Document:

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                                                                    Exhibit 10.3

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                             LEASE AGREEMENT BETWEEN

                     W9/TIB REAL ESTATE LIMITED PARTNERSHIP,

                                AS LANDLORD, AND

                                 ERUNWAY, INC.,

                                    AS TENANT

                            DATED AS OF JUNE __, 2000

                           WESTBOROUGH, MASSACHUSETTS

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                                           MASSACHUSETTS OFFICE LEASE FORM
                                           VERSION 13 - LAST REVISED AUGUST 1999

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                             BASIC LEASE INFORMATION

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<S>                              <C>
Lease Date:                      as of June ___, 2000.

Landlord:                        W9/TIB REAL ESTATE LIMITED PARTNERSHIP, a
                                 Delaware limited partnership.

Tenant:                          ERUNWAY, INC., a Delaware corporation.

Premises:                        Suite No. 310, containing 10,499 rentable
                                 square feet, in the building (the "BUILDING"),
                                 whose street address is 2000 West Park Drive,
                                 Westborough, Massachusetts. The Premises are
                                 shown cross-hatched on the plan attached to the
                                 Lease as Exhibit A. The term "Building"
                                 includes the land (the "LAND") on which the
                                 Building is located, and the driveways, parking
                                 facilities, and similar improvements located
                                 thereon.

Office Park:                     The buildings whose street address are 1500
                                 West Park Drive, Westborough, Massachusetts,
                                 1700 West Park Drive, Westborough,
                                 Massachusetts, 1800 West Park Drive,
                                 Westborough, Massachusetts, 1900 West Park
                                 Drive, Westborough, Massachusetts, and 2000
                                 West Park Drive, Westborough, Massachusetts,
                                 and the land on which such buildings are
                                 located and all other buildings or improvements
                                 now or hereafter located on such land. The
                                 parcels of land which presently comprise the
                                 Office Park (the "OFFICE PARK LAND") are
                                 described on Exhibit B attached hereto.

Term:                            Approximately 60 months, commencing on the
                                 Commencement Date and ending at 5:00 p.m. local
                                 time on the last day of the 60th full calendar
                                 month following the Commencement Date, subject
                                 to adjustment and earlier termination as
                                 provided in the Lease.

Commencement Date:               The earlier of (a) the date on which Tenant
                                 occupies any portion of the Premises and begins
                                 conducting business therein, or (b) July 1,
                                 2000 (provided, that if Landlord is unable to
                                 deliver possession of the Premises to Tenant by
                                 such date, then, as provided in Section 3 of
                                 the Lease, Tenant shall accept possession of
                                 the Premises on the date Landlord tenders
                                 possession thereof to Tenant, which date will
                                 then be the "Commencement Date").

Basic Rent:                      Basic Rent shall be the following amounts for
                                 the following periods of time:

                                 Lease Month   Monthly Basic Rent
                                 -----------   ------------------
                                 1 - 60            $21,872.92

                                 As used herein, the term "LEASE MONTH" shall
                                 mean each calendar month during the Term (and
                                 if the Commencement Date does not occur on the
                                 first day of a calendar month, the period from
                                 the Commencement Date to the first day of the
                                 next calendar month shall be included in the
                                 first Lease Month for purposes of determining
                                 the duration of the Term and the monthly Basic
                                 Rent rate applicable
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                                 for such partial month).

Security Deposit:                $262,475.04.

Additional Security Deposit:     $291,199.96

Rent:                            Basic Rent, Tenant's Proportionate Share of
                                 Taxes and Electrical Costs, Tenant's share of
                                 Additional Rent, and all other sums that Tenant
                                 may owe to Landlord or otherwise be required to
                                 pay under the Lease.

Permitted Use:                   General office use.

Tenant's Proportionate Share:    16.62%, which is the percentage obtained by
                                 dividing (a) the number of rentable square feet
                                 in the Premises as stated above by (b) 63,180,
                                 which is the number of rentable square feet in
                                 the Building. Landlord and Tenant stipulate
                                 that the number of rentable square feet in the
                                 Premises and in the Building set forth above
                                 shall be binding upon them.

Expense Stop:                    Operating Costs per rentable square foot in the
                                 Building for the calendar year 2000 (grossed up
                                 as provided in Section 4.(b)(6) of the Lease).

Base Tax Year:                   The fiscal year ending June 30, 2001.

Initial Liability Insurance
Amount:                          $3,000,000.00.
</TABLE>

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<TABLE>
<S>          <C>                                      <C>
Tenant's     Prior to Commencement Date:              Following Commencement Date:
Address:     eRunway, Inc.                            eRunvay, Inc.
             176 East Main Street                     2000 West Park Drive
             Westborough, Massachusetts 01581         Westborough, Massachusetts 01581
             Attention: Chief Financial Officer       Attention: Chief Financial Officer
             Telephone: 508-366-9955                  Telephone: 508-366-9955
             Telecopy: 508-366-9901                   Telecopy: 508-366-9901

Landlord's   For all Notices:                         With a copy to:
Address:     W9/TIB Real Estate Limited Partnership   W9/TIB Real Estate Limited Partnership
             c/o Archon Group, L.P.                   c/o Archon Group, L.P.
             1275 K Street, N. W., Suite 900          600 East Las Colinas Blvd., Suite 400
             Washington, D.C. 20005                   Irving, Texas 75039
             Attention: Asset Manager                 Attention: General Counsel - 2000
             Telephone: 202-216-5800                  West Park Drive, Westborough, Massachusetts
             Telecopy: 202-216-5801                   Telephone: 972-368-2200
                                                      Telecopy: 972-368-3199
</TABLE>

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The foregoing Basic Lease Information is incorporated into and made a part of
the Lease identified above. If any conflict exists between any Basic Lease
Information and the Lease, then the Lease shall control.

LANDLORD:                               W9/TIB REAL ESTATE LIMITED PARTNERSHIP,
                                        a Delaware limited partnership

                                        By: W9/TIB Gen-Par, Inc., a Delaware
                                            corporation, its general partner

                                        By: /s/ Stephen M. Abelman
                                            ------------------------------------
                                        Name: Stephen M. Abelman
                                        Title: Assistant Vice President

TENANT:                                 ERUNWAY, INC, a Delaware corporation

                                        By: /s/ JACK STEINKRAUSS
                                            ------------------------------------
                                        Name: JACK STEINKRAUSS
                                        Title: SVP

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                                TABLE OF CONTENTS

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                                                                            PAGE
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1. Definitions and Basic Provisions .....................................     1

2. Lease Grant; Common Areas ............................................     1

3. Tender of Possession .................................................     2

4. Rent .................................................................     2
   (a) Payment ..........................................................     2
   (b) Operating Costs; Taxes; Electrical Costs .........................     2
   (c) Tenant Inspection Right ..........................................     4

5. Delinquent Payment; Handling Charges .................................     5

6. Security Deposit .....................................................     5

7. Landlord's Obligations ...............................................     6
   (a) Services .........................................................     6
   (b) Excess Utility Use ...............................................     7
   (c) Restoration of Services ..........................................     7
   (d) Alternate Service Provide ........................................     7

8. Improvements; Alterations; Repairs; Maintenance ......................     8
   (a) Improvements; Alterations ........................................     8
   (b) Repairs; Maintenance .............................................     8
   (c) Performance of Work ..............................................     8
   (d) Mechanic's Liens .................................................     8

9. Use ..................................................................     9

10. Assignment and Subletting ...........................................     9
   (a) Transfers ........................................................     9
   (b) Consent Standards ................................................     9
   (c) Request for Consent ..............................................     9
   (d) Conditions to Consent ............................................    10
   (e) Cancellation .....................................................    10
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   (f) Additional Compensation ..........................................    10
   (g) Permitted Transfers ..............................................    10

11.Insurance; Waivers; Subrogation; Indemnity ...........................    11
   (a) Tenant's Insurance ...............................................    11
   (b) Landlord's Insurance .............................................    12
   (c) No Subrogation ...................................................    12
   (d) Indemnity ........................................................    12

12.Subordination; Attornment; Notice to Landlord's Mortgagee ............    12
   (a) Subordination ....................................................    12
   (b) Attornment .......................................................    13
   (c) Notice to Landlord's Mortgagee ...................................    13
   (d) Landlord's Mortgagee's Protection Provisions .....................    13

13.Rules and Regulations ................................................    13

14.Condemnation .........................................................    13
   (a) Total Taking .....................................................    13
   (b) Partial Taking-Tenant's Rights ...................................    13
   (c) Partial Taking-Landlord's Rights .................................    14
   (d) Award ............................................................    14

15.Fire or Other Casualty ...............................................    14
   (a) Repair Estimate ..................................................    14
   (b) Tenant's Rights ..................................................    14
   (c) Landlord's Rights ................................................    14
   (d) Repair Obligation ................................................    14
   (e) Abatement of Rent ................................................    15

16.Personal Property Taxes ..............................................    15

17.Events of Default ....................................................    15
   (a) Payment Default ..................................................    15
   (b) Abandonment ......................................................    15
   (c) Estoppel .........................................................    15
   (d) Other Defaults ...................................................    15
   (e) Insolvency .......................................................    15
   (e) Additional Security Deposit ......................................    16

18.Remedies .............................................................    16
   (a) Termination of Lease .............................................    16
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   (b) Termination of Possession ........................................    16
   (c) Alteration of Locks ..............................................    16

19.Payment by Tenant; Non-Waiver; Cumulative Remedies ...................    16
   (a) Payment by Tenant ................................................    16
   (b) No Waiver ........................................................    17
   (c) Cumulative Remedies ..............................................    17

20.Landlord's Lien ......................................................    17

21.Surrender of Premises ................................................    17

22.Holding Over .........................................................    18

23.Certain Rights Reserved by Landlord ..................................    18
   (a) Building Operations ..............................................    18
   (b) Security .........................................................    18
   (c) Prospective Purchasers and Lenders ...............................    18
   (d) Prospective Tenants ..............................................    18

24.[Intentionally Omitted] ..............................................    19

25.Miscellaneous ........................................................    19
   (a) Landlord Transfer ................................................    19
   (b) Landlord's Liability .............................................    19
   (c) Force Majeure ....................................................    19
   (d) Brokerage ........................................................    19
   (e) Estoppel Certificates ............................................    19
   (f) Notices ..........................................................    19
   (g) Separability .....................................................    19
   (h) Amendments; and Binding Effect ...................................    20
   (i) Quiet Enjoyment ..................................................    20
   (j) No Merger ........................................................    20
   (k) No Offer .........................................................    20
   (1) Entire Agreement .................................................    20
   (m) Waiver of Jury Trial .............................................    20
   (n) Governing Law ....................................................    20
   (o) Recording ........................................................    20
   (p) Joint and Several Liability ......................................    20
   (q) Financial Reports ................................................    20
   (r) Landlord's Fees ..................................................    21
   (s) Telecommunications ...............................................    21
   (t) Confidentiality ..................................................    21
</TABLE>

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   (u) Authority ........................................................    21
   (v) Hazardous Materials ..............................................    22
   (w) List of Exhibits .................................................    22

26.Other Provisions .....................................................    22
</TABLE>

                                      viii

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                                      LEASE

     THIS LEASE AGREEMENT (this "LEASE") is entered into as of
June _________________, 2000, between W9/TIB REAL ESTATE LIMITED PARTNERSHIP, a
Delaware limited partnership ("LANDLORD"), and ERUNWAY, INC., a Delaware
corporation ("TENANT").

     1. DEFINITIONS AND BASIC PROVISIONS. The definitions and basic provisions
set forth in the Basic Lease Information (the "BASIC LEASE INFORMATION")
executed by Landlord and Tenant contemporaneously herewith are incorporated
herein by reference for all purposes. Additionally, the following terms shall
have the following meanings when used in this Lease: "AFFILIATE" means any
person or entity which, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with the
party in question; "BUILDING'S STRUCTURE" means the Building's exterior walls,
roof, elevator shafts, footings, foundations, structural portions of
load-bearing walls, structural floors and subfloors, and structural columns and
beams; "BUILDING'S SYSTEMS" means the Building's HVAC, life-safety, plumbing,
electrical, and mechanical systems; "INCLUDING" means including, without
limitation; "LAWS" means all federal, state, and local laws, rules and
regulations, all court orders, governmental directives, and governmental orders,
and all restrictive covenants affecting the Building, and "LAW" shall mean any
of the foregoing; and "TENANT PARTY" means any of the following persons: Tenant;
any assignees claiming by, through, or under Tenant; any subtenants claiming by,
through, or under Tenant; and any of their respective agents, contractors,
employees, and invitees.

     2. LEASE GRANT; COMMON AREAS. Subject to the terms of this Lease, Landlord
leases to Tenant, and Tenant leases from Landlord, the Premises.

     Tenant shall have the non-exclusive right during the Term to use the Common
Areas (as defined below) for itself, its employees, agents, customers, invitees
and licensees. The phrase "COMMON AREAS" as used herein shall mean the portions
of the Building which are from time to time designated and improved for common
use by or for the benefit of more than one tenant of the Building, including,
but not limited to, any of the following: the land and facilities used as
parking areas, access and perimeter roads, landscaping areas, exterior walks,
stairways, ramps, interior corridors, stairs, but excluding any portion thereof
when designated by Landlord for a non-common use. All Common Areas shall be
subject to the exclusive control and management of Landlord. Landlord shall have
the right to (i) to close, if necessary, all or any portion of the Common Areas
to such extent as may be legally necessary to prevent a dedication thereof or
the accrual of any rights of any person or of the public therein; (ii) to close
temporarily all or any portion of the Common Areas to discourage non-tenant use;
(iii) to use portions of the Common Areas while engaged in making additional
improvements or repairs or alterations to the Building; and (iv) to do and
perform such other acts in, to and with respect to the Common Areas as Landlord
shall determine to be appropriate for the Building. Landlord shall have the
right to increase the size of the Common Areas, including the expansion thereof
to adjacent property, to reduce the Common Area, to reconfigure the parking
spaces and improvements on the Common Areas, and to make such changes therein
and thereto from time to time which in Landlord's opinion are desirable and in
the best interests of all persons using the Common Areas. Any portion of the
Building not originally included within the Common Areas shall be so included if
and when so designated by Landlord for common use. Tenant shall use and shall
use reasonable efforts to cause its agents, employees, invitees, vendors,
suppliers and independent contractors to use such access roads and operate
trucks and trailers delivering merchandise to and from the Premises upon and
over such access roads as are designated by Landlord as a means of ingress to
and egress from the Premises. Landlord may establish a system or systems of
validation or other type of operation to control the parking areas within

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the Common Areas. Nothing contained in this Lease shall prohibit or otherwise
restrict Landlord from changing, from time to time, the location, layout or type
of parking areas within the Common Areas.

     3. TENDER OF POSSESSION. Landlord and Tenant presently anticipate that
possession of the Premises will be tendered to Tenant (with the Work to be
performed by Landlord therein, if any, Substantially Completed) on or about July
1, 2000 (the "ESTIMATED DELIVERY DATE"). If Landlord is unable to tender
possession of the Premises in such condition to Tenant by the Estimated Delivery
Date, then (a) Landlord shall not be in default hereunder or be liable for
damages therefor, and (b) Tenant shall accept possession of the Premises when
Landlord tenders possession thereof to Tenant. By occupying the Premises, Tenant
shall be deemed to have accepted the Premises in their condition as of the date
of such occupancy, subject to the performance of punch-list items that remain to
be performed by Landlord, if any. Tenant shall execute and deliver to Landlord,
within 10 days after Landlord has requested the same, a letter substantially in
the form of Exhibit E hereto confirming (1) the Commencement Date and the
expiration date of the initial Term, (2) that Tenant has accepted the Premises,
and (3) that Landlord has performed all of its obligations with respect to the
Premises (except for punch-list items specified in such letter). Occupancy of
the Premises by Tenant prior to the Commencement Date shall be subject to all of
the provisions of this Lease excepting only those requiring the payment of Basic
Rent, Additional Rent, Taxes and Electrical Costs (each as defined herein).

     4. RENT.

          (a) PAYMENT. Tenant shall timely pay to Landlord Rent, without notice,
demand, deduction or set off (except as otherwise expressly provided herein), at
Landlord's address provided for in this Lease or as otherwise specified by
Landlord and shall be accompanied by all applicable state and local sales or use
taxes. Basic Rent, adjusted as herein provided, shall be payable monthly in
advance. The first monthly installment of Basic Rent shall be payable
contemporaneously with the execution of this Lease; thereafter, Basic Rent shall
be payable on the first day of each month beginning on the first day of the
second full calendar month of the Term. The monthly Basic Rent for any partial
month at the beginning of the Term shall equal the product of 1/365 of the
annual Basic Rent in effect during the partial month and the number of days in
the partial month from and after the Commencement Date, and shall be due on the
Commencement Date.

          (b) OPERATING COSTS; TAXES; ELECTRICAL COSTS.

               (1) Tenant shall pay to Landlord the amount (per each rentable
     square foot in the Premises) ("ADDITIONAL RENT") by which the annual
     Operating Costs (defined below) per rentable square foot in the Building
     exceed the Expense Stop (per rentable square foot in the Building).
     Landlord may make a good faith estimate of the Additional Rent to be due by
     Tenant for any calendar year or part thereof during the Term. During each
     calendar year or partial calendar year of the Term (after the base year, if
     the Expense Stop is calculated on a base year basis), Tenant shall pay to
     Landlord, in advance concurrently with each monthly installment of Basic
     Rent, an amount equal to the estimated Additional Rent for such calendar
     year or part thereof divided by the number of months therein. From time to
     time, Landlord may estimate and re-estimate the Additional Rent to be due
     by Tenant and deliver a copy of the estimate or re-estimate to Tenant.
     Thereafter, the monthly installments of Additional Rent payable by Tenant
     shall be appropriately adjusted in accordance with the estimations so that,
     by the end of the calendar year in question, Tenant shall have paid all of
     the Additional Rent as estimated by Landlord. Any amounts paid based on
     such an estimate shall be subject to adjustment as herein provided when
     actual Operating Costs are available for each calendar year.

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               (2) The term "OPERATING COSTS" shall mean all expenses and
     disbursements (subject to the limitations set forth below) that Landlord
     incurs in connection with the ownership, operation, and maintenance of the
     Building, determined in accordance with sound accounting principles
     consistently applied, including the following costs: (A) wages and salaries
     (including management fees) of all on-site employees at or below the grade
     of senior building manager engaged in the operation, maintenance or
     security of the Building (together with Landlord's reasonable allocation of
     expenses of off-site employees at or below the grade of senior building
     manager who perform a portion of their services in connection with the
     operation, maintenance or security of the Building), including taxes,
     insurance and benefits relating thereto; (B) all supplies and materials
     used in the operation, maintenance, repair, replacement, and security of
     the Building; (C) costs for improvements made to the Building which,
     although capital in nature, are expected to reduce the normal operating
     costs (including all utility costs) of the Building, as amortized using a
     commercially reasonable interest rate over the time period reasonably
     estimated by Landlord to recover the costs thereof taking into
     consideration the anticipated cost savings, as determined by Landlord using
     its good faith, commercially reasonable judgment, as well as capital
     improvements made in order to comply with any Law hereafter promulgated by
     any governmental authority or any interpretation hereafter rendered with
     respect to any existing Law, as amortized using a commercially reasonable
     interest rate over the useful economic life of such improvements as
     determined by Landlord in its reasonable discretion; (D) cost of all
     utilities, except Electrical Costs and the cost of other utilities
     reimbursable to Landlord by the Building's tenants other than pursuant to a
     provision similar to this Section 4.(b); (E) insurance expenses; (F)
     repairs, replacements, and general maintenance of the Building; and (G)
     service or maintenance contracts with independent contractors for the
     operation, maintenance, repair, replacement, or security of the Building
     (including alarm service, window cleaning, and elevator maintenance).

          Operating Costs shall also include the Building's pro rata share of
     the costs of operating, managing, maintaining and cleaning (including,
     without limitation, snow and ice removal) the common areas and facilities
     of the Office Park shared by the Building and other buildings in the Office
     Park, including, without limitation, the costs of landscaping, insurance,
     security, snow plowing/sanding; the cost of maintaining and repairing the
     entrance and side roads and sidewalks within the Office Park, the drainage
     system, the Office Park directory and signage, the irrigation system and
     the street lights: and the cost of providing electricity to the street
     lights. The Building's pro rata share (as referred to in the preceding
     sentence) shall be equal to a fraction, the numerator of which is the total
     number of rentable square feet of floor area in the Building and the
     denominator of which is the total number of rentable square feet of floor
     area in all the buildings in the Office Park, from time to time.

          Operating Costs shall not include costs for (i) capital improvements
     made to the Building, other than capital improvements described in Section
     4.(b)(2)(C) and except for items which are generally considered maintenance
     and repair items, such as painting of common areas, replacement of carpet
     in elevator lobbies, and the like; (ii) repair, replacements and general
     maintenance paid by proceeds of insurance or by Tenant or other third
     parties; (iii) interest, amortization or other payments on loans to
     Landlord; (iv) depreciation; (v) leasing commissions; (vi) legal expenses
     for services, other than those that benefit the Building tenants generally
     (e.g., tax disputes); (vii) renovating or otherwise improving space for
     occupants of the Building or vacant space in the Building; (viii) Taxes;
     and (ix) federal income taxes imposed on or measured by the income of
     Landlord from the operation of the Building. If the Expense Stop is
     calculated on a base year basis, Operating Costs for the base year only
     shall not include market-wide labor-rate increases due to extraordinary
     circumstances, including boycotts and strikes; utility rate increases due
     to extraordinary circumstances, including conservation surcharges,
     boycotts, embargos or other

                                        3
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     shortages; or amortized costs relating to capital improvements.

               (3) Tenant shall also pay its Proportionate Share of any increase
     in Taxes for each year and partial year falling within the Term over the
     Taxes for the Base Tax Year. Tenant shall pay its Proportionate Share of
     Taxes in the same manner as provided above for Additional Rent with regard
     to Operating Costs. "TAXES" shall mean taxes, assessments, and governmental
     charges or fees whether federal, state, county or municipal, and whether
     they be by taxing districts or authorities presently taxing or by others,
     subsequently created or otherwise, and any other taxes and assessments
     (including non-governmental assessments for common charges under a
     restrictive covenant or other private agreement that are not treated as
     part of Operating Costs) now or hereafter attributable to the Building (or
     its operation), excluding, however, penalties and interest thereon and
     federal and state taxes on income (if the present method of taxation
     changes so that in lieu of the whole or any part of any Taxes, there is
     levied on Landlord a capital tax directly on the rents received therefrom
     or a franchise tax, assessment, or charge based, in whole or in part, upon
     such rents for the Building, then all such taxes, assessments, or charges,
     or the part thereof so based, shall be deemed to be included within the
     term "Taxes" for purposes hereof). Taxes shall include the costs of
     consultants retained in an effort to lower taxes and all costs incurred in
     disputing any taxes or in seeking to lower the tax valuation of the
     Building. For property tax purposes, Tenant waives all rights to protest or
     appeal the appraised value of the Premises, as well as the Building, and
     all rights to receive notices of reappraisement.

               (4) Tenant shall also pay to Landlord Tenant's Proportionate
     Share of the cost of all electricity used by the Building ("ELECTRICAL
     COSTS"). Such amount shall be payable in monthly installments on the
     Commencement Date and on the first day of each calendar month thereafter.
     Each installment shall be based on Landlord's estimate of the amount due
     for each month. From time to time during any calendar year, Landlord may
     estimate or re-estimate the Electrical Costs to be due by Tenant for that
     calendar year and deliver a copy of the estimate or re-estimate to Tenant.
     Thereafter, the monthly installments of Electrical Costs payable by Tenant
     shall be appropriately adjusted in accordance with the estimations.

               (5) By April 1 of each calendar year, or as soon thereafter as
     practicable, Landlord shall furnish to Tenant a statement of Operating
     Costs and Electrical Costs for the previous year, in each case adjusted as
     provided in Section 4.(b)(6), and of the Taxes for the previous year (the
     "OPERATING COSTS AND TAX STATEMENT"). If the Operating Costs and Tax
     Statement reveals that Tenant paid more for Operating Costs or Electrical
     Costs than the actual amount for the year for which such statement was
     prepared, or more than its actual share of Taxes for such year, then
     Landlord shall promptly credit or reimburse Tenant for such excess;
     likewise, if Tenant paid less than Tenant's actual Proportionate Share of
     Additional Rent or share of Taxes due, then Tenant shall promptly pay
     Landlord such deficiency.

               (6) With respect to any calendar year or partial calendar year in
     which the Building is not occupied to the extent of 95% of the rentable
     area thereof, the Operating Costs and Electrical Costs for such period
     shall, for the purposes hereof, be increased to the amount which would have
     been incurred had the Building been occupied to the extent of 95% of the
     rentable area thereof.

          (c) TENANT INSPECTION RIGHT. Provided no Event of Default then exists
after receiving an annual Operating Costs and Tax Statement and giving Landlord
30 days' prior written notice thereof, Tenant may inspect or audit Landlord's
records relating to Operating Costs for the period of time covered by such
Operating Costs and Tax Statement in accordance with the following provisions.

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If Tenant fails to object to the calculation of Operating Costs on an annual
Operating Costs and Tax Statement within 30 days after the statement has been
delivered to Tenant, or if Tenant fails to conclude its audit or inspection
within 90 days after the statement has been delivered to Tenant, then Tenant
shall have waived its right to object to the calculation of Operating Costs for
the year in question and the calculation of Operating Costs set forth on such
statement shall be final. Tenant's audit or inspection shall be conducted where
Landlord maintains its books and records, shall not unreasonably interfere with
the conduct of Landlord's business, and shall be conducted only during business
hours reasonably designated by Landlord. Tenant shall pay the cost of such audit
or inspection, including $150 per hour of Landlord's or the building manager's
employee time devoted to such inspection or audit, to reimburse Landlord for its
overhead costs allocable to the inspection or audit, unless the total Operating
Costs for the period in question is determined to be in error by more than 5% in
the aggregate, and, as a result thereof, Tenant paid to Landlord $1.00 per
square foot in the Premises more than the actual Operating Costs due for such
period, in which case Landlord shall pay the audit cost (not to exceed the
amount Tenant was overcharged for the period in question). Tenant may not
conduct an inspection or have an audit performed more than once during any
calendar year. Tenant or the accounting firm conducting such audit shall, at no
charge to Landlord, submit its audit report in draft form to Landlord for
Landlord's review and comment before the final approved audit report is
submitted to Landlord, and any reasonable comments by Landlord shall be
incorporated into the final audit report. If such inspection or audit reveals
that an error was made in the Operating Costs previously charged to Tenant, then
Landlord shall refund to Tenant any overpayment of any such costs, or Tenant
shall pay to Landlord any underpayment of any such costs, as the case may be,
within 30 days after notification thereof. Provided Landlord's accounting for
Operating Costs is consistent with the terms of this Lease, Landlord's good
faith judgment regarding the proper interpretation of this Lease and the proper
accounting for Operating Costs shall be binding on Tenant in connection with any
such audit or inspection. Tenant shall maintain the results of each such audit
or inspection confidential and shall not be permitted to use any third party to
perform such audit or inspection, other than an independent firm of certified
public accountants (1) reasonably acceptable to Landlord, (2) which is not
compensated on a contingency fee basis or in any other manner which is dependent
upon the results of such audit or inspection (and Tenant shall deliver the fee
agreement or other similar evidence of such fee arrangement to Landlord upon
request), and (3) which agrees with Landlord in writing to maintain the results
of such audit or inspection confidential. Notwithstanding the foregoing, Tenant
shall have no right to conduct an audit if Landlord furnishes to Tenant an audit
report for the period of time in question prepared by an independent certified
public accounting firm of recognized national standing (whether originally
prepared for Landlord or another party). Nothing in this Section 4.(c) shall be
construed to limit, suspend or abate Tenant's obligation to pay Rent, including
Additional Rent, when due.

