"),
HarbourVest Venture Partners V - Direct Fund L.P. ("HVP"), each of the investors
listed in the "First Closing Investors" section of the SCHEDULE OF STOCKHOLDERS
attached hereto and each other purchaser of the Company's Series B Convertible
Preferred Stock pursuant to the Purchase Agreement (as defined below) who shall
become a party hereto by the execution of a counterpart signature page (the
"OTHER INVESTORS" and together with the First Closing Investors, the "INVESTORS"
and together with Arnetz and HVP, the "STOCKHOLDERS"). Capitalized terms used
herein and not otherwise defined are defined in SECTION 5 hereof.

                  WHEREAS, the Company, HVP and Arnetz and are parties to the
Stockholders Agreement dated January 21, 1998 (the "PRIOR AGREEMENT");

                  WHEREAS, the Company, HVP and Arnetz desire to amend the Prior
Agreement to add the Investors as parties, and for the purposes, among others,
of (i) inducing the Company and the Investors to execute and deliver that
certain Series B Convertible Preferred Stock Purchase Agreement, dated as of the
date hereof (the "PURCHASE AGREEMENT"), by and among the Company and the
Investors, (ii) assuring continuity in the management and ownership of the
Company and (iii) limiting the manner and terms by which certain Stockholder
Shares may be transferred. The execution and delivery of this Agreement is a
condition to the Investors' purchase of the Company's stock pursuant to the
Purchase Agreement; and

                  WHEREAS, the Company and the Stockholders intend that this
Agreement will amend, restate and supercede the Prior Agreement.

                  NOW, THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement
intending to be legally bound hereby agree as follows:

                  SECTION 1.        BOARD OF DIRECTORS.

                  (a) From and after the Closing (as defined in the Purchase
Agreement) and until the provisions of this Section 1 cease to be effective,
each Stockholder shall vote all of his Stockholder Shares which are voting
shares and any other voting securities of the Company over which such
Stockholder has voting control and shall take all other necessary or desirable
actions within his control (whether in his capacity as a stockholder, director,
member of a board committee or officer of the Company or otherwise, and
including, without limitation, attendance at meetings in person or by proxy for
purposes of obtaining a quorum and execution of written consents in lieu of
meetings), and the Company shall take all necessary or desirable actions within
its control (including, without limitation, calling special board and
stockholder meetings), so that:

                                       1

<PAGE>

                           (i) the authorized number of directors on the
Company's board of directors (the "Board") shall be established and maintained
at eight directors;

                           (ii) there shall be elected to the Board: (A) one
person nominated by the holders of a majority of the outstanding shares of
Series A Preferred (the "SERIES A DIRECTOR"); (B) one person nominated by ABN
AMRO Capital (USA), Inc., for so long as ABN AMRO and its affiliates
collectively hold at least 25% of the shares of Series B Preferred issued to
them pursuant to the Purchase Agreement, and thereafter nominated by the holders
of a majority of the outstanding shares of Series B Preferred (the "ABN
DIRECTOR"); (C) one person nominated by Xcelera.com, Inc. for so long as Xcelera
and its affiliates collectively hold at least 25% of the shares of Series B
Preferred issued to Xcelera pursuant to the Purchase Agreement, and thereafter
nominated by the holders of a majority of the outstanding shares of Series B
Preferred (the "XCELERA DIRECTOR"); (D) one person who shall be an independent,
outside representative (the "OUTSIDE DIRECTOR") with industry experience to be
nominated and approved of by each other member of the Board, the holders of a
majority of the outstanding shares of Series A Preferred, the holders of a
majority of the outstanding shares of Series B Preferred, and Ulf Arnetz so long
as he remains a Holder; (E) Ulf Arnetz so long as he remains a Holder; and (F)
three persons nominated by the holders of a majority of the then outstanding
shares of Common Stock (including the Stockholder Shares) (the "COMMON
DIRECTORS");

                           (iii) the Board shall meet at least once during each
fiscal quarter;

                           (iv) the Stockholders shall not vote to remove the
ABN Director, the Xcelera Director, the Series A Director, the Outside Director,
or Ulf Arnetz, except for bad faith or willful misconduct, or upon the written
request of the Stockholders with the right to nominate such director;

                           (v) the event that any ABN Director, Xcelera
Director, Series A Director, Common Director, or Outside Director ceases to
serve as a member of the Board during his or her term of office, the resulting
vacancy on the Board shall be filled by a representative who shall be a new ABN
Director, Xcelera Director, Series A Director, Common Director, or Outside
Director, as applicable, nominated and elected in the same manner as such former
ABN Director, Xcelera Director, Series A Director, Common Director, or Outside
Director;

                           (vi) the Board shall establish an audit committee,
and a compensation committee, which shall include the ABN Director, Xcelera
Director and the Series A Director, provided that such directors may each
decline in writing the opportunity to sit on either or both of such committees,
in which case the Board shall appoint an alternate committee member;

                           (vii) the ABN Director shall be appointed to each
other committee established by the Board, and to the board of directors of each
Subsidiary and all committees thereof, unless ABN Director declines in writing
to accept any such appointment (which decision of ABN AMRO not to have the ABN
Director serve on a particular board or committee shall not be deemed a waiver
of the right to serve on all other boards and committees);

                                      -2-

<PAGE>

                           (viii)  two observers (the "OBSERVERS") shall be
entitled to attend all Board meetings and discussions, and shall be entitled to
receive any notices, communications, documents or other information provided to
the members of the Board, and to participate in all such matters (but not vote),
such Observers (including their successors) to be nominated by ABN AMRO, for so
long as ABN AMRO or its affiliates holds any shares of Series B Preferred;
provided, however, that (A) the Company reserves the right to exclude such
Observers from access to any material or meeting or portion thereof if the
Company believes upon the advice of counsel that such exclusion is reasonably
necessary to preserve attorney-client privilege, to protect highly confidential
proprietary information or for other similar reasons where such privilege or
confidentiality cannot reasonably be preserved through a written agreement
signed by such Observers, and (B) the Observers agree to hold in confidence and
trust and not use or disclose any confidential information provided to or
learned by them in connection with their rights under this clause (viii); and

                  (b) The Company (or its Subsidiary as applicable) shall pay
the reasonable out-of-pocket expenses incurred by each director and the
Observers in connection with attending the meetings of the Board, any board of
directors of any Subsidiary, and any committees thereof. So long as any ABN
Director or Xcelera Director serves on the Board and for three years thereafter,
the Company shall maintain directors and officers indemnity insurance coverage
satisfactory to the holders of a majority of the Stockholder Shares (which shall
initially be in the amount of at least $2 million).

                  SECTION 2. REPRESENTATIONS AND WARRANTIES. Each Stockholder
represents and warrants that (i) such Stockholder is the record owner of the
number of Stockholder Shares set forth opposite its name on the Schedule of
Stockholders attached hereto, (ii) this Agreement has been duly authorized,
executed and delivered by such Stockholder and constitutes the valid and binding
obligation of such Stockholder, enforceable in accordance with its terms, and
(iii) such Stockholder has not granted and is not a party to any proxy, voting
trust or other agreement which is inconsistent with, conflicts with or violates
any provision of this Agreement. No holder of Stockholder Shares shall grant any
proxy or become party to any voting trust or other agreement which is
inconsistent with, conflicts with or violates any provision of this Agreement.

                  SECTION 3. RESTRICTIONS ON TRANSFER OF STOCKHOLDER SHARES.

                  (a) TRANSFER OF STOCKHOLDER SHARES. No Founding Holder shall
Transfer any interest in such Founding Holder's Stockholder Shares (whether in a
single transaction or series of transactions) except pursuant to the provisions
of SECTION 3(b), SECTION 3(c), or SECTION 3(d). Other than in connection with
the transfer of a majority of all Stockholder Shares, no Founding Holder shall
transfer any interest in such Founding Holder's Stockholder Shares to any person
who was, or is, an affiliate of any person that is a competitor of the Company
without the prior written consent of the Stockholders holding a majority of the
Stockholder Shares.

                  (b)      RIGHT OF FIRST OFFER.

                           (i) At least 30 days prior to making any Transfer of
         five percent (5%) or more of any Founding Holder's Stockholder Shares
         (other than a Transfer to the Company), the transferring Founding
         Holder (the "TRANSFERRING OWNER") shall deliver a

                                      -3-

<PAGE>

         written notice (a "FIRST OFFER NOTICE") to the Company and to all
         Investors. No Founding Holder shall consummate any Transfer of any
         Stockholder Shares until 20 days after such delivery (the "FIRST OFFER
         ELECTION PERIOD"). The First Offer Notice shall disclose in reasonable
         detail the proposed number of Stockholder Shares to be transferred,
         the proposed terms and conditions of the Transfer and the identity of
         the proposed transferee(s) (if known). First, the Company may elect to
         purchase all or any portion of the Stockholder Shares specified in the
         First Offer Notice at the price and on the terms specified therein by
         delivering written notice of such election to the Transferring Owner
         as soon as practical but in any event within ten days after the
         delivery of the First Offer Notice to the Company. If the Company has
         not elected to purchase all of such Stockholder Shares within such
         ten-day period, it shall promptly (but in any event within such
         ten-day period) give notice to the Investors of the number of such
         Stockholder Shares it has agreed to purchase, if any, and the
         Investors (other than the Transferring Owner) may elect to purchase
         all or any portion of such Stockholder Shares at the price and on the
         terms specified in the First Offer Notice by delivering written notice
         of such election (which shall state the maximum number of Stockholder
         Shares such Stockholder desires to purchase) to the Transferring Owner
         as soon as practical, but in any event within 20 days after delivery
         of the First Offer Notice. If the Investors have in the aggregate
         elected to purchase more than the number of Stockholder Shares being
         offered by the Transferring Owner and not being purchased by the
         Company, such Stockholder Shares shall be allocated among the
         Investors electing to purchase shares pro rata based upon the number
         of Stockholder Shares held by each such Investor, with such allocation
         process being repeated until either all such Stockholder Shares have
         been so allocated or all electing Investors have been allocated the
         maximum number of Stockholder Shares they have indicated a desire to
         purchase in their election notice. If the Company and/or the Investors
         have elected to purchase all of the Stockholder Shares specified in
         the First Offer Notice from the Transferring Owner, the Transfer of
         such securities shall be consummated as soon as practical after the
         delivery of the election notice(s) to the Transferring Owner, but in
         any event within 10 days after the expiration of the First Offer
         Election Period.

                           (ii) Subject to SECTION 3(c), to the extent that the
         Company and/or the Investors have not elected to purchase all of the
         Stockholder Shares being offered, the Transferring Owner may, within 90
         days after the expiration of the First Offer Election Period, Transfer
         such remaining Stockholder Shares at a price no less than the price per
         share specified in the First Offer Notice and on other terms no more
         favorable to such transferees than those offered to the Company in the
         First Offer Notice. Any Stockholder Shares not Transferred in
         accordance with this SECTION 3(b) within such 90-day period shall be
         reoffered to the Company and the Investors (other than the Transferring
         Owner) under this SECTION 3(b) prior to any Transfer. The purchase
         price specified in any First Offer Notice shall be payable solely in
         cash at the closing of the transaction or in installments over time, as
         specified in the First Offer Notice.

                  (c) PARTICIPATION RIGHTS. If the Company has not agreed to
purchase all of the Stockholder Shares being offered and such Stockholder Shares
are offered to the Investors pursuant to SECTION 3(b), then Investors may,
instead of purchasing such shares, elect to participate in the contemplated
Transfer at the same price per share and on the same terms by

                                      -4-

<PAGE>

delivering written notice to the Transferring Stockholder within 20 days after
delivery of the First Offer Notice. Such participation shall only be effective
if the Company and the Investors collectively do not elect to purchase all of
such shares. If any Investors have elected to participate in such Transfer, the
Transferring Stockholder and such participating Investors shall be entitled to
sell in the contemplated Transfer, at the same price and on the same terms, a
number of Stockholder Shares equal to the product of (i) the quotient determined
by dividing the percentage of Stockholder Shares owned by such Person by the
aggregate percentage of Stockholder Shares owned by the Transferring Stockholder
and the Investors participating in such sale and (ii) the number of Stockholder
Shares to be sold in the contemplated Transfer; provided that the Transferring
Owner may sell up to all of the shares intended to be sold by him without
limitation under this sentence if the proposed transferee agrees to buy all of
the shares of the participating Investors having the right to sell hereunder on
the same terms. Each Transferring Owner shall use reasonable best efforts to
obtain the agreement of the prospective transferee(s) to the participation of
the participating Investors in any contemplated Transfer and to the inclusion
(if requested) of the Preferred Stock in the contemplated Transfer, and no
Transferring Owner shall transfer any of its Stockholder Shares to any
prospective transferee if such prospective transferee(s) declines to allow the
participation of the Investors or the inclusion of the Stockholder Shares held
thereby. Each Person transferring Stockholder Shares pursuant to this SECTION
3(c) shall pay its pro rata share of the expenses incurred by the transferors in
connection with such transfer and shall be obligated to join pro rata in any
indemnification or other obligations that the Transferring Owner agrees to
provide in connection with such transfer (other than any such obligations that
relate specifically to a particular Stockholder such as indemnification with
respect to representations and warranties given by a Stockholder regarding such
Stockholder's title to and ownership of Stockholder Shares; PROVIDED that no
Stockholder shall be obligated in connection with such Transfer to agree to
indemnify or hold harmless the transferees with respect to an amount in excess
of the net cash proceeds paid to such Stockholder in connection with such
Transfer).

                  (d) PERMITTED TRANSFERS. The restrictions otherwise set forth
in this SECTION 3 shall not apply with respect to any Transfer of Stockholder
Shares by any Founding Holder (i) pursuant to applicable laws of descent and
distribution, among such Founding Holder's Family Group or, with respect to
Founding Holders who are executive employees of the Company, (ii) to other
executive employees of the Company provided that such transfers to other
executive employees do not exceed 25% of such Stockholder Shares currently owned
by such Founding Holder, and (iii) with the exception of a pledge that creates a
security interest, to a national or international bank solely as collateral for
a bona fide, full recourse debt owed directly by such Founding Holder to such
bank (collectively, the Persons identified in the foregoing clause are referred
to herein as the "PERMITTED TRANSFEREES"); PROVIDED that the restrictions
contained in this SECTION 3 shall continue to be applicable to the Stockholder
Shares after any such Transfer and provided further that the transferees of such
Stockholder Shares pursuant to this SECTION 3(d) shall have agreed in writing to
be bound by the provisions of this Agreement affecting the Stockholder Shares so
transferred. For purposes of this Agreement, "FAMILY GROUP" means a Founding
Holder's parents, spouse, siblings and descendants (whether natural or adopted)
and any trust or other entity solely for the benefit of the Founding Holder
and/or the Founding Holder's spouse, siblings and/or descendants.
Notwithstanding the foregoing, no party hereto shall avoid the provisions of
this Agreement by making one or more transfers to one or more Permitted
Transferees and then disposing of all or any portion of such party's interest in
any such

                                      -5-

<PAGE>

Permitted Transferee or, in the case of each Founding Holder which is an entity,
by permitting a transfer of any ownership interests in such entity.

                  (e) TERMINATION OF RESTRICTIONS. The restrictions set forth in
this SECTION 3 shall continue with respect to each Founding Holder's Stockholder
Shares until the earlier of (i) immediately prior to the transfer of such
Stockholder Share in a Public Sale, (ii) the date on which such Stockholder
Share has been transferred pursuant to this SECTION 3 (other than SECTIONS 3(d))
or (iii) the consummation of a Qualified Public Offering.

                  SECTION 4. ADDITIONAL RESTRICTIONS ON TRANSFER.

                  (a) RESTRICTED SECURITIES LEGEND. The Stockholder Shares have
not been registered under the Securities Act and, therefore, in addition to the
other restrictions on Transfer contained in this Agreement, cannot be sold
unless subsequently registered under the Securities Act or an exemption from
such registration is then available. Each certificate evidencing Stockholder
Shares and each certificate issued in exchange for or upon the Transfer of any
Stockholder Shares shall be stamped or otherwise imprinted with a legend in
substantially the following form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
         ADDITIONAL RESTRICTIONS ON TRANSFER AND VOTING AGREEMENTS SPECIFIED IN
         THE AMENDED AND RESTATED STOCKHOLDERS AGREEMENT, DATED AS OF FEBRUARY
         18, 2000, AS AMENDED AND MODIFIED FROM TIME TO TIME AMONG THE ISSUER
         (THE "COMPANY"), AND CERTAIN STOCKHOLDERS, AND THE COMPANY RESERVES THE
         RIGHT TO REFUSE THE TRANSFER OF SUCH SECURITIES UNTIL ALL CONDITIONS
         CONTAINED THEREIN HAVE BEEN FULFILLED WITH RESPECT TO ANY TRANSFER. A
         COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE COMPANY TO THE HOLDER
         HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE."

The Company shall imprint such legend on certificates evidencing Stockholder
Shares. The legend set forth above shall be removed from the certificates
evidencing any securities of the Company which cease to be Stockholder Shares in
accordance with the definition thereof.

                  (b) ACTIONS BY TRANSFEREE. Prior to Transferring any
Stockholder Shares (other than pursuant to a Public Sale or SECTION 3(b) or
SECTION 3(c)), the transferring holder of Stockholder Shares shall cause the
prospective transferee to be bound by this Agreement and any other agreements
executed by holders of Stockholder Shares relating to such securities in the
aggregate (collectively, the "OTHER AGREEMENTS") and to execute and deliver to
the Company and the other holders of Stockholder Shares counterparts of the
Other Agreements.

                  (b) AGREEMENT CONCERNING FUTURE STOCKHOLDERS. The parties
hereto agree that any Person who is not a party to this Agreement and who
hereafter becomes a holder of 5% or more of the Stockholder Shares (no matter
what form the securities held by such Person may take, including, without
limitation, any Preferred Stock or any options, warrants or other

                                      -6-

<PAGE>

securities convertible into or exchangeable or exercisable for Common Stock)
(each such Person a "5% HOLDER") shall be required to execute a counterpart to
this Agreement and become a Stockholder for purposes hereof as a precondition to
the effectiveness of any transaction which would result in such Person becoming
a 5% Holder. Accordingly, each Stockholder covenants and agrees that it shall
not undertake any Transfer of Stockholder Shares to any Person who would become
a 5% Holder as a result of such Transfer unless the transferee executes a
counterpart to this Agreement and becomes a Stockholder for purposes hereof in
connection with such Transfer, and the Company covenants and agrees that it will
not (i) issue any Common Stock, Preferred Stock or any options, warrants or
other securities convertible into or exchangeable or exercisable for Common
Stock to any Person if such issuance would cause such Person to become a 5%
Holder or (ii) record on its books and records any Transfer by a Stockholder of
any Stockholder Shares to any Person if such Transfer would cause such Person to
become a 5% Holder, in either case unless such Person executes a counterpart to
this Agreement and becomes a Stockholder for purposes hereof in connection with
such issuance or Transfer. The provisions of this SECTION 4(b) shall not
restrict any Transfer or issuance to any Person who becomes a 5% Holder by
acquiring securities in a Public Sale, but shall continue to apply to such
Person to the extent such Person becomes a 5% Holder without regard to any
securities acquired through a Public Sale.

                  SECTION 5. DEFINITIONS.

                  (a) DEFINED TERMS. The following definitions shall be applied
to the capitalized terms used in this Agreement for all purposes, unless
otherwise clearly indicated to the contrary.

                  "ABN AMRO" means ABN AMRO Capital (USA), Inc.

                  "AFFILIATE" of any particular Person means any other Person
controlling, controlled by or under common control with such particular Person,
where "control" means the possession, directly or indirectly, of the power to
direct the management and policies of a Person whether through the ownership of
voting securities, contract or otherwise.

                  "APPRAISER" means an investment banker of national reputation
or an accounting firm of national reputation experienced in valuing securities,
jointly selected by the Board and the holders of a majority of the Stockholder
Shares that are to be appraised (with the directors, if any, designated by such
holders being required to recuse themselves from any discussions and votes
related thereto).

                  "COMMON STOCK" means the Company's Common Stock, $0.01 par
value.

                  "FOUNDING HOLDER" means Ulf Arnetz.

                  "HOLDER" means, at the time in question, any Stockholder
holding, together with his Affiliates, Family Group members and Permitted
Transferees, 5% or more of the Stockholder Shares on a fully-diluted basis.

                                      -7-

<PAGE>

                  "MARKET PRICE" of any security means the average of the
closing prices of such security's sales on all securities exchanges on which
such security may at the time be listed, or, if there has been no sales on any
such exchange on any day, the average of the highest bid and lowest asked prices
on all such exchanges at the end of such day, or, if on any day such security is
not so listed, the average of the representative bid and asked prices quoted in
the NASDAQ System as of 4:00 p.m., New York time, or, if on any day such
security is not quoted in the NASDAQ System, the average of the highest bid and
lowest asked prices on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any similar
successor organization, in each such case averaged over a period of 21 days
consisting of the day as of which "Market Price" is being determined and the 20
consecutive business days prior to such day. If at any time such security is not
listed on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the "Market Price" shall be the fair value thereof as
determined by the Board in its reasonable discretion.

                  "PERSON" means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

                  "PREFERRED STOCK" means collectively the Company's Series I
Preferred, Series II Preferred, Series III Preferred, Series A Preferred, and
Series B Preferred as defined in the Amended and Restated Certificate of
Incorporation.

                  "PUBLIC SALE" means any sale of Stockholder Shares to the
public pursuant to an offering registered under the Securities Act or to the
public through a broker, dealer or market maker pursuant to the provisions of
Rule 144 (or similar provision then in force) adopted under the Securities Act.

                  "QUALIFIED PUBLIC OFFERING" has the meaning stated in the
Purchase Agreement.

                  "REGISTRATION AGREEMENT" shall mean the Registration Agreement
dated February 18, 2000, between and among Company and the Stockholders.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
from time to time.

                  "STOCKHOLDER SHARES" means (i) any Common Stock purchased or
otherwise acquired by any Stockholder, (ii) any Common Stock issued or issuable
directly or indirectly upon conversion of the Preferred Stock held by a
Stockholder, (iii) any Common Stock issued or issuable directly or indirectly
upon exercise, conversion or exchange of any options, warrants or other
securities or instruments held by a Stockholder and (iv) any Common Stock issued
or issuable with respect to the securities referred to in clauses (i), (ii) and
(iii) above by way of stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other
reorganization. For purposes of this Agreement, any Person who holds Preferred
Stock shall be deemed to be the holder of the Stockholder Shares issuable
directly or indirectly upon conversion of the Preferred Stock in connection with
the transfer thereof or otherwise and regardless of any restriction or
limitation on the conversion thereof. As

                                      -8-

<PAGE>

to any particular shares constituting Stockholder Shares, such shares shall
cease to be Stockholder Shares when they have been sold in a Public Sale.

                  "SUBSIDIARY" means, with respect to any Person, any
corporation, limited liability company, partnership, association or other
business entity of which (i) if a corporation, a majority of the total voting
power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person or a combination thereof,
or (ii) if a limited liability company, partnership, association or other
business entity, a majority of the limited liability company, partnership or
other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by any Person or one or more Subsidiaries of that Person
or a combination thereof. For purposes hereof, a Person or Persons shall be
deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if such Person or Persons
shall be allocated a majority of limited liability company, partnership,
association or other business entity gains or losses or shall be or control the
managing director, managing member, manager or general partner of such limited
liability company, partnership, association or other business entity.

                  "TRANSFER" means any direct or indirect sale, transfer,
assignment, pledge or other disposition (whether with or without consideration
and whether voluntarily or involuntarily or by operation of law), whether in a
single transaction or series of transactions.

                  "XCELERA" means Xcelera.com, Inc., one of the Investors
hereto.

                  (b) OTHER DEFINITIONS. The terms set forth below are defined
on the following pages of this Agreement:

5% HOLDER, 7
Agreement, 1
Company, 1
FAMILY GROUP, 5
FIRST OFFER ELECTION PERIOD, 4
FIRST OFFER NOTICE, 4
Investors, 1
Other Agreements, 6
PERMITTED TRANSFEREES, 5
Purchase Agreement, 1
TRANSFERRING OWNER, 3

                  SECTION 6. TRANSFERS IN VIOLATION OF AGREEMENT. Any Transfer
or attempted Transfer of any Stockholder Shares in violation of any provision of
this Agreement shall be void, and the Company shall not record such Transfer on
its books or treat any purported transferee of such Stockholder Shares as the
owner of such shares for any purpose.

                  SECTION 7. AMENDMENT AND WAIVER. Except as otherwise provided
herein, no modification, amendment or waiver of any provision of this Agreement
shall be effective against the Company or the Stockholders unless such
modification, amendment or waiver is approved in writing by the Company and 75%
of the Stockholder Shares held by the Stockholders; provided, that the
provisions of Section 3 shall not be amended in a manner adverse to Ulf Arnetz
without his written consent. The failure of any party to enforce any of the

                                      -9-

<PAGE>

provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce
each and every provision of this Agreement in accordance with its terms.
Notwithstanding the foregoing, the Company shall be entitled to amend the
schedules to this Agreement to reflect the Transfer or issuance of Stockholder
Shares in accordance herewith, the change of address of any Stockholder or to
reflect any other change in the information contained thereon.

                  SECTION 8. TERM OF THIS AGREEMENT. This Agreement shall
continue in full force and effect until the first to occur of (a) the Board
shall have recommended, and the holders of not less than seventy-five percent
(75%) of the Stockholder Shares shall have approved the termination hereof; (b)
the effective date of the registration statement for a Qualified Public
Offering, or (c) the sale of all or substantially all of the assets or business
of the Company by merger, sale of assets or other means to an entity in which
the Company has less than a 50% ownership interest before such merger, sale or
other transaction. No termination of this Agreement, by lapse of time of
otherwise, shall affect any rights or obligations created by exercise of any
option to purchase or sell any Stockholder Shares in accordance with any of the
provisions of SECTION 3 hereof.

                  SECTION 9. SEVERABILITY. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect the validity, legality or enforceability of any other provision of
this Agreement in such jurisdiction or affect the validity, legality or
enforceability of any provision in any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

                  SECTION 10. ENTIRE AGREEMENT. Except as otherwise expressly
set forth herein, this Agreement embodies the complete agreement and
understanding among the parties hereto with respect to the subject matter hereof
and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, including without
limitation the Prior Agreement, which may have related to the subject matter
hereof in any way.

                  SECTION 11. SUCCESSORS AND ASSIGNS. Except as otherwise
provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by the Company and its successors and assigns and the Stockholders
and any subsequent holders of Stockholder Shares and the respective successors
and assigns of each of them, so long as they hold Stockholder Shares.

                  SECTION 12. COUNTERPARTS. This Agreement may be executed in
multiple counterparts in the form attached hereto, each of which shall be an
original and all of which taken together shall constitute one and the same
agreement.

                  SECTION 13. REMEDIES. The Company, the Stockholders shall be
entitled to enforce their rights under this Agreement specifically, to recover
damages by reason of any

                                      -10-

<PAGE>

breach of any provision of this Agreement and to exercise all other rights
existing in their favor. The parties hereto agree and acknowledge that money
damages would not be an adequate remedy for any breach of the provisions of this
Agreement and that the Company, any Investor and any Current Owner may in its
sole discretion apply to any court of law or equity of competent jurisdiction
for specific performance and/or injunctive relief (without posting a bond or
other security) in order to enforce or prevent any violation of the provisions
of this Agreement.

                  SECTION 14. NOTICES. Any notice provided for in this Agreement
shall be in writing and shall be either personally delivered, or mailed first
class mail (postage prepaid) or sent by reputable overnight courier service
(charges prepaid) to the Company at the address set forth below and to any other
recipient at the address indicated on the schedules hereto and to any subsequent
holder of Stockholder Shares subject to this Agreement at such address as
indicated by the Company's records, or at such address or to the attention of
such other person as the recipient party has specified by prior written notice
to the sending party. Notices shall be deemed to have been given hereunder when
delivered personally, three days after deposit in the U.S. mail and one day
after deposit with a reputable overnight courier service. The Company's address
and the address of the Company's and Investors' respective counsel are:

                   Ulf Arnetz
                   President and CEO
                   Corechange, Inc.
                   260 Franklin Street, Suite 1890
                   Boston, Massachusetts  02100

                   with a copy to (which shall not constitute notice hereunder):

                   Hale and Dorr LLP
                   60 State Street
                   Boston, Massachusetts 02109
                   Attention: Stuart M. Falber
                   Telecopy No:  (617) 526-5000

                   Kirkland & Ellis
                   200 East Randolph Drive
                   Chicago, Illinois 60601
                   Attention: Gary R. Silverman
                   Telecopy No: (312) 861-2200

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

                  SECTION 15. GOVERNING LAW. The corporate law of the State of
Delaware shall govern all issues and questions concerning the relative rights of
the Company and its stockholders. All other issues and questions concerning the
construction, validity, interpretation

                                      -11-

<PAGE>

and enforceability of this Agreement and the exhibits and schedules hereto shall
be governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State
of Delaware.

                  SECTION 16. BUSINESS DAYS. If any time period for giving
notice or taking action hereunder expires on a day which is a Saturday, Sunday
or legal holiday in the state in which the Company's chief-executive office is
located, the time period shall automatically be extended to the business day
immediately following such Saturday, Sunday or legal holiday.

                  SECTION 17. DESCRIPTIVE HEADINGS.  The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a part of
this Agreement.

                  SECTION 18. NO STRICT CONSTRUCTION. The parties hereto have
participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement.

                                     * * * *

                                      -12-

<PAGE>

                  IN WITNESS WHEREOF, the Parties have executed this Agreement
as of the date and year first above written.

THE COMPANY:                                CORECHANGE, INC.

                                            By:
                                                ------------------------------
                                            Name:
                                                 -----------------------------
                                            Title:
                                                  ----------------------------

                                      -13-

<PAGE>

                                                                       EXHIBIT D

                                HALE AND DORR LLP
                                 60 State Street
                           Boston, Massachusetts 02109
                       (617) 526-6000 * FAX (617) 526-5000

                                                          February 18, 2000

To The Purchasers Named
on EXHIBIT A hereto

         Re:  CORECHANGE, INC.

Gentlemen:

This opinion is furnished to each of the Purchasers named on EXHIBIT A hereto in
connection with the purchase of an aggregate of 3,046,775 shares (the "Preferred
Shares") of the Series B Convertible Preferred Stock, $.01 par value per share
("Series B Preferred Stock"), of Corechange, Inc., a Delaware corporation (the
"Company"). Capitalized terms used herein but not otherwise defined herein shall
have the respective meanings ascribed to them in the Series B Convertible
Preferred Stock Purchase Agreement dated as of the date hereof (the "Purchase
Agreement") between the Company and the Purchasers.

We have represented the Company in connection with the preparation, execution
and delivery of the Purchase Agreement and the issuance of the Preferred Shares,
and are familiar with the proceedings taken by the Company in connection
therewith.

In connection with this opinion, we have examined and relied upon the following:

         1. The Purchase Agreement (including the Exhibits and Schedules
thereto);

         2. The Amended and Restated Stockholders Agreement dated as of the date
hereof by and among the Company and the Stockholders (the "Stockholders
Agreement");

         3. The Registration Agreement dated as of the date hereof by and among
the Company and the Holders (the "Registration Agreement");

         4. The Company's Certificate of Incorporation, as amended to date (the
"Certificate of Incorporation");

         5. The Company's By-Laws, as amended to date (the "By-Laws");

         6. A Certificate of Good Standing and Legal Existence for the Company,
issued by the Secretary of State of the State of Delaware, dated February 18,
2000 (the "Delaware Certificate");

<PAGE>

         7. A Certificate of Qualification to do business for the Company,
issued by the Secretary of State of the Commonwealth of Massachusetts, dated
February 18, 2000 (the "Massachusetts Certificate");

         8. A Certificate of the Company, executed on behalf of the Company by
the Company's President, dated of even date herewith, certifying to, among other
things, the fulfillment of the conditions specified in Sections 1 and 2A through
2H of the Purchase Agreement (the "Officer's Certificate");

         9. A Certificate of the Company, executed on behalf of the Company by
the Company's Secretary, dated of even date herewith, certifying, among other
things, as to the (a) Certificate of Amendment of Certificate of Incorporation
filed on February 18, 2000 with the Secretary of State of the State of Delaware,
(b) the By-Laws and (c) resolutions of the Board of Directors and stockholders
relating to the Purchase Agreement and the transactions contemplated therein,
including the issuance of the Preferred Shares.

         10. A Certificate of the Company's President, dated of even date
herewith, certifying as to certain issues of fact (the "President's
Certificate");

         11. The Company's corporate minute and stock record books; and

         12. Such other agreements, documents, corporate records, certificates
and materials as we have deemed necessary for the purposes of the opinions
rendered herein.

         In our examination, we have assumed the completeness of the corporate
minute and stock record books of the Company, the authenticity of original
documents, the accuracy of all copies (whether certified or not), the
genuineness of all signatures and the legal capacity of all persons executing
all documents examined by us.

         In rendering this opinion, we have relied, as to all questions of fact
material to this opinion, solely upon certificates of public officials and
officers of the Company and upon the representations and warranties made by the
Purchasers and the Company in the Purchase Agreement. We have not attempted to
verify independently such facts, although we know of no facts upon which we have
relied which lead us to question the accuracy of such certificates or
representations and warranties.

         We have not made a review of the laws of any state or jurisdiction
other than the state laws of the Commonwealth of Massachusetts, the federal laws
of the United States and the General Corporation Law statute of the State of
Delaware (the "Delaware General Corporation Law"). Accordingly, we express no
opinion herein with respect to the laws of any state or jurisdiction other than
the state laws of the Commonwealth of Massachusetts, the federal laws of the
United States and the Delaware General Corporation Law. To the extent that the
laws of any other jurisdiction govern any of the matters as to which we are
opining herein, we have assumed that such laws are identical to the state laws
of the Commonwealth of Massachusetts, and we are expressing no opinion herein as
to whether such assumption is reasonable or correct. For the purposes of this
opinion, we have assumed that the facts and law governing the performance by the
parties of their respective obligations under the Purchase Agreement, the
Stockholders

<PAGE>

Agreement and the Registration Agreement will be identical to the facts and law
governing such performance as of the date of this opinion.

         The opinions hereinafter expressed are qualified to the extent that
they may be subject to or affected by (i) applicable bankruptcy, insolvency,
reorganization, moratorium, usury, fraudulent transfer or other laws relating to
or affecting the rights of creditors generally, (ii) statutory or decisional law
concerning recourse by creditors to security in the absence of notice and
hearing, and (iii) duties and standards imposed on creditors and parties to
contracts, including, without limitation, requirements of good faith,
reasonableness and fair dealing. Furthermore, we express no opinion as to the
availability of any equitable or specific remedy or the successful assertion of
any equitable defense upon any breach of any of the covenants, warranties or
other provisions contained in any of the agreements, instruments or documents as
to which we are opining herein.

         We are expressing no opinion as to (i) compliance by the Company with
the so-called "blue sky" or state securities laws or state or federal antifraud
laws in connection with the issuance and sale of the Preferred Shares and the
Common Stock issuable upon conversion thereof or (ii) the validity or
enforceability of the indemnification or contribution provisions of the
Registration Agreement.

         We have assumed that each of the Purchase Agreement, the Stockholders
Agreement and the Registration Agreement has been duly authorized, executed and
delivered by the Purchasers and, where applicable, by each of the other parties
thereto (other than the Company), and that each of the Purchasers and each such
other party has all requisite power and authority to effect the transactions
contemplated by the Purchase Agreement, the Stockholders Agreement and the
Registration Agreement. We have also assumed that each of the Purchase
Agreement, the Stockholders Agreement and the Registration Agreement is the
valid and binding obligation of the Purchasers and, where applicable, of each of
the other parties thereto (other than the Company), enforceable against the
Purchasers and each such other party in accordance with their respective terms.
We do not render any opinion as to the application of any federal or state law
or regulation to the Purchasers' or such other parties' power, authority or
competence.

         Any reference to "our knowledge" or "knowledge", or to any matters
"known to us" or that have "come to our attention", "of which we are aware" or
any variation of any of the foregoing shall mean the conscious awareness of the
attorneys in this firm who have rendered substantive attention to this
transaction (including the preparation of the Purchase Agreement, the
Stockholders Agreement and the Registration Agreement and the transactions
contemplated thereby) of the existence or absence of any facts which would
contradict our opinions or statements set forth below. We have not undertaken
any independent investigation to determine the existence or absence of such
facts, and no inference as to our knowledge of the existence or absence of such
facts should be drawn from the fact of our representation of the Company.
Without limiting the foregoing, for purposes of our opinions below, we have not
searched any computer or electronic databases, nor have we conducted a search of
the dockets of any court or administrative or other regulatory agency.

         For purposes of our opinions as to the due incorporation, legal
existence and good standing of the Company expressed in the first and second
sentences of paragraph 1 below, we

<PAGE>

have relied solely upon the Delaware Certificate and the Massachusetts
Certificate, and such opinions are limited accordingly, and rendered as of the
respective dates of such certificates. Our opinion in paragraph 3 below as to
issued and outstanding capital stock of the Company is based solely on our
review of the stock record books of the Company as of the date hereof. Our
opinion in paragraph 3 below as to (i) the full payment for the outstanding
shares of capital stock of the Company and (ii) any outstanding preemptive,
conversion or other rights, options, warrants or agreements to purchase or
acquire from the Company any shares of its capital stock, is based solely on the
President's Certificate, and is limited accordingly.

         Based upon and subject to the foregoing, we are of the opinion that:

         1. The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Delaware. The Company is duly
qualified to do business as a foreign corporation in Massachusetts.

         2. The Company has all requisite corporate power and authority (a) to
own and operate its properties and assets (as such property and assets are known
to us), and to carry on its business as, to our knowledge, it is currently
conducted, (b) to enter into the Purchase Agreement, the Stockholders Agreement
and the Registration Agreement, (c) to issue and sell the Preferred Shares, (d)
to issue the Common Stock initially issuable upon conversion of the Preferred
Shares and (e) to carry out and perform its obligations under the terms of the
Purchase Agreement, the Stockholders Agreement and the Registration Agreement.

         3. Immediately after the First Closing, the authorized capital stock of
the Company will consist of 15,000,000 shares of Common Stock, par value $.01
per share, 4,097,171 shares of which are issued and outstanding of record as of
the date hereof, and 7,849,584 shares of Preferred Stock, par value $.01 per
share, of which (a) 2,884,598 shares have been designated Series A Convertible
Preferred Stock, par value $.01 per share, 2,403,832 of which are issued and
outstanding of record as of the date hereof, (b) 4,000,000 shares have been
designated Series B Convertible Preferred Stock, par value $.01 par per share,
3,046,775 of which will be issued and outstanding of record immediately
following the Closing,, (c) 413,965 shares have been designated Series I Junior
Convertible Preferred Stock, par value $.01 per share, all of which shares are
issued and outstanding of record as of the date hereof, (d) 336,021 shares have
been designated Series II Junior Convertible Preferred Stock, par value $.01 per
share, all of which shares are issued and outstanding of record as of the date
hereof, and (e) 215,000 shares have been designated Series III Junior
Convertible Preferred Stock, par value $.01 per share, 200,032 of which shares
are issued and outstanding of record as of the date hereof. All the aforesaid
issued and outstanding shares of capital stock of the Company have been duly
authorized and validly issued, and are fully paid and nonassessable. To our
knowledge, there are no outstanding preemptive, conversion or other rights,
options, warrants or agreements issued by or binding upon the Company for the
purchase or acquisition from the Company of any shares of its capital stock
other than the rights created by the Purchase Agreement or the Stockholders
Agreement or as disclosed in the Schedule of Exceptions.

         4. The Purchase Agreement, the Stockholders Agreement and the
Registration Agreement and the consummation of the transactions contemplated by
each of them have been duly authorized by all necessary corporate action on the
part of the Company, and the Purchase

<PAGE>

Agreement, the Stockholders Agreement and the Registration Agreement have been
duly executed and delivered by the Company and constitute valid and binding
agreements of the Company, enforceable against the Company in accordance with
their respective terms.

         5. The Certificate of Amendment filed with the Secretary of State of
the State of Delaware on the date hereof has been duly adopted by the Board of
Directors and the stockholders of the Company in accordance with the Certificate
of Incorporation, the By-laws and the Delaware General Corporation Law.

         6. The issuance, sale and delivery of the Preferred Shares have been
duly authorized, and when issued, sold and delivered against payment therefor in
accordance with the Purchase Agreement, the Preferred Shares will be validly
issued and outstanding, fully paid and nonassessable and, to our knowledge, not
subject to any preemptive rights of the holders of any other class or series of
capital stock of the Company.

         7. The issuance and delivery of the shares of Common Stock initially
issuable upon conversion of the Preferred Shares have been duly authorized by
all necessary corporate action on the part of the Company, and such shares of
Common Stock (a) have been duly reserved for issuance upon conversion of the
Preferred Shares, (b) are not, to our knowledge, currently subject to any
preemptive rights of the holders of any other class or series of capital stock
of the Company under the Certificate of Incorporation or the By-laws, and (c)
when issued and delivered upon conversion of the Preferred Share in accordance
with the Certificate of Incorporation, will be validly issued and outstanding,
fully paid and nonassessable.

         8. The execution and delivery of the Purchase Agreement, the
Stockholders Agreement and the Registration Agreement, the consummation of the
transactions contemplated thereby and the issuance of the Preferred Shares will
not result in any violation of, be in conflict with, constitute a default under
or result in the creation of any mortgage, pledge, lien, encumbrance or charge
upon any of the properties or assets of the Company pursuant to any term or
provision of (a) the Certificate of Incorporation or By-Laws of the Company, (b)
any mortgage, indenture, contract, agreement, instrument listed in Section 5K of
the Schedule of Exceptions or (c) any judgment, decree, or order specifically
naming the Company and known to us.

         9. To the best of our knowledge, except for the matters set forth in
the Schedule of Exceptions, there are no actions, suits, proceedings or
investigations pending or threatened against the Company or its properties
which, individually or in the aggregate, might result in any impairment of the
right or ability of the Company to carry on its business as, to our knowledge,
it is now conducted, and none of such actions, suits, proceedings or
investigations questions the validity of the Purchase Agreement, the
Stockholders Agreement or the Registration Agreement or the transactions
contemplated thereby.

         10. Based in part on the representations of the Purchasers in Section
7D of the Purchase Agreement, except as obtained and in effect as of the date
hereof, the offer, issue, sale and delivery of the Preferred Shares in
conformity with the terms of the Purchase Agreement and the issuance and
delivery of the Common Stock issuable upon conversion of the Preferred Shares

<PAGE>

will be exempt from the registration requirements of Section 5 of the Securities
Act of 1933, as amended.

         This opinion is based upon currently existing statutes, rules,
regulations and judicial decisions, and we disclaim any obligation to advise you
of any change in any of these sources of law or subsequent legal or factual
developments which might affect any matters or opinions set forth herein. Please
note that we are opining only as to the matters expressly set forth herein, and
no opinion should be inferred as to any other matters.

         This opinion is delivered to the Purchasers solely for the purposes set
forth in the Purchase Agreement and may not be used or relied upon by the
Purchaser for any other purpose or used by, quoted to or relied upon by any
other person or entity for any purpose, without our prior written consent.

                                                     Very truly yours,

                                                     HALE AND DORR LLP

<PAGE>

                             AMENDMENT NO. 1 TO THE
             SERIES B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

         This Amendment No. 1 to the Series B Convertible Preferred Stock
Purchase Agreement dated as of this 10th day of April, 2000 (the "Amendment"),
is entered into among Corechange, Inc., a Delaware corporation (the "Company"),
and the Purchasers (as hereinafter defined).

         WHEREAS, the Company and the individuals and entities who were
signatories thereto (the "Purchasers") are parties to the Series B Convertible
Preferred Stock Purchase Agreement dated as of February 18, 2000 (the "Purchase
Agreement"); and

         WHEREAS, the Company and the Purchasers believe it to be in their
mutual best interests to amend the Purchase Agreement;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained in this Amendment, the parties hereto agree as follows:

1.   AMENDMENT TO SECTION 3C(xv). Section 3C(xv) of the Purchase Agreement is
     hereby amended by deleting clause (i) of such Section in its entirety and
     inserting in lieu thereof the following:

         "(i) provides cliff vesting after one year (33.33%) with the remaining
         portion vesting on a straight line monthly basis over at least an
         additional two year period;"

2.   AMENDMENT TO SECTION 3C(xvi). Section 3C(xvi) of the Purchase Agreement is
     hereby amended by attaching the following proviso to the end of such
     Section:

         "; provided that in no event shall the 20% limitation set forth in this
         clause require the Company to seek the approval of the holders of a
         majority of the Underlying Common Stock under this clause to issue up
         to 1,310,000 shares of Common Stock, or to grant options therefor,
         including shares issued or issuable upon exercise of options
         outstanding on April 10, 2000 (such number to be proportionately
         adjusted in the event of any stock splits, stock dividends,
         recapitalizations or similar events) to officers, directors,
         consultants and employees of the Company or any subsidiary pursuant to
         the Company's 1997 Stock Incentive Plan (it being understood that any
         shares subject to options that expire or terminate unexercised shall
         not count toward the 1,310,000 number set forth above)."

3.   AMENDMENT TO SECTION 3J. Section 3J of the Purchase Agreement is hereby
     amended by attaching the following clause to the end of the first sentence
     of Section 3J:

         "(l) issuance of warrants to purchase 6,168 shares (subject to
         appropriate adjustment) of Common Stock to Jan Olaf Hersler pursuant to
         an agreement between Mr. Hersler and the Company and the shares of
         Common Stock issued or issuable upon exercise of such warrants."

<PAGE>

4.   RATIFICATION. In all other respects, the Purchase Agreement is hereby
     ratified and confirmed.

5.   COUNTERPARTS. This Amendment may be executed in one or more counterparts,
     each of which shall be deemed an original and all of which together shall
     be considered one and the same agreement.

6.   EFFECTIVE DATE. This Amendment shall become effective upon approval by the
     Company and the holders of at least a majority of the Underlying Common
     Stock, as defined in the Purchase Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
1 to the Purchase Agreement as of the date first written above.

                                           Corechange, Inc.

                                          By:  /S/  ULF ARNETZ
                                               --------------------------

                                               Name:  Ulf Arnetz

                                               Title:  President

                                           Holders of at least a majority of the
                                           Underlying Common Stock, as defined
                                           in the Purchase Agreement

                                           By:  /S/  ULF ARNETZ
                                                --------------------------
                                                    Under Power of Attorney
                                                    of Holders attached hereto

<PAGE>

                             AMENDMENT NO. 2 TO THE
             SERIES B CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT

         This Amendment No. 2 to the Series B Convertible Preferred Stock
Purchase Agreement dated as of this ___ day of July, 2000 (the "Amendment"), is
entered into among Corechange, Inc., a Delaware corporation (the "Company"), and
the Purchasers (as hereinafter defined).

         WHEREAS, the Company and the individuals and entities who were
signatories thereto (the "Purchasers") are parties to the Series B Convertible
Preferred Stock Purchase Agreement dated as of February 18, 2000, as amended
(the "Purchase Agreement"); and

         WHEREAS, the Company and the Purchasers believe it to be in their
mutual best interests to amend the Purchase Agreement;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained in this Amendment, the parties hereto agree as follows:

7.   AMENDMENT TO SECTION 3C(XVI). Section 3C(xvi) of the Purchase Agreement is
     hereby amended by attaching the following proviso to the end of such
     Section:

         "; provided that in no event shall the 20% limitation set forth in this
         clause require the Company to seek the approval of the holders of a
         majority of the Underlying Common Stock under this clause to issue up
         to 3,500,000 shares of Common Stock, or to grant options therefor,
         including shares issued or issuable upon exercise of options
         outstanding on July ___, 2000 (such number to be proportionately
         adjusted in the event of any stock splits, stock dividends,
         recapitalizations or similar events), to officers, directors,
         consultants and employees of the Company or any subsidiary pursuant to
         the Company's 1997 Stock Incentive Plan (it being understood that any
         shares subject to options that expire or terminate unexercised shall
         not count toward the 3,500,000 number set forth above)."

8.   RATIFICATION. In all other respects, the Purchase Agreement is hereby
     ratified and confirmed.

9.   COUNTERPARTS. This Amendment may be executed in one or more counterparts,
     each of which shall be deemed an original and all of which together shall
     be considered one and the same agreement.

10.  EFFECTIVE DATE. This Amendment shall become effective upon approval by the
     Company and the holders of at least a majority of the Underlying Common
     Stock, as defined in the Purchase Agreement.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
2 to the Purchase Agreement as of the date first written above.

                                        Corechange, Inc.

                                       By:   /S/ ULF ARNETZ
                                             --------------------------------

                                             Name: Ulf Arnetz

                                             Title:  President

                                        Holders of at least a majority of the
                                        Underlying Common Stock, as defined in
                                        the Purchase Agreement

                                        By:  /S/ ULF ARNETZ
                                             -------------------------------
                                                 Under Power of Attorney
                                                 of Holders attached hereto<PAGE>

                                                                   EXHIBIT 10.10

                                  OFFICE LEASE

         THIS LEASE made as of the 27th day of December, 1996, between 260
Franklin Street Associates Trust, Massachusetts Business Trust ("Landlord") and
Corechange LLC, a Delaware limited liability company whose address 304 Vassar
Street, Cambridge, MA 02139 ("Tenant").

                                   WITNESSETH:

                                    ARTICLE 1

                                PREMISES AND TERM

         Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
that certain space known as Suite 1890 ("Premises") described or shown on
Exhibit A attached hereto, in the building known as the 260 Franklin Street
("Building") located at 260 Franklin Street, Boston, MA 02110 ("Property", as
further described in Article 25), subject to the provisions herein contained.
The term ("Term") of this Lease shall commence on the 1st day of March, 1997
("Commencement Date"), and end on the 28th day of February, 2002 ("Expiration
Date'), unless sooner terminated as provided herein. The Commencement Date and
Expiration Date shall be subject to adjustment as provided in Article 4.
Landlord and Tenant agree that for purposes of this Lease the rentable area of
the Premises is 5,879 square feet and the rentable area of the Property is
348,901 square feet.