     5. DELINQUENT PAYMENT; HANDLING CHARGES. All past due payments required of
Tenant hereunder shall bear interest from the date due until paid at the lesser
of 18% per annum or the maximum lawful rate of interest; additionally, Landlord
may charge Tenant a fee equal to 5% of the delinquent payment to reimburse
Landlord for its cost and inconvenience incurred as a consequence of Tenant's
delinquency. In no event, however, shall the charges permitted under this
Section 5 or elsewhere in this Lease, to the extent they are considered to be
interest under applicable Law, exceed the maximum lawful rate of interest.
Notwithstanding the foregoing, the late fee referenced above shall not be
charged with respect to the first occurrence (but not any subsequent occurrence)
during any 12-month period that Tenant fails to make payment when due, until 5
days after Landlord delivers written notice of such delinquency to Tenant.

     6. SECURITY DEPOSIT. Contemporaneously with the execution of this Lease,
Tenant shall pay to Landlord the Security Deposit, which shall be held by
Landlord to secure Tenant's performance of its obligations under this Lease. The
Security Deposit is not an advance payment of Rent or a measure or limit

                                        5

<PAGE>

of Landlord's damages upon an Event of Default (as defined herein). Landlord
may, from time to time following an Event of Default and without prejudice to
any other remedy, use all or a part of the Security Deposit to perform any
obligation Tenant fails to perform hereunder. Following any such application of
the Security Deposit, Tenant shall pay to Landlord on demand the amount so
applied in order to restore the Security Deposit to its original amount.
Provided that Tenant has performed all of its obligations hereunder, Landlord
shall, within 30 days after the Term ends, return to Tenant the portion of the
Security Deposit which was not applied to satisfy Tenant's obligations. The
Security Deposit may be commingled with other funds, and no interest shall be
paid thereon. If Landlord transfers its interest in the Premises and the
transferee assumes Landlord's obligations under this Lease, then Landlord may
assign the Security Deposit to the transferee and Landlord thereafter shall have
no further liability for the return of the Security Deposit.

     In lieu of a Security Deposit in immediately available funds, Tenant may
deliver to Landlord a standby, unconditional, irrevocable letter of credit in
the face amount of the Security Deposit, naming Landlord as beneficiary, issued
by any of the 5 largest national banking associations with banking offices in
Dallas, Texas, permitting partial draws thereon, and otherwise in the form of
Exhibit J attached hereto or another form reasonably acceptable to Landlord.
Tenant shall from time to time cause its letter of credit to be renewed no later
than 30 days prior to any expiration date thereof so that its letter of credit
remains in effect for 30 days after the scheduled expiration date of the Term or
any renewal Term; if Tenant fails timely to renew its letter of credit, then
Landlord shall have the right to draw thereon, and retain the amounts so drawn
as the Security Deposit. Landlord may draw upon the letter of credit and apply
the proceeds thereof to perform any of Tenant's unperformed obligations under
this Lease. After any such draw, Tenant shall pay to Landlord on demand the
amount so drawn to be held as part of the Security Deposit. Tenant hereby
irrevocably appoints Landlord its true and lawful attorney-in-fact, such power
of attorney being coupled with an interest, with full power of substitution, to
do any one or more of the following in its sole discretion upon the occurrence
of an Event of Default under the Lease: (a) demand, collect, receive, sue for,
compound and give acquittance for any and all amounts which may be or become due
or payable with respect to the letter of credit and all funds evidenced thereby,
(b) execute any and all withdrawal receipts or others orders for the payment of
monies drawn from the letter of credit, (c) endorse the name of Tenant on all
commercial paper given in payment or in partial payment of the letter of credit,
(d) file any claim or institute any proceeding with respect to the letter of
credit, (e) transfer the letter of credit into the name of Landlord or its
nominee, and (f) take any other action which Landlord may deem necessary or
appropriate to protect and preserve the right, title, and interest of Landlord
under the Lease. To further secure Tenant's obligations under the Lease, Tenant
hereby pledges to Landlord and grants to Landlord a security interest in, the
letter of credit, and all renewals and replacements thereof, and proceeds
therefrom.

     7. LANDLORD'S OBLIGATIONS.

          (a) SERVICES. Landlord shall use all reasonable efforts to furnish to
Tenant (1) water at those points of supply provided for general use of tenants
of the Building; (2) heated and refrigerated air conditioning ("HVAC") as
appropriate, at such temperatures and in such amounts as are standard for
comparable buildings in the vicinity of the Building; (3) janitorial service to
the Premises on weekdays, other than holidays, for Building-standard
installations and such window washing as may from time to time be reasonably
required; (4) elevators for ingress and egress to the floor on which the
Premises are located, in common with other tenants, provided that Landlord may
reasonably limit the number of operating elevators during non-business hours and
holidays; and (5) electrical current during normal business hours for equipment
that does not require more than 110 volts and whose electrical energy
consumption does not exceed normal office usage. Landlord shall maintain the
common areas of the Building in reasonably good order and condition, except for
damage caused by a Tenant Party. If Tenant desires any of the services specified
in Section 7(a)(2): (A) at any time other than between 8:00 a.m. and 5:30 p.m.
on weekdays

                                        6

<PAGE>

(other than holidays), or (B) on Saturdays, Sundays or holidays, then such
services (i.e, after-hour HVAC services) shall be supplied to Tenant upon the
written request of Tenant delivered to Landlord before 3:00 p.m. on the business
day preceding such extra usage, and Tenant shall pay to Landlord the cost of
such services within 30 days after Landlord has delivered to Tenant an invoice
therefor. The costs incurred by Landlord in providing after-hour HVAC service to
Tenant shall include costs for electricity, water, sewage, water treatment,
labor, metering, filtering, and maintenance reasonably allocated by Landlord to
providing such service.

          (b) EXCESS UTILITY USE. Landlord shall not be required to furnish
electrical current for equipment that requires more than 110 volts or other
equipment whose electrical energy consumption exceeds normal office usage. If
Tenant's requirements for or consumption of electricity exceed the electricity
to be provided by Landlord as described in Section 7.(a), Landlord shall, at
Tenant's expense, make reasonable efforts to supply such service through the
then-existing feeders and risers serving the Building and the Premises, and
Tenant shall pay to Landlord the cost of such service within 30 days after
Landlord has delivered to Tenant an invoice therefor. Landlord may determine the
amount of such additional consumption and potential consumption by any
verifiable method, including installation of a separate meter in the Premises
installed, maintained, and read by Landlord, at Tenant's expense. Tenant shall
not install any electrical equipment requiring special wiring or requiring
voltage in excess of 110 volts or otherwise exceeding Building capacity unless
approved in advance by Landlord. The use of electricity in the Premises shall
not exceed the capacity of existing feeders and risers to or wiring in the
Premises. Any risers or wiring required to meet Tenant's excess electrical
requirements shall, upon Tenant's written request, be installed by Landlord, at
Tenant's cost, if, in Landlord's judgment, the same are necessary and shall not
cause permanent damage to the Building or the Premises, cause or create a
dangerous or hazardous condition, entail excessive or unreasonable alterations,
repairs, or expenses, or interfere with or disturb other tenants of the
Building. If Tenant uses machines or equipment in the Premises which affect the
temperature otherwise maintained by the air conditioning system or otherwise
overload any utility, Landlord may install supplemental air conditioning units
or other supplemental equipment in the Premises, and the cost thereof, including
the cost of installation, operation, use, and maintenance, shall be paid by
Tenant to Landlord within 30 days after Landlord has delivered to Tenant an
invoice therefor.

          (c) RESTORATION OF SERVICES. Landlord shall use reasonable efforts to
restore any service required of it that becomes unavailable; however, such
unavailability shall not render Landlord liable for any damages caused thereby,
be a constructive eviction of Tenant, constitute a breach of any implied
warranty, or entitle Tenant to any abatement of Tenant's obligations hereunder.

          (d) ALTERNATE SERVICE PROVIDER. Landlord has advised Tenant that
presently Massachusetts Electric Company (the "ELECTRIC SERVICE PROVIDER") is
the electric utility company selected by Landlord to provide electricity service
for the Building. Notwithstanding the foregoing, Landlord reserves the right at
any time and from time to time before or during the Term to either contract for
electric service from a different company or companies providing electricity
service (each such company shall hereinafter be referred to as an "ALTERNATIVE
SERVICE PROVIDER") or continue to contact for electricity service from the
Electric Service Provider. Tenant shall cooperate with Landlord, the Electric
Service Provider and any Alternative Service Provider at all times and, as
reasonably necessary, shall allow Landlord, the Electric Service Provider and
any Alternative Service Provider reasonable access to the Building's electric
lines, feeders, risers, wiring and other machinery within the Premises.

                                        7

<PAGE>

     8. IMPROVEMENTS; ALTERATIONS; REPAIRS; MAINTENANCE.

          (a) IMPROVEMENTS; ALTERATIONS. Improvements to the Premises shall be
installed at Tenant's expense only in accordance with plans and specifications
which have been previously submitted to and approved in writing by Landlord,
which approval shall be governed by standards in the following sentence. No
alterations or physical additions in or to the Premises may be made without
Landlord's prior written consent, which shall not be unreasonably withheld or
delayed; however, Landlord may withhold its consent to any alteration or
addition that would adversely affect (in the reasonable discretion of Landlord)
(1) the Building's Structure or the Building's Systems (including the Building's
restrooms or mechanical rooms), (2) the exterior appearance of the Building, or
(3) the appearance of the Building's common areas or elevator lobby areas.
Tenant shall not paint or install lighting or decorations, signs, window or door
lettering, or advertising media of any type on or about the Premises without
the prior written consent of Landlord, which shall not be unreasonably withheld
or delayed; however, Landlord may withhold its consent to any such painting or
installation which, would affect the appearance of the exterior of the Building
or of any common areas of the Building. All alterations, additions, and
improvements shall be constructed, maintained, and used by Tenant at its risk
and expense, in accordance with all Laws; Landlord's consent to or approval of
any alterations, additions or improvements (or the plans therefor) shall not
constitute a representation or warranty by Landlord, nor Landlord's acceptance,
that the same comply with sound architectural and/or engineering practices or
with all applicable Laws, and Tenant shall be solely responsible for ensuring
all such compliance.

          (b) REPAIRS; MAINTENANCE. Tenant shall maintain the Premises in a
clean, safe, and operable condition, and shall not permit or allow to remain any
waste or damage to any portion of the Premises. Tenant shall repair or replace,
subject to Landlord's direction and supervision, any damage to the Building
caused by a Tenant Party. If Tenant fails to make such repairs or replacements
within 15 days after the occurrence of such damage, then Landlord may make the
same at Tenant's cost. If any such damage occurs outside of the Premises, then
Landlord may elect to repair such damage at Tenant's expense, rather than having
Tenant repair such damage. The cost of all repair or replacement work performed
by Landlord under this Section 8 shall be paid by Tenant to Landlord within 30
days after Landlord has invoiced Tenant therefor.

          (c) PERFORMANCE OF WORK. All work described in this Section 8 shall be
performed only by Landlord or by contractors and subcontractors approved in
writing by Landlord. Tenant shall cause all contractors and subcontractors to
procure and maintain insurance coverage naming Landlord as an additional insured
against such risks, in such amounts, and with such companies as Landlord may
reasonably require. All such work shall be performed in accordance with all Laws
and in a good and workmanlike manner so as not to damage the Building (including
the Premises, the Building's Structure and the Building's Systems). All such
work which may affect the Building's Structure or the Building's Systems must be
approved by the Building's engineer of record, at Tenant's expense and, at
Landlord's election, must be performed by Landlord's usual contractor for such
work. Tenant shall provide sworn statements, including the names, addresses and
copies of contracts for all contractors, and upon completion of any work shall
promptly furnish Landlord with sworn owner's and contractor's statements and
full and final waivers of lien covering all labor and materials included in the
work in question.

          (d) MECHANIC'S LIENS. Tenant shall not permit any mechanic's liens to
be filed against the Premises or the Building for any work performed, materials
furnished, or obligation incurred by or at the request of Tenant. If such a lien
is filed, then Tenant shall, within 10 days after Landlord has delivered notice
of the filing thereof to Tenant (or such earlier time period as may be necessary
to prevent the forfeiture of the Building or any interest of Landlord therein or
the imposition of a civil or criminal fine

                                        8

<PAGE>

with respect thereto), either (1) pay the amount of the lien and cause the lien
to be released of record, or (2) diligently contest such lien and deliver to
Landlord a bond or other security reasonably satisfactory to Landlord. If Tenant
fails to timely take either such action, then Landlord may pay the lien claim,
and any amounts so paid, including expenses and interest, shall be paid by
Tenant to Landlord within ten days after Landlord has invoiced Tenant therefor.
All materialmen, contractors, artisans, mechanics, laborers and any other
persons now or hereafter contracting with Tenant or any contractor or
subcontractor of Tenant for the furnishing of any labor, services, materials,
supplies or equipment with respect to any portion of the Premises, at any time
from the date hereof until the end of the Term, are hereby charged with notice
that they look exclusively to Tenant to obtain payment for same. Nothing herein
shall be deemed a consent by Landlord to any liens being placed upon the
Building or Landlord's interest therein due to any work performed by or for
Tenant.

     9. USE. Tenant shall continuously occupy and use the Premises only for the
Permitted Use and shall comply with all Laws relating to the use, condition,
access to, and occupancy of the Premises. The population density within the
Premises as a whole shall at no time exceed one person for each 300 rentable
square feet in the Premises. Tenant shall not conduct second or third shift
operations within the Premises; however, Tenant may use the Premises after
normal business hours, so long as Tenant is not generally conducting business
from the Premises after normal business hours. The Premises shall not be used
for any use which is disreputable, creates extraordinary fire hazards, or
results in an increased rate of insurance on the Building or its contents, or
for the storage of any Hazardous Materials (other than typical office supplies
[e.g., photocopier toner] and then only in compliance with all Laws). Tenant
shall not use any substantial portion of the Premises for a "call center," any
other telemarketing use, or any credit processing use. If, because of a Tenant
Party's acts, the rate of insurance on the Building or its contents increases,
then such acts shall be an Event of Default, Tenant shall pay to Landlord the
amount of such increase on demand, and acceptance of such payment shall not
waive any of Landlord's other rights. Tenant shall conduct its business and
control each other Tenant Party so as not to create any nuisance or unreasonably
interfere with other tenants or Landlord in its management of the Building.

     10. ASSIGNMENT AND SUBLETTING.

          (a) TRANSFERS. Except as provided in Section 10.(g), Tenant shall not,
without the prior written consent of Landlord, (1) assign, transfer, or encumber
this Lease or any estate or interest herein, whether directly or by operation of
law, (2) permit any other entity to become Tenant hereunder by merger,
consolidation, or other reorganization, (3) if Tenant is an entity other than a
corporation whose stock is publicly traded, permit the transfer of an ownership
interest in Tenant so as to result in a change in the current control of Tenant,
(4) sublet any portion of the Premises, (5) grant any license, concession, or
other right of occupancy of any portion of the Premises, or (6) permit the use
of the Premises by any parties other than Tenant (any of the events listed in
Section 10.(a)(l)through 10.(a)(6) being a "TRANSFER").

          (b) CONSENT STANDARDS. Landlord shall not unreasonably withhold its
consent to any assignment or subletting of the Premises, provided that the
proposed transferee (A) is creditworthy, (B) has a good reputation in the
business community, (C) will use the Premises for the Permitted Use (thus,
excluding, without limitation, uses for credit processing and telemarketing) and
will not use the Premises in any manner that would conflict with any exclusive
use agreement or other similar agreement entered into by Landlord with any other
tenant of the Building, (D) is not a governmental entity, or subdivision or
agency thereof, and (E) is not another occupant of the Building or person or
entity with whom Landlord is negotiating to lease space in the Building;
otherwise, Landlord may withhold its consent in its sole discretion.

          (c) REQUEST FOR CONSENT. If Tenant requests Landlord's consent to a
Transfer, then, at

                                        9
<PAGE>

least 15 business days prior to the effective date of the proposed Transfer,
Tenant shall provide Landlord with a written description of all terms and
conditions of the proposed Transfer, copies of the proposed documentation, and
the following information about the proposed transferee: name and address;
reasonably satisfactory information about its business and business history; its
proposed use of the Premises; banking, financial, and other credit information;
and general references sufficient to enable Landlord to determine the proposed
transferee's creditworthiness and character. Concurrently with Tenant's notice
of any request for consent to a Transfer, Tenant shall pay to Landlord a fee of
$1,000 to defray Landlord's expenses in reviewing such request, and Tenant shall
also reimburse Landlord immediately upon request for its reasonable attorneys'
fees incurred in connection with considering any request for consent to a
Transfer.

          (d) CONDITIONS TO CONSENT. If Landlord consents to a proposed
Transfer, then the proposed transferee shall deliver to Landlord a written
agreement whereby it expressly assumes Tenant's obligations hereunder; however,
any transferee of less than all of the space in the Premises shall be liable
only for obligations under this Lease that are properly allocable to the space
subject to the Transfer for the period of the Transfer. No Transfer shall
release Tenant from its obligations under this Lease, but rather Tenant and its
transferee shall be jointly and severally liable therefor. Landlord's consent to
any Transfer shall not waive Landlord's rights as to any subsequent Transfers.
If an Event of Default occurs while the Premises or any part thereof are subject
to a Transfer, then Landlord, in addition to its other remedies, may collect
directly from such transferee all rents becoming due to Tenant and apply such
rents against Rent. Tenant authorizes its transferees to make payments of rent
directly to Landlord upon receipt of notice from Landlord to do so following the
occurrence of an Event of Default hereunder. Tenant shall pay for the cost of
any demising walls or other improvements necessitated by a proposed subletting
or assignment.

          (e) CANCELLATION. Landlord may, within 30 days after submission of
Tenant's written request for Landlord's consent to an assignment or subletting,
cancel this Lease as to the portion of the Premises proposed to be sublet or
assigned as of the date the proposed Transfer is to be effective. If Landlord
cancels this Lease as to any portion of the Premises, then this Lease shall
cease for such portion of the Premises and Tenant shall pay to Landlord all
Rent accrued through the cancellation date relating to the portion of the
Premises covered by the proposed Transfer. Thereafter, Landlord may lease such
portion of the Premises to the prospective transferee (or to any other person)
without liability to Tenant.

          (f) ADDITIONAL COMPENSATION. Tenant shall pay to Landlord, immediately
upon receipt thereof, the excess of (1) all compensation received by Tenant for
a Transfer less the costs reasonably incurred by Tenant with unaffiliated third
parties in connection with such Transfer (i.e., brokerage commissions, tenant
finish work, and the like) over (2) the Rent allocable to the portion of the
Premises covered thereby.

          (g) PERMITTED TRANSFERS. Notwithstanding Section 10.(a), Tenant may
Transfer all or part of its interest in this Lease or all or part of the
Premises (a "PERMITTED TRANSFER") to the following types of entities (a
"PERMITTED TRANSFEREE") without the written consent of Landlord:

               (1) an Affiliate of Tenant;

               (2) any corporation, limited partnership, limited liability
     partnership, limited liability company or other business entity in which or
     with which Tenant, or its corporate successors or assigns, is merged or
     consolidated, in accordance with applicable statutory provisions governing
     merger and consolidation of business entities, so long as (A) Tenant's
     obligations hereunder are assumed by the entity surviving such merger or
     created by such consolidation; and (B) the Tangible Net Worth of the
     surviving or created entity is not less than the Tangible Net Worth of
     Tenant as of the date hereof; or

                                       10

<PAGE>

               (3) any corporation, limited partnership, limited liability
     partnership, limited liability company or other business entity acquiring
     all or substantially all of Tenant's assets if such entity's Tangible Net
     Worth after such acquisition is not less than the Tangible Net Worth of
     Tenant as of the date hereof.

Tenant shall promptly notify Landlord of any such Permitted Transfer. Tenant
shall remain liable for the performance of all of the obligations of Tenant
hereunder, or if Tenant no longer exists because of a merger, consolidation, or
acquisition, the surviving or acquiring entity shall expressly assume in writing
the obligations of Tenant hereunder. Additionally, the Permitted Transferee
shall comply with all of the terms and conditions of this Lease, including the
Permitted Use, and the use of the Premises by the Permitted Transferee may not
violate any other agreements, affecting the Premises, the Building, Landlord or
other tenants of the Building. At least 30 days after the effective date of any
Permitted Transfer, Tenant agrees to furnish Landlord with copies of the
instrument effecting any of the foregoing Transfers and documentation
establishing Tenant's satisfaction of the requirements set forth above
applicable to any such Transfer. The occurrence of a Permitted Transfer shall
not waive Landlord's rights as to any subsequent Transfers. "TANGIBLE NET WORTH"
means the excess of total assets over total liabilities, in each case as
determined in accordance with generally accepted accounting principles
consistently applied ("GAAP"), excluding, however, from the determination of
total assets all assets which would be classified as intangible assets under
GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights,
and franchises. Any subsequent Transfer by a Permitted Transferee shall be
subject to the terms of this Section 10.

     11. INSURANCE; WAIVERS; SUBROGATION; INDEMNITY.

          (a) TENANT'S INSURANCE. Tenant shall maintain throughout the Term the
following insurance policies: (1) commercial general liability insurance in
amounts of $3,000,000.00 per occurrence or, following the expiration of the
initial Term, such other amounts as Landlord may from time to time reasonably
require (and, if the use and occupancy of the Premises include any activity or
matter that is or may be excluded from coverage under a commercial general
liability policy (e.g., the sale, service or consumption of alcoholic
beverages], Tenant shall obtain such endorsements to the commercial general
liability policy or otherwise obtain insurance to insure all liability arising
from such activity or matter [including liquor liability, if applicable] in
such amounts as Landlord may reasonably require), insuring Tenant, Landlord,
Landlord's agents and their respective Affiliates against all liability for
injury to or death of a person or persons or damage to property arising from the
use and occupancy of the Premises, (2) insurance covering the full value of
Tenant's property and improvements, and other property (including property of
others) in the Premises, (3) contractual liability insurance sufficient to cover
Tenant's indemnity obligations hereunder (but only if such contractual liability
insurance is not already included in Tenant's commercial general liability
insurance policy), (4) worker's compensation insurance, and (5) business
interruption insurance. Tenant's insurance shall provide primary coverage to
Landlord when any policy issued to Landlord provides duplicate or similar
coverage, and in such circumstance Landlord's policy will be excess over
Tenant's policy. Tenant shall furnish to Landlord certificates of such insurance
and such other evidence satisfactory to Landlord of the maintenance of all
insurance coverages required hereunder, and Tenant shall obtain a written
obligation on the part of each insurance company to notify Landlord at least 30
days before cancellation or a material change of any such insurance policies.
All such insurance policies shall be in form, and issued by companies,
reasonably satisfactory to Landlord.

                                       11

<PAGE>

          (b) LANDLORD'S INSURANCE. Throughout the Term of this Lease, Landlord
shall maintain, as a minimum, the following insurance policies: (1) fire and
extended risk insurance for the Building's replacement value and (2) commercial
general liability insurance in an amount of not less than $3,000,000.00. The
cost of all insurance carried by Landlord with respect to the Building shall be
included in Operating Costs. The foregoing insurance policies and any other
insurance carried by Landlord shall be for the sole benefit of Landlord and
under Landlord's sole control, and Tenant shall have no right or claim to any
proceeds thereof or any other rights thereunder.

          (c) NO SUBROGATION. Landlord and Tenant each waives any claim it might
have against the other for any injury to or death of any person or persons or
damage to or theft, destruction, loss, or loss of use of any property (a
"LOSS"), to the extent the same is insured against under any insurance policy
that-covers the Building, the Premises, Landlord's or Tenant's fixtures,
personal property, leasehold improvements, or business, or is required to be
insured against under the terms hereof, REGARDLESS OF WHETHER THE NEGLIGENCE OF
THE OTHER PARTY CAUSED SUCH LOSS. Each party shall cause its insurance carrier
to endorse all applicable policies waiving the carrier's rights of recovery
under subrogation or otherwise against the other parry.

          (d) INDEMNITY. Subject to Section 11.(c), Tenant shall defend,
indemnify, and hold harmless Landlord and its representatives and agents from
and against all claims, demands, liabilities, causes of action, suits,
judgments, damages, and expenses (including attorneys' fees) arising from (1)
any Loss arising from any occurrence on the Premises, except to the extent
caused by the negligence or fault of Landlord or its agents, or (2) Tenant's
failure to perform its obligations under this Lease. Subject to Section 11.(c),
Landlord shall defend, indemnify, and hold harmless Tenant and its agents from
and against all claims, demands, liabilities, causes of action, suits,
judgments, and expenses (including attorneys' fees) for any Loss arising from
any occurrence in the Building's common areas, except to the extent caused by
the negligence or fault of Tenant or its agents. The indemnities set forth in
this Section 11.(d) shall survive termination or expiration of this Lease and
shall not terminate or be waived, diminished or affected in any manner by any
abatement or apportionment of Rent under any provision of this Lease. If any
proceeding is filed for which indemnity is required hereunder, the indemnifying
party agrees, upon request therefor, to defend the indemnified party in such
proceeding at its sole cost utilizing counsel satisfactory to the indemnified
party.

     12. SUBORDINATION; ATTORNMENT: NOTICE TO LANDLORD'S MORTGAGEE.

          (a) SUBORDINATION. This Lease shall be subordinate to any deed of
trust, mortgage, or other security instrument (each, a "MORTGAGE"), or any
ground lease, master lease, or primary lease (each, a "PRIMARY LEASE"), that now
or hereafter covers all or any part of the Premises (the mortgagee under any
such Mortgage, beneficiary under any such deed of trust, or the lessor under any
such Primary Lease is referred to herein as a "LANDLORD'S MORTGAGEE"). Any
Landlord's Mortgagee may elect, at any time, unilaterally, to make this Lease
superior to its Mortgage, Primary Lease, or other interest in the Premises by so
notifying Tenant in writing. The provisions of this Section shall be
self-operative and no further instrument of subordination shall be required;
however, in confirmation of such subordination, Tenant shall execute and return
to Landlord (or such other party designated by Landlord) within ten days after
written request therefor such documentation, in recordable form if required, as
a Landlord's Mortgagee may reasonably request to evidence the subordination of
this Lease to such Landlord's Mortgagee's Mortgage or Primary Lease (including a
subordination, non-disturbance and attornment agreement) or, if the Landlord's
Mortgagee so elects, the subordination of such Landlord's Mortgagee's Mortgage
or Primary Lease to this Lease.

                                       12

<PAGE>

          (b) ATTORNMENT. Tenant shall attorn to any party succeeding to
Landlord's interest in the Premises, whether by purchase, foreclosure, deed in
lieu of foreclosure, power of sale, termination of lease, or otherwise, upon
such party's request, and shall execute such agreements confirming such
attornment as such party may reasonably request.