                                    ARTICLE 2

                                    BASE RENT

         Tenant shall pay Landlord monthly Base Rent of Fourteen Thousand Nine
Hundred and, Forty-Two Dollars and 46/100 ($14,942.46), in advance on or before
the first day of each calendar month during the Term, provided, however no Base
Rent shall be due with respect to the fifteen (15) days after the Commencement
Date, but Base Rent for any partial month after the Commencement Date for which
Rent is payable shall be paid on the first day of the Term. If the Term
commences on a day other than the first day of a calendar month, or ends on a
day other than the last day if a calendar month, then the Base Rent for such
month shall be prorated on the basis of 1/30th of the monthly Base Rent for each
day of such month.

                                      -1-

<PAGE>

                                    ARTICLE 3

                                 ADDITIONAL RENT

         (A) TAXES. Tenant shall pay Landlord an amount equal to Tenant's
Prorata Share of Taxes in excess of the amount of Taxes paid by Landlord during
the fiscal year 1997 ("Base Tax Year"). The terms "Taxes" and "Tenant's Prorata
Share" shall have the meanings specified therefor in Article 25.

         (B) OPERATING EXPENSES. Tenant shall pay Landlord an amount equal to
Tenant's Prorata Share of Operating Expenses in excess of the amount of
Operating Expenses paid by Landlord during the calendar year 1997 ("Base Expense
Year"). The terms "Operating Expenses" and "Tenant's Prorata Share" shall have
the meanings specified therefor in Article 25.

         (C)      Intentionally Omitted.

         (D) MANNER OF PAYMENT. Taxes and Operating Expenses shall be paid in
the following manner:

         (i) Landlord may reasonably estimate in advance the amounts Tenant
shall owe for Taxes and Operating Expenses for any full or partial calendar year
of the Term. In such event, Tenant shall pay such estimated amounts, or monthly
basis, on or before the first day of each calendar month, together with Tenant's
payment of Base Rent. Such estimate may be reasonably adjusted from time to time
by Landlord.

         (ii) Within 120 days after the end of each calendar year, or as soon
thereafter as practicable, Landlord shall provide a statement (the "Statement")
to Tenant showing: (a) the amount of actual Taxes and Operating Expenses for
such calendar year, with a listing of amounts for major categories of Operating
Expenses, and such amounts for the Base Years, (b) any amount paid by Tenant
towards Taxes and Operating Expenses during such calendar year on an estimated
basis and (c) any revised estimate of Tenant's obligations for Taxes and
Operating Expenses for the current calendar year.

         (iii) If the Statement shows that Tenant's estimated payments were less
than Tenant's actual obligations for Taxes and Operating Expenses for such year,
Tenant shall pay the difference. If the Statement shows an increase in Tenant's
estimated payments for the current calendar year, Tenant shall pay the
difference between the new and former estimates, for the period from January 1
of the current calendar year through the month in which the Statement is sent.
Tenant shall make such payments within thirty (30) days after Landlord sends the
Statement.

         (iv) If the Statement shows that Tenant's estimated payments exceeded
Tenants actual obligations for Taxes and Operating Expenses, Tenant shall
receive a credit for the difference against payments of Rent next due. If the
Term shall have expired and no further Rent shall be due, Tenant shall receive a
refund of such difference, within thirty (30) days after Landlord sends the
Statement.

         (v)      Intentionally Omitted.

                                      -2-

<PAGE>

         (vi) So long as Tenant's obligations hereunder are not materially
adversely affected thereby, Landlord reserves the right to reasonably change,
from time to time, the manner or timing of the foregoing payments. In lieu of
providing one Statement covering Taxes or Operating Expenses, Landlord may
provide separate statements, at the same or different times. No delay by
Landlord in providing the Statement (or separate statements) shall be deemed a
default by Landlord or a waiver of Landlord's right to require payment of
Tenant's obligations for actual or estimated Taxes or Operating Expenses. In no
event shall a decrease in Taxes or Operating Expenses below the Base Year
amounts ever decrease the monthly Base Rent, or give rise to a credit in favor
of Tenant.

         (E) PRORATION. If the Term commences other than on January 1, or ends
other than on December 31, Tenant's obligations to pay estimated and actual
amounts towards Taxes and Operating Expenses for such first or final calendar
years shall be prorated to reflect the portion of such years included in the
Term. Such proration shall be made by multiplying the total estimated or actual
(as the case may be) Taxes and Operating Expenses, for such calendar years, as
well as the Base Year amounts, by a fraction, the numerator of which shall be
the number of days of the Term during such calendar year, and the denominator of
which shall be 365.

         (F) LANDLORD'S RECORDS. Landlord shall maintain records respecting
Taxes and Operating Expenses and determine the same in accordance with sound
accounting and management practices, consistently applied. Although this Lease
contemplates the computation of Taxes and Operating Expenses on a cash basis,
Landlord shall make reasonable and appropriate accrual adjustments to ensure
that each calendar year, including the Base Years, includes substantially the
same recurring items. Landlord reserves the right to change to a full accrual
system of accounting so long as the same is consistently applied and Tenant's
obligations are not materially adversely affected. Tenant or its representative
shall have the right to examine such records upon reasonable prior notice
specifying such records Tenant desires to examine, during normal business hours
at the place or places where such records are normally kept by sending such
notice no later than forty-five (45) days following the furnishing of the
Statement. Tenant may take exception to matters included in Taxes or Operating
Expenses, or Landlord's computation of Tenant's Prorata Share of either, by
sending notice specifying such exception and the reasons therefor to Landlord no
later than thirty (30) days after Landlord makes such records available for
examination. Such Statement shall be considered final, except as to matters to
which exception is taken after examination of Landlord's records in the
foregoing manner and within the foregoing times. Tenant acknowledges that
Landlord's ability to budget and incur expenses depends on the finality of such
Statement, and accordingly agrees that time is of the essence of this Paragraph.
If Tenant takes exception to any matter contained in the Statement as provided
herein, Landlord shall refer the matter to an independent certified public
accountant, whose certification as to the proper amount shall be final and
conclusive as between Landlord and Tenant. Tenant shall promptly pay the cost of
such certification unless such certification determines that Tenant was
overbilled by more than 2%. Pending resolution of any such exceptions in the
foregoing manner, Tenant shall continue paying Tenant's Prorata Share of Taxes
and Operating Expenses in the amounts determined by Landlord, subject to
adjustment after any such exceptions are so resolved.

         (G) RENT AND OTHER CHARGES. Base Rent, Taxes, Operating Expenses, OPI
Escalation Amounts, and other amounts which Tenant is or becomes obligated to
pay Landlord

                                      -3-

<PAGE>

under this Lease or other agreement entered in connection herewith, are
sometimes herein referred to collectively as "Rent," and all remedies applicable
to the nonpayment of Rent shall be applicable thereto. Rent shall be paid at any
office maintained by Landlord or its agent at the Property, or at such other
place as Landlord may designate.

                                    ARTICLE 4

                              COMMENCEMENT OF TERM

         The Commencement Date set forth in Article I shall be delayed and Rent
shall be abated to the extent that Landlord fails: (i) to substantially complete
any improvements to the Premises required to be performed by Landlord under any
separate agreement signed by both parties, or (ii) to deliver possession of the
Premises for any other reason including but not limited to holding over by prior
occupants, except to the extent that Tenant, its contractors, agents or
employees in any way contribute to either such failures. If Landlord so fails
for a thirty (30) day initial grace period, Tenant shall have the right to
terminate this Lease by written notice to Landlord any time thereafter up until
Landlord substantially completes any such improvements and delivers the Premises
to Tenant. Any such delay in the Commencement Date shall not subject Landlord to
liability for loss or damage resulting therefrom, and Tenant's sole recourse
with respect thereto shall be the abatement of Rent and right to terminate this
Lease described above. Upon any such termination, Landlord and Tenant shall be
entirely relieved of their obligations hereunder, and any Security Deposit and
Rent payments shall be returned to Tenant. If the Commencement Date is delayed,
the Expiration Date shall not be similarly extended, unless Landlord shall so
elect (in which case, the parties shall confirm the same in writing). During any
period that Tenant shall be permitted to enter the Premises prior to the
Commencement Date other than to occupy the same (e.g., to perform alterations or
improvements), Tenant shall comply with all terms and provisions of this Lease,
except those provisions requiring the payment of Rent. Tenant shall be permitted
to enter the Premises during the period of Landlord's construction after
Landlord has given Tenant notice that Landlord's Work has been substantially
completed or completed to the point at which Tenant's occupancy will not affect
the completion of Landlord's Work and notwithstanding the fact that Tenant so
enters the Premises or a portion thereof prior to the Commencement Date for the
purpose of occupying the same, Rent shall not commence on such date in the event
Landlord's notice is given to Tenant after January 1, 1997, the Commencement
Date shall be delayed and the Expiration Date shall be extended by the number of
days between January 1, 1997 and the date on which such notice is given to
Tenant.

                                    ARTICLE 5

                              CONDITION OF PREMISES

         Tenant has inspected the Premises, Property, Systems and Equipment (as
defined in Article 25), or has had an opportunity to do so, and agrees to accept
the same "as is" without any agreements, representations, understandings or
obligations on the part of Landlord to perform any alterations, repairs or
improvements except as expressly provided in any separate agreement that may be
signed by the parties.

                                      -4-

<PAGE>

                                    ARTICLE 6

                                  USE AND RULES

         Tenant shall use the Premises for offices and no other purpose
whatsoever, in compliance with all applicable Laws, and without disturbing or
interfering with any other tenant or occupant of the Property. Tenant shall not
use the Premises in any manner so as to cause a cancellation of Landlord's
Insurance policies, or an increase in the premiums thereunder. Tenant shall
comply with all rules set forth in Rider One attached hereto (the "Rules").
Landlord shall have the right to reasonably amend such Rules and supplement the
same with other reasonable Rules (not expressly inconsistent with this Lease)
relating to the Property, or the promotion of safety, care, cleanliness or good
order therein, and all such amendments or new Rules shall be binding upon Tenant
after five (5) days notice thereof to Tenant. All Rules shall be applied on a
non-discriminatory basis, but nothing herein shall be construed to give Tenant
or any other Person (as defined in Article 25) any claim, demand or cause of
action against Landlord arising out of the violation of such Rules by any other
tenant, occupant, or visitor of the property, or out of the enforcement or
waiver of the Rules by Landlord in any particular instance.

                                    ARTICLE 7

                             SERVICES AND UTILITIES

         Landlord shall provide the following services and utilities (the cost
of which shall be included in Operating Expenses unless otherwise stated herein
or in any separate rider hereto):

                                      -5-

<PAGE>

         (A) Electricity for standard office lighting fixtures, and equipment
and accessories customary for offices (up to 280 hours per month) where: (1) the
connected electrical load of all of the same does not exceed an average of 4
watts per square foot of the Premises (or such lesser amount as may be
available, based on the safe and lawful capacity of the existing electrical
circuit(s) and facilities serving the Premises), (2) the electricity will be at
nominal 120 volts, single phase (or 110 volts, depending on available service in
the Building), and (3) the safe and lawful capacity of the existing electrical
circuit(s) serving the Premises is not exceeded.

         (B) Heat and air-conditioning to provide a temperature required, in
Landlord's reasonable opinion and in accordance with applicable Law, for
occupancy of the Premises under normal business operations, from 8:00 a.m. until
6:00 p.m. Monday through Friday, except on Holidays (as defined in Article 25).
Landlord shall not be responsible for inadequate air-conditioning or ventilation
to the extent the same occurs because Tenant uses any item of equipment
consuming more than 500 watts at rated capacity without providing adequate
air-conditioning and ventilation therefor.

         (C) Water for drinking, lavatory and toilet purposes at those points of
supply provided for nonexclusive general use of other tenants at the Property.

         (D) Customary office cleaning and trash removal service Monday through
Friday or Sunday through Thursday in and about the Premises.

         (E) Operatorless passenger elevator service (if the Property has such
equipment serving the Premises) and freight elevator service (if the Property
has such equipment serving the Premises, and subject to scheduling by Landlord)
in common with Landlord and other tenants and their contractors, agents and
visitors.

         (F) Landlord shall seek to provide such extra utilities or services as
Tenant may from time to time request, if the same are reasonable and feasible
for Landlord to provide and do not involve modifications or additions to the
Property or existing Systems and Equipment (as defined in Article 25), and if
Landlord shall receive Tenant's request within a reasonable period prior to the
time such extra utilities or services are required. Landlord may comply with
written or oral requests by any officer or employee of Tenant, unless Tenant
shall notify Landlord of, or Landlord shall request, the names of authorized
individuals (up to 3 for each floor on which the Premises are located) and
procedures for written requests. Tenant shall, for such extra utilities or
services, pay such charges as Landlord shall from time to time reasonably
establish. All charges for such extra utilities or services shall be due at the
same time as the installment of Base Rent with which the same are billed, or if
billed separately, shall be due within twenty (20) days after such billing.

         Landlord may install and operate meters or any other reasonable system
for monitoring or estimating any services or utilities used by Tenant in excess
of those required to be provided by Landlord under this Article (including a
system for Landlord's engineer to reasonably estimate any such excess usage). If
such system indicates such excess services or utilities, Tenant shall pay
Landlord's reasonable charges for installing and operating such system and any
supplementary air-conditioning, ventilation, heat, electrical or other systems
or equipment (or

                                      -6-

<PAGE>

adjustments or modifications to the existing Systems and Equipment), and
Landlord's reasonable charges for such amount of excess services or utilities
used by Tenant.

         Landlord does not warrant that any services or utilities will be free
from shortages, failures, variations, or interruptions caused by repairs,
maintenance, replacements, improvements, alterations, changes of service,
strikes, lockouts, labor controversies, accidents, inability to obtain services,
fuel, steam, water or supplies, governmental requirements or requests, or other
causes beyond Landlord's reasonable control. None of the same shall be deemed an
eviction or disturbance of Tenant's use and possession of the Premises or any
part thereof, or render Landlord liable to Tenant for abatement of Rent, or
relieve Tenant from performance of Tenant's obligations under this Lease.
Landlord in no event shall be liable for damages by reason of loss of profits,
business interruption or other consequential damages. Notwithstanding the
foregoing, if, due to the unavailability of a service or utility by reason other
than casualty, Tenant cannot operate its business from the Premises for ten (10)
business days, then Rent shall abate after such tenth business day until Tenant
is able to operate its business from the Premises.

                                    ARTICLE 8

                              ALTERATIONS AND LIENS

         Tenant shall make no additions, changes, alterations or improvements
(the "Work") to the Premises or the systems and Equipment (as defined in Article
25) pertaining to the Premises without the prior written consent of Landlord.
Landlord may impose reasonable requirements as a condition of such consent
including without limitation the submission of plans and specifications for
Landlord's prior written approval, obtaining necessary permits, posting bonds,
obtaining insurance, prior approval of contractors, subcontractors and
suppliers, prior receipt of copies of all contracts and subcontracts, contractor
and subcontractor lien waivers, affidavits listing all contractors,
subcontractors and suppliers, use of union labor (if Landlord uses union labor),
affidavits from engineers acceptable to Landlord stating that the Work will not
adversely affect the Systems and Equipment or the structure of the Property, and
requirements as to the manner and times in which such Work shall be done. All
Work shall be performed in a good and workmanlike manner and all materials used
shall be of a quality comparable to or better than those in the Premises and
Property and shall be in accordance with plans and specifications and performing
any supervision of the Work. If Landlord consents or supervises, the same shall
not be deemed a warranty as to the adequacy of the design , workmanship or
quality of material, and Landlord hereby expressly disclaims and responsibility
or liability for the same. Landlord shall under no circumstances have any
obligation to repair, maintain or replace any portion of the Work.

         Tenant shall keep the Property and Premises free from any mechanic's,
materialman's or similar liens or other such encumbrances in connection with any
Work on or respecting the Premises not performed by or at the request of
Landlord, and shall indemnify and hold Landlord harmless from and against any
claims, liabilities, judgments, or cost (including attorneys' fees) arising out
of the same or in connection therewith. Tenant shall give Landlord notice at
least twenty (20) days prior to the commencement of any Work on the Premises (or
such additional time as may be necessary under applicable Laws), to afford
Landlord the opportunity of posting

                                      -7-

<PAGE>

and recording appropriate notices of nor responsibility. Tenant shall remove any
such lien or encumbrance by bond or otherwise within thirty (30) days after
written notice by Landlord, and if Tenant shall fail to do so, Landlord may pay
the amount necessary to remove such lien or encumbrance, without being
responsible for investigating the validity thereof. The amount so paid shall be
deemed additional Rent under this Lease payable upon demand, without limitation
as to other remedies available to Landlord under this Lease. Nothing contained
in this Lease shall authorize Tenant to do any act which shall subject
Landlord's title to the Property or Premises to any liens or encumbrances
whether claimed by operation of law or express or implied contract. Any claim to
a lien or encumbrance upon the Property or Premises arising in connection with
any Work on or respecting the Premises not performed by or at the request of
Landlord shall be null and void, or at Landlord's option shall attach only
against Tenant's interest in the Premises and shall in all respects be
subordinate to Landlord's title to the Property and Premises.

                                    ARTICLE 9

                                     REPAIRS

         Except for customary cleaning and trash removal provided by Landlord
under Article 7, and damage covered under Article 10, Tenant shall keep the
Premises in good and sanitary condition, working order and repair (including
without limitation, carpet, wall-covering, doors, plumbing and other fixtures,
equipment, alterations and improvements whether installed by Landlord or
Tenant). In the event that any repairs, maintenance or replacements are
required, Tenant shall promptly arrange for the same either through Landlord for
such reasonable charges as Landlord may from time to time establish, or such
contractors as Landlord generally uses at the Property or such other contractors
as Landlord shall first approve in writing, and in a first class, workmanlike
manner approved by Landlord in advance in writing. If Tenant does not promptly
make such arrangements, Landlord may, but need not, make such repairs,
maintenance and replacements, and the costs paid or incurred by Landlord
therefor shall be reimbursed by Tenant promptly after request by Landlord.
Tenant shall indemnify Landlord and pay for any repairs, maintenance and
replacements to areas of the Property outside the Premises, caused, in whole or
in part, as a result of moving any furniture, fixtures, or other property to or
from the Premises, or by Tenant or its employees, agents, contractors, or
visitors (notwithstanding anything to the contrary contained in this Lease).
Except as provided in the preceding sentence, or for damage covered under
Article 10, Landlord shall keep the common areas of the Property in good and
sanitary condition, working order and repair (the cost of which shall be
included in Operating Expenses, as described in Article 25, except as limited
therein).

                                   ARTICLE 10

                                 CASUALTY DAMAGE

         If the Premises or any common areas of the Property providing access
thereto shall be damaged by fire or other casualty, Landlord shall use available
insurance proceeds to restore the same. Such restoration shall be to
substantially the condition prior to the casualty, except for modifications
required by zoning and building codes and other Laws or by any Holder (as
defined In Article 25), any other modifications to the common areas deemed
desirable by

                                      -8-

<PAGE>

Landlord (provided access to the Premises is not materially impaired), and
except that Landlord shall not be required to repair or replace any of Tenant's
furniture, furnishings, fixtures or equipment, or any alterations or
improvements in excess of any work performed or paid for by Landlord under any
separate agreement signed by the parties in connection herewith. Landlord shall
not be liable for any inconvenience or annoyance to Tenant or its visitors, or
injury to Tenant's business resulting in any way from such damage or the repair
thereof. However, Landlord shall allow Tenant a proportionate abatement of Rent
during the time and to the extent the Premises are unfit for occupancy for the
purposes permitted under this Lease and not occupied by Tenant as a result
thereof. Notwithstanding the foregoing to the contrary, Landlord may elect to
terminate this Lease by notifying Tenant in writing of such termination within
sixty (60) days after the date of damage (such termination notice to include a
termination date providing at least ninety (90) days for Tenant to vacate the
Premises), if the Property shall be materially damaged by Tenant or its
employees or agents, or if the Property shall be damaged by fire or other
casualty or cause such that: (a) repairs to the Premises and access thereto
cannot reasonably be completed within 120 days after the casualty without the
payment of overtime or other premiums, (b) more than 25% of the premises is
affected by the damage, and fewer than 24 months remain in the Term, or any
material damage occurs to the Premises during the last, 12 months of the Term,
(c).any Holder (as defined in Article 25) shall require that the insurance
proceeds or any portions thereof be used to retire the Mortgage debt (or shall
terminate the ground lease, as the case may be), or the damage is not fully
covered Landlord's insurance policies, or (d) the cost of the repairs,
alterations, restoration or improvement work would exceed 25% of the replacement
value of the Building, or the nature of such work would make termination of this
Lease necessary or convenient. Tenant may elect to terminate this Lease by
notifying Landlord in writing of such termination if the Property shall be
damaged by fire or other casualty or cause such that repairs to the Premises and
access thereto cannot reasonably be completed within 120 days after the casualty
or if in fact repairs to the Premises and access thereto are not in fact
completed within 120 days after the casualty, provided Tenant makes such
election within ten (10) days of notice from the Landlord of the estimated date
of completion of such repairs (which notice Landlord shall give not later than
sixty (60) days after the date of such casualty) or within ten (10) days after
the end of such 120-day period if the Premises or such access have not then been
restored, but Tenant's election to terminate shall not be effective in the event
Landlord completes such repairs so that the Premises are usable for Tenant's
purposes and reasonable access thereto is provided within thirty (30) days of
Tenant's election to terminate. Tenant agrees that Landlord's obligation to
restore, and the abatement of Rent provided herein, shall be Tenant's sole
recourse in the event such damage, and waives any other rights Tenant may have
under any applicable Law to terminate the Lease by reason of damage to the
Premises or Property. Tenant acknowledges that this Article represents the
entire agreement between the parties respecting damage to the Premises or
Property.

                                   ARTICLE 11

                  INSURANCE, SUBROGATION, AND WAIVER OF CLAIMS

         Tenant shall maintain during the Term comprehensive (or commercial)
general liability Insurance, with limits of not less than $1,000,000 combined
single limit for personal injury, bodily injury or death, or property damage or
destruction (including loss of use thereof for any one occurrence. Tenant shall
also maintain during the Term worker compensation insurance as

                                      -9-

<PAGE>

required by statute, and primary, noncontributory, "all-risk" property damage
Insurance covering Tenant's personal property, business records, fixtures and
equipment, for damage or other loss caused by fire or other casualty or cause
including, but not limited to, vandalism and malicious mischief, theft, water
damage of any type, including sprinkler leakage, bursting or stoppage of pipes,
explosion, business interruption, and other insurable risks in amounts not less
than the full insurable replacement value of such property and full insurable
value of such other Interests of Tenant (subject to reasonable deductible
amounts). Landlord shall, as part of Operating Expenses, maintain during the
Term comprehensive (or commercial) general liability Insurance, with limits of
not less than $1,000,000 combined single limit for personal injury, bodily
injury or death, or property damage or destruction (including loss of use
thereof) for any one occurrence. Landlord shall also, as part of Operating
Expenses, maintain during the Term worker compensation insurance as required by
statute, and primary, non-contributory, extended coverage or "all-risk" property
damage Insurance. In an amount equal to at least ninety percent (90%) of the
full insurable replacement value of the Property (exclusive of the costs of
excavation, foundations and footings, and such risks required to be covered by
Tenant's insurance, and subject to reasonable deductible amounts), or such other
amount necessary to prevent Landlord from being a co-insured, and such other
coverage as Landlord shall deem appropriate or that may be required by any
Holder (as defined in Article 25).

         Tenant shall provide Landlord with certificates evidencing such
coverage (and, with respect to liability coverage, showing Landlord, Heitman
Properties Ltd. and Heitman Properties of Massachusetts Ltd. as additional
insureds) prior to the Commencement Date, which shall state that such insurance
coverage may not be changed or cancelled without at least twenty (20) days'
prior written notice to Landlord, and shall provide renewal certificates to
Landlord at least twenty (20) days prior to expiration of such policies.
Landlord may periodically, but not more often than every five years, require
that Tenant reasonably increase the aforementioned coverage. Except as provided
to the contrary herein, any insurance carried by Landlord or Tenant shall be for
the sole benefit of the party carrying such insurance. Any insurance policies
hereunder may be "blanket policies." All insurance required hereunder shall be
provided by responsible insurers and Tenant's insurer shall be reasonably
acceptable to Landlord. By this Article, Landlord and Tenant intend that their
respective property loss risks shall be borne by responsible insurance carriers
to the extent above provided, and Landlord and Tenant hereby agree to lock
solely to, and seek recovery only from, their respective insurance carriers. In
the event of a property loss to the extent that such coverage is agreed to be
provided hereunder. The parties each hereby waive all rights and claims against
each other for such losses, and waive all rights of subrogation of their
respective insurers, provided such waiver of subrogation shall not affect the
right of the insured to recover thereunder. The parties agree that their
respective insurance policies are now, or shall be, endorsed such that said
waiver of subrogation shall not affect the right of the insured to recover
thereunder, so long as no material additional premium is charged therefore.

                                   ARTICLE 12

                                  CONDEMNATION

         If the whole or any material part of the Premises or Property shall be
taken by power of eminent domain or condemned by any competent authority for any
public or quasi-public use or purpose, or if any adjacent property or street
shall be so taken or condemned, or reconfigured or

                                      -10-

<PAGE>

vacated by such authority in such manner as to require the use, construction or
remodeling of any part of the Premises or Property, or if Landlord shall grant a
deed or other instrument in lieu of such taking by eminent domain or
condemnation, Landlord shall have the option to terminate this Lease upon ninety
(90) days notice, provided such notice is given no later than 180 days after the
date of such taking, condemnation, configuration, vacation, deed or other
instrument. Tenant shall have reciprocal termination rights if the whole or any
material part of the Premises is permanently taken, or if access to the Premises
is permanently materially impaired. Landlord shall be entitled to receive the
entire award or payment in connection therewith, except that Tenant shall have
the right to file any separate claim available to Tenant for any taking of
Tenant's personal property and fixtures belonging to Tenant and removable by
Tenant upon expiration of the Term, and for moving expenses (so long as such
claim does not diminish the award available to Landlord or any Holder, and such
claim is payable separately to Tenant.) All Rent shall be apportioned as of the
date of such termination, or the date of such taking, whichever shall first
occur. If any part of the Premises shall be taken, and this Lease shall not be
so terminated, the Rent shall be proportionately abated.

                                   ARTICLE 13

                              RETURN OF POSSESSION

         At the expiration or earlier termination of this Lease or Tenant's
right of possession, Tenant shall surrender possession of the Premises in the
condition required under Article 9, ordinary wear and tear, fire and other
casualty excepted, and shall surrender all keys, any key cards, and any parking
stickers or cards, to Landlord, and advise Landlord as to the combination of any
looks or vaults then remaining in the Premises, and shall remove all trade
fixtures and personal property. All improvements, fixtures and other items in or
upon the Premises (except trade fixtures and personal property belonging to
Tenant), whether installed by Tenant or Landlord, shall be Landlord's property
and shall remain upon the Premises, all without compensation, allowance or
credit to Tenant. However, if prior to such termination or within ten (10) days
thereafter Landlord so directs by notice, Tenant shall promptly remove such of
the foregoing items as are designated in such notice and restore the Premises to
the condition prior to the installation of such items; provided, Landlord shall
not require removal of customary office improvements installed pursuant to any
separate agreement signed by both parties in connection with entering this Lease
(except as expressly provided to the contrary therein), or installed by Tenant
with Landlord's written approval (except as expressly required by Landlord in
connection with granting such approval). If Tenant shall fail to perform any
repairs or restoration, or fall to remove any items from the Premises required
hereunder, Landlord may do so, and Tenant shall pay Landlord the cost thereof
upon demand. All property removed from the Premises by Landlord pursuant to any
provisions of this Lease or any law may be handled or stored by Landlord at
Tenant's expense, and Landlord shall in no event be responsible for the value,
preservation or safekeeping thereof. All property not removed from the Premises
or retaken from storage by Tenant within thirty (30) days after expiration or
earlier termination of this Lease or Tenant's right to possession, shall at
Landlord's option be conclusively deemed to have been conveyed by Tenant to
Landlord as if by bill of sale without payment by Landlord. Unless prohibited by
applicable Law, Landlord shall have a lien against such property for the costs
incurred in removing and storing the same.

                                      -11-

<PAGE>

                                   ARTICLE 14

                                  HOLDING OVER

         Unless Landlord expressly agrees otherwise in writing, Tenant shall pay
Landlord 150% of the amount of Rent then applicable (or the highest amount
permitted by Law, whichever shall be less) prorated on per them basis for each
day Tenant shall retain possession of the Premises or any part thereof after
expiration or earlier termination of this Lease, together with all damages
sustained by Landlord on account thereof. The foregoing provisions shall not
serve as permission for Tenant to hold-over, nor serve to extend the Term
(although Tenant shall remain bound to comply, with all provisions of this Lease
until Tenant vacates the Premises, and shall be subject to the provisions of
Article 13). Notwithstanding the foregoing to the contrary, at any time before,
or after expiration or earlier termination of the Lease, Landlord may serve
notice advising Tenant of the amount of Rent and other terms required, should
Tenant desire to enter a month-to-month tenancy (and if Tenant shall hold over
more than one full calendar month after such notice, Tenant shall thereafter be
deemed a month-to-month tenant, on the terms and provisions of this Lease then
in effect, as modified by Landlord's notice, and except that Tenant shall not be
entitled to any renewal or expansion rights contained in this Lease or any
amendments hereto).

                                   ARTICLE 15

                                    NO WAIVER

         No provision of this Lease will be deemed waived by either party unless
expressly waived In writing signed by the waiving party. No waiver shall be
implied by delay or any other act or omission of either party. No waiver by
either party of any provision of this Lease shall be deemed a waiver of such
provision with respect to any subsequent matter relating to such provision, and
Landlord's consent or approval respecting any action by Tenant shall not
constitute a waiver of the requirement for obtaining Landlord's consent or
approval respecting any subsequent action. Acceptance of Rent by Landlord shall
not constitute a waiver of any breach by Tenant of any term or provision of this
Lease. No acceptance of a lesser amount than the Rent herein stipulated shall be
deemed a waiver of Landlord's right to receive the full amount due, nor shall
any endorsement or statement on any check or payment or any letter accompanying
such check or payment be deemed an accord and satisfaction, and Landlord may
accept such check or payment without prejudice to Landlord's right o recover the
full amount due. The acceptance of Rent or of the performance of any other term
or provision from any person other than Tenant, including any Transferee, shall
not constitute a waiver of Landlord's right to approve any transfer.

                                   ARTICLE 16

                         ATTORNEYS' FEES AND JURY TRIAL

         In the event of any litigation between the parties, the prevailing
party shall be entitled to obtain, as part of the judgment, all reasonable
attorneys' fees, costs and expenses incurred in connection with such litigation,
except as may be limited by applicable law. In the interest of

                                      -12-

<PAGE>

obtaining a speedier and less costly hearing of any dispute, the parties hereby
each irrevocably waive the right to trial by jury.

                                   ARTICLE 17

               PERSONAL PROPERTY TAXES, RENT TAXES AND OTHER TAXES

         Tenant shall pay prior to delinquency all taxes, charges or other
governmental impositions assessed against levied upon Tenant's fixtures,
furnishings, equipment and personal property located In the Premises, and any
Work to the Premises under Article 8. Whenever possible, Tenant shall cause all
such items to be assessed and billed separately for the property of Landlord. In
the event any such items shall be assessed and billed with the property of
Landlord, Tenant shall pay Landlord its share of such taxes, charges or other
governmental impositions within thirty (30) days after Landlord delivers a
statement and a copy of the assessment or other documentation showing the amount
of such imposition applicable to Tenant's property. Tenant shall pay any rent
tax or sales tax, service tax, transfer tax or value added tax, any other
applicable tax on the Rent or services herein or otherwise respecting this
Lease.

                                   ARTICLE 18

                              REASONABLE APPROVALS

         Whenever Landlord's approval or consent is expressly required under
this Lease (including Article 21) or any other agreement between the parties,
Landlord shall not unreasonably withhold or delay such approval or consent
(reasonableness shall be a condition to Landlord's enforcement of such consent
or approval requirement, and not a covenant), except for matters affecting the
structure, safety or security of the Property, or the appearance of the Property
from any common or public areas.

                                   ARTICLE 19

               SUBORDINATION, ATTORNMENT AND MORTGAGEE PROTECTION

         This Lease is subject and subordinate to all Mortgages (as defined in
Article 25) now or hereafter placed upon the Property, and all other
encumbrances and matters of public record applicable to the Property. If any
foreclosure proceedings are initiated by any Holder or a deed in lieu is granted
(or if any ground lease is terminated), Tenant agrees, upon written request of
any such Holder or any purchaser at foreclosure sale, to attorn and pay Rent to
such party and to execute and deliver any instruments necessary or appropriate
to evidence or effectuate such attornment (provided such Holder or purchaser
shall agree to accept this Lease and not disturb Tenant's occupancy, so long as
Tenant does not default and fail to cure within the time permitted hereunder).
However, in the event of attornment, no Holder shall be: (i) liable for any act
or omission of Landlord, or subject to any offsets or defenses which Tenant
might have against Landlord (prior to such Holder becoming Landlord under such
attornment), (ii) liable for any security deposit or bound by any prepaid Rent
not actually received by such Holder, or (iii) bound by any future modification
of this Lease not consented to by such Holder. Any Holder (as defined in Article
25) may elect to make this Lease prior to the lien of its Mortgage, by written

                                      -13-

<PAGE>

notice to Tenant, and it the Holder of any prior Mortgage shall require, this
Lease shall be prior to any subordinate Mortgage. Tenant agrees to give any
Holder by certified mail, return receipt requested, a copy of any notice of
default served by Tenant upon Landlord, provided that prior to such notice
Tenant has been notified in writing (by way of service on Tenant of a copy of an
assignment of leases, or otherwise) of the address of such Holder. Tenant
further agrees that if Landlord shall have failed to cure such default within
the times permitted Landlord for cure under this Lease, any such Holder whose
address has been provided to Tenant shall have an additional period of thirty
(30) days in which to cure (or such additional time as may be required due to
causes beyond such Holder's control, including time to obtain possession of the
Property by power of sale or judicial action). Tenant shall execute such
documentation as Landlord may reasonably request from time to time, in order to
confirm the matters set forth in this Article in recordable form.

                                   ARTICLE 20

                              ESTOPPEL CERTIFICATE

         Tenant shall from time to time, within twenty (20) days after written
request from Landlord, execute, acknowledge and deliver a statement (i)
certifying that this Lease is unmodified and in full force and effect or, if
modified, stating the nature of such modification and certifying that this Lease
as so modified, is in full force and effect (or if this Lease is claimed not to
be in force and effect, specifying the ground therefor) and any dates to which
the Rent has been paid in advance, and the amount of any Security Deposit, (ii)
acknowledging that there are not, to Tenants knowledge, any uncured defaults on
the part of Landlord hereunder, or specifying such defaults if any are claimed,
and (iii) certifying such other matters as Landlord may reasonably request, or
as may be requested by Landlord's current or prospective Holders, insurance
carriers, auditors, and prospective purchasers. Any such statement may be relied
upon by any such parties. If Tenant shall fail to execute and return such
statement within the time required herein, Tenant shall be deemed to have agreed
with the matters set forth therein. Landlord shall from time to time, within
twenty (20) days after written request from Tenant, execute, acknowledge and
deliver a statement (i) certifying that this Lease is unmodified and in full
force and effect or, if modified, stating the nature of such modification and
certifying that this Lease as so modified, is in full force and effect (or if
this Lease is claimed not to be in force and effect, specifying the ground
therefor) and any dates to which the Rent has been paid in advance, and the
amount of any Security Deposit, (ii) acknowledging that there are not, to
Landlord's knowledge, any uncured defaults on the part of Tenant hereunder, or
specifying such defaults if any are claimed, and (iii) certifying such other
matters as Tenant may reasonably request.

                                   ARTICLE 21

                            ASSIGNMENT AND SUBLETTING

         (A) TRANSFERS. Tenant shall not without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, as further described
below: (i) assign, mortgage, pledge, hypothecate, encumber, or permit an lien to
attach to, or otherwise transfer, this Lease or any Interest hereunder, by
operation of law or otherwise, (ii) sublet the Promises or any part

                                      -14-

<PAGE>

thereof, or (iii) permit the use of the Premises by any Persons (as defined in
Article 25) other than Tenant and its employees (all of the foregoing are
hereinafter sometimes referred to collectively as "Transfers" and any Person to
whom any Transfer is made or sought to be made is hereinafter sometimes referred
to as a "Transferee"). If Tenant shall desire Landlord's consent to any
Transfer, Tenant shall notify Landlord in writing, which notice shall include:
(a) the proposed effective date (which shall not be less than 30 nor more than
180 days after Tenant's notice), (b) the portion of the Premises to be
Transferred (herein called the "Subject Space"), (c) the terms of the proposed
Transfer and the consideration therefor, the name and address of the proposed
Transferee, and a copy of all documentation pertaining to the proposed Transfer,
and (d) current financial statements of the proposed Transferee certified by an
officer, partner or owner thereof, and any other Information to enable Landlord
to determine the financial responsibility, character, and reputation of the
proposed Transferee, nature of such Transferee's business and proposed use of
the Subject Space, and such other information as landlord may reasonably
require. Notwithstanding the foregoing, no prior written consent of Landlord
shall be necessary with respect to any to any Transfer to an entity controlling,
controlled by or under common control with Tenant or the Transfer to an entity,
which immediately after such Transfer shall have a net worth equal to or greater
than that of Tenant immediately prior to such Transfer, in connection with the
acquisition by such entity of substantially all of the stock or assets of the
Tenant such that the business conducted by the Tenant prior to the Transfer will
be conducted by the acquiring entity; but in the event of any such Transfer with
respect to which no consent is required, Tenant shall, prior to such Transfer,
notify Landlord thereof and provide the information set forth in clauses (a) and
(c) of the immediately preceding sentence. Any Transfer made without complying
with this Article shall, at Landlord's option, be null, void and of no effect,
or shall constitute a Default under this Lease. Whether or not Landlord shall
grant consent, Tenant shall pay $300.00 towards Landlord's review and processing
expenses, as well as any reasonable legal fees incurred by Landlord, within
thirty (30) days after written request by Landlord.

         (B) APPROVAL. Landlord will not unreasonably withhold its consent (as
provided in Article 18) to any proposed Transfer of the Subject Space to the
Transferee on the terms specified in Tenant's notice. The parties hereby agree
that it shall be reasonable under this Lease and under any applicable Law for
Landlord to withhold consent to any proposed Transfer where one or more of the
following applies (without limitation as to other reasonable grounds for
withholding consent): (i) the Transferee is of a character or reputation or
engaged in a business which is not consistent with the quality of the Property,
or would be a significantly less prestigious occupant of the Property than
Tenant, (ii) the Transferee intends to use the Subject Space for purposes which
are not permitted under this Lease, (iii) the Subject Space is not regular in
shape with appropriate means of ingress and egress suitable for normal renting
purposes, (iv) the Transferee is either a government (or agency or
instrumentality thereof) or an occupant of the Property, (v) the proposed
Transferee does not have a reasonable financial condition in relation to the
obligations to be assumed in connection with the Transfer, or (vi) Tenant has
committed and failed to cure a Default at the time Tenant requests consent to
the proposed Transfer.

         (C) TRANSFER PREMIUM. If Landlord consents to a Transfer, and as a
condition thereto which the parties hereby agree is reasonable, Tenant shall pay
Landlord fifty percent (50%) of any Transfer Premium derived by Tenant from such
Transfer. "Transfer Premium"

                                      -15-

<PAGE>

shall mean all rent, additional rent or other consideration paid by such
Transferee in excess of the Rent payable by Tenant under this Lease (on a
monthly basis during the Term, and on a per rentable square foot basis, if less
than all of the Promises is transferred), after deducting the reasonable
expenses incurred by Tenant for any changes, alterations and improvements to the
Premises, any other economic concessions or services provided to the Transferee,
and any customary brokerage commissions paid in connection with the Transfer. If
part of the consideration for such Transfer shall be payable other than in cash,
Landlord's share of such non-cash consideration shall be in such form as is
reasonably satisfactory to Landlord. The percentage of the Transfer Premium due
Landlord hereunder shall be paid within ten (10) days after Tenant receives any
Transfer Premium from the Transferee.

         (D) RECAPTURE. Notwithstanding anything to the contrary contained in
this Article, Landlord shall have the option, by, giving written notice to
Tenant within thirty (30) days after receipt of Tenant's notice of any proposed
Transfer, to recapture the Subject Space. Such recapture notice shall cancel and
terminate this Lease with respect to the Subject Space as of the date stated in
Tenant's notice as the effective date of the proposed Transfer (or at Landlord's
option shall cause the Transfer to be made to Landlord or its agent, in which
case the parties shall execute the Transfer documentation promptly thereafter).
If this Lease shall be cancelled with respect to less than the entire Premises,
the Rent reserved herein shall be prorated on the basis of the number of
rentable square feet retained by Tenant in proportion to the number of rentable
square feet contained in the Premises, this Lease as so amended shall continue
thereafter in full force and effect, and upon request of either party, the
parties shall execute written confirmation of the same.

         (E) TERMS OF CONSENT. If Landlord consent to a Transfer: (a) the terms
and conditions of this Lease, including among other things, Tenant's liability
for the Subject Space, shall in no way be deemed to have been waived or
modified, (b) such consent shall not be deemed consent to any further Transfer
by either Tenant or a Transferee, (c) Tenant shall deliver to Landlord promptly
after execution, an original executed copy of all documentation pertaining to
the Transfer' in form reasonably acceptable to Landlord, and (d) Tenant shall
furnish upon Landlord's request a complete statement, certified by an
independent certified public accountant, or Tenant's chief financial officer,
setting forth in detail the computation of any Transfer Premium Tenant has
derived and shall derive from such Transfer, Landlord or its authorized
representatives shall have the right at all reasonable times to audit the books,
records and papers of Tenant relating to any Transfer and shall have the right
to make copies thereof. If the Transfer Premium respecting any Transfer shall be
found understated, Tenant shall within thirty (30) days after demand pay the
deficiency, and if understated by more than 2%, Tenant shall pay Landlord's
costs of such audit. Any sublease hereunder shall be subordinate and subject to
the provisions of this Lease, and if this Lease shall be terminated during the
term of any sublease, Landlord shall have the right to: (i) treat such sublease
as cancelled and repossess the Subject Space by any lawful means, or (ii)
require that such subtenant attorn to and recognize Landlord as its landlord
under any such sublease. If Tenant shall default and fail to cure within the
time permitted for cure under Article 23(A), Landlord Is hereby Irrevocably
authorized, as Tenant's agent and attorney-in-fact, to direct any Transferee to
make all payments under or In connection with the Transfer directly to Landlord
(which Landlord shall apply towards Tenant's obligations under this Lease) until
such Default is cured.

                                      -16-

<PAGE>

         (F) CERTAIN TRANSFERS. For purposes of this Lease, the term "Transfer"
shall also include (a) If Tenant is a partnership or limited liability company,
the withdrawal or change, voluntary, Involuntary or by operation of law, of a
majority of the partners or members, as the case may be, or a transfer of a
majority of partnership or membership interests, within a twelve month period,
or the dissolution of the partnership or limited liability company, and (b) If
Tenant Is a closely held corporation (i.e., whose stock Is not publicly held and
not traded through an exchange or over the counter), the dissolution, merger,
consolidation or other reorganization of Tenant, or within a twelve month
period: (i) the sale or other transfer of more than an aggregate of 50% of the
voting shares of Tenant (other than to immediate family members by reason of
gift or death) or (ii) the sale, mortgage, hypothecation or pledge of more than
an aggregate of 50% of Tenant's net assets. Notwithstanding any provisions of
this Article 21 to the contrary, however, the term "Transfer" shall not include
a sale of the stock of the corporate successor to the Tenant originally named
herein in connection with a public offering thereof.

                                   ARTICLE 22

                           RIGHTS RESERVED BY LANDLORD

         Except to the extent expressly limited herein, Landlord reserves full
rights to control the Property (which rights may be exercised without subjecting
Landlord to claims for constructive eviction, abatement of Rent, damages or
other claims of any kind), including more particularly, but without limitation,
the following rights:

         (A) To change the name or street address of the Property; install and
maintain signs on the exterior and interior of the Property; retain at all
times, and use in appropriate instances, keys to all doors within and into the
Premises: grant to any Person the right to conduct any business or render any
service at the Property, whether or not it is the same or similar to the use
permitted Tenant by this Lease; and have access for Landlord and other tenants
of the Property to any mail chutes located on the Premises according to the
rules of the United States Postal Service.

         (B) To enter the Promises at reasonable hours for reasonable purposes,
including inspection and supplying cleaning service or other services to be
provided Tenant hereunder, to show the Premises to current and prospective
mortgage lenders, ground lessors, Insurers, and prospective purchasers, tenants
and brokers, at reasonable hours, and if Tenant shall abandon the Premises at
any time, or shall vacate the same during the last 3 months of the Term, to
decorate, remodel, repair, or alter the Premises.

         (C) To limit or prevent access to the Property, shut down elevator
service, activate elevator emergency controls, or otherwise take such action or
preventative measures deemed necessary by Landlord for the safety of tenants or
other occupants of the Property or the protection of the Property and other
property located thereon or therein, in case of fire, invasion, insurrection,
riot, civil disorder, public excitement or other dangerous condition, or threat
thereof.

         (D) To decorate and to make alterations, additions and improvements,
structural or otherwise, in or to the Property or any part thereof, and any
adjacent building, structure, parking

                                      -17-

<PAGE>

facility, land, street or alley (including without limitation changes and
reductions in corridors, lobbies, parking facilities and other public areas and
the installation of kiosks, planters, sculptures, displays, escalators,
mezzanines, and other structures, facilities, amenities and features therein,
and changes for the purpose of connection with or entrance into or use of the
Property in conjunction with any adjoining or adjacent building or buildings,
now existing or hereafter constructed). In connection with such matters, or with
any other repairs, maintenance, improvements or alterations, in or about the
Property, Landlord may erect scaffolding and other structures reasonably
required, and during such operations may enter upon the Premises and take into
and upon or through the Premises, all materials required to make such repairs,
maintenance, alterations or improvements, and may close public entry ways, other
public areas, restrooms, stairways or corridors.

         (E)      Intentionally Omitted.

         In connection with entering the Premises to exercise any of the
foregoing rights, Landlord shall: (a) provide reasonable advance written or oral
notice to Tenant's on-site manager or other appropriate person (except in
emergencies, or for routine cleaning or other routine matters), and (b) take
reasonable steps to minimize any interference with Tenants business.

                                   ARTICLE 23

                               LANDLORD'S REMEDIES

         (A) DEFAULT. The occurrence of any one or more of the following events
shall constitute a "Default" by Tenant, which if not cured within any applicable
time permitted for cure below, shall give rise to Landlord's remedies set forth
Paragraph (B), below: (i) failure by Tenant to make when due any payment of
Rent, unless such failure is cured within ten (10) days after notice; (ii)
failure by Tenant to observe or perform any of the terms or conditions of this
Lease to be observed or performed by Tenant other than the payment of Rent, or
as provided below, unless such failure is cured within thirty (30) days after
notice, or such shorter period expressly provided elsewhere in this Lease
(provided, if the nature of Tenant's failure is such that more time is
reasonably required in order to cure, Tenant shall not be in default if Tenant
commences to cure within such period and thereafter reasonably seeks to cure
such failure to completion); (iii) failure of Tenant to comply with the Rules,
unless such failure is cured within five (5) days after notice (provided, if the
nature of Tenant's failure is such that more than five (5) days time is
reasonably required in order to cure, Tenant shall not be in Default if Tenant
commences to cure within such period and thereafter reasonably seeks to cure
such failure to completion); (iv) (a) making by Tenant or any guarantor of this
Lease ("Guarantor") of any general assignment for the benefit of creditors, (b)
filing by or against Tenant or any Guarantor of a petition to have Tenant or
such Guarantor adjudged a bankrupt or a petition for reorganization or
arrangement under any Law relating to bankruptcy (unless, in the case of a
petition filed against Tenant or such Guarantor, the same is dismissed within
sixty (60) days), (c) appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets located on the Premises or of Tenant's
interest in this Lease where possession is not restored to Tenant within thirty
(30) days, (d) attachment, execution or other judicial seizure of substantially
all of Tenant's assets located on the Premises or of Tenant's interest in this
Lease, (e) Tenant's or any Guarantor's convening of a meeting of its creditors
or any class thereof for the purpose of

                                      -18-

<PAGE>

effecting a moratorium upon or composition of its debts, or (f) Tenants or any
Guarantor's insolvency or admission of an inability to pay its debts as they
mature; (v) any material misrepresentation herein, or material misrepresentation
or omission in any financial statements or other materials provided by Tenant or
any Guarantor in connection with negotiating or entering this Lease UT in
connection with any Transfer under Article 21; (vi) cancellation of any guaranty
of this Lease by any Guarantor; (vii) failure by Tenant to cure within any
applicable times permitted thereunder any default under any other lease for
space at the Property or any other buildings owned or managed by Landlord or its
affiliates, now or hereafter entered, by Tenant (and any Default hereunder not
cured within the times permitted for cure herein shall, at Landlord's election,
constitute a default under any such other lease or leases). Failure by Tenant to
comply with the same term or condition of this Lease on three occasions during
any twelve month period shall cause any failure to comply with such term or
condition during the succeeding twelve month period, at Landlord's option, to
constitute an incurable default, if Landlord has given Tenant notice of each
such failure within ton (10) days after each such failure occurs. The notice and
cure periods provided herein are in lieu of, and not in addition to, any notice
and cure periods provided by Law.

         (B) REMEDIES. If a Default occurs and is not cured within any
applicable time permitted under Paragraph (A), Landlord shall have the rights
and remedies hereinafter set forth, which shall be distinct, separate and
cumulative with and in addition to any other right or remedy allowed under any
Law or other provisions of this Lease:

         (i) Landlord may terminate this Lease, repossess the Premises by
detainer suit, summary proceedings or other lawful means, and recover as damages
a sum of money equal to: (a) any unpaid Rent as of the termination date
including interest at the Default Rate (as defined in Article 25), (b) any
unpaid Rent which would have accrued after the termination date through the time
of award including Interest at the Default Rate, less such loss of Rent that
Tenant proves could have been reasonably avoided, (c) any unpaid Rent which
would have accrued after the time of award during the balance of-the Term, less
such loss of Rent that Tenant proves could be reasonably avoided, and (d) any
other amounts necessary to compensate Landlord for all damages proximately
caused by Tenant's failure to perform its obligations under this Lease,
Including without limitation all Costs of Reletting (as defined in Paragraph F),
for purposes of computing the amount of Rent herein that would have accrued
after the time of award, Tenant's Prorata Share of Taxes and Operating Expenses
shall be projected, based upon the average rate of Increase, if any, in such
Items from the Commencement Date through the time of award.