          (c) NOTICE TO LANDLORD'S MORTGAGEE. Tenant shall not seek to enforce
any remedy it may have for any default on the part of Landlord without first
giving written notice by certified mail, return receipt requested, specifying
the default in reasonable detail, to any Landlord's Mortgagee whose address has
been given to Tenant, and affording such Landlord's Mortgagee a reasonable
opportunity to perform Landlord's obligations hereunder.

          (d) LANDLORD'S MORTGAGEE'S PROTECTION PROVISIONS. If Landlord's
Mortgagee shall succeed to the interest of Landlord under this Lease, Landlord's
Mortgagee shall not be: (1) liable for any act or omission of any prior lessor
(including Landlord); (2) bound by any rent or additional rent or advance rent
which Tenant might have paid for more than the current month to any prior lessor
(including Landlord), and all such rent shall remain due and owing,
notwithstanding such advance payment; (3) bound by any security or advance
rental deposit made by Tenant which is not delivered or paid over to Landlord's
Mortgagee and with respect to which Tenant shall look solely to Landlord for
refund or reimbursement; (4) bound by any termination, amendment or modification
of this Lease made without Landlord's Mortgagee's consent and written approval,
except for those terminations, amendments and modifications permitted to be made
by Landlord without Landlord's Mortgagee's consent pursuant to the terms of the
loan documents between Landlord and Landlord's Mortgagee; (5) subject to the
defenses which Tenant might have against any prior lessor (including Landlord);
and (6) subject to the offsets which Tenant might have against any prior lessor
(including Landlord) except for those offset rights which (A) are expressly
provided in this Lease, (B) relate to periods of time following the acquisition
of the Building by Landlord's Mortgagee, and (C) Tenant has provided written
notice to Landlord's Mortgagee and provided Landlord's Mortgagee a reasonable
opportunity to cure the event giving rise to such offset event. Landlord's
Mortgagee shall have no liability or responsibility under or pursuant to the
terms of this Lease or otherwise after it ceases to own an interest in the
Building. Nothing in this Lease shall be construed to require Landlord's
Mortgagee to see to the application of the proceeds of any loan, and Tenant's
agreements set forth herein shall not be impaired on account of any modification
of the documents evidencing and securing any loan.

     13. RULES AND REGULATIONS. Tenant shall comply with the rules and
regulations of the Building which are attached hereto as Exhibit C. Landlord
may, from time to time, change such rules and regulations for the safety, care,
or cleanliness of the Building and related facilities, provided that such
changes are applicable to all tenants of the Building, will not unreasonably
interfere with Tenant's use of the Premises and are enforced by Landlord in a
non-discriminatory manner. Tenant shall be responsible for the compliance with
such rules and regulations by each Tenant Party.

     14. CONDEMNATION.

          (a) TOTAL TAKING. If the entire Building or Premises are taken by
right of eminent domain or conveyed in lieu thereof (a "TAKING"), this Lease
shall terminate as of the date of the Taking.

          (b) PARTIAL TAKING - TENANT'S RIGHTS. If any part of the Building
becomes subject to a Taking and such Taking will prevent Tenant from conducting
its business in the Premises in a manner reasonably comparable to that conducted
immediately before such Taking for a period of more than 180 days, then Tenant
may terminate this Lease as of the date of such Taking by giving written notice
to Landlord within 30 days after the Taking, and Basic Rent and Additional Rent
shall be apportioned as of the

                                       13

<PAGE>

date of such Taking. If Tenant does not terminate this Lease, then Rent shall be
abated on a reasonable basis as to that portion of the Premises rendered
untenantable by the Taking.

          (c) PARTIAL TAKING - LANDLORD'S RIGHTS. If any material portion, but
less than all, of the Building becomes subject to a Taking, or if Landlord is
required to pay any of the proceeds arising from a Taking to a Landlord's
Mortgagee, then Landlord may terminate this Lease by delivering written notice
thereof to Tenant within 30 days after such Taking, and Basic Rent and
Additional Rent shall be apportioned as of the date of such Taking. If Landlord
does not so terminate this Lease, then this Lease will continue, but if any
portion of the Premises has been taken, Rent shall abate as provided in the last
sentence of Section 14.(b).

          (d) AWARD. If any Taking occurs, then Landlord shall receive the
entire award or other compensation for the Land, the Building, and other
improvements taken; however, Tenant may separately pursue a claim (to the extent
it will not reduce Landlord's award) against the condemnor for the value of
Tenant's personal property which Tenant is entitled to remove under this Lease,
moving costs, loss of business, and other claims it may have.

     15. FIRE OR OTHER CASUALTY.

          (a) REPAIR ESTIMATE. If the Premises or the Building are damaged by
fire or other casualty (a "CASUALTY"), Landlord shall, within 90 days after such
Casualty, deliver to Tenant a good faith estimate (the "DAMAGE NOTICE") of the
time needed to repair the damage caused by such Casualty.

          (b) TENANT'S RIGHTS. If a material portion of the Premises is damaged
by Casualty such that Tenant is prevented from conducting its business in the
Premises in a manner reasonably comparable to that conducted immediately before
such Casualty and Landlord estimates that the damage caused thereby cannot be
repaired within 270 days after the Casualty (the "REPAIR PERIOD"), then Tenant
may terminate this Lease by delivering written notice to Landlord of its
election to terminate within 30 days after the Damage Notice has been delivered
to Tenant.

          (c) LANDLORD'S RIGHTS. If a Casualty damages the Premises or a
material portion of the Building and (1) Landlord estimates that the damage to
the Premises cannot be repaired within the Repair Period, (2) the damage to the
Premises exceeds 50% of the replacement cost thereof (excluding foundations and
footings), as estimated by Landlord, and such damage occurs during the last two
years of the Term, (3) regardless of the extent of damage to the Premises,
Landlord makes a good faith determination that restoring the Building would be
uneconomical, or (4) Landlord is required to pay any insurance proceeds arising
out of the Casualty to a Landlord's Mortgagee, then Landlord may terminate this
Lease by giving written notice of its election to terminate within 30 days after
the Damage Notice has been delivered to Tenant.

          (d) REPAIR OBLIGATION. If neither party elects to terminate this Lease
following a Casualty, then Landlord shall, within a reasonable time after such
Casualty, begin to repair the Premises and shall proceed with reasonable
diligence to restore the Premises to substantially the same condition as they
existed immediately before such Casualty; however, Landlord shall only be
required to reconstruct the Premises to the extent of any improvements existing
therein on the date of the damage that were installed by Landlord as part of the
Work (if any) pursuant to Exhibit D ("LANDLORD'S CONTRIBUTION"), and Landlord's
obligation to repair or restore the Premises shall be limited to the extent of
the insurance proceeds actually received by Landlord for the Casualty in
question. Tenant shall be responsible for repairing or replacing its furniture,
equipment, fixtures, alterations and other improvements which Landlord is not
obligated to restore, and shall use the proceeds of its insurance for such
purpose. Tenant shall pay the difference

                                       14

<PAGE>

between the total cost of reconstructing the Premises and Landlord's
Contribution ("TENANT'S CONTRIBUTION"). Prior to Landlord's commencement of
reconstruction, Tenant shall place Landlord's estimate of Tenant's Contribution
in escrow with Landlord (or furnish Landlord other commercially reasonable
assurances of payment thereof)

          (e) ABATEMENT OF RENT. If the Premises are damaged by Casualty, Rent
for the portion of the Premises rendered untenantable by the damage shall be
abated on a reasonable basis from the date of damage until the completion of
Landlord's repairs (or until the date of termination of this Lease by Landlord
or Tenant as provided above, as the case may be), unless a Tenant Party caused
such damage, in which case, Tenant shall continue to pay Rent without abatement.

     16. PERSONAL PROPERTY TAXES. Tenant shall be liable for all taxes levied or
assessed against personal property, furniture, or fixtures placed by Tenant in
the Premises. If any taxes for which Tenant is liable are levied or assessed
against Landlord or Landlord's property and Landlord elects to pay the same, or
if the assessed value of Landlord's property is increased by inclusion of such
personal property, furniture or fixtures and Landlord elects to pay the taxes
based on such increase, then Tenant shall pay to Landlord, within 30 days
following written request, the part of such taxes for which Tenant is primarily
liable hereunder; however, Landlord shall not pay such amount if Tenant notifies
Landlord that it will contest the validity or amount of such taxes before
Landlord makes such payment, and thereafter diligently proceeds with such
contest in accordance with Law and if the non-payment thereof does not pose a
threat of loss or seizure of the Building or interest of Landlord therein or
impose any fee or penalty against Landlord.

     17. EVENTS OF DEFAULT. Each of the following occurrences shall be an "EVENT
OF DEFAULT":

          (a) PAYMENT DEFAULT. Tenant's failure to pay Rent within 5 days after
Landlord has delivered written notice to Tenant that the same is due; however,
an Event of Default shall occur hereunder without any obligation of Landlord to
give any notice if Tenant fails to pay Rent when due and, during the 12 month
interval preceding such failure, Landlord has given Tenant written notice of
failure to pay Rent on one or more occasions;

          (b) ABANDONMENT. Tenant (1) abandons or vacates the Premises or any
substantial portion thereof or (2) fails to continuously operate its business in
the Premises;

          (c) ESTOPPEL. Tenant fails to provide any estoppel certificate after
Landlord's written request there for pursuant to Section 25.(e) and such failure
shall continue for 5 days after Landlord's second written notice thereof to
Tenant;

          (d) OTHER DEFAULTS. Tenant's failure to perform, comply with, or
observe any other agreement or obligation of Tenant under this Lease and the
continuance of such failure for a period of more than 30 days after Landlord has
delivered to Tenant written notice thereof;

          (e) INSOLVENCY. The filing of a petition by or against Tenant (the
term "TENANT" shall include, for the purpose of this Section 17.(e), any
guarantor of Tenant's obligations hereunder) (1) in any bankruptcy or other
insolvency proceeding; (2) seeking any relief under any state or federal debtor
relief law; (3) for the appointment of a liquidator or receiver for all or
substantially all of Tenant's property or for Tenant's interest in this Lease;
or (4) for the reorganization or modification of Tenant's capital structure;
however, if such a petition is filed against Tenant, then such filing shall not
be an Event of Default unless Tenant fails to have the proceedings initiated by
such petition dismissed within 90 days after the filing thereof; and

                                       15
<PAGE>

          (f) ADDITIONAL SECURITY DEPOSIT. Tenant's failure to pay the
Additional Security Deposit within 5 days after Landlord has delivered written
notice to Tenant that the same is due.

     18. REMEDIES. Upon any Event of Default, Landlord may, in addition to all
other rights and remedies afforded Landlord hereunder or by law or equity, take
any one or more of the following actions:

          (a) TERMINATION OF LEASE. Terminate this Lease by giving Tenant
written notice thereof, in which event Tenant shall pay to Landlord the sum of
(1) all Rent accrued hereunder through the date of termination, (2) all amounts
due under Section 19.(a), and (3) an amount equal to (A) the total Rent that
Tenant would have been required to pay for the remainder of the Term plus
Landlord's estimate of aggregate expenses of reletting the Premises, minus
(B) the then present fair rental rate value of the Premises for such period;

          (b) TERMINATION OF POSSESSION. Terminate Tenant's right to possess the
Premises without terminating this Lease by giving written notice thereof to
Tenant, in which event Tenant shall pay to Landlord (1) all Rent and other
amounts accrued hereunder to the date of termination of possession, (2) all
amounts due from time to time under Section 19.(a), and (3) all Rent and other
net sums required hereunder to be paid by Tenant during the remainder of the
Term, diminished by any net sums thereafter received by Landlord through
reletting the Premises during such period, after deducting all costs incurred by
Landlord in reletting the Premises. If Landlord elects to proceed under this
Section 18.(b), Landlord may remove all of Tenant's property from the Premises
and store the same in a public warehouse or elsewhere at the cost of, and for
the account of, Tenant, without becoming liable for any loss or damage which may
be occasioned thereby. Landlord shall use reasonable efforts to relet the
Premises on such terms as Landlord in its sole discretion may determine
(including a term different from the Term, rental concessions, and alterations
to, and improvement of, the Premises); however, Landlord shall not be obligated
to relet the Premises before leasing other portions of the Building. Landlord
shall not be liable for, nor shall Tenant's obligations hereunder be diminished
because of, Landlord's failure to relet the Premises or to collect rent due for
such reletting. Tenant shall not be entitled to the excess of any consideration
obtained by reletting over the Rent due hereunder. Reentry by Landlord in the
Premises shall not affect Tenant's obligations hereunder for the unexpired Term;
rather, Landlord may, from time to time, bring an action against Tenant to
collect amounts due by Tenant, without the necessity of Landlord's waiting until
the expiration of the Term. Unless Landlord delivers written notice to Tenant
expressly stating that it has elected to terminate this Lease, all actions taken
by Landlord to dispossess or exclude Tenant from the Premises shall be deemed to
be taken under this Section 18.(b). If Landlord elects to proceed under this
Section 18.(b), it may at any time elect to terminate this Lease under Section
18.(a); or

          (c) ALTERATION OF LOCKS. Additionally, with or without notice, and to
the extent permitted by Law, Landlord may alter locks or other security devices
at the Premises to deprive Tenant of access thereto, and Landlord shall not be
required to provide a new key or right of access to Tenant.

     Any and all remedies set forth in this Lease: (i) shall be in addition to
any and all other remedies Landlord may have at law or in equity; (ii) shall be
cumulative; and (iii) may be pursued successively or concurrently as Landlord
may elect. The exercise of any remedy by Landlord shall not be deemed an
election of remedies or preclude Landlord from exercising any other remedies in
the future. Notwithstanding the foregoing, Landlord shall only recover its
damages allowed hereunder once.

     19. PAYMENT BY TENANT; NON-WAIVER; CUMULATIVE REMEDIES.

          (a) PAYMENT BY TENANT. Upon any Event of Default, Tenant shall pay to
Landlord all costs incurred by Landlord (including court costs and reasonable
attorneys' fees and expenses) in

                                       16

<PAGE>

(1) obtaining possession of the Premises, (2) removing and storing Tenant's or
any other occupant's property, (3) repairing, restoring, altering, remodeling,
or otherwise putting the Premises into condition acceptable to a new tenant, (4)
if Tenant is dispossessed of the Premises and this Lease is not terminated,
reletting all or any part of the Premises (including brokerage commissions,
cost of tenant finish work, and other costs incidental to such reletting), (5)
performing Tenant's obligations which Tenant failed to perform, and (6)
enforcing, or advising Landlord of, its rights, remedies, and recourses arising
out of the Event of Default. To the full extent permitted by law, Landlord and
Tenant agree the federal and state courts of the state in which the Premises are
located shall have exclusive jurisdiction over any matter relating to or arising
from this Lease and the parties' rights and obligations under this Lease.

          (b) NO WAIVER. Landlord's acceptance of Rent following an Event of
Default shall not waive Landlord's rights regarding such Event of Default. No
waiver by Landlord of any violation or breach of any of the terms contained
herein shall waive Landlord's rights regarding any future violation of such
term. Landlord's acceptance of any partial payment of Rent shall not waive
Landlord's rights with regard to the remaining portion of the Rent that is due,
regardless of any endorsement or other statement on any instrument delivered in
payment of Rent or any writing delivered in connection therewith; accordingly,
Landlord's acceptance of a partial payment of Rent shall not constitute an
accord and satisfaction of the full amount of the Rent that is due.

          (c) CUMULATIVE REMEDIES. Any and all remedies set forth in this Lease:
(1) shall be in addition to any and all other remedies Landlord may have at law
or in equity, (2) shall be cumulative, and (3) may be pursued successively or
concurrently as Landlord may elect. The exercise of any remedy by Landlord shall
not be deemed an election of remedies or preclude Landlord from exercising any
other remedies in the future.

     20. LANDLORD'S LIEN. In addition to any statutory landlord's lien, now or
hereafter enacted, Tenant grants to Landlord, to secure performance of Tenant's
obligations hereunder, a security interest in all goods (including equipment
and inventory), fixtures, and other personal property of Tenant situated on the
Premises, and all proceeds thereof (the "COLLATERAL"), and the Collateral shall
not be removed from the Premises without the prior written consent of Landlord
(other than in Tenant's ordinary course of business) until all obligations of
Tenant have been fully performed. Upon the occurrence of an Event of Default,
Landlord may, in addition to all other remedies, without notice or demand except
as provided below, exercise the rights afforded to a secured parry under the
Uniform Commercial Code of the state in which the Premises are located (the
"UCC"). To the extent the UCC requires Landlord to give to Tenant notice of any
act or event and such notice cannot be validly waived before a default occurs,
then five-days' prior written notice thereof shall be reasonable notice of the
act or event. Tenant grants to Landlord a power of attorney to execute and file
any financing statement or other instrument necessary to perfect Landlord's
security interest under this Section 20, which power is coupled with an interest
and is irrevocable during the Term. Landlord may also file a copy of this Lease
as a financing statement to perfect its security interest in the Collateral.
Within ten days following written request therefor, Tenant shall execute
financing statements to be filed of record to perfect Landlord's security
interest in the Collateral.

     21. SURRENDER OF PREMISES. No act by Landlord shall be deemed an acceptance
of a surrender of the Premises, and no agreement to accept a surrender of the
Premises shall be valid unless it is in writing and signed by Landlord. At the
expiration or termination of this Lease, Tenant shall deliver to Landlord the
Premises with all improvements located therein in good repair and condition,
free of Hazardous Materials placed on the Premises during the Term, broom-clean,
reasonable wear and tear (and condemnation and Casualty damage not caused by
Tenant, as to which Sections 14 and 15 shall control) excepted, and shall
deliver to Landlord all keys to the Premises. Provided that Tenant has performed
all of its obligations hereunder, Tenant may remove all unattached trade
fixtures, furniture, and personal property placed in the

                                       17

<PAGE>

Premises or elsewhere in the Building by Tenant (but Tenant may not remove any
such item which was paid for, in whole or in part, by Landlord or any wiring or
cabling unless Landlord requires such removal). Additionally, at Landlord's
option. Tenant shall remove such alterations, additions, improvements, trade
fixtures, personal property, equipment, wiring, cabling, and furniture as
Landlord may request; however, Tenant shall not be required to remove any
addition or improvement to the Premises if Landlord has specifically agreed in
writing that the improvement or addition in question need not be removed. Tenant
shall repair all damage caused by such removal. All items not so removed shall,
at Landlord's option, be deemed to have been abandoned by Tenant and may be
appropriated, sold, stored, destroyed, or otherwise disposed of by Landlord
without notice to Tenant and without any obligation to account for such items;
any such disposition shall not be considered a strict foreclosure or other
exercise of Landlord's rights in respect of the security interest granted under
Section 20. The provisions of this Section 21 shall survive the end of the Term.

     22. HOLDING OVER. If Tenant fails to vacate the Premises at the end of the
Term, then Tenant shall be a tenant at sufferance and, in addition to all other
damages and remedies to which Landlord may be entitled for such holding over,
(a) Tenant shall pay, in addition to the other Rent, Basic Rent equal to the
greater of (1) 150% of the Basic Rent payable during the last month of the Term,
or (2) 125% of the prevailing rental rate in the Building for similar space, and
(b) Tenant shall otherwise continue to be subject to all of Tenant's obligations
under this Lease. The provisions of this Section 22 shall not be deemed to limit
or constitute a waiver of any other rights or remedies of Landlord provided
herein or at law. If Tenant fails to surrender the Premises upon the termination
or expiration of this Lease, in addition to any other liabilities to Landlord
accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord
harmless from all loss, costs (including reasonable attorneys' fees) and
liability resulting from such failure, including any claims made by any
succeeding tenant founded upon such failure to surrender, and any lost profits
to Landlord resulting therefrom.

     23. CERTAIN RIGHTS RESERVED BY LANDLORD. Provided that the exercise of such
rights does not unreasonably interfere with Tenant's occupancy of the Premises,
Landlord shall have the following rights:

          (a) BUILDING OPERATIONS. To decorate, and to make inspections,
repairs, alterations, additions, changes, or improvements, whether structural or
otherwise, in and about the Building, or any part thereof; to enter upon the
Premises (after giving Tenant reasonable notice thereof, which may be oral
notice, except in cases of real or apparent emergency, in which case no notice
shall be required) and, during the continuance of any such work, to temporarily
close doors, entryways, public space, and corridors in the Building; to
interrupt or temporarily suspend Building services and facilities; to change the
name of the Building; and to change the arrangement and location of entrances or
passageways, doors, and doorways, corridors, elevators, stairs, restrooms, or
other public parts of the Building;

          (b) SECURITY. To take such reasonable measures as Landlord deems
advisable for the security of the Building and its occupants; evacuating the
Building for cause, suspected cause, or for drill purposes; temporarily denying
access to the Building; and closing the Building after normal business hours and
on Sundays and holidays, subject, however, to Tenant's right to enter when the
Building is closed after normal business hours under such reasonable regulations
as Landlord may prescribe from time to time;

          (c) PROSPECTIVE PURCHASERS AND LENDERS. To enter the Premises at all
reasonable hours to show the Premises to prospective purchasers or lenders; and

          (d) PROSPECTIVE TENANTS. At any time during the last 12 months of the
Term (or earlier if Tenant has notified Landlord in writing that it does not
desire to renew the Term) or at any time following the occurrence of an Event of
Default, to enter the Premises at all reasonable hours to show the

                                       18

<PAGE>

Premises to prospective tenants.

     24. [INTENTIONALLY OMITTED].

     25. MISCELLANEOUS.

          (a) LANDLORD TRANSFER. Landlord may transfer any portion of the
Building and any of its rights under this Lease. If Landlord assigns its rights
under this Lease, then Landlord shall thereby be released from any further
obligations hereunder arising after the date of transfer, provided that the
assignee assumes Landlord's obligations hereunder in writing.

          (b) LANDLORD'S LIABILITY. The liability of Landlord (and its partners,
shareholders or members) to Tenant (or any person or entity claiming by, through
or under Tenant) for any default by Landlord under the terms of this Lease or
any matter relating to or arising out of the occupancy or use of the Premises
and/or other areas of the Building shall be limited to Tenant's actual direct,
but not consequential, damages therefor and shall be recoverable only from the
interest of Landlord in the Building, and Landlord (and its partners,
shareholders or members) shall not be personally liable for any deficiency.

          (c) FORCE MAJEURE. Other than for Tenant's obligations under this
Lease that can be performed by the payment of money (e.g., payment of Rent and
maintenance of insurance), whenever a period of time is herein prescribed for
action to be taken by either party hereto, such party shall not be liable or
responsible for, and there shall be excluded from the computation of any such
period of time, any delays due to strikes, riots, acts of God, shortages of
labor or materials, war, governmental laws, regulations, or restrictions, or any
other causes of any kind whatsoever which are beyond the control of such
party.

          (d) BROKERAGE. Neither Landlord nor Tenant has dealt with any broker
or agent in connection with the negotiation or execution of this Lease, other
than Trammell Crow Company and CB Richard Ellis/Whittier Partners L.P., whose
commission shall be paid by Landlord pursuant to a separate written agreement.
Tenant and Landlord shall each indemnify the other against all costs, expenses,
attorneys' fees, liens and other liability for commissions or other compensation
claimed by any broker or agent claiming the same by, through, or under the
indemnifying party.

          (e) ESTOPPEL CERTIFICATES. From time to time, Tenant shall furnish to
any party designated by Landlord, within 10 days after Landlord has made a
request therefor, a certificate signed by Tenant confirming and containing such
factual certifications and representations as to this Lease as Landlord may
reasonably request. Unless otherwise required by Landlord's Mortgagee or a
prospective purchaser or mortgagee of the Building, the initial form of estoppel
certificate to be signed by Tenant is attached hereto as Exhibit F.

          (f) NOTICES. All notices and other communications given pursuant to
this Lease shall be in writing and shall be (1) mailed by first class, United
States Mail, postage prepaid, certified, with return receipt requested, and
addressed to the parties hereto at the address specified in the Basic Lease
Information, (2) hand delivered to the intended address, (3) sent by a
nationally recognized overnight courier service, or (4) sent by facsimile
transmission during normal business hours followed by a confirmatory letter sent
in another manner permitted hereunder. All notices shall be effective upon
delivery to the address of the addressee. The parties hereto may change their
addresses by giving notice thereof to the other in conformity with this
provision.

          (g) SEPARABILITY. If any clause or provision of this Lease is illegal,
invalid, or unenforceable under present or future laws, then the remainder of
this Lease shall not be affected thereby

                                       19

<PAGE>

and in lieu of such clause or provision, there shall be added as a part of this
Lease a clause or provision as similar in terms to such illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable.

          (h) AMENDMENTS; AND BINDING EFFECT. This Lease may not be amended
except by instrument in writing signed by Landlord and Tenant. No provision of
this Lease shall be deemed to have been waived by Landlord unless such waiver is
in writing signed by Landlord, and no custom or practice which may evolve
between the parties in the administration of the terms hereof shall waive or
diminish the right of Landlord to insist upon the performance by Tenant in
strict accordance with the terms hereof. The terms and conditions contained in
this Lease shall inure to the benefit of and be binding upon the parties hereto,
and upon their respective successors in interest and legal representatives,
except as otherwise herein expressly provided. This Lease is for the sole
benefit of Landlord and Tenant, and, other than Landlord's Mortgagee, no third
party shall be deemed a third party beneficiary hereof.

          (i) QUIET ENJOYMENT. Provided Tenant has performed all of its
obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the
Premises for the Term, without hindrance from Landlord or any party claiming by,
through, or under Landlord, but not otherwise, subject to the terms and
conditions of this Lease.

          (j) NO MERGER. There shall be no merger of the leasehold estate hereby
created with the fee estate in the Premises or any part thereof if the same
person acquires or holds, directly or indirectly, this Lease or any interest in
this Lease and the fee estate in the leasehold Premises or any interest in such
fee estate.

          (k) NO OFFER. The submission of this Lease to Tenant shall not be
construed as an offer, and Tenant shall not have any rights under this Lease
unless Landlord executes a copy of this Lease and delivers it to Tenant.

          (l) ENTIRE AGREEMENT. This Lease constitutes the entire agreement
between Landlord and Tenant regarding the subject matter hereof and supersedes
all oral statements and prior writings relating thereto. Except for those set
forth in this Lease, no representations, warranties, or agreements have been
made by Landlord or Tenant to the other with respect to this Lease or the
obligations of Landlord or Tenant in connection therewith. The normal rule of
construction that any ambiguities be resolved against the drafting party shall
not apply to the interpretation of this Lease or any exhibits or amendments
hereto.

          (m) WAIVER OF JURY TRIAL. To the maximum extent permitted by law,
Landlord and Tenant each waive right to trial by jury in any litigation arising
out of or with respect to this Lease.

          (n) GOVERNING LAW. This Lease shall be governed by and construed in
accordance with the laws of the state in which the Premises are located.

          (o) RECORDING. Tenant shall not record this Lease without the prior
written consent of Landlord, which consent may be withheld or denied in the sole
and absolute discretion of Landlord.

          (p) JOINT AND SEVERAL LIABILITY. If Tenant is comprised of more than
one party, each such party shall be jointly and severally liable for Tenant's
obligations under this Lease. All unperformed obligations of Tenant at the end
of the Term shall survive.