         (ii) If applicable Law permits, Landlord may terminate Tenant's right
of possession and repossess the Premises by detainer suit, summary proceedings
or other lawful means, without terminating this Lease (and if such Law permits,
and Landlord shall not have expressly terminated the Lease in writing, any
termination shall be deemed a termination of Tenant's right of possession only).
In such event, Landlord may recover: (a) any unpaid Rent as of the date
possession is terminated, including Interest at the Default Rate, (b) any unpaid
Rent which accrues during the Term from the date possession is terminated
through the time of award (or which may have accrued from the time of any
earlier award obtained by Landlord through the time of award), including
Interest at the Default Rate, less any Net Re-Letting proceeds (as defined in
Paragraph F) received by Landlord during such period, and less such loss of Rent
that Tenant proves could have been reasonably avoided, and (c) any other amounts
necessary to

                                      -19-

<PAGE>

compensate Landlord for all damages proximately caused by Tenant's failure to
perform its obligations under this Lease, including without limitation, all
Costs of Reletting (as defined in Paragraph F). Landlord may bring suits for
such amounts or portions thereof, at any time or times as the same accrue for
after the same have accrued, and no suit or recovery of any portion due
hereunder shall be deemed a waiver of Landlord's right to collect all amounts to
which Landlord is entitled hereunder, nor shall the same be deemed a waiver of
Landlord's right to collect all amounts to which Landlord is entitled hereunder,
nor shall the same serve as any defense to any subsequent suit brought for any
amount not theretofore reduced to judgment.

         (C) MITIGATION OF DAMAGES. If Landlord terminates this Lease or
Tenant's right to possession, Landlord shall use reasonable efforts to mitigate
landlord's damages, and Tenant shall be entitled to submit proof of such failure
to mitigate as a defense to Landlord's claims hereunder, if mitigation of
damages by Landlord is required by applicable Law. If Landlord has not
terminated this Lease or Tenant's right to possession, Landlord shall have no
obligation to mitigate, and may permit the Promises to remain vacant or
abandoned; in such case, Tenant may seek to mitigate damages attempting to
sublease the Promises or assign this Lease (subject to Article 21).

         (D) SPECIFIC PERFORMANCE, COLLECTION OF RENT AND ACCELERATION. Landlord
shall at all times have the rights and remedies (which shall be cumulative with
each other and cumulative and in addition to those rights and remedies available
under Paragraph (B), above or any Law or other provision of this Lease), without
prior demand or notice except as required by applicable Law: (i) to seek any
declaratory, injunctive or other equitable relief, and specifically enforce the
Lease, or restrain or enjoin a violation or breach of any provision hereof, and
(ii) to sue for and collect any unpaid Rent which has accrued. Notwithstanding
anything to the contrary contained In this Lease, to the extent not expressly
prohibited by applicable Law, in the event of any Default by Tenant not cured
within any applicable time for cure hereunder, Landlord may terminate this Lease
or Tenant's right to possession and accelerate and declare that all Rent
reserved for the remainder of the Term shall be immediately due and payable (in
which event, Tenant's Prorata Share of Taxes and Operating Expenses for the
remainder of the Term shall be projected based upon the average rate of
increase, if any, in such items from the Commencement Date through the date of
such declaration); provided, Landlord shall, after receiving payment of the same
from Tenant, be obligated to turn over to Tenant any actual Not Re-Letting
Proceeds thereafter received during the remainder of the Term, up to the amount
so received from Tenant pursuant to this provision.

         (E) LATE CHARGES AND INTEREST. Tenant shall pay, as additional Rent, a
service charge of Two Hundred Dollars ($200.00) for bookkeeping and
administrative expenses, if Rent is not received within five (5) days after its
due date. In addition, any Rent paid more than five (5) days after due shall
accrue interest from the due date at the Default Rate (as defined in Article
25), until payment is received by Landlord. Such service charge and interest
payments shall not be deemed consent by Landlord to late payments, nor a waiver
of Landlord's right to insist upon timely payments at any time, nor a waiver of
any remedies to which Landlord is entitled as a result of the late payment of
Rent.

         (F) CERTAIN DEFINITIONS. "Net Re-Letting Proceeds" shall mean the total
amount of rent and other consideration paid by any Replacement Tenants, less all
Costs of Re-Letting,

                                      -20-

<PAGE>

during a given period of time. "Costs of Re-Letting" shall include without
limitation, all reasonable costs and expenses incurred by Landlord for any
repairs, maintenance, changes, alterations and improvements to the Promises,
brokerage commissions, advertising costs, attorneys' fees, any customary free
rent periods or credits, tenant improvement allowances, take-over lease
obligations and other customary, necessary Or appropriate economic incentives
required to enter leases with Replacement Tenants, and costs of collecting rent
from Replacement Tenants. "Replacement Tenants" shall mean any Persons (as
defined in Article 25) to whom Landlord re-lets the Premises or any portion
thereof pursuant to this Article.

         (G) OTHER MATTERS. No re-entry or repossession, repairs, changes,
alterations and additions, relenting, acceptance of keys from Tenant, or any
other action or omission by Landlord shall be construed as an election by
Landlord to terminate this Lease or Tenant's right to possession, or accept a
surrender of the Premises, nor shall the same operate to release the Tenant in
whole or in part from any of Tenant's obligations hereunder, unless express
written, notice of such intention is sent by Landlord or its agent to Tenant. To
the fullest extent permitted by Law, all rent and other consideration paid by
any Replacement Tenants shall be applied: first, to the Costs of Re-Letting,
second, to the payment of any Rent theretofore accrued, and the residue, if any,
shall be held by Landlord and applied to the payment of other obligations of
Tenant to Landlord as the same become due (with any remaining residue to be
retained by Landlord). Rent shall be paid without any prior demand or notice
therefor (except as expressly provided herein) and without any deduction,
set-off or counterclaim, or relief from any valuation or appraisement laws.
Landlord may apply payments received from Tenant to any obligations of Tenant
then accrued, without regard to such obligations as may be designated by Tenant.
Landlord shall be under no obligation to observe or perform any provision of
this Lease on its part to be observed or performed which accrue after the date
of any Default by Tenant hereunder not cured within the times permitted
hereunder. The times set forth herein for the curing of Defaults by Tenant are
of the essence of this Lease. Tenant hereby irrevocably waives any right
otherwise available under any Law to redeem or reinstate this Lease.

                                   ARTICLE 24

                            LANDLORD'S RIGHT TO CURE

         If Landlord shall fail to perform any term or provision under this
Lease required to be performed by Landlord, Landlord shall not be deemed to be
in default hereunder nor subject to any claims for damages of any kind, unless
such failure shall have continued for a period of thirty (30) days after written
notice thereof by Tenant; provided, if the nature of Landlord's failure is such
that more than thirty (30) days are reasonably required in order to cure,
Landlord shall not be in default if Landlord commences to cure such failure
within such thirty (30) day period, and thereafter reasonably seeks to cure such
failure to completion. The aforementioned periods of time permitted for Landlord
to cure shall be extended for any period of time during which Landlord is
delayed in, or prevented from, curing due to fire or other casualty, strikes,
lock-outs or other labor troubles, shortages of equipment or materials,
governmental requirements, power shortages or outages, acts or omissions by
Tenant or other Persons, and other causes beyond Landlord's reasonable control.
If Landlord shall fail to cure within the times permitted for cure herein,
Landlord shall be subject to such remedies as may be available to Tenant
(subject to the other provisions of this Lease); provided, in recognition that
Landlord

                                      -21-

<PAGE>

must receive timely payments of Rent and operate the Property, Tenant shall have
no right of self-help to perform repairs or any other obligation of Landlord,
and shall have no right to withhold, set-off, or, except as hereinafter
specifically provided, abate Rent. Notwithstanding the foregoing, if, due to a
failure to perform, Tenant cannot operate its business from the Premises for ten
(10) business days, then Rent shall abate for the period Tenant is unable to
operate its business from the Premises.

                                   ARTICLE 25

                     CAPTIONS, DEFINITIONS AND SEVERABILITY

         The captions of the Articles and Paragraphs of this Lease are for
convenience of reference only and shall not be considered or referred to in
resolving questions of interpretation. If any term or provision of this Lease
shall be found invalid, void, illegal, or unenforceable with respect to any
particular Person by a court of competent jurisdiction, it shall not affect,
impair or invalidate any other terms or provisions hereof, or its enforceability
with respect to any other Person, the parties hereto agreeing that they would
have entered into the remaining portion of this Lease notwithstanding the
emission of the portion or portions adjudged invalid, void, illegal, or
unenforceable with respect to such Person.

         (A) "Building" shall mean the structure identified in Article I of this
Lease.

         (B)      Intentionally Omitted.

         (C) "Default Rate" shall mean fifteen percent (15%) per annum, or the
highest rate permitted by applicable Law, whichever shall be less.
         (D) "Holder" shall mean the holder of any Mortgage at the time in
question, and where such Mortgage is a ground lease, such term shall refer to
the ground lessor.

         (E) "Holidays" shall mean all federally observed holidays, including
New Year's Day, President's Day, Memorial Day, Independence Day, Labor Day,
Veterans' Day, Thanksgiving Day, Christmas Day, and to the extent of utilities
or services provided by union members engaged at the Property, such other
holidays observed by such unions.

         (F) "Landlord" and "Tenant" shall be applicable to one or more Persons
as the case may be, and the singular shall include the plural, and the neuter
shall include the masculine and feminine, and if there be more than one, the
obligations thereof shall be joint and several. For purposes of any provisions
indemnifying or limiting the liability of Landlord, the term "Landlord" shall
include Landlord's present and future partners, beneficiaries, trustees,
officers, directors, employees, shareholders, principals, agents, affiliates,
successors and assigns.

         (G) "Law" shall mean all federal, state, county and local governmental
and municipal laws, statutes, ordinances, rules, regulations, codes, decrees,
orders and other such requirements, applicable equitable remedies and decisions
by courts in cases where such decisions are considered binding precedents in the
state in which the Property is located, and decisions of federal courts applying
the Laws of such State.

         (H) "Mortgage" shall mean all mortgages, deeds of trust, ground leases
and other such encumbrances now or hereafter placed upon the Property or
Building, or any part thereof, and all renewals, modifications, consolidations,
replacements or extensions thereof, and all indebtedness now or hereafter
secured thereby and all interest thereon.

         (I) "Operating Expenses" shall mean all expenses, costs and amounts
(other than Taxes) of every kind and nature which Landlord shall pay during any
calendar year any portion of which occurs during the Term, because of or in
connection with the ownership, management, repair, maintenance, restoration and
operation of the Property, including without limitation, any amounts paid for:
(a) utilities for the Property, including but not limited to electricity, power,
gas, steam, oil or other fuel, water, sewer, lighting, heating, air conditioning
and ventilating, (b) permits, licenses and certificates necessary to operate,
manage and lease the Property, (c) insurance applicable to the Property, not
limited to the amount of coverage Landlord is required to provide under this
Lease, (d) supplies, tools, equipment and materials used in the operation,
repair and maintenance of the Property, (e) accounting, legal, inspection,
consulting, concierge and other services, (f) any equipment rental (or
installment equipment purchase or equipment financing agreements), or management
agreements (including the cost of any management fee actually paid thereunder
and the fair rental value of any office space provided thereunder, up to
customary and reasonable amounts), (g) wages, salaries and other compensation
and benefits (including the fair value of any parking privileges provided) for
all persons engaged in the

                                      -22-

<PAGE>

operation, maintenance or security of the Property, and employees Social
Security taxes, unemployment taxes or insurance, and any other taxes which may
be levied on such wages, salaries, compensation and benefits, (h) payments under
any easement, operating agreement, declaration, restrictive covenant, or
instrument pertaining to the sharing of costs in any planned development, and
(i) operation, repair, and maintenance of all Systems and Equipment and
components thereof (including replacement of components), janitorial service,
alarm and security service, window cleaning, trash removal, elevator
maintenance, cleaning of walks, parking facilities and building walls, removal
of ice and snow, replacement of wall and floor coverings, ceiling tiles and
fixtures in lobbies, corridors, restrooms and other common or public areas or
facilities, maintenance and replacement of shrubs, trees, grass, sod and other
landscaped items, irrigation systems, drainage facilities, fences, curbs, and
walkways, re-paving and re-striping parking facilities, and roof repairs. If the
Property is not fully occupied during all or a portion of any calendar year,
Landlord may, in accordance with sound accounting and management practices,
determine the amount of variable Operating Expenses for such year. If Landlord
makes such an adjustment, Landlord shall make a comparable adjustment for the
Base Expense Year. Notwithstanding the foregoing, Operating Expenses shall not,
however, include:

         (i) depreciation, interest and amortization on Mortgages, and other
debt costs or ground lease payments, if any: legal fees in connection with
leasing, tenant disputes or enforcement of leases; real estate brokers' leasing
commissions; improvements or alterations to tenant spaces; the cost of providing
any service directly to and paid directly by, any tenant; any costs expressly
excluded from Operating Expenses elsewhere in this Lease; costs of any items to
the extent Landlord receives reimbursement from insurance proceeds or from a
third party (such proceeds to be deducted from Operating Expenses in the year in
which received); and

         (ii) capital expenditures, except those: (a) made primarily to reduce
Operating Expenses, or to comply with any Laws or other governmental
requirements, or (b) for replacements (as opposed to additions or new
improvements) of non-structural items located in the common areas of the
Property required to keep such areas in good condition; provided, all such
permitted capital expenditures (together with reasonable financing charges)
shall be amortized for purposes of this Lease over the shorter of: (i) their
useful lives, or (ii) the period during which the reasonably estimated savings
in Operating Expenses equals the expenditures.

         (J) "Person" shall mean an individual, trust, partnership, joint
venture, association, corporation, and any other entity.

         (K) "Property" shall mean the Building, and any common or public areas
or Facilities, easements, corridors, lobbies, sidewalks, loading areas,
driveways, landscaped areas, skywalks, parking garages and lots, and any and all
other structures or facilities operated or maintained in connection with or for
the benefit of the Building, and all parcels or tracts of land on which all or
any portion of the Building or any of the other foregoing items are located, and
any fixtures, machinery, equipment, apparatus, Systems and Equipment, furniture
and other personal property located thereon or therein and used in connection
therewith, whether title is held by Landlord or its affiliates. Possession of
areas necessary for utilities, services, safety and operation of the Property,
including the Systems and Equipment (as defined in Article 25), fire stairways,
perimeter walls, space between the finished ceiling of the Premises and the slab
of the floor or roof of the Property thereabove, and the use thereof together
with the right to install, maintain,

                                      -23-

<PAGE>

operate, repair and replace the Systems and Equipment, including any of the same
in, through, under or above the Premises in locations that will not materially
interfere with Tenant's use of the Premises, are hereby excepted and reserved by
Landlord, and not demised to Tenant. If the Building shall be part of a complex,
development or group of buildings or structures collectively owned or managed by
Landlord or its affiliates or collectively managed by Landlord's managing agent,
the Property shall, at Landlord's option also be deemed to include such other of
those buildings or structures as Landlord shall from time to time designate, and
shall initially include such buildings and structures (and related facilities
and parcels on which the same are located) as Landlord shall have incorporated
by reference to the total square footage of the Property in Article 1.

         (L) "Rent" shall have the meaning specified therefor in Article 3(G).

         (M) "Systems and Equipment" shall mean any plant, machinery,
transformers, duct work, cable, wires, and other equipment, facilities, and
systems designed to supply heat, ventilation, air conditioning and humidity or
any other services or utilities, or comprising or serving as any component or
portion of the electrical, gas, steam, plumbing, sprinkler, communications,
alarm, security, or fire/life/safety systems or equipment, or any other
mechanical, electrical, electronic, computer or other systems or equipment for
the Property.

         (N) "Taxes" shall mean all federal, state, county, or local
governmental or municipal taxes, fees, charges or other impositions of every
kind and nature, whether general, special, ordinary or extraordinary (including
without limitation, real estate taxes, general and special assessments, transit
taxes, water and sewer rents, taxes based upon the receipt of rent including
gross receipts or sales taxes applicable to the receipt of rent or service or
value added taxes (unless required to be paid by Tenant under Article 17),
personal property taxes imposed upon the fixtures, machinery, equipment,
apparatus, Systems and Equipment, appurtenances, furniture and other personal
property used in connection with the Property which Landlord shall pay during
any calendar year, any portion of which occurs during the Term (without regard
to any different fiscal year used by such government or municipal authority)
because of or in connection with the ownership, leasing and operation of the
Property. Notwithstanding the foregoing, there shall be excluded from Taxes all
excess profits taxes, franchise taxes, gift taxes, capital stock taxes,
inheritance and succession taxes, estate taxes, federal and state income taxes,
and other taxes to the extent applicable to Landlord's general or net income (as
opposed to rents, receipts or income attributable to operations at the
Property). If the method of taxation of real estate prevailing at the time of
execution hereof shall be, or has been altered, so as to cause the whole or any
part of the taxes now, hereafter or heretofore levied, assessed or imposed on
real estate to be levied, assessed or imposed on Landlord, wholly or partially,
as a capital levy or otherwise, or on or measured by the rents received
therefrom, then such new or altered taxes attributable to the Property shall be
included within the term "Taxes," except that the same shall not include any
enhancement of said tax attributable to other income of Landlord. Any expenses
incurred by Landlord in attempting to protest, reduce or minimize Taxes shall be
included in Taxes in the calendar year such expenses are paid. Tax refunds shall
be deducted from Taxes in the year they are received by Landlord, but if such
refund shall relate to taxes paid in a prior year of the Term, and the Lease
shall have expired, Landlord shall mail Tenant's Prorata Share of such net
refund (after deducting expenses and attorneys' fees), up to the amount Tenant
paid towards Taxes during such year, to Tenant's last known address. If Taxes
for the Base Tax Year are

                                      -24-

<PAGE>

reduced as the result of protest, or by means of agreement, or as the result of
legal proceedings or otherwise, Landlord may adjust Tenants obligations for
Taxes in all years following the Tax Base Year, and Tenant shall pay Landlord
within 30 days after notice any additional amount required by such adjustment
for any such years or portions thereof that have theretofor occurred. If Taxes
for any period during the Term or any extension thereof, shall be increased
after payment thereof by Landlord, for any reason including without limitation
error or reassessment by applicable governmental or municipal authorities,
Tenant shall pay Landlord upon demand Tenant's Prorata Share of such increased
Taxes. Tenant shall pay increased Taxes whether Taxes are increased as a result
of increase in the assessments or valuation of the Property (whether based on a
sale, change in ownership or refinancing of the Property or otherwise), increase
in the tax rates, reduction or elimination of any rollbacks or other deductions
available under current law, scheduled reductions of any tax abatement, as a
result of the elimination, invalidity or withdrawal of any tax abatement, or for
any other cause whatsoever.

         (O) "Tenant's Prorata Share" of Taxes and Operating Expenses shall be
the rentable area of the Premises divided by the rentable area of the Property
on the last day of the calendar year for which Taxes or Operating Expenses are
being determined, excluding any parking facilities. Tenant acknowledges that the
"rentable area of the Premise" under this Lease includes the usable area,
without deduction for columns or projections, multiplied by a load or conversion
factor, to reflect a share of certain areas, which may include lobbies,
corridors, mechanical, utility, janitorial, boiler and service rooms and
closets, restrooms, and other public, common and service areas. Except as
provided expressly to the contrary herein, the "rentable area of the Property"
shall include all rentable area of all space leased or available for lease at
the Property, which Landlord may reasonably re-determine from time to time, to
reflect re-configurations, additions or modifications to the Property. If the
Property or any development of which it is a part, shall contain non-office
uses, Landlord shall have the right to determine in accordance with sound
accounting and management principles, Tenant's Prorata Share of Taxes and
Operating Expenses for only the office portion of the Property or of such
development, in which event, Tenant's Prorata Share shall be based on the ratio
of the rentable area of the Premises to the rentable area of such office
portion. Similarly, if the Property shall contain tenants who do not participate
in all or certain categories of Taxes or Operating Expenses on a prorata basis,
Landlord may exclude the amount of Taxes or Operating Expenses, or such
categories of the same, as the case may be, attributable to such tenants, and
exclude the rentable area of their premises, in computing Tenant's Prorata
Share. If the Property shall be part of or shall include a complex, development
or group of buildings or structures collectively owned or managed by Landlord or
its affiliates or collectively managed by Landlord's managing agent, Landlord
may allocate Taxes and Operating Expenses within such complex, development or
group, and between such buildings and structures and the parcels on which they
are located, in accordance with sound accounting and management principles. In
the alternative, Landlord shall have the right to determine, in accordance with
sound accounting and management principles, Tenant's Prorata Share of Taxes and
Operating Expenses based upon the totals of each of the same for all such
buildings and structures, the land constituting parcels on which the same are
located, and all related facilities, including common areas and easements,
corridors, lobbies, sidewalks, elevators, loading areas, parking facilities and
driveways and other appurtenances and public areas, in which event Tenant's
Prorata Share shall be based on the ratio of the rentable area of the Premises
to the rentable area of all such buildings.

                                      -25-

<PAGE>

                                   ARTICLE 26

                      CONVEYANCE BY LANDLORD AND LIABILITY

         In case Landlord or any successor owner of the Property or the Building
shall convey or otherwise dispose of any portion thereof in which the Premises
are located, to another Person (and nothing herein shall be construed to
restrict or prevent such conveyance or disposition), such other Person shall
thereupon be and become landlord hereunder and shall be deemed to have fully
assumed and be liable for all obligations of this Lease to be performed by
Landlord which first arise after the date of conveyance, including the return of
any Security Deposit, and Tenant shall attorn to such other Person, and Landlord
or such successor owner shall, from and after the date of conveyance, be free of
all liabilities and obligations hereunder not then incurred, The liability of
Landlord to Tenant for any default by Landlord under this Lease or arising in
connection herewith or with Landlord's operation, management, leasing, repair,
renovation, alteration, or any other matter relating to the Property or the
Premises, shall be limited to the interest of Landlord in the Property (and the
rental proceeds thereof). Tenant agrees to look solely to Landlord's interest in
the Property (and the rental proceeds thereof) for the recovery of any judgment
against Landlord, and Landlord shall not be personally liable for any such
judgment or deficiency after execution thereon. The limitations of liability
contained in this Article shall apply equally and inure to the benefit of
Landlord's present and future partners, beneficiaries, officers, directors,
trustees, shareholders, agents and employees, and their respective partners,
heirs, successors and assigns. Under no circumstances shall any present or
future general or limited partner of Landlord (if Landlord is a partnership), or
trustee or beneficiary (if Landlord or any partner of Landlord is a trust) have
any liability for the performance of Landlord's obligations under this Lease.
Notwithstanding the foregoing to the contrary, Landlord shall have personal
liability for insured claims, beyond Landlord's interest in the Property (and
rental proceeds thereof), to the extent of Landlord's liability insurance
coverage available for such claims.

                                   ARTICLE 27

                                 INDEMNIFICATION

         Except to the extent arising from the intentional or grossly negligent
acts of Landlord or Landlord's agents or employees, Tenant shall defend,
indemnify and hold harmless Landlord from and against any and all claims,
demands, liabilities, damages, judgments, orders, decrees, actions, proceedings,
fines, penalties, costs and expenses, including without limitation, court costs
and attorneys' fees arising from or relating to any loss of life, damage or
injury to person, property or business occurring in or from the Premises, or
caused by or in connection with any violation of this Lease or use of the
Premises or Property by, or any other act or omission of, Tenant, any other
occupant of the Premises, or any of their respective agents, employees,
contractors or guests. Without limiting the generality of the foregoing, Tenant
specifically acknowledges that the indemnity undertaking herein shall apply to
claims in connection with or arising out of any "Work" as described in Article
8, the installation, maintenance, use or removal of any "Lines" located in or
serving the Premises as described in Article 29, and the transportation, use,
storage, maintenance, generation, manufacturing, handling, disposal, release or
discharge of any "Hazardous Material" as described in Article 30 (whether or not
any of such

                                      -26-

<PAGE>

matters shall have been theretofore approved by Landlord), except to the extent
that any of the same arises from the intentional or grossly negligent acts of
Landlord or Landlord's agents or employees.

                                   ARTICLE 28

               SAFETY AND SECURITY DEVICES, SERVICES AND PROGRAMS

         The parties acknowledge that safety and security devices, services and
programs provided by Landlord, if any, while intended to deter crime and ensure
safety, may not in given instances prevent theft or other criminal acts, or
ensure safety of persons or property. The risk that any safety or security
device, service or program may not be effective, or may malfunction, or be
circumvented by a criminal, is assumed by Tenant with respect to Tenant's
property and interests, and Tenant shall obtain insurance coverage to the extent
Tenant desires protection against such criminal acts and other losses, as
further described in Article 11. Tenant agrees to cooperate in any reasonable
safety or security program developed by Landlord or required by Law.