          (q) FINANCIAL REPORTS. Within 15 days after Landlord's request, Tenant
will furnish Tenant's most recent audited financial statements (including any
notes to them) to Landlord, or, if no such

                                       20

<PAGE>

audited statements have been prepared, such other financial statements (and
notes to them) as may have been prepared by an independent certified public
accountant or, failing those, Tenant's internally prepared financial statements.
If Tenant is a publicly traded corporation, Tenant may satisfy its obligations
hereunder by providing to Landlord Tenant's most recent annual and quarterly
reports. Tenant will discuss its financial statements with Landlord and,
following the occurrence of an Event of Default hereunder, will give Landlord
access to Tenant's books and records in order to enable Landlord to verify the
financial statements. Landlord will not disclose any aspect of Tenant's
financial statements that Tenant designates to Landlord as confidential except
(1) to Landlord's Mortgagee or prospective mortgagees or purchasers of the
Building, (2) in litigation between Landlord and Tenant, and (3) if required by
court order. Tenant shall not be required to deliver the financial statements
required under this Section 25.(q) more than once in any 12-month period unless
requested by Landlord's Mortgagee or a prospective buyer or lender of the
Building or an Event of Default occurs.

          (r) LANDLORD'S FEES. Whenever Tenant requests Landlord to take any
action not required of it hereunder or give any consent required or permitted
under this Lease, Tenant will reimburse Landlord for Landlord's reasonable,
out-of-pocket costs payable to third parties and incurred by Landlord in
reviewing the proposed action or consent, including reasonable attorneys',
engineers' or architects' fees, within 30 days after Landlord's delivery to
Tenant of a statement of such costs. Tenant will be obligated to make such
reimbursement without regard to whether Landlord consents to any such proposed
action.

          (s) TELECOMMUNICATIONS. Tenant and its telecommunications companies,
including local exchange telecommunications companies and alternative access
vendor services companies, shall have no right of access to and within the
Building, for the installation and operation of telecommunications systems,
including voice, video, data, Internet, and any other services provided over
wire, fiber optic, microwave, wireless, and any other transmission systems
("TELECOMMUNICATIONS SERVICES"), for part or all of Tenant's telecommunications
within the Building and from the Building to any other location without
Landlord's prior written consent. All providers of Telecommunications Services
shall be required to comply with the rules and regulations of the Building,
applicable Laws and Landlord's policies and practices for the Building. Tenant
acknowledges that Landlord shall not be required to provide or arrange for any
Telecommunications Services and that Landlord shall have no liability to any
Tenant Party in connection with the installation, operation or maintenance of
Telecommunications Services or any equipment or facilities relating thereto.
Tenant, at its cost and for its own account, shall be solely responsible for
obtaining all Telecommunications Services. However, nothing in this Section
25.(s) shall prohibit Tenant's employees from accessing areas solely within the
Premises that do not contain any equipment serving other tenants of the Building
or the Building's Systems.

          (t) CONFIDENTIALITY. Tenant acknowledges that the terms and conditions
of this Lease are to remain confidential for Landlord's benefit, and may not be
disclosed by Tenant to anyone, by any manner or means, directly or indirectly,
without Landlord's prior written consent. The consent by Landlord to any
disclosures shall not be deemed to be a waiver on the part of Landlord of any
prohibition against any future disclosure.

          (u) AUTHORITY. Tenant (if a corporation, partnership or other business
entity) hereby represents and warrants to Landlord that Tenant is a duly formed
and existing entity qualified to do business in the state in which the Premises
are located, that Tenant has full right and authority to execute and deliver
this Lease, and that each person signing on behalf of Tenant is authorized to do
so. Landlord hereby represents and warrants to Tenant that Landlord is a duly
formed and existing entity qualified to do business in the state in which the
Premises are located, that Landlord has full right and authority to execute and
deliver this Lease, and that each person signing on behalf of Landlord is
authorized to do so.

                                       21
<PAGE>

          (v) HAZARDOUS MATERIALS. The term "HAZARDOUS MATERIALS" means any
substance, material, or waste which is now or hereafter classified or considered
to be hazardous, toxic, or dangerous under any Law relating to pollution or the
protection or regulation of human health, natural resources or the environment,
or poses or threatens to pose a hazard to the health or safety of persons on the
Premises or in the Building. Tenant shall not use, generate, store, or dispose
of, or permit the use, generation, storage or disposal of Hazardous Materials on
or about the Premises or the Building except in a manner and quantity necessary
for the ordinary performance of Tenant's business, and then in compliance with
all Laws. If Tenant breaches its obligations under this Section 25.(v), Landlord
may immediately take any and all action reasonably appropriate to remedy the
same, including taking all appropriate action to clean up or remediate any
contamination resulting from Tenant's use, generation, storage or disposal of
Hazardous Materials. Tenant shall defend, indemnify, and hold harmless Landlord
and its representatives and agents from and against any and all claims, demands,
liabilities, causes of action, suits, judgments, damages and expenses (including
reasonable attorneys' fees and cost of clean up and remediation) arising from
Tenant's failure to comply with the provisions of this Section 25.(v). This
indemnity provision shall survive termination or expiration of this Lease.

          (w) LIST OF EXHIBITS. All exhibits and attachments attached hereto are
incorporated herein by this reference.

          Exhibit A -   Plan Showing the Premises
          Exhibit A-1 - Plan Showing the Additional Premises
          Exhibit B -   Description of the Land
          Exhibit C -   Building Rules and Regulations
          Exhibit D -   Tenant Finish-Work
          Exhibit E -   Form of Confirmation of Commencement Date Letter
          Exhibit F -   Form of Tenant Estoppel Certificate
          Exhibit G -   Parking
          Exhibit H -   Renewal Option
          Exhibit I -   Additional Premises
          Exhibit J -   Form of Letter of Credit

     26. OTHER PROVISIONS.

LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES
ARE SUITABLE FOR TENANTS INTENDED COMMERCIAL PURPOSE, AND TENANTS OBLIGATION TO
PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE
PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND, EXCEPT AS OTHERWISE
EXPRESSLY PROVIDED HEREIN, TENANT SHALL CONTINUE TO PAY THE RENT, WITHOUT
ABATEMENT, DEMAND, SETOFF OR DEDUCTION, NOTWITHSTANDING ANY BREACH BY LANDLORD
OF ITS DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS OR IMPLIED.

     IN WITNESS WHEREOF, and in consideration of the mutual entry into this
Lease and for other good and valuable consideration, and intending to be legally
bound, each party hereto has caused this Lease to be duly executed as a
Massachusetts instrument under seal as of the day and year first above written.

                                       22

<PAGE>

LANDLORD:                               W9/TIB REAL ESTATE LIMITED
                                        PARTNERSHIP, a Delaware limited
                                        partnership

                                        By: W9/TIB Gen-Par, Inc., a Delaware
                                            corporation, its general partner

                                        By: /s/ Stephen M. Abelman
                                            ------------------------------------
                                        Name: Stephen M. Abelman
                                        Title: Assistant Vice President

TENANT:                                 ERUNWAY, INC.,
                                        a Delaware corporation

                                        By: /s/ JACK STEINKRAUSS
                                            ------------------------------------
                                        Name: JACK STEINKRAUSS
                                        Title: SVP

                                       23

<PAGE>

                            FIRST AMENDMENT TO LEASE

     This First Amendment to Lease (this "First Amendment") is hereby entered
into as of the ______ day of November, 2000 by and between W9/TIB REAL ESTATE
LIMITED PARTNERSHIP, a Delaware limited partnership having an address c/o Archon
Group, L.P., 1275 K Street, N.W., Suite 900, Washington, D.C. 20005
("Landlord"), and ERUNWAY, INC., a Delaware corporation having an address at
2000 West Park Drive, Westborough, Massachusetts 01581 ("Tenant").

     WHEREAS, Landlord, as landlord, and Tenant, as tenant, entered into that
certain Lease Agreement (the "Lease") dated as of June _______, 2000 by which
Landlord leased to Tenant and Tenant leased from Landlord a portion of the
building (the "Building") located at and numbered 2000 West Park Drive,
Westborough, Massachusetts consisting of approximately 10,499 rentable square
feet of floor area on the third floor of the Building, as more particularly
described in the Basic Lease Information (as defined in the Lease) and as shown
cross-hatched on the plan attached to the Lease as Exhibit A (the "Original
Premises").

     WHEREAS, the Term (as defined in the Lease) commenced on September 1, 2000
and expires on August 31, 2005.

     WHEREAS, pursuant to Exhibit I attached to the Lease, Landlord shall lease
to Tenant and Tenant shall lease from Landlord a portion of the third floor of
the Building consisting of approximately 11,648 rentable square feet of floor
area as shown cross-hatched on the plan attached to the Lease as Exhibit A-l
(the "Additional Premises") commencing on the Additional Premises Commencement
Date (as defined in the Lease).

     WHEREAS, Landlord and Tenant have agreed to extend the Term beyond August
31, 2005 to expire on the Expiration Date (as defined below) in accordance with
the terms and provisions of this First Amendment.

     WHEREAS, Landlord now desires to lease to Tenant and Tenant now desires to
lease from Landlord additional space on the first floor of the Building in
accordance with the terms and provisions of this First Amendment.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein and in Lease, Landlord and Tenant hereby agree as follows:

     1. The Term is hereby extended so as to expire on the last day of the
sixtieth full calendar month following the later of (i) January 1, 2001 or (ii)
the Additional Premises Commencement Date (the "Expiration Date"). Therefore,
notwithstanding anything in the Lease to the contrary, the "Term" shall be
defined as the period commencing on September 1, 2000 and ending at 5:00 p.m.
local time on the Expiration Date, subject to adjustment and earlier termination
as provided in the Lease or this First Amendment.

     2. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
a portion of the first floor of the Building consisting of approximately 7,848
rentable square feet of floor area, as shown cross-hatched on the plan attached
hereto as Exhibit A and incorporated herein by this reference (the "First
Amendment Premises"), upon the same terms and conditions set forth in the Lease
and this First Amendment for the Original Premises except as otherwise provided
in this First Amendment, for a
<PAGE>

term commencing on December 1, 2000 and expiring on the Expiration Date, unless
terminated earlier as provided in the Lease or this First Amendment.
Notwithstanding anything in the Lease to the contrary, for the period from and
including December 1, 2000 to the day prior to the Additional Premises
Commencement Date, the word "Premises", wherever such word appears in the Lease
or this First Amendment, shall mean the Original Premises and the First
Amendment Premises. Notwithstanding anything in the Lease to the contrary,
effective on and after the Additional Premises Commencement Date, the word
"Premises", wherever such word appears in the Lease or this First Amendment,
shall mean, collectively, the Original Premises, the Additional Premises and the
First Amendment Premises.

     3. Notwithstanding anything in the Lease, to the contrary, effective on and
after December 1, 2000 through the end of the Term, the Basic Rent due and
payable by Tenant to Landlord under the Lease (as amended by this First
Amendment) for the First Amendment Premises shall be as follows:

<TABLE>
<CAPTION>
              Period                   Monthly Basic Rent      110       160
              ------                   ------------------   --------   -------
<S>                                    <C>                  <C>        <C>
December 1, 2000 - December 31, 2002       $18,639.00       15112.13   3526.87
January 1, 2003 - December 31, 2003        $19,293.00       15642.38   3650.62
January 1, 2004 - Expiration Date          $19,947.00       16172.63   3774.37
</TABLE>

     Basic Rent for the First Amendment Premises shall be conditionally abated
during the month of December 2000. Commencing with January 1, 2001, Tenant shall
make Basic Rent payments for the First Amendment Premises as otherwise provided
in the Lease and this First Amendment. Notwithstanding such abatement of Basic
Rent for the First Amendment Premises (a) all other sums due under the Lease or
this First Amendment shall be payable as provided in the Lease, and (b) any
increases in Basic Rent for the First Amendment Premises set forth in the Lease
and this First Amendment shall occur on the dates scheduled therefor.

     4. Notwithstanding anything in the Lease to the contrary, effective on and
after September 1, 2005 through the end of the Term, the Basic Rent due and
payable by Tenant to Landlord under the Lease (as amended by this First
Amendment) for the Original Premises and the Additional Premises shall be
$56,290.91 per calendar month.

     5. Notwithstanding anything in the Lease, including, without limitation,
the definition of the phrase "Tenant's Proportionate Share" as set forth in the
Basic Lease Information, to the contrary, effective on and after January 1,
2001, Tenant's Proportionate Share shall be 47.48%, which is the percentage
obtained by dividing the rentable square feet in the Premises (29,995) by the
rentable square feet in the Building (63,180). Landlord and Tenant stipulate
that the number of rentable square feet in the Original Premises, the Additional
Premises, the First Amendment Premises and the Building as set forth in the
Lease and this First Amendment shall be binding upon them.

     6. Tenant's taking possession of the First Amendment Premises shall be
conclusive evidence that the First Amendment Premises were in good order and
satisfactory condition when Tenant took possession thereof. No agreement of
Landlord to alter, remodel, decorate, clean or improve the First Amendment
Premises (or to provide Tenant with any credit or allowance for the same) and no
representation or warranty regarding the condition of the First Amendment
Premises or the suitability of the First Amendment Premises for Tenant's
proposed use thereof, have been made by or on behalf of

                                       -2-

<PAGE>

Landlord or relied upon by Tenant in connection with this First Amendment,
except as otherwise provided in Exhibit B attached hereto and incorporated by
this reference.

     7. Simultaneously with the execution and delivery of this First Amendment
by Tenant, Tenant shall pay to Landlord $239,364.00, which shall be held by
Landlord to secure Tenant's performance of its obligations under the Lease and
this First Amendment pursuant to the terms and provisions of Section 6 of the
Lease. Therefore, the Basic Lease Information is hereby amended by changing the
amount of the Security Deposit (as defined in the Basic Lease Information) from
"$553,675.00" to "793,039.00".

     8. Tenant represents to Landlord that Tenant has not dealt with any brokers
other than Trammel Crow Company and CB Richard Ellis/Whitter Partners L.P.
(collectively, the "Brokers") in connection with this First Amendment and that,
insofar as Tenant knows, no other broker negotiated this First Amendment or is
entitled to any commission or fee in connection herewith. Tenant agrees to
indemnify, defend and hold Landlord, its asset manager, its property manager and
their respective employees harmless from and against any claim for a fee or
commission made by any broker, other than the Brokers, claiming to have acted by
or on behalf of Tenant in connection with this First Amendment.

     9. Section 4.(b) of the Lease is hereby amended by deleting all of such
Section 4.(b). In addition, all references in the Lease to the phrase
"Electrical Costs" are hereby deleted. Section 7 of the Lease is hereby amended
by adding at the end thereof a new subsection (e) as follows:

     10. "To the extent that the Premises are separately metered for
electricity, Tenant shall pay (as hereinafter described) for the use of all
electrical service to the Premises. Tenant shall be billed directly by the
electric utility company and Tenant agrees to pay each bill promptly in
accordance with its terms, and upon default in making such payment, Landlord may
pay such charges and collect the same from Tenant. In the event for any reason
Tenant cannot be billed directly, Landlord shall forward each bill received with
respect to the Building to Tenant of which Tenant shall pay its proportionate
share (as reasonably determined by Landlord based upon either square footage or
level of use) promptly and in accordance with its terms. If the Premises are not
separately metered for any reason, Tenant shall pay Landlord as further
additional rent, in monthly installments at the time prescribed for monthly
installments of Basic Rent, a pro rata share of the cost of electricity for the
Premises as estimated by Landlord from time to time in Landlord's reasonable
discretion. Initially, the cost estimate by Landlord shall be at the rate of
$1.00 per rentable square foot of the Premises per annum. Landlord may require
the purchase and installation of a meter and/or sub-meter, at Tenant's sole cost
and expense, for the purpose of metering and/or sub-metering Tenant's
consumption of electricity. Tenant shall keep such meter and/or sub-meter
serving the Premises and their related installation equipment in good working
order and repair."

     The terms and provisions of this paragraph 9 shall take effect retroactive
to September 1, 2000.

     11. Given that the Additional Premises Work has already commenced and is
proceeding, it is assumed herein that the Additional Premises Commencement Date
will occur prior to January 1, 2001. However, if the Additional Premises
Commencement Date occurs after January 1, 2001, then paragraph 5 of this First
Amendment shall be modified to provide that, effective on and after the January
1, 2001 "Tenant's Proportionate Share" shall be 29.04%, and, effective on and
after the Additional Premises Commencement Date, "Tenant Proportionate Share"
shall be 47.48%.

                                       -3-

<PAGE>

     12. Submission of this First Amendment for examination or signature by
Tenant does not constitute a reservation of space or an option for lease, and
this First Amendment shall not be effective unless and until execution and
delivery thereof by both Landlord and Tenant.

     13. In all other respects, Landlord and Tenant hereby reaffirm all of the
covenants, agreements, terms, conditions and other provisions of the Lease
except as modified hereby, and the Lease is hereby incorporated in full herein
by reference. The terms and provisions of this First Amendment shall be
effective as of the date first above written, except as may otherwise be
expressly provided herein.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment
to Lease as a sealed instrument as of the date first above written.

                                        LANDLORD:

                                        W9/TIB REAL ESTATE LIMITED PARTNERSHIP

                                        By: W9/TIB GEN-PAR, INC.,
                                            its General Partner

                                        By: /s/ Stephen M. Abelman
                                            ------------------------------------
                                        Name: Stephen M. Abelman
                                        Title: Assistant Vice President

                                        TENANT:

                                        ERUNWAY, INC.

                                        By: /s/ JACK STEINKRAUSS
                                            ------------------------------------
                                        Name: JACK STEINKRAUSS
                                        Title: SVP

                                       -4-
<PAGE>

                     SECOND AMENDMENT AND EXTENSION OF LEASE

     THIS INSTRUMENT, dated as of December 30, 2003, by and between 2000
Westborough Office Park LLC, a Delaware limited liability company (the
"Landlord") and Virtusa Corporation, a Delaware corporation formerly known as
eRunway, Inc. (the "Tenant") is an amendment and extension of a certain lease by
and between the Landlord and the Tenant.

     Reference is made to the following facts:

     A.   W9/TIB Real Estate Limited Partnership, a Delaware limited partnership
          ("W9/TIB") and Tenant entered into a certain lease dated as of June,
          2000, as amended by a First Amendment to Lease dated as of November,
          2000 (as amended, the "Lease"), with respect to certain space (the
          "Premises") in the building at 2000 West Park Drive, Westborough,
          Massachusetts, containing 29,995 rentable square feet of floor area on
          the first and third floors of such building.

     B.   The Landlord is the successor-in-interest to W9/TIB under the Lease.

     C.   The Term of the Lease, as previously extended, is scheduled to expire
          on December 31, 2005.

     D.   The Landlord and Tenant are wiling to amend and to extend the Lease,
          upon the terms and conditions set forth below.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows
(Capitalized terms used but not defined herein shall have the meanings given in
the Lease.):

     1.   The Term of the Lease is hereby extended until February 28, 2011.

     2.   The Tenant accepts the Premises in its "as is" condition as of the
          date of this Amendment and agrees that all obligations of the Landlord
          to perform any construction or other leasehold improvement work in the
          Premises have been performed in full.

     3.   Notwithstanding anything contained in the Lease to the contrary,
          effective January 1, 2004 (the "Restructure Date"), the Basic Rent
          shall be payable at the following rates (the period from January
          1, 2004, through February 28, 2011, is hereinafter referred to as the
          "Restructure Term"):

          (i)  for the period from January 1, 2004, through December 31, 2004:
               $614,897.50 per annum ($51,241.46 per month);

                                       -1-

<PAGE>

          (ii) for the period from January 1, 2005, through December 31, 2005:
               $633,344.43 per annum ($52,778.70 per month);

          (iii) for the period from January 1, 2006, through December 31, 2006:
               $652,344.76 per annum ($54,362.06 per month);

          (iv) for the period from January 1, 2007, through December 31, 2007:
               $671,915.10 per annum ($55,992.93 per month);

          (v)  for the period from January 1, 2008, through December 31, 2008:
               $692,072.55 per annum ($57,672.71 per month);

          (vi) for the period from January 1, 2009, through December 31, 2009:
               $712,834.73 per annum ($59,402.89 per month);

          (vii) for the period from January 1, 2010, through December 31, 2010:
               $734,219.77 per annum ($61,184.98 per month); and

          (viii) for the period from January 1, 2011, through February 28, 2011:
               $756,246.36 per annum ($63,020.53 per month).

          Notwithstanding the foregoing, no Basic Rent shall accrue or be
          payable for and with respect to the period from January 1, 2006,
          through February 28, 2006.

     4. The Tenant may elect to extend the term of the Lease for one (1) five
(5) year period (the "Option Term"), by giving the Landlord notice of such
election (the "Election Notice") not earlier than twelve (12) months nor later
than nine (9) months before the expiration of the Restructure Term, provided the
Tenant is not in default on the date such notice is given or on the commencement
date of the Option Term. Such extension shall be upon the same terms, covenants,
and conditions contained in the Lease except that the Tenant shall have no
further right to extend the Term and except that the Basic Rent for the Option
Term shall be at a rate equal to the greater of $756,246.36 per annum or the
fair market rent for the Premises as of the commencement of the Option Term. If
the Landlord and the Tenant are unable to agree in writing on the amount of such
fair market rent by the date that is thirty (30) days after the date of the
Election Notice, then the fair market rent shall be determined as follows: On or
before the date that is forty (40) days after the date of the Election Notice,
the Landlord shall specify in writing the rent (the "Landlord's Rental Rate") at
which the Landlord is willing to lease the Premises for the Option Term and the
Tenant shall specify in writing the rent (the "Tenant's Rental Rate") which the
Tenant is willing to pay for the Option Term, the Landlord and the Tenant shall
each appoint one appraiser. The two appraisers so appointed shall endeavor to
determine the fair market rent. If such appraisers are unable to agree on the
amount of such fair market rent on or before the date that is seventy (70)

                                       -2-

<PAGE>

days after the date of the Election Notice, they shall appoint a third appraiser
on or before the date that is eighty (80) days after the date of the Election
Notice. The three appraisers shall stipulate the fair market rent within thirty
(30) days after the appointment of the third appraiser. The fair market rent
shall be the amount agreed upon in writing by any two of the three appraisers
and the fair market rent so determined shall be conclusive on the Landlord and
the Tenant. The total costs of such appraisal shall be split equally between the
parties;

     5.   Effective as of the date hereof, the Lease shall be amended as
          follows:

          (a)  the paragraph on page (ii) of the basic Lease information
               entitled "Landlord's Address" shall be deleted in its entirety
               and the following shall be substituted in its place:

"Landlord's   For all Notices:           With a copy to:
Address:      1900 Westborough Office    1900 Westborough Office
              Park LLC                   Park LLC
              c/o General Investment &   c/o General Investment &
              Development Co.            Development Co.
              600 Atlantic Ave.,         600 Atlantic Ave.,
              Suite 2000                 Suite 2000
              Boston, MA 02110           Boston, MA 02110
              ATTN: Portfolio Manager    ATTN: Legal Counsel
              Telephone: 617-973-9680    Telephone: 617-973-9680
              Telecopy: 617-973-9646     Telecopy: 617-973-9679

     6.   As of the Effective Date, the Lease shall be amended as follows:

          (i)  in the paragraph of Basic Lease Information entitled "Expense
               Stop", delete "calendar year 2000" and insert in its place
               "calendar year 2004";

          (ii) in the paragraph of Basic Lease Information entitled "Base Tax
               Year", delete "the fiscal year ending June 30, 2001" and insert
               in its place "Calendar year 2004 (For purposes of calculating the
               Taxes for calendar year 2004, such amount shall equal fifty
               percent (50%) of the Taxes payable for fiscal year 2004 (i.e.,
               July 1, 2003, through June 30, 2004) plus fifty percent (50%) of
               the Taxes payable for fiscal year 2005 (i.e., July 1, 2004,
               through June 30, 2005);

          It is understood that the expenses will be grossed up to reflect a 95%
          occupancy of the Building and/or Office Park, as applicable.

                                       -3-

<PAGE>

          The foregoing changes shall not affect the calculation of additional
          rent payable under the Lease for the period prior to the commencement
          of the Restructure Term.

          (iii) In Section 10(e), delete the first sentence thereof in its
               entirety and insert in its place the following:

               "Landlord may, within 30 days after submission of Tenant's
               written request for Landlord's consent to an assignment or to a
               subletting that, collectively with all previous subleases,
               results in a subleasing of more than 40% of the rentable floor
               area of the Premises, cancel this Lease as to the portion of
               Premises proposed to be sublet or assigned as of the date the
               proposed Transfer is to be effective."

          (iv) In Section 10(f), insert, in the second line thereof, between
               "thereof," and "the excess", the following:

               "50% of".

          (v)  In Section 10(c), delete the last sentence thereof in its
               entirety.

          (vi) In Section 22, delete the first sentence in its entirety and
               insert in its place the following:

               "If Tenant fails to vacate the Premises at the end of the Term,
               then Tenant shall be a tenant at sufferance and, in addition to
               all other damages and remedies to which Landlord may be entitled
               for such holding over, (a) Tenant shall pay, in addition to the
               other Rent, Basic Rent equal to 150% of the Basic Rent payable
               during the last month of the Term, (provided, however, that if
               such holding over continues for more than sixty (60) days, then
               the Basic Rent shall increase to 200% of the Basic Rent payable
               during the last month of the Term (b) Tenant shall otherwise
               continue to be subject to all of Tenant's obligations under this
               Lease."

     7. Each party hereto warrants and represents that it has dealt with no real
estate broker or agent other than Spaulding and Slye LLC and Richards Barry
Joyce & Partners (collectively, the "Broker") in connection with this
transaction and agrees to defend, indemnify and save the other party harmless
from and against any and all claims for commissions or fees resulting from a
breach of the warranting party's warranties and representations. Landlord shall
be responsible for any commissions or fees owed to the Broker in connection with
this transaction in accordance with a separate agreement between Broker and
Landlord.

                                      -4-
<PAGE>

     8. Right of First Offer (a) If at any time prior to January 1, 2008,
Landlord in its sole discretion determines that any separately demised leaseable
area on the first floor of the Building (each such area, a "ROFO Space") has
become "available for leasing" (as hereinafter defined), and provided that the
conditions precedent set forth in Subsection (c) below are then satisfied, then
prior to offering to lease such ROFO Space to any 3rd parties, Landlord shall
deliver notice thereof to Tenant (the "ROFO Notice") setting forth a description
of the ROFO Space in question (including the rentable area thereof), the
Landlord's determination of the Basic Rent and Additional Rent for the ROFO
Space, the other material business terms upon which Landlord is willing to lease
the ROFO Space, and the date Landlord anticipates that the ROFO Space will
become available for leasing (the "ROFO Space Availability Date"). Provided that
all of the conditions precedent set forth in this Section 8 are fully satisfied
by Tenant, Tenant shall have the option (the "ROFO Option"), exercisable by
Tenant delivering written notice (the "Acceptance Notice") to Landlord within
twenty (20) calendar days after delivery by Landlord of the ROFO Notice, to
lease the ROFO Space upon all of the terms and conditions set forth in the ROFO
Notice, including the Annual Fixed Rent, escalation rent, and Additional Rent
for the ROFO Space designated by Landlord as set forth therein. Time shall be of
the essence as to Tenant's giving of the Acceptance Notice with respect to any
ROFO Space. If (a) Tenant fails to deliver an Acceptance Notice within such
twenty (20) day period, or (b) if Tenant timely delivers an Acceptance Notice as
aforesaid but does not execute and deliver a final fully executed amendment to
this Lease with respect to the leasing of the ROFO Space, in form and
substance reasonably satisfactory to Landlord within forty five (45) days after
delivery of the Acceptance Notice, then Tenant shall be deemed to have rejected
the option to lease the applicable ROFO Space (the "Rejected ROFO Space"). In
such event, the Landlord shall be free for one hundred eighty (180) days after
the date of the ROFO Notice to lease the ROFO Space to any party without again
offering such space to the Tenant; provided, however, that if the Landlord
offers the ROFO Space for a rental rate that is less than ninety (90%) percent
of the rate set forth in the ROFO notice, then the Landlord shall first offer
the ROFO Space to the Tenant on such terms. If Landlord does not lease the ROFO
Space during such one hundred eighty (180) day period or if the Landlord
proposes to lease the ROFO Space during such period at a rental rate below
ninety (90%) percent of the effective rate, taking into consideration rental
rate and concessions, set forth in the ROFO Notice, the terms of this Section 8
shall continue to apply to such space.

     (b) For purposes of this Section 8, space shall be deemed "available for
leasing" when Landlord has determined in its discretion that (a) the space is
vacant, or (b) the respective existing tenant or occupant will not extend or
renew the term of its lease or other occupancy agreement for the ROFO Space and
that said existing tenant or occupant is not interested either in extending or
renewing its lease or other occupancy agreement for the ROFO Space or in
entering into a new lease for such ROFO Space. For purposes of this Section 8,
space shall not be deemed "available for leasing" if, at the time in question
(a) any person or entity holds any option or right to lease or occupy the ROFO
Space, or to renew its lease or right(s) of occupancy thereof, or any other
rights or claims thereto (including, without limitation, any rights of first
offer, rights of first refusal or

                                       -5-

<PAGE>

expansion rights) or (b) Landlord intends to occupy the ROFO Space. Without
limitation, so long as a tenant or other occupant leases or occupies all or a
portion of the ROFO Space, Landlord shall be free to extend or renew any such
tenancy or occupancy, whether or not pursuant to a lease or other agreement, and
such space shall not be deemed to be "available for leasing." In no event shall
Landlord be liable to Tenant for any failure by any then existing tenant or
occupant (the "Hold-Over Tenant") to vacate any ROFO Space by any particular
date. However, if such Hold-Over Tenant continues to occupy such ROFO Space for
120 days after the ROFO Space Availability Date then Tenant may elect to
terminate its agreement to lease the ROFO Space by giving Landlord written
notice of such election at any time after the expiration of such 120-day period
and before Landlord delivers possession of the ROFO Space, in which event
Tenant's election to lease the ROFO Space shall become void on the date that is
thirty (30) days after Tenant gives Landlord such termination notice, unless on
or before the expiration of such 30-day period, Landlord delivers possession of
the ROFO Space to Tenant, in which event such termination shall become void.
Notwithstanding anything herein to the contrary, Tenant's Right of First Offer
pursuant to this Section is subject and subordinate in all respects to the
rights (whether such rights are designated as a right of first offer, right of
first refusal, expansion option or otherwise) of any tenant or occupant of the
Building existing on the date hereof.

     (c) Tenant shall have no right to exercise the ROFO Option unless all of
the following conditions have been satisfied both on the date of the Acceptance
Notice and on the ROFO Space Commencement Date (as hereinafter defined): (a) no
default or Event of Default shall exist at the time of the offer, (b) Landlord
shall not have validly given Tenant more than (2) notices of monetary default
under the Lease in the twelve (12) month period immediately preceding to the
Acceptance Notice and (c) the named Tenant herein (i.e. Virtusa Corporation)
shall occupy not less than seventy percent (70%) of the rentable floor area of
the Premises.

     (d) Effective as of the date on which Landlord delivers the ROFO Space to
Tenant (the "ROFO Space Commencement Date"):

          (i) The ROFO Space shall be added to and be deemed to be a part of the
Premises for all purposes under this Lease (except as otherwise provided in this
Section 8);

          (ii) The ROFO Space shall be delivered in broom-clean condition, free
of all tenants and occupants subject to improvement allowance, if any, offered
in the ROFO Notice.

          (iii) Basic Rent and Additional Rent (including a Base Year) for the
ROFO Space shall be as set forth in the ROFO Notice; and

                                       -6-

<PAGE>

          (iv) Tenant shall pay all Additional Rent payable under this Lease
with respect to the applicable ROFO Space, except to the extent that any such
Additional Rent is included in the amounts payable under clause (iii) above.

     (e) If Tenant exercises the ROFO Option, upon request made by Landlord,
Tenant will execute, acknowledge and deliver to Landlord an amendment to this
Lease confirming the ROFO Space Commencement Date, the Annual Fixed Rent, the
improvement allowance, if any, escalation rent and Additional Rent payable with
respect to the ROFO Space, the incorporation of the ROFO Space into the
Premises, and the modifications to this Lease resulting therefrom, as provided
in Subsection (d) above. The failure of either party to execute and deliver such
an amendment shall not affect the rights, liabilities or obligations of the
parties with respect to the ROFO Space.

     9. Security Deposit Reduction: Notwithstanding any other provision of the
Lease to the contrary, the following provisions shall apply to the Security
Deposit under the lease:

     (a)  As of the date of this Amendment, the Security Deposit being held by
          the Landlord equals $793,039.00. Subject to the following conditions,
          on the Effective Date the Security Deposit shall be reduced to
          $614,897.50. Such reduction, and any future reductions provided for in
          this Section 9, shall, so long as the Security Deposit is in the form
          of one or more letters of credit, be accomplished by the Tenant
          providing the Landlord with a substitute or replacement letter(s) of
          credit in the reduced amount of the security deposit, whereupon the
          Landlord shall forthwith return to the Tenant the letter(s) of credit
          for the previous amount of the Security Deposit.

          The reduction permitted in this Subsection (a) is made on the
          condition that at all times from the Effective Date until December 31,
          2005, the Tenant shall (i) timely make all payments of Basic Rent and
          Additional Rent and (ii) maintain a net worth of at least
          $15,000,000.00 and a cash balance of $5,500,000. If either such
          condition ceases to the satisfied at any time before December 31,
          2005, then, forthwith upon demand therefor by the Landlord, the Tenant
          shall deliver to the Landlord an additional Security Deposit in the
          amount of $178,141.50 (i.e., $793,039.00 minus $614,897.50). Upon
          written request by Landlord, the Tenant shall deliver to the Landlord,
          within thirty (30) days after the close of each calendar quarter
          through December 31, 2005, a quarterly financial statement for the
          Tenant, as certified by the Tenant's Chief Financial Officer, for the
          most recently expired calendar quarter, showing the Tenant's financial
          condition in reasonable detail, including, without limitation, a
          balance sheet which outlines the Tenant's net worth and cash balance
          as of the close of such quarter.

                                       -7-
<PAGE>

     (b)  In addition to the reduction provided for in Subsection (a) above, and
          regardless of whether such reduction is in effect as of the first
          Reduction Date (defined below), if, as of any Reduction Date, as
          hereinafter defined, (i) there is no uncured Event of Default and (ii)
          in the twelve (12) months immediately preceding to the Reduction Date,
          Landlord shall not have validly given Tenant two (2) notices of
          monetary default under the Lease which monetary defaults remained
          uncured for more than thirty (30) days after the applicable notice
          (notwithstanding the cure period provided in the Lease, which shall be
          unaffected by this Amendment), then the amount of the Security Deposit
          shall be reduced to equal the amount set forth below opposite each
          Reduction Rate:

<TABLE>
<CAPTION>
Reduction Date   Security Deposit
--------------   ----------------
<S>              <C>
January 1,2006      $489,258.56
January 1,2008      $346,036.28
January 1,2010      $183,554.94
</TABLE>

     10. The Tenant acknowledges and agrees that the Landlord's agreement to
reduce the Basic Rent payable for the period (the "Rent Reduction Period") from
January 1, 2004, through December 31,2005, is made in consideration of the
Tenant's agreement to extend the Term of the Lease as provided herein and on the
understanding that the Tenant will perform its obligations hereunder and under
the Lease as amended hereby. Accordingly, the Tenant agrees that throughout the
Rent Reduction Period, Basic Rent shall continue to accrue at the rates set
forth in the Lease without taking into account this Amendment (the "Previous
Rate"), provided that Basic Rent shall be payable at the rates set forth herein.
The amount, as of any date, by which the accrued Basic Rent (i.e., at the
Previous Rate) for the Rent Reduction Period exceeds the Basic Rent payable
hereunder (i.e., at the rates set forth in this Amendment) is hereinafter
referred to as the "Deferred Basic Rent". If before December 31,2005, (i) an
Event of Default occurs pursuant to Section 17 (a) the Lease which Event of
Default continues for more than twenty (20) days, i.e. thirty (30) days after
the giving of notice with respect to such default (notwithstanding the cure
period provided in the Lease, which shall be unaffected by this Amendment) or
(ii) an Event of Default occurs pursuant to Section 17(e) of the Lease (unless,
notwithstanding the occurrence of such Event of Default, Tenant continues to
make all required payments and performs all of its other obligations under the
Lease through December 31, 2005), then in the event that the Landlord terminates
the Lease or takes possession of the Premises under Section 18(b) of the Lease
as a result of such Event of Default, in addition to such damages as may be
payable under Article 19 of the Lease, (i) the Tenant shall also be liable to
Landlord in damages for the amount of the Deferred Basic Rent, as of the date of
such termination or taking of possession and (ii) for the balance of the Rent
Reduction Period, Basic Rent shall be payable at the Previous Rate for the
purposes of calculating the Landlord's damages on account of such Event of
Default. If no Event of Default has occurred by January 1,2006, then this
Section 11 shall automatically become void and of no further effect.

                                       -8-

<PAGE>

     11. Tenant acknowledges that the rate currently charged by Landlord for
after-hour HVAC services is $35.00 per hours and that the rate currently
charged by Landlord for electric service is $1.25 per square foot per annum.
Nothing contained herein shall affect Landlord's right to adjust such charges
from time to time as provided in the Lease.

     12. Except as expressly amended hereby, the Lease shall remain in full
force and effect.

     WITNESS the execution hereof under seal as of the date first set forth
above.

                                        LANDLORD:

                                        2000 WESTBOROUGH OFFICE PARK LLC,
                                        a Delaware limited liability company

                                        By: Windsor Realty Fund IV-2002 L.P.,
                                            its sole member and manager

                                        By: Windsor Advisory IV LLC,
                                            its general partner

                                        By: Windsor Investment Company, Inc.,
                                            its sole member and manager

                                        By: /s/ Robert S. Farrington, Jr.
                                            ------------------------------------
                                        Name: Robert S. Farrington, Jr.
                                        Title: Clerk

                                        TENANT:

                                        VITUSA CORPORATION

                                        By: /s/ Paul D. Tutun
                                            ------------------------------------
                                        Name: Paul D. Tutun
                                        Title: Corporate Counsel

                                       -9-<PAGE>

                                                                    Exhibit 10.4

                               VIRTUSA CORPORATION

                             2000 STOCK OPTION PLAN
                    AMENDED & RESTATED AS OF APRIL 17, 2002

1.   PURPOSES OF THE PLAN.

     The purposes of this 2000 Stock Option Plan of Virtusa Corporation, a
Delaware corporation (the "Company"), are to promote the interests of the
Company and its stockholders by strengthening the Company's ability and that of
its Subsidiaries to attract, motivate, and retain employees, directors,
Consultants and advisors of exceptional ability and to provide a means to
encourage stock ownership and a proprietary interest in the Company to selected
employees, directors, Consultants and advisors of the Company upon whose
judgment, initiative, and efforts the financial success and growth of the
business of the Company largely depend.

2.   DEFINITIONS.

          (a) "Acquisition " means

               (i) a merger, reorganization or consolidation between the Company
          and another person or entity (other than a holding company or Parent
          or Subsidiary of the Company) as a result of which the holders of the
          Company's outstanding voting stock immediately prior to the
          transaction hold less than a majority of the outstanding voting stock
          of the surviving entity immediately after the transaction,

               (ii) the sale, transfer, or other disposition of all or
          substantially all of the Company's assets to one or more persons
          (other than any wholly owned Subsidiary) in a single transaction or
          series of related transactions, or

               (iii) the direct or indirect sale or exchange in a single or
          series of related transactions by the stockholders of the Company of
          more than 50% of all of the Common Stock of the Company to an
          unrelated person or entity as a result of which the holders of the
          Company's outstanding voting stock immediately prior to the
          transaction hold less than a majority of the outstanding voting stock
          of the surviving entity immediately after the transaction.

          (b) "Act" means the Securities Act of 1933, as amended.

          (c) "Award" or "Awards" shall include Incentive Stock Options,
     Nonqualified Stock Options, Restricted Stock, and Unrestricted Stock, or
     any combination of the forgoing.

          (d) "Board" means the Board of Directors of the Company or its
     successor entity.

<PAGE>

                                      -2-

          (e) "Code" means the Internal Revenue Code of 1986, as amended, and
     related rules, regulations and interpretations.

          (f) "Committee" means the Compensation Committee of the Board;
     provided, that the Board by resolution duly adopted may at any time or from
     time to time determine to assume any or all of the functions of the
     Committee under the Plan, and during the period of effectiveness of any
     such resolution, references herein to the "Committee" shall mean the Board
     acting in such capacity.

          (g) "Common Stock" means the common stock of the Company, par value
     $.01 per share.

          (h) "Company has the meaning specified in Section 1.

          (i) "Consultant" means a person engaged to provide consulting or
     advisory services (other than as an employee or director) to the Company or
     its Subsidiaries, provided that the identity of such person, the nature of
     such services or the entity to which such services are provided would not
     preclude the Company from offering or selling securities to such person
     pursuant to the Plan in reliance on either the exemption from registration
     provided by Rule 701 under the Act or, if the Company is required to file
     reports pursuant to Section 13 or 15(d) of the Exchange Act, registration
     on a Form S-8 Registration Statement under the Act.

          (j) "Covered Employee " has the meaning specified in Section 4(b).

          (k) "Eligible Person" means any person who is an employee (including
     officers and employee directors), director, Consultant or advisor of the
     Company or any Subsidiary.

          (l) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended and in effect from time to time.

          (m) "Fair Market Value" means the value of a share of Common Stock as
     of the relevant time of reference, as determined in good faith by the
     Committee without regard to any restriction other than a restriction which,
     by its terms, will never lapse; provided, however: (i) if the Common Stock
     is then traded on a national securities exchange, the Fair Market Value on
     any given date shall not be less than the last reported closing price of a
     share of Common Stock on such securities exchange; (ii) if the Common Stock
     is then traded on the Nasdaq National Market System, the Fair Market Value
     on any given date shall not be less than the last reported closing price of
     the Common Stock as reported on such system; or (iii) if the Common Stock
     is admitted to quotation on the Nasdaq National Market System, the Fair
     Market Value on any given date shall not be less than the average of the
     highest bid and lowest asked prices for the Common Stock reported for such
     date or, if no bid and asked prices were reported for such date, for the
     last day preceding such date for which such prices were reported; provided
     further that, if the date for which the Fair Market Value is determined is
     the first

<PAGE>

                                      -3-

     day when trading prices for the Common Stock are reported on the Nasdaq
     National Market System or trading on a national securities exchange, the
     Fair Market Value shall be the "Price to the Public" (or its equivalent)
     set forth on the cover page for the final prospectus relating to the
     Company's Initial Public Offering. After the Initial Public Offering, if
     the relevant date does not fall on a day on which the Common Stock has
     traded on the Nasdaq National Market System or on a national securities
     exchange or market, the date on which the Fair Market Value shall be
     established shall be the last day on which the Common Stock was so traded
     prior to the relevant Date, or such other appropriate day as shall be
     determined by the Committee, in its discretion.

          (n) "Incentive Stock Option" means an option designated and intended
     to qualify as an "incentive stock option" under Section 422(b) of the Code.

          (o) "Initial Public Offering" means the consummation of the first
     fully underwritten, firm commitment public offering pursuant to an
     effective registration statement under the Act, other than on Forms S-4 or
     S-8 or their then equivalents, covering the offer and sale by the Company
     of its equity securities or such other event as a result of or following
     which the stock shall be publicly held.

          (p) "Nonqualified Stock Option" means an Option that is not designated
     as an Incentive Stock Option or which does not qualify as an Incentive
     Stock Option.

          (q) "Option" means an Incentive Stock Option or a Nonqualified Stock
     Option.

          (r) "Option Agreement" means a written agreement between the Company
     and a Participant setting forth the terms, conditions and restrictions of
     the Option granted to the Participant and any shares of Common Stock
     acquired upon the exercise thereof. An Option Agreement may consist of a
     "Notice of Grant of Stock Option" and a form of "Stock Option Agreement"
     incorporated therein by reference, or such other form or forms as the
     Committee may approve from time to time.

          (s) "Outside Director" has the meaning specified in Section 4(b).

          (t) "Parent" means any parent of the Company as defined in Section
     424(e) of the Code.

          (u) "Participant" means any Eligible Person selected to receive an
     Option pursuant to Section 5 or any Permitted Transferee.

          (v) "Permitted Transferee" means any member of a Participant's
     immediate family, a trust for the benefit of such family members, a
     partnership in which such family members are the only partners, or a
     limited liability company in which such family members are the only
     members.

          (w) "Plan" means this 2000 Stock Option Plan as set forth herein and
     as amended and/or restated from time to time.
<PAGE>

                                       -4-

          (x) "Restricted Stock" has the meaning specified in Section 7(a).

          (y) "Restricted Stock Agreement" means a written agreement between the
     Company and a Participant setting forth the terms, conditions and
     restrictions of an award of Restricted Stock granted to the Participant and
     any shares of Common Stock subject thereto.

          (z) "Section 260.140.45" has the meaning specified in Section 3(d).

          (aa) "Service Relationship" means a Participant's employment or
     service with the Company or its Subsidiary, whether in the capacity of an
     employee, director or a Consultant. Unless otherwise determined by the
     Committee, a Participant's Service Relationship shall not be deemed to have
     terminated merely because of a change in the capacity in which the
     Participant renders service to the Company or a transfer between locations
     of the Company or its Subsidiaries or a transfer between the Company and
     any Subsidiary, provided that there is no interruption or other termination
     of the Service Relationship. Subject to the foregoing and Section 10 below,
     the Company, in its discretion, shall determine whether the Participant's
     Service Relationship has terminated and the effective date of such
     termination.

          (bb) "Subsidiary" means any subsidiary of the Company as defined in
     Section 424(f)of the Code.

          (cc) "Unrestricted Stock" has the meaning specified in Section 8(a).

          (dd) "10% Owner Optionee" means an individual who owns or is deemed to
     own (by reason of the attribution rules of Section 424(b) of the Code) more
     than 10% of the combined voting power of all classes of stock of the
     Company or any Parent or Subsidiary.

3.   SHARES OF COMMON STOCK SUBJECT TO THE PLAN.

          (a) Subject to adjustment in accordance with the provisions of Section
     11 below, the maximum aggregate number of shares of Common Stock reserved
     and available for issuance under the Plan shall be 6,000,000 shares.

          (b) The shares of Common Stock to be delivered under the Plan will be
     made available, at the discretion of the Committee, from authorized but
     unissued shares of Common Stock and/or from previously issued shares of
     Common Stock reacquired by the Company.

          (c) For purposes of the limitation set forth in Section 3(a) above,
     the shares of Common Stock underlying any Award which is forfeited,
     canceled, reacquired by the Company, satisfied without the issuance of
     Common Stock or otherwise terminated (other than by exercise) shall be
     added back to the shares of Common Stock available for issuance under the
     Plan.

<PAGE>

                                       -5-

          (d) Notwithstanding the foregoing, at any time that the offer and sale
     of securities pursuant to the Plan is subject to the compliance with
     Section 260.140.45 of Title 10 of the California Code of Regulations
     ("Section 260.140.45"), the total number of shares of Common Stock issuable
     upon the exercise of all outstanding Awards (together with options,
     restricted stock or unrestricted stock outstanding under any other stock
     option plan of the Company) and the total number of shares of Common Stock
     provided for under any stock bonus or similar plan of the Company shall not
     exceed thirty percent (30%) (or such higher percentage limitation as may be
     approved by the stockholders of the Company pursuant to Section 260.140.45)
     of the then outstanding shares of the Company as calculated in accordance
     with the conditions and exclusions of Section 260.140.45.

4.   ADMINISTRATION OF THE PLAN.

          (a) The Plan will be governed by and interpreted and construed in
     accordance with the internal laws of the State of Delaware (without
     reference to principles of conflicts or choice of law). The captions of
     sections of the Plan are for reference only and will not affect the
     interpretation or construction of the Plan.

          (b) The Plan will be administered by the Committee, which shall
     consist of not less than two directors; provided, however, that if each
     member of the Committee is not a "Non-Employee Director" within the meaning
     of Rule 16b-3(a)(3) of the Exchange Act, then any Awards granted to
     individuals subject to the reporting requirements of Section 16 of the
     Exchange Act shall be approved by the Board. Notwithstanding the foregoing,
     after the end of the reliance period as defined in Treasury Regulation
     1.162-27(f) following the Company's Initial Public Offering, Awards granted
     to "Covered Employees" which might reasonably be anticipated to result in
     the payment of employee remuneration that would otherwise exceed the limit
     on employee remuneration deductible for income tax purposes pursuant to
     Section 162(m) of the Code shall be approved by a Committee composed solely
     of two or more "Outside Directors" (each within the meaning of Section
     162(m) of the Code).

          (c) The Committee has and may exercise such powers and authority as
     may be necessary or appropriate for the Committee to carry out its
     functions as described in the Plan. The Committee shall make all
     determinations required under the Plan, including the Eligible Persons to
     whom, and the time or times at which, Awards may be granted, the exercise
     price or purchase price (if any) of each Award, whether each Option is
     intended to qualify as an Incentive Stock Option or a Nonqualified Stock
     Option, and the number of shares subject to each Award. The Committee also
     has authority (i) to interpret the Plan, (ii) to determine the terms and
     provisions of the Awards, (iii) to determine and modify from time to time
     the terms and conditions, including restrictions, not inconsistent with the
     terms of the Plan, of any Award, which terms and conditions may differ
     among individual Awards and Participants, (iv) to approve the form of
     written agreements evidencing the Awards, and (v) to make all other
     determinations necessary or advisable for Plan administration. The
     Committee has authority to prescribe, amend, and

<PAGE>

                                       -6-

     rescind rules and regulations relating to the Plan. All interpretations,
     determinations, and actions by the Committee will be final, conclusive, and
     binding upon all parties.

          (d) No member of the Committee will be liable for any action taken or
     determination made in good faith by the Committee with respect to the Plan
     or any Awards granted under it.

          (e) The Committee, in its discretion, may delegate to the Chief
     Executive Officer, President and/or the Chief Financial Officer of the
     Company all or part of the Committee's authority and duties with respect to
     the granting of Awards at Fair Market Value to individuals who are not
     subject to the reporting and other provisions of Section 16 of the Exchange
     Act or Covered Employees. The Committee may revoke or amend the terms of a
     delegation at any time but such action shall not invalidate any prior
     actions of the Committee's delegate or delegates that were consistent with
     the terms of the Plan.

5.   GRANTS.

          (a) The Committee shall determine and designate from time to time
     those Eligible Persons who are to be granted Awards, the type of Award to
     be granted and the number of shares covered thereby or issuable upon
     exercise thereof. Each Award will be evidenced by a written agreement which
     shall be in such form as the Committee may from time to time approve;
     provided that, agreements issued to Eligible Persons need not be identical.

          (b) Awards may be granted to employees, directors, Consultants and
     advisors of the Company and its Subsidiaries (including prospective
     employees, directors, Consultants and advisors to whom Awards are granted
     in connection with written offers of employment or other service with the
     Company or its Subsidiaries) who are responsible for, or contribute to, the
     management, growth or profitability of the Company and its Subsidiaries as
     are selected from time to time by the Committee, in its sole discretion.

          (c) No 10% Owner Optionee will be eligible for the grant of an
     Incentive Stock Option; provided that, if at the time such Incentive Stock
     Option is granted, its exercise price is at least 110% of the Fair Market
     Value of the Common Stock and, by its terms, it is not exercisable after
     the expiration of five years from the date of grant, then such 10% Owner
     Optionee may be granted an Incentive Stock Option.

          (d) Incentive Stock Options may be granted only to employees of the
     Company or any Subsidiary; provided, however, an Incentive Stock Option may
     be granted to a prospective employee upon the condition that such person
     becomes an employee and such grant shall be deemed granted effective on the
     date that such person commences service with the Company or its
     Subsidiaries, with an exercise price determined as of such date in
     accordance with Sections 5(c) and 6(a).

          (e) No Incentive Stock Options shall be granted under the Plan after
     May 4, 2010.
<PAGE>

                                       -7-

6.   TERMS AND CONDITIONS OF OPTIONS.

          (a) Subject to Section 5(c) and 5(d) above, the price at which Common
     Stock may be purchased by a Participant under an Option shall be determined
     by the Committee; provided, however, that the exercise price under an
     Incentive Stock Option shall not be less than 100% of the Fair Market Value
     of the Common Stock on the date of grant of such Option. Notwithstanding
     the foregoing, an Incentive Stock Option may be granted with an exercise
     price lower than the minimum exercise price per share set forth herein and
     in Sections 5(c) and 5(d) above if the Incentive Stock Option is granted
     pursuant to an assumption or substitution for another option in a manner
     qualifying under Section 424(a) of the Code.

          (b) Each Option shall be exercisable at such time or times, during
     such periods, and for such numbers of shares as shall be determined by the
     Committee and set forth in the applicable Option Agreement evidencing the
     Option. A Participant shall have no rights of a stockholder with respect to
     any shares covered by an Option until the date of the issuance of a
     certificate for the shares for which the Option has been exercised (as
     evidenced by an appropriate entry on the books of the Company or of a duly
     authorized transfer agent of the Company). No adjustment shall be made for
     dividends, distributions or other rights which the record date is prior to
     the date such certificate is issued, except as provided in Section 11
     below. Subject to Section 5(c) above, the term of each Option shall expire
     no later than the 10th anniversary of its date of grant.

          (c) Options may be exercised in whole or in part, by giving written
     notice of exercise to the Company, specifying the number of shares of
     Common Stock to be purchased. Payment of the exercise price may be made by
     one or more of the following methods to the extent provided in the Option
     Agreement:

                    (A) in cash, by certified or bank check, or other instrument
               acceptable to the Committee in U.S. funds payable to the order of
               the Company;

                    (B) if permitted by the Committee in its sole and absolute
               discretion (x) at the time of grant if the Option is an Incentive
               Stock Option or (y) at any time if the Option is a Nonqualified
               Stock Option, by the Participant delivering to the Company a
               promissory note (which may be recourse or partially recourse to
               the Participant) in a form approved by the Committee; provided
               that at least so much of the exercise price as represents the par
               value of the Common Stock shall be paid other than with a
               promissory note if otherwise required by state law;

                    (C) after the closing of the Company's Initial Public
               Offering, if permitted by the Committee, (x) through the delivery
               (or attestation to ownership) of shares of Common Stock held by
               the Participant for the requisite period necessary to avoid a
               charge to the Company's earnings for financial reporting purposes
               and valued at Fair Market Value on the

<PAGE>

                                       -8-

               exercise date, or (y) by the Participant delivering to the
               Company a properly executed exercise notice together with
               irrevocable instructions to a broker to promptly deliver to the
               Company cash or a check payable and acceptable to the Company to
               pay the exercise price; provided that, in the event the
               Participant chooses such payment procedure, the Participant and
               the broker shall comply with such procedures and enter into such
               agreements of indemnity and other agreements as the Committee
               shall prescribe as a condition of such payment procedure; or

                    (D) any combination of the payment methods set forth in
               clauses (A), (B), and (C) above.