                                   ARTICLE 29

                        COMMUNICATIONS AND COMPUTER LINES

         Tenant may install, maintain, replace, remove or use any communications
or computer wires, cables and related devices (collectively the "Lines") at the
Property in or serving the Premises, provided: (a) Tenant shall obtain
Landlord's prior written consent, use an experienced and qualified contractor
approved in writing by Landlord, and comply with all of the other provisions of
Article 8, (b) any such installation, maintenance, replacement, removal or use
shall comply with all Laws applicable thereto and good work practices, and shall
not interfere with the use of any then existing Lines at the Property, (c) an
acceptable number of spare Lines and space for additional Lines shall be
maintained for existing and future occupants of the Property, as determined in
Landlord's reasonable opinion, (d) if Tenant at any time uses any equipment that
may create an electromagnetic field exceeding the normal insulation ratings of
ordinary twisted pair riser cable or cause radiation higher than normal
background radiation, the Lines therefor (including riser cables) shall be
appropriately insulated to prevent such excessive electromagnetic fields or
radiation, (e) as a condition to permitting the installation of new Lines,
Landlord may require that Tenant remove existing Lines located in or serving the
Promises, (f) Tenants rights shall be subject to the rights of any regulated
telephone company, and (g) Tenant shall pay all costs in connection therewith.
Landlord reserves the right to require that Tenant remove any Lines located in
or serving the Premises which are installed In violation of these provisions, or
which are at any time in violation of any Laws or represent a dangerous or
potentially dangerous condition (whether such Lines were installed by Tenant or
any other party), within three (3) days after written notice.

         Landlord may (but shall not have the obligation to): (1) install new
Lines at the Property (11) create additional space for Lines at the Property,
and (111) reasonably direct, monitor and/or supervise the installation,
maintenance, replacement and removal of, the allocation and periodic
re-allocation of available space (if any) for, and the allocation of excess
capacity (if any) on, any

                                      -27-

<PAGE>

Lines now or hereafter installed at the Property by Landlord, Tenant or any
other party (but Landlord shall have no right to monitor or control the
information transmitted through such Lines). Such rights shall not be in
limitation of other rights that may be available to Landlord by Law or
otherwise. If Landlord exercises any such rights, Landlord may charge Tenant for
the costs attributable to Tenant, or may Include those costs and all other costs
in operating Expenses under Article 25 (including without limitation, costs for
acquiring and installing Lines and risers to accommodate new Lines and spare
Lines, any associated computerized system and software for maintaining records
of Line connections, and the fees of any consulting engineers and other
experts); provided, any capital expenditures included in Operating Expenses
hereunder shall be amortized (together with reasonable finance charges) over the
period of time prescribed by Article 25.

         Notwithstanding anything to the contrary contained in Article 13,
Landlord reserves the right to require that Tenant remove any or all Lines
installed by or for Tenant within or serving the Promises upon termination of
this Lease, provided Landlord notifies Tenant prior to or within thirty (30)
days following such termination. Any Lines not required to be removed pursuant
to this Article shall, at Landlord's option, become the property of Landlord
(without payment by Landlord). If Tenant falls to remove such Lines as required
by Landlord, or violates any other provision of this Article, Landlord may,
after twenty (20) days written notice to Tenant, remove such Lines or remedy
such other violation, at Tenant's expense (without limiting Landlord's other
remedies available under this Lease or applicable Law), Tenant shall not,
without the prior written consent of Landlord in each instance, grant to any
third party a security interest or lien in or on the Lines, and any such
security interest or lien granted without Landlord's written consent shall be
null and void. Except to the extent arising from the intentional or negligent
acts of Landlord or Landlord's agents or employees, Landlord shall have no
liability or damages arising from, and Landlord does not warrant that the
Tenant's use of any Lines will be free from the following collectively called
"Line Problems"): (x) any eavesdropping or wire-tapping by unauthorized parties,
(y) any failure of any .Lines to satisfy Tenant's requirements, or (z) any
shortages, failures, variations, interruptions, disconnections, loss or damage
caused by the installation, maintenance, replacement, use or removal of Lines by
or for other tenants or occupants at the Property, by any failure of the
environmental conditions or the power supply for the Property to conform to any
requirements for the Lines or any associated equipment, or any other problems
associated with any Lines by any other cause. Under no circumstances shall any
Line Problems be deemed an actual or constructive eviction of Tenant, render
Landlord liable to Tenant for abatement of Rent, or relive Tenant from
performance of Tenant's obligations under this Lease. Landlord in no event shall
be liable for damages by reason of loss of profits, business interruption or
other consequential damage arising from any Line Problems.

                                   ARTICLE 30

                               HAZARDOUS MATERIALS

         Tenant shall not transport, use, store, maintain, generate,
manufacture, handle, dispose, release or discharge any "Hazardous Material" (as
defined below) upon or about the Property, or permit Tenant's employees, agents,
contractor and other occupants of the Premises to engage in such activities upon
or about the Property. However, the foregoing provisions shall not prohibit the
transportation to and from, and use, storage, maintenance and handling within,
the Premises of

                                      -28-

<PAGE>

substances customarily used in offices (or such other business or activity
expressly permitted to be undertaken in the Premises under Article 6), provided:
(a) such substances shall be used and maintained only in such quantities as are
reasonably necessary for such permitted use of the Premises, strictly in
accordance with applicable Law and the manufacturers' instructions therefor, (b)
such substances shall not be disposed of, released or discharged on the
Property, and shall be transported to and from the Premises in compliance with
all applicable Laws, and as Landlord shall reasonably require, (c) if any
applicable Law or Landlord's trash removal contractor requires that any such
substances be disposed of separately from ordinary trash, Tenant shall make
arrangements at Tenant's expense for such disposal directly with a qualified and
licensed disposal company at a lawful disposal site (subject to scheduling and
approval by Landlord), and shall ensure that disposal occurs frequently enough
to prevent unnecessary storage of such substances in the Premises, and (d) any
remaining such substances shall be completely, properly and lawfully removed
from the Property upon expiration or earlier termination of this Lease.

         Tenant shall promptly notify Landlord of: (i) any enforcement, cleanup
or other regulatory action taken or threatened by any governmental or regulatory
authority with respect to the presence of any Hazardous Material on the Premises
or the migration thereof from or to other property, (ii) any demands or claims
made or threatened by any party against Tenant or the Premises relating to any
loss or injury resulting from any Hazardous Material, (iii) any release,
discharge or nonroutine, improper or unlawful disposal or transportation of any
Hazardous Material on or from the Premises, and (iv) any matters where Tenant is
required by Law to give a notice to any governmental or regulatory authority
respecting any Hazardous Material on the Premises. Landlord shall have the right
(but not the obligation) to join and participate as a party in any legal
proceedings or actions affecting the Premises initiated in connection with any
environmental, health or safety Law. At such times as Landlord may reasonably
request, Tenant shall provide Landlord with a written list identifying any
Hazardous Material then used, stored, or maintained upon the Premises, the use
and approximate quantity of each such material, a copy of any material safety
data sheet ("MSDS") issued by the manufacturer therefor, written information
concerning the removal, transportation and disposal of the same, and such other
information as Landlord may reasonably require or as may be required by Law. The
term "Hazardous Material" for purposes hereof shall mean any chemical,
substance, material or waste or component thereof which is now or hereafter
listed, defined or regulated as a hazardous or toxic chemical, substance,
material or waste or component thereof by any federal, state or local governing
or regulatory body having jurisdiction, or which would trigger any employee or
community "right-to-know" requirements adopted by any such body, or for which
any such body has adopted any requirements for the preparation or distribution
of an MSDS.

         If any Hazardous Material is released, discharged or disposed of by
Tenant or any other occupant of the Premises, or their employees, agents or
contractors, on or about the Property in violation of the foregoing provisions,
Tenant shall immediately, properly and in compliance with applicable Laws clean
up and remove the Hazardous Material from the Property and any other affected
property and clean or replace any affected personal property (whether or not
owned by Landlord), at Tenant's expense. Such clean up and removal work shall be
subject to Landlord's prior written approval (except in emergencies), and shall
include, without limitation, any testing, investigation, and the preparation and
implementation of any remedial action plan required by any governmental body
having jurisdiction or reasonably required by Landlord. If Tenant shall fall to
comply with the provisions of this Article within five (5) days after written
notice by

                                      -29-

<PAGE>

Landlord, or such shorter time as may be required by Law or in order to minimize
any hazard to persons or property, Landlord may (but shall not be obligated to)
arrange for such compliance directly or as Tenants agent through contractors or
other parties selected by Landlord, at Tenant's expense (without limiting
Landlord's other remedies under this Lease or applicable Law). If any Hazardous
Material is released, discharged or disposed of on or about the Property and
such release, discharge or disposal is not caused by Tenant or other occupants
of the Premises, or their employees, agents or contractors, such release,
discharge or disposal shall be deemed casualty damage under Article 10 to the
extent that the Premises or common area is serving the Premises are affected
thereby; in such case, Landlord and Tenant shall have the obligations and rights
respecting such casualty damage provided under Article 10.

                                   ARTICLE 31

                                  MISCELLANEOUS

         (A) Each of the terms and provisions of this Lease shall be binding
upon and inure to the benefit of the parties hereto, their respective heirs,
executors, administrators, guardians, custodians, successors and assigns,
subject to the provisions of Article 21 respecting Transfers.

         (B) This Lease shall not be recorded by Tenant. However, at Tenant's
request, Landlord will execute a short form of lease, in recordable form and
acceptable to Landlord, sufficient to give notice to third parties of this
Lease, the term thereof and the option hereunder.

         (C) This Lease shall be construed in accordance with the Laws of the
state in which the Property is located.

         (D) All obligations or rights of either party arising during or
attributable to the period ending upon expiration earlier termination of this
Lease shall survive such expiration or earlier termination.

         (E) Landlord agrees that, if Tenant timely pays the Rent and performs
the terms and provisions hereunder and subject to all other terms and provisions
of this Lease, Tenant shall hold and enjoy the Premises during the Term, free of
lawful claims by any Person acting by or through Landlord.

         (F) This Lease does not grant any legal rights to "light and air"
outside the Premises nor any particular view or cityscape visible from the
Premises.

         (G) If the Commencement Date is delayed in accordance with Article 4
for more than one year, Landlord may declare this Lease null and void, and if
the Commencement Date is so delayed for more than seven years, this Lease shall
thereupon become null and void without further action by either party.

                                   ARTICLE 32

                                      OFFER

The submission and negotiation of this Lease shall not be deemed an offer to
enter the same by Landlord, but the solicitation of such an offer by Tenant.
Tenant agrees that its execution of this Lease constitutes a firm offer to enter
the same which may not be withdrawn for a period of 30 days after delivery to
Landlord (or such other period as may be expressly provided in any other
agreement signed by the parties). During such period and in reliance on the
foregoing, Landlord may, at Landlord's option (and shall, if required by
applicable Law), deposit any security deposit and Rent, and proceed with any
plans, specifications, alterations or improvements, and permit Tenant to enter
the Premises, but such acts shall not be deemed an acceptance of Tenant's offer
to enter this Lease, and such acceptance shall be evidenced only by Landlord
signing and delivering this Lease to Tenant.

                                      -30-

<PAGE>

                                   ARTICLE 33

                                     NOTICES

         Except as expressly provided to the contrary in this Lease, every
notice or other communication to be given by either party to the other with
respect hereto or to the Premises or Property, shall be in writing and shall not
be effective for any purpose unless the same shall be served personally or by
national air courier service, or United States certified mail, return receipt
requested, postage prepaid, addressed, if to Tenant, at the address first set
forth in the Lease, until the Commencement Date, and thereafter to the Tenant at
the Premises, and if to Landlord, at the address at which the last payment of
Rent was required to be made and to JMB Realty Corporation at 900 North Michigan
Avenue, Chicago, Illinois, 60611, Attn: Legal Department, or such other address
or addresses as Tenant or Landlord may from time to time designate by notice
given as above provided. Every notice or other communication hereunder shall be
deemed to have been given as of the third business day following the date of
such mailing (or as of any earlier date evidenced by a receipt from such
national air courier service or the United States Postal Service) or immediately
if personally delivered. Notices not sent in accordance with the foregoing shall
be of no force or effect until received by the foregoing parties at such
addresses required herein.

                                   ARTICLE 34

                               REAL ESTATE BROKERS

         Tenant represents that Tenant has dealt only with Hunneman Commercial
Company and Peter Elliot LLC (whose commission, if any, shall be paid by
Landlord pursuant to separate agreement) as broker, agent or finder in
connection with this Lease and agrees to indemnify and hold Landlord harmless
from all damages, judgments, liabilities and expenses including reasonable
attorneys' fees) arising from any claims or demands of any other broker, agent
or finder with whom Tenant has dealt (other than brokers engaged by Landlord, if
any, with whom Tenant may have dealt) for any commission or fee alleged to be
due in connection with its participation in the procurement of Tenant or the
negotiation with Tenant of this Lease.

                                   ARTICLE 35

                        SECURITY DEPOSIT - See Rider Six

                                      -31-

<PAGE>

                                   ARTICLE 36

                                ENTIRE AGREEMENT

         This Lease, together with Riders One through Seven and Exhibits A
through B, (WHICH COLLECTIVELY ARI HEREBY INCORPORATED WHERE REFERRED TO HEREIN
AND MADE A PART HEREOF AS THOUGH FULLY SE FORTH), contains all the terms and
provisions between Landlord and Tenant relating to the matters set forth herein
and no prior or contemporaneous agreement or understanding pertaining to the
same shall be of any force or effect, except any such contemporaneous agreement
specifically referring to and modifying this Lease, signed by both parties.
Without limitation as to the generality of the foregoing, Tenant hereby
acknowledges and agrees that Landlord's leasing agents and field personnel are
only authorized to show the Promises and negotiate terms and conditions for
leases subject to Landlord's final approval, and are not authorized to make any
agreements, representations, understandings or obligations, binding upon
Landlord, respecting the condition of the Premises or Property, suitability of
the same for Tenant's business, or any other matter, and no such agreements,
representations, understandings or obligations not expressly contained herein or
in such contemporaneous agreement shall be of any force or effect. Neither this
Lease, nor any Riders or Exhibits referred to above may be modified, except in
writing signed by both parties.

WITNESS; ATTESTATION

(Two for each signatory required if Property     LANDLORD:
is in Florida or Ohio):

                                                 260 FRANKLIN STREET BUILDING
/s/ Julia M. Bleimeke                            Boston, MA
--------------------------------------------

--------------------------------------------

                                                 260 FRANKLIN STREET ASSOCIATES
                                                 TRUSTS, a Massachusetts
                                                 Business Trust

                                                 By:/s/ [illegible]
                                                 ------------------------------
                                                 Trustee

                                                 TENANT:

/s/ [illegible]                                  CORECHANGE LLC
--------------------------------------------
                                                 By: /s/ Ulf Arnetz
--------------------------------------------     ------------------------------

                                      -32-

<PAGE>

                                   CERTIFICATE

                          (if Tenant is a Corporation)

         I, _______________, Secretary of ______________________ Tenant, hereby
certify that the officer(s) executing the foregoing Lease on behalf of Tenant
was/were duly authorized to act in his/their capacities as and his/their
action(s) are the action of Tenant.

(Corporate Seal)

-------------------------------------------------------------------------------
Secretary

IF TENANT PAYS FOR ALL ELECTRICITY IN PREMISES, OR FOR SEPARATE HVAC, E.G. BASED
ON SUB-METERS, USE JMB RIDER 112, 112A OR 112B.

                                      -33-

<PAGE>

                                    RIDER ONE

                                      RULES

         (1) On Saturdays, Sundays and Holidays, and on other days between the
hours of 6:00 P.M. and 8:00 A.M. the following day, or such other hours as
Landlord shall determine from time to time, access to the Property and/or to the
passageways, entrances, exits, shipping areas, halls, corridors, elevators or
stairways and other areas in the Property may be restricted and access gained by
use of a key to the outside doors of the Property, or pursuant to such security
procedures Landlord may from time to time impose. All such areas, and all roofs,
are not for use of the general public and Landlord shall in all cases retain the
right to control and prevent access thereto by all persons whose presence in the
judgment of Landlord shall be prejudicial to the safety, character, reputation
and interests of the Property and its tenants provided, however, that nothing
herein contained shall be construed to prevent such access to persons with whom
Tenant deals in the normal course of Tenant's business unless such persons are
engaged in activities which are illegal or violate these Rules. No Tenant and no
employee or invitee of Tenant shall enter into areas reserved for the exclusive
use of Landlord, its employees or invitees. Tenant shall keep doors to corridors
and lobbies closed except when persons are entering or leaving.

         (2) Tenant shall not paint, display, inscribe, maintain or affix any
sign, placard, picture, advertisement, name, notice, lettering or direction on
any part of the outside or inside of the Property, or on any part of the inside
of the Premises which can be seen from the outside of the Premises, without the
prior consent of Landlord, and then only such name or names or matter and in
such color, size, style, character and material as may be first approved by
Landlord in writing. Landlord shall prescribe the suite number and
identification sign for the Premises (which shall be prepared and installed by
Landlord at Tenant's expense). Landlord reserves the right to remove at Tenant's
expense all matter not so installed or approved without notice to Tenant.

         (3) Tenant shall not in any manner use the name of the Property for any
purpose other than that of the business address of the Tenant, or use any
picture or likeness of the Property, in any letterheads, envelopes, circulars,
notices, advertisements, containers or wrapping material without Landlord's
express consent in writing.

         (4) Tenant shall not place anything or allow anything to be placed in
the Premises near the glass of any door, partition, wall or window which may be
unsightly from outside the Premises, and Tenant shall not place or permit to be
placed any article of any kind on any window ledge or on the exterior walls.
Blinds, shades, awnings or other forms of inside or outside window ventilators
or similar devices, shall not be placed in or about the outside windows in the
Premises except to the extent, if any, that the character, shape, color,
material and make thereof is first approved by the Landlord.

         (5) Furniture, freight and other large or heavy articles, and all other
deliveries may be brought into the Property only at times and in the manner
designated by Landlord, and always at the Tenant's sole responsibility and risk.
Landlord may impose reasonable charges for use of freight elevators after or
before normal business hours. All damage done to the Property by

                                      -1-

<PAGE>

moving or maintaining such furniture, freight or articles shall be repaired by
Landlord at Tenant's expense. Landlord may inspect items brought into the
Property or Premises with respect to weight or dangerous nature. Landlord may
require that all furniture, equipment, cartons and similar articles removed from
the Premises or the Property be listed and a removal permit therefor first be
obtained from Landlord. Tenant shall not take or permit to be taken in or out of
other entrances or elevators of the Property, any item normally taken, or which
Landlord otherwise reasonably requires to be taken, in or out through service
doors or on freight elevators. Tenant shall not allow anything to remain in or
obstruct in any way, any lobby, corridor, sidewalk, passageway, entrance, exit,
hall, stairway, shipping area, or other such area. Tenant shall move all
supplies, furniture and equipment as soon as received directly to the Premises,
and shall move all such items and waste (other than waste customarily removed by
Property employees) that are at any time being taken from the Premises directly
to the areas designated for disposal. Any hand-carts used at the Property shall
have rubber wheels.

         (6) Tenant shall not overload any floor or part thereof in the
Premises, or Property, including any public corridors or elevators therein
bringing in or removing any large or heavy articles, and Landlord May direct and
control the location of safes and all other heavy articles and require
supplementary supports at Tenants expense of such material and dimensions as
Landlord may deem necessary to properly distribute the weight.

         (7) Tenant shall not attach or permit to be attached additional locks
or similar devices to any door or window, change existing, locks or the
mechanism thereof, or make or permit to be made any keys for any door other than
those provided by Landlord. If more than two keys or one lock are desired,
Landlord will provide them upon payment therefor by Tenant. Tenant, upon
termination of its tenancy, shall deliver to the Landlord all keys of offices,
rooms and toilet rooms which have been furnished Tenant or which the Tenant
shall have had made, and in the event of loss of any keys so furnished shall pay
Landlord therefor

         (8) If Tenant desires signal, communication, alarm or other utility or
similar service connections installed or changed, Tenant shall not install or
change the same without the prior approval of Landlord, and then only under
Landlord" direction at Tenant's expense.

         (9) Tenant shall not obtain for use upon the Premises ice, drinking
water, towel, janitor and other similar services, except from Persons approved
by the Landlord. Any Person engaged by Tenant to provide janitor or other
services shall be subject to direction by the manager or security personnel of
the Property.

         (10) The toilet rooms, urinals, wash bowls and other such apparatus
shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be thrown
therein and it expense of any breakage, stoppage or damage resulting from the
violation of this Rule shall be borne by the Tenant who, or whose employees or
invitees shall have caused it.

         (11) The janitorial closets, utility closets, telephone closets, broom
closets, electrical closets, storage closets and other such closets, rooms and
areas shall be used only for the purposes and in the manner designated by
Landlord and may not be used by tenants, or their contractors, agents,
employees, or other parties without Landlord's prior written consent.

                                      -2-

<PAGE>

         (12) Landlord reserves the right to exclude or expel from the Property
any person who, in the judgment of Landlord, is intoxicated or under the
influence of liquor or drugs, or who shall in any manner do any act in violation
of any of these Rules. Tenant shall not at any time manufacture, sell, use or
give away, any spirituous, fermented, intoxicating or alcoholic liquors on the
Premises, nor permit any of the same to occur (except in connection with
occasional social or business events conducted in the Premises which do not
violate any Laws nor bother or annoy any other tenants). Tenant shall not at any
time sell, purchase or give away, food in any form by or to any of Tenant's
agents or employees or any other parties on the Premises, nor permit any of the
same to occur (other than in lunch rooms or kitchens for employees as may be
permitted or installed by Landlord, which does not violate any Laws or bother or
annoy any other tenant).

         (13) Tenant shall not make any room-to-room canvass to solicit business
or information or to distribute any article or material to or from other tenants
or occupants of the Property and shall not exhibit, sell or offer to sell, use,
rent or exchange any products or services in or from the Premises unless
ordinarily embraced within the Tenant's use of the Premises specified in the
Lease.

         (14) Tenant shall not waste electricity, water, heat or air
conditioning or other utilities or services, and agrees to cooperate fully with
Landlord to assure the most effective and energy efficient operation of the
Property and shall not allow the adjustment (except by Landlord's authorized
Property personnel) of any controls. Tenant shall keep corridor doors closed and
shall not open any windows, except that if the air circulation shall not be in
operation, windows which are openable may be opened with Landlord's consent. As
a condition to claiming any deficiency in the air-conditioning or ventilation
services provided by Landlord, Tenant shall close any blinds or drapes in the
Premises to prevent or minimize direct sunlight.

         (15) Tenant shall conduct no auction, fire or "going out of business
sale" or Bankruptcy sale in or from the Premises, and such prohibition shall
apply to Tenant's creditors.

         (16) Tenant shall cooperate and comply with any reasonable safety or
security programs, including fire drills and air raid drills, and the
appointment of "fire wardens" developed by Landlord for the Property; or
required by Law. Before leaving the Premises unattended, Tenant shall close and
securely lock all doors or other means of entry to the Premises and shut off all
lights and water faucets in the Promises (except heat to the extent necessary to
prevent the freezing or bursting of pipes).

         (17) Tenant will comply with all municipal, county, state, federal or
other government laws, statutes, codes, regulations and other requirements,
including without limitation, environmental, health, safety and police
requirements and regulations respecting the Promises, now or hereinafter in
force, at its sole cost, and will not use the Premises for any immoral purposes.

         (18) Tenant shall not (i) carry on any business activity or service
except those ordinarily embraced within the permitted use of the Premises
specified in the Lease and more particularly, but without limiting the
generality of the foregoing, shall not (ii) install or operate any internal
combustion engine, boilers, machinery, refrigerating, heating or air
conditioning

                                      -3-

<PAGE>

equipment in or about the Premises, (iii) use the Premises for housing, lodging
or sleeping purposes or for the washing of clothes, (iv) place any radio or
television antennae other than inside of the Premises, (v) operate or permit to
be operated any musical or sound producing instrument or device which may be
heard outside the Premises, (vi) use any source of power other than electricity,
(vii) operate any electrical or other device from which may emanate electrical
or other waves which may interfere with or impair radio, television, microwave,
or other broadcasting or reception from or in the Property or elsewhere, (viii)
bring or permit any bicycle or other vehicle, or dog (except in the company of a
blind person or except where specifically permitted) or other animal or bird in
the Property, (ix) make or permit objectionable noise or odor to emanate from
the Premises, (x) do anything in or about the Premises tending to create or
maintain a nuisance or do any act tending to injure the reputation of the
Property, (xi) throw or permit to be thrown or dropped any article from any
window or other opening in the property, (xii) use or permit upon the Premises
anything that will invalidate or increase the rate of insurance on any policies
of insurance now or hereafter carried on the Property or violate the
certificates of occupancy issued for the promises or the Property, (xiii) use
the Premises for any purpose, or permit upon the Premises anything, that may be
dangerous to persons or property (including but not limited to flammable oils,
fluids, paints, chemicals, firearms or any explosive articles or materials) nor
(xiv) do or permit anything to be done upon the Premises in any way tending to
disturb any other tenant at the Property or the occupants of neighboring
property.