          Payment instruments will be received subject to collection. No
     certificates for shares of Common Stock so purchased will be issued to the
     Participant until the Company has completed all steps required by law to be
     taken in connection with the issuance and sale of such shares, including,
     without limitation, obtaining from Participant payment or provision for all
     withholding taxes due as a result of the exercise of the Option. The
     delivery of certificates representing the shares of Common Stock to be
     purchased pursuant to the exercise of an Option will be contingent upon
     receipt from the Participant (or a purchaser acting in his or her stead in
     accordance with the provisions of the Option) by the Company of the full
     exercise price for such shares and the fulfillment of any other
     requirements contained in the Option Agreement or applicable provisions of
     law. If the Participant chooses to pay the exercise price by delivery of
     previously owned shares of Common Stock by the attestation method set forth
     in clause (C)(x) above, the shares of Common Stock transferred to the
     Participant upon the exercise of the Option shall be net of the number of
     the shares of Common Stock delivered.

          (d) To the extent that the aggregate Fair Market Value (determined as
     of the date the Incentive Stock Option is granted) of the number of shares
     of Common Stock with respect to which Incentive Stock Options are
     exercisable for the first time by a Participant in any calendar year (under
     all option plans of the Company, its Parent and/or its Subsidiaries)
     exceeds $100,000 (or such other limit as may be required by the Code) such
     Incentive Stock Options shall constitute Nonqualified Stock Options. For
     purposes of this Section 6(d), Incentive Stock Options shall be taken into
     account in the order in which they were granted. If pursuant to the above,
     an Incentive Stock Option is treated as an Incentive Stock Option in part
     and a Nonqualified Stock Option in part, the Participant may designate
     which portion of the Option the Participant is exercising. In the absence
     of such designation, the Participant shall be deemed to have exercised the
     Incentive Stock Option portion of the Option first.

          (e) No Option shall be transferable by a Participant otherwise than by
     will or by the laws of descent and distribution and all Options shall be
     exercisable, during a Participant's lifetime, only by the Participant, or,
     in the event of the Participant's incapacity, by the Participant's legal
     representative or guardian. Notwithstanding the foregoing, the Committee,
     in its sole discretion, may provide in the Option Agreement

<PAGE>

                                       -9-

     regarding a given Nonqualified Option that a Participant may transfer,
     without consideration for the transfer, his or her Nonqualified Stock
     Option to any Permitted Transferee; provided that such Permitted Transferee
     agrees in writing with the Company to be bound by all of the terms and
     conditions of this Plan and the applicable Option Agreement.

          (f) Shares of Common Stock issued pursuant to Options may be subject
     to a right of first refusal, one or more repurchase options, or other
     conditions and restrictions as determined by the Committee and set forth in
     the applicable Option Agreement. The Company shall have the right to assign
     to any person at any time any repurchase right it may have, whether or not
     such rights is then exercisable.

7.   RESTRICTED STOCK AWARDS.

          (a) The Company may, pursuant to an Award of Restricted Stock, sell,
     at par value or such greater purchase price as determined by the Committee,
     in its sole discretion, shares of Common Stock subject to such restrictions
     and conditions as the Committee may determine at the time of grant, which
     purchase price shall be payable in cash or, if permitted by the Committee
     at the time of grant of such Award, by promissory note (which may be
     recourse or partially recourse to the Participant), in a form approved by
     the Committee; provided that, at least so much of the purchase price as
     represents the par value of the Stock shall be paid other than with a
     promissory note if required by state law. Conditions may be based on
     continuation of a Service Relationship and/or achievement of
     pre-established performance goals and objectives or such other terms as may
     be determined by the Committee in its sole discretion. The grant of
     Restricted Stock is contingent on the Participant executing a Restricted
     Stock Agreement. The terms and conditions of each such Restricted Stock
     Agreement shall be determined by the Committee and such terms and
     conditions may differ among individual Awards and Participants.

          (b) Upon execution of the Restricted Stock Agreement and payment of
     any applicable purchase price, a Participant shall have the rights of a
     stockholder with respect to the voting of the Restricted Stock, subject to
     any conditions contained in the Restricted Stock Agreement. Unless the
     Committee shall otherwise determine, certificates evidencing the Restricted
     Stock shall remain in the possession of the Company until such Restricted
     Stock is vested as provided in Section 7(d) below, and the Participant
     shall be required, as a condition of the grant, to deliver to the Company a
     stock power endorsed in blank.

          (c) Restricted Stock may not be sold, assigned, transferred, pledged
     or otherwise encumbered or disposed of except as specifically provided
     herein or in the Restricted Stock Agreement. Shares of Common Stock issued
     pursuant to an award of Restricted Stock may be subject to a right of first
     refusal, one or more repurchase options, or other conditions and
     restrictions as determined by the Committee and set forth in the applicable
     Restricted Stock Agreement. The Company shall have the right to assign to
<PAGE>

                                      -10-

     any person at any time any repurchase right it may have, whether or not
     such right is then exercisable.

          (d) The Committee at the time of grant shall specify the date or dates
     and/or the attainment of pre-established performance goals, objectives and
     other conditions on which Restricted Stock shall become vested, subject to
     such further rights of the Company or its assigns as may be specified in
     the Restricted Stock Agreement.

          (e) The Restricted Stock Agreement may require or permit the immediate
     payment, waiver, deferral or investment of dividends paid on the Restricted
     Stock..

8.   UNRESTRICTED STOCK AWARDS.

          (a) The Committee may, in its sole discretion, grant or sell an
     Unrestricted Stock Award to any Participant, pursuant to which such
     Participant may receive shares of Common Stock free of any vesting
     restrictions ("Unrestricted Stock") under the Plan. Unrestricted Stock
     Awards may be granted or sold as described in the preceding sentence in
     respect of past services or other valid consideration.

          (b) The right to receive shares of Unrestricted Stock on a deferred
     basis may not be sold, assigned, transferred, pledged or otherwise
     encumbered, other than by will or the laws of descent and distribution.

9.   TAX WITHOLDING.

          (a) Each Participant shall, no later than the date as of which the
     value of an Award or of any Common Stock or other amounts received
     thereunder first becomes includable in the gross income of the Participant
     for federal income tax purposes, pay to the Company, or make arrangements
     satisfactory to the Committee regarding payment of, any federal, state,
     foreign, or local taxes of any kind required by law to be withheld with
     respect to such income. The Company and its Subsidiaries shall, to the
     extent permitted by law, have the right to deduct any such taxes from any
     payment of any kind otherwise due to the Participant.

          (b) Subject to approval by the Committee, a Participant may elect to
     have the minimum required tax withholding obligation satisfied, in whole or
     in part, by (i) authorizing the Company to withhold from shares of Common
     Stock to be issued pursuant to any Award a number of shares with an
     aggregate Fair Market Value (as of the date the withholding is effected)
     that would satisfy the withholding amount due, or (ii) transferring to the
     Company shares of Common Stock owned by the Participant with an aggregate
     Fair Market Value (as of the date the withholding is effected) that would
     satisfy the withholding amount due. The Fair Market Value of any shares of
     Common Stock withheld or tendered to satisfy any such tax withholding
     obligation shall not exceed the amount determined by the applicable minimum
     statutory withholding rates.

10.  LEAVE OF ABSENCE.

<PAGE>

                                      -11-

          For purposes of the vesting and exercisability of Awards under the
     Plan an approved leave of absence for military service or sickness, or for
     any other purpose approved by the Company shall not be deemed a termination
     of the Service Relationship; provided, however, that if any such leave
     exceeds ninety (90) days, on the ninety-first (91st) day of such leave, the
     Participant's Service Relationship shall be deemed to have terminated
     unless the Participant's right to return to service is guaranteed either by
     a statute or by contract. Further, an approved leave of absence for
     maternity or, in the Company's sole discretion, a medical reason, shall be
     treated as service for purposes of determining vesting under the
     Participant's Option Agreement or Restricted Stock Agreement; provided
     that, if any such leave exceeds 12 weeks, then beginning on the first day
     of the 13th week, such leave shall not be treated as service for purposes
     of vesting (i.e., the vesting schedule shall be tolled for the period of
     the leave of absence beyond 12 weeks). Notwithstanding anything stated
     herein, unless otherwise designated by the Company or required by law, any
     other leave of absence shall not be treated as service for purposes of
     vesting.

11.  ADJUSTMENT PROVISIONS.

          (a) Subject to Section 11(b), if the outstanding shares of Common
     Stock of the Company are increased, decreased, or exchanged for a different
     number or kind of shares or other securities, or if additional shares or
     new or different shares or other securities are distributed with respect to
     such shares of Common Stock or other securities, through merger,
     consolidation, sale of all or substantially all the property of the
     Company, reorganization, recapitalization, reclassification, stock
     dividend, stock split, reverse stock split, or other distribution with
     respect to such shares of Common Stock, or other securities, an appropriate
     and proportionate adjustment shall be made in (i) the maximum number of
     shares reserved for issuance under the Plan, (ii) the numbers and kinds of
     shares or other securities subject to the then outstanding Awards, (iii)
     the exercise price and/or repurchase price for each share subject to then
     outstanding Options (without change in the aggregate exercise price and/or
     repurchase price as to which such Options remain exercisable), and (iv) the
     repurchase price per share for each outstanding Restricted Stock Award);
     provided that, such exercise and/or repurchase price may not be less than
     the par value of the Common Stock.

          (b) Upon the effectiveness of an Acquisition:

               (i) except with respect to specific Awards as the Committee
          otherwise determines at the time of grant and as set forth therein,
          all shares subject to outstanding Awards not otherwise accelerated and
          vested under the terms of the original grant, to the extent not
          assumed by the acquiring entity or replaced by comparable options to
          purchase shares of the capital stock of the successor or acquiring
          entity or parent thereof (the determination of comparability to be
          made by the Committee, which determination shall be final, binding,
          and conclusive) (an "Assumption") shall, subject to and conditioned
          upon the effectiveness of the Acquisition, become vested and
          exercisable in full 10 days prior to the anticipated effective date of
          the Acquisition as determined by the Committee, except with

<PAGE>

                                      -12-

          respect to specific Awards as the Committee otherwise determines at
          the time of grant; and

               (ii) unless there is an Assumption, the Plan and all outstanding
          Options shall terminate upon the effectiveness of the Acquisition.

          (c) In the event that Options are terminated pursuant to Section 1
     l(b)(ii) above, each Participant shall be permitted to exercise for a
     period of at least 10 days prior to the anticipated effective date of such
     Acquisition all outstanding Options held by such Participant which are then
     vested and exercisable (after giving effect to the acceleration of vesting
     provided for in connection with the Acquisition); provided, however: (i)
     the exercise of the portion of such Options that became vested and
     exercisable in connection with the Acquisition shall be subject to and
     conditioned upon the effectiveness of the Acquisition, and (ii) the
     Participant may, but will not be required to, condition the exercise of any
     portion of an Option not described in (i) above upon the effectiveness of
     the Acquisition.

          (d) Following the effectiveness of an Assumption, the unvested portion
     of all outstanding Awards, if any, shall continue to vest in accordance
     with the vesting schedule set forth in such Awards, in the same proportions
     and on the same dates as the shares of Common Stock would have vested had
     there been no acceleration of vesting (i.e. if 25% of the original shares
     of Common Stock subject to the Award would have vested on a specified date,
     then 25% of the original shares of Common Stock subject to the Award, less
     the number of shares of Common Stock that would have vested on that date
     but which accelerated in connection with the Acquisition, shall vest on
     such specified date) and all such Awards shall otherwise be adjusted as
     provided in Section 11(a) above.

          (e) Adjustments under this Section 11 will be made by the Committee,
     whose determination as to what adjustments will be made and the extent
     thereof so as to effectuate the intent of this Section 11 will be final,
     binding, and conclusive. No fractional shares will be issued under the Plan
     on account of any such adjustments, but the Committee, in its discretion,
     may either make a cash payment in lieu of fractional shares or round any
     resulting fractional share down to the nearest whole number.

          (f) In the event of a dissolution or liquidation of the Company, any
     outstanding Options issued under the Plan shall be terminated if not
     exercised prior to such event.

          (g) The Committee may grant Awards under the Plan in substitution for
     stock and stock based awards held by employees, directors or consultants of
     another company in connection with a merger or consolidation of such
     company with the Company (or its Parent or any Subsidiary) or the
     acquisition by the Company (or its Parent or any Subsidiary) of property or
     stock of such company. The Committee may direct that the substitute Awards
     be granted on such terms and conditions as the Committee considers
     appropriate in the circumstances. Any substitute Awards granted under the
     Plan shall not count against the share limitation set forth in Section 3
     (a) above.
<PAGE>

                                      -13-

12.  ADDENDUM A: CALIFORNIA GRANTEES.

          Addendum A attached hereto shall be incorporated by reference in its
     entirety and shall only be applicable to the grant of Awards under the Plan
     to Participants who are located in or providing services to the Company or
     one of its Subsidiaries in the State of California.

13.  GENERAL PROVISIONS.

          (a) Nothing contained in this Plan shall prevent the Committee from
     adopting other or additional compensation arrangements and such
     arrangements as may be either generally applicable or applicable only in
     specific cases. Nothing in the Plan or in any instrument executed pursuant
     to the Plan will confer upon any Participant any right to continued
     employment or service with the Company or any of its Subsidiaries or affect
     the right of the Company or any Subsidiary to terminate the employment,
     directorship or consulting or advising relationship of any Participant at
     any time, with or without cause.

          (b) The grant of Awards and the issuance of shares of Common Stock
     upon exercise of Awards shall be subject to compliance with all applicable
     requirements of federal, state and foreign law with respect to such
     securities. Options may not be exercised if the issuance of shares of
     Common Stock upon exercise would constitute a violation of any applicable
     federal, state or foreign securities laws or other law or regulations or
     the requirements of any stock exchange or market system upon which the
     Common Stock may then be listed. In addition, no Option may be exercised
     unless: (a) a registration statement under the Act shall at the time of
     exercise of the Option be in effect with respect to the shares of Common
     Stock issuable upon exercise of the Award, or (b) in the opinion of legal
     counsel to the Company, the shares of Common Stock issuable upon exercise
     of the Award may be issued in accordance with the terms of an applicable
     exemption from the registration requirements of the Act. The inability of
     the Company to obtain from any regulatory body that has jurisdiction, the
     authority, if any, deemed by Company's legal counsel to be necessary to the
     lawful issuance and sale of any shares hereunder shall relieve the Company
     of any liability in respect of the failure to issue or sell such shares as
     to which such requisite authority shall not have been obtained. As a
     condition to the exercise of any Award, the Company may require the
     Participant to satisfy any qualifications that may be necessary or
     appropriate, to evidence compliance with any applicable law or regulation
     and to make any representation or warranty with respect thereto as may be
     requested by the Company.

          (c) Stock certificates issued under this Plan shall be deemed
     delivered for all purposes when the Company or a stock transfer agent of
     the Company shall have mailed such certificates in the United States mail,
     addressed to the Participant, at the Participant's last known address on
     file with the Company.

          (d) Sale of Common Stock received pursuant to this Plan or upon
     exercise of an Award under the Plan shall be subject to any
     insider-trading-policy-related restrictions,

<PAGE>

                                      -14-

     terms and conditions as may be established by the Committee, or in
     accordance with policies set by the Committee, from time to time.

          (e) In the event of a conflict between the terms and provisions of
     this Plan and the terms and provisions of any Restricted Stock Agreement or
     Option Agreement, the terms and provisions of this Plan shall govern.

14.  AMENDMENT AND TERMINATION.

          (a) The Board shall have the power, in its discretion, to amend,
     modify, suspend, or terminate the Plan at any time, subject to applicable
     law and the rights of holders of outstanding Options on the date of such
     action. No amendment, modification, suspension or termination of the Plan
     shall affect any outstanding Award unless expressly provided hereunder or
     as determined by the Board. Further, no such amendment, modification,
     suspension or termination of the Plan, unless taken with the approval of
     the stockholders of the Company, may: (a) increase the maximum number of
     shares of Common Stock for which Awards granted under this Plan may be
     issued (except by operation of Section 11(a)); (b) alter the class of
     employees eligible to receive Incentive Stock Options under the Plan; or
     (c) amend the Plan in any other manner which the Board, in its discretion,
     determines would require approval of the stockholders under any applicable
     law, rule or regulation to become effective even though such stockholder
     approval is not expressly required by this Plan. Nothing in this Section
     14(a) shall limit the Board's or Committee's authority to take any action
     permitted pursuant to Section 11(b).

          (b) No amendment, suspension or termination of the Plan will, without
     the consent of the Participant, adversely affect any right or obligation
     under any Award previously granted to such Participant under the Plan
     unless (i) required to ensure that an Option is treated as an Incentive
     Stock Option or (ii) to comply with applicable law.

15.  EFFECTIVE DATE OF PLAN AND DURATION OF PLAN.

     The Plan became effective upon its adoption by the Board and by the
Company's stockholders on May 5, 2000. The Plan shall continue in effect until
the earlier of: (i) its termination by the Board, (ii) the date on which all of
the shares of Common Stock available for issuance under the Plan have been
issued and all restrictions on such shares under the terms of the Plan and the
applicable Option Agreements and Restricted Stock Agreements have lapsed, or
(iii) May 4, 2010.

<PAGE>

                            FORM--US EMPLOYEE VERSION

                             STOCK OPTION AGREEMENT
                                    UNDER THE
                   VIRTUSA CORPORATION 2000 STOCK OPTION PLAN

     Pursuant to the Virtusa Corporation 2000 Stock Option Plan (the "Plan"),
Virtusa Corporation, a Delaware corporation (together with its successors, the
"Company"), hereby grants to the person (the "Grantee") named in the Notice of
Grant of Stock Option attached hereto (the "Notice") to which this Stock Option
Agreement (the "Option Agreement") is attached, an option (together with the
Notice, referred to herein as the "Option") to purchase on or prior to the
expiration date specified in the Notice (the "Expiration Date"), or such earlier
date as is specified herein, all or any part of the number of shares of Common
Stock of the Company indicated in the Notice (the "Option Shares" and such
shares once issued shall be referred to as the "Issued Shares"), at the exercise
price per share specified in the Notice (the "Exercise Price") and subject to
the terms and conditions set forth in this Option Agreement, the Notice and the
Plan, including the adjustment provision thereof. All capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in
the Notice and the Plan (as applicable).

     If this Option is designated as an Incentive Stock Option in the Notice,
this Option is intended to qualify as an "incentive stock option" as defined in
Section 422(b) of the Code. To the extent that any portion of this Option does
not so qualify as an Incentive Stock Option or, if this Option is designated as
a Nonqualified Stock Option in the Notice, it shall be deemed a Nonqualified
Stock Option. The Grantee should consult with the Grantee's own tax advisor
regarding the tax effects of this Option (and any requirements necessary to
obtain favorable income tax treatment under Section 422 of the Code, including,
but not limited to, holding period requirements).

     1. Vesting and Exercisability.

          (a) No portion of this Option may be exercised until such portion
shall have vested.

          (b) Except as set forth below and in Section 5 hereof, this Option
shall be exercisable on and after the Initial Vesting Date and prior to the
termination of the Option as provided herein, in an amount not to exceed the
number of Vested Shares (as determined in the Notice) less the number of shares
previously acquired upon exercise of this Option. In no event shall this Option
be exercisable for more than the Number of Option Shares (as designated in the
Notice).

          (c) In the event that the Grantee's Service Relationship terminates,
this Option may thereafter be exercised, to the extent it was vested and
exercisable on the date of such termination, until the date specified in Section
1(d) hereof. Any portion of this Option that is not exercisable on the date of
termination of the Service Relationship shall immediately expire and be null and
void.

<PAGE>

          (d) Subject to the provisions of Section 5 hereof, once any portion of
this Option becomes vested and exercisable, it shall continue to be exercisable
by the Grantee or his or her representatives and legatees as contemplated herein
at any time or times prior to the earliest of (i) the date which is (A) twelve
(12) months following the date on which the Grantee's Service Relationship
terminates due to death or disability, or (B) three (3) months following the
date on which the Grantee's Service Relationship terminates if the termination
is due to any other reason, or (ii) the Expiration Date set forth in the Notice;
provided that, notwithstanding the foregoing, if the Grantee's Service
Relationship is terminated for "Cause", this Option shall terminate immediately
and be null and void upon the date of the Grantee's termination and shall not
thereafter be exercisable. For purposes hereof, "Cause" means: (i) any material
breach by the Grantee of any agreement to which the Grantee and the Company are
parties, including breach of covenants not to compete and covenants relating to
the protection of confidential information and proprietary rights of the
Company, which breach is not cured pursuant to the terms of such agreements,
(ii) any act (other than retirement) or omission to act by the Grantee which
would reasonably be likely to have a material adverse effect on the business of
the Company, as the case may be, or on the Grantee's ability to perform services
for the Company, as the case may be, (iii) the Grantee's conviction (including
any pleas of guilty or nolo contendre) of any crime (other than ordinary traffic
violations) which impairs the Grantee's ability to perform his or her duties,
(iv) any material misconduct or willful and deliberate non-performance of duties
by the Grantee in connection with the business or affairs of the Company, as the
case may be, (v) the Grantee's theft, dishonesty or falsification of the
Company's documents or records, or (vi) the Grantee's improper use or disclosure
of the Company's confidential or proprietary information. For purposes of the
definition of "Cause" set forth herein, all references to the Company shall be
deemed to include the Company's Parent or any Subsidiary.

          (e) If designated as an Incentive Stock Option in the Notice, the
Grantee understands that in order to obtain the benefits of an incentive stock
option under Section 422 of the Code, subject to any amendments thereof, no sale
or other disposition may be made of Issued Shares for which incentive stock
option treatment is desired within the one (l)-year period after the day of the
issuance of such Issued Shares to him or her (i.e., the exercise date), nor
within the two (2)-year period after the grant of this Option and further, that
this Option must be exercised, if and to the extent permitted hereunder, within
three (3) months after termination of employment (or twelve (12) months in the
case of death or disability to qualify as an incentive stock option. If the
Grantee disposes (whether by sale, gift, transfer or otherwise) of any such
Issued Shares within either of these periods, he or she agrees to notify the
Company within thirty (30) days after such disposition. The Grantee also agrees
to provide the Company with any information concerning any such dispositions
required by the Company for tax purposes. Further, to the extent that the
aggregate Fair Market Value (determined as of the time that the applicable
option is granted) of the shares of Common Stock with respect to which all
Incentive Stock Options held by the Grantee are exercisable for the first time
during any calendar year (under all option plans of the Company, its Parent
and/or its Subsidiaries) exceeds $100,000, such Incentive Stock Options shall
constitute Nonqualified Stock Options. For purposes of this Section l(e),
Incentive Stock Options shall be taken into account in the order in which they
were granted. If pursuant to the above, an Incentive Stock Option is treated as
an Incentive Stock

                                       -2-

<PAGE>

Option in part and a Nonqualified Stock Option in part, the Grantee may
designate which portion of the Stock Option the Grantee is exercising. In the
absence of such designation, the Grantee shall be deemed to have exercised the
Incentive Stock Option portion of the Option first.

     2. Exercise of Option.

          (a) The Grantee may exercise this Option only by delivering an Option
exercise notice (an "Exercise Notice") in substantially the form of Appendix A
attached hereto to the Company's Chief Financial Officer or, if none, the Chief
Executive Officer, indicating his or her election to purchase some or all of the
Option Shares with respect to which this Option has vested at the time of
delivery of such Exercise Notice (which amount shall be specified in the
Exercise Notice), accompanied by payment in full of the aggregate Exercise
Price; provided that such exercise shall be effective only upon receipt by such
officer of the Exercise Notice and the aggregate Exercise Price. Payment of the
aggregate Exercise Price for the Option Shares elected to be purchased by the
Grantee may be made by one or more of the following methods:

               (i) in cash, by certified or bank check, or other instrument
acceptable to the Committee in U.S. funds payable to the order of the Company in
an amount equal to the aggregate Exercise Price of such Option Shares;

               (ii) after the closing of the Company's Initial Public Offering,
if permitted by the Committee at the discretion of the Committee at the time of
exercise, (x) through the delivery (or attestation to ownership) of shares of
Common Stock having a Fair Market Value equal to the aggregate Exercise Price of
such Option Shares that have been purchased by the Grantee on the open market or
that have been held by the Grantee for at least six (6) months and are not
subject to restrictions under any plan of the Company, or (y) by the Grantee
delivering to the Company a properly executed Exercise Notice together with
irrevocable instructions to a broker to promptly deliver to the Company cash or
a check payable and acceptable to the Company to pay the Exercise Price of such
Option Shares; provided that, in the event the Grantee chooses such payment
procedure, the Grantee and the broker shall comply with such procedures and
enter into such agreements of indemnity and other agreements as the Committee
shall prescribe as a condition of such payment procedure; or

               (iii) a combination of the payment methods set forth in clauses
(i) and (ii) above.

          (b) Certificates for the Option Shares so purchased will be issued and
delivered to the Grantee upon compliance to the satisfaction of the Committee
with all requirements under applicable laws or regulations in connection with
such issuance. Until the Grantee shall have complied with the requirements
hereof and of the Plan, including the withholding requirements set forth in
Section 6 hereof, the Company shall be under no obligation to issue the Option
Shares subject to this Option, and the determination of the Committee as to such
compliance shall be final and binding on the Grantee. The Grantee shall not be
deemed to be the holder of, or to have any of the rights of a holder with
respect to, any Issued Shares unless and until this Option shall have been
exercised pursuant to the terms hereof, the Company shall have issued

                                       -3-

<PAGE>

and delivered such Issued Shares to the Grantee, and the Grantee's name shall
have been entered as a stockholder of record on the books of the Company.
Thereupon, the Grantee shall have full dividend and other ownership rights with
respect to such Issued Shares, subject to the terms of this Option Agreement.

          (c) The Company shall not be required to issue fractional shares upon
the exercise of this Option.

          (d) Notwithstanding any other provision hereof or of the Plan, no
portion of this Option shall be exercisable after the earlier of the Expiration
Date or the termination of this Option as contemplated by Section l(d) and
Section 5 hereof.

     3. Subject to Plan.

          This Option is subject to all of the terms and conditions set forth in
the Plan. Notwithstanding anything in this Option Agreement or the Notice to the
contrary, to the extent of any conflict between the terms of the Plan, this
Option Agreement, and the Notice, the terms of the Plan shall control.