         (19) If the Property shall now or hereafter contain a building garage,
parking structure of other parking area or facility, the following rules shall
apply in such areas of facilities:

         (i) Parking shall be available in areas designated generally for tenant
parking, for such daily or monthly charges as Landlord may establish from time
to time, or as may be provided in any Parking Agreement attached hereto (which,
when signed by both parties as provided therein, shall thereupon become
effective). In all cases, parking for Tenant and its employees and visitors
shall be on a "first come, first served," unassigned basis, with Landlord and
other tenants at the Property, and their employees and visitors, and other
Persons (as defined in Article 25 of the Lease) whom Landlord shall grant the
right or who shall otherwise have the right to use the same, all subject to
these Rules, as the same may be amended or supplemented, and applied on a
non-discriminatory basis, all as further described in Article 6 of the Lease.
Notwithstanding the foregoing to the contrary, Landlord reserves the right to
assign specific spaces, and t reserve spaces for visitors, small cars,
handicapped individuals, and other tenants, visitors of tenants or other Person
and Tenant and its employees and visitors shall not park in any such assigned or
reserved spaces. Landlord may restrict or prohibit full size vans and other
large vehicles.

         (ii) In case of any violation of these provisions, Landlord may refuse
to permit the violator to park, and may remove the vehicle owned or driven by
the violator from the Property without liability whatsoever, at such violator's
risk and expense. Landlord reserves the right to close all or a portion of the
parking areas or facilities in order to make repairs or perform maintenance
services, or to alter, modify, re-stripe or renovate the same, or if required by
casualty, strike, condemnation, act of God, Law or governmental requirement, or
any other reason beyond Landlord's reasonable control. In the event access is
denied for any reason, any monthly parking charges shall be abated to the extent
access is denied, as Tenants sole recourse. Tenant acknowledges that such
parking areas or facilities may be operated by an independent

                                      -4-

<PAGE>

contractor not affiliated with Landlord, and Tenant acknowledges that in such
event, Landlord shall have no liability for claims arising through acts or
omissions of such independent contractor, it such contractor is reputable,

         (iii) Hours shall be 6 A.M. to 8 P.M., Monday through Friday, and 10:00
A.M. to 1:00 P.M. on Saturdays, or such other hours as may be reasonably
established by Landlord or its parking operator from time to time; cars must be
parked entirely within the stall lines, and only small cars may be parked in
areas reserved for small cars; all directional signs and arrows must be
observed; the speed limit shall be 5 miles per hour, spaces reserved for
handicapped parking must be used only by vehicles properly designated; every
parker is required to park and lock his own car, washing, waxing, cleaning or
servicing of any vehicle is prohibited; parking spaces may be used only for
parking automobiles: parking is prohibited in areas: (a) not striped or
designated for parking, (b) aisles, (c) where "no parking" signs are posted, (d)
on ramps, and (e) loading areas and other specialty designated areas. Delivery
trucks and vehicles shall use only those areas designated therefor.

                                      -5-

<PAGE>

                                                                 JM8 112B (2/89)
                                                              Office Lease Rider
                                                  Tenant Pays Full Prorata Share
                                                  Of All Electricity in Property

                                     RIDER 2

                               ELECTRICITY CHARGES

         Notwithstanding anything to the contrary contained in the Lease, in
addition to the Base Rent and other charges set forth therein, Tenant shall pay
Landlord an amount equal to Tenant's Prorata Share (as such term is defined in
Article 25 of the Lease) of general use electric utility charges incurred at the
Property during the Term, as the same may be extended from time to time. All
such charges shall be payable as additional rent, with the installment of Base
Rent with which the same are billed, or if billed separately, shall be due and
payable within twenty (20) days after such billing. Landlord may reasonably
estimate Tenant's electricity charges in advance, on a monthly, quarterly,
semi-annual, or other reasonable basis; in such case Tenant shall pay the
estimated amount with the installment of Base Rent with which the same is
billed, or if billed separately, within twenty (20) days after such billing, and
Tenant shall continue paying Landlord such estimated amount until Landlord shall
adjust such estimate. In such event, periodically, but not less often than once
each twelve months, Landlord shall compare the amounts on an estimated basis
with the actual charges incurred hereunder, and shall bill Tenant for any
additional amount due (which Tenant shall pay within twenty (20) days
thereafter) or shall credit Tenant for any over payment. In recognition that
Tenant will be responsible for paying Tenant's Prorata Share of such electric
utility charges pursuant to the foregoing provisions, no electric utility
charges shall be included in Operating Expenses (as defined in Article 25 of the
Lease). However, if the Property is less than 96% occupied during all or a
portion of any calendar year, Landlord may elect to make an appropriate
adjustment to the electricity charges for such year, employing sound accounting
and management principles, to determine the amount of electricity charges that
would have been incurred had the Property been 95% occupied; and the amount so
determined shall be deemed to have been the amount of electricity charges for
such year. In the event of any inconsistency between the Lease and this Rider,
the latter shall govern and control.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ------------------------------------
                                           Trustee

                                      -1-

<PAGE>

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                              ---------------------------------

                                      -2-

<PAGE>

                                                                    Use With JMB
                                                                       102 Forms
                                                                        (7/6/90)

                                     RIDER 3

         Notwithstanding anything to the contrary contained in the Lease, the
parties agree that Operating Expenses for the Base Expense Year (herein called
"Base Year Expenses") and for any subsequent year (herein called "Subsequent
Year Expenses") shall be subject to further adjustment by Landlord as follows:

         (i) Landlord may exclude from Base Year Expenses capital expenditures
otherwise permitted under Article 25 of the Lease (provided, Landlord shall also
exclude any amortization of such expenditures from Subsequent Year Expenses).

         (ii) If Landlord eliminates from any Subsequent Year Expenses a
recurring category of expenses previously included in Base Year Expenses,
Landlord may subtract such category from Base Year Expenses commencing with such
subsequent year.

         (iii) It Landlord includes a new recurring category of Subsequent Year
Expenses not previously included in Base Year Expenses, Landlord shall also
include an amount (the "Assumed Base Amount") for such category in Base Year
Expenses commencing in such subsequent year.

         (iv) The "Assumed Base Amount" under clause (iii), above, shall be the
annualized amount of expenses for such new category in the first year it is
included reduced by an amount determined in Landlord's good faith opinion.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ------------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ------------------------------------

                                      -1-

<PAGE>

                                                                  JMB 110A (2/89
                                                                Option to Extend
                                                      Prevailing Rate Adjustment
                                                                   (Arbitration)

                                     RIDER 4

         Tenant is hereby granted an option to extend the Term for a single
additional period of five (5) consecutive Lease Years ("Extension Period"), on
the same terms and conditions in effect under the Lease immediately prior to the
Extension Period, except that Tenant shall have no further right to extend, and
monthly Base Rent shall be increased to the Prevailing Rental Rate, and Tenant
shall have no further option to extend. The option to extend may be exercised
only by giving Landlord irrevocable and unconditional written notice thereof no
earlier than one year and no later than six months prior to the commencement of
the Extension Period. Said exercise shall, at Landlord's election, be null and
void if Tenant is in default under the Lease beyond applicable grace or cure
periods at the date of said notice or at any time thereafter and prior to
commencement of the Extension Period. The term "Lease Year" herein means each
twelve month annual period, commencing with the first day of the Extension
Period, without regard to calendar years.

         "Prevailing Rental Rate" means the average per square foot rental rate
per month for all renewal leases for renewal periods approximately as long as
the Extension Period, executed by tenants for similar uses and lengths of time
for comparable space in the Building during the six (6) months immediately prior
to the date upon which such Prevailing Rental Rate is to become effective, where
such renewal rates were not set by the terms of such leases, subject to
reasonable adjustments for comparable space on more or less desirable floors or
areas of the Property. If no such comparable space has been renewed during such
six (6) month period, the rental rates used for purposes of this provision shall
be adjusted to the amounts Landlord would have used had leases for such
comparable space been renewed. In all cases, such rates shall be determined
without regard to any free rent periods, improvement allowances, take-over lease
obligations, or other economic incentives; however, any such economic incentives
generally provided by Landlord in such comparable renewal leases shall also be
provided to Tenant. In addition, if such comparable leases include bass years,
stop levels, or other provisions respecting taxes or operating expenses, or
include any other economic provisions, such as but not limited to consumer price
provisions, utility reimbursements, or fixed rent increases, the same shall be
included in Tenant's renewal terms.

         If the parties are unable to agree on the Prevailing Rental Rate within
sixty (60) days after the commencement of the Extension Period, either party may
request that the Prevailing Rental Rate be determined by arbitration, under the
Commercial Arbitration Rules of the American Arbitration Association then in
effect. Such determination shall be final and binding upon the parties. In
recognition that the Prevailing Rental Rate may not be determined until after
the commencement of the Extension Period, Tenant shall pay, during the Extension
Period until the Prevailing Rental Rate is determined, 100% of the amount of
Rent then in effect (including Base Rent, and all other charges). If the
Prevailing Rental Rate is determined to be greater than such amount, Tenant
shall pay Landlord, within thirty (30) days after written request therefor, the

                                      -1-

<PAGE>

difference between the amount required by such determination of the Prevailing
Rental Rate, and the amount of Rent theretofore paid by Tenant during the
Extension Period.

         If Tenant shall fall to exercise the option herein provided, said
option shall terminate, and shall be null and void and of no further force and
effect. Tenant's exercise of said option shall not operate to cure any default
by Tenant of any of the terms or provisions in the Lease, nor to extinguish or
impair any rights or remedies of Landlord arising by virtue of such default. If
the Lease or Tenant's right to possession of the Premises shall terminate in any
manner whatsoever before Tenant shall exercise the option herein provided, then
immediately upon such termination, sublease or assignment, the option herein
granted to extend the Term, shall simultaneously terminate and become null and
void. Time is of the essence of this provision.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ------------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ------------------------------------

                                      -2-

<PAGE>

                                     RIDER 5

         As set forth in the Lease, monthly Base Rent shall be abated for a
period of 16 days after the Commencement Date ("Abatement Period"). If Tenant
shall default under the Lease and fall to cure within the time permitted for
cure thereunder while Abatement Period is still in effect, the Abatement Period
shall thereupon terminate, and Tenant shall commence paying the Base Rent under
the Lease. In addition, if Tenant shall default under the Lease at any time and
fall to cure within the time permitted for cure thereunder, Tenant shall upon
demand pay Landlord the amount of Base Rent theretofore abated, multiplied by a
fraction, the numerator of which is the number of months then remaining in the
Initial Term at the time of the default, and the denominator of which is the
total number of months in the Initial Term (without limiting Landlord's other
remedies).

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ------------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ------------------------------------

                                      -1-

<PAGE>
                                                 Declining Amount Security Depot

                                     RIDER 6

As security for Tenant's obligations under this Lease, Tenant is simultaneous
with the execution of this Lease depositing with Landlord an irrevocable standby
letter of credit (i) in favor of Landlord, (ii) in the original face amount of
$100,000, (iii) issued by a banking institution reasonably satisfactory to
Landlord, and (iv) in a form reasonably satisfactory to Landlord; provided,
however, (a) the face amount of the letter of credit may be reduced by $20,000
on the date which is the later to occur of (x) the first anniversary of the
Commencement Date, and (y) five (5) business days after the cure of any and all
defaults which occurred prior to such anniversary of the Commencement Date and
which are in fact cured within applicable cure periods and (b) the then face
amount of the letter of credit may be reduced by $20,000 on (x) each succeeding
anniversary of the Commencement Date after the first anniversary or, if later,
(y) five (5) business days after the cure of any and all defaults which occurred
prior to such anniversary of the Commencement Date and which are in fact cured
within applicable cure periods. The letter of credit shall not be reduced if the
conditions for reducing have not been timely met. The letter of credit shall
automatically renew on each anniversary of the Commencement Date unless not less
than forty-five (45) days prior to renewal, the issuing banking institution
notifies Landlord in writing that the letter of credit will not be renewed, in
which event Landlord shall be entitled to draw the entire face amount of the
letter of credit and to hold the amount so drawn as a security deposit to secure
Tenant's performance under the Lease. Landlord shall have the right from time to
time, without prejudice to any other remedy Landlord may have on account
thereof, to draw down under the letter of credit an amount equal to all or any
portion as Landlord may elect of the face amount of the letter of credit (or to
use amounts held as security after being drawn by reason of failure to renew) to
cure any default of Tenant which has continued beyond applicable periods of
notice and grace under the Lease and to reimburse Landlord for any damages
arising from any default under this Lease on the part of Tenant. Without
limiting the generality of the foregoing, such letter of credit shall provide in
all events that Landlord shall have the right to draw against the face amount
thereof as aforesaid upon the submission to the drawee bank of a written
statement of Landlord or Landlord's agent that it is entitled to draw thereunder
pursuant to the provisions of this Lease, and Landlord shall be entitled by the
terms of such letter of credit to draw thereunder on sight. Tenant shall
promptly after any draw by Landlord against a letter of credit hereunder or a
reduction in the amount held as security hereunder by reason of the application
thereof to cure a default by Tenant deposit with Landlord, to be held as a
security deposit an amount equal to the amount drawn under the letter of credit
or applied so as to provide Landlord with an unreduced amount of security for
Tenant's obligations under the Lease. Landlord shall not be required to keep any
amounts held as a security deposit separate from Landlord's general funds or to
pay interest on any security deposit. Tenant acknowledges and agrees that the
delivery of the letter of credit as aforesaid shall be, if Landlord shall so
elect, a condition precedent to the execution of this Lease by Landlord, or to
the performance by Landlord of any and all of Landlord's obligations under this
Lease if Landlord shall execute this Lease prior to the delivery of the first
such letter of credit as aforesaid. Notwithstanding anything to the contrary
herein contained, in the event that Tenant shall fall to deliver to Landlord the
letter of credit required to be so delivered by the terms hereof or shall fall
to deposit with Landlord as additional security for Tenant's obligations under
the Lease an amount equal to any amount drawn by Landlord under a letter of
credit hereunder

                                      -1-

<PAGE>

or applied, then Landlord may treat such failure as a material breach of this
Lease and thereupon, without further notice or demand of any kind to Tenant or
any guarantor of any of Tenants obligations under this Lease or any other
person, Landlord may exercise, at its option, in addition to all other legal or
equitable remedies therefor, any remedies available to Landlord under Article 23
of this Lease, including, without limitation, the right to terminate this Lease.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ------------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ------------------------------------

                                      -2-

<PAGE>

                                                                  JMB 106 (2/89)
                                                               Parking Agreement

                                     RIDER 7

                                PARKING AGREEMENT

         THIS AGREEMENT made as of the _____ day of December, 1996, between 260
Franklin Street Associates Trust ("Landlord") and Corechange LLC ("Tenant").

         (1) The parties hereby acknowledge that they have heretofore entered,
or are contemporaneously herewith lease dated December __, 1996 (the "Lease")
for Premises known as Suite 1890 (the "Premises") located in the property known
as 260 Franklin Street (the "Property"). In the event of any conflict between
the Lease and this Agreement, the latter shall control.

         (2) Landlord hereby grants to Tenant and Persons designated by Tenant a
license to use 2 parking spaces in the Property Garage. The Term of such license
shall commence on the Commencement Date under the Lease and shall continue until
the earlier to occur of the Expiration Date under the Lease, or termination of
the Lease or Tenant's abandonment of the Premises thereunder. During the Term of
this license, Tenant shall pay Landlord the monthly charges established from
time to time by Landlord for parking in the Garage, payable in advance with
Tenant's payment of monthly Base Rent. The initial charge for such spaces is
$275.00, per space, per month, or a total monthly charge of $550.00 for all such
spaces. No deductions from the monthly charge shall be made for days on which
the Garage is not used by Tenant. However, Tenant may reduce the number of
parking spaces hereunder, at any time, by providing at least thirty (30) days
advance written notice to Landlord, accompanied by any key-card, sticker or
other identification or entrance system provided by Landlord or its parking
contractor, such cancellation shall be irrevocable. Tenant may, from time to
time, request additional parking spaces, and if Landlord shall provide the same,
such spaces shall be provided and used on a month-to-month basis, and otherwise
on the foregoing terms and provisions, and such monthly parking charges as
Landlord shall establish from time to time.

         (3) Tenant shall at all times comply with all applicable ordinances,
rules, regulations, codes, laws, statutes and requirements of all federal,
state, county and municipal governmental bodies or their subdivisions respecting
the use of the Garage. Landlord reserves the right to adopt, modify and enforce
reasonable Rules governing the use of the Garage from time to time, including
any key-card, sticker or other identification or entrance system, and hours of
operation. The Rules set forth hereinafter are currently in effect. Landlord may
refuse to permit any person who violates such Rules to park in the Garage, and
any violation of the Rules shall subject the car to removal from the Garage.

         (4) The parking spaces hereunder shall be provided on an unreserved
"first-come, first-served' basis. Tenant acknowledges that Landlord has or may
arrange for the Garage to be operated by an independent contractor, not
affiliated with Landlord. In such event, Tenant acknowledge that Landlord shall
have no liability for claims arising through acts or omissions of such
independent contractor, if such contractor is reputable. Except for intentional
acts or gross

                                      -1-

<PAGE>

negligence, any damage to property or any other items located in the Garage, nor
for any personal injuries or death arising out of any matter relating to the
Garage and in all events, Tenant agrees to look first to its insurance carrier
and to require that Tenant's employees look first to their respective insurance
carriers for payment of any losses sustained in connection with any use of the
Garage. Tenant hereby waives on behalf of its insurance carriers all rights of
subrogation against Landlord or Landlord's agents. Landlord reserves the right
to assign specific spaces, and to reserve spaces for visitors, small cars,
handicapped persons and for other tenants, guests of tenants or other parties,
and Tenant and persons designated by Tenant hereunder shall not park in any such
assigned or reserved spaces. Landlord also reserves the right to close all or
any portion of the Garage in order to make repairs or perform maintenance
services, or to alter, modify, re-stripe or renovate the Garage, or if required
by casualty, strike, condemnation, act of God, governmental law or requirement
or other reason beyond Landlord's reasonable control. In such event, Landlord
shall refund any prepaid parking rent hereunder, prorated on a per them basis.
If, for any other reason, Tenant or persons properly designated by Tenant, shall
be denied access to the Garage, and Tenant or such persons -shall have complied
with this Agreement and this Agreement shall be in effect, Landlord's liability
shall be limited to such parking charges (excluding tickets for parking
violations) incurred by Tenant or such persons in utilizing alternative parking,
which amount Landlord shall Pay upon presentation of documentation supporting
Tenant's claims in connection therewith.

         (5) If Tenant shall default under this Agreement, Landlord shall have
the right to remove from the Garage any vehicles hereunder which shall have been
involved or shall have been owned or driven by parties involved in causing such
default, without liability therefor whatsoever. In addition, if Tenant shall
default under this Agreement, Landlord shall have the right to cancel this
Agreement on ten days' written notice, unless within such ten day period, Tenant
cures such default. If Tenant defaults with respect to the same term or
condition under this Agreement more than three times during any twelve month
period, and Landlord notifies Tenant thereof promptly after each such default,
the next default of such term or condition during the succeeding twelve month
period, shall, at Landlord's election, constitute an incurable default. Such
cancellation right shall be cumulative and in addition to any other rights or
remedies available to Landlord at law or in equity, or provided under the Lease
(ALL OF WHICH RIGHTS AND REMEDIES UNDER THE LEASE ARE HEREBY INCORPORATED
HEREIN, AS THOUGH FULLY SET FORTH). Any default by Tenant under the Lease shall
be a default under this Agreement, and any default under this Agreement shall be
a default under the Lease.

                                      -2-

<PAGE>

                                    EXHIBIT A

                 (FLOOR PLAN(S) SHOWING PREMISES CROSS-HATCHED)

[Graphic depicts a floorplan showing the layout of approximately 5,879 rentable
square feet located on the 18th floor of 260 Franklin Street, Boston,
Massachusetts]

                                      -1-

<PAGE>

FOR USE WHERE WORKING DRAWINGS DONE
                                                                 JMB 105A (2/89)
                                                                  Work Agreement
                                                            Landlord Performance
                                                                   Turn-Key Deal

                                   EXHIBIT "B"

                                 WORK AGREEMENT

         THIS AGREEMENT made as of the ____ day of December, 1996, between 260
Franklin Street Associates Trust ("Landlord") and Corechange LLC ("Tenant").

         Reference is made to the lease or tenant expansion agreement dated
December, 1996, (the "Lease") for premises known as Suite(s) 1890 (the
"Premises"), located in the property known as 260 Franklin Street (the
"Property").

         I. THE WORK. The "Work" herein shall consist of the improvements shown
on the plans ("Plans") referenced as follows, and any demolition or preparation
work required in connection therewith: Up to maximum of $11.00 per rental square
foot or $64,669.00.

       Name of Architect or Space Planner: Dyer Brown Associates, Inc./Architect

       Address of Architect or Space Planner: 75 Broad Street, Boston, MA 02109

       Caption of Plans:          ____________________________________________

       Number of Sheets:          ____________________________________________

       Dates of Plans and Revisions:    ______________________________________

         II. BASIC AGREEMENT. On or before the Commencement Date under the
Lease, Landlord shall substantially complete the Work as described above.
However, Landlord shall not be responsible for delays caused by Tenant or
Tenant's contractors, agents or employees and as further described in Section
111 below and in Article 4 of the Lease.

         Landlord shall bear the cost of the Plans (including any engineering
reports, or other studies or tests in connection therewith, but excluding any
furniture planning) and the cost of the Work (including the cost of building
permits and sales tax) except as provided to the contrary herein.

         III. DELAYS IN CONSTRUCTION. Subject to outside date set forth in
Article 4 of the Lease, the Commencement Date under the Lease shall be postponed
for each day that Landlord fails to substantially complete the Work thereby as a
result of strikes, acts of God, shortages of materials or labor, governmental
approvals or requirements, the various causes set forth below, or any other
causes beyond Landlord's reasonable control, in such case, the commencement of
Rent shall be similarly postponed, except to the extent that delays occur as a
result of one or more of the following, (collectively called "Tenant Delays");

                                      -1-

<PAGE>

         (a) Tenant's requests for changes to the Work or Change Orders under
Section V, or otherwise,

         (b) Tenant's failure to furnish an amount equal to Landlord's
reasonable estimate of Tenant's Cost (if any) within 10 days, as described in
Section X111 (which shall give Landlord the absolute right to postpone the Work
until such amount is furnished to Landlord),

         (c) any upgrades, special work or other non-building standard items, or
items not customarily provided by Landlord to office tenants, to the extent that
the some involve longer lead times, installation times, delays or difficulties
in obtaining building permits, requirements for any governmental approval,
permit or action beyond the issuance of normal building permits (as described in
Section IV),

         (d) the performance by Tenant or Tenant's contractors, agents or
employees of any work at or about the Premises or Property, or

         (e) any act or omission of Tenant or Tenant's contractors, agents or
employees, or any breach by the Tenant of any provisions contained in this
Agreement or in the Lease, or any failure of Tenant to cooperate with Landlord,
or otherwise act in good faith in order to cause the Work to be designed and
performed in a timely manner.

         IV. GOVERNMENTAL APPROVAL OF PLANS. Landlord shall apply foe any normal
building permits required for the Work. If the Plans must be revised in order to
obtain such building permits, Landlord shall promptly notify Tenant. In such
case, Tenant shall promptly arrange for the Plans to be revised to satisfy the
building permit requirements and shall submit the revised Plans to landlord for
approval as a Change Order under Section V. Landlord shall have no obligation to
apply for any zoning, parking or sign code amendments, approvals, permits or
variances, or any other governmental approval, permit or action (except normal
building permits as described above). If any such other matters are required,
Tenant shall promptly seek to satisfy such requirements or revise the Plans to
eliminate such requirements. Delays in substantially completing the Work by the
Commencement Date as a result of requirements for building permits or other
governmental approvals, permits or actions shall affect the commencement Date
and commencement of Rent to the extent provided in Section III (except that any
delays in obtaining normal building permits as a result of errors or omissions
of any space planner or architect selected and regularly used by Landlord in
preparing the Plans shall postpone the commencement of Rent to the extent that
substantial completion of the Work is delayed thereby beyond the Commencement
Date, and Tenant shall not be obligated to bear the cost of Plan revisions to
correct he same, notwithstanding anything to the contrary contained in this
Agreement.

         V. CHANGES TO PLANS. If Tenant shall desire any changes, alterations,
or additions to the Plans referenced above, Tenant shall submit a detailed
written request or revised Plans (the "Change Order") to Landlord for approval.
If reasonable and practicable and generally consistent with the Plant theretofor
approved. Landlord shall not unreasonably withhold approval, but all costs in
connection therewith, including without limitation, construction costs, permit
fees, and, any additional plans, drawings and engineering reports or opinions or
other

                                      -2-

<PAGE>

studies or tests, or revisions of such existing terms, shall be paid for by
Tenant as a Tenant's Cost under Section XIII, Or as Landlord shall otherwise
reasonably require.

         VI.      COMPLETION.

         A. Landlord shall be deemed to have "substantially completed" the Work
for purposes hereof if Landlord has caused all of the Work to be completed
substantially except for so-called "punchlist items," e.g. minor details of
construction or decoration or mechanical adjustments which do not substantially
interfere with Tenant's occupancy of the Premises, or Tenant's ability to
complete any improvements to the Premises to be made by Tenant, if there is any
dispute as to whether Landlord has substantially completed the Work, the good
faith decision of Landlord's Space Planner shall be final and binding on the
parties.

         B. If Landlord notifies Tenant in writing that the Work is
substantially completed, and Tenant falls to object thereto writing within seven
(7) days thereafter specifying in reasonable detail the items of work needed to
be performed in order for substantial completion, Tenant shall be deemed
conclusively to have agreed that the Work is substantially completed, for
purposes of commencing the Commencement Date and Rent under the Lease.