     4. Transferability.

          This Option is personal to the Grantee and is not transferable by the
Grantee in any manner other than by will or by the laws of descent and
distribution; provided that if this Option is designated as a Nonqualified Stock
Option, such Option may be transferred by the Grantee to any Permitted
Transferee; provided that, the Permitted Transferee agrees in writing with the
Company to be bound by all of the terms and conditions of the Plan and this
Option Agreement. This Option may be exercised during the Grantee's lifetime
only by the Grantee (or by the Grantee's legal representative or guardian in the
event of the Grantee's incapacity) or by a Permitted Transferee pursuant to this
Section 4. The Grantee may elect to designate a beneficiary by providing written
notice of the name of such beneficiary to the Company, and may revoke or change
such designation at any time by filing written notice of revocation or change
with the Company; such beneficiary may exercise the Grantee's Option in the
event of the Grantee's death to the extent provided herein. If the Grantee does
not designate a beneficiary, or if the designated beneficiary predeceases the
Grantee, the executor of the Grantee may exercise this Option to the extent
permitted herein in the event of the Grantee's death.

     5. Effect of Certain Acquisitions.

          (a) Acquisitions. Upon the effectiveness of an Acquisition:

               (i) twenty five percent (25%) of the total number of Option
Shares which are not vested and exercisable as of the date of the Acquisition
shall immediately become vested and exercisable;

               (ii) to the extent not assumed by the acquiring entity or
replaced by

                                       -4-
<PAGE>

comparable options to purchase shares of the capital stock of the successor or
acquiring entity or parent thereof (the determination of comparability to be
made by the Committee, which determination shall be final, binding, and
conclusive) (an "Assumption") all remaining Option Shares shall, subject to and
conditioned upon the effectiveness of the Acquisition, become vested and
exercisable in full ten (10) days prior to the anticipated effective date of the
Acquisition as determined by the Committee; and

               (iii) unless there is an Assumption, this Option shall terminate
upon the effectiveness of the Acquisition.

          (b) Exercise in Connection with a Termination. In the event that the
Option is terminated pursuant to Section 5(b)(iii) above, the Grantee shall be
permitted to exercise, for a period of at least ten (10) days prior to the
anticipated effective date of such Acquisition, this Option to the extent that
it is then vested and exercisable (after giving effect to the acceleration of
vesting provided for in connection with the Acquisition); provided that, the
exercise of the portion of the Option that becomes vested and exercisable in
connection with the Acquisition shall be subject to and conditioned upon the
effectiveness of the Acquisition.

          (c) Vesting following an Assumption. Following the effectiveness of an
Assumption, the unvested portion of this Option, if any, shall continue to vest
in accordance with the vesting schedule set forth in the Notice, in the same
proportion and on the same dates as the shares of Common Stock would have vested
had there been no acceleration of vesting (i.e. if twenty five percent (25%) of
the original shares of Common Stock subject to this Option would have vested on
a specified date, then twenty five percent (25%) of the original shares of
Common Stock subject to this Option, less the number of shares of Common Stock
that would have vested on that date but which accelerated in connection with the
Acquisition, shall vest on such specified date) and all such Awards shall
otherwise be adjusted as provided in Section 1 l(a) of the Plan.

     6. Withholding Taxes.

          (a) Payment by Grantee. The Grantee shall, no later than the date as
of which the exercise of this Option (or, if applicable, the issuance, in whole
or in part, of any Issued Shares upon the exercise of this Option, the operation
of any law or regulation providing for the imputation of interest related to
this Option, or the lapsing of any restriction with respect to any Issued Shares
acquired upon exercise of this Option) gives rise to taxable income and subjects
the Company to a tax withholding obligation, authorize the Company to withhold
from payroll and any other amounts payable to the Grantee or pay to the Company
or make arrangements satisfactory to the Committee for payment of any federal,
state, foreign and local taxes required by law to be withheld with respect to
such income.

          (b) Payment in Common Stock. Subject to approval by the Committee, the
Grantee may elect to have the minimum tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Common Stock to be issued a number

                                       -5-

<PAGE>

of shares of Common Stock with an aggregate Fair Market Value (as of the date
the withholding is effected) that would satisfy the withholding amount due, or
(ii) transferring to the Company shares of Common Stock owned by the Grantee
with an aggregate Fair Market Value (as of the date the withholding is effected)
that would satisfy the withholding amount due. The Fair Market Value of any
shares of Common Stock withheld to satisfy any such tax withholding obligation
shall not exceed the amount determined by the applicable minimum statutory
withholding rates.

     7. Company's Right of First Refusal.

          (a) Exercise of Right. If the Grantee or any Permitted Transferee
desires to sell, exchange, transfer, pledge or otherwise dispose of all or any
part of the Issued Shares to any person or entity other than to the Company or a
Permitted Transferee (an "Offeror"), the Grantee or Permitted Transferee shall:
(i) obtain in writing an irrevocable and unconditional bona fide offer (the
"Offer") for the purchase thereof from the Offerer; and (ii) give written notice
(the "Offer Notice") to the Company setting forth the Grantee's or Permitted
Transferee's desire to transfer such shares, which Offer Notice shall be
accompanied by a photocopy of the Offer and shall set forth the name and address
of the Offeror and the price and terms of the Offer. In the event that the Offer
constitutes a bona fide gift or involuntary transfer, the proposed transfer
price shall be deemed to be the Fair Market Value of such shares as determined
by the Committee in good faith. Upon receipt of the Offer Notice, the Company
shall have an assignable option to purchase any or all of such Issued Shares
(the "Offered Shares") specified in the Offer Notice, such option to be
exercisable by giving, within thirty (30) days after receipt of the Offer
Notice, a written counter notice to the Grantee or Permitted Transferee. If the
Company or its assigns elects to purchase any or all of such Offered Shares, it
shall be obligated to purchase, and the Grantee or Permitted Transferee shall be
obligated to sell to the Company or its assigns, such Offered Shares at the
price and terms indicated in the Offer within thirty (30) days from the date of
delivery by the Company of such counter notice (unless a longer period is
permitted by the Grantee or Permitted Transferee and the Offeror); provided,
however, that in the event that the Offer Notice provides for the payment for
the Offered Shares other than in cash, the Company shall have the option of
paying for the Offered Shares by the present value cash equivalent of the
consideration described in the Offer Notice as reasonably determined by the
Company. For purposes of the foregoing, cancellation of any indebtedness of the
Grantee or Permitted Transferee to the Company (or its Parent or any Subsidiary)
shall be treated as payment to the Grantee or Permitted Transferee in cash to
the extent the unpaid principal balance and any accrued interest is canceled.
The Company's exercise or failure to exercise its right of first refusal
pursuant to this Section 7(a) with respect to any proposed transfer described in
an Offer Notice shall not affect the Company's right to exercise its right of
first refusal with respect to any other proposed transfer thereafter.

          (b) Sale of Offered Shares to Offeror. The Grantee or Permitted
Transferee may, for sixty (60) days after the expiration of such thirty (30)-day
option period (or, if applicable, such longer period) as set forth in Section
7(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of
such Offered Shares not purchased or agreed to be purchased by the

                                       -6-

<PAGE>

Company or its assigns. All Offerors shall be required as a condition of
purchasing such Offered Shares to agree in writing (in a form satisfactory to
the Company) that the Offeror shall purchase and hold such Offered Shares
subject to the Company's right of first refusal pursuant to this Section 7 with
respect to any subsequent proposed transfer. Further, the Company shall have the
right to demand further assurances from the Grantee or Permitted Transferee and
the Offeror that the transfer of the Offered Shares was actually carried out in
accordance with the terms and conditions of the Offer Notice. No transfer of the
Offered Shares shall be effected on the books of the Company until the Company
has received such assurances, if so demanded. Any proposed transfer on terms and
conditions different from those described above in an Offer Notice shall be null
and void. If any or all of such Offered Shares are not sold pursuant to the
Offer Notice within the time permitted above, the unsold Offered Shares shall
remain subject to the terms of this Section 7.

          (c) Failure to Deliver Option Shares. If the Grantee or Permitted
Transferee fails or refuses to deliver on a timely basis duly endorsed
certificates representing the Offered Shares to be sold to the Company or its
assigns pursuant to this Section 7, the Company shall have the right to deposit
the purchase price for such Offered Shares in a special account with any bank or
trust company, giving notice of such deposit to the Grantee or Permitted
Transferee, whereupon such Offered Shares shall be deemed to have been purchased
by the Company. All such monies shall be held by the bank or trust company for
the benefit of the Grantee or Permitted Transferee. All monies deposited with
the bank or trust company but remaining unclaimed for two (2) years after the
date of deposit shall be repaid by the bank or trust company to the Company on
demand, and the Grantee or Permitted Transferee shall thereafter look only to
the Company for payment. The Company may place a legend on any certificate for
Issued Shares delivered to the Grantee and Permitted Transferees reflecting the
restrictions on transfer provided in this Section 7.

          (d) Expiration of Company's Right of First Refusal. The first refusal
rights of the Company set forth above shall remain in effect until the closing
of an Initial Public Offering or upon the consummation of any Acquisition as a
result of which shares of Common Stock are registered under Section 12 of the
Exchange Act and publicly traded on NASDAQ/NMS or any national security
exchange.

     8. Compliance with Legal Requirements.

          This Option may not be exercised if the issuance of shares of Common
Stock upon exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements
of any stock exchange or market system upon which the Common Stock may then be
listed. In addition, this Option may not be exercised unless: (a) a registration
statement under the Act shall at the time of exercise of this Option be in
effect with respect to the shares issuable upon exercise, or (b) in the opinion
of legal counsel to the Company, the shares issuable upon exercise of this
Option may be issued in accordance with the terms of an applicable exemption
from the registration requirements of the Act. The inability of the Company to
obtain from any regulatory body having jurisdiction the

                                       -7-

<PAGE>

authority, if any, deemed by the Company's legal counsel to be necessary to the
lawful issuance and sale of any shares hereunder shall relieve the Company of
any liability in respect of the failure to issue or sell such shares as to which
such requisite authority shall not have been obtained. As a condition to the
exercise of this Option, the Company may require the Grantee to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance with
any applicable law or regulation and to make any representation or warranty with
respect thereto as may be requested by the Company.

     9. Lock-up Provision.

          The Grantee agrees, if requested by the Company and any underwriter
engaged by the Company, not to sell, offer to sell, contract to sell, pledge,
hypothecate, grant any option to purchase or make any short sale of, or
otherwise dispose of any securities (including the right to acquire any Common
Stock) of the Company (including, without limitation, pursuant to Rule 144 under
the Act) held by him or her for such period following the effective date of any
registration statement of the Company filed under the Act as the Company or such
underwriter shall specify reasonably and in good faith, not to exceed one
hundred eighty (180) days in the case of the Company's Initial Public Offering
or ninety (90) days in the case of any other public offering.

     10. Miscellaneous Provisions.

          (a) Administration. All questions of interpretation concerning this
Option Agreement shall be determined by the Committee. All determinations by the
Committee shall be final and binding upon all persons having an interest in this
Option.

          (b) Employment Rights. The grant of this Option does not confer upon
the Grantee any right to continued employment or service with the Company or its
Parent or any Subsidiary or interfere in any way with the right of the Company
or its Parent or any Subsidiary to terminate the Grantee's employment or service
at any time.

          (c) Equitable Relief. The parties hereto agree and declare that legal
remedies may be inadequate to enforce the provisions of this Option Agreement
and that equitable relief, including specific performance and injunctive relief,
may be used to enforce the provisions of this Option Agreement.

          (d) Change and Modifications. The Committee may terminate or amend the
Plan or this Option at any time; provided that, except as provided in Section
11(b) of the Plan in connection with an Acquisition, no such termination or
amendment may adversely affect this Option without the consent of the Grantee
unless such termination or amendment is necessary to comply with any applicable
law, rule or regulation or, to the extent that this Option is designated as an
Incentive Stock Option, is required to enable this Option to continue to qualify
as an Incentive Stock Option.

                                       -8-

<PAGE>

          (e) Governing Law. This Option Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
conflict of laws principles thereof.

          (f) Headings. The headings are intended only for convenience in
finding the subject matter and do not constitute part of the text of this Option
Agreement and shall not be considered in the interpretation of this Option
Agreement.

          (g) Integrated Agreement. This Option Agreement, the Notice and the
Plan constitute the entire understanding and agreement between the Grantee and
the Company with respect to the subject matter contained herein and supersedes
any prior agreements, understandings, restrictions, representations, or
warranties among the Grantee and the Company with respect to such subject matter
except as provided for herein. To the extent contemplated herein, the provisions
of this Option Agreement shall survive any exercise of this Option and shall
remain in full force and effect.

          (h) Saving Clause. If any provision(s) of this Option Agreement shall
be determined to be illegal or unenforceable, such determination shall in no
manner affect the legality or enforceability of any other provision hereof.

          (i) Notices. All notices, requests, consents and other communications
shall be in writing and be deemed given when delivered personally, by telex or
facsimile transmission, or two (2) days after deposit in the mail if mailed by
first class registered or certified mail, postage prepaid, or one (1) business
day after deposit with a nationally recognized overnight carrier. Notices to the
Company or the Grantee shall be addressed to such address or addresses as may
have been furnished by such party in writing to the other.

          (j) Benefit and Binding Effect. This Option Agreement shall be binding
upon and shall inure to the benefit of the parties hereto, their respective
successors, permitted assigns, and legal representatives. The Company has the
right to assign this Option Agreement, and such assignee shall become entitled
to all the rights of the Company hereunder to the extent of such assignment.

                                       -9-

<PAGE>

                                   APPENDIX A
                          STOCK OPTION EXERCISE NOTICE

Virtusa Corporation
200 West Park Drive
Westborough, MA 01581
Attention: Chief Financial Officer                      Date: __________________

                                      Stock Option Grant No.: __________________

     Pursuant to the terms of the Notice of Grant of Stock Option dated _______,
and the Stock Option Agreement granted pursuant to the Virtusa Corporation 2000
Stock Option Plan and entered into by Virtusa Corporation (the "Company") and
_____________________________________ on such date, I hereby exercise such
Option for _________________ shares of common stock, all of which have vested in
accordance with the Notice of Grant of Stock Option, by including herein payment
in the amount of $_____________ representing the purchase price for such shares.
I hereby authorize payroll withholding or otherwise will make adequate provision
for federal, state, foreign and local tax withholding obligations of the
Company, if any, that arise in connection with the Option.

     I acknowledge that the shares are being acquired in accordance with and
subject to the terms, provisions and conditions of the Plan, the Notice of Grant
of Stock Option, and the Option Agreement, copies of which I have received and
carefully read and understand, including the Company's right of first refusal
set forth therein, to all of which I hereby expressly assent. I acknowledge
receipt of, and access to, the Company's Confidential Private Placement
Memorandum (the "Memorandum") which Memorandum contains certain disclosures
regarding the Company. I represent that I have read and am familiar with its
provisions. By my signature below, I acknowledge and confirm that I have been
provided access to, and the opportunity to review, the Memorandum, that I have
reviewed the Memorandum and have had an opportunity to ask questions and receive
answers regarding the Options, the Memorandum and the business, prospects and
financial condition of the Company and such other information that I believe is
necessary to evaluate the merits and risks of the Option and any investment in
the common stock of the Company.

     I hereby represent that I am purchasing the shares of common stock for my
own account and not with a view to any sale or distribution thereof. I
understand that Rule 144, promulgated under the Securities Act of 1933, as
amended, which permits limited public resale of securities acquired in a
nonpublic offering, is not currently available with respect to such shares and,
in any event, is available only if certain conditions are satisfied. I
acknowledge that any sale of such shares that might be made in reliance on Rule
144 may only be made in limited amounts in accordance with the terms and
conditions of such rule and that a copy of Rule 144 will be delivered to me upon
my request. Finally, I agree that, if the Option is designated as an "incentive
stock option" in the Notice of Grant of Stock Option, that I will promptly
notify the Chief Financial Officer of the Company if I transfer any of the
shares acquired pursuant to the option within one (1) year from the date of
exercise of all or part of the Option or within two (2) years of the date of
grant of the Option.

Print Name:                            Signature:
            ------------------------              ------------------------------
Address:
         -----------------------------------------------------------------------

--------------------------------------------------------------------------------
Email:                                 Phone:
       -----------------------------          ----------------------------------

<PAGE>

NEITHER THE SECURITY REPRESENTED BY THIS OPTION AGREEMENT NOR THE SECURITIES FOR
WHICH SUCH OPTION IS EXERCISABLE HAVE BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR APPLICABLE
STATE SECURITIES LAWS. ACCORDINGLY, NEITHER SUCH OPTION NOR THE SECURITIES FOR
WHICH THE OPTION IS EXERCISABLE MAY BE OFFERED OR SOLD, ASSIGNED OR TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR ANY SUCH SECURITY UNDER THE U.S.
SECURITIES ACT, OR APPLICABLE STATE SECURITIES LAWS, UNLESS THE COMPANY HAS
RECEIVED THE WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
SALE, ASSIGNMENT OR TRANSFER DOES NOT INVOLVE A TRANSACTION REQUIRING
REGISTRATION OF SUCH SECURITY UNDER THE U.S. SECURITIES ACT, OR APPLICABLE STATE
SECURITIES LAWS. WITHOUT LIMITATION ON THE FOREGOING, NEITHER SUCH OPTION NOR
THE SECURITIES FOR WHICH SUCH OPTION IS EXERCISABLE MAY BE OFFERED, SOLD OR
DELIVERED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (INCLUDING ITS
TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES, AND THE DISTRICT OF
COLUMBIA) OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, "U.S. PERSONS" (AS SUCH TERM
IS DEFINED IN REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT), EXCEPT IN
TRANSACTIONS WHICH ARE IN COMPLIANCE WITH THE PROVISIONS OF REGULATION S (RULE
901 THROUGH RULE 905, AND PRELIMINARY NOTES), PURSUANT TO REGISTRATION UNDER THE
U.S. SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. IN
ADDITION, HEDGING TRANSACTIONS INVOLVING EITHER THE OPTION OR THE SECURITIES FOR
WHICH THE OPTION IS EXERCISABLE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH
THE U.S. SECURITIES ACT.

                         FORM--NON-U.S. EMPLOYEE VERSION

                             STOCK OPTION AGREEMENT
                                    UNDER THE
                   VIRTUSA CORPORATION 2000 STOCK OPTION PLAN

     Pursuant to the Virtusa Corporation 2000 Stock Option Plan (the "Plan"),
Virtusa Corporation, a Delaware corporation (together with its successors, the
"Company"), hereby grants to the person (the "Grantee") named in the Notice of
Grant of Stock Option attached hereto (the "Notice'") to which this Stock Option
Agreement (the "Option Agreement") is attached, an option (together with the
Notice, referred to herein as the "Option") to purchase on or prior to the
expiration date specified in the Notice (the "Expiration Date"), or such earlier
date as is specified herein, all or any part of the number of shares of Common
Stock of the Company indicated in the Notice (the "Option Shares" and such
shares once issued shall be referred to as the "Issued Shares"), at the exercise
price per share specified in the Notice (the "Exercise Price") and subject to
the terms and conditions set forth in this Option Agreement, the Notice and the
Plan, including the adjustment provision thereof. All capitalized terms used
herein and not otherwise defined shall have the respective meanings set forth in
the Notice and the Plan (as applicable).

     If this Option is designated as an Incentive Stock Option in the Notice,
this Option is intended to qualify as an "incentive stock option" as defined in
Section 422(b) of the Code. To the extent that any portion of this Option does
not so qualify as an Incentive Stock Option or, if this Option is designated as
a Nonqualified Stock Option in the Notice, it shall be deemed a Nonqualified
Stock Option. The Grantee should consult with the Grantee's own tax advisor
regarding the tax effects of this Option (and any requirements necessary to
obtain favorable

<PAGE>

income tax treatment under Section 422 of the Code, including, but not limited
to, holding period requirements).

     1. Vesting and Exercisability.

          (a) No portion of this Option may be exercised until such portion
shall have vested.

          (b) Except as set forth below and in Section 5 hereof, this Option
shall be exercisable on and after the Initial Vesting Date and prior to the
termination of the Option as provided herein, in an amount not to exceed the
number of Vested Shares (as determined in the Notice) less the number of shares
previously acquired upon exercise of this Option. In no event shall this Option
be exercisable for more than the Number of Option Shares (as designated in the
Notice).

          (c) In the event that the Grantee's Service Relationship terminates,
this Option may thereafter be exercised, to the extent it was vested and
exercisable on the date of such termination, until the date specified in Section
1(d) hereof. Any portion of this Option that is not exercisable on the date of
termination of the Service Relationship shall immediately expire and be null and
void.

          (d) Subject to the provisions of Section 5 hereof, once any portion of
this Option becomes vested and exercisable, it shall continue to be exercisable
by the Grantee or his or her representatives and legatees as contemplated herein
at any time or times prior to the earliest of (i) the date which is (A) twelve
(12) months following the date on which the Grantee's Service Relationship
terminates due to death or disability, or (B) three (3) months following the
date on which the Grantee's Service Relationship terminates if the termination
is due to any other reason, or (ii) the Expiration Date set forth in the Notice;
provided that notwithstanding the foregoing, if the Grantee's Service
Relationship is terminated for "Cause", this Option shall terminate immediately
and be null and void upon the date of the Grantee's termination and shall not
thereafter be exercisable. For purposes hereof, "Cause" means: (i) any material
breach by the Grantee of any agreement to which the Grantee and the Company are
parties, including breach of covenants not to compete and covenants relating to
the protection of confidential information and proprietary rights of the
Company, which breach is not cured pursuant to the terms of such agreements,
(ii) any act (other than retirement) or omission to act by the Grantee which
would reasonably be likely to have a material adverse effect on the business of
the Company, as the case may be, or on the Grantee's ability to perform services
for the Company, as the case may be, (iii) the Grantee's conviction (including
any pleas of guilty or nolo contendre) of any crime (other than ordinary traffic
violations) which impairs the Grantee's ability to perform his or her duties,
(iv) any material misconduct or willful and deliberate non-performance of duties
by the Grantee in connection with the business or affairs of the Company, as the
case may be, (v) the Grantee's theft, dishonesty or falsification of the
Company's documents or records, or (vi) the Grantee's improper use or disclosure
of the Company's confidential or proprietary information.

                                       -2-

<PAGE>

For purposes of the definition of "Cause" set forth herein, all references to
the Company shall be deemed to include the Company's Parent or any Subsidiary.

          (e) If designated as an Incentive Stock Option in the Notice, the
Grantee understands that in order to obtain the benefits of an incentive stock
option under Section 422 of the Code, subject to any amendments thereof, no sale
or other disposition may be made of Issued Shares for which incentive stock
option treatment is desired within the one (l)-year period after the day of the
issuance of such Issued Shares to him or her (i.e., the exercise date), nor
within the two (2)-year period after the grant of this Option and further, that
this Option must be exercised, if and to the extent permitted hereunder, within
three (3) months after termination of employment (or twelve (12) months in the
case of death or disability to qualify as an incentive stock option. If the
Grantee disposes (whether by sale, gift, transfer or otherwise) of any such
Issued Shares within either of these periods, he or she agrees to notify the
Company within thirty (30) days after such disposition. The Grantee also agrees
to provide the Company with any information concerning any such dispositions
required by the Company for tax purposes. Further, to the extent that the
aggregate Fair Market Value (determined as of the time that the applicable
option is granted) of the shares of Common Stock with respect to which all
Incentive Stock Options held by the Grantee are exercisable for the first time
during any calendar year (under all option plans of the Company, its Parent
and/or its Subsidiaries) exceeds $100,000, such Incentive Stock Options shall
constitute Nonqualified Stock Options. For purposes of this Section l(e),
Incentive Stock Options shall be taken into account in the order in which they
were granted. If pursuant to the above, an Incentive Stock Option is treated as
an Incentive Stock Option in part and a Nonqualified Stock Option in part, the
Grantee may designate which portion of the Stock Option the Grantee is
exercising. In the absence of such designation, the Grantee shall be deemed to
have exercised the Incentive Stock Option portion of the Option first.

     2. Exercise of Option.

          (a) The Grantee may exercise this Option only by delivering an Option
exercise notice (an "Exercise Notice") in substantially the form of Appendix A
attached hereto to the Company's Chief Financial Officer or, if none, the Chief
Executive Officer, indicating his or her election to purchase some or all of the
Option Shares with respect to which this Option has vested at the time of
delivery of such Exercise Notice (which amount shall be specified in the
Exercise Notice), accompanied by payment in full of the aggregate Exercise
Price; provided that such exercise shall be effective only upon receipt by such
officer of the Exercise Notice and the aggregate Exercise Price. Payment of the
aggregate Exercise Price for the Option Shares elected to be purchased by the
Grantee may be made by one or more of the following methods:

               (i) in cash, by certified or bank check, or other instrument
acceptable to the Committee in U.S. funds payable to the order of the Company in
an amount equal to the aggregate Exercise Price of such Option Shares;

               (ii) after the closing of the Company's Initial Public Offering,
if permitted by the Committee at the discretion of the Committee at the time of
exercise, (x)

                                       -3-
<PAGE>

through the delivery (or attestation to ownership) of shares of Common Stock
having a Fair Market Value equal to the aggregate Exercise Price of such Option
Shares that have been purchased by the Grantee on the open market or that have
been held by the Grantee for at least six (6) months and are not subject to
restrictions under any plan of the Company, or (y) by the Grantee delivering to
the Company a properly executed Exercise Notice together with irrevocable
instructions to a broker to promptly deliver to the Company cash or a check
payable and acceptable to the Company to pay the Exercise Price of such Option
Shares; provided that, in the event the Grantee chooses such payment procedure,
the Grantee and the broker shall comply with such procedures and enter into such
agreements of indemnity and other agreements as the Committee shall prescribe as
a condition of such payment procedure; or

               (iii) a combination of the payment methods set forth in clauses
(i) and (ii) above.

          (b) Certificates for the Option Shares so purchased will be issued and
delivered to the Grantee upon compliance to the satisfaction of the Committee
with all requirements under applicable laws or regulations in connection with
such issuance. Until the Grantee shall have complied with the requirements
hereof and of the Plan, including the withholding requirements set forth in
Section 6 hereof, the Company shall be under no obligation to issue the Option
Shares subject to this Option, and the determination of the Committee as to such
compliance shall be final and binding on the Grantee. The Grantee shall not be
deemed to be the holder of, or to have any of the rights of a holder with
respect to, any Issued Shares unless and until this Option shall have been
exercised pursuant to the terms hereof, the Company shall have issued and
delivered such Issued Shares to the Grantee, and the Grantee's name shall have
been entered as a stockholder of record on the books of the Company. Thereupon,
the Grantee shall have full dividend and other ownership rights with respect to
such Issued Shares, subject to the terms of this Option Agreement.

          (c) The Company shall not be required to issue fractional shares upon
the exercise of this Option.

          (d) Notwithstanding any other provision hereof or of the Plan, no
portion of this Option shall be exercisable after the earlier of the Expiration
Date or the termination of this Option as contemplated by Section l(d) and
Section 5 hereof.