         C. Substantial completion shall not prejudice Tenant's rights to
require full completion of any remaining items of Work. However, if Landlord
notifies Tenant in writing that the Work is full completed, and Tenant falls to
object thereto in writing within fifteen (16) days thereafter specifying in
reasonable detail the items of work needed to be completed and the nature of
work needed to complete said items, other than items which are seasonal in
nature and latent defects, with respect to which Tenant shall have a period of
one year in which to notify Landlord of any deficiency in the Work with respect
thereto) Tenant shall be deemed conclusively to have accepted the Work is fully
completed (or such portions thereof as to which Tenant has not so objected).

         D. Landlord reserves the right to substitute comparable or better
materials and items for those shown in the Plans, long as they do not materially
and adversely affect the appearance of the Premises.

         VII. WORK PERFORMED BY TENANT. Landlord, at Landlord's discretion, may
permit Tenant and Tenant's agents and contractors to enter the Premises prior to
completion of the Work in order to make the Premises ready for Tenant's use and
occupancy. If Landlord permits such entry prior to completion of the Work, then
such permission is conditioned upon Tenant and Tenant's agents, contractors,
workmen, mechanics, suppliers and invitees working in harmony and not
interfering with landlord and Landlord's contractors in doing the Work or with
other tenants and occupants of the Building, at any time such entry shall cause
or threaten to cause such disharmony or interference, landlord shall have the
right withdraw such permission upon twenty-four (24) hours oral or written
notice to Tenant. Tenant agrees that any such entry into the Premises shall be
deemed to be under all of the terms, covenants, conditions and provisions of the
Lease including, without limitation, all insurance requirements), except as the
covenant to pay Rent thereunder, and further fees that Landlord shall not be
liable in any way for any injury, loss or damage which may occur to any items of
work instructed by Tenant or other property of

                                      -3-

<PAGE>

Tenant that may be placed in the Premises prior to completion of the Work, be
same being at Tenant's sole risk.

         VIII. SIGNAGE. Landlord shall cause signage of building standard
material and design to be-placed on or adjacent to the door of the Premises and
Tenant shall pay the cost thereof to Landlord upon demand. The amount due from
Tenant "Rent" under the Lease. Tenant shall promptly advise Landlord in writing
of the name or names Tenant wishes for said signage. The content of all signage
shall be subject to Landlord's prior approval.

         IX. LIABILITY. The parties acknowledge that Landlord is not an
are6itect or engineer, and that the Work will be signed and performed by
independent architects, engineers and contractors. Accordingly, Landlord does
not guarantee warrant that the plans will be free from errors or omissions, nor
that the Work will be free from defects, and Landlord it have no liability
therefor, provided that such architects, engineers and contractors are licensed
and reputable (except provided in Section IV). In the event of such errors,
omissions, or defects, Landlord shall cooperate in any action ant desires to
bring against such parties.

         X.       [OMITTED]

         XI. INCORPORATION INTO LEASE; DEFAULT. THE PARTIES AGREE THAT THE
PROVISIONS OF THIS WORK AGREEMENT ARE HEREBY INCORPORATED BY THIS REFERENCE INTO
THE LEASE FULLY AS THOUH SET FORTH THEREIN. In the event of any express
inconsistencies between the Lease and this Work Agreement, the latter shall
govern and control. Any default by a party hereunder shall constitute a default
by that party under the Lease and ___ party shall be subject to the remedies and
other provisions applicable thereto under the Lease.

         XI. UPGRADES OR SPECIAL WORK; TENANT'S COST.

         The parties acknowledge that Tenant has selected certain items
included in the Work which are high quality or specialized for Tenant's use.
Accordingly:

         (a) [Omitted]

         (b) Tenant shall pay balance towards the cost of the Work.

         Any amounts that Tenant is required to pay under this Section or any
other provision of this Agreement shall be referred to as "Tenant's Cost"
herein. Tenant's Cost shall be deemed additional "Rent" under the Lease.
Landlord may at any time reasonably estimate Tenant's Cost in advance, in which
case, Tenant shall deposit such estimated amount with Landlord within 10 days
after requested by Landlord. If such estimated amount exceeds the actual amount
of Tenant's Cost, Tenant shall receive a refund of the difference, and if the
actual amount shall exceed the estimated amount, Tenant shall pay the difference
to Landlord within 10 days after requested by Landlord.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING

                                      -4-

<PAGE>

                                           Boston, MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ----------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ----------------------------------

                                      -5-

<PAGE>

                                   RULES

(i)      Garage hours shall be 6 A.M. to 8 P.M. or such other hours as Landlord
         shall determine from time to time,

(ii)     Cars must be parked entirely within the stall lines painted on the
         floor, and only small cars may be parks( in areas reserved for small
         cars.

(iii)    All directional signs and arrows must be observed.

(iv)     The speed limit shall be 5 miles per hour.

(v)      Spaces reserved for handicapped parking must be used only by vehicles
         properly designated.

(vi)     Parking is prohibited in all areas not expressly designated for
         parking, including without limitation:

         a. areas not striped for parking

         b. aisles

         c. where "no parking" signs are posted

         d. ramps

         e. loading zones

(vii)    Parking stickers, key cards or any other devices or forms of
         identification or entry supplied by Landlord shall remain the property
         of Landlord. Such devices must be displayed as requested and may not be
         mutilated in any manner The serial number of the parking identification
         device may not be obliterated. Devices are not transferable and any
         device in the possession of an unauthorized holder will be void.

(viii)   Monthly fees shall be payable in advance prior to the first day of each
         month. Failure to do so will automatically cancel parking privileges
         and a charge at the prevailing daily parking rate will be due. No
         deductions or allowances from the monthly rate will be made for days on
         which the Garage is not used by Tenant or its designees.

(ix)     Garage managers or attendants are not authorized to make or allow any
         exceptions to these Rules.

(x)      Every parker is required to park and lock his own car.

(xi)     Loss or theft of parking identification, key cards or other such
         devices must be reported to Landlord or any garage manager immediately.
         Any parking devices reported lost or stolen found on any unauthorized
         car will be confiscated and the illegal holder will be subject to
         prosecution. Lost or stolen devices found by Tenant or its employees
         must be reported to the office of the garage immediately.

                                      -1-

<PAGE>

(xii)    Washing, waxing, cleaning or servicing of any vehicle by the customer
         and/or his agents is prohibited. Parking spaces may be used only for
         parking automobiles.

(xiii)   By signing this Parking Agreement, Tenant agrees to acquaint all
         persons to whom Tenant assigns parking space of these Rules.

                                           LANDLORD:

                                           260 FRANKLIN STREET BUILDING
                                           Boston. MA

                                           260 FRANKLIN STREET ASSOCIATES
                                           TRUST Massachusetts Business Trust

                                           By: /s/ [illegible]
                                           ----------------------------------
                                           Trustee

                                           TENANT:

                                           CORECHANGE, LLC

                                           By: /s/ Ulf Arnetz
                                           ----------------------------------

                                      -2-

<PAGE>
                                LEASE AMENDMENT I

                           TENANT EXPANSION AGREEMENT

         THIS AGREEMENT made and entered into as of this 25 day of April 1998,
by between 260 Franklin, Inc. ("Landlord"), and Corechange LLC ("Tenant").

         A. Landlord or its predecessor in interest, and Tenant or its
predecessor in interest, have heretofore entered into that certain lease dated
the 27 day of December, 1996 for premises (the "Premises") described as Suite
1890, initially containing approximately 4,918 square feet, in the property
known as 260 Franklin Street (the "Property") the address of which is 2680
Franklin Street, Boston, MA 02110, which lease has heretofore been amended or
assigned by instrument dated Notice of Lease 12/27/96. Estoppel Certificate
12/15/97.

         B. Tenant has requested that additional space in the Property
consisting of approximately 4,918 square feet of rentable space shown on Exhibit
A, attached hereto and incorporated herein (the "Expansion Space") be added to
the Premises, and that the Lease be appropriately amended, and Landlord is
willing to do the same, all on the terms and conditions hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and other good and valuable consideration, the parties do
hereby agree as follows:

         1. EXPANSION. Commencing on the 15th day of April, 1998 (the
"Commencement Date"), the Expansion Space shall be added to and become a part of
the Premises, subject to all of the terms and conditions of the Lease currently
in effect, except as expressly modified herein. Expiration for the Expansion
Space 6/30/99. The Commencement Date shall be subject to adjustment as described
in Paragraph 4, below.

         2. RENTALS AND OTHER CHARGES. On the Commencement Date, the minimum or
base monthly rent under the Lease-for the Expansion Space shall be $13,114.67.

         In addition, on the Commencement Date, all increases in rentals,
additional rent or other charges based c computed on the square footage of the
Premises under the Lease, including without limitation, real estate taxes,
insurance costs, common area maintenance expenses, operating expenses, shall be
adjusted proportionately to reflect the Expansion Space square footage.

         The minimum or base rentals and all other charges respecting the
Expansion Space are sometimes herein called the "Expansion Space Rent".

         3.       Intentionally Omitted.

         4. POSSESSION. Tenant has inspected the Expansion Space and agrees to
accept the same "as is" without any agreements, representations, understandings
or obligations an the part of Landlord to perform any alterations, repairs or
improvements except as expressly provided in any separate agreement that may be
signed by the parties in connection herewith. Any construction, alterations or
improvements made to the Expansion Space by Tenant shall be

                                      -1-

<PAGE>

subject to Landlord's prior written approval including without limitation,
approval of the plans, specifications, contractors and subcontractors therefor,
and all applicable terms and conditions of the Lease relating to construction,
alterations or improvements of the Premises, and such other reasonable
requirements or conditions as Landlord may impose. During any period that Tenant
shall be permitted to enter the Expansion Space prior to the Commencement date
other than to occupy the same (e.g., to perform alterations or improvements),
Tenant shall comply with all terms and provisions of the Lease, except those
provisions requiring payment of Expansion Space Rent. If Tenant shall be
permitted to enter the Expansion Space prior to the Commencement Date for the
purpose of occupying the same, Expansion Space Rent shall commence on such date;
if Tenant shall commence occupying only a portion of the Expansion Space prior
to the commencement Date, such rent and charges shall be prorated based on the
number of rentable square fee occupied by Tenant.

         The Commencement Date shall be delayed and Expansion Space Rent shall
be abated to the extent that Landlord fails: (i) to substantially complete any
improvements to the Expansion Space required to be performed by Landlord under
any separate agreement signed by both parties in connection herewith, or (ii) to
deliver possession of the Expansion Space for any other reason, including but
not limited to holding over by prior occupants, except to the extent that
Tenant, its contractors, agents or employees in any way contribute to either
such failures. If Landlord so fails for a ninety (90) day initial grace period,
or such additional time as may be necessary due to strikes, acts of God,
shortages of labor or materials, governmental requirements, acts or omissions of
Tenant, its contractors, agents or employees, or other causes beyond Landlord's
reasonable control, Tenant shall have the right to terminate this Tenant
Expansion Agreement by written notice to Landlord any time hereafter up until
Landlord substantially completes any such improvements and delivers the
Expansion Space to Tenant. Any such delay in the Commencement Date shall not
subject Landlord to any liability for any loss or damage resulting therefrom,
and Tenant's sole remedy with respect thereto shall be the abatement of
Expansion Space Rent and right to terminate this Agreement described above. Upon
any such termination, landlord and Tenant shall be entirely relieved of their
obligations hereunder and any Additional Security Deposit and Expansion Space
Rent payments shall be returned to Tenant. If the Commencement Date is delayed,
the Expiration Date under the Lease shall not be similarly extended, unless the
parties expressly agree in writing.

         5. WHOLE AGREEMENT. This Agreement sets forth the entire Agreement
between the parties with respect to the matters set forth herein. There have
been no additional oral or written representations or agreement! Ns amended
herein, the Lease between the parties shall remain in full force and effect. In
case of an inconsistency between the provisions of the Lease and this Agreement,
the latter provisions shall govern an control. Under no circumstances shall this
Agreement be deemed to grant any right to Tenant to further expand the Premises.

         6. GUARANTORS. This Agreement shall be of no force or effect unless and
until accepted by any guarantor of the Lease, who by signing below shall agree
that their guarantee shall apply to the Lease as amended herein unless such
requirement is waived by Landlord in writing.

                                      -2-

<PAGE>

         7. NOT AN OFFER. Submission of this Agreement by Landlord is not an
offer to enter this Agreement, but , solicitation for such an offer by Tenant,
Landlord shall not be bound by this Agreement until Landlord ha executed and
delivered the same to Tenant.

         IN WITNESS WHEREOF, the Landlord and Tenant have duly executed this
Agreement as of the day and year first above written.

WITNESS; ATTESTATION                      LANDLORD:  260 Franklin, Inc.

(Two for each signatory required
if Property is in Florida or Ohio):

                                          By: /s/ Thomas M. Burdi
-----------------------------------          ---------------------------------

                                          Its: V.P.
-----------------------------------          ---------------------------------

                                          TENANT:  Corechange LLC

                                          By: /s/ Neil Gelfand
-----------------------------------          ---------------------------------

                                          Its: CFO/SR V.P.
-----------------------------------          ---------------------------------

                                          By:
-----------------------------------          ---------------------------------
                                          Its:
-----------------------------------          ---------------------------------

                                      -3-

<PAGE>

                                    EXHIBIT A

                 (FLOOR PLAN(S) SHOWING PREMISES CROSS-HATCHED)

[Graphic depicts a floorplan showing the layout of approximately 4,918 rentable
square feet located on the 19th floor of 260 Franklin Street, Boston,
Massachusetts]

                                      -4-

<PAGE>

                           SECOND AMENDMENT OF LEASE.

                            SPACE REDUCTION AGREEMENT

         THIS AGREEMENT made and entered into as of this _____ day of August,
1998, by and between 260 Franklin, Inc. ("Landlord") and Corechange, Inc.
("Tenant").

         A. Landlord or its predecessor in interest, and Tenant or its
predecessor in interest, have heretofore entered into that certain lease dated
the 27th day of December, 1996, for premises described as Space, Store, Suite,
or Unit No. 1890 initially containing approximately 5,879 s.f., increased by
4,918 s.f. by Lease Amendment I square feet (the "Premises"), in the 260
Franklin Street (the "Building"), the address of which is 260 Frankling Street,
Boston, MA 02110, which lease has heretofore been amended or assigned by
instruments dated April 15, 1998 (collectively, the "Lease").

         B. Tenant desires to surrender a portion of the Premises to Landlord
consisting of approximately 710 square feet of space added by Lease Amendment I
and shown on Exhibit A, attached hereto and incorporated herein (the "Reduction
Space"), thereby leaving the balance of the Premises consisting of approximately
10,087 square feet as shown on Exhibit B attached hereto and incorporated herein
(the "Remaining Premises"), and Landlord is willing to accept such surrender on
the terms and provisions hereinafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, and other good and valuable consideration, the parties do
hereby agree as follows:

         1. SPACE REDUCTION. On the Effective Date (as hereinafter defined), the
Reduction Space shall be subtracted from the Premises, and shall be deemed
surrendered by Tenant to Landlord, and the Lease shall be deemed terminated with
respect thereto: provided, if Tenant shall violate any provision hereof, or if
Tenant's representations herein shall be false or materially misleading,
Landlord shall have the right to declare this Agreement null and void, and to
reinstate the Lease with respect to the Reduction Space, in addition to. and not
in lieu of, any other rights or remedies available to Landlord. Tenant shall
fully comply with all obligations under the Lease respecting the Reduction Space
through the Effective Date, including those provisions relating to the condition
of the Reduction Space, and removal of Tenant's personal property therefrom,
upon termination or expiration of the Lease. If Tenant shall holdover in the
Reduction Space beyond the Effective Date, Tenant shall be liable for rentals
and other charges respecting the Reduction Space equal to twice the amount in
effect under the Lease, prorated on a per them basis, and on 6 per square foot
basis for the Reduction Space. Such holdover amount shall not be in limitation
of Tenant's liability for consequential or other damages arising from Tenant's
holding over nor as permission for Tenant to hold over in the Reduction
Premises. If Landlord shall install a wall demising off the Reduction Space from
the Remaining Premises, Tenant shall promptly reimburse Landlord's costs in
connection therewith, as additional rent under the Lease.

         2. EFFECTIVE DATE. The "Effective Date" herein shall be August 13,
1998.

                                      -1-

<PAGE>

3. PAYMENTS. Tenant shall continue to pay all rentals and other charges under
the Lease through the Effective Date. Thereafter, Tenant shall pay minimum or
base monthly rent in the amount of $11,221.33 for the Remaining Premises added
by Lease Amendment I.

         In addition, all rentals and any other charges based or computed on the
square footage of the Premises, including without limitation, real estate taxes,
insurance costs and operating expenses, shall be reduced proportionately to
reflect the decrease in square footage to 4,208 square feet of the space added
by Lease Amendment I.

         If any charges respecting the Reduction Space have not been determined
by the Effective Date, Tenant shall pay Landlord's reasonable estimate of such
charges, subject to adjustment after the actual charges have !en determined. If
the Lease requires payment of so-called "percentage rent", then the so-called
sales base, minimum annual volume, or percentage breakpoint amount shall be
reduced in proportion to the reduction in base or minimum rent hereunder.

4. REPRESENTATIONS. Each part represents to the other that it has full power and
authority to execute this agreement. Tenant represents that it has not made any
assignment, sublease, transfer, conveyance of the Lease or any interest therein
or in the Reduction Space, and further represents that there is not and will not
hereafter be any claim, demand, obligation, liability, action or cause of action
by any other party respecting, relating to or arising out of the Reduction
Space, and agrees to indemnify and hold harmless landlord and its partners,
agents and affiliates from all liabilities, expenses, claims, demands,
judgments, damages or costs arising from any of the same, including without
limitation attorney's fees. Tenant acknowledges that Landlord will be relying on
this Agreement in entering leases for the Reduction Space with other parties.

5. NO OFFER. This Agreement shall not be binding until executed and delivered by
both parties. This Agreement shall not be relied upon by any other party,
individual, corporation, partnership or other entity as a basis for reducing its
lease obligations with Landlord.

6. WHOLE AGREEMENT. No representations, promises or inducements have been made
by the parties other than as appear in this Agreement. Thus Agreement may not be
amended except in writing signed by both parties. As amended herein, the Lease
shall reamin in full force and effect.

7. NO DISCLOSURE. Tenant agrees that it shall not disclose any matters set forth
in this Agreement or disseminate or distribute any information concerning the
terms, details or conditions hereof to any person, firm or entity without
obtaining the express written consent of Landlord.

8. MISCELLANEOUS. Warranties, representations, agreements, and obligations
contained I nthis Agreement shall survive the execution and delivery of this
Agreement and shall survive any and all performances in accordance with this
Agreement. This Agreement may be executed in any number of counterparts which
together shall constitute this Agreement. If any party obtains a judgment
against any other party by reason of breach of this Agreement,

                                      -2-

<PAGE>

reasonable attorney's fees as fixed by the court shall be included in such
judgment. This Agreement and the terms and provisions hereof shall inure to the
benefit of and be binding upon the heirs, successors and assigns of the parties.
This Agreement shall be construed and enforce in accordance with the laws of the
state in which the Property is located.

9. GUARANTORS. This Agreement shall be of no force or effect unless and until
accepted by any guarantors of the Lease, who by signing below shall agree that
their guarantee shall apply to the Lease as amended herein, unless such
requirement is waived by Landlord in writing.

10. CONSENT. This agreement is subject to, and conditioned upon, any required
consent or approval being granted without any fee or charge that is unacceptable
to Landlord, by Landlord's mortgagees and ground lessors.

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

WITNESS; ATTESTATION                         LANDLORD:  260 Franklin, Inc.

(Two for each signatory required if
Property is in Florida or Ohio):

                                             By: /s/ Thomas M. Burdi
-----------------------------------            --------------------------------

                                             Its: Vice President
-----------------------------------            --------------------------------

                                             TENANT:  Corechange LLC

                                             By: /s/ Neil Gelfand
-----------------------------------            --------------------------------

                                             Its: CFO/SR V.P.
-----------------------------------            --------------------------------

                                             By:
-----------------------------------            --------------------------------

                                             Its:
-----------------------------------            --------------------------------

                                      -3-

<PAGE>

                                    EXHIBIT A

                                 REDUCTION SPACE

 [Graphic depicts a floorplan showing the layout of approximately 710 rentable
square feet located on the 19th floor of 260 Franklin Street, Boston,
Massachusetts]

                                      -1-

<PAGE>

                                    EXHIBIT B

                                 REMAINING SPACE

 [Graphic depicts a floorplan showing the layout of approximately 4,208 rentable
square feet located on the 19th floor of 260 Franklin Street, Boston,
Massachusetts]

                                      -2-

<PAGE>

                                 LEASE AMENDMENT

         THIS LEASE AMENDMENT made as of March 30th, 2000 between 260 FRANKLIN,
INC. ("Landlord") and CORECHANGE LLC ("Tenant").

                                   BACKGROUND

         Landlord and Tenant are the successor Landlord (the original Landlord
was 260 Franklin Street Associates Trust) and the Tenant, respectively, under a
Lease dated December 27, 1996, as amended (the "Lease"), covering certain
premises containing approximately 5,879 rentable square feet on the 18th floor
(the "Original Premises") at 260 Franklin Street, Boston, Massachusetts. The
parties desire to add space to the Premises under the Lease and to extend the
term of the Lease, as hereinafter set forth. Capitalized terms not defined
herein shall have the meaning ascribed to them in the Lease.

                                   WITNESSETH:

         NOW, THEREFORE, Landlord and Tenant hereby agree as follows:
         1. Effective as of April 1, 2000, there is hereby added to the Premises
under the Lease the space located on the 18th floor of the Building shown as the
"Additional Premises" on the plan attached hereto as EXHIBIT A (the "Additional
Premises"). The Additional Premises consists of approximately 1,953 rentable
square feet.

         2. Except as expressly provided herein, all terms and provisions of the
Lease shall be applicable to the Additional Premises, except:

            (a) Tenant shall accept the Additional Premises in its "as is"
            condition and Landlord shall have no obligation to construct any
            improvements or perform any work therein for Tenant's occupancy.
            Notwithstanding the foregoing, Landlord shall ensure that all
            systems and controls in the Additional Premises are in good working
            order as of commencement of the term of the Lease for the Additional
            Premises and shall deliver the Additional Premises in broom clean
            condition. Landlord represents that the Additional Premises is
            subject to a currently effective certificate of occupancy.

            (b) The term of the Lease for the Additional Premises shall expire
            on March 31, 2005. If Tenant does not exercise its option to extend
            the term of the Lease for the Original Premises effective April 1,
            2002, the Premises will then consist solely of the Additional
            Premises.

            (c) Effective as of April 1, 2000, the Premises shall consist of
            7,832 rentable square feet, and, while the Premises consists of both
            the Original Premises and the Additional Premises, Tenant's Pro Rata
            Share shall be 2.24%, and, if the Premises shall consist solely of
            the Additional Premises, Tenant's Pro Rata share shall be .56%.

                                      -1-

<PAGE>

            (d) The Base Rent for the Additional Premises shall be $8,788.50 per
            month, commencing on April 1, 2000. There shall be no free rent for
            the Additional Premises.

            (e) The Base Tax Year for the Additional Premises shall be the tax
            fiscal year ending June 30, 2000.

            (f) The Base Expense Year for the Additional Premises shall be
            calendar year 2000.

            (g) Landlord will reimburse Tenant up to an aggregate of $13,671 for
            the cost of design and construction of improvements in the
            Additional Premises performed prior to December 31, 2000. Landlord
            shall make such reimbursement upon delivery to it of receipted bills
            and lien waivers. Construction of improvements by Tenant shall
            comply with all terms and provisions of the Lease.

         3. If Tenant shall have exercised its option to extend the term of the
Lease for the Original Premises for the five year period beginning March 1,
2002, Tenant shall have the option to extend the term of the Lease for the
Additional Premises for one period of one (1) year and eleven (11) months,
provided (i) no default beyond applicable cure periods in the obligations of
Tenant under the Lease shall exist at the time such option is exercised and (ii)
Tenant shall give notice to Landlord of its exercise of such option prior to
March 31, 2004. All of the terms and provisions of the Lease shall be applicable
during such extended term except that (a) Tenant shall have no further option to
extend the term of the Lease for the Additional Premises and (b) Base Rent for
such extended term shall be the greater of (i) the Prevailing Rental Rate,
determined as provided in Rider 4 to the Lease, as of the first day of each such
extended term, or (ii) the Base Rent in effect immediately prior to such
extended term.

         4. Each of Landlord and Tenant represents and warrants to the other
that it has dealt with no broker or agent in connection with this Lease
Amendment other than Insignia/ESG and Jones Lang LaSalle.

         5. Except as expressly amended hereby, the Lease shall continue in full
force and effect as heretofore.

                                      -2-

<PAGE>

WITNESS the execution hereof as an instrument under seal as of the date first
above written.

                                    LANDLORD:

                                    260 FRANKLIN, INC.

                                    By: /s/ Thomas M. Burdi
                                       ------------------------------
                                        Its:  V.P.

                                    TENANT:

                                    CORECHANGE LLC

                                    By: /s/ [illegible]
                                       ------------------------------
                                        Its:  V.P. Finance and Administration
                                              for Ulf Arnetz, President and CEO

                                      -3-

<PAGE>

                                    EXHIBIT A

[Exhibit A has not been provided to Corechange]

                                      -4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]