          (e) Unless the issuance of shares have been registered under the U.S.
Securities Act of 1933, certificates evidencing Issued Shares shall bear the
following legend:

          THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES
          ACT") OR APPLICABLE STATE SECURITIES LAWS. ACCORDINGLY, THIS SECURITY
          MAY NOT BE OFFERED OR SOLD, ASSIGNED OR TRANSFERRED WITHOUT AN
          EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITY UNDER

                                       -4-

<PAGE>

          THE U.S. SECURITIES ACT, OR APPLICABLE STATE SECURITIES LAWS, UNLESS
          THE COMPANY HAS RECEIVED THE WRITTEN OPINION OF COUNSEL SATISFACTORY
          TO THE COMPANY THAT SUCH SALE, ASSIGNMENT OR TRANSFER DOES NOT INVOLVE
          A TRANSACTION REQUIRING REGISTRATION OF SUCH SECURITY UNDER THE U.S.
          SECURITIES ACT, OR APPLICABLE STATE SECURITIES LAWS. WITHOUT
          LIMITATION ON THE FOREGOING, NEITHER THIS SECURITY MAY NOT BE OFFERED,
          SOLD OR DELIVERED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES
          (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED
          STATES, AND THE DISTRICT OF COLUMBIA) OR TO, OR FOR THE ACCOUNT OR
          BENEFIT OF, "U.S. PERSONS" (AS SUCH TERM IS DEFINED IN REGULATION S
          PROMULGATED UNDER THE U.S. SECURITIES ACT), EXCEPT IN TRANSACTIONS
          WHICH ARE IN COMPLIANCE WITH THE PROVISIONS OF REGULATION S (RULE 901
          THROUGH RULE 905, AND PRELIMINARY NOTES), PURSUANT TO REGISTRATION
          UNDER THE U.S. SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
          FROM REGISTRATION. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THIS
          SECURITY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S.
          SECURITIES ACT.

          (f) Grantee certifies and agrees as follows:

               (i) Grantee is not a resident in the United States of America,
including its territories and possessions, any State in the United States or the
District of Columbia,

               (ii) Grantee has not acquired this Option, and shall not acquire
any Issued Shares for the account or benefit of any "U.S. Person" (as such term
is defined in Regulation S),

               (iii) Grantee shall resell Issued Shares only in accordance with
the provisions of Regulation S (Rule 901 through Rule 905, and Preliminary
Notes), pursuant to registration under the U.S. Securities Act, or pursuant to
an available exemption from registration,

               (iv) Grantee shall not engage in hedging transactions with regard
to this Option or Issued Shares unless in compliance with the U.S. Securities
Act, and

               (v) The Company shall refuse to register any transfer of the
Option or Issued Shares not made in accordance with the provisions of Regulation
S (Rule 901 through Rule 905, and Preliminary Notes), pursuant to registration
under the U.S. Securities Act, or pursuant to an available exemption from
registration.

                                       -5-

<PAGE>

     5. Unless the issuance of shares have been registered under the U.S.
Securities Act, the Company shall implement administrative procedures designed
to ensure, that the Option may not be exercised in, nor the Shares delivered
upon exercise within, the United States of America, including its territories
and possessions, any State in the United States or the District of Columbia.

     3. Subject to Plan.

          This Option is subject to all of the terms and conditions set forth in
the Plan. Notwithstanding anything in this Option Agreement or the Notice to the
contrary, to the extent of any conflict between the terms of the Plan, this
Option Agreement, and the Notice, the terms of the Plan shall control.

     4. Transferability.

          This Option is personal to the Grantee and is not transferable by the
Grantee in any manner other than by will or by the laws of descent and
distribution; provided that if this Option is designated as a Nonqualified Stock
Option, such Option may be transferred by the Grantee to any Permitted
Transferee; provided that, the Permitted Transferee agrees in writing with the
Company to be bound by all of the terms and conditions of the Plan and this
Option Agreement. This Option may be exercised during the Grantee's lifetime
only by the Grantee (or by the Grantee's legal representative or guardian in the
event of the Grantee's incapacity) or by a Permitted Transferee pursuant to this
Section 4. The Grantee may elect to designate a beneficiary by providing written
notice of the name of such beneficiary to the Company, and may revoke or change
such designation at any time by filing written notice of revocation or change
with the Company; such beneficiary may exercise the Grantee's Option in the
event of the Grantee's death to the extent provided herein. If the Grantee does
not designate a beneficiary, or if the designated beneficiary predeceases the
Grantee, the executor of the Grantee may exercise this Option to the extent
permitted herein in the event of the Grantee's death.

     5. Effect of Certain Acquisitions.

          (a) Acquisitions. Upon the effectiveness of an Acquisition:

               (i) twenty five percent (25%) of the total number of Option
Shares which are not vested and exercisable as of the date of the Acquisition
shall immediately become vested and exercisable;

               (ii) to the extent not assumed by the acquiring entity or
replaced by comparable options to purchase shares of the capital stock of the
successor or acquiring entity or parent thereof (the determination of
comparability to be made by the Committee, which determination shall be final,
binding, and

                                       -6-

<PAGE>

conclusive) (an "Assumption") all remaining Option Shares shall, subject to and
conditioned upon the effectiveness of the Acquisition, become vested and
exercisable in full ten (10) days prior to the anticipated effective date of the
Acquisition as determined by the Committee; and

               (iii) unless there is an Assumption, this Option shall terminate
upon the effectiveness of the Acquisition.

          (b) Exercise in Connection with a Termination. In the event that the
Option is terminated pursuant to Section 5(b)(iii) above, the Grantee shall be
permitted to exercise, for a period of at least ten (10) days prior to the
anticipated effective date of such Acquisition, this Option to the extent that
it is then vested and exercisable (after giving effect to the acceleration of
vesting provided for in connection with the Acquisition); provided that, the
exercise of the portion of the Option that becomes vested and exercisable in
connection with the Acquisition shall be subject to and conditioned upon the
effectiveness of the Acquisition.

          (c) Vesting following an Assumption. Following the effectiveness of an
Assumption, the unvested portion of this Option, if any, shall continue to vest
in accordance with the vesting schedule set forth in the Notice, in the same
proportion and on the same dates as the shares of Common Stock would have vested
had there been no acceleration of vesting (i.e. if twenty five percent (25%) of
the original shares of Common Stock subject to this Option would have vested on
a specified date, then twenty five percent (25%) of the original shares of
Common Stock subject to this Option, less the number of shares of Common Stock
that would have vested on that date but which accelerated in connection with the
Acquisition, shall vest on such specified date) and all such Awards shall
otherwise be adjusted as provided in Section 11(a) of the Plan.

     6. Withholding Taxes.

          (a) Payment by Grantee. The Grantee shall, no later than the date as
of which the exercise of this Option (or, if applicable, the issuance, in whole
or in part, of any Issued Shares upon the exercise of this Option, the operation
of any law or regulation providing for the imputation of interest related to
this Option, or the lapsing of any restriction with respect to any Issued Shares
acquired upon exercise of this Option) gives rise to taxable income and subjects
the Company to a tax withholding obligation, authorize the Company to withhold
from payroll and any other amounts payable to the Grantee or pay to the Company
or make arrangements satisfactory to the Committee for payment of any federal,
state, foreign and local taxes required by law to be withheld with respect to
such income.

          (b) Payment in Common Stock. Subject to approval by the Committee, the
Grantee may elect to have the minimum tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Common Stock to be issued a number of shares of Common Stock with an aggregate
Fair Market Value (as of the date the withholding

                                       -7-

<PAGE>

is effected) that would satisfy the withholding amount due, or (ii) transferring
to the Company shares of Common Stock owned by the Grantee with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the withholding amount due. The Fair Market Value of any shares of
Common Stock withheld to satisfy any such tax withholding obligation shall not
exceed the amount determined by the applicable minimum statutory withholding
rates.

     7. Company's Right of First Refusal.

          (a) Exercise of Right. If the Grantee or any Permitted Transferee
desires to sell, exchange, transfer, pledge or otherwise dispose of all or any
part of the Issued Shares to any person or entity other than to the Company or a
Permitted Transferee (an "Offeror"), the Grantee or Permitted Transferee shall:
(i) obtain in writing an irrevocable and unconditional bona fide offer (the
"Offer") for the purchase thereof from the Offeror; and (ii) give written notice
(the "Offer Notice") to the Company setting forth the Grantee's or Permitted
Transferee's desire to transfer such shares, which Offer Notice shall be
accompanied by a photocopy of the Offer and shall set forth the name and address
of the Offeror and the price and terms of the Offer. In the event that the Offer
constitutes a bona fide gift or involuntary transfer, the proposed transfer
price shall be deemed to be the Fair Market Value of such shares as determined
by the Committee in good faith. Upon receipt of the Offer Notice, the Company
shall have an assignable option to purchase any or all of such Issued Shares
(the "Offered Shares") specified in the Offer Notice, such option to be
exercisable by giving, within thirty (30) days after receipt of the Offer
Notice, a written counter notice to the Grantee or Permitted Transferee. If the
Company or its assigns elects to purchase any or all of such Offered Shares, it
shall be obligated to purchase, and the Grantee or Permitted Transferee shall be
obligated to sell to the Company or its assigns, such Offered Shares at the
price and terms indicated in the Offer within thirty (30) days from the date of
delivery by the Company of such counter notice (unless a longer period is
permitted by the Grantee or Permitted Transferee and the Offeror); provided,
however, that in the event that the Offer Notice provides for the payment for
the Offered Shares other than in cash, the Company shall have the option of
paying for the Offered Shares by the present value cash equivalent of the
consideration described in the Offer Notice as reasonably determined by the
Company. For purposes of the foregoing, cancellation of any indebtedness of the
Grantee or Permitted Transferee to the Company (or its Parent or any Subsidiary)
shall be treated as payment to the Grantee or Permitted Transferee in cash to
the extent the unpaid principal balance and any accrued interest is canceled.
The Company's exercise or failure to exercise its right of first refusal
pursuant to this Section 7(a) with respect to any proposed transfer described in
an Offer Notice shall not affect the Company's right to exercise its right of
first refusal with respect to any other proposed transfer thereafter.

          (b) Sale of Offered Shares to Offeror. The Grantee or Permitted
Transferee may, for sixty (60) days after the expiration of such thirty (30)-day
option period (or, if applicable, such longer period) as set forth in Section
7(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of
such Offered Shares not purchased or agreed to be purchased by the

                                       -8-

<PAGE>

Company or its assigns. All Offerors shall be required as a condition of
purchasing such Offered Shares to agree in writing (in a form satisfactory to
the Company) that the Offeror shall purchase and hold such Offered Shares
subject to the Company's right of first refusal pursuant to this Section 7 with
respect to any subsequent proposed transfer. Further, the Company shall have the
right to demand further assurances from the Grantee or Permitted Transferee and
the Offeror that the transfer of the Offered Shares was actually carried out in
accordance with the terms and conditions of the Offer Notice. No transfer of the
Offered Shares shall be effected on the books of the Company until the Company
has received such assurances, if so demanded. Any proposed transfer on terms and
conditions different from those described above in an Offer Notice shall be null
and void. If any or all of such Offered Shares are not sold pursuant to the
Offer Notice within the time permitted above, the unsold Offered Shares shall
remain subject to the terms of this Section 7.

          (c) Failure to Deliver Option Shares. If the Grantee or Permitted
Transferee fails or refuses to deliver on a timely basis duly endorsed
certificates representing the Offered Shares to be sold to the Company or its
assigns pursuant to this Section 7, the Company shall have the right to deposit
the purchase price for such Offered Shares in a special account with any bank or
trust company, giving notice of such deposit to the Grantee or Permitted
Transferee, whereupon such Offered Shares shall be deemed to have been purchased
by the Company. All such monies shall be held by the bank or trust company for
the benefit of the Grantee or Permitted Transferee. All monies deposited with
the bank or trust company but remaining unclaimed for two (2) years after the
date of deposit shall be repaid by the bank or trust company to the Company on
demand, and the Grantee or Permitted Transferee shall thereafter look only to
the Company for payment. The Company may place a legend on any certificate for
Issued Shares delivered to the Grantee and Permitted Transferees reflecting the
restrictions on transfer provided in this Section 7.

          (d) Expiration of Company's Right of First Refusal. The first refusal
rights of the Company set forth above shall remain in effect until the closing
of an Initial Public Offering or upon the consummation of any Acquisition as a
result of which shares of Common Stock are registered under Section 12 of the
Exchange Act and publicly traded on NASDAQ/NMS or any national security
exchange.

     8. Compliance with Legal Requirements.

          This Option may not be exercised if the issuance of shares of Common
Stock upon exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the requirements
of any stock exchange or market system upon which the Common Stock may then be
listed. In addition, this Option may not be exercised unless: (a) a registration
statement under the Act shall at the time of exercise of this Option be in
effect with respect to the shares issuable upon exercise, or (b) in the opinion
of legal counsel to the Company, the shares issuable upon exercise of this
Option may be issued in accordance with the terms of an applicable exemption
from the registration requirements of the Act. The inability of the Company to
obtain from any regulatory body having jurisdiction the

                                       -9-

<PAGE>

authority, if any, deemed by the Company's legal counsel to be necessary to the
lawful issuance and sale of any shares hereunder shall relieve the Company of
any liability in respect of the failure to issue or sell such shares as to which
such requisite authority shall not have been obtained. As a condition to the
exercise of this Option, the Company may require the Grantee to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance with
any applicable law or regulation and to make any representation or warranty with
respect thereto as may be requested by the Company.

     9. Lock-up Provision.

          The Grantee agrees, if requested by the Company and any underwriter
engaged by the Company, not to sell, offer to sell, contract to sell, pledge,
hypothecate, grant any option to purchase or make any short sale of, or
otherwise dispose of any securities (including the right to acquire any Common
Stock) of the Company (including, without limitation, pursuant to Rule 144 under
the Act) held by him or her for such period following the effective date of any
registration statement of the Company filed under the Act as the Company or such
underwriter shall specify reasonably and in good faith, not to exceed one
hundred eighty (180) days in the case of the Company's Initial Public Offering
or ninety (90) days in the case of any other public offering.

     10. Miscellaneous Provisions.

          (a) Administration. All questions of interpretation concerning this
Option Agreement shall be determined by the Committee. All determinations by the
Committee shall be final and binding upon all persons having an interest in this
Option.

          (b) Employment Rights. The grant of this Option does not confer upon
the Grantee any right to continued employment or service with the Company or its
Parent or any Subsidiary or interfere in any way with the right of the Company
or its Parent or any Subsidiary to terminate the Grantee's employment or service
at any time.

          (c) Equitable Relief. The parties hereto agree and declare that legal
remedies may be inadequate to enforce the provisions of this Option Agreement
and that equitable relief, including specific performance and injunctive relief,
may be used to enforce the provisions of this Option Agreement.

          (d) Change and Modifications. The Committee may terminate or amend the
Plan or this Option at any time; provided that, except as provided in Section
11(b) of the Plan in connection with an Acquisition, no such termination or
amendment may adversely affect this Option without the consent of the Grantee
unless such termination or amendment is necessary to comply with any applicable
law, rule or regulation or, to the extent that this Option is designated as an
Incentive Stock Option, is required to enable this Option to continue to qualify
as an Incentive Stock Option.

                                      -10-

<PAGE>

          (e) Governing Law. This Option Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
conflict of laws principles thereof.

          (f) Headings. The headings are intended only for convenience in
finding the subject matter and do not constitute part of the text of this Option
Agreement and shall not be considered in the interpretation of this Option
Agreement.

          (g) Integrated Agreement. This Option Agreement, the Notice and the
Plan constitute the entire understanding and agreement between the Grantee and
the Company with respect to the subject matter contained herein and supersedes
any prior agreements, understandings, restrictions, representations, or
warranties among the Grantee and the Company with respect to such subject matter
except as provided for herein. To the extent contemplated herein, the provisions
of this Option Agreement shall survive any exercise of this Option and shall
remain in full force and effect.

          (h) Saving Clause. If any provision(s) of this Option Agreement shall
be determined to be illegal or unenforceable, such determination shall in no
manner affect the legality or enforceability of any other provision hereof.

          (i) Notices. All notices, requests, consents and other communications
shall be in writing and be deemed given when delivered personally, by telex or
facsimile transmission, or two (2) days after deposit in the mail if mailed by
first class registered or certified mail, postage prepaid, or one (1) business
day after deposit with a nationally recognized overnight carrier. Notices to the
Company or the Grantee shall be addressed to such address or addresses as may
have been furnished by such party in writing to the other.

          (j) Benefit and Binding Effect. This Option Agreement shall be binding
upon and shall inure to the benefit of the parties hereto, their respective
successors, permitted assigns, and legal representatives. The Company has the
right to assign this Option Agreement, and such assignee shall become entitled
to all the rights of the Company hereunder to the extent of such assignment.

                                      -11-

<PAGE>

                                   APPENDIX A
                          STOCK OPTION EXERCISE NOTICE

Virtusa Corporation
2000 West Park Drive
Westborough, MA 01581
Attention: Chief Financial Officer                          Date: ______________

     Pursuant to the terms of the Notice of Grant of Stock Option dated
________________________________ ____________, ____________ and the Stock Option
Agreement granted pursuant to the Virtusa Corporation 2000 Stock Option Plan and
entered into by Virtusa Corporation and ___________________________________ on
such date, I hereby [Circle One] partially/fully exercise such Option by
including herein payment in the amount of $__________________ representing the
purchase price for _____________________ shares of common stock, all of which
have vested in accordance with the Notice of Grant of Stock Option. I hereby
authorize payroll withholding or otherwise will make adequate provision for
federal, state, foreign and local tax withholding obligations of the Company, if
any, that arise in connection with the Option.

     I acknowledge that the shares are being acquired in accordance with and
subject to the terms, provisions and conditions of the Plan, the Notice of Grant
of Stock Option, and the Option Agreement, copies of which I have received and
carefully read and understand, including the Company's right of first refusal
set forth therein, to all of which I hereby expressly assent.

     I hereby represent that I am purchasing the shares of common stock for my
own account and not with a view to any sale or distribution thereof. I
understand that Rule 144, promulgated under the U.S. Securities Act of 1933, as
amended (the U.S. Securities Act), which permits limited public resale of
securities acquired in a nonpublic offering, is not currently available with
respect to such shares and, in any event, is available only if certain
conditions are satisfied. I acknowledge that any sale of such shares that might
be made in reliance on Rule 144 may only be made in limited amounts in
accordance with the terms and conditions of such rule and that a copy of Rule
144 will be delivered to me upon my request.

     In addition, without limitation of the foregoing, I hereby certify and
agree as follows:

          A.   I am not a resident in the United States of America, including
               its territories and possessions, any State in the United States
               or the District of Columbia,

          B.   I shall not acquire the shares of common stock for the account or
               benefit of any "U.S. Person" (as defined in Exhibit A hereto),

          C.   I shall resell Shares only in accordance with the provisions of
               Regulation S (Rule 901 through Rule 905, and Preliminary Notes),
               pursuant to registration under the U.S. Securities Act, or
               pursuant to an available exemption from registration,

<PAGE>

          D.   I shall not engage in hedging transactions with regard to the
               common stock unless in compliance with the U.S. Securities Act,
               and

                                        Sincerely yours,

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------
                                        Address:
                                                 -------------------------------

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

<PAGE>

                                    Exhibit A

                           Definition of "U.S. Person"

1.   "U.S. person" means:

     i.   Any natural person resident in the United States;

     ii.  Any partnership or corporation organized or incorporated under the
          laws of the United States;

     iii. Any estate of which any executor or administrator is a U.S. person;

     iv.  Any trust of which any trustee is a U.S. person;

     v.   Any agency or branch of a foreign entity located in the United States;

     vi.  Any non-discretionary account or similar account (other than an estate
          or trust) held by a dealer or other fiduciary for the benefit or
          account of a U.S. person;

     vii. Any discretionary account or similar account (other than an estate or
          trust) held by a dealer or other fiduciary organized, incorporated, or
          (if an individual) resident in the United States; and

     viii. Any partnership or corporation if:

          A.   Organized or incorporated under the laws of any foreign
               jurisdiction; and

          B.   Formed by a U.S. person principally for the purpose of investing
               in securities not registered under the Act, unless it is
               organized or incorporated, and owned, by accredited investors (as
               defined in Rule 501 (a)) who are not natural persons, estates or
               trusts.

2.   The following are not "U.S. persons":

     i.   Any discretionary account or similar account (other than an estate or
          trust) held for the benefit or account of a non-U.S. person by a
          dealer

<PAGE>

          or other professional fiduciary organized, incorporated, or (if an
          individual) resident in the United States;

     ii.  Any estate of which any professional fiduciary acting as executor or
          administrator is a U.S. person if:

          A.   An executor or administrator of the estate who is not a U.S.
               person has sole or shared investment discretion with respect to
               the assets of the estate; and

          B.   The estate is governed by foreign law;

     iii. Any trust of which any professional fiduciary acting as trustee is a
          U.S. person, if a trustee who is not a U.S. person has sole or shared
          investment discretion with respect to the trust assets, and no
          beneficiary of the trust (and no settlor if the trust is revocable) is
          a U.S. person;

     iv.  An employee benefit plan established and administered in accordance
          with the law of a country other than the United States and customary
          practices and documentation of such country;

     v.   Any agency or branch of a U.S. person located outside the United
          States if:

          A.   The agency or branch operates for valid business reasons; and

          B.   The agency or branch is engaged in the business of insurance or
               banking and is subject to substantive insurance or banking
               regulation, respectively, in the jurisdiction where located; and

     vi.  The International Monetary Fund, the International Bank for
          Reconstruction and Development, the Inter-American Development Bank,
          the Asian Development Bank, the African Development Bank, the United
          Nations, and their agencies, affiliates and pension plans, and any
          other similar international organizations, their agencies, affiliates
          and pension plans.
<PAGE>
          ADDENDUM B TO THE VIRTUSA CORPORATION 2000 STOCK OPTION PLAN
             RULES APPLYING TO STOCK OPTIONS GRANTED TO UK EMPLOYEES

1.    ADOPTION OF THE UK ADDENDUM TO THE PLAN

1.1   The Committee, as that term is defined in the Virtusa Corporation 2000
      Stock Option Plan (the "Plan"), has adopted the provisions of this
      Addendum B (the "UK Addendum" in order to comply with applicable laws
      with respect to certain options granted to optionees resident in the UK.

1.2   The provisions of this UK Addendum are not intended to qualify as an
      approved share option plan under Schedule 4 to the Income Tax (Earnings
      and Pensions) Act 2003 ("ITEPA").

1.3   If there is any conflict between the provisions contained in the UK
      Addendum and the provisions of the Plan, then the provisions of the UK
      Addendum will take precedence in respect of options granted under the UK
      Addendum.

1.4   References in these Rules to Sections are to sections of the Plan and
      capitalized terms not defined herein shall have the meaning set forth in
      the Plan.

1.5   No option shall be granted under the UK Plan after termination of the
      same.

2.    PURPOSE - SECTION 1

2.1   The purpose of the UK Addendum to the Plan is to grant Nonqualified Stock
      Options to employees who are residents of the UK. No UK Option shall be
      granted to any person who is not an UK Employee on the date of grant.

3.    DEFINITIONS

3.1   Capitalized terms used herein but not defined herein shall have the
      meanings set forth in the Plan. The following additional definitions shall
      apply for the purposes of options granted under the UK Addendum and Plan:

      "Control"           shall have the meaning ascribed by Section 840 of the
                          Income and Corporation Taxes Act 1988.

      "UK Employee"       shall mean any bona fide employee of the Company or
                          any Subsidiary (as hereinafter defined) who is
                          resident in the United Kingdom for tax purposes

      "Inland Revenue"    shall mean the Board of Inland Revenue of the
                          United Kingdom.

      "Rules"             shall mean the rules of the UK Plan.

      "Subsidiary"        shall mean any company of which the Company has
                          Control.

                                       1
<PAGE>

      "UK Option"         Shall mean an option granted under Plan, as modified
                          by this Addendum B.

      "UK Stock Option    Shall mean the form of agreement issued upon the
      Agreement"          grant of an UK Option.

4.    GRANTS - SECTION 5

4.1   Any reference to Consultants and advisors of the Company in section 5(b)
      shall not apply to grants of UK Options.

4.2   No "Incentive Stock Options" shall be granted under the Plan as modified
      by the UK Addendum.

5.    TERMS AND CONDITIONS OF OPTIONS - SECTION 6

5.1   Section 6(c)(B) is hereby deleted.

5.2   Section 6(e) of the Plan shall not apply. A UK Option shall be personal to
      the UK Employee to whom it is granted and shall not be transferable or
      assignable during the Participant's lifetime. In the event of the death of
      the Participant, UK Options may be exercised only by the Participant's
      executor or by the administrator of the Participant's estate in accordance
      with the terms of the relevant UK Stock Option Agreement. An UK Option
      shall not be charged, pledged or otherwise encumbered and any purported
      assignment, charge, disposal or dealing with the rights and interest of
      the Participant otherwise than in accordance with the Plan, the UK
      Addendum or the relevant UK Stock Option Agreement shall render the UK
      Option void.

6.    RESTRICTED STOCK AWARDS - SECTION 7

      Section 7 of the Plan shall not apply to UK Employees.

7.    UNRESTRICTED STOCK AWARDS - SECTION 8

      Section 8 of the Plan shall not apply to UK Employees.

8.    TAX WITHHOLDING - SECTION 9

8.1   Sections 9(a) and 9(b) of the Plan shall not apply.

8.2   If a liability arises in connection with the exercise of a UK Option under
      which the Company or any Subsidiary is obliged to account for income tax
      and/or primary social security contributions (otherwise known as
      employee's National Insurance contributions) and/or secondary social
      security contributions (otherwise known as employer's National Insurance
      contributions) (together an "Employee Tax Liability"), then unless:

      (a)   the relevant Participant has indicated in the form of exercise that
            he will make a payment to his or her employer or the Company of an
            amount equal to the Employee Tax Liability; and

                                       2
<PAGE>

      (b)   the Participant does, within seven days of being notified by his or
            her employer or the Company of the amount of the Employee Tax
            Liability, make such payment to his employer or the Company;

      his or her employer may withhold from the salary of the Participant an
      amount equal to the Employee Tax Liability.

8.3   It is a condition of the exercise of an UK Option that the Participant
      agrees, if so requested by the Company, to enter into an election with his
      employer in respect of the liability for paying any secondary social
      security contributions (otherwise known as employer's National Insurance
      contributions) payable in connection with the exercise of a UK Option,
      provided that any such election has received prior approval from the
      Inland Revenue.

9.    GENERAL PROVISIONS - SECTION 13

      The following additional provisions shall apply in respect of UK Options.
      Notwithstanding any other provision of the Plan or UK Addendum:

      9.1   the Plan and the UK Addendum shall not form any part of any contract
            of employment between the Company or any Subsidiary and any
            employees of any of those companies, and they shall not confer on
            any such employees any legal or equitable rights (other than those
            constituting the UK Options themselves) against the Company or any
            Subsidiary, directly or indirectly, or give rise to any cause of
            action in law or in equity against the Company or any Subsidiary;

      9.2   the benefits to UK Employees under the Plan and the UK Addendum
            shall not form any part of their wages or remuneration or count as
            pay or remuneration for pension fund or other purposes; and

      9.3   in no circumstances shall any UK Employee on ceasing to hold the
            office or employment by virtue of which he is or may be eligible to
            participate in the the Plan, as modified by the UK Addendum, be
            entitled to any compensation for any loss of any right or benefit or
            prospective right or benefit under the Plan, as modified by the UK
            Addendum which he might otherwise have enjoyed whether such
            compensation is claimed by way of damages for wrongful dismissal or
            other breach of contract or by way of compensation for loss of
            office or otherwise.

                                       3

